How will the province’s new flood maps impact Albertans?

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By Allyssa Epp

It has been just over a month since Alberta’s widespread flooding, but the province’s proactive government has already unveiled new flood-proofing rules. Alberta rolled out new flood-mapping standards last week in the hopes of preventing the drastic damage experienced this June from occurring again.

The new maps categorize areas in high-risk flood zones as being in either the floodway (the red areas in the map) or flood fringe (the pink areas on the map). Areas not believed to be at a risk of flooding appear as yellow on the map.

Calgary’s New Floodplain Map

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Source: Government of Alberta, Environment and Sustainable Resource Development, Flood Hazard Mapping

What do the new rules mean for homeowners?

What are the implications for homeowners living in areas that have now been declared at risk for future flooding?

Floodway homes

Homeowners living in newly-created red areas of the map have two options: stay and repair their homes or leave. If homeowners living in the red zone choose to stay at their current address, they will receive money from the province’s Disaster Recovery Fund this time around, but will not be eligible for future monetary assistance from the government should this area flood again. This means that homeowners will be able to look around at companies similar to that of WR Meadows to conduct waterproof sealant repairs and maintenance for the damage caused by the flooding. Homes located in floodways will have a notation attached to their title so that future potential homeowners know the risks of the home they are interested in. This means that they will be aware of the possible issues that could come from having a home in a floodplain – things like a flooded home could lead to things like floor damage, mold etc. If this is the case then homeowners need to be aware of what they can do to help with this (e.g be able to find mold remediation near me). Should any homeowners wish to stay within the area, they might benefit from looking at designing their new homes using new house plans drawn up by companies such as S3DA or others that can provide anti-flooding house designs.

If red zone homeowners choose to relocate, they will also receive financial assistance from the government. In some cases, this means the province will purchase the floodway zone home directly from the homeowners.

The provincial government says land that’s made available by Albertans moving out of flood risk areas will be used for municipal flood mitigation infrastructure (such as berms) or for recreational use such as parks and picnic areas.

Homeowners in floodways that weren’t affected by the recent flooding in southern Alberta won’t be relocated and will still be eligible for assistance in case of future flooding.

Flood Fringe Homes

Homeowners living in the flood fringe areas (pink), are required to flood-proof their homes if they want to receive financial assistance from the government in the future. Flood fringe homeowners will be eligible for an additional 15 per cent compensation from the government in order to complete the flood-proofing. Flood-proofing methods approved by the government include raising the house above flood levels or constructing a berm to prevent flood water from reaching the home. Homeowners in the flood fringe that do not implement flood mitigation measures to protect against flooding will not be eligible for financial assistance from the province’s Disaster Recovery Fund should their home flood in the future. Homes located in fringe areas that that are not flood-proofed will have a notation attached to their title so that future potential homeowners know the risks of the home they are interested in.

The Government of Alberta has yet to release numbers on how many people or homes would fall under either of the two categories under the new system.

What do the new rules mean for future homeowners?

It will be extremely important for future purchasers to know the areas of the community that were flooded during June of 2013 and ensure that proper inspections are done on these properties before conditions are removed. Because of the high demand and requirement of expediency during this time, some of the renovation work done after the flood may not be completed to the standard a purchaser would expect.

Future purchasers should also familiarize themselves with the community’s flood zone map. If the property is located in a fringe area, the potential purchaser should pull the property’s title to determine whether or not the proper flood-proofing was done.

Flood Hazard Real Estate Market

Homes located in the new floodway and flood fringe areas are likely to see a decrease in demand over the next several months, and consequently, home values will witness a bit of a drop. While the majority of homeowners living in flood-prone areas will stay, some will choose to relocate. New migrants locating in Alberta will still have pictures of the flood imprinted on their mind and will likely look for homes located on higher ground.

However, people’s memories are quick to fade. The Bow River overflowed in June of 2005 and downtown Calgary witnessed severe flooding. While homeowners were inconvenienced by the flooding in the short term, property values did not take long to return to normal. The damage witnessed during the 2013 flooding is certainly more extensive, but property values of homes in flood-prone areas should eventually rise. The Calgary Real Estate Board believes the value of homes in flooded areas will rise or drop depending on whether the city builds flood mitigating infrastructure (such as berms or dikes) to keep the water out.

Insurance companies across Alberta have never offered flood insurance for residential properties, and this has never stopped people from living and investing in flood-prone regions of the province. What buyers really care about is location, location, location, and if this location puts them at risk of flooding, that’s a risk most homebuyers are willing to take.

How will the new maps impact landlords/investors?

Under the province’s new flood mapping rules, landlords are lumped in with homeowners, and the same rules will apply. Landlords who own rental units located in a floodway will have two choices: stay and rebuild or relocate. Rental units located in the flood fringe will need to be flood-proofed in order to receive future assistance from the government.

In the meantime, Calgary’s already tight rental market will drop further as the cleanup and rebuilding begins. The city’s rental vacancy rate, currently sitting at 1.3% , will hit zero in the next few months as displaced homeowners and renters look for affordable units unaffected by the flooding. Monthly rental rates are likely to jump, further intensifying the pressures in the city’s rental market.

While renter’s insurance only covers sewer backup, the floods are not likely to have a large impact on where Albertans will choose to rent in the future. Similar to homeowners, what matters most to renters is location. If a unit is close to amenities and is in a walkable neighbourhood, it will still command premium rents and experience low vacancy rates.

Flood Zone Impact on Developers

The provincial government is expected to introduce legislation this fall that will forbid municipalities from approving new developments in floodways and require flood mitigation infrastructure to be included in future developments in flood fringe areas. Projects that are currently under construction in flood fringe areas will be expected to modify their designs to accommodate flood mitigation infrastructure .

Accuracy of New Maps Questioned

The province’s new flood zone maps are causing uproar among many of the communities hit with flooding this June. Residents of High River, arguably one of the hardest-hit communities, were shocked to learn that many of the worst-hit parts of town did not fall under the province’s floodway designation . Meanwhile, Calgary’s Inglewood community, which had erected a new street berm in 2011 and only experienced sewer backup (but no flooding) , was also categorized as a flood fringe area.

Calgary’s Mayor, Naheed Nenshi, said the province was using out-of-date maps to determine which areas should be classified as floodway or fringe.

?As a matter of fact, the maps that the provincial government has shared with citizens is based on 1983 data, he was quoted as saying. The severe flooding the province witnessed in June also caused some rivers to carve out new channels, which could make the maps even less accurate.

Alberta Environment officials said homeowners who would like to dispute the new flood designations must take it up with their municipality, which can then debate it with the province.

Many of the details of the province’s new initiative have yet to be nailed down, and the impact on communities hardest-hit by the flooding, such as Calgary or High River, is still uncertain. Homeowners and landlords should expect adjustments to the flood maps over the next 12 months as municipalities debate some of the new flood zone areas with the province.

To take a look at the new zoning in your investment community, visit http://www.envinfo.gov.ab.ca/FloodHazard

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Allyssa Epp first joined the REIN team in 2008 as a research assistant. In the past four years, Allyssa has contributed to many of REIN’s research reports, including: the Top Alberta Investment Towns report, Top BC Towns Report, Top Ontario Investment Towns report, the Gateway Effect, Calgary Transportation Effect, Edmonton Transportation Effect, and Ottawa Transportation Effect.


    • CMHC. (October 2012). Rental Market Report ? Calgary CMA. http://www.cmhc-schl.gc.ca/odpub/esub/64371/64371_2012_A01.pdf?fr=1374510208543
    • http://www.calgaryherald.com/news/Provincial+puts+Inglewood+East+Village+flood+fringe+despite/8663750/story.html
    • CBC News. (July 26, 2013). Accuracy of Alberta flood zone maps questioned. http://www.cbc.ca/news/canada/calgary/story/2013/07/16/calgary-high-river-flood-maps-confusion-ableg.html?cmp=rss

  • Markusoff, J. (July 16, 2013). Provincial map puts Inglewood, East Village in flood fringe, despite preventive measures http://www.calgaryherald.com/news/Provincial+puts+Inglewood+East+Village+flood+fringe+despite/8663750/story.html
  • CBC News. (July 17, 2013). Province’s flood zone maps need clarity, Nenshi says http://www.cbc.ca/news/canada/calgary/story/2013/07/17/calgary-flood-zone-maps-nenshi.html

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