INCREASED COST OF COMPLIANCE FUNDS AVAILABLE

Increased Cost of Compliance (ICC) funds are available to individuals with flood insurance policies backed by the National Flood Insurance Program (NFIP). ICC provides up to $30,000 to bring flooded properties into compliance with local floodplain regulations.

ICC funds can be used for:

• Floodproofing (primarily for non-residential buildings) – Making a building watertight through a combination of adjustments or additions of features to the building
• Relocation – Moving a home or business out of the flood zone
• Elevation –Raising a home or business to or above the flood-elevation level adopted by the local community
• Demolition – Tearing down and removing flood-damaged buildings

Flooded properties are eligible for ICC funds in two instances:

• Substantial damage – The local community determines the home or business is so damaged by the flood that repairs will cost 50 percent or more of the building’s pre-damage value.
• Repetitive damage – The local community must have a repetitive loss provision in its floodplain management ordinance and must determine that the home or business was damaged by a flood twice in the past 10 years. The cost of repairing the damage must on average equal or exceed 25 percent of the building’s market value at the time of the flood. There must have been a flood insurance claim payment for both losses.

ICC claims must be filed separately from flood damage claims. The local community determines the property has suffered either substantial or repetitive damage, at which point owners should contact their insurance company for ICC funding.