Class Assignment: Using the FEMA FIRM Q3 Maps -- A Case Study

Review the Case "Flood Insurance Rate Maps."

-   How should the digital FEMA Flood Maps be used in emergency
    management?

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-   What other layers of information would be useful to a local
    emergency manager in addition to the flood zone?

FEMA Flood Insurance Rate Maps Case Study

Adapted from the "User's Guide to the Q3 Digital Flood Maps," U.S. Flood
Insurance Administration, FEMA, Washington, DC, 1996.

**BACKGROUND**

History of the National Flood Insurance Program

**In response to increasing losses from flood hazards nationwide, the
Congress of the United States passed the National Flood Insurance Act of
1968 which established the National Flood Insurance Program (NFIP). The
1968 Act provided for the availability of flood insurance within
communities that were willing to adopt floodplain management programs to
mitigate future flood losses. The act also required the identification
of all floodplain areas within the United States and the establishment
of flood-risk zones within those areas. As a result of the 1972
Hurricane Agnes flooding along the East coast, the 1968 Act was expanded
by the Flood Disaster Protection Act of 1973. The 1973 act added the
mandatory purchase requirement and increased the awareness of floodplain
mapping needs throughout the country. The responsibility for
administration of the NFIP belongs to the Federal Insurance
Administration of the Federal Emergency Management Agency (FEMA).**

The risk data used to identify floodplain areas, as required by the Act,
are acquired through *flood insurance studies* (FISs). FISs are
hydrologic and hydraulic studies of flood risks, developed by FEMA.
Using the results of a FIS, FEMA prepares a flood insurance rate map
(FIRM) that depicts the spatial extent of *special flood hazard areas*
(SFHAs) and other thematic features related to flood risk assessment.
SFHAs are areas subject to inundation by a flood having a one-percent or
greater probability of being equaled or exceeded during any given year.
This flood, which is referred to as the 1% annual chance flood (or base
flood), is the national standard on which the floodplain management and
insurance requirements of the NFIP are based.

FEMA publishes the FIRM and distributes it to a wide range of users:
private citizens, community officials, insurance agents and brokers,
lending institutions, and other Federal agencies. The FIRM is the basis
for floodplain management, mitigation, and insurance activities of the
NFIP. Uses of the FIRM for insurance activities include enforcement of
the mandatory purchase requirement of the 1973 Act, which "requires the
purchase of flood insurance by property owners who are being assisted by
Federal programs or by Federally supervised, regulated, or insured
agencies or institutions in the acquisition or improvement of land or
facilities located or to be located in identified areas having special
flood hazards" (Section 2(b)(4) of the 1973 Act). In addition to the
identification of SFHAs, the risk zones shown on the FIRMs are the basis
for the establishment of premium rates for flood coverage offered
through the NFIP.

At present, FISs have been completed and FIRMs published for virtually
all communities in the nation having flood risks. Flood risks have been
assessed in approximately 20,400 communities nationwide. These studies,
conducted at a cost of over \$900 million, have resulted in the
publication of over 80,000 individual FIRM panels. Typically, 6 to 8
million FIRMs are distributed to users each year by FEMA. Over 2.5
million flood insurance policies have been written through the NFIP,
providing coverage against flood loss for over \$200 billion in property
nationwide. In addition to initial FISs, FEMA is responsible for
maintaining the FIRMs as communities grow, as new or better scientific
and technical data concerning flood risks becomes available, and as some
FISs become outdated by the construction of flood control projects or
the urbanization of rural watersheds. Several thousand FIRMs need to be
updated per year.

**Flood Data Product History**

Starting with Hurricane Hugo in 1989, FEMA has attempted to support
disaster relief operations with digital FIRMs. Disaster loan closings by
the Small Business Administration (SBA), Temporary Housing Programs, and
Individual Assistance and Family Grant Programs all require a flood
hazard assessment. With automated flood map reading to support these
assessments, significant time can be saved and map reading quality
improved, thus resulting in faster disaster relief for victims. More
recently, increased funding for post-disaster mitigation activities has
led to the extensive use of GIS and digital FIRMs for planning
activities. Applications include selection of sites for relocation,
prioritizing eligibility for home buyout programs, and identifying
repeatedly damaged properties in SFHAs.

To support disaster recovery operations, FEMA has developed
specifications for a digital flood map. The Q3 Flood Data product is
designed to serve FEMA's Response and Recovery activities as well as
flood insurance policy marketing initiatives. This product is designed
to allow rapid access to and distribution of digital FIRM data, and is
compatible with all existing digital FIRM data already available and
underway.

**Digital Flood Map (Q3)**

The Q3 Flood Data do not replace the existing hardcopy FIRM product. The
product has been designed to support planning activities, some Community
Rating System (CRS) activities, insurance marketing, and mortgage
portfolio review. It does not provide base flood elevation information;
thus, it has limited application for engineering analysis, particularly
for site design or rating of flood insurance policies for properties
located within SFHAs.

Q3 Flood Data are not tied to a base map, are not used to produce a new
version of the hardcopy FIRM, and are not subjected to community review.
Q3 Flood Data are intended to provide users with automated flood risk
data suitable for determining whether features are within or outside the
SFHA.

**USE POLICY**

**[Uses of Q3 Flood Data]{.underline}** The Q3 Flood Data are designed
to serve the needs of FEMA both for disaster response activities and for
other National Flood Insurance Program flood insurance activities. The
data are designed to answer basic in/out queries and questions about the
location of the special flood hazard area, but do not provide base flood
elevations. The Q3 Flood Data may be used in various GIS applications
with the caveat that sound judgement must be used in interpreting the Q3
Flood Data. For instance, the Q3 Flood Data may be overlaid on highly
detailed large scale community base mapping data; but, if parcel level
determinations are made, they must be prefaced with information about
the accuracy of the data from which they are derived.

The conversion of FIRMs to a digital format is expected to have many
benefits. However, users must bear in mind that the simple conversion of
FIRMs to a digital format does not inherently improve the engineering
quality of the product. Many of the difficulties with interpretation of
flood risk data, and the requirement for users to apply sound judgement
in methods selected for decision making and map interpretation remain
unchanged. **It should be noted that if a structure is determined to be
within or near the special flood hazard area by using a GIS, this
determination must be confirmed by continuing the printed hardcopy
FIRM.** Q3 Flood Data are not designed to be used for engineering
studies.

**Community Rating System**

For the purposes of the Community Rating System (CRS), Q3 Flood Data may
be used in the following ways:

-   for calculations of SFHA areas and similar applications that require
    geographic calculations and measures;

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-   for partial fulfillment of GIS provisions per the provisions of
    Section 440, "Flood Data Maintenance," as described in the *National
    Flood Insurance Program Community Rating System Coordinator's
    Manual* (Reference 5); and

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-   for development of "notification" lists of potentially flood-prone
    properties, per the provisions of Section 330; and

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-   for partial fulfillment of credits for the performance of flood
    determinations, when performed in conformance with guidelines for
    determination presented below.

**Flood Determinations**

The Q3 Flood Data can support flood determinations in a limited fashion,
in conformance with the "good faith" standard, if used within the
following guidelines:

-   The end user has obtained a source of address or property location
    data and combined it with Q3 Flood Data in a manner that conforms to
    the Standards of Care outlined above.

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-   The end user has made no determinations as to the flood prone status
    of a property that is within 250 feet of an SFHA boundary. This
    requirement is due to the accuracy, resolution, and variations of
    the Q3 Flood Data relative to the source FIRMs.

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-   The end user has verified that the Q3 Flood Data FIRM panel and
    suffix conform to the panel and suffix of the currently effective
    FIRM.

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-   The end user has confirmed the availability of flood insurance in
    the community for which the determination is to be offered.

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-   The end user has confirmed the zone and BFE with the source FIRM or
    DFIRM for properties located within 250 feet of the SFHA boundary or
    within the SFHA.

**The "Good Faith Standard"**

The mandatory flood insurance purchase requirements of the 1973 National
Flood Insurance Act apply only when a structure is located in an SFHA in
a community that is participating in the NFIP. Such a structure must be
insurable under the rules of the NFIP. Even though a portion of the land
parcel upon which the structure is planned or built may be within an
SFHA, the mandatory purchase requirement is triggered only if the
structure itself is within an SFHA.

The compliance of lenders with the mandatory flood insurance purchase
requirements of the 1973 Act is based on the "good faith standard."
Determining whether a structure is located in an area of special flood
hazard requires the examination of the location of the structure in
relationship to the areas of special flood hazard as shown on the
applicable FIRM. The good faith standard recognizes that despite FEMA's
best efforts to make the FIRMs as useful as possible, the descriptions
of SFHA areas, as depicted by some maps, may, in some instances, not be
clear enough to permit lenders to decide with certainty and precision
whether or not property that is the security for a loan or that is the
subject of financial assistance is located in such an area. It is for
this reason that FEMA has recommended a "good faith standard."

The good faith standard requires lenders to exercise "due diligence and
good faith" in determining the location of a property that is the
subject of a loan relative to areas of special flood hazards as shown on
a FIRM. This guidance is further explained, with additional information
on the 1973 Act, in the publication *Mandatory Purchase of Flood
Insurance Guidelines* (Reference 6). When determinations are being made
by lenders, or firms or individuals retained by lenders to assist in
these endeavors, collateral data in addition to the FIRM is frequently
required. FIRMs do not include all roads within communities, nor do they
depict address, property boundary, or structure location information. As
a result, determinations frequently can be made only by using an
ancillary source of data, such as a land parcel map, to determine the
location of a property on the FIRM.

Digital address range data, land parcel, and structure information is
available for many communities across the nation. Using these digital
data and GIS technology, it is possible to make determinations relative
to the 1973 Act and meet the good faith standard. However, the lenders
must assure that due diligence and good faith are exercised in
application of digital mapping systems to make determinations. Because
of both the increased complexity and the analytical capabilities of GIS,
assuring compliance with the good faith standard may require additional
effort relative to use of paper maps.

A prime concern is to assure that the accuracy of the digital base map
and structure location data are appropriate for use with the chosen
digital FIRM data set (DFIRM or Q3 Flood Data) to make determinations
relative to the 1973 Act. The concern for accuracy of the ancillary data
used with DFIRMs should increase in direct proportion to the relative
closeness of the property under analysis to the SFHA boundary. Thus,
lenders might not find it prudent to use digital data at the 1:100,000
scale as the primary source of information upon which to make a
determination regarding a property located within 250 feet of an SFHA.
Such caveats should be carefully considered when U.S. Bureau of the
Census TIGER data are used as the source from which property
determinations will be made.

> In some instances, GIS technology will enable the use of large-scale
> land parcel, topographic, structure, and other information, with
> digital FIRM data to make determinations. GIS technology allows maps
> to be created at any user-specified scale. Enlargement of scales does
> allow for precise determinations to be made. However, precise
> measurements are not inherently accurate. Accuracy can only be
> assessed from an appraisal of the quality of source data.

SFHA boundary information conveyed by Q3 Flood Data files was developed
to overlay USGS 7.5-minute topographic maps at a scale of 1:24,000.
Thus, Q3 Flood Data cannot be assumed to have an accuracy of better than
40 feet. Due to other limitations, FIA recommends that determinations
using GIS technology and Q3 Flood Data generally be made only when
structures are located 250 or more feet outside an SFHA boundary. In
cases where the structure is within 250 feet of the SFHA or inside the
SFHA, data such as the BFE determined from a FIS flood profile and the
surveyed lowest adjacent grade and/or lowest floor elevation should be
used to make a determination.

Prudence may require that a more conservative margin than 250 feet be
used to determine the need for ancillary data to support a GIS
determination. Terrain variations, the nature of flood hazards in the
area, and the quality of all digital data being used to make the
determination should be considered when establishing the need for
collecting survey and flood profile data.

![](media/image1.png){width="6.495833333333334in"
height="5.0152777777777775in"}**Question for the Class:** The FEMA A
flood zones are displayed on the map above. How could the emergency
manager use this type of display in emergency planning or response?

A GIS allows the user to select features in a layer (residents) that
intersect with another layer (A Flood Zone). The attached list of
residents was drawn from the above display using the GIS. The attached
is a list of residents whose homes are in an A Flood Zone. How could the
emergency manager use this list?