(a)

1. (1) The issuance of a variance is for floodplain management purposes only.

2. (2) Insurance rates:

   1. (A) Are determined by statute according to actuarial risk; and
   2. (B) Will not be modified by the granting of a variance.
3. (3) Therefore, while a variance initially offers relief to a developer department, for example, through lower construction costs, higher insurance premiums may offset or exceed the reduced cost of construction.
4. (4) The Building Authority Division Flood Plain Administrator, after examining the applicant’s hardship, shall approve or disapprove a variance request.
5. (5) While the granting of variances generally is limited to a lot size less than one-half (1/2) acre, deviations from that limitation may occur.
6. (6) However, as the lot size increases beyond one-half (1/2) acre, the technical justification required for issuing a variance increases.
7. (7) Variances may be issued for the reconstruction, rehabilitation, or restoration of structures listed on the National Register of Historic Places or the State Register of Historic Places, without regard to the procedures described in this section.

(b)

1. (1) If a department wishes to construct a nonconforming structure in a flood management area, that department shall:

   1. (A) Submit a description of the proposed project in enough detail to allow consideration of the eleven (11) variance factors listed below; and
   2. (B) Submit a written detailed response to each of the variance factors listed below.

2. (2) The Building Authority Division will consider the variance in conjunction and either disallow the variance, thereby requiring that the project be relocated, or submit it to the Building Authority Division Flood Plain Administrator for consideration:

   1. (A) Danger to life and property due to increased flood heights or velocities caused by the nonconforming structure;
   2. (B) Danger that materials may be swept downstream and cause injury to persons or property;
   3. (C) Ability of any proposed water supply or sanitary systems to prevent:

(i) Disease;

1. (ii) Contamination; and

   1. (iii) Unsanitary conditions;
   2. (D) The susceptibility of the proposed facility and its contents to flood damage and the practicality of plans to prevent such damage;
   3. (E) Importance of the proposed facility to the state or local community;
   4. (F) Degree of necessity that the proposed facility be placed in this location;
   5. (G) Availability and practicality of alternate locations;
   6. (H) Compatibility of the proposed facility with existing development;
   7. (I) Relationship of the proposed facility to the comprehensive plan and floodplain management program for the area;
   8. (J) Safety of access of the facility in times of flood, particularly for emergency vehicles; and

   9. (K) The expected heights, velocity, duration, rate of rise, and sediment transport of the floodwaters expected at the site.

      1. (c) Procedures for the granting of variances are as follows:
2. (1) Variances shall not be issued by the Building Authority Division Flood Plain Administrator within any designated regulatory floodway if any increase in flood levels during the base flood discharge would result;
3. (2) Variances may be issued by the Building Authority Division Flood Plain Administrator for new construction and substantial improvements to be erected on a lot of one-half (1/2) acre or less in size contiguous to and surrounded by lots with existing structures constructed below the base flood level, in conformance with the division floodplain management program requirement; or

4. (3) Variances shall only be issued by the Building Authority Division Flood Plain Administrator upon:

   1. (A) A showing of good and sufficient cause;
   2. (B) A determination that failure to grant the variance would result in exceptional hardship to the applicant;

   3. (C) A determination that the granting of a variance will not result in:

      1. (i) Increased flood heights;
      2. (ii) Additional threats to public safety;
      3. (iii) Extraordinary public expense;
      4. (iv) The creation of nuisances;
      5. (v) Causing fraud upon, or victimization of, the public; or
      6. (vi) Conflict with existing state or federal laws; and

   4. (D) A determination that the variance is the minimum necessary considering the flood hazard to afford relief.

      1. (d)

5. (1) The division shall notify the applicant in writing that:

   1. (A) The issuance of a variance to construct a structure below the base flood level will result in increased premium rates for flood insurance up to amounts as high as twenty-five dollars ($25.00) annual premium for one hundred dollars ($100) of insurance coverage, increased deductibles per claims, and in some instances, insurance coverage may be denied;
   2. (B) Such construction increases the risk to life and property; and
   3. (C) Any terms or conditions of the variance approval.
6. (2) This information constitutes notification to the applicant of the criteria for and consequences of the issuance of the variance.
7. (3) The division shall maintain a record of variances and report the number of variances to the Federal Insurance Administrator when requested.