Pilot Inspection Program

Federal Emergency Management Agency, DHS
submits the application materials specified in § 59.22(a).
(f) If during a period of ineligibility
under paragraphs (a), (d), or (e) of this
section, a community has permitted
actions to take place that have aggravated existing flood plain, mudslide
(i.e., mudflow) and/or flood related erosion hazards, the Administrator may
withhold reinstatement until the community submits evidence that it has
taken action to remedy to the maximum extent possible the increased
hazards. The Administrator may also
place the reinstated community on
probation as provided for in paragraph
(b) of this section.
(g) The Administrator shall promptly
notify the servicing company and any
insurers issuing flood insurance pursuant to an arrangement with the Administrator of those communities
whose eligibility has been suspended or
which have withdrawn from the program. Flood insurance shall not be sold
or renewed in those communities. Policies sold or renewed within a community during a period of ineligibility are
deemed to be voidable by the Administrator whether or not the parties to
sale or renewal had actual notice of the
ineligibility.
[41 FR 46968, Oct. 26, 1976. Redesignated at 44
FR 31177, May 31, 1979, and amended at 48 FR
44543 and 44552, Sept. 29, 1983; 49 FR 4751, Feb.
8, 1984; 50 FR 36023, Sept. 4, 1985; 57 FR 19540,
May 7, 1992; 59 FR 53598, Oct. 25, 1994; 62 FR
55715, Oct. 27, 1997]

rfrederick on PROD1PC67 with CFR

Subpart C—Pilot Inspection
Program
§ 59.30 A pilot inspection procedure.
(a) Purpose. This section sets forth
the criteria for implementing a pilot
inspection procedure in Monroe County
and the Village of Islamorada, Florida.
Areas within Monroe County that become communities by incorporating on
or after January 1, 1999, are required to
implement the pilot inspection procedure as a condition of participating in
the NIP. The criteria will also be used
to implement the pilot inspection procedure in these communities. The purpose of this inspection procedure is to
provide the communities participating
in the pilot inspection procedure with
an additional means to identify wheth-

§ 59.30

er structures built in Special Flood
Hazard Areas (SFHAs) after the effective date of the initial Flood Insurance
Rate Map (FIRM) comply with the
community’s floodplain management
regulations. The pilot inspection procedure will also assist FEMA in verifying
that structures insured under the National Flood Insurance Program’s
Standard Flood Insurance Policy are
properly rated. FEMA will publish notices in the FEDERAL REGISTER when
communities in Monroe County incorporate, agree to implement the pilot
inspection procedure, and become eligible for the sale of flood insurance.
(b) Procedures and requirements for implementation. Each community must establish procedures and requirements
for implementing the pilot inspection
procedure consistent with the criteria
established in this section.
(c) Inspection procedure—(1) Starting
and termination dates. The Associate Director for Mitigation and the Federal
Insurance Administrator will establish
the starting date and the termination
date for implementing the pilot inspection procedure upon the recommendation of the Regional Director. The Regional Director will consult with each
community.
(2) Extension. The Associate Director
for Mitigation and the Federal Insurance Administrator may extend the
implementation of the inspection procedure with a new termination date
upon the recommendation of the Regional Director. The Regional Director
will consult with the community. An
extension will be granted based on good
cause.
(3) Notices. Before the starting date of
the inspection procedure, each community must publish a notice in a prominent local newspaper and publish other
notices as appropriate. The Associate
Director for Mitigation and the Federal
Insurance Administrator will publish a
notice in the FEDERAL REGISTER that
the community will undertake an inspection procedure. Published notices
will include the purpose for implementing the inspection procedure and
the effective period of time that the inspection procedure will cover.
(4) Community reviews. The communities participating in the pilot inspection procedure must review a list of all

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rfrederick on PROD1PC67 with CFR

Pt. 60

44 CFR Ch. I (10–1–07 Edition)

pre-FIRM and post-FIRM flood insurance policies in SFHAs to confirm that
the start of construction or substantial
improvement of insured pre-FIRM
buildings occurred on or before December 31, 1974, and to identify possible
violations of insured post-FIRM buildings. The community will provide to
FEMA a list of insured buildings incorrectly rated as pre-FIRM and a list of
insured post-FIRM buildings that the
community identifies as possible violations.
(5) SFIP endorsement. In the communities that undertake the pilot inspection procedure, all new and renewed
flood insurance policies that become
effective on and after the date that we
and the community establish for the
start of the inspection procedure will
contain an endorsement to the Standard Flood Insurance Policy that an inspection may be necessary before a
subsequent policy renewal [see Part 61,
Appendices A(4), (5), and (6)].
(6) Notice from insurer. For a building
identified as a possible violation under
paragraph (c)(4) of this section, the insurer will send a notice to the policyholder that an inspection is necessary
in order to renew the policy and that
the policyholder must submit a community inspection report as part of the
policy renewal process, which includes
the payment of the premium. The insurer will send this notice about 6
months before the Standard Flood Insurance Policy expires.
(7) Conditions for renewal. If a policyholder receives a notice under paragraph (c)(6) of this section that an inspection is necessary in order to renew
the Standard Flood Insurance Policy
the following conditions apply:
(i) If the policyholder obtains an inspection from the community and the
policyholder sends the community inspection report to the insurer as part
of the renewal process, which includes
the payment of the premium, the insurer will renew the policy and will
verify the flood insurance rate, or
(ii) If the policyholder does not obtain and submit a community inspection report the insurer will not renew
the policy.
(8) Community responsibilities. For insured post-FIRM buildings that the
community inspects and determines to

violate the community’s floodplain
management regulations, the community must demonstrate to FEMA that
the community is undertaking measures to remedy the violation to the
maximum extent possible. Nothing in
this section modifies the community’s
responsibility under the NFIP to enforce floodplain management regulations adequately that meet the minimum requirements in § 60.3 for all new
construction and substantial improvements within the community’s SFHAs.
The community’s responsibility also
includes the insured buildings where
the policyholder did not obtain an inspection report, and non-insured buildings that this procedure does not cover.
(d) Restoration of flood insurance coverage. Insurers will not provide new
flood insurance on any building if a
property owner does not obtain a community inspection report or if the
property owner obtains a community
inspection report but does not submit
the report with the renewal premium
payment. Flood insurance policies sold
on a building ineligible in accordance
with paragraph (c)(6)(ii) of this section
are void under the Standard Flood Insurance Policy inspection endorsements [44 CFR part 61, Appendices
(A)(4), (A)(5), and (A)(6)]. When the
property owner applies for a flood insurance policy and submits a completed community inspection report by
the community with an application
and renewal premium payment, the insurer will issue a flood insurance policy.
(Approved by the Office of Management and
Budget under Control Number 3067–0275)
[65 FR 39748, June 27, 2000, as amended at 67
FR 10633, Mar. 8, 2002]

PART 60—CRITERIA FOR LAND
MANAGEMENT AND USE
Subpart A—Requirements for Flood Plain
Management Regulations
Sec.
60.1 Purpose of subpart.
60.2 Minimum compliance with flood plain
management criteria.
60.3 Flood plain management criteria for
flood-prone areas.
60.4 Flood plain management criteria for
mudslide (i.e., mudflow)-prone areas.

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