Title
Resolution to Appropriate $64,280 received from the National Flood Insurance Program’s Grants Increased Cost of Compliance Insurance Program to the City of Hampton Grant Fund to Reimburse the City and Applicable Homeowners for Certain Eligible Expenses Related to the City’s Participation in the Federal Emergency Management Agency’s Severe Repetitive Loss Program
Purpose
PURPOSE/BACKGROUND:
The City of Hampton (the “City”) is a participant in the Federal Emergency Management Agency’s (“FEMA”) Severe Repetitive Loss Grant Program (the “SRL Grant Program”) in an effort to assist residents living in flood zones with funding and resources for the purposes of raising then finished first floor areas above the flood elevation (“Mitigation Elevation”). Pursuant to the SRL Grant Program, 90% of the Mitigation Elevation costs of each qualifying resident are paid by FEMA, with the remaining 10% of the Mitigation Elevation costs a direct responsibility of the qualifying resident (“Resident’s Share”), which has been paid to and is held on deposit by the City. In addition, some homeowner’s have incurred additional costs related to the Mitigation Elevation that were not paid by FEMA. Three residents participating in the SRL Grant Program have applied for Grants Increased Cost of Compliance funds (“ICC Funds”) through the National Flood Insurance Program (“NFIP”) which shall be used to pay for the Resident’s Share and other qualifying unanticipated Mitigation Elevation costs incurred. The ICC Funds will be paid to the City. Once received, the City will retain funds equal to the Resident’s Share and will disburse to applicable homeowners the amount paid by the homeowner currently held on deposit, plus any additional funds received on behalf of the homeowner for additional Mitigation Elevation costs incurred and reimbursed by ICC Funds.
Discussion:
See Purpose/Background above.
Impact:
See Purpose/Background above.
Recommendation:
Rec
Approve Resolution.
Body
WHEREAS, the City of Hampton (the “City”) is a participant in the Federal Emergency Management Agency’s (“FEMA”) Severe Repetitive Loss Grant Program (the “SRL Grant Program”) in an effort to assist residents living in flood zones with funding and resources for the purposes of raising then finished first floor areas above the flood elevation (“Mitigation Elevation”);
WHEREAS, pursuant to the SRL Grant Program, 90% of the Mitigation Elevation costs of each qualifying resident are paid by FEMA;
WHEREAS, the remaining 10% of the Mitigation Elevation costs are the direct responsibility of the qualifying resident (“Resident’s Share”);
WHEREAS, the qualifying residents deposited the Resident’s Share with the City and said funds were deposited in the City of Hampton Grant fund;
WHEREAS, Grants Increased Cost of Compliance funds (“ICC Funds”) are available through the National Flood Insurance Program (“NFIP”) to eligible policyholders included in the SRL Grant Program which can be used to pay for the Resident’s Share and other qualifying unanticipated Mitigation Elevation costs incurred by said policyholders;
WHEREAS, ICC Funds may be reimbursed to qualifying residents only after the Mitigation Elevation is completed and appropriate documentation is submitted for review for determination of eligible expenses;
WHEREAS, subsequent to the deposit of the Resident’s Share by the City, three qualifying homeowners, with the assistance of the City, applied to and will receive ICC Funds in the combined amount of $62,110.00 as reimbursement for the Resident’s Share plus additional amounts that may be granted for unanticipated Mitigation Elevation costs currently estimated in the total sum of $2,170.00 equal to a combined total of $64,280.00;
WHEREAS, the policyholder has assigned to the City a portion of the ICC Funds received equal to the Resident’s Share on deposit with the City; and
WHEREAS, any ICC Funds in excess of the amount assigned to the City shall be paid to the applicable residents on whose behalf such funds were received.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Hampton, Virginia, that the sum of $64,280 and any other supplemental funding received from the National Flood Insurance Program is hereby appropriated to the City of Hampton Grant Fund, a portion of which shall be retained by City in reimbursement for certain costs incurred by the City pursuant to FEMA’s Severe Repetitive Loss Grant Program on behalf of three qualifying residents, and the balance of said funds and any remaining balances held on deposit by the City on behalf of the qualifying residents not necessary for reimbursement to the City shall be disbursed to applicable residents, subject to receipt of funds from the National Flood Insurance Grants Increased Cost Compliance Program.