MASTER FLOOD INSURANCE POLICY PLEASE SIGN INoceanwoodssi.com/Documents/Oceanwoods-MasterFlood... · The Master Flood Insurance Policy Issue is a hot and complex topic and some individuals

Welcome to the Oceanwoods Homeowners’ Association

Special Homeowners’ Informational Meeting

Topic:

MASTER FLOOD INSURANCE POLICY

PLEASE SIGN IN

Midland Beach

Staten Island, New York 10306

www.oceanwoodssi.com

Monday, February 29th, 2016 7:30pm; Oasis Christian Center 539 Greely Avenue S.I., N.Y. 10306 -1-

Oceanwoods Board of Managers

Welcomes you

to this critically important homeowners meeting

to discuss the Master Flood Insurance Policy Issue.

The Board, on behalf of all the Homeowners,

also extends a very special thank you to The Oasis Christian

Center for allowing us the use of their facilities.



Oceanwoods Board of Managers Introduction: George Rosado, President

Dave Rodriguez, Vice President

Jeannine Seery, Secretary

Joe Ambroso, Treasurer

NOTE: Effective February 15, 2016 John Melendez resigned

as President and from the Board of Managers.

Community Management Associates (CMA): Dick Trattner

Laurie Heelein

Lenny Holm

Randy LaGressa

Jerry LePre

Sal Monforte

We will be discussing only the Master Flood Insurance

Policy Issue.

No other business nor issues will be addressed.

We intend to address Homeowners concerns expressed

privately and at the last Annual Homeowners Meeting.

We request that questions be held until “Comments and

Opinions”.

Everyone will have an opportunity to express their

opinions.


The Master Flood Insurance Policy Issue

is a hot and complex topic and some individuals have

very strong feels.

We ask everyone, to please be respectful at all times.

Please remember that we are in a House of Worship.

We are all neighbors, with the same goals:

Protect and Increase our invest in our home

while, Maintaining cost to the Homeowners.


The Purpose of the Meeting is to:

1. Provide the Homeowners Important Background

Information.

2. Update the Homeowners on Actions of the Board.

3. Present the Homeowners with Considerations and Options.

4. Obtain Homeowner Comments and Opinions.

5. Assist in determining Next Steps.

Note: We are not Financial Advisers, Insurance Agents nor

Real Estate Agents – we will not give advise in these areas.


Important Background Information

Pre-Sandy:

The Financial Institutions:

• Did not require the Condominium to have a Master Flood

Policy.

• Required Homeowners with mortgages to carry a Flood

Policy.

• Did not require Homeowners without mortgages to carry a

Flood Policy.

FEMA:

• The Flood Zone Map rated our area in a lower risk zone.

• Did not require homeowners to carry a Flood Policy. Monday, February 29th, 2016 7:30pm; Oasis Christian Center 539 Greely Avenue S.I., N.Y. 10306 -7-


Flood Policy Coverage Types: Source: NFIP, www.floodsmart.gov/floodsmart/pages/about/coverage_from_nfip.jsp

Structure: • The insured building and its foundation

• The electrical and plumbing system

• Central air conditioning equipment,

furnaces, and water heaters

Content: • Clothing, furniture, and electronic equipment

• Curtains

• Portable and window air conditioners

Notes: a) FEMA Underwrites all Policies, regardless of Agency issuing Policy.

b) Common reimbursement methods for flood claims: Replacement Cost Value and Actual Cash Value.

• Refrigerators, cooking stoves, and built-in appliances

such as dishwashers

• Permanently installed carpeting over unfinished flooring

• Portable microwaves and dishwashers

• Carpeting that is not included in property coverage

• Clothing washers and dryers



Sandy Aftermath:

Homeowners with insurance were reimbursed by FEMA

Agencies. If insurance amount didn’t cover damage, may

have received FEMA , NY State and NY City assistance

Homeowners without insurance may have received FEMA,

NY State and NY City assistance.

Many Homeowners used NY City’s Rapid Response and

some received assistance from other organizations;

i.e.: Tunnel-To-Tower, Religious Groups, …



Sandy Aftermath:

Roofing was covered by Condominium Property Policy.

Note: Renewal Premium was increased.

Condominium paid to have exterior and sink hole damages repaired.

Individuals HOs were responsible for their “Common Fire Wall” repairs,

if needed.

Board of Managers obtained a NY City Build-It-Back Grant to replace

exterior siding, and other vital work.

As far as the Board knows, no Homeowners who carried “Structural”

Flood Policy Coverage received anything towards exterior and

“Common Fire Wall” repairs.

NOTE: During the Meeting, discovered that some Homeowners were

reimbursed. Monday, February 29th, 2016 7:30pm; Oasis Christian Center 539 Greely Avenue S.I., N.Y. 10306 -10-


Post-Sandy:

The majority of Financial Institutions:

• Require the Condominium to have a Master Flood Policy.

• Require Homeowners with mortgages to carry a Flood

Policy with Structural Coverage.

• Do not require Homeowners without mortgages to carry a

Flood Policy.

Some Financial Institutions are offering mortgages without a

Master Flood Policy. NOTE: As the Board hears of them, we’ll post them on our web site

(www.oceanwoodssi.com) for information only – not recommendation.


http://www.oceanwoodssi.com/


Post-Sandy:

Government and FEMA:

• The Flood Zone Map for our area is being reclassified.

No official map has been signed off as yet.

• Built a Sand Berm; South Beach to Midland Beach.

• Planning to build a Sea Wall; Army Corp of Engineers.

• Requires Homeowners to carry coverage, otherwise there

would be no future assistance.


Action of the Board (Regarding Master Floor Policy)

Met with FEMA representatives.

Met with many elected officials over the period of 2 years;

including Rep. Grimm, Rep. Donovan, N.Y. State Senator

and N.Y. State Representative, N.Y.C. Councilman and S.I.

Borough President.

Met with Insurance Agents.

Spoke with Financial Institutions.

Reviewed many individual residential Flood Policies.


Action of the Board (Regarding Master Floor Policy)

Why these actions were taken:

Homeowners are experiencing difficulties in selling their

homes. Potential buyers can’t get mortgages.

Homeowners are experiencing problems refinancing or

experiencing higher rates and points.

If another hurricane were to hit, the Condominium may not

receive any government assistance.

Bottom line – it appears that the value of our homes are

being negatively impacted.


Considerations

A Master Flood Policy would provide Structure coverage only

(Slide 8).

Many Homeowners are currently paying for Structural Coverage.

• Structural Coverage amount varies significantly among the

Homeowners

• FEMA’s maximum Structural Coverage is $250,000 or 80% of

value.

• Not a high expectation that this Coverage would fully be honored by

the Insurance Agencies.

• Homeowners experienced delays in obtain reimbursement from

insurance.


Considerations

If the Condominium were to obtain a Master Flood Policy, Structural

Coverage only, the Homeowner should be able to cancel their

individual Structural Coverage. This is a discussion between the

Homeowners and their Mortgage Holder.

Each Homeowners would continue to be responsible for their

Content Coverage.

Flood Insurance must be paid in full at the inception of the Policy Term.

• The Condominium does not have the funds available to

purchase a Master Flood Policy; estimated at $89,234, plus

$1,596.51 Loan interest .

• This is with a $5,000 per Building Deductible:

18 Buildings x $5,000 = $90,000,

which we would be responsible.


Considerations

Not all Homeowners are able or willing to pay for a Master Flood

Policy, resulting in the other Homeowners paying a higher prorated

amount.

• For example; these are rough estimates for discussion only:

A $89,234.00 Policy plus $1,596.51 interest = $90,830.51 .

The average annual cost to a Homeowner would be

approximately:

Annually Prorated

Monthly

o If all 100 Homeowners were to pay … $908.31 ….. $75.69

o If 10 Homeowners were not to pay ... $1,009.23 ..… $84.10

o If 20 Homeowners were not to pay … $1,135.38 ..… $94.62

• Liens would be placed on the delinquent homes for possible future

recovery. Monday, February 29th, 2016 7:30pm; Oasis Christian Center 539 Greely Avenue S.I., N.Y. 10306 -17-

Considerations

The Board of Managers Authority according to the By-Laws:

• To finance the Flood Policy, in effect taking a loan, we

need 2/3 Homeowners approval at a specially called

Homeowners Meeting.

• Without financing, the Board has the authority to raise

Common Charges or issue a Special Assessment.

o The Board views it as critical to obtain Homeowners

opinions prior to any decision of this nature – thus this

meeting.


Considerations

Difficult community decision:

• Without a Master Flood Policy the value of our homes are

impacted – fewer potential buyers.

• With a Master Flood Policy our Common Charges and/or

Special Assessment would make our community less

attractive to potential buyers.


Options

There are basically 4 viable Options:

Obtain a Master Policy

• Finance via Loan (Option 1); 80% loan and 20% cash

down

o Increase of Common Charges.

o Policy effective date upon 20% cash down payment.

o A recurring annual commitment.


Options

Obtain a Master Policy, continued

• Wait until we have funds:

o Increase Common Charges (Option 2) and delay

purchase of Policy until we have sufficient funds,

approximately 1 year.

o One-Time Special Assessment and Increase

Common Charges (Option 3) to reduce delay in

purchase of Policy and accumulate funds for future

year Policy.

o Annual Special Assessment – not a viable option.


Options

Don’t Obtain a Master Policy (Option 4).

• The Board of Managers will cease all further efforts.


Comments and Opinions


Next Steps

Obtain Homeowners input.

The Board of Managers will evaluate all input.

The Board of Managers will report back to the

Homeowners.
