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HomeMy WebLinkAboutOwning Property in SFHA_032321Owning property in a Special Flood Hazard Area If you own a building with a federally backed loan in the Special Flood Hazard Area, contact your lender as early as possible to start the discussion about ϐlood insurance. For federally backed loans a lender must require ϐlood insurance as a matter of law when a building is in a Special Flood Hazard Area. A FEMA Letter of Map Amendment may remove a building from the Special Flood Hazard Area if technically information proves that the land surrounding a building is actually above the ϐlood elevation or outside of the ϐloodplain. New Flood Insurance Rate Maps trigger lenders to review their federally backed loans to determine if a building they’ve ϐinanced is in the Special Flood Hazard Area and thus requires ϐlood insurance under federal law. Property owners that were already located in the Special Flood Hazard Area on the previous version of the Flood Insurance Rate Maps will see no change. Buildings that are newly mapped into the Special Flood Hazard Area for the ϐirst time are eligible for discounted insurance premiums so long as ϐlood insurance is purchased within 11 months of the April 21, 2021 effective date of the new Flood Insurance Rate Maps. INSURANCE REQUIREMENT City of Bozeman Floodplain Regulations apply to Special Flood Hazard Areas. City Floodplain Regulations must satisfy minimum federal and state ϐloodplain regulations. These regulations require any new construction, work activity, or improvement proposed in the Special Flood Hazard Area to obtain a City ϐloodplain permit prior to construction. Construction of new buildings is prohibited within the Regulatory Floodway of the Special Flood Hazard Area. Improvements and reconstruction of existing buildings in the Regulatory Floodway may occur. Subject to City zoning regulations, new building construction may be approved within the Special Flood Hazard Area outside of the Regulatory Floodway if the building is elevated 2 feet above the Base Flood Elevation. This elevating standard also applies to existing buildings in the Special Flood Hazard Area undergoing substantial improvement or footprint expansion. Please contact to the City Floodplain Administrator prior to undertaking any project in the Special Flood Hazard Area. Buildings in the Special Flood Hazard Area with federally backed loans are required by law to carry flood insurance for the life of the loan. A City floodplain permit must be obtained prior to beginning any construction within the Special Flood Hazard Area. NEW FEMA FLOOD INSURANCE RATE MAPS Promoting flood risk awareness City Floodplain Administrator bheaston@bozeman.net 406.582.2280 New Flood Insurance Rate Maps for Bozeman Creek and its tributary streams have been recently completed by the Federal Emergency Management Agency (FEMA). The new maps, dated April 21, 2021, show ϐlood hazard areas. The Special Flood Hazard Area represents the 1% annual chance ϐlood (aka 100‐ year ϐloodplain), denoted as ‘Zone AE’ on a Flood Insurance Rate Map. DEVELOPMENT REGULATIONS Owning property in a Special Flood Hazard Area ‐ Zone AE City Floodplain Administrator bheaston@bozeman.net 406.582.2280