- Flood plain regulations are one of six major adjustments
used to cope with flood hazard in the United States. This adjustment
was essentially neglected in the national flood hazard policies
until Congress enacted the National Flood Insurance Act of 1968.
The implementation of regulations, as called for in the Act, has
been slow. One possible reason for the slow pace of implementation
is that there has been little evidence regarding the influence of
regulations on land values. This study sought to determine, for
two selected sites on the Willamette River, whether land values of
flood plain parcels have been responsive to the implementation of
flood plain regulations. The measure of responsiveness was the
assessed land value appreciation rates. Statistical analysis showed
that, subsequent to the implementation of regulations, parcels on
the regulated flood plain tended to appreciate in value at rates
less than those of parcels near the regulated flood plain. Prior
to enactment of flood plain regulations, the flood-prone parcels
tended to appreciate more than nearby parcels from above the
100-year flood plain.
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