44 Cfr 59.24

Federal Emergency Management Agency, DHS
and then selected from this register for
ratemaking studies on the basis of the
following considerations—
(a) Recommendations of State officials;
(b) Location of community and urgency of need for flood insurance;
(c) Population of community and intensity of existing or proposed development of the flood plain, the mudslide
(i.e., mudflow) and the flood-related
erosion area;
(d) Availability of information on the
community with respect to its flood,
mudslide (i.e., mudflow) and flood-related erosion characteristics and previous losses;
(e) Extent of State and local progress
in flood plain, mudslide (i.e., mudflow)
area and flood-related erosion area
management, including adoption of
flood plain management regulations
consistent with related ongoing programs in the area.
[41 FR 46968, Oct. 26, 1976. Redesignated at 44
FR 31177, May 31, 1979]

§ 59.24 Suspension of community eligibility.
(a) A community eligible for the sale
of flood insurance shall be subject to
suspension from the Program for failing to submit copies of adequate flood
plain management regulations meeting
the minimum requirements of paragraphs (b), (c), (d), (e) or (f) of §60.3 or
paragraph (b) of §60.4 or §60.5, within
six months from the date the Administrator provides the data upon which
the flood plain regulations for the applicable paragraph shall be based.
Where there has not been any submission by the community, the Administrator shall notify the community that
90 days remain in the six month period
in order to submit adequate flood plain
management regulations. Where there
has been an inadequate submission, the
Administrator shall notify the community of the specific deficiencies in its
submitted flood plain management regulations and inform the community of
the amount of time remaining within
the six month period. If, subsequently,
copies of adequate flood plain management regulations are not received by
the Administrator, no later than 30
days before the expiration of the original six month period the Administrator

§ 59.24

shall provide written notice to the
community and to the state and assure
publication in the FEDERAL REGISTER
under part 64 of this subchapter of the
community’s loss of eligibility for the
sale of flood insurance, such suspension
to become effective upon the expiration of the six month period. Should
the community remedy the defect and
the Administrator receive copies of
adequate flood plain management regulations within the notice period, the
suspension notice shall be rescinded by
the Administrator. If the Administrator receives notice from the State
that it has enacted adequate flood
plain management regulations for the
community within the notice period,
the suspension notice shall be rescinded by the Administrator. The
community’s eligibility shall remain
terminated after suspension until copies of adequate flood plain management regulations have been received
and approved by the Administrator.
(b) A community eligible for the sale
of flood insurance which fails to adequately enforce flood plain management regulations meeting the minimum requirements set forth in §§ 60.3,
60.4 and/or 60.5 shall be subject to probation. Probation shall represent formal notification to the community
that the Administrator regards the
community’s flood plain management
program as not compliant with NFIP
criteria. Prior to imposing probation,
the Administrator (1) shall inform the
community upon 90 days prior written
notice of the impending probation and
of the specific program deficiencies and
violations relative to the failure to enforce, (2) shall, at least 60 days before
probation is to begin, issue a press release to local media explaining the reasons for and the effects of probation,
and (3) shall, at least 90 days before
probation is to begin, advise all policyholders in the community of the impending probation and the additional
premium that will be charged, as provided in this paragraph, on policies
sold or renewed during the period of
probation. During this 90-day period
the community shall have the opportunity to avoid probation by demonstrating compliance with Program
requirements, or by correcting Program deficiencies and remedying all

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§ 59.24

44 CFR Ch. I (10–1–03 Edition)

violations to the maximum extent possible. If, at the end of the 90-day period,
the Administrator determines that the
community has failed to do so, the probation shall go into effect. Probation
may be continued for up to one year
after the community corrects all Program deficiencies and remedies all violations to the maximum extent possible. Flood insurance may be sold or
renewed in the community while it is
on probation. Where a policy covers
property located in a community
placed on probation on or after October
1, 1986, but prior to October 1, 1992, an
additional premium of $25.00 shall be
charged on each such policy newly
issued or renewed during the one-year
period beginning on the date the community is placed on probation and during any successive one-year periods
that begin prior to October 1, 1992.
Where a community’s probation begins
on or after October 1, 1992, the additional premium described in the preceding sentence shall be $50.00, which
shall also be charged during any successive one-year periods during which
the community remains on probation
for any part thereof. This $50.00 additional premium shall further be
charged during any successive one-year
periods that begin on or after October
1, 1992, where the preceding one-year
probation period began prior to October 1, 1992.
(c) A community eligible for the sale
of flood insurance which fails to adequately enforce its flood plain management regulations meeting the minimum requirements set forth in §§ 60.3,
60.4 and/or 60.5 and does not correct its
Program deficiencies and remedy all
violations to the maximum extent possible in accordance with compliance
deadlines established during a period of
probation shall be subject to suspension of its Program eligibility. Under
such circumstances, the Administrator
shall grant the community 30 days in
which to show cause why it should not
be suspended. The Administrator may
conduct a hearing, written or oral, before commencing suspensive action. If
a community is to be suspended, the
Administrator shall inform it upon 30
days prior written notice and upon
publication in the FEDERAL REGISTER
under part 64 of this subchapter of its

loss of eligibility for the sale of flood
insurance. In the event of impending
suspension, the Administrator shall
issue a press release to the local media
explaining the reasons and effects of
the suspension. The community’s eligibility shall only be reinstated by the
Administrator upon his receipt of a
local legislative or executive measure
reaffirming the community’s formal
intent to adequately enforce the flood
plain management requirements of this
subpart, together with evidence of action taken by the community to correct Program deficiencies and remedy
to the maximum extent possible those
violations which caused the suspension. In certain cases, the Administrator, in order to evaluate the community’s performance under the terms
of its submission, may withhold reinstatement for a period not to exceed
one year from the date of his receipt of
the satisfactory submission or place
the community on probation as provided for in paragraph (b) of this section.
(d) A community eligible for the sale
of flood insurance which repeals its
flood plain management regulations,
allows its regulations to lapse, or
amends its regulations so that they no
longer meet the minimum requirements set forth in §§ 60.3, 60.4 and/or
60.5 shall be suspended from the Program. If a community is to be suspended, the Administrator shall inform
it upon 30 days prior written notice and
upon publication in the FEDERAL REGISTER under part 64 of this subchapter
of its loss of eligibility for the sale of
flood insurance. The community eligibility shall remain terminated after
suspension until copies of adequate
flood plain management regulations
have been received and approved by the
Administrator.
(e) A community eligible for the sale
of flood insurance may withdraw from
the Program by submitting to the Administrator a copy of a legislative action that explicitly states its desire to
withdraw from the National Flood Insurance Program. Upon receipt of a
certified copy of a final legislative action, the Administrator shall withdraw
the community from the Program and
publish in the FEDERAL REGISTER under

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Federal Emergency Management Agency, DHS
part 64 of this subchapter its loss of eligibility for the sale of flood insurance.
A community that has withdrawn from
the Program may be reinstated if its
submits the application materials specified in § 59.22(a).
(f) If during a period of ineligibility
under paragraphs (a), (d), or (e) of this
section, a community has permitted
actions to take place that have aggravated existing flood plain, mudslide
(i.e., mudflow) and/or flood related erosion hazards, the Administrator may
withhold reinstatement until the community submits evidence that it has
taken action to remedy to the maximum extent possible the increased
hazards. The Administrator may also
place the reinstated community on
probation as provided for in paragraph
(b) of this section.
(g) The Administrator shall promptly
notify the servicing company and any
insurers issuing flood insurance pursuant to an arrangement with the Administrator of those communities
whose eligibility has been suspended or
which have withdrawn from the program. Flood insurance shall not be sold
or renewed in those communities. Policies sold or renewed within a community during a period of ineligibility are
deemed to be voidable by the Administrator whether or not the parties to
sale or renewal had actual notice of the
ineligibility.
[41 FR 46968, Oct. 26, 1976. Redesignated at 44
FR 31177, May 31, 1979, and amended at 48 FR
44543 and 44552, Sept. 29, 1983; 49 FR 4751, Feb.
8, 1984; 50 FR 36023, Sept. 4, 1985; 57 FR 19540,
May 7, 1992; 59 FR 53598, Oct. 25, 1994; 62 FR
55715, Oct. 27, 1997]

Subpart C—Pilot Inspection
Program
§ 59.30 A pilot inspection procedure.
(a) Purpose. This section sets forth
the criteria for implementing a pilot
inspection procedure in Monroe County
and the Village of Islamorada, Florida.
Areas within Monroe County that become communities by incorporating on
or after January 1, 1999, are required to
implement the pilot inspection procedure as a condition of participating in
the NIP. The criteria will also be used
to implement the pilot inspection procedure in these communities. The pur-

§ 59.30

pose of this inspection procedure is to
provide the communities participating
in the pilot inspection procedure with
an additional means to identify whether structures built in Special Flood
Hazard Areas (SFHAs) after the effective date of the initial Flood Insurance
Rate Map (FIRM) comply with the
community’s floodplain management
regulations. The pilot inspection procedure will also assist FEMA in verifying
that structures insured under the National Flood Insurance Program’s
Standard Flood Insurance Policy are
properly rated. FEMA will publish notices in the FEDERAL REGISTER when
communities in Monroe County incorporate, agree to implement the pilot
inspection procedure, and become eligible for the sale of flood insurance.
(b) Procedures and requirements for implementation. Each community must establish procedures and requirements
for implementing the pilot inspection
procedure consistent with the criteria
established in this section.
(c) Inspection procedure—(1) Starting
and termination dates. The Associate Director for Mitigation and the Federal
Insurance Administrator will establish
the starting date and the termination
date for implementing the pilot inspection procedure upon the recommendation of the Regional Director. The Regional Director will consult with each
community.
(2) Extension. The Associate Director
for Mitigation and the Federal Insurance Administrator may extend the
implementation of the inspection procedure with a new termination date
upon the recommendation of the Regional Director. The Regional Director
will consult with the community. An
extension will be granted based on good
cause.
(3) Notices. Before the starting date of
the inspection procedure, each community must publish a notice in a prominent local newspaper and publish other
notices as appropriate. The Associate
Director for Mitigation and the Federal
Insurance Administrator will publish a
notice in the FEDERAL REGISTER that
the community will undertake an inspection procedure. Published notices
will include the purpose for implementing the inspection procedure and

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