Flood zone changes affect many in Evergreen

About 1,000 Evergreen property owners may soon learn that the floodplain zone designation for their property has been changed, which could mean they will be required to purchase flood insurance.

Letters were sent to residents last month from the Federal Emergency Management Agency, notifying them of the proposed changes. Affected people essentially have to wait for a July 28 meeting to learn more specifics about their individual properties.

At that meeting, which runs from 6 to 8 p.m. at the Evergreen Middle School gymnasium, FEMA officials will be joined by personnel from the Montana Department of Natural Resources and Conservation and the contractor hired by FEMA to evaluate the Evergreen property elevations. All of those people will explain the changes and answer questions, FEMA spokesman Jerry DeFelice said.

Because the maps are still in the draft stage and not every single piece of property has been delineated specifically to determine if it is in or out of the floodplain, some people may not get the full story on their property until after FEMA finishes work on the maps, which will occur sometime after July 28, DeFelice said.

The bottom line for property owners whose land is reclassified as being in a floodplain is that their lender will require the owners to purchase flood insurance.

Gregg Wilcox, consumer loan manager at Glacier Bank in Kalispell, said one of the duties of  bankers “is to enforce federal insurance mandates.”

So, he said, if a person’s property is reclassified in a floodplain, and that property has a mortgage, vendors who work with the bank tracking such changes notify the bank. In turn, the bank notifies the customer. The customer has 45 days to purchase flood insurance or the bank will do it on their behalf, Wilcox said.

Because Glacier Bank is a federally insured institution, it is required to monitor various types of changes to the properties it holds mortgages on, Glacier Bank Senior Vice President Jim Ness said.

“We have to show they have proper insurance levels or we are in violation of federal banking laws and subject to penalties,” Ness said. “We are obligated to require flood insurance when FEMA changes the classification.”

People who learn their property has been reclassified have an option to dispute that decision, DeFelice said.

But, it’s not particularly simple.

The property owner is required to provide documentation that proves they are above the base flood elevation. Generally that is an elevation certificate prepared by an engineer or surveyor, he said. The documentation would require an engineer’s stamp.

Other forms of documentation that FEMA would accept include an elevation certificate that may have been filed with the plat or an elevation certificate that the builder had when a house was constructed, DeFelice said.

“An appeal has to be based on technical merit, not on what people remember or say about their property,” he said.

Olaf Ervin of Montana Mapping Associates said people can expect to pay somewhere between $500 and $3,000 to hire a surveyor or an engineer to compare the elevation of their property or house to the elevation FEMA says it sits at.

“It’s a tough hit for the average person,” Ervin said.

After the July 28 meeting, FEMA will finish up its map work and then base elevation figures will be printed in the Federal Register, DeFelice said. Once that occurs — and the date it will be published isn’t yet known — a 90-day appeal period begins.

Once the appeal period ends, Flathead County will be required to update its ordinances to incorporate the new zones, he said. The county is given six months by FEMA to do that work. Then the floodplain maps are redrawn, made permanent and FEMA issues a letter of final determination. Once that occurs, the process is considered complete, he said. Generally, that entire process takes about a year, DeFelice said. The changes in Flathead County are expected to be permanent next summer.

 If anyone appeals the finding of their particular property, FEMA considers the protest and then issues a letter of determination.

Appeals are done either online, by telephone or fax, he said, because FEMA doesn’t have a local office.

Depending on individual cases in Evergreen, FEMA may hold additional meetings in the community to provide more assistance or answer more questions, he said. No additional meetings have yet been scheduled. 

“We are certainly willing to work with the community if we feel there are real needs or communications challenges,” he said. “If there is technical guidance we can’t provide on the first round we’ll have future meetings or a workshop or whatever might be needed. We believe that the more informed people are of their risk, the better able they are to make good decisions about protecting their lives and property.”

The changes come after FEMA’s completion of an updated flood hazard analysis. Changes are based on adjusted elevations for base flood zones.

FEMA focused on the Flathead River, Spring Creek, Trumbull Creek and associated overflow reaches.

Floodplain zones refer to changes in the flood insurance rate maps used by FEMA. Affected property owners in Evergreen generally can expect to see their property being reclassified into the 100-year floodplain zone, which means the property is expected to face a 1 percent or greater chance of flooding in any given year.

 The insurance rate maps are used to determine flood insurance rates and to help communities with floodplain management, FEMA says. The National Flood Insurance Program is administered by FEMA. Property owners obtain their flood insurance from private insurance companies.

Generally, when property is reclassified into a zone with a higher risk of flooding, insurance rates increase, State Farm insurance agent T.J. Wendt said.

Besides a higher insurance premium, property owners face another issue if their flood zone classification changes, Wendt said — from a development perspective.

Development, construction and septic system requirements differ by flood zone, he said.

Evergreen residents who already live in floodplains have told Ervin they pay an average of $1,400 a year for flood insurance on their property, he said.

The Flathead County Planning and Zoning Office is a repository for FEMA’s maps. People can look at the FEMA maps at that office, on the second floor of the Earl Bennett Building in the courthouse complex. The planning office manages local floodplain regulations, but has no oversight of floodplain zone designations.

 The Evergreen review stems from a subdivision proposed in 2007. The developer questioned the floodplain boundaries and contacted his U.S. senator from South Dakota, who in turn initiated a congressional inquiry into the boundaries.

A year ago, FEMA officials notified the county planning office that an evaluation of Evergreen’s floodplain designations had been conducted and a preliminary report would be prepared.

Evergreen residents who want more information about their property should call Sara Brush at FEMA, (303) 235-4871.

Reporter Shelley Ridenour may be reached at 758-4439 or sridenour@dailyinterlake.com.