Some prohibit buildings or residences in certain areas, such as a floodplain or conservation zone. In these communities, substantially damaged buildings would not be allowed to be rebuilt unless they are relocated. The homeowners' decisions to flood proof and the type of flood proofing systems they choose are directly related to their financial condition. This is very evident after a flood when the need for flood proofing is more pronounced and when the homeowners' interest levels are high, but also when they are in a difficult financial position. In many cases, availability of financial assistance makes the difference as to whether a property will be flood proofed.
Financial assistance can come in a variety of forms.
For example, local governments could use property tax incentives to encourage flood proofing. Most financial assistance programs provide low interest loans and grants. Generally, grants are limited to lower income families. Usually, the owner must show that flood proofing is related to the program's primary concerns of rebuilding after a disaster, improving housing, or preserving or increasing employment opportunities. The greatest degree of government involvement is in the construction of public flood proofing projects.