FEMA decision on flooding insurance ratings expected this week

25% discount for property owners at stake

The city of Cape Coral received correspondence from FEMA that the agency is still working on its final decision regarding the Community Rating System retrograde.

Last week, City Manager Mike Ilczyszyn said he received correspondence from FEMA Region IV Administrator Robert Samaan that he expected to have a decision on the retrograde of the city’s rating by this week in an email to city staff.

"I know we had previously indicated that we would have a determination on or around the 10th of July. Since it is the 10th today, I wanted to update you that we are still working through that final decision and we will have an answer to you no later than this time next week," Samaan wrote in an email. "I also wanted to reiterate that you will hear from me first before anything goes out."

In March, FEMA announced that Cape Coral had been retrograded in the Community Rating System class from a 5 to a 10 - the Federal Emergency Management Agency’s lowest rating, therefore eliminating the 25% discount city property owners currently receive for the National Flood Insurance Program.

FEMA also downgraded the ratings for unincorporated Lee County, Fort Myers Beach and Bonita Springs, to become effective as of Oct. 1 of this year.

If FEMA holds to the retrograded scores after appeals and additional information as to how the local governmental bodies handled permitting in the wake if Hurricane Ian recovery, property owners would receive not discount at all in the federal flood insurance program, with flood insurance required by virtually all lenders.

The impact on property owners in unincorporated Lee County alone has been estimated at $14-$17 million.

The city began providing FEMA with the documentation needed for code enforcement cases - Hurricane Ian rebuilds - to meet the original timeline of May 9.

FEMA did not believe the city was compliant with its regulations regarding rebuilding because federal staffers contended that the city sat back and waited for homeowners to submit permits and was not active throughout the community, Ilczyszyn said in a May meeting.

The city opted for the second allowable FEMA option - notify homeowners of the requirements to obtain permits and act when they apply.

“We hopefully will hear something Wednesday,” Councilmember Tom Hayden said. “Staff worked really hard to comply with FEMA’s request on over 200 properties. We feel like we’ve answered all their questions and we’re optimistic there will be a favorable result.”