Heppner, Ore., Gazette-Times, Thursday, April 4, 1974
At a price
Page 9
Flood insurance
By ERNEST V. JOINER
Twice in the past, the City of
Heppner has turned down
government subsidized flood
insurance for residential and
commercial properties, ac
cording to Mayor Jerry
Sweeney.
It isn't likely to be turned
down again.
Monday night Chuck'Steele,
flood specialist. Department
of Housing and Urban Devel
opment, Portland, told the
common council that after
July 1, 1975 no bank, savings
and loan association, Federal
Housing Administration
or
Driver license
exam schedule
Oregon drivers' license
examinations for the Heppner
area may be taken at the
Heppner City Library, 10
a.m. through 3 p.m., April 10,
May B and June S.
The Motor Vehicles Division
of the Department of Trans
portation asks that the appli
cant plan to file applications
at least 45 minutes in advance
of scheduled closing hours if
examination is to be com
pleted on the same day.
The annual friendship night
of Ruth chapter No. 32, Order
of Eastern Star, will be held
Monday, April 8, 8 p.m., at the
Masonic Temple, Heppner. All
Eastern Star members are
invited to attend.
A
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!Wr.J NEW YORK LIFE
.. . - .
announces the opening
of its new office
in Lexington.
Jim Robinson, will handle all questions concerning
Life, Health. Group Insurance, Annunities or Pension
Plans.
989-8493
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Beecher's Cafe
Alters Motor Service
Jordan Elevator Co.
Bristow's Market
B & C Repair
Veterans Administration will
make a mortgage loan for
construction here unless the
property is insured under the
Flood Disaster Act of 1973,
which is administered by
HUD.
After July 1, 1975, no home
may be sold unless the city has
committed itself to the HUD
administered program, if the
mortgage loan is from a bank,
savings and loan or federal
agency.
Since 98 per cent of Heppner
lies within the flood plain of
Willow Creek, Just about
every residential and com
mercial building is affected.
Existing construction, the
buildings standing at the time
the city would qualify under
the FDA of 1973, would
become immediately eligible
for subsidized flood insurance
rates by the federal govern
ment at a rate of 25 cents per
$100 with a limit of $35,000 for
residential construction and
$100,000 for commercial
structures. After the detailed
study of the city had been
made by HUD, these amounts
would be doubled. Residential
and commercial insurance on
building contents would be
available under the law.
All the city must do to have
its residents become eligible
for subsidized insurance im
mediately is to prove that the
city has a building permit
process; commit the city by
resolution to cooperate with
federal agencies in providing
required information; resolve
to review all building sites and
specify the flooding potential;
require that all new construc
tion be well-anchored; built of
... . . . . . .
INSURANCE tOMrAN T
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flood-resistant materials and
carry out flood construction
practices.
The preliminary application
for the city is a single-page,
simple form, and imposes no
heavy restrictions.
Once the city submits the
application, residents may
within two or three days begin
taking out flood insurance
policies on their property. All
property within the city is
eligible for insurance at the
subsidized low rates.
A structure that receives
flood damage of less than 50
per cent of its value is eligible
for continued insurance. How
ever, if there is more than 50
per cent damage, the agency
will not insure a new structure
or repair the old one unless it
is moved to a location above
the flood plain.
After the detailed study is
approved the city becomes
"regular." This means that all
construction begun after the
city has become "regular"
will have different insurance
rates, depending upon how far
above or below the flood plain
may have insurance for even
less than the 25-cent per $100
minimum. But those built in
the flood plain will be penal
ized by imposing the regular
actuarial rates charged by
standard insurance com
panies for such insurance.
Thus, a $10,000 house above
flood plain may have an
annual premium of $25, but a
$10,000 house on the flood plain
the building will be con
structed. For example, struc
tures above flood plain
or below, may be required to
aoooooeooooooooooooooooooooo
Grand Re-Opening
Park Drive-In & Cafe
(new management)
Knight's Katering
Free fresh donut with your coffee opening day
Now serving breakfasts
Open 6 a.m. to 8 p.m.
The Windmill, Irrigon, Ore.
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Dobyn's Pest Control
John W. Jepsen
Murray's Rx Stables
Rod Murray lone, Oregon
Bank of Eastern Oregon
Morrow County Grain Growers
offered Heppner
pay the "full bore" or about
$700 a year.
The intent, obviously, is to
force owners to move their
structures above flood plain.
No move, no mortgage money,
no loans for home or business
repairs, and no selling the
property to anyone else unless
that property is qualified for
this government insurance.
The average American
home valued at $20,000 would
involve an insurance premium
of $60 per year per annum
where cities (or counties)
achieved "regular" status.
Steele emphasized that the
program is a voluntary one
and that the city can withdraw
from the program at any time.
Only, Steele said, few
councils can stand up to the
pressure of withdrawing from
the program because resi
dents find it impossible to
renew their flood insurance
policies after the annual
expiration date.
Counties are also "eligible"
to join in the insurance
program.
Asked if the seemingly
harmless regulations imposed
by the federal government as
a condition for securing low
cost insurance would be sub
ject to more stringent condi
tions one most cities and
counties had "joined" the pro
gram, Steele said he could not
say. "I cannot forsee what
changes Congress might make
in the future," he said.
And there's the rub.
Those who remember that
the federal income tax law
was supposed to be held to a
tax of 1 per cent on the
average annual income, and
OICCS 1
re
9 '
We're behind you Cards
what happened in successive
Congresses, may contemplate
what absolute control over all
city and county property may
one day be exercised through,
what started put to be simple,
low-cost subsidized flood in
surance program.
Those who recall the humble
beginnings of the Social Se
curity "bite" know now how
Congress reacts once the door
, is opened and the people have
subscribed to a mild but
meritorious program.
The dangers in accepting
this flood insurance program
are great, and could well lead
to absolute government con
trol of private residential and
commercial property.
On the other hand, the
government is offering an
insurance most home and
business owners need and is
not available elsewhere -low-cost
flood insurance.
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qO
Get o FREE
All you have to do is bring your
parents to Comric O Ids for a
demonstration ride in a GMC
Oldsmobile, Cadillac, or Mazda.
8 a.m. - 8 p.m.
0!dCci:tGMC-Maida
511 $1 Court Pendleton 276-1921
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Ml
SOTTS
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Uf H -"I I
Independent Garage
Chas. O'Connor, Insurance
Rietmann's Hardware
lone Lions Club
Regardless of the merits of
the program, it is the law.
People will join it or they will
pay dearly for not doing so.
The mailed fist is ill-concealed.
The City of Heppner will
have the matter on its agendy
for next Thursday night's
meeting. The council's deci
sion to this virtual ultimatum
is obvious.
wooooeooooooooeooodooi
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Furniture recovering. Auto
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cushions, truck tarps, awn
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Ph. 276-4781
613 E. Emigrant
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