FLOODPLAINS AND HOUSING VALUES: IMPLICATIONS FOR FLOOD MITIGATION PROJECTS1

ABSTRACT: The hedonic valuation method was used to quantify the impact of floodplain location on housing values in Fargo‐Moor‐head. Being located in the 100‐year floodplain lowered the home values by $8,990, and such homes were worth $10,241 less than similar homes located outside the floodplain before the major flood event of 1997. Required flood insurance premiums for these homes were determined to account for approximately 81 percent of this price depreciation. In contrast, homes in the 500‐year floodplain were worth $3,100 more than similar homes not in the floodplain. It was concluded that more disclosure is needed regarding the location of the 500‐year floodplain, and that the hedonic valuation method can be used to calculate the economic gains and losses associated with flood mitigation projects or floodplain remapping efforts that result in the reclassification of the legal floodplain status of individual homes.     

Assessing flood mitigation,management, and enforcement using insurance data,California and the USA

Previous research found that National Flood Insurance Program (NFIP) premiums collected in some U.S. states, including California, have far exceeded damage payments. However, this finding raises the question of whether such an imbalance represents systematically good flood management or, instead, merely short-term hydrologic good luck. This study investigated patterns in flood losses on structures that pre-date and post-date the first available flood maps (“pre-Flood Insurance Rate Map [FIRM]” vs. “post-FIRM”) in California, several peer states, and nationwide. California has a larger inheritance of pre-FIRM structures than the national average, apparently reflecting development during the latter half of the 20th Century but before most Federal Emergency Management Agency (FEMA) flood maps. Pre-FIRM properties are a disproportionate cost burden on the system, and the number of pre-FIRM policies has declined over time, but only slowly. Local patterns in pre-FIRM claims suggest targeted areas for enhanced mitigation efforts, including buyouts. Conversely, we find that claims on post-FIRM policies are a reasonable metric of good floodplain management and enforcement, and California's 38% of post-FIRM policies generated just 24% of the state's NFIP claims. Local “post-FIRM claim hotspots” suggest areas to examine more closely. California continues to be a net payer into the National Flood Insurance Program, with $102 million in payouts 2009–2018 versus $2.3 billion in premiums collected, or 4.5 cents of premiums collected for every dollar of premiums. In California, its peer states, and nationwide, future management of flood risk depends on: (1) continued investment in flood control and mitigation of existing floodplain structures, and (2) prudent planning and limitations on new floodplain and coastal development.     

NEW DIRECTIONS IN FLOODPLAIN MANAGEMENT1

ABSTRACT: Over the last 30 years, average annual riverine flood damages have exceed $2 billion. Damages associated with the Mississippi River Flood of 1993 exceeded $12 billion and these costs do not include the non-quantifiable, human impacts of this disaster. In a report submitted to the White House in June 1994, a federal interagency floodplain management review committee proposed better ways to manage the nation's floodplains. The committee indicated that the 1993 Mississippi River flood was the result of a significant hydrometeorological event, that federal flood control efforts in the Mississippi basin had prevented nearly $20 billion in potential damages, and that, in spite of federal flood damage reduction efforts, throughout the nation people and property remain at risk to inevitable future flooding. It recommended that the division of decision and cost-sharing responsibilities among federal, state and local governments be more clearly defined, and that the nation adopt a strategy of, sequentially, avoiding inappropriate use of the flood-plain, minimizing vulnerability to damage through both nonstruc-tural and structural means, and mitigating damages as they occur. The report did not call for abandonment of human use of the flood-plain but argued for full consideration of the economic, social and environmental costs and benefits of all future floodplain activity.     

Evaluating the effects of local floodplain management policies on property owner behavior

Floodplain management programs have been adopted by more than 85% of local governments in the nation with designated flood hazard areas. Yet, there has been little evaluation of the influence of floodplain policies on private sector decisions. This article examines the degree to which riverine floodplain management affects purchase and mitigation decisions made by owners of developed floodplain property in ten selected cities in the United States. We find that the stringency of such policies does not lessen floodplain property buying because of the overriding importance of site amenity factors. Indeed, flood protection measures incorporated into development projects appear to add to the attractiveness of floodplain location by increasing the perceived safety from the hazard. Property owner responses to the flood hazard after occupancy involve political action more often than individual on-site mitigation. Floodplain programs only minimally encourage on-site mitigation by the owner because most owners have not experienced a flood and many are unaware of the flood threat. It is suggested that floodplain programs will be more effective in meeting their objectives if they are directed at intervention points earlier in the land conversion process.     

HEDONIC PRICE ANALYSIS OF THE EFFECT OF A FLOODPLAIN ON PROPERTY VALUES1

ABSTRACT: The effect of a floodplain location on the market value for property is controversial, with the conventional wisdom being that buyers are myopic. Previous parametric and nonparametric statistical tests have proven inconclusive in deciding the issue. Herein, a theoretical model, that of hedonic price indexes, is posited and tested, using housing sales characteristics data obtained from a Multi-List Service cooperative. This study suggests that home buyers do adjust the purchase price for houses within a floodplain, and this amounts to, on average, just over 12 percent. The data are from a small midwestern town in which the last severe flooding occurred a decade ago.     

Demonstrating Floodplain Uncertainty Using Flood Probability Maps1

Abstract: The U.S. Federal Emergency Management Agency (FEMA) flood maps depict the 100‐year recurrence interval floodplain boundary as a single line. However, because of natural variability and model uncertainty, no floodplain extents can be accurately defined by a single line. This article presents a new approach to floodplain mapping that takes advantage of accepted methodologies in hydrologic and hydraulic analysis while including the effects of uncertainty. In this approach, the extents of computed floodplain boundaries are defined as a continuous map of flood probabilities, rather than as a single line. Engineers and planners can use these flood probability maps for viewing the uncertainty of a floodplain boundary at any recurrence interval. Such a flood probability map is a useful tool for visualizing the uncertainty of a floodplain boundary and represents greater honesty in engineering technologies that are used for flood mapping. While institutional barriers may prevent adoption of such definitions for use in graduated flood insurance rates (as most other insurance industries use to account for relative risks), the methods open the door technically to such a reality.     

Assessing Effectiveness of National Flood Policy Through Spatiotemporal Monitoring of Socioeconomic Exposure1

Abstract: After a century of evolving flood policies, there has been a steady increase in flood losses, which has partly been driven by development in flood prone areas. National flood policy was revised in 1994 to focus on limiting and reducing the amount of development inside the 100‐year floodplain, with the goal of decreasing flood losses, which can be measured and quantified in terms of population and property value inside the 100‐year floodplain. Monitoring changes in these measurable indicators can inform where and how effective national floodplain management strategies have been. National flood policies are restricted to the spatial extent of the 100‐year floodplain, thus there are no development regulations to protect against flooding adjacent to this boundary. No consistent monitoring has been undertaken to examine the effect of flood policy on development immediately outside the 100‐year floodplain. We developed a standardized methodology, which leveraged national data to quantify changes in population and building tax value (exposure). We applied this approach to counties in North Carolina to assess (1) temporal changes, before and after the 1994 policy and (2) spatial changes, inside and adjacent to the 100‐year floodplain. Temporal results indicate the Piedmont and Mountain Region had limited success at reducing exposure within the 100‐year floodplain, while the Coastal Plain successfully reduced exposure. Spatially, there was a significant increase in exposure immediately outside the 100‐year floodplain throughout North Carolina. The lack of consistent monitoring has resulted in the continuation of this unintended consequence, which could be a significant driver of increased flood losses as any flood even slightly higher than the 100‐year floodplain will have a disproportionately large impact since development is outside the legal boundary of national flood policy.     

MUNICIPAL WATER USE AND WATER RATES DRIVEN BY SEVERE DROUGHT: A CASE STUDY1

ABSTRACT: This paper synthesizes and interprets data pertaining to the evolution of average water revenue, water use, and the average cost of water supply in the City of Santa Barbara, California, from 1986 to 1996, a period which included one of the most devastating droughts in California this century. The 1987–1992 drought hit the study area particularly hard. The City of Santa Barbara was dependent exclusively on local sources for its water supply. That made it vulnerable as the regional climate is prone to extreme variability and recurrent droughts. The 1986–1992 drought provided a rare opportunity to assess the sensitivity of municipal water use to pricing, conservation, and other water management measures under extreme drought conditions. Our analysis indicates that the average cost of water rose more than three-fold in real terms from 1986 to 1996, while the gap between the average cost of supply and the average revenue per unit of water (= 100 cubic feet) rose in real terms from $0.14 in 1986 to $ 0.75 in 1996. The rise of $3.08 in the average cost of supplying one unit of water between 1986 and 1996 measures the cost of hedging drought risk in the study area. Water use dropped 46 percent at the height of the drought relative to pro-drought water use, and remains at 61 percent of the pre-drought level. The data derived from the 1987–1992 California drought are unique and valuable insofar as shedding light on drought/water demand adaptive interactions. The experience garnered on drought management during that unique period points to the possibilities available for future water management in the Arid West where dwindling water supplies and burgeoning populations are facts that we must deal with.     

Meadow Restoration Increases Baseflow and Groundwater Storage in the Sierra Nevada Mountains of California

In mountains of the western United States, channel incision has drawn down the water table across thousands of square kilometers of meadow floodplain. Here climate change is resulting in earlier melt and reduced snowpack and water resource managers are responding by investing in meadow restoration to increase springtime storage and summer flows. The record‐setting California drought (2012–2015) provided an opportunity to evaluate this strategy under the warmer and drier conditions expected to impact mountain water supplies. In 2012, 0.1 km² of meadow floodplain was reconnected by filling an incised channel through Indian Valley in the central Sierra Nevada Mountains of California. Despite sustained drought conditions after restoration, summer baseflow from the meadow increased 5–12 times. Before restoration, the total summer outflow from the meadow was 5% more than the total summer inflow. After restoration, total summer outflow from the meadow was between 35% and 95% more than total summer inflow. In the worst year of the drought (2015), when inflow to the meadow ceased for at least one month, summer baseflow was at least five times greater than before restoration. Groundwater levels also rose at four out of five sites near the stream channel. Filling the incised channel and reconnecting the meadow floodplain increased water availability and streamflow, despite unprecedented drought conditions.     

ESTIMATING RESIDENTIAL FLOOD CONTROL BENEFITS USING IMPLICIT PRICE EQUATIONS1

ABSTRACT: An implicit price model relating residential lot value to price determining characteristics of land is developed to measure the benefits of a structural flood control project. Special attention is given to the selection of relevant price determining characteristics of residential lots. An implicit price equation is estimated for both the with and without project conditions. Flood damages are quantified through the use of a dummy variable indicating a flood plain location. The analysis shows that annual flood damages were reduced by $15,275.     

DEVELOPMENT OF A GIS‐BASED FLOOD INFORMATION SYSTEM FOR FLOODPLAIN MODELING AND DAMAGE CALCULATION1

ABSTRACT: This work presents a flexible system called GIS‐based Flood Information System (GFIS) for floodplain modeling, flood damages calculation, and flood information support. It includes two major components, namely floodplain modeling and custom designed modules. Model parameters and input data are gathered, reviewed, and compiled using custom designed modules. Through these modules, it is possible for GFIS to control the process of flood‐plain modeling, presentation of simulation results, and calculation of flood damages. Empirical stage‐damage curves are used to calculate the flood damages. These curves were generated from stage‐damage surveys of anthropogenic structures, crops, etc., in the coastal region of a frequently flooded area in Chia‐I County, Taiwan. The average annual flood damages are calculated with exceedance probability and flood damages for the designed rainfalls of 2, 5, 10, 25, 50, 100, and 200 year recurrence intervals with a duration of 24 hours. The average annual flood depth in this study area can also be calculated using the same method. The primary advantages of GFIS are its ability to accurately predict the locations of flood area, depth, and duration; calculate flood damages in the floodplain; and compare the reduction of flood damages for flood mitigation plans.     

Impact of floodplain and Stage 0 stream restoration on flood attenuation and floodplain exchange during small frequent storms

River flooding impacts human life and infrastructure, yet provides habitat and ecosystem services. Traditional flood control (e.g., levees, dams) reduces habitat and ecosystem services, and exacerbates flooding elsewhere. Floodplain restoration (i.e., bankfull floodplain reconnection and Stage 0) can also provide flood management, but has not been sufficiently evaluated for small frequent storms. We used 1D unsteady Hydrologic Engineering Center's River Analysis System to simulate small storms in a 5 km-long, second-order generic stream from the Chesapeake Bay watershed, and varied % channel restored (starting at the upstream end), restoration location, restoration bank height (distinguishes bankfull from Stage 0 restoration), and floodplain width/Manning's n. Stream restoration decreased (attenuated) peak flow up to 37% and increased floodplain exchange by up to 46%. Floodplain width and % channel restored had the largest impact on flood attenuation. The incremental effects of new restoration projects on flood attenuation were greatest when little prior restoration had occurred. By contrast, incremental effects on floodplain exchange were greatest in the presence of substantial prior restoration, setting up a tradeoff. A similar tradeoff was revealed between attenuation and exchange for project location, but not bank height or floodplain width. In particular, attenuation and exchange were always greater for Stage 0 than for bankfull floodplain restoration. Stage 0 thus may counteract human impacts such as urbanization.     

Dynamic floodplain vegetation model development for the Kootenai River, USA

The Kootenai River floodplain in Idaho, USA, is nearly disconnected from its main channel due to levee construction and the operation of Libby Dam since 1972. The decreases in flood frequency and magnitude combined with the river modification have changed the physical processes and the dynamics of floodplain vegetation. This research describes the concept, methodologies and simulated results of the rule-based dynamic floodplain vegetation model "CASiMiR-vegetation" that is used to simulate the effect of hydrological alteration on vegetation dynamics. The vegetation dynamics are simulated based on existing theory but adapted to observed field data on the Kootenai River. The model simulates the changing vegetation patterns on an annual basis from an initial condition based on spatially distributed physical parameters such as shear stress, flood duration and height-over-base flow level. The model was calibrated and the robustness of the model was analyzed. The hydrodynamic (HD) models were used to simulate relevant physical processes representing historic, pre-dam, and post-dam conditions from different representative hydrographs. The general concept of the vegetation model is that a vegetation community will be recycled if the magnitude of a relevant physical parameter is greater than the threshold value for specific vegetation; otherwise, succession will take place toward maturation stage. The overall accuracy and agreement Kappa between simulated and field observed maps were low considering individual vegetation types in both calibration and validation areas. Overall accuracy (42% and 58%) and agreement between maps (0.18 and 0.27) increased notably when individual vegetation types were merged into vegetation phases in both calibration and validation areas, respectively. The area balance approach was used to analyze the proportion of area occupied by different vegetation phases in the simulated and observed map. The result showed the impact of the river modification and hydrological alteration on the floodplain vegetation. The spatially distributed vegetation model developed in this study is a step forward in modeling riparian vegetation succession and can be used for operational loss assessment, and river and floodplain restoration projects.     

A hedonic model of public market transactions for open space protection

A hedonic price function is estimated that illustrates how the price per acre of open space paid by public buyers such as counties or land trusts, is influenced by local demand and supply factors. The empirical regression model is illustrated using 133 public transactions (73% are purchases and 27% are easements) of open space in the Front Range of Colorado. The mean price per acre was $13 635. If a property provides access to water bodies, this feature increases the price per acre by $937, while adjacency of the parcel to existing park or open space adds $11 039 an acre. A 1% increase in county population results in a 0.27% increase in price per acre. Easements cost $6783 less than purchases, a sizeable cost saving. The prediction capability of the hedonic price equation may be an alternative to traditional real estate appraisal techniques when agencies must determine fair market values of prospective open space parcels that vary in attributes from existing ones.     

A Faster and Economical Approach to Floodplain Mapping Using Soil Information

Flood inundation maps play a key role in assessment and mitigation of potential flood hazards. However, owing to high costs associated with the conventional flood mapping methods, many communities in the United States lack flood inundation maps. The objective of this study is to develop and examine an economical alternative approach to floodplain mapping using widely available soil survey geographic (SSURGO) database. In this study, floodplain maps are developed for the entire state of Indiana, and some counties in Minnesota, Wisconsin, and Washington states by identifying flood‐prone soil map units based on their attributes. For validation, the flood extents obtained from SSURGO database are compared with the extents from other floodplain maps such as the Federal Emergency Management Agency issued flood insurance rate maps (FIRMs), flood extents observed during past floods, and flood maps derived using digital elevation models. In general, SSURGO‐based floodplain maps (SFMs) are largely in agreement with other flood inundation maps. Specifically, the floodplain extents from SFMs cover 78‐95% area compared to FIRMs and observed flood extents. Thus, albeit with a slight loss in accuracy, the SSURGO approach offers an economical and fast alternative for floodplain mapping. In particular, it has potentially high utility in areas where no detailed flood studies have been conducted.     

The rise of ingredient disclosure: The California and New York experience

In the recent past, two important states—California and New York—have launched extensive and precedent‐setting ingredient disclosure laws regarding cleaning products with the clear goal of prompting the deselection of certain chemical substances and forcing product reformulation. Industry prefers to refer to this trend as “ingredient communication,” a goal we can all agree is desirable. By whatever name, these state measures will have a significant impact on ingredient disclosure trends across product lines, likely well beyond their stated application to cleaning products. These state laws are summarized below, followed by a discussion of their similarities, key differences, and their implications.     

Flood Risk Perceptions and Overdevelopment in the Floodplain1

ABSTRACT: There is a long standing hypothesis that overdevelopment has occurred in the nation's floodplains due to imperfect information about the potential flood hazard, an expectation of disaster relief and anticipation of future structural protection. This hypothesis is investigated with multiple regression analysis of data for a case study area. In particular the question of whether floodplain residential property values are fully discounted for expected flood damages is addressed by considering the impact of the National Flood Insurance Program on property values. The extent to which flooding risk perceptions are based on low cost information such as distance from and elevation above the river is also considered. Finally, implications for floodplain management policy are discussed.     

Potential of the Conservation Reserve Program to control agricultural surface water pollution

The Conservation Reserve Program (CRP), initiated by the Conservation Title of the Food Security Act of 1985, is the primary federal program to control nonpointsource pollution in agricultural watersheds of the United States. However, the program is designed primarily to reduce soil erosion rather than to retire croplands in a manner optimal for controlling runoff of sediment and associated pollutants. This study estimates potential enrollment of streamside and floodplain croplands in this ten-year retirement program in order to gauge the potential of the CRP as a water-quality improvement policy. A contingent choice survey design was employed in Fayette County, Illinois, to demonstrate that there is substantial potential for retirement of streamside and floodplain croplands in the CRP. Enrollments in each program climb from less than 6% to over 83% of eligible croplands as the annual rental rate is increased from $20 to $200/acre. Potential retirement of streamside and floodplain croplands declines, however, if tree planting, drainage removal, or a 20-year contract are required. The potential of a CRP-based water-quality program to improve water quality and aquatic ecosystems in agricultural watersheds is thus substantial but constrained by the economic trade-offs that farmers make between crop production and conservation incentives in determining the use of their riparian lands.     

FEASIBILITY OF INTERBASIN WATER TRANSFER1

ABSTRACT: Interbasin water transfer is one of the most controversial water-resources-planning topics. Local communities, particularly those from which the water is to be taken (donor regions), generate enough opposition to doom many projects to failure. The opposition often arises because planners have traditionally considered excess water a free commodity rather than a marketable resource. To make transfer schemes mutually acceptable to donor and recipient regions, visible benefits must be offered. Agreement must be made on an acceptable purchase price and/or on other benefits such as a substantial amount of low flow augmentation or possibly some degree of flood control on the donor source stream. The hydrologic and economic feasibility of water transfer from the East Susquehanna River basin to the Delaware Reservoir System for supplemental supply to the New York City area was investigated. Nine alternative schemes for diversions up to 400 cfs and compensations in the form of low flow augmentation and/or flood control were considered resulting in unit costs to the recipient region between $90 and $380/mg. If only the minimum state-mandated flow is released to the Susquehanna River, the savings to the water recipients would be sufficient to pay a purchase price of about $21/mg, which would be equivalent to a total amount of $420,000/year for an average export of 100 cfs.     

EFFECTS OF DAM IMPOUNDMENT ON THE FLOOD REGIME OF NATURAL FLOODPLAIN COMMUNITIES IN THE UPPER CONNECTICUT RIVER1

ABSTRACT: Understanding the effects of dams on the inundation regime of natural floodplain communities is critical for effective decision making on dam management or dam removal. To test the implications of hydrologic alteration by dams for floodplain natural communities, we conducted a combined field and modeling study along two reaches in the Connecticut River Rapids Macrosite (CRRM), one of the last remaining flowing water sections of the Upper Connecticut River. We surveyed multiple channel cross sections at both locations and concurrently identified and surveyed the elevations of important natural communities, native species of concern, and nonnative invasive species. Using a hydrologic model, HEC‐RAS, we routed estimated pre‐and post‐impoundment discharges of different design recurrence intervals (two year through 100 year floods) through each reach to establish corresponding reductions in elevation and effective wetted perimeter following post‐dam discharge reductions. By comparing (1) the frequency and duration of flooding of these surfaces before and after impoundment and (2) the total area flooded at different recurrence intervals, our goal was to derive a spatially explicit assessment of hydrologic alteration, directly relevant to natural floodplain communities. Post‐impoundment hydrologic alteration profoundly affected the subsequent inundation regime, and this impact was particularly true of higher floodplain terraces. These riparian communities, which were flooded, on average, every 20 to 100 years pre‐impoundment, were predicted to flood at 100 ? 100 year intervals, essentially isolating them completely from riverine influence. At the pre‐dam five to ten year floodplain elevations, we observed smaller differences in predicted flood frequency but substantial differences in the total area flooded and in the average flood duration. For floodplain forests in the Upper Connecticut River, this alteration by impoundment suggests that even if other stresses facing these communities (human development, invasive exotics) were alleviated, this may not be sufficient to restore intact natural communities. More generally, our approach provides a way to combine site specific variables with long term gage records in assessing the restorative potential of dam removal.