Township discovers flood plain clause

By JANE NORDBERG, DMG Writer
OSCEOLA TOWNSHIP — They may not know it, but some residents of Osceola Township are in a flood plain, and now they can get federal flood insurance for it.

Effective March 6, the township can participate in the National Flood Insurance Program, which covers up to $250,000 for single-family dwellings and $100,000 for contents. Coverage for commercial properties and their contents is limited at $500,000 and coverage for renters is also available.

But do township residents really need the coverage? Apparently, according to federal officials, the answer is yes.

“It was as much as a surprise to us as anyone,” said township supervisor Steve Karpiak, who found out a few years ago quite by accident that the township was listed on a federal flood plain list.

“What flood plain?” he asked, and was told the stream created by Hungarian Falls that causes flooding across M-26 in the spring was enough to put the township on a list 30 years ago.

Through research, Karpiak found out that back in 1974, federal officials surveyed much of the Keweenaw and created maps showing flood plain areas. The township was placed on the list, and the township board at the time opted out of flood insurance.

“Because of that, we were placed on a list of townships who opted out, and it’s coming back to bite us now,” he said.

Fast forward to 2007, when the township applied to the U.S. Department of Agriculture Rural Development program for a grant or loan for upgrades to its aging water and fire hydrant system. Current township officials were notified the presence of the township on the opt-out list for flood plain insurance made them ineligible for federal funding for a water system, even though they had received Rural Development monies in the past.

“Apparently, they didn’t catch it before, and now they have someone who is more astute,” Karpiak said.

The designation will also impact those looking to buy or sell properties. Lenders must require borrowers whose properties are located in a designated flood hazard area to purchase flood insurance as a condition of receiving a federally-backed mortgage loan in accordance with the Federal Disaster Protection Act of 1973.

“It’s something homeowners need to be aware of,” Karpiak said.

The NFIP is implemented through the Federal Emergency Management Agency. For more information, go to www.fema.gov/business/nfip.



Jane Nordberg can be reached at jnordberg@mininggazette.com