Does anyone know if ICC money is reportable to SBA as part of flood insurance reimbursement? Do you have to assign the funds?
Thanks

I heard from the SBA yesterday and I told them I am trying to get ICC money to demolish my home and he asked me how much the demolition estimate was. I guess that was noted somewhere on my SBA application. He did not say if was being counted as flood insurance money.

When we got our SBA loan (and we got our ICC to raise our house 3 feet), we actually asked for the $$ above the $30k that it took to raise the house - - they call that mitigation funds. We are waiting on word if they will give us the extra $$ in our loan.

See their response to my inquiry below:

Thank you for emailing the SBA Disaster Customer Service Mailbox.

The SBA offers a Mitigation Program. Mitigation means specific measures taken by you to protect against recurring damage in similar future disasters. Examples include elevation of flood prone structures, retaining walls, sea walls, grading and contouring land, relocating utilities, and retrofitting and strengthening structures to protect against high winds, earthquake, flood, wildfire, or other natural hazards. A SBA disaster loan may be increased by up to 20 % for mitigation measures based upon the SBA approved loan amount for physical damages.

Increased Cost of Compliance, or ICC, coverage is part of most Standard Flood Insurance Policies. If your building has been repeatedly or severely damaged by flooding, your local floodplain ordinances may require you to make changes to the property. You can use ICC benefits to help pay for these required improvements.


Both of these programs mitigate. The SBA will fund Code required upgrades such as elevation of homes. If there is no duplication of proceeds there would be no need for an assignment of those funds. If you were rebuilding your home and the total cost of a foundation was $35,000 and you requested an increase in the loan amount to cover this we may allow the uninsured (uncompensated) loss: in this scenario that would be $5,000, if ICC funds were given for $30,000 to cover foundation costs.


If you have any questions or need further assistance, please call our Customer Service Center at 1-800-659-2955 or for the hearing-impaired, 1-800-877-8339, and on line via e-mail at:

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Sincerely,
Kenneth W. Hoffman
Customer Service Representative


Subject: SBA Loan Guidelines/Increased Cost of Compliance NFIP funds

Are funds received from Increased Cost of Compliance applications considered reimbursable proceeds? Example - my house had to be demolished and I plan to rebuild to code and apply for Increased Cost of Compliance Funds (up to $30,000) if I qualify. Funds per the NFIP must be used to raise the structure. Must these funds be assigned to SBA even though the use is to bring my home in compliance with Flood Plain Elevation. Thanks for your assistance.