On March 7, 2013, the New Jersey Department of Environmental Protection held a hearing on the Flood Hazard Emergency Amendments and Concurrent Proposed Amendments (the "Amendments") and FEMA's Advisory Base Flood Elevation ("ABFE") maps. This hearing featured testimony from numerous interested citizens, including property owners, developers, planners and engineers. Most of the testimony focused on the economic impact of the Amendments and ABFE maps. Specifically, owners of commercial and residential properties that were substantially damaged now have to spend considerable sums of money to raise their properties to comply with the ABFE maps. Additionally, many property owners will face increased premiums for flood insurance required by lenders. The Amendments and ABFE maps could lead to a post-Sandy wave of defaults and additions to secured debt arising from forced-placed insurance obtained by lenders if property owners are unable to raise the elevation of their properties and afford increased flood insurance premiums.
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