Highlands residents – read the fine print of the FEMA agreements


According to Shore House Raising News: Any Highlands homeowner accepting a FEMA Hazard Mitigation Grant MUST agree to sign a document that places Deed Restrictions on the property.

These deed restrictions include the PROPERTY MUST HAVE FLOOD INSURANCE for the LIFE of the property. This is required even if the home is owned without a mortgage. This Deed Restriction will follow the property even if sold. (See Document )

It basically states:

As a recipient of Federally-funded hazard mitigation assistance under the Hazard Mitigation Grant Program,the Property Owner has insured all structures that will

1) not demolished the home or relocated out of the SFHA (Special Flood Hazard Area)
2) as long as the Property Owner holds title to the property that the Property Owner will maintain all structures on the  property in accordance with the flood plain management criteria. These criteria include, but are notlimited to, the following measures:
            (i) Enclosed areas below the Base Flood Elevation will only be used for  parking of vehicles, limited storage, or access to the building;
           (ii) All interior walls and floors below the Base Flood Elevation will be unfinished or constructed of flood resistant materials;
           (iii) No mechanical, electrical, or plumbing devices will be installed below the Base Flood Elevation;
           (iv) All enclosed areas below Base Flood Elevation must be equipped with vents permitting the automatic entry and exit of flood water.
The above conditions are binding for the life of the property. To provide notice to subsequent purchasers of these conditions, the Property Owner agrees that Highlands & Monmouth County will 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 descriptionof the property, and the following notice of flood insurance requirements:
“This property has received Federal hazard mitigation assistance. Federal law requires that flood insurance coverage on this property must be maintained during the life of the property regardless of transfer of ownership of such property. Failure to maintain flood insurance on this property may prohibit the owner from receiving Federal disaster assistance with respect to this property in the event of a future flood disaster. The future Property Owner is also required to maintain this property in accordance with the flood plain management criteria. Failure to abide by the above conditions may prohibit the Property Owner and/or any subsequent purchasers from receiving Federal disaster assistance with respect to this property in the event of any future flood disasters. If the above conditions are not met, FEMA may recoup the amount of the grant award with respect to the subject property, and the Property Owner may be liable to repay such amounts. (Ok question, if I’m dead in 50 years where is FEMA going to recoup the money from??)

3 comments

  1. Well good thing I have a mortgage and maybe it will force people to have flood insurance who should have had it all along.

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  2. On another note, keep in mind if you are accepted for an SBA loan and accept a loan over $14,000, the government will put a lien on your home for the life of the loan. Something to consider depending on one’s credit rating.

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  3. “Failure to maintain flood insurance on this property may prohibit the owner from receiving Federal disaster assistance with respect to this property in the event of a future flood disaster.”

    Really? Seems to me that HAVING flood insurance on property prohibits the owner from receiving Federal disaster assistance!

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