Little Falls Residents Brace for Home Renovation Rule Changes After Floods

LITTLE FALLS, NJ – Residents of Little Falls could see big changes when it comes to fixing up their homes, especially after floods. James DiMaria, Floodplan Administrator, recently shed light on updates to flood damage prevention regulations. Prompted by directives from the New Jersey Department of Environmental Protection (NJ DEP) about two years ago, these changes aim to bolster safety measures and minimize losses caused by flooding in the area. Now, if residents want to fix anything in their house, even basic things like replacing a sink, residents will most likely need a permit. This is to make sure all changes to homes follow safety rules, especially in areas that often flood.

The impact of these changes extends to a wide swath of residents, as many areas in Little Falls Township are susceptible to flooding. DiMaria stressed that compliance with the new regulations is essential for all homeowners, irrespective of whether they have flood insurance, as it could affect future property transactions. Central to the revised ordinance is the concept of "substantial improvement," wherein any major renovations or repairs exceeding half the value of a home over a 10-year period will necessitate elevation above flood levels. Additionally, stricter oversight will be implemented to monitor all repair work carried out in flood-risk areas to ensure adherence to the rules.

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These changes are essential to maintaining the township's class five Community Rating System (CRS) rating, which offers residents a 25% discount on flood insurance policies.

Previously, homeowners could undertake basic maintenance work without permits, like replacing kitchen fixtures or repairing roofs. Homeowners must apply for these permits through the township's building department.

Mayor James Damiano emphasized the potential financial impact on homeowners, stating that if improvements exceed 50%, homeowners may need to bear the cost of elevating their homes, which could amount to around $200,000 including permits and design costs. Not adopting the ordinance risks increasing insurance costs for residents, potentially leading to foreclosures and property devaluation. Despite the challenges, Damiano stressed the importance of passing the ordinance to protect residents' financial well-being and ensure continued insurance coverage.

“It's a tough decision, but one we must make to prioritize our community's stability and security,” he said. "I'm advocating for a three-year look-back period rather than the previously discussed ten-year look-back because improvements made to homes five years ago wouldn't be counted towards the allowable expenditure for repairs or improvements. While this shorter window may cost us some points in our CRS rating, I believe we can make up for them in other aspects of the rating system. Allowing homeowners and residents in our town the flexibility to make improvements without them being held against them for too long is crucial. Shortening the look-back period to three years is critical because the loss of 40 points between a three-year look-back and a five-year look-back remains the same. This adjustment will help our residents by not penalizing them for repairs made years ago.”

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According to Damiano, there are 300 Little Falls residents that are paying for flood insurance, some paying $4,000+ on flood insurance.

“Even at the lowball number of $4,000 a year for flood insurance in 300 homes, we are saving Little Falls taxpayers $300,000, probably close to $500-600,000 in total flood insurance costs by remaining in this program,” Damiano said. “Not to adopt this ordinance, in my opinion, is unfortunately not something we can do because it will cost Little Falls taxpayers or Little Falls residents hundreds of thousands of more dollars in insurance.”

"As a homeowner, even if I do the work myself, like getting cabinets from Home Depot and installing them with a friend, I'll still be charged, and it'll affect my home's value for three years," Council President Anthony Sgobba said. "So, if I spend $5,000 on cabinets, they'll still calculate some cost into a formula, maybe $2,000, making it $6,000 against my home's value. This could delay repairs after a flood, unlike before when we could quickly fix things up to get back home."

Damiano suggested hosting a Town Hall and distributing information packets to inform residents about the amendment and its implications.

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