Solutions Value: ≈$142,000 in Added Property Value | ≈$8,500 NOI Increase
NFE Solution: FES; LOMA; MODELING SERVICES
A cold call from National Flood Experts paid off big for a national nonprofit organization specializing in the professional management of affordable multifamily housing across the United States.
Based on past successful projects and area data, NFE's in-house research team pre-qualified several of the Client's properties as having a high likelihood of cost-saving solutions. NFE contacted the company's Director of Risk Management to share more information about our services and what we thought may be possible for their properties, and the Client was interested in exploring what solutions might be available.
For this North Kingstown, RI,, multifamily affordable housing property with seven buildings impacted by the Special Flood Hazard Area (SFHA), NFE's engineering team conducted the initial desktop review, which confirmed the high likelihood that several, if not all, of the A-Zone buildings would qualify for removal from the SFHA through a Letter of Map Amendment (LOMA). Due to the complex and understudied nature of A-Zones and 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. NFE's in-house Field Experts visited the property and meticulously collected all required data. After thoroughly reviewing the new data, and completing complex modeling, NFE's engineers qualified five of the seven buildings for a LOMA.
Upon approval by FEMA, the LOMA removed the five buildings from the SFHA and into an X Zone. With the LOMA in hand, the Client's lender released the mandate for flood insurance for those five buildings. As a result, the Client's flood insurance expenses decreased by more than $8,500 annually. This reduction improved the property's net operating income (NOI) and increased the property's value by approximately $142,000, assuming a 6% CAP Rate.
