The Allen Brothers, who founded Houston in 1836, were real estate speculators. Almost since that time, Houston has been a hotbed of real estate development that has attracted a colorful collection of real estate speculators over the years.
No zoning laws and nominal barriers to entry into the real estate market are attributes that have traditionally made Houston an attractive venue for real estate development. On the other hand, Houston’s flat, sea level terrain has made development of Houston real estate challenging, particularly given its tendency to flood during Gulf Coast rainstorms.
As a result, one of the most eagerly anticipated events in Houston real estate circles is the Harris County Flood Control District‘s release of new flood plain maps for Houston real estate. On Monday, the Flood Control District will release preliminary new flood plain maps for five watersheds, including the Brays Bayou drainage area, which includes the flood-prone area around the Texas Medical Center. The flood plain designations have major impact on real estate development decisions and on plotting better ways to protect Houston from catastrophic flooding similar to what occurred in 2001 during Tropical Storm Allison. Within the so-called 100-year flood plain — the area with a theoretical risk of flooding once every 100 years — flood insurance is mandatory and the City of Houston imposes development requirements such as elevating buildings or digging detention ponds. These measures can substantially increase the cost of development.
The information to be released Monday is essentially an unofficial, draft version of the Federal Emergency Management Agency‘s Digital Flood Insurance Rate Maps, which are expected to be released in late spring. An appeals process will follow over the next several months before those maps become final. You can rest assured that many Houston real estate owners will be lobbying hard during that process regarding whether their property should be included within the flood plain.