On April 23, 2024, HUD released a “final rule” that updated their regulations for managing floodplains and protecting wetlands to incorporate the Federal Flood Risk Management Standard (FFRMS).
This standard aims to make HUD-funded projects more resilient to climate change and natural disasters. It allows greater flexibility in using HUD assistance in flood-prone areas under certain conditions.
The compliance deadline for most provisions is June 24, 2024, with specific exceptions for new construction and certain HUD programs, which have later deadlines in 2025. These changes aim to enhance project resilience and environmental protection across HUD-assisted initiatives.
Key changes include:
- Projects Must Comply with Elevated Standards:
CDBG-DR and CDBG-MIT projects will need to comply with the elevated standards set by the FFRMS, ensuring structures are built or retrofitted to withstand higher flood risks. - Enhanced Climate-Informed Planning Will Be Needed:
Project planning and design will need to incorporate climate-informed science to assess and mitigate flood risks accurately, potentially leading to changes in site selection and project design. - Increased Focus on Environmental Justice:
The rule emphasizes the need to consider the environmental justice impact of HUD’s actions. Projects should ensure they address the needs of underserved communities disproportionately affected by climate change. - Increased Costs and Funding Needs:
The higher construction standards and additional floodproofing measures may increase project costs, necessitating more detailed budgeting and possibly additional funding. - Long-Term Benefits:
Despite potential increased upfront costs, these measures will likely reduce long-term maintenance and repair costs due to enhanced resilience against future floods. Additionally, lower flood insurance rates can improve affordability and sustainability for low- to moderate-income housing.
The FFRMS “final rule” introduces critical changes to how CDBG-DR and CDBG-MIT projects must approach floodplain management and climate resilience, aiming to protect federal investments, enhance community resilience, and ensure long-term sustainability amidst increasing climate risks. Grantees must adapt their planning, design, and construction practices to comply with these new requirements, potentially leading to increased costs but offering benefits like reduced insurance premiums and greater project durability. Overall, this rule aligns with HUD’s goals of creating sustainable, resilient, and inclusive communities by incorporating forward-looking flood risk assessments and mitigation strategies into project planning and execution.
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About the author
Michael Chua is a senior manager in HORNE’s government services group where he serves as a subject matter expert for HORNE’s disaster recovery and mitigation portfolio. He provides technical advisory services to both clients and the firm’s program teams regarding policies, regulations, program design and implementation, monitoring and compliance and many other areas related to federal grant implementation, to help our clients achieve impactful recovery.
