Cape Coral Mayor John Gunter

FEMA’s announcement that it will pause a decision that would result in the loss a 25% discount for most flood insurance policy holders in Lee County was welcomed by local officials Tuesday.

“Late Monday afternoon, FEMA advised Cape Coral city leaders that they are allowing us 30 days to clarify any factual misunderstandings and submit new information related to deficiencies identified by FEMA,” Cape Coral Mayor John Gunter said. “This is a positive step forward, and we’re committed to making the most of this opportunity to advocate for our community. Our immediate focus is to continue engaging with FEMA to ensure we receive clear direction on what efforts they want to see over the next 30 days. We’ll be working closely with FEMA to address their concerns and provide any necessary information to potentially change their decision. It’s our hope that through this collaborative effort, FEMA will reconsider their decision and allow the city to maintain its hard-earned CRS rating of 5.”

Last week, the Federal Emergency Management Agency notified Lee County and four of its municipalities, including Cape Coral and Fort Myers Beach, that it was “retrograding” their Community Rating System class from a 5 to a 10, thereby removing benefits residents receive for their National Flood Insurance Program policies.

The decision meant that come October, policy holders in the unincorporated areas of the county, as well as in the designated municipalities, not only would lose the 25% discount, but not receive any discount at all.

The 30-day “pause” on that noticed action was announced Monday.

“We are committed to helping communities take appropriate remediation actions to participate in the Community Rating System and remain in good standing with the National Flood Insurance Program,” FEMA said in a release. “Each of the five communities will have an additional 30 days to gather requested documentation to help retain their standing in the Community Rating System.”

Lee County has begun its efforts, officials said Tuesday, adding a joint meeting was held with FEMA officials Monday afternoon.

“Lee County Manager Dave Harner and city managers from impacted municipalities — Bonita Springs, Cape Coral, the Town of Fort Myers Beach and the Village of Estero — met with FEMA representatives late Monday,” the county said in a release.

“The county will work with its partners at FEMA during a 30-day extension period, which was granted in the just-received letter.”

The county also is working to retain its long-established rating.

“The Lee Board of County Commissioners is committed to retaining the Community Rating System (CRS) rating of 5 to maintain the discount available to residents with National Flood Insurance Program policies,” the release states, adding the county is preparing to add ongoing updates for the public to its website, leegov.com.

“In its commitment to transparency, Lee County soon will launch a landing page dedicated to this issue. Visitors to the site will be able to review publicly available documentation and other information,” the release states.

The city of Cape Coral released last week a detailed report and timeline of its recovery efforts and its interactions with FEMA. The report may be found at capecoral.gov.

“Throughout this process, we’ll remain transparent with our community about developments and actions being taken,” Gunter said. “Documents and information on this topic (are) available on our website. I want to assure our residents that the City of Cape Coral is committed to doing everything in our power to mitigate any potential impacts on flood insurance rates.”

In retrograding the rating, FEMA cited “the large amount of unpermitted work, lack of documentation, and failure to properly monitor activity in special flood hazard areas, including substantial damage compliance.”

Lee County, Cape Coral and Fort Myers Beach officials all contested the findings, saying their respective staffs have been working closely with FEMA since Hurricane Ian, a Category 5 hurricane that in September 2022 inflicted billions of dollars in damages throughout Southwest Florida.

County and city officials also called out the agency’s methodology and processes, saying most of the issues raised had been resolved to FEMA’s satisfaction and that the issues remaining were being addressed or still being investigated.

Congressman Byron Donalds, joined by U.S. Rep. Greg Steube, and U.S senators Rick Scott and Marco Rubio, wrote a letter to FEMA Administrator Deanne Criswell last week that urged a reversal of FEMA’s decision to “retrograde” the rating to a 10, the lowest possible, offering no reduction in premiums at all.