For Immediate Release – September 9, 2008

The City of Salem in conjunction with Congressman Bob Goodlatte (R‐6th) announced today
that the city will receive $821,365.20 from FEMA through the Federal Emergency Management Agency’s “Severe Repetitive Loss” program in order to purchase properties from its citizens that have been damaged by flood waters.

“I am pleased to announce that the City of Salem has been selected to receive this critical funding from FEMA,” says Rep. Goodlatte. “This grant will enable the city to purchase flood-prone properties along the Roanoke River, ensuring the future safety of the citizens of Salem while also preserving the beauty of the city.”

The purpose of this program is to recognize homes that not only have been flooded on numerous occasions in the past, but are likely to suffer similar damages in the future.

“We appreciate Congressman Goodlatte’s assistance and FEMA’s foresight in allowing communities to remove flood prone structures efore they are flooded again,” says Salem City Manager Kevin Boggess.

A property must be covered by a National Flood Insurance Program flood insurance policy and the home’s owner must have filed several claims to cover damages, and met certain FEMA guidelines to fall under this program.

The NFIP originally identified 21 structures in the City of Salem on the Severe Repetitive Loss list and nine of those structures were single-family residential properties. The City of Salem contacted the nine property owners identified on the list and six elected to participate in the SRL pilot prgram. Acquiring and removing at-risk property through mitigation ensures the citizen’s safety from future flooding, creates a perpetual green space which enhances the environment and allows the city to preserve and present the real property value to the homeowners instead of them continuing to suffer losses due to multiple floods.

The definition of severe repetitive loss as applied to this program was established in section 1361A of the National Flood Insuance Act, as amended (NFIA), 42 U.S.C. 4102a. An SRL property is defined as a residential property that is covered under an NFIP flood insurance policy and: (a) That has at least four NFIP claim payments (including building and contents) over $5,000 each, and the cumulative amount of such claims payments exceeds $20,000; or (b) For which at least two separate claims payments (building payments only) have been made with the cumulative amount of the building portion of such claims exceeding the market value of the building. Participation in this program is voluntary.

The Severe Repetitive Loss program differs from other FEMA mitigation grant programs in that those property owners who decline offers of mitigation assistance will be subject to increases in their insurance premium rates.