City Leadership Urges FEMA to Reconsider Flood Insurance Decision

The City of Cape Coral is deeply concerned by the sudden decision of the Federal Emergency Management Agency (FEMA) to alter flood insurance ratings without prior notice. This decision, delivered verbally late Thursday, has dealt a significant blow to our community as it continues to recover from the devastation caused by Hurricane Ian.

Cape Coral has yet to receive any written notification or documentation outlining specific details that would lead to such a sudden change in rating.

“I am deeply troubled by the Federal government's unilateral decision regarding altering Cape Coral’s flood insurance rating. The Federal government must provide the support our community desperately needs to ensure they retain the discounts they currently receive on their national flood insurance premiums. The timing of this decision after our community suffered a devastating Category 5 hurricane is just wrong,” said Cape Coral Mayor John Gunter. “Make no mistake – FEMA is the villain in this nightmare.”

Cape Coral City Council and Administrative staff, with the support of Congressman Donalds, Lee County, and its affected municipalities, are committed to addressing this issue.

“I am partnering with County Administration and our City Council in calling for FEMA to immediately suspend its decision until meaningful discussions can occur, as we have worked hard over many years to attain the rating currently held,” said Cape Coral City Manager Michael Ilczyszyn. “It's crucial that the County and its municipalities have opportunities to address FEMA’s concerns. FEMA’s decision was made without providing documented evidence of the alleged noncompliance. Despite the often upsetting and challenging work performed by City staff to enforce the substantial improvement/substantial damage (50% Rule) in the aftermath of Hurricane Ian, this notification doubles down the financial impacts our residents and businesses already suffered.”

For decades, Cape Coral has worked diligently to secure a federal rating, ensuring residents a 25% discount on flood insurance premiums, yielding significant taxpayer savings.

 FAST FACTS:

• Cape Coral joined the National Flood Insurance Program (NFIP) in 1981.
• There are approximately 27,673 NFIP policyholders in Cape Coral with more than $8 billion in coverage.
• Cape Coral joined the CRS program in 1995 and achieved a Class 5 rating in 2010.
• A Class 5 rating allows for a 25% flood insurance discount.
• The value of this discount in Cape Coral is $7 to $8 million annually.