FEMA gives Lee County a chance to save flood insurance discounts after push back

FEMA announced a 30-day pause to planned actions that would slash discounts to many municipalities' flood insurance to allow affected Southwest Florida communities to keep their status.

"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," FEMA spokesperson Lea Crager said in an email statement. "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."

Lee County officials could not comment on the announcement as it had not received an official message from the agency as of 3 p.m. Monday.

FEMA's prior announcement spurred condemnation

At the end of March, the agency announced that Lee County and municipalities of Cape Coral, Bonita Springs, Village of Estero, Town of Fort Myers Beach, and unincorporated Lee County; a total of 699,000 residents, would experience cuts to discounts that allow residents to save 25% on National Flood Insurance Program (NFIP) premiums.

Two Lee County municipalities, Sanibel and the city of Fort Myers, are not impacted by the decision.

The change was scheduled to go into effect on Oct. 1.

FEMA's communications team previously stated that the lowered class ratings and subsequent discount loss were due to "the large amount of unpermitted work, lack of documentation, and failure to properly monitor activity in special flood hazard areas, including substantial damage compliance," since Hurricane Ian hit the area on Sept. 28, 2022.

Lee County and Cape Coral officials pushed back against the claims and said that at no time did the agency say they could lose their discount.

Original annoucementFEMA slashes 25% flood insurance discount in Lee County, blames unpermitted construction

Recent CoverageMad about FEMA cutting your flood insurance discount? Byron Donalds and Rick Scott step in

Lee residents could lose millions if not resolved

The NFIP conducts a field visit every three years to audit floodplain management activities and flood-mapping records. Municipality governments then receive a rating from the Class Rating System program.

County and municipal governments have to meet federal guidelines for area homeowners to qualify for policies under the National Flood Insurance Program.

The Class Rating System is a voluntary federal program that recognizes and encourages community floodplain management activities exceeding the minimum NFIP standards by providing incentive premium discounts.

The discounts are given out in 5% increments using a 1-10 rating system, with Class 10 being low and Class 1 being high.

Cape Coral could lose between $7 million to $8 million in annual discounts if the changes go through.