Chapter 15.108

FLOODPLAIN RISK NOTIFICATION

Sections:

15.108.010 Purpose.

15.108.020 Definitions.

15.108.030 Notice to purchasers.

15.108.040 Contractual assumption of the risk of flooding.

This chapter establishes mechanisms whereby persons seeking to build any structure or otherwise obtain an interest in any structure in a special flood hazard area may be notified of the risk of flooding, and the owners of any new construction or substantial improvement in a special flood hazard area may be required to acknowledge and assume the risk of flood-related property damage. (Ord. 2011-046 § 3; Ord. 98-022 § 4; prior code § 9.27.1100)

The definitions set forth in Section 15.104.020 of this code shall apply to this chapter. In addition, for purposes of this chapter, "flood-related property damage" means any property damage resulting from a flood or flooding. (Ord. 2011-046 § 3; Ord. 98-022 § 6; prior code § 9.27.1102)

• A. In connection with the sale of any structure located in a special flood hazard area, the seller, any real estate agent, or broker representing the seller, and the primary escrow agent involved in the transaction shall:

1. Provide the prospective purchaser with written notice of the flood danger in a form of acceptable to the city attorney;

2. Obtain the prospective purchaser's signed acknowledgment of receipt of the notice; and

3. Record the prospective purchaser's signed acknowledgment in the Sacramento County recorder's office.

• B. The written notice required by this section shall be provided as follows:

1. In the case of sales which must be preceded by furnishing to prospective purchasers of a public report pursuant to Section 11018.1 of the California Business and Professions Code or a disclosure statement pursuant to Section 1102.2 of the California Civil Code, the seller and any real estate agent or broker representing the seller shall ensure that the notice of the flood danger either accompanies or is included in the public report or the disclosure statement;

2. In the case of sales to which subsection (B)(1) of this section does not apply, the seller and any real estate agent or broker representing the seller shall provide the notice of the flood danger to the prospective purchaser as soon as practicable before the transfer of the title; and

3. In the event that escrow services are utilized in connection with any sales subject to this section, the primary escrow agent shall verify that the notice of the flood danger has been delivered as required under subsections (B)(1) and (B)(2) of this section. If for any reason the prospective purchaser has not received the notice, then the primary escrow agent shall provide the notice to the prospective purchaser through the escrow process prior to the transfer of title.

C. This section shall apply to the sale of any structure that occurs on or after July 6, 1998, provided that at the time of the sale the affected structure is located in a special flood hazard area. (Ord. 2011-046 § 3; Ord. 98-022 § 7; prior code § 9.27.1103)

As of July 6, 1998, no building permit shall be issued for any new construction or substantial improvements located in a special flood hazard area, unless the owners of the new construction or substantial improvements execute an agreement with the city, in a form acceptable to the city attorney, whereby such persons:

• A. Are notified of and expressly acknowledge and assume the risk that the new construction or substantial improvements may be subject to flood-related property damage;

B. Unconditionally waive any claim of liability on the part of the city, or its officers, agents, or employees for any flood-related property construction or substantial improvements, whether or not the issuance of the permit is due to the negligence of the city, or its officers, agents, or employees;

• C. Expressly agree, in connection with the transfer of an ownership or possessory interest in the new construction or substantial improvements, to notify the transferee of the flood danger and obtain on behalf of the city the transferee's waiver of any claim for flood-related property damage premised on the issuance of a permit for the new construction or substantial improvements; and

• D. Agree to defend, hold harmless, and indemnify the city and its officers, employees, and agents from and against any and all claims for any flood-related property damage premised on the issuance of a permit for the new construction or substantial improvements; provided that

the indemnifiers shall be released from this indemnification pledge if, at such time as the city seeks to enforce this pledge, the indemnifiers demonstrate that they no longer have any legal or equitable interest in the new construction or substantial improvements and have fully complied with the provisions of the agreement requiring that they give notice of the flood danger to third parties obtaining an interest in the new construction or substantial improvements. (Ord. 2011-046 § 3; Ord. 98-022 § 8; prior code § 9.27.1104)