FEMA Bulletin Week of January 8, 2018

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January 8, 2018

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In this Edition:

Important Dates & Deadlines 

January 23

Tribal Mitigation Plan Review Guide Webinar

February 2

Fiscal Year 2017 Assistance to Firefighters Grant Program Application Deadline

National Flood Insurance Program 2018 Reinsurance Placement Update

FEMA’s National Flood Insurance Program (NFIP) has experienced many large flood disasters over its history, particularly in 2005, 2008, 2012, and 2017. As a result of these flood disasters, the cost of flood policy claims has far exceeded the NFIP’s premium revenues, and in turn, the NFIP has incurred a debt to the U.S. Treasury. As of December 31, 2017, the debt for the NFIP to the U.S. Treasury was $20.525 billion.

Last January, FEMA made a cornerstone placement of reinsurance for the 2017 calendar year, transferring $1.042 billion of the NFIP’s financial risk to 25 reinsurance markets in the private sector.  The 2017 placement put the NFIP in a better position to manage losses incurred from major events by transferring risk exposure to the reinsurance markets.

Continuing and expanding this practice of resiliency and protection against future floods, for 2018, FEMA secured $1.46 billion in reinsurance to cover any qualifying flood losses occurring in this calendar year. Under the 2018 Reinsurance Agreement, reinsurers agreed to indemnify FEMA for flood claims on an occurrence basis. This year, the agreement is structured to cover 18.6 percent of losses between $4 billion and $6 billion, and 54.3 percent of losses between $6 billion and $8 billion. FEMA paid a total premium of $235 million for the coverage.

FEMA received authority to secure reinsurance from the private reinsurance and capital markets through the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) and the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA). FEMA contracted with Guy Carpenter and Company, a subsidiary of Marsh & McLennan Companies, to provide broker services to assist in securing the reinsurance placements.  FEMA also contracted with Aon Benfield for financial advisory services for the January 2018 placement of reinsurance.

For more information, read, Public and Private Partnerships Strengthen Flood Protection with Reinsurance” at www.fema.gov/blog.

Tribal Mitigation Plan Review Guide Webinar

FEMA recently released the Tribal Mitigation Plan Review Guide (Guide) and will update and supersede the current FEMA Tribal Multi-Hazard Mitigation Planning Guidance issued in 2010. Both the current as well as the newly revised Guides are available online at www.fema.gov/media-library/assets/documents/18355. To phase in the implementation, the new Guide will becomes effective later this year on December 5, 2018. 

The Guide will provide direction to FEMA officials as they interpret regulatory requirements in their review and approval of tribal mitigation plans. The underlying regulatory requirements for the review and approval of tribal mitigation planning in the Code of Federal Regulations (44 CFR Part 201) have not changed.

FEMA engaged tribal governments throughout the development of the Guide, including tribal consultations in 2016 and 2017. This update will facilitate tribal governments' successful development and adoption of mitigation plans.

FEMA will provide additional information to tribal governments through national and regional webinars. The first webinar is scheduled for Tuesday, January 23, at 4 p.m. EST.

To join the webinar:

Adobe Connect: https://fema.connectsolutions.com/r51hovh1mun/

Audio dial in: 1-800-320-4330

Participant Code: 905506

More information on the requirement to have a FEMA-approved tribal mitigation plan as a condition for receiving certain assistance from FEMA, such as from Public Assistance (Categories C through G) after a presidentially-declared disaster, Hazard Mitigation Assistance, and /or Fire Mitigation Assistance Grants, can be found on FEMA’s website at www.fema.gov/hazard-mitigation-plan-requirement.  Additional information on FEMA’s mitigation planning program can be found at www.fema.gov/hazard-mitigation-planning.

Reminder of Upcoming Deadlines

Notice of Funding Opportunity for Assistance to Firefighters Grant Program

FEMA announced that the annual funding opportunity for the Fiscal Year 2017 Assistance to Firefighters Grant Program (AFG) is now open, and the application period will close on Friday, February 2, 2018 at 5 p.m. (Eastern). The Fiscal Year 2017 AFG program will award $310.5 million to enhance the safety of the public and firefighters against fire-related deaths and hazards.

Applicant tools, including the AFG Notice of Funding Opportunity, for this program will be available at www.grants.gov and at www.fema.gov/welcome-assistance-firefighters-grant-program. Further, the “Get Ready Guide” may also be useful for potential applicants and is provided to answer questions and to help prepare grant applications.

For fire departments/applicants requiring assistance please visit www.fema.gov/grants, or contact the AFG Help Desk at firegrants@fema.gov or 1-866-274-0960.