Res 2021-064/approving Substantial Amendment No. 10 to the Community Development Block Grant-Disaster Recovery (CDBG-DR) Action Plan

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FEMA grant and insurance for the covered event, HUD assumes that the unmet need "gap" is 20 percent of the difference between total damage and the FEMA grant. • FEMA does not inspect rental units for real property damage so personal property damage is used as a proxy for unit damage. Each of the FEMA inspected renter units are categorized by HUD into one of five categories: - Minor -Low: Less than $1,000 of FEMA -inspected personal property damage. - Minor -High: $1,000 to $1,999 of FEMA -inspected personal property damage. - Major -Low: $2,000 to $3,499 of FEMA -inspected personal property damage and/or 1 to 4 feet of flooding on the first floor. - Major -High: $3,500 to $7,499 of FEMA -inspected personal property damage and/or 4 to 6 feet of flooding on the first floor. - Severe: Greater than $7 ,500 of FEMA -inspected personal property damage or determined destroyed and/or 6 or more feet of flooding on the first floor. For rental properties, to meet the statutory requirement of "most impacted," homes are determined to have a high level of damage if they have damage of "major -low" or higher. That is, they have a FEMA personal property damage assessment of $2,000 or greater or flooding over 1 foot. Furthermore, landlords are presumed to have adequate insurance coverage unless the unit is occupied by a renter with income of $30,000 or less. Units occupied by a tenant with income less than $30,000 are used to calculate likely unmet needs for affordable rental housing. For those units occupied by tenants with incomes under $30,000, HUD estimates unmet needs as 75 percent of the estimated repair cost. • The average cost to fully repair a home to code for a specific disaster within each of the damage categories noted above is calculated using the average real property damage repair costs determined by the SBA for its disaster loan program for the subset of homes inspected by both SBA and FEMA. Because SBA is inspecting for full repair costs, it is presumed to reflect the full cost to repair the home, which is generally more than the FEMA estimates on the cost to make the home habitable. If fewer than 100 SBA inspections are made for homes within a FEMA damage category, the estimated damage amount in the category for that disaster has a cap applied at the 75th percentile of all damaged units for that category for all disasters and has a floor applied at the 25th percentile. Given that the SBA awarded 88 loans to citizens of San Marcos, the City will utilize the average of these loans as the basis for the estimate to completely repair a substantially damaged housing unit. This number is pro -rated based upon the damage percentage ratios shown in the charts below and estimates that the current cost to repair homes to a pre -flood state is approximately $80,176. It is understood that this "damage universe" is a small percentage of the actual number of damaged units, however, the current lack of NFIP payout information makes this the only solid and reliable piece of data to represent reconstruction costs. To obtain estimates for unmet needs, only properties receiving a FEMA grant are included in the calculation (since these are the cases assumed to have insufficient insurance coverage). Furthermore, the FEMA grant amount and all SBA loans are subtracted out of the total estimated damage to obtain a final unmet needs estimate. Although flood insurance payouts have been issued, and must be counted against the Unmet Need, the amount of those payouts is unavailable at thistime. The following chart shows the latest comprehensive damage estimate for housing units within the most impacted area of the City, and represents the basis for our unmet needs calculation. Given that Last Updated 3/03/20 Page 20 of 63