Summary: Pursuant to a congressional request, GAO examined whether: (1) the National Flood Insurance Program (NFIP), administered by the Federal Emergency Management Agency (FEMA), stimulated flood plain development; and (2) FEMA was adequately enforcing flood plain management regulations.
Coastal and barrier island communities are developing rapidly, because they offer many attractive features and opportunities for recreation and retirement. After studying six coastal communities and interviewing various federal, state, and local officials, GAO concluded that the availability of federal flood insurance is not the principal reason for flood plain development in these communities, but it does offer a marginal added incentive to development. GAO also found that FEMA monitoring of local communities' enforcement of flood plain management regulations has been inadequate. Additionally, GAO noted errors in designations of flood zones on which insurance rates were based. GAO observed that providing flood insurance and other federal assistance in extremely hazardous coastal areas subject to wave damage may be an undesirable public policy because of the high potential for loss of life and destruction of property.
