'A major situation': CLB, experts discuss flood insurance protection program participation

NEWPORT - A special called meeting of the Cocke County Legislative Body (CLB) was held Tuesday evening in the circuit courtroom to discuss the county's participation in the National Flood Insurance Program (NFIP).

While no action was taken on the county's participation, several areas of concern by the commissioners were addressed. CLB will discuss the matter again after they have more information regarding the number of homes that suffered substantial damage.

CLB Chairman Norman Smith said he received a call last Monday about the enforcement mechanisms of the rebuilding after the flooding because of the county's participation in the NFIP. He said the property assessor's office was unaware of all the requirements and what's entailed with being a part of the NFIP.

"It is a major situation that the county is facing," Property Assessor Macie Reed said. "We never thought all three rivers would flood at once." The county property assessor also currently serves as the county floodplain administrator in Cocke County. The property assessor was appointed floodplain administrator by the CLB while Delmar Williamson was serving in the role.

County's NFIP participation

According to Tennessee Emergency Management Agency (TEMA) NFIP State Coordinator Jeremy Holley, Cocke County initially joined the NFIP by emergency entry in 1978. The county did a regular entry into the program in 1988. Records show that the county suspended membership on Jan. 6, 1988 then participation was reinstated on May 6, 1988. Once again participation was suspended on Aug. 18, 1992 then reinstated on April 8, 1993. The current ordinance was approved by CLB on Dec. 20, 2012.

"I don't want to push for a decision tonight, but we are at a standstill until a decision is made," Reed said.

She said she found that homes in the floodplain determined to have substantial damage, which is 50% or more, must be rebuilt according to the NFIP ordinance approved by CLB in 2012. Many people have started rebuilding and some have already finished their homes.

'I don't have the heart to do that'

Reed said she was told by the Federal Emergency Management Agency (FEMA) representatives to issue stop work orders for two mobile homes that were being placed in the floodway in the Centerview community where homes had been completely destroyed.

"I don't have the heart to do that," Reed said. She said she has cried regarding the situation and that morally she doesn't feel it is right to stop construction for people who have lost so much already.

Explaining a worst case scenario, Reed used a brick home fronting Highway 73 in the Edwina community as an example. She said if it suffered 50% or more damage, it must now be rebuilt to code, which could mean that the home must be elevated. She said the process "is not cheap or easy, and adds expense" to the rebuilding process.

She further explained if the county pulls out of the NFIP there are many potential ramifications. She said it would be difficult - if not impossible - for people to get flood insurance coverage for their properties. Those with mortgages would see lenders placing forced flood insurance coverage on their properties, which is "astronomically higher" she said. Those forced premiums could lead to payments higher than people can afford, which in turn, could lead to foreclosures. Property values could also plummet in the flood zones because of the difficulty acquiring flood insurance coverage.

Addendums added after the flood have made the surveying process more complex for surveyors.

As an example, it was pointed out Hartford is in Zone A. The rebuilding in that area per FEMA guidelines calls for property to be three feet above the highest adjacent land.

"Rebuilding in the floodway is even stickier," Reed said. "Two properties in the floodway have placed mobile homes. FEMA wants me to issue a stop work order. It is impossible to get no rise on a mobile home in a floodway."

Construction per FEMA guidelines

Responding to a question about how many homes in the floodplain were not constructed per the guidelines, Reed said when the proper process is followed, the property owner is supposed to get a development permit. She said no 911 address is issued until the development permit has been acquired. She said for properties in the floodplain an elevation permit is necessary while those in the floodway should get an engineering analysis.

According to Reed, the engineering analysis or elevation permit is brought in to the property assessor's office where they then get a permit to take to the utilities.

She said she wasn't as concerned about newer homes as she was about the older homes built prior to the 2012 ordinance.

The damage assessments have not been completed yet, but Reed said per the FEMA applications that have been submitted, FEMA expects there are around 70 structures that suffered substantial damage and would have to adhere to FEMA guidelines.

Holley pointed out no residences were grandfathered in, and those built before the ordinance was enacted were considered non-conforming. He has been working with the 10 counties in Tennessee affected by the flooding and said Cocke County is "not the only county behind the 8-ball."

City and county participation

Holley explained counties and cities are different and municipalities as well as counties participate in NFIP. He said both the City of Newport and the Town of Parrottsville participate in the NFIP and their participation is separate from that of Cocke County.

When asked what happens if a county is not in the NFIP and it experiences flooding, Holley said "I'm not saying they won't receive disaster relief assistance, but it would be minimal. What is offered now isn't enough."

'1,000-year flood'

"The goal is to prevent a loss of property and a loss of life," Holley said. "Everything on that flood map is based on a 100-year flood. This is probably a 1,000-year flood - they would've flooded (despite being built per the regulations)."

A county has to be in good standing with the NFIP to maintain participation, Holley added. He said flood insurance from a private insurer is much higher than coverage through the NFIP.

A land grab?

Commissioner Andy Ford said his home's basement flooded. He said he lives in the floodplain and has insurance. He said his family only received $2,500 for the damages.

Holley said the NFIP looks at elevation in the flood zones and a basement in the floodplain was a problem. Ford said his residence was built in 1958. He said statistically a flood of this magnitude wouldn't happen again, and he asked if he would have to do something different to his home because of the NFIP ordinance.

Holley said the changes are necessary when there is substantial damage, which is more than 50%.

"If we stay in this (NFIP) they can't afford to build back. It's basically a land grab so only the wealthy can live on the waterways," Ford said. He added it "wasn't a restoration effort, it's a relocation effort."

Responding to a question about financing and insurance requirements, Holley responded that it was the mortgage company's decision regarding the flood insurance requirements on a loan.

It was pointed out the most recent flood map for Cocke County dates back to 2009. Holley said they need to be revised more often, and he explained that Cocke County is in Region 4, which includes eight states and only two of those states do not have coastal areas. The states in Region 4 include Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee. It was pointed out the flood has changed the geography of the region and a new map needs to be done for Cocke County.

$25 million in property coverage

According to Holley, there are 129 NFIP policies issued in Cocke County providing $25 million in property coverage. If the county opts out of the NFIP, that coverage would have to be sought elsewhere. He said all 95 counties in the state participate in the NFIP and "all but a handful of communities" participate as well.

Cocke County Mayor Rob Mathis pointed out that the industrial park is located in the floodplain. SI Group, Ole Smoky, Eastern Plating and American Appliance are among the industries located there. Commercial businesses are also insured through the NFIP.

The regular monthly CLB meeting is set for Monday at 6 p.m. The CLB is not expected to discuss the NFIP at that meeting.