Solutions Value: $65,000+ NOI Increase | $1MM+ in Added Property Value
NFE Solution: FES, LOMA
Our Client, an owner of a multifamily property in Terre Haute, IN, was in the middle of refinancing the property when a surprising lender mandate for National Flood Insurance Program (NFIP) AND excess flood insurance coverage nearly derailed their plans. Having worked with NFE in the past, their insurance agent referred this Client to us to review the property and hopefully find a solution to make the numbers work and allow the Client to secure approval for the loan.
Solution: NFE gathered the relevant documents and performed the initial desktop review, which identified a high likelihood that many buildings would qualify for removal from the Special Flood Hazard Area (SFHA) through a Letter of Map Amendment (LOMA). To fully confirm the solution, additional property-specific data was required. The Client agreed to have NFE perform a Flood Expert Survey (FES) of the property. After an exhaustive review of the new data, NFE's engineers qualified 29 of the 36 buildings for a LOMA.
The entire project was expedited through FEMA, and the LOMA was secured in under two weeks, just in time to save the refinance!
Net Operating Income (NOI) & Property Value Impact: Our solution not only saved the refinancing process for the Client but also created a substantial $65,250 boost to NOI. The LOMA also increased property value by a whooping $1MM+!
In conclusion, this case study embodies how NFE’s comprehensive engineering reviews can facilitate overcoming lender hurdles, generate significant savings, and enhance property value.
