Solutions Value: ≈$166,000 in Added Property Value | ≈$10,000 NOI Increase
NFE Solution: LOMA
An Overland Park, KS, multifamily property owner felt the strain of rising flood insurance premiums, and their insurance broker was determined to help them find relief. Having experienced many successful past projects with us, the broker introduced the Client to our services.
NFE got to work immediately to provide a comprehensive solution to the Client's challenges. First, NFE gathered the relevant documents and performed the complimentary desktop engineering review, qualifying both buildings for removal from the Special Flood Hazard Area (SFHA) through a Letter of Map Amendment (LOMA).
Next, the NFE team prepared an airtight case and submitted it to the Federal Emergency Management Agency (FEMA) for approval.
The LOMA was approved thanks to NFE's efforts, removing the building(s) from the high-hazard flood zone and eliminating the lender requirement for flood insurance.
With the LOMA in hand, the Client's lender released the mandate for flood insurance. As a result, the Client's flood insurance expenses decreased by nearly $10,000 annually. This reduction improved the property's net operating income (NOI) and increased the property's value by an impressive $166,000, assuming a 6% CAP Rate.