The state of Vermont is preparing to implement new rules that encourage communities to take steps to reduce future flood damage in exchange for more money to help them recover.

Starting in October, Vermont communities that have met four flood-preparedness criteria will be eligible to be reimbursed for 12.5 percent of the local cost of disaster repairs after the Federal Emergency Management Agency has paid its 75 percent share.

Most communities have yet to meet all the requirements, although 90 communities have only one more step to qualify.

Communities that don't meet the requirements will be reimbursed 7.5 percent of their local costs.

The new rule comes into play after a federally declared flood disaster, such as Tropical Storm Irene in 2011.

 Read more: