COURT HOUSE – The April 2023 Federal Emergency Management Agency (FEMA) list of Community Rating System (CRS) eligible communities and their class levels shows three Cape May County communities declined in scores from 2022 levels, losing some National Flood Insurance Program (NFIP) discount benefits for property owners.
The CRS program rewards communities that engage in floodplain management practices that exceed the minimum requirements of the NFIP. Communities earn points for embracing FEMA-endorsed practices. At various point thresholds, class levels that carry corresponding flood insurance discounts are designated.
This was a particularly difficult year for communities seeking to retain or even improve on CRS levels. Points provided by FEMA following Superstorm Sandy as an incentive for communities to adopt Advisory Base Flood Elevation Maps reached their 10-year expiration date. To avoid a drop in score, communities needed to replace the points they were scheduled to lose with alternative point-producing practices to maintain their class levels.
Of the 11 county towns now actively participating in the CRS program, all but three maintained their 2022 rating level. The three that declined in the ratings are Sea Isle City and Cape May Point, each of which dropped one level, and Stone Harbor, which dropped two levels from 2022 scores. The ratings are on a scale of 1 to 9, with 1 as the highest.
Sea Isle City moved from a level 3, of which in 2022 there were only 13 in the nation, to a 4. Sea Isle property owners will see their NFIP discount decrease from 35% to 30%.
Cape May Point moved from level 6 to 7, with its corresponding discount dropping from 20% to 15%.
In Stone Harbor, the borough declined by two tiers in its CRS level from a class 5 community to a class 7. The discount available to property owners for flood insurance declined from 25% to 15%, a heavy blow since it comes as FEMA is implementing its new flood insurance premium system that can produce higher premiums, especially for high-value homes.
The other eight county communities in the CRS program held their rating levels from what they were in 2022. With the change in Sea Isle’s rating, Avalon is now the only level 3 community in the county.
Four county municipalities have elected not to participate in the CRS program. They are Dennis and Middle townships and the boroughs of Woodbine and West Cape May.
West Wildwood entered the CRS program in 1993, but its efforts fell below full compliance with the minimum requirements in 2005, and it has since carried an R (retrograde) status, with a corresponding level 10 rating, which does not entitle property owners to any flood insurance discount.
Of the 11 county communities active in the program, Avalon is the only class 3, with a 35% discount. Two towns, Ocean City and Sea Isle City, are class 4, with a 30% discount. There are three class 5 communities, Cape May, Upper Township, and Wildwood, with a 25% discount. Two towns, North Wildwood and Wildwood Crest, are rated at class 6, which provides a 20% benefit. Lower Township, Cape May Point and Stone Harbor are all class 7 communities in 2023, with a 15% discount.
Across New Jersey, 109 communities are listed as CRS participants. Only three of those communities, all in Cape May County, have scores above level 5. Looking at the entire 109 towns, most held their score levels in 2023, but not all. In all 12 communities that had class levels above 7 in 2022, 12 fell back to 7 or below in 2023.
It was not as bad a year as it could have been given the expiration of the Superstorm Sandy points, but for those who lost ground, it was unfortunate timing due to the new FEMA premium setting formula.
Contact the author, Vince Conti, at vconti@cmcherald.com.
