The National Flood Insurance Program (NFIP) was adopted in 1968 as part of the adoption of the National Flood Insurance Act. Congress had four goals in adopting the act:
- Transfer the cost of private property flood losses from taxpayers to floodplain property owners through flood insurance premiums.
- Provide financial aid after floods.
- Guide development away from flood hazard areas.
- Require new and substantially improved buildings to minimize and prevent flood damage.
Community participation in the NFIP is voluntary, but failure to participate means communities have limited eligibility for federal mitigation grants, loans, and disaster assistance. Additionally, federally subsidized flood insurance policies cannot be purchased or renewed. NFIP requirements are codified in the Code of Federal Regulations, Parts 59 and 60.
Participating communities must adopt a floodplain overlay district that encompasses the 1% flood zones, or Special Flood Hazard Areas (SFHA). In Massachusetts, all development in the floodplain overlay district must comply with:
- 780 CMR – the Massachusetts Building Code
- 310 CMR 10.00 – the Wetlands Protection Act regulations
- 310 CMR 15.00 – Title V Minimum Requirements for the Subsurface Disposal of Sanitary Sewage
Communities with questions about NFIP compliance should consult the Department of Conservation and Recreation, Flood Hazard Management Program (FHMP), the state coordinating office for the NFIP. Floodplain bylaws need to be updated when new FEMA Flood Insurance Rate Maps (FIRMs) are adopted.
The NFIP encourages communities to adopt higher standards than the NFIP minimums. The Community Rating System (CRS) program of FEMA provides participating communities with flood insurance discounts in return for adopting higher standards. The program credits regulations, as well as natural resource protection, and public outreach. Communities that wish to adopt higher regulatory standards should include in their Floodplain Overlay Districts a strong statement of purpose to increase the likelihood of overcoming potential appeals. Forthcoming guidance from the FHMP includes sample language. The Massachusetts Building Code exceeds NFIP minimum standards including in freeboard requirements, substantial repair triggers, and structures in coastal dunes.