Presenter: James D. Nadeau P.L.S., C.F.M., C.F.S. Session 1: 8:45-10:00 AM Mortgage Loan Inspections vs. Boundary Surveys Session 2: 1:30-3:00 PM Understanding Flood Zones

Session 1: 8:45 – 10:00 AM Mortgage Loan Inspections vs. Boundary Surveys Differences between MLIs and Boundary Surveys Common misconceptions about their use Breakdown of a Boundary Survey

MLIs vs. Boundary Surveys What they do Mortgage Loan InspectionsBoundary Surveys Determine if dwelling or on-site improvements are in compliance with municipal/local building set back requirements at the time of construction. Determine if on-site improvements used as loan collateral, horizontally scale in or out of a Special Flood Hazard Area (SHFA), according to FEMA’s Flood Insurance Rate Maps (FIRMS). Determine a parcel’s property lines based on original record documents which created the parcel & abutting parcels. Show property/lot corners, record rights of way and easements, encroachments, applicable appurtenances, lines of occupation, and area.

MLIs vs. Boundary Surveys How determinations are made Mortgage Loan InspectionsBoundary Surveys Use the current locus parcel reference Horizontal scaling of Flood Insurance Rate Maps indicate initial flood risk elevation. Determine applicable operative deeds of the locus parcel and pertinent abutters, to create a chain of title to determine junior/senior rights, original sequencing, and original called for monumentation.

Inspections vs. Surveys Definitions from Black’s Law Dictionary, 6 th edition InspectionSurveys To examine, scrutinize, investigate, look into, check over, or view for … The process by which a parcel of land is measured and …

MLI Sketch They’re called “Inspections” for a reason No evidence is shown No records research performed Measurements not necessarily performed Determination is made by provided deed or reference from the title company, Realtor, or lending institution

Boundary Survey Research to determine order of lot sequence Identify evidence in operative documents Perform accurate measurements Perform precise computations Document preparation

MLIs vs. Boundary Surveys Who should use them Mortgage Loan InspectionsBoundary Surveys Lenders, title companies, and title insurance companies representing a mortgage transaction, and investors. NOT for private homeowner use. NOT for contractor use. Homeowners, business owners, planners, developers, engineers, architects, and other design professionals.

MLIs vs. Boundary Surveys How they are used Mortgage Loan InspectionsBoundary Surveys Used as tools for understanding and determining loan investment risk. The title insurer will provide coverage for the lender (not for the homeowner). Findings are not recorded at county registries of deeds. Used to identify property/lot corners Calculate accurate area for parcel Create metes and bounds descriptions Create a Surveyor’s report Generate final plans that meet county registry recording requirements

Mortgage Loan Inspection should ONLY be used for these 2 things: Determine if dwelling (improvements to be used as collateral) was in compliance with municipal setback requirements at the time of construction. Determine if dwelling is located within a Special Flood Hazard Area, based solely on horizontal scaling, no elevations are used.

Statements often found on a Mortgage Loan Inspection, qualifying the product

Mortgage Loan Inspections Common Misconceptions A Mortgage Loan Inspection has never been called a Class D Survey. A Class D Survey pertains to Positional Accuracy of Field Measurements. Also called a plot plan, site plan, mortgage survey. Closing statement

Mortgage Loan Inspections MLIs SHOULD NOT be used for: Land Divisions/Subdivisions Land Feasibility Acreage Calculations Site Plans Building Permits

Mortgage Loan Inspections MLIs DO NOT identify: Deed overlaps Junior/Senior rights Easements and Rights of Way not in current deed Any land conveyance not in current deed Typographical errors in current deed Encroachments Original boundary evidence

POP QUIZ 2! Q: What is the area of a 100' x 200' parcel of land?

POP QUIZ! Answer…

Boundary Surveys The Breakdown

Boundary Surveys Private & Public Records Research Collect information NOT recorded at the Registry of Deeds Municipal offices Abutters Other land surveyors Registry of Probate County commissioner’s office State agencies Historical societies

Boundary Surveys Registry Research Perform chains of title at registry of deeds Determine: Sequence of conveyance Original called for boundary line or corner evidence Easements/rights of way Typographical errors

Worksheet that identifies the various record calls along each boundary line Original deed used to identify the intent of the original grantor Evidence found relative to locative information within the deeds Differing surveyor opinions Boundary Surveys Preparation of Deed Sketch

Boundary Surveys Chain of Title

Locus Chain of Title for our office Present: Portland : Deering : Westbrook Pre – 1814: Falmouth From 1814 – 1820 Westbrook was part of Massachusetts Prior to 1760 records would be located in York County. Cumberland County was not established until November 1, Also, both counties were still within the boundaries of Massachusetts until 1820.

Significant Dates in Cumberland County History Portland was part of Falmouth until Yarmouth was part of North Yarmouth until Scarborough - July 14, 1658 Falmouth - November 12, 1718 North Yarmouth Brunswick - January 26, 1739 Harpswell - January 25, 1758 Cumberland County - November 1, 1760 Lincoln County - November 1, 1760 Windham - June 12, 1762 Gorham - October 30, 1764 Cape Elizabeth - November 1, 1765

Deed Sketch

Boundary Surveys Field Recon & Instrument Location Using the deed sketch, we field locate all applicable boundary evidence, improvements, and lines of occupation (tree lines, fences, stone walls). Not uncommon to find occupation lines and record lines to be in different locations.

Boundary Surveys Data Entry/Office Computations Review, validate, and verify data for mathematical accuracy Can now determine acreage, encroachments, boundary corner locations, easements, rights of way, etc. Determine deed excess and deficiency We create our professional opinion

Boundary Surveys Preparation of Final Plan Depicts all rendered services, final findings, and recommendations. Should hold up to professional scrutiny in a discussion or dispute. Product is prepared in compliance with State requirements.

Boundary Surveys Mark Property Corners Return to site to mark boundary corners and lines with steel rebar and survey caps. Provides notice to abutters and future surveyors that the parcel was formally surveyed. Other monuments can be placed as requested.

Summary of Key Points Mortgage Loan Inspections are only to be used to determine investment risk in mortgage loan transactions. Any determinations made based on accurate measuring of the land would require a formal land survey. Permits made for development projects should never be based on an Mortgage Loan Inspection Plan.

Any Questions?

Presenter: James D. Nadeau P.L.S., C.F.M., C.F.S. Session 1: 8:45-10:00 AM Mortgage Loan Inspections vs. Boundary Surveys Session 2: 1:30-3:00 PM Understanding Flood Zones

Session 2: 1:30 – 3:00 PM Understanding Flood Zones History and purpose of the National Flood Insurance Program Creation of the flood zone Flood Insurance Rate Maps & their inconsistencies Flood zone determinations & the appeals process

We will not cover the following topics in great detail: Elevation Certificates Formal submissions Insurance Community Rating System Creating elevations from flood studies Substantial improvement and damage Hazard mitigation Regulatory and administrative measures But we are happy to provide more information at another time.

Evolution of the National Flood Insurance Program During the early years of flood insurance provided by private industry, rates were too high because it was optional. Data collected in the early to mid- 1900’s indicated most of the major flood disasters in previous decades were the result of urban expansion in flood zone areas, with little regard for the natural resource. Traditionally, governments tried to keep water away from the people by constructing dams, levees, etc., but this was inadequate. NEW STRATEGY: Keep the people away from the water!

1953: Tennessee Valley Authority initiates first floodplain regulations Objectives: Assure the retention of the required floodway areas without raising flood heights Encourage sound land use in the floodplain, consistent with flood hazard and community land use needs Initial approach: “Zero” flood height increase across the entire floodplain Not very practical! Expanded regulation in a way that couldn’t address: individual existing uses development needs social, economic, and natural benefits private property rights, etc.

In an effort to gain approval and funding… The Flood Insurance Administration (part of the U.S. Dept. of Housing and Urban Development) negotiated a compromise to satisfy Congress. Engineered models of a floodway often show an area larger than those depicted on the flood maps due to the “no rise” strategy. They achieved a smaller floodway width by squeezing the model to a point that a one foot rise at any point within the channel would occur.

1968: Congress passed the National Flood Insurance Act, creating the National Flood Insurance Program Program would: Provide flood insurance coverage not generally available in the public market Stimulate local floodplain management to guide future development Emphasize less costly nonstructural flood control regulatory measures Reduce Federal disaster costs by shifting burden from general taxpayer to floodplain occupants

1973: Flood Disaster Protection Act Lending institutions cannot make, increase, extend, or renew a loan for a building in the floodplain without NFIP flood insurance. It is the responsibility of the lender to: Determine if the property is in a Special Flood Hazard Area (SFHA) Document the determination Ensure the insurance is maintained through the life of the loan

1994: National Flood Insurance Reform Act Increased the maximum amount of flood insurance coverage Establish a grant program for mitigation plans and projects Enacted stricter penalties on lenders to comply 5 year visit by FEMA to communities Increased Cost of Compliance

The NFIP’s approach was based on the rational of selecting a minimum criterion (no more than one foot) to designate a floodway, that would be a compromise between prohibiting encroachments into the floodplain, while permitting economical land use and protection from unreasonable invasion of private and public rights.

Base Flood Elevation (BFE) The height above sea level to which flood water would be expected to rise in a base, or 100 year flood event. 100 year flood 1 % annual chance of being equaled or exceeded in a given year 100 year flood has a 26% chance of occurring over the life of a 30-year mortgage loan

The Floodway Floodway: the main channel of a watercourse, including adjacent floodplains necessary to carry the selected flood without increasing flood elevations significantly. No development is permitted in the floodway, unless a licensed engineer can certify through scientific analysis that it will cause “no rise” to the BFE.

The Effects of Fill on the Floodway

Oppositions Officials from various states felt that “no more than one foot rise” was not an effective criterion. Did not take into account: Terrain topography Stream slope and side slope Upstream watershed development Hydrology, hydraulics, water velocities, water depth Ecological and environmental conditions Economic and societal considerations Degree of acceptance of land use regulations State and federal statutes and criteria Vegetation loss, impervious surfaces Bridges, ice blocks, improper fill

Base Flood Elevation Insurance - used as an accurate numerical value for determining flood risk. Regulation – used as an accurate numerical value for permit approvals. Design or planning – should only be used as an approximate or predicted elevation.

NFIP Basic Parts Insurance Maps Regulations

Permissible Rise Permissible rise in flood elevation is based on the assumption that the floodway fringe is completely filled with structures or earth fill to the elevation of the selected flood, or is closed off by a wall so flood waters have to pass down the floodway in the floodway model. In real conditions, the walls do not exist and flood water will impact the floodway fringe on both sides of the floodway.

Special Flood Hazard Areas (SFHA) FEMA-identified high-risk flood area where flood insurance is mandatory for property owners. These areas have special flood, mudflow, or flood-related erosion hazards Shown on a Flood Hazard Boundary Map or a Flood Insurance Rate Map (FIRM) as being in an A Zone or V Zone (coastal flood zones)

A Zones AE - An area inundated by 100-year flooding, for which BFEs have been determined. A - An area inundated by 100 year flooding, for which no BFEs have been established. AH - An area inundated by 100-year flooding (usually an area of ponding), for which BFEs have been determined; flood depths range from 1 to 3 feet. AO - An area inundated by 100-year flooding (usually sheet flow on sloping terrain), for which average depths have been determined; flood depths range from 1 to 3 feet. A99 - An area inundated by 100-year flooding, for which no BFEs have been determined. This is an area to be protected from the 100- year flood by a Federal flood protection system under construction. AR - An area inundated by flooding, for which BFEs or average depths have been determined.

V Zones VE - An area inundated by 100-year flooding with velocity hazard (wave action); BFEs have been determined. V - An area inundated by 100-year flooding with velocity hazard (wave action); no BFEs have been determined. VO - An area inundated by 100-year flooding with velocity hazard (wave action); no BFEs have been determined.

Coastal Flood Zones

Other Flood Zones Zone B: 500-year flooding; or 100-year flooding with ave. depths of < 1 ft. or with drainages less than 1 sq. mi., or protection from levees Zone C: outside of 100- and 500-year floodplains Zone X: outside of the 100- and 500-year floodplains

Flood Determinations What is a Flood Determination? An official declaration stating whether or not a property lies within a Special Flood Hazard Area Generally referred to as a “Flood Certificate” Certificate that protects investors and borrowers by ensuring flood insurance is purchased for properties in at- risk areas Uses Horizontal scaling only, no elevations! Who uses Flood Determinations? Any federally-regulated lender or government-sponsored enterprise is required to perform a flood zone determination for any mortgage loan they provide

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Plotting a House: Google Earth estimate

Plotting on the Flood Map Names of streets may differ Not all streets are shown Some shown incorrectly 1345+/ /-

Challenges with Flood Zone Determinations Flood Insurance Rate Maps (FIRMs) aren’t perfect. Mapping errors can lead to: Incorrect determinations Conflicting data Maps are outdated Watershed is constantly changing The NFIP understands that these errors exist. Any flood determination can be disputed.

Falmouth GIS

Westbrook Flood Map Arrows show actual water course

Veteran’s Bridge

DFIRMPaper FIRM

FIRMS & DFIRMS Paper vs. Digital Flood Maps The transition could change flood risk & insurance rates. “New maps” will still have “old data” in most cases, and can still have errors. Fewer paper copies are being made available to communities, and not all communities have been supplied with digital maps. The datum, not the data, may have changed. The paper maps are on NGVD 1929 and the new digital maps are on NAVD 1988, which in the Portland area is a 7/10’ difference in elevation.

Disputing Flood Zone Determinations Property owner most prove map error using technical data Obtain a NFIP Elevation Certificate through a professional land surveyor, who will submit application to FEMA to request Letter of Determination Review (LODR) Letter of Map Amendment (LOMA) Letter of Map Revision (LOMR)

NFIP Elevation Certificate Completed by land surveyor to get vertical scaling data. Record elevation of lowest floor of a building. Expiration date on form: March 31, 2012 (still acceptable) Does NOT waive mandatory flood insurance. Only approved LOMAs and LOMRs can amend the FIRM and remove the requirement.

As-Built Elevation Certificates Findings of the NFIP’s Community Assistance Visits have indicated that many communities do not secure as-built certifications of lowest floor elevation. Elevation documentation based on plans and drawings is insufficient to assure that the lowest floor of the structure has indeed been built above the BFE.

Standard Flood Hazard Determination Form (SFHDF) Lender requests determination from a private company (if not already provided through a mortgage loan inspection) Note “Preparer’s Information” at the bottom. This is NOT a determination made by FEMA. Private Company

Letter of Map Amendment Determination Document (Removal) FEMA approved removal of property out of the SFHA Case Number and “LOMA” in top right corner Signed by FEMA Director

Letter of Map Amendment Determination Document (Non-Removal) FEMA denied removal of property out of the SHFA (mandatory flood insurance is required) Case Number and “LOMA-DEN” in top right corner Signed by a FEMA director

Freeboard Freeboard is a factor of safety usually expressed in feet above a flood level for purposes of floodplain management. Compensates for the many unknown factors that could contribute to flood heights greater than the height calculated for a selected size flood and floodway conditions Not required by NFIP standards, but communities are encouraged to adopt at least a one-foot freeboard to account for the one-foot rise built into the concept of designating a floodway and the encroachment requirements where floodways have not been designated. Results in significantly lower flood insurance rates due to lower flood risk.

Require development permits, review them carefully for each site. Require residential structures to have the lowest floor (including basement) elevated at least to or above the Base Flood Elevation. (One foot ABOVE the BFE for non-residential). But remember, Maine has freeboard, which requires an additional foot. Require manufactured homes to be elevated and anchored. Assure flood carrying capacity of altered or relocated watercourses is maintained. Maintain records of all development permits. Verify and document 1 st floor elevations of new or substantially improved structures.

Maintain adequate records to assure elevations are adequately communicated prior to construction projects. Encourage permits for “Other Development” such as mining, drilling, filling, grading, paving, etc. in flood hazard areas. Secure As-Built Elevation Certificates of the lowest floor elevation. Floodway encroachments are prohibited unless an engineered no-rise analysis is done. If a watercourse is altered, it is required to notify adjacent communities, the State Coordinating Agency and FEMA.

Any Questions?

Pre-FIRM & Post-FIRM Pre-FIRM Post-FIRM Built before detailed flood hazard data and flood elevations were provided to the community and usually before the community enacted comprehensive regulations on floodplain regulation. Can be insured using "subsidized" rates. Designed to help people afford flood insurance even though their buildings were not built with flood protection in mind. New construction and those built after the effective date of the first FIRM for a community. Insurance rates for Post-FIRM buildings are dependent on the elevation of the lowest floor in relation to the Base Flood Elevation (BFE).

Pre-FIRM & Post-FIRM Structures REMEMBER: one portion of a dwelling could be Pre-Firm and another could be Post-Firm.

Build dates can also effect insurance rates Pre-FIRM: built before the effective date of the community’s first FIRM Post-FIRM: built after initial FIRM, OR after 12/31/74, whichever is later The map says: “Flood insurance not available for structures newly built or substantially improved on and after Oct. 1, 1983 in designated coastal barriers.”

Insurance Impacts Mapped “In” Flood risk increased More structures in floodplain Mandatory purchase of flood insurance Mapped “Out” Flood risk reduced Risk not eliminated Low-cost preferred risk coverage available

Putting it into perspective… Pre-FIRM AE Zone (No Grandfather) $2235 Post-FIRM +1 AE Zone (No Grandfather) $819 Post-FIRM -1AE Zone (No Grandfather) $5623 Standard X Zone$1439 PRP Premium (PRP Extension) $343 Single Family One Floor No Basement No Prior Flood Losses

Grandfathering Allows a property owner to: “Lock in” a previous Flood Zone “Lock” in a previous Base Flood Elevation Allows premium benefits after: Changes in map zones Changes to compliance issues