If a building's lowest floor is built 3 feet below the BFE due to cost-cutting, what would be a consequence if a certificate of occupancy is issued?

Building a structure with its lowest floor located below the Base Flood Elevation (BFE) significantly increases the risk of flood damage. The BFE is determined by the Federal Emergency Management Agency (FEMA) and represents the elevation that floodwaters are expected to reach during a 100-year flood event. If a building's lowest floor is constructed below this point, it is not in compliance with the minimum standards set by the National Flood Insurance Program (NFIP).

As a result, if a certificate of occupancy is issued for a building that does not meet these standards, one of the immediate consequences is the likelihood of very high flood insurance rates. Insurance premiums for structures that are below the BFE are calculated to reflect the increased risk associated with such locations. Consequently, the owner of the building would face significantly higher insurance costs, making it financially burdensome to maintain flood insurance. This increased financial liability stems from the elevated risk of flood-related damage that occurs when structures are inaccurately positioned relative to flood hazard areas.