Task Force for Long-Term Solutions to Florida s Hurricane Insurance Market

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1 Task Force for Long-Term Solutions to Florida s Hurricane Insurance Market Presentation by Thaddeus L. Cohen, Secretary Florida Department of Community Affairs December 14, 2005

2 OVERVIEW Background Hurricane Response and Recovery Coastal High Hazard Areas and Growth Challenges The Florida Building Code Hazard Mitigation Programs

4 Background 12 million persons, or 80% of State, live within one of 35 coastal counties Florida s growth is among highest in USA, and coastal counties are among highest in State Florida has highest probability of any state for a major hurricane to make landfall SOURCE: Florida Assessment of Coastal Trends (FACT), 2000

5 Florida s Hurricane History

6 Hurricane Landfalls in Florida Cat 1-43 Cat 2-32 Cat 3-27 Cat 4-6 Cat 5-2 Total Hurricanes 110

7 2004 Hurricane Season Bonnie Tropical Storm Charley Cat 4 Hurricane Frances Cat 2 Hurricane Ivan Cat 3 Hurricane Jeanne Cat 3 Hurricane

8 2005 Hurricane Season Arlene Tropical Storm Dennis Cat 3 Hurricane Katrina Cat 1 Hurricane Ophelia - Tropical Storm Rita Cat 1 Hurricane Tammy Tropical Storm Wilma Cat 3 Hurricane

9 State EOC Coordinates Florida s Response Efforts

10 Tropical Storm Bonnie and Hurricane Charley

11 Florida and FEMA establish Unified Response Command

12 Charley Damage in Charlotte County

13 Ivan Damages Pensacola Harbor

14 Hurricane Dennis

15 Florida launches historic aid to neighboring Gulf States in the wake of Hurricane Katrina s second U.S. landfall. Hurricane Katrina

18 Thousands of families moved into temporary housing following the 2004 Hurricane Season

19 LONG TERM RECOVERY EFFORTS Challenges to recovery Restoring basic infrastructure Coordinated Planning Land use issues (Comprehensive plans) Affordable housing housing and land escalation Mitigation of future disasters Economic development Lost jobs Destruction of primary employment base Re-establishing local human capital needed for rebuilding

20 Hurricane Recovery Efforts Florida Small Cities Community Development Block Grant Program

21 Overview Florida s CDBG Disaster Recovery Initiative Disaster Recovery Workshops Peer-to-Peer Technical Assistance

CDBG Disaster Recovery Initiative CDBG Supplemental Award Florida allocated $100,915,626 37 counties targeted for funding Emphasis on long-term recovery

22 CDBG Disaster Recovery Initiative CDBG Supplemental Award Florida allocated $100,915, counties targeted for funding Emphasis on long-term recovery Infrastructure projects including WWT and storm water mitigation Housing projects including demolition, replacement, and establishing land trust Business revitalization

23 Disaster Recovery Workshops Four regional workshops Development of funding matrix Project specific funding discussions State and federal resource representative networking

24 Peer-to-Peer Technical Assistance Alabama, Louisiana and Mississippi Multi-agency forum Florida Small Cities CDBG Program Florida Housing Finance Corporation State HUD staff DC Disaster Office HUD staff Best Practices Florida s CDBG Disaster Recovery initiative Home Again

25 Growth Challenges Faced by DCA s Division of Community Planning

26 Coastal High Hazard Area Defined as the evacuation zone for a Category 1 hurricane as established in the regional hurricane evacuation study applicable to the local government. Collier County Coastal High Hazard Area 9J-5.003(17)

27 Florida Coastal Population

28 Hurricane Evacuation Zones Depicted in regional hurricane evacuation studies (HES) Based on storm surge boundaries defined through Sea Lake and Overland Surges from Hurricanes (SLOSH) or The Arbiter of Storms (TAOS) models HES is prepared by whoever has the capability (RPCs, USACE, or private consultants) State standardizes the product thru the scope of work to get a similar product for each basin

29 Coastal Management Elements DCP reviews Coastal Management Elements for consistency with applicable statutes and rules DCP reviews FLUM amendments or text changes for consistency with Coastal Management Elements

Coastal Management Elements Statutory Guidance Purpose of Element: Local government comprehensive plans must restrict development activities where such activities would

30 Coastal Management Elements Statutory Guidance Purpose of Element: Local government comprehensive plans must restrict development activities where such activities would damage or destroy coastal resources, and that such plans protect human life and limit public expenditures in areas that are subject to destruction by natural disaster. ( )

31 Coastal Management Elements Rule 9J-5 specifies focus on: Hurricane evacuation planning; Post-disaster redevelopment; Identify coastal high-hazard areas; and Inventory infrastructure within CHHA.

32 Coastal Management Elements Objectives of Element must: Protect and conserve coastal wetlands, etc. Maintain estuarine environmental quality Criteria to prioritize shoreline uses Protect beaches or dunes, etc. Limit public funding that subsidizes development Direct population away from CHHA Maintain/reduce evacuation time Prepare post-disaster redevelopment plans Increase access to beach Protect historic resources Infrastructure planning in CHHA Rule 9J-5.012(3)(b)

33 Balance of Competing Goals Lower Density: Protect people and property Emergency management Ecological sensitivity of coastal resources Coastal resources as protection from storms Limit public funding to reduce infrastructure exposure Hurricane evacuation times Higher Density: Redevelopment promoting compact urban growth Recreation Tourism Commerce Economic development

34 Evacuation Area & Density The defined evacuation area and permissible densities are linked That linkage results in impact to property valuations Property owners object to density being governed by a regional study without stakeholder input

high-risk coastal areas Growth management policies

35 New Building Code The new Florida Building Code substantially improves development standards in high-risk coastal areas Growth management policies have not been revised to consider these improved standards

Florida s Building Codes A Response to Growth and Hurricanes 1955 - South Florida Building Code 1960 - Hurricane

36 Florida s Building Codes A Response to Growth and Hurricanes South Florida Building Code Hurricane Donna State Minimum Building Code Coastal Building Zone Hurricane Andrew Florida Building Code

37 Post Hurricane Andrew Overhaul of State Building Code System Results: Moved from local codes to a single state code -- the Florida Building Code Established product approval requirements for wind related performance of products Established building code training requirements for licensed designers, contractors and enforcement personnel

38 Florida Building Code Major Advancements Adopted ASCE 7-98 engineering standard for entire state Design wind speeds follow the coastline contour Window and door protection from debris impact or enhanced structural strength is required for category 3 hurricane areas Better and more enforceable standards for building component products are established Better read code than previous codes Note: There was little change to design wind pressures

39 Building Code Effects on Improved Building Performance Pre-1993 Codes Extensive structural failures Extensive building component and cladding (envelope) failures Codes Limited structural failures Extensive roof covering failures Window and door failures 2001 Florida Building Code Limited structural failure Roofing and other building components improved significantly Water intrusion distinguishable from structural failure Some finishes failures

40 Florida Building Code Enhancement Response to 2004 Hurricanes Conducted workshops and a symposium with researchers Established a panel to monitor research studies and make recommendations Assessed the recommendations from the research studies and developed a coded amendment plan Requested Legislative authority for an expedited amendment process to address near term issues/completed October 2005 Developed amendments that required additional work for the regular code amendment cycle starting December 1, 2005 Is seeking resources to conduct research in support of standards development to address long range issues and recommendations

41 Mitigation Programs in Florida Hazard Mitigation Grant Program Residential Construction Mitigation Program Florida s Shelter Retrofit Program

42 Hazard Mitigation Funding Pre-Disaster Mitigation Grant Program Electronic application (E-Grants) Open cycle Received over $25 million in competitive funding over pass 2-years For Fiscal Year 2006 total of $50 million available competitively nationwide Flood Mitigation Assistance (FMA) Program Electronic application (E-Grants) Open cycle Annually the DCA received an estimated $3.5 million to retrofit repetitive loss structures

43 Mitigation Funding Hazard Mitigation Grant Program (HMGP) Projects must be listed in Local Mitigation Strategy 2004 Hurricanes Season HMGP Total over $320 Million in funding 820 applications totaling over 1600 potential projects-received on May 2 (Charley, Jeanne and Frances) and June 14, 2005 (Ivan) Joint State/FEMA reviews Application reviews and request for additional information FEMA has begun obligating projects 2005 Hurricane Season HMGP Application cycle will open in mid- January for Hurricane Dennis of which Escambia County was declared (Potentially $18.0 Million in funding)

44 Mitigation Technical Assistance Available Local Mitigation Strategy updates and maintenance Mitigation grant program application development Benefit Cost Analysis Environmental clearance Risk assessment updates Grants and project management of funded mitigation projects Mitigation education and outreach 2004 Hurricane Season Mitigation Lessons Learnedwelcome your input

45 Residential Construction Mitigation Program (RCMP) The RCMP, pursuant to FS (2)(a) receives $7,000,000 per year "...for programs to improve the wind resistance of residences and mobile homes... RCMP funds three programs: 1.The Low-Moderate Income Retrofit Program (LMI Retrofits) 2. Mobile Home Tie-Down Program (MHTD) 3. Low Interest Loan Program (LILP)

46 1. The Low-Moderate Income Retrofit Program (LMI Retrofits) LMI Retrofits: RCMP funded 10 community based LMI Retrofit Programs in ($1,775,000) and 6 in ($1,135,831) through a competitive process; these programs typically are administered by the Community Development Department, Community Action Agency or similar organization. RCMP funds are usually "bundled" with other programs (SHIP,CDBG, HOME, etc) as part of an overall redevelopment 'package': therefore mitigation is incorporated into this process and the homeowner receives not only an improved home but also a SAFE, wind resistant home. Results are maximized in this holistic approach.

47 2. Mobile Home Tie-Down Program (MHTD) MHTD Program: FS requires that 40% of the annual appropriation ($2.8 MM) is utilized for the MHTD program, which is administered by Tallahassee Community College. The program, now in it's fifth year, has been evaluated to be 'successful' in that no foundation failures in any RCMP MHTD unit have occurred.

48 3. Low Interest Loan Program (LILP) This program was authorized by the 2005 Legislative Session and is under development. Currently, sophisticated polling and marketing research is underway to determine the market and best approaches to potential clients; an RFP for management and implementation of the LILP is being issued at this time. The program, by statute, is directed to work with lending institutions to develop write-downs on mortgages for homeowners - mobile home as well as 'stick built' homes - when they finance or refinance. The program is funded as a PILOT ($190,000) for FY and as the 'full' program in , of 'up to $1,000,000'.

49 Florida s Shelter Retrofit Program The Division has the authority and responsibility to administer a hurricane shelter survey and retrofit program. The program s statutory objective is to eliminate the state s deficit of safe hurricane shelter space The Florida Hurricane Catastrophe Fund annually provides $3 million for shelter retrofit projects identified by Florida s Shelter Retrofit Report. This funding improves existing shelters and creates approximately 25,000 additional shelter spaces each year for Floridians and visitors.

50 Florida s Shelter Retrofit Program Florida has made significant progress in reducing the deficit of hurricane shelter space during the past six years more than 50 percent of the deficit has been eliminated Since 1999, under the leadership of Governor Bush and the Legislature, approximately 80 percent of the state s retrofitted hurricane shelter capacity was created, in part or in whole, by state funding of projects listed in the Report.

51 Task Force for Long-Term Solutions to Florida s Hurricane Insurance Market Presentation by Thaddeus L. Cohen, Secretary Florida Department of Community Affairs December 14, 2005

Community Development Block Grant Disaster Recovery Funding. During the 2004 hurricane season, four major hurricanes devastated many areas of

DEPARTMENT OF COMMUNITY AFFAIRS Division of Housing and Community Development Rule Title: Community Development Block Grant Disaster Recovery Funding Rule No: 9BER05-2 During the 2004 hurricane season,