Council schedules public workshop on BFE+2 rule after flood-insurance rerating concerns

Councilmember Salvatore Altieri asked the Town Council of the Town of Indian River Shores to hold a publicly noticed workshop to revisit Ordinance 558, which incorporates a finished floor elevation (FFE) standard of two feet above base flood elevation (BFE).

Altieri said his January 21 memorandum, circulated to council and staff, lays out concerns about the ordinance’s financial impact on homeowners, developers and contractors and how recent federal re-rating of flood insurance ("Equity in Action") could multiply premiums. "There are 9,913 FEMA policies in ZIP code 32963," Altieri said; "8,903 of those policyholders will definitely face drastic premium increases over the next five years," and he said many current policyholders who now pay about $900 to $1,300 annually could pay closer to $5,000 a year after the re-rating. He added that newly developed lots could face NFIP premiums exceeding $10,000.

Town staff and the building official told council that the percentage of existing properties likely to be affected by the ordinance is ‘‘very low’’ for typical additions and renovations, and that new homes must comply with the current elevation standards. The building official also noted that Florida building code requires one foot of freeboard and that the 50% substantial-improvement rule under the National Flood Insurance Program (NFIP) still applies regardless of local freeboard ordinances.

Councilmembers discussed the tradeoffs between local resiliency standards and the cost burden on property owners. Mayor Foley and others said they wanted more technical information and stakeholder input before taking any legislative action. The council did not amend the ordinance at the meeting; instead members agreed to hold a public workshop later in the spring so the town can gather input from affected stakeholders including contractors, developers, architects and real-estate professionals, and to monitor pending regulatory changes at the federal level before finalizing any change to the local code.

Town Manager Hartbrink said staff has held internal meetings since Altieri’s memo and will propose several dates to coordinate the workshop with council availability. Altieri said he would invite community members who raised concerns and representatives of relevant trades to participate.

Why this matters: The local freeboard requirement is tied to the town’s Community Rating System points and to private flood-insurance costs. Changes to FFE requirements can alter construction costs, insurance premiums and long-term affordability and resiliency for homeowners and small-scale building projects on the island.

Next steps: Town staff will offer proposed dates later in the spring, and the council expects a publicly noticed workshop open to community comment.