For structures in the SFHA at the time of project completion, regardless of HMA funding type, and for all structures receiving assistance through FMA, flood insurance must be maintained after the completion of the mitigation project for the life of the structure (1) to an amount at least equal to the project cost or (2) to the maximum limit of coverage made available with respect to the particular property, whichever is less.[124] The maximum limit of coverage made available is defined as the replacement cost value of the structure up to $250,000 for residential and $500,000 for non-residential. Insurance coverage on the property must be maintained during the life of the property regardless of the transfer of ownership of such property. Insurance must also be maintained regardless of whether the structure is subsequently removed from the SFHA.
The subrecipient (or property owner) must legally record, with the county or appropriate jurisdiction’s land records, a notice that includes the name of the current property owner (including book/page reference to record of current title, if readily available), a legal description of the property and the following notice of flood insurance requirements:
This property has received federal Hazard Mitigation Assistance. Federal law, regulations, and policy require that flood insurance coverage on this structure must be maintained during the life of the property regardless of transfer of ownership of such property [for HMGP, HMGP Post Fire and BRIC, refer to 42 U.S.C. §4012a. For FMA, see 44 CFR 77.6(a)(2)]. Failure to maintain flood insurance coverage will result in the property owner being ineligible for future Hazard Mitigation Assistance awards. The property owner is also required to maintain this property in accordance with the floodplain management criteria of 44 CFR § 60.3 and any city/county ordinance.
Applicants/subapplicants must ensure that these requirements are met by requesting that the participating property owner(s) sign an Acknowledgement of Conditions for Properties Using FEMA Hazard Mitigation Assistance form and providing the form to FEMA prior to award or final approval. This form is available on the FEMA website or can be provided by the appropriate FEMA regional office. Properties that do not meet these requirements will not be eligible to receive assistance under the HMA programs. Additionally, failure to maintain flood insurance coverage will result in the property owner not being eligible for future HMA awards.
If an approved HMA project affects the accuracy of an applicable Flood Insurance Rate Map or requires a map amendment to meet a locally adopted floodplain management ordinance, the subrecipient is responsible for ensuring the appropriate map amendments or revisions are made. Costs associated with these map amendments are to be identified in the budget section of a subaward application and may be eligible costs under the HMA programs.