The government says some owners hit by severe flooding in southern Alberta last June faced delays out of their control and couldn't get a permit by the end of the year.
They now have until March 31 to obtain the required paperwork.
If they are still unable to get a permit, the government will accept a letter to the Disaster Recovery Program of a homeowner's intent to do the work.
Flood mitigation must be undertaken by residents in flood fringe zones to qualify for government assistance in a future disaster.
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