Lake Oswego working to comply with new flood insurance program requirements for habitat protection

The city of Lake Oswego plans to remain in the National Flood Insurance Program despite additional requirements, according to direction the City Council provided at a meeting Tuesday, Oct. 1.

"It is important to maintain our ability for residents to have their NFIP-backed flood insurance," Mayor Joe Buck said at the meeting.

The Federal Emergency Management Association is integrating wildlife protection within the program — which is the primary source of flood insurance in the United States — with a particular emphasis on the impacts of floodplain development on steelhead and salmon, according to the city staff report.

"The BiOp (an opinion issued under the Endangered Species Act) concluded that the current implementation of the NFIP in Oregon is likely to jeopardize the continued existence of 16 anadromous fish species and the Southern Resident Killer Whale, all of which are listed as threatened or endangered under the ESA, and result in the destruction or adverse modification of designated or proposed critical habitat for the 16 anadromous fish species," a draft report of the plan reads.

The federal flood insurance program is voluntary, but most local governments participate in it and doing so allows local residents within the floodplain to maintain flood insurance policies via the program.

"This insurance is designed to protect against the risk of flood losses, thus reducing the escalating costs of repairing damage to buildings and their contents caused by floods," the draft report reads.

'No net loss'

The new requirements are mostly relevant to new development in areas of the city — like along the Willamette River or Oswego Lake — that are within the floodplain. The city noted that this new requirement could also impact its plans for a new wastewater treatment plant, as the proposed facility location in the Foothills district is within a floodplain.

"The purpose of these changes specifically is for applicants to demonstrate that their development in the floodplain will not result in a net loss of habitat for endangered species in Oregon through a habitat assessment," the city staff report reads. "The main rule for this is 'no let loss,' meaning either through alteration of construction plans or mitigation efforts, the end result of the project will not result in any loss of habitat for critically endangered species."

The City Council preferred complying with a model ordinance FEMA issued as opposed to alternatives — including leaving the program, preventing all new development within a floodplain or reviewing applications on a permit-by-permit basis to see whether they comply.

"This is the preferred option by City staff because it identified specific indicators and states the parameters to be measured, resulting in clearer and more objective standards, and is expected to result in lower costs for analysis by applicants and lower cost for review by city staff or retained consultants, as compared to Option 2 (the permit-by-permit option)," the city staff report reads.

Community Development Director Jessica Numanoglu explained that the new requirements could create extra work and costs for developers hoping to build in a floodplain, particularly the potential need to hire an expert to review a project's habitat impacts.

City Manager Martha Bennett said that being a part of the program is a requirement for disaster relief funding, adding that the city expects to recoup 70% of expenses related to the January icestorm.

"Although I do think the private flood insurance is really important for our residents and business owners, FEMA disaster relief is important for the city," she said.

The city will consider this issue again at a later date. However, full implementation of the requirements is anticipated to take place in 2027.