Problem: Thousands of homes in the Florida Keys have been or will be destroyed as a result of FEMA policies that were not enforced in Monroe County for decades.
Solution: Our local government and State representatives must work with FEMA to redraft procedures that are more conducive to Keys' homeowners and will not result in greater hardships in an already strained economic environment.
Background
In 1974, Monroe County joined the National Flood Insurance Program (NFIP). Communities who participate in the NFIP receive federally supported flood insurance coverage which generally is not provided by private companies. As a result, these communities are required to adopt floodplain ordinances that meets the minimum standards of the NFIP in order to be considered compliant.
Homes are classified depending on when they were built in relation to the published Fair Insurance Rate Maps ("FIRM"). Homes built prior to December 31, 1974 are considered Pre-FIRM and homes built after this date are considered Post-FIRM.
One of the stipulations in these regulations is that Post-FIRM homes, can only have limited storage below the Base Flood Elevation (BFE) and no habitable living space.
The Problem
For decades Monroe County ignored their own floodplain ordinance and issued permits for construction below the BFE. These structures are also known as a "Downstairs Enclosures." A FEMA representative further explained that building officials in each of the individual building departments would look at the rules and have a different interpretation of what was being said. The result of this negligence was thousands of non-conforming structures below the BFE. Additionally, Monroe County received millions of dollars worth of additional tax revenue from issuing permits for these structures.
The Remedy That Went Wrong
In 1995, Monroe County received a notice that they must take enforcement
actions against all the existing downstairs enclosures. Suggestions from
FEMA included "Conduct Neighborhood Enforcement Sweeps" and
"Hire an additional Special Master to adjudicate enforcement actions."
In following years, a task force issued recommendations to FEMA. One recommendation
included amnesty for these structures based on the following observation:
"This is recommended based upon the understanding the citizenry
was not generally aware of FEMA requirements and the County had not yet
developed an effective permitting and inspection program. Many of these
houses with below BFE enclosures have now changed ownership many times,
with the various private and public sector entities involved in financing,
insuring, enforcement, etc. not identifying the problem. Many present
owners are probably uninformed recipients of the problem structures."
FEMA rejected this recommendation and proceeded forward to accept punitive enforcement actions against innocent homeowners. These included:
1) Mandating inspections prior to receiving flood insurance
which is required if you have a mortgage.
2) Mandating inspections prior to receiving home improvement
permits.
3) Mandating inspections prior to house sales.
These actions were a part of a FEMA Pilot Program unique to Monroe
County. To date Monroe County remains the only 1 out of 20,000 other NFIP
communities despite the fact that we constitute less than 1/3 of 1% of
all FEMA flood insurance policies nation-wide.
The REAL Results
Law-abiding, hard-working, tax-paying citizens were and are being forced to rip out parts of their home. Depending on the scope of their downstairs enclosure, this has cost them anywhere between $2,000 to $25,000. Many of them did not have the funds to afford to stay in the Keys and became so disheartened by this compassionless process, that they picked up and moved from their homes. Some individuals ultimately were forced to foreclose on their homes as well. With a nonconforming downstairs enclosure, people could not obtain flood insurance through this new process. Without flood insurance, they could not get a mortgage on their homes.
Then, of course, there are the people who are the 'unintended consequences'
of these new punitive enforcement measures. This segment of individuals
constitutes contractors and supply houses that provide home improvements.
Homeowners realized early on, that by trying to pull a permit for a home
improvement - they would inevitably be forced to rip out a part of their
home if they continued. The consequences of this are three-fold: people
forego home improvements, people withdraw their permit request after an
inspection is demanded or people hire unlicensed contractors. All three
aspects put a strain on our local workforce and supply houses. Many have
claimed that they have lost several thousands of dollars in business as
a result of this program. Moreover, realtors are also a part of this group.
In what is already a strenuous real estate market in Monroe County in
which homes are selling at roughly 33% below asking price, this program
has created an additional barrier to homeowners who must advertise with
disclosures that potential homeowners will inherit illegal structures
and the costs associated with them. Ripping apart homes ultimately devalues
the properties and depending on the size and nature, this ranges from
several thousands of dollars to hundreds of thousands of dollars in lost
value. This than trickles down to people who don't have downstairs enclosures
but live in a neighborhood in which they were prevalent. These individuals'
properties are ultimately decreasing as well.
The results of this program to date have had negative impacts on everyone.
While Monroe County recognized early on that it had made mistakes and pleaded with FEMA to not take it out on the residents, FEMA ignored these requests which is how we ended up where we are today.
In a letter dated July 29, 1999, the Board of County Commissioners unanimously passed a resolution calling for amnesty of all these homes directed at Senator Bob Graham. Mayor Wilhelmina Harvey noted:
"Avoiding destruction of our residents" homes is the primary purpose of FEMA regulations. Yet, retroactive enforcement of the "no downstairs enclosure" rule will cause the destruction of more homes than any hurricane to strike the Keys. Surely there is a way to avoid destroying homes in the name of saving them!"
Our Beliefs
We at Citizens Not Serfs, believe that it's time for politicians and representatives
from FEMA, to reevaluate what has occurred in Monroe County based on the
more accurate data and findings related to the PILOT.
FEMA has successfully created a "zero-sum game" in Monroe County by telling people that they will suspend flood insurance if the County does not comply with their demands. They have used divisive tactics and implemented "divide and conquer." This is unfortunate and ultimately does not make our community a better place for its residents.
We have an opportunity to bring people back together and discuss possible solutions and create a win/win situation for all parties involved as all parties were involved in creating the problem. FEMA failed to provide oversight for the NFIP which has resulted in retroactive consequences. Monroe County failed to enforce their floodplain management ordinance to their residents. And finally, the residents who did not exercise due diligence while constructing these enclosures. Three parties caused the problem and all three, not just one, need to be apart of a better solution.
With thousands of nonconforming structures still in existence, we have
the opportunity to right some of the wrongs. In an already strenuous economy,
we cannot afford to lose more Keys' loving residents to a policy that
can ultimately be changed with the help of visionary and solution-oriented
leaders who are up to the task.