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HomeMy WebLinkAbout6.3 Motion to waive the rule requiring two readings of an ordinance and adopt an ORDINANCE AMENDING CHAPTER 22, “FLOODPLAIN REGULATIONS”M+awn �'xytlts=e Item Cover Page Subject Motion to waive the rule requiring two readings of an ordinance and adopt an ORDINANCE AMENDING CHAPTER 22, "FLOODPLAIN REGULATIONS" IN THE VILLAGE CODE OF MOUNT PROSPECT. This ordinance will revise current Village standards regarding improvements and repairs to existing buildings within the floodplain to reflect the National Flood Insurance Program standards. Meeting November 7, 2023 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD Fiscal Impact (Y/N) Dollar Amount Budget Source Category Type Information N Not applicable. Not applicable. CONSENT AGENDA Action Item The National Flood Insurance Program (NFIP) is a federal program created by Congress to mitigate future flood losses across the country. The program enacts and enforces floodplain management regulations and provides access to government -backed flood insurance policies for property owners and renters. It should also be understood that it is a requirement of the NFIP that all federally backed mortgages for structures identified as being located within the "Special Flood Hazard Area" (aka, floodplain or SFHAs) be covered by flood insurance, and that flood insurance is only available if the municipality is a participant in the NFIP. Furthermore, federal agencies may not provide flood disaster assistance in a community with SFHAs, unless the community participates in the NFIP. The Federal Emergency Management Agency (FEMA) has further encouraged communities to reduce flood damage through creation of the Community Rating System (CRS). By participating in CRS, communities gain credit for activities performed beyond the minimum standards set forth by the NFIP. The Village of Mount Prospect has been a participant in the NFIP since the first floodplain maps became effective in 1982. The Village has participated in CRS since 2002, and by performing activities beyond the NFIP minimum standards, has achieved a CRS Rating 6, which results in a 20% reduction in the cost of all flood insurance policies for structures located within a floodplain. The typical annual cost for flood insurance for a single-family home in a floodplain is approximately $2,000.00, so Mount Prospect's CRS activities would save each of the 134 owners of homes in the floodplain $400 annually over the entire life of their mortgages, for a total savings of approximately $1,600,000.00 (assuming 30 -year loans). NFIP Floodplain Buildina Restrictions Reaardina Existina Structures One of the key elements of the NFIP is the limitation of new construction within known floodplains. The NFIP requires that communities review building permit applications to ensure the modifications to buildings will provide reasonable safety from flooding. Such regulated building modifications are defined as "substantial improvements" or repairs addressing "substantial damage". A "substantial improvement" is defined in the NFIP as any rehabilitation, addition, or other improvement to a building where the cost equals or exceeds 50% of the building's market value before the start of construction. Substantial improvements do not include any improvement project to correct existing violations of state or local health, sanitary or safety code specifications identified by local code enforcement officials as the minimum specifications necessary to ensure safe living conditions. Also excluded from the substantial improvement requirement are alterations to historic buildings as defined by the NFIP. Similarly, "substantial damage" is the damage sustained by a building when the cost of restoring the building to its pre -damaged condition would equal or exceed 50% of the market value of the building before the damage occurred. This damage includes all types of damage to a building and is not limited to flood damage. Per NFIP requirements, when improvements to existing buildings, structures, and manufactured homes meet the definition of "substantial improvement," or when damage meets the definition of "substantial damage," communities must enforce requirements to bring those structures into compliance by meeting the requirements for new construction. This means that every aspect of the structure must be made compliant. Acceptable means for bringing non-compliant structures into compliance include, but are not limited to, elevating the existing structure, and dry floodproofing (non-residential structures only). If, because of site or building constraints, it is not possible to bring an existing building into compliance, NFIP restrictions would prohibit any substantial improvements or repairs to substantial damage. While these restrictions may seem harsh, it is important to remember FEMA's goal for the NFIP: to reduce insurance liability for flood -prone structures. Allowing a non-compliant building within the floodplain to be improved or repaired would only perpetuate and increase the liability and may result in repetitive flood insurance claims. Instead, FEMA would rather see the non-compliant building brought into compliance, or if necessary, removed. Failure of the Village to enforce these regulations could jeopardize the Village's participation in the NFIP. Village of Mount Prospect Floodplain Building Restrictions Regarding Existing Structures The Village of Mount Prospect adopted a higher standard regulating substantial improvements and repairs of substantial damage over 30 years ago, based on model ordinances developed by the Northeastern Illinois Planning Commission (NIPC). Section 22.109 of the Village Code (Permitting Requirements Applicable to All Floodplain Areas) states: "Nonconforming structures may remain in use, but shall not be enlarged, replaced or structurally altered. A nonconforming structure damaged by flood, fire, wind or other manmade or natural disaster may be restored unless the damage exceeds fifty percent (50%), considered on a cumulative basis, of its market value. In which case, it must, thereafter, conform to this article." The Code does not include a definition of a "structural alteration". It has been staff's interpretation that for purposes of compliance with NFIP regulations, "structural alterations" include any structural element on FEMA's list for substantial improvements. These elements include, but are not limited to foundations, concrete slabs, walls, decking, floors, ceilings, porches, interior partition walls, wall finishes (including painting!), windows, doors and hardware. The Village has approximately 15 commercial and 50 residential buildings located within the floodplain, and is subject to these restrictions. Recently, the Village was approached by two (2) commercial property owners wishing to improve existing buildings within the floodplain. Neither property owner had the resources to bring the existing buildings into compliance with current floodplain regulations, so based on the information detailed above, both permits for the improvements to the buildings in the floodplain were denied. One other item of note regarding the Village Code: Section 22.109.0 refers to the cumulative cost of repairs. Any repairs to buildings within the floodplain must be tracked. Once the total cost of repairs reaches 50% of the cost of the building, no further repairs can be approved until the entire building is brought into compliance with the floodplain regulations. Furthermore, 22.109.C.4. of the Code also states nonconforming structures in a floodway cannot be replaced. Discussion The Village Code, as it is currently written, makes it virtually impossible to improve and limits the total amount of repairs that can be made to a building located within the floodplain. While staff understands and agrees with FEMA's goal of limiting damage and liability within the floodplain, the Code creates an excessive burden on owners of buildings within the floodplain. By limiting cumulative repairs, buildings within the floodplain could over time fall into disrepair, creating an undue hardship for property owners. As a consequence, many of these buildings will likely be abandoned. The proposed text amendments are attached. These modifications have been reviewed and approved by Marilyn Sucoe, the Northeast Illinois Floodplain Program Manager with the Illinois Department of Natural Resources, as complying with NFIP standards and confirmed that they will not impact the Village's CRS rating. It should also be noted that Ms. Sucoe pointed out that while these proposed changes comply with NFIP standards, several other portions of the existing Village floodplain regulations do not. At Ms. Sucoe's suggestion, staff is currently reviewing all Village floodplain regulations and plan to bring a comprehensive recommendation for updates to Chapter 22 of the Village Code in the first quarter of 2024. Staff recommends action now on the interim Village Code changes detailed above to allow building permits to be issued for the improvements proposed to the two (2) buildings noted previously. The property owners are prepared to submit building permits and begin renovation work as soon as possible. Alternatives 1. Amend the Village Code regarding substantial improvements and substantial repairs to reflect the NFIP standards. 2. Action at the direction of the Village Board. Staff Recommendation Staff recommends updating the Village Code as follows: • Delete the reference to "structural alteration", and instead refer to 11substantial improvements". • Eliminate any restrictions based upon the cumulative costs of improvements. • Eliminate the restriction prohibiting the replacement of a building within the floodplain. (Note: A building could be replaced, subject to the requirements detailed in Section 22.109.C. A residential building would have to be elevated above the flood protection elevation; a commercial/industrial building could be elevated above the flood protection elevation or could be structurally dry floodproofed.) • Clarify that only floodproofing improvements may extend beyond the dimensions of an existing building within the floodplain. Attachments 1. Proposed Text Amendments 2. Ord amending Ch 22 of VC CHAPTER 22 — FLOODPLAIN REGULATIONS Introduction to Villa_ae Code amendment to Section 22.109.C: Village Code currently exceeds the minimum standards set forth in the National Flood Insurance Program (NFIP) by prohibiting structural improvements to buildings located within the floodplain and by limiting the repairs to damage caused by natural disasters. The proposed change relaxes these restrictions to reflect the minimum required standards of the NFIP. The Village does not claim credit for the existing, stricter standards of the current Village Code, so relaxing these standards to reflect the minimum required standards of the NFIP will not adversely impact the Village's rating within FEMA's Community Rating System. Amendment to Section 22.109.C: C. Protecting Buildings: All buildings located within a 100 -year floodplain also known as an SFHA, shall be protected from flood damage below the flood protection elevation. However, existing buildings located within a regulatory floodway shall also meet the more restrictive appropriate use standards included in section 22.107 of this article. This building protection criteria applies to the following situation: Construction or placement of a new building; Nonconforming structures may remain in use, but shall not be enlarged, s s � s g- _� p ry II „ I� �'N I� y� p ® y J qp II II 'ry �'ry �'N �1 y= l� p �y �'N �ry T �} it N l M`" iu b!:3�V W I II ���„4 �'� I II„Il p 1 lw»�N1M �� j, !I Y h� N NN H � II II,g I II�.wIl l�+wwNyg 111,e l 11 s i0udnV':. uiie W. si uu 3 l a Ibijing llhe WJinucljre uunb) g dripIluainc �Ajlllh this article; For reference, the definition of "Substantial Improvement" included in Section 22.102 is noted below: SUBSTANTIAL IMPROVEMENT: Any repair, reconstruction or improvement of a structure, the cost of which equals or exceeds fifty percent (50%) of the market value of the structure either: a) before the improvement or repair is started, or b) if the structure has been damaged and is being restored, before the damage occurred. This term includes structures which were damaged whereby the cost of restoring the structure to its predamaged condition would equal or exceed fifty percent (50%) of the market value before the damage occurred, regardless of the actual repair work performed. For the purposes of this definition "substantial improvement" is considered to occur when the first alteration of any wall, ceiling, floor, or other structural part of the building commences, whether or not that alteration affects the external dimensions of the structure. The term does not, however, include either: a) any project for improvement of a structure to comply with existing state or local health, sanitary, or safety code specifications which are solely necessary to assure safe living conditions; or b) any alteration of a "historic structure", provided that the alteration will not preclude the structure's continued designation as a "historic structure". Introduction to Village Code amendment to Section 22.109.C.4: Village Code currently exceeds the minimum standards set forth in the National Flood Insurance Program (NFIP) by prohibiting structural improvements to structures located within the floodway, limiting the repairs to damage caused by natural disasters, and by prohibiting the replacement of buildings located within the floodway. The proposed change relaxes these restrictions to reflect the minimum standards of the NFIP. The Village does not claim credit for the existing, stricter standards of the current Village Code, so relaxing these standards to reflect the minimum standards of the NFIP will not adversely impact the Village's rating within FEMA's Community Rating System. Amendment to Section 22.109.C.4: 4. Nonconforming structures located in a regulatory floodway may remain in use, but may not be enlarged, W,,,&�€c u�pu�u uu:�.11��un�.uuu�:"n.� �rlunu.� Inuuw iiM,ry IIiiua:,p...gggd suull`. stariflzflIIy uim.l ir2Y1a1i,ly' uII ��he irrup.myg[ri irut uinii:1 ud e rrie usu.uues k) I[)iji ig flue sluuuc u.u.ire uin[A) g.°inlll 11l ance %�Jllh this article. (Ord. 5253, 5-21- 2002) Introduction to Village Code amendment to Section 22.107.B.1.g_ Village Code currently allows for the construction of floodproofing improvements to existing structures within the floodway to extend outside the existing dimensions of the building. However, the Village Code is not clear in that it does not specify only floodproofing improvements. The proposed change clarifies the intent and restricts construction outside the existing building to floodproofing improvements. Amendment to Section 22.107.B.1.g_ g. Floodproofing Of Existing Habitable, Residential And Commercial Structures: If construction II' p p �Il um� � llnu�l a 11111Pum sYMein�s involves work outside of the existing building, the outside perimeter of the floodproofing construction shall be placed no further than ten feet (10') from the outside of the building. Compensation of lost storage and conveyance will not be required for floodproofing activities. H:\Engineering\Agencies\FEMA\VoMP Floodplain Regulations\2023 - Changes to Existing Structure Restrictions\Proposed Text Amendments.docx ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 22, "FLOODPLAIN REGULATIONS," OF THE VILLAGE CODE OF MOUNT PROSPECT, ILLINOIS BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS: Section 1: Section 22.109.C. "Permitting Requirements Applicable to All Floodplain Areas," Article I, "Floodplain Management Regulations," of Chapter 22, "Floodplain Regulations," of the Mount Prospect Village Code shall be amended as follows: C. Protecting Buildings: All buildings located within a 100 -year floodplain also known as an SFHA, shall be protected from flood damage below the flood protection elevation. However, existing buildings located within a regulatory floodway shall also meet the more restrictive appropriate use standards included in section 22.107 of this article. This building protection criteria applies to the following situation: Construction or placement of a new building; Nonconforming structures may remain in use, but shall not be enlarged, flood, fiFe, wind OF other manmade OF RatUFal disasteF may be reStWed HRIeSs the damage a ease, i+ mus+ thereaf er Gonform +„ o uul sly: in la uIHy liu r 11 u a w �l„ u.uu ill w� in Hi uu ull iri::i°,r .^u i nd;ui u : uuni wAu.0 ,lug unue::::suuures lo Ibrnung fl -1 sluu'I) ui11' la;'w: ii:ornIlziluauni e ~ nuhi� this article; Section 2: Section 22.109.C.4, "Permitting Requirements Applicable to all Floodplain Areas," Article I, "Floodplain Management Regulations," of Chapter 22, "Floodplain Regulations," of the Mount Prospect Village Code shall be amended as follows: 4. Nonconforming structures located in a regulatory floodway may remain in use, but may not be enlarged, FeplaGed "r c+r, G ,Folli altered! 4 nE)nnE)nfE)rvniRg c+r, ,nfi ,re damaged by fleed fire peFGeRt o 41, shln ch ire may II,)e a replaced ai ed o i.uu.ut.istl uu uin :ullNy liu.ii,.ulfpu Dve , uf the uimpiroven,ieins u111C u.u(JE) uuuleaUI-e!:3 k) Il hillc-p Hie ,sh" ui:�tuirir) uii, lci withu thisarticle. (Ord. 5253, 5-21-2002) Section 3: Section 22.107.13-1 -g- "Occupation and Use of Identified Floodways" Article I, "Floodplain Management Regulations," of Chapter 22, "Floodplain Regulations," of the Mount Prospect Village Code shall be amended as follows: g. Floodproofing of Existing Habitable, Residential And Commercial Structures: If construction c4: llluuoill,uuu:iofling limo l.)iroven,ieints involves work outside of the existing building, the outside perimeter of the floodproofing construction shall be placed no further than ten feet (10') from the outside of the building. Compensation of lost storage and conveyance will not be required for floodproofing activities. ADOPTED this 7th day of November, 2023, pursuant to a roll call vote as follows: AYES: NAYS: ABSENT: APPROVED by me this 7th day of November, 2023, and attested to by the Village Clerk this same day. Mayor Paul Wm. Hoefert ATTEST: Karen Agoranos, Village Clerk