Cape Coral notified FEMA will not retrograde city’s Community Rating System Classification
Means property owners will continue to receive 25% discount on flood insurance premiums
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Cape Coral property owners worried about FEMA’s decision to downgrade the city’s community rating and effectively eliminate the related 25% discount on federal flood insurance premiums can breathe a sigh of relief -- at least for now.
FEMA confirmed that Cape Coral’s current Community Rating System classification of 5 will be maintained and provided details related to its decision in a letter the city received today, which states, in part:
“Our team has completed its review of the city’s compliance with the minimum floodplain management standards and everything that has been done to correct any deficiencies and violations. We acknowledge the work invested by you and your team has resulted in some improvements to meet minimum floodplain management standards, and I appreciate your leadership in this area. However, as the City of Cape Coral continues to recover from Hurricane Ian, FEMA finds that outstanding compliance issues remain. FEMA will not retrograde the City of Cape Coral’s class rating at this time.”
The city said it will continue to work with FEMA to resolve any remaining issues.
“This decision ensures that residents will continue to benefit from discounts on National Flood Insurance Program (NFIP) premiums, saving them up to 25%,” city officials said in a prepared statement. “City staff remains committed to working with FEMA to meet and exceed NFIP regulations and correct or remedy any additional outstanding compliance issues.”
Municipal officials called FEMA’s decision “positive news.”
“We are delighted that FEMA has recognized the diligence of our city staff, and maintaining the CRS rating of 5 underscores Cape Coral’s commitment to resilience and safety,” said City Manager Michael Ilczyszyn. “Our staff’s tireless efforts, particularly in the aftermath of Hurricane Ian, have been crucial in safeguarding our community and preserving these vital insurance discounts for our residents. The City will continue to work closely with FEMA to address any remaining concerns and ensure transparency in our floodplain management practices.”
Mayor John Gunter called FEMA’s decision an important step in the process.
“We are pleased with FEMA’s decision as it aligns with the city’s goal of helping keep policy premiums as low as possible,” Gunter said. “This ensures our residents and their homes are properly protected. Their safety and well-being remain our top priority, and this decision is a significant step to achieving that.”
“City staff worked diligently to provide proof of NFIP compliance in an effort to avoid a potential downgrade to a CRS classification of 10, which would have removed the current NFIP premium discounts for properties located in special flood hazard areas,” the release states.
“We are grateful that FEMA has acknowledged our ongoing efforts and commitment to floodplain management regulations,” Gunter added. “In the end, FEMA has proven they may not be a villain.”
Gunter will hold a press conference at 3 p.m. and provide a statement on FEMA’s decision
The update will be recorded and posted to CapeCoral.gov.
FEMA also notified Fort Myers Beach and Lee County that it will not retrograde their ratings at this time, meaning property owners there also will continue to receive the 25% discount.
“FEMA determined unincorporated Lee County residents with policies issued under the NFIP will maintain the discount rate of 25% while the county and FEMA continue to work on a plan to address some continuing issues,” Lee County officials said in a prepared statement. “That plan will be due Nov. 18.”
"We believe this is a positive step toward keeping the CRS rating for our unincorporated Lee County residents while we continue to remediate outstanding issues with FEMA," Lee County Manager Dave Harner said. "Essentially the notification today provides the county an extension to further clarify our processes and preserve the CRS rating in the future."
Unincorporated Lee County joined the CRS program in 1991, and most recently - in February 2023, just six months after Hurricane Ian made landfall - FEMA determined that Lee County would retain its Class 5 CRS. In March 2024, FEMA initially announced plans to retrograde that class and remove the discount, prompting months of work on the part of FEMA and Lee County to clarify post-Ian activities and provide documentation requested by FEMA. That documentation was submitted June 3.
“The Lee Board of County Commissioners remains committed to retaining the CRS rating of 5 to maintain the discount available to unincorporated Lee County residents with NFIP policies,” officials said.
Beach officials also said the town and FEMA will continue to work on a plan to address some continuing issues with that plan, also due Nov. 18.
"We feel as though we responded to FEMA's request for information and felt that the information was accurate while meeting the requirements that were established prior to Hurricane Ian; however, we do look forward to working with FEMA to address any outstanding issues as they continue to explore the future of the Community Rating System and focus on ways that they can improve," Town Manager Andy Hyatt said in a prepared statement.