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NLBMDA: Congress Tackles Flood Insurance

Congress Seeks Changes

This year, Congress has already provided limited relief to property owners affected by NFIP premium increases. In January, as part of the omnibus appropriations bill that funds the government through the end of Fiscal Year 2014 (September 30, 2014), a provision was included that blocks FEMA from preparing for scheduled premium increases on property owners that are not currently considered to be in a flood zone, but are deemed to be flood prone under new FEMA maps. However, the map-related premium increases aren’t scheduled to take effect until October 2014, so only a brief delay is expected.

The provision delaying rate increases included in the spending bill was authored by Rep. Bill Cassidy (R-LA) and Sen. Mary Landrieu (D-LA). Rep. Cassidy is running for Senate and hopes to unseat Sen. Landrieu this fall.

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Lawmakers have also introduced stand-alone proposals addressing concerns with NFIP, but it has been a challenge to garner the votes needed to approve legislation in either chamber. The Homeowners Flood Insurance Affordability Act (H.R. 3370, S. 1610) introduced in October by Rep. Michael Grimm (R-NY) and Sen. Bob Menendez (D-NJ) would delay higher premium rates for four years, require FEMA to create more accurate flood maps, and ensure that consumers can be reimbursed for successful map appeals.

In addition to NLBMDA, the NAHB, National Association of Realtors, American Bankers Association, and others support the legislation.
A more modest reform bill, the Flood Insurance Relief and Transparency Act (H.R. 3693), introduced by Rep. Bill Cassidy (R-LA), has the backing of House Republican Leadership but has drawn bipartisan criticism for not helping enough property owners and only delaying premium increases until March 2015. The silver lining for reform advocates is both House and Senate Leadership are motivated to approve NFIP reform legislation this year.

NFIP should be put on a path toward financial sustainability, but that goal must be balanced with the need for property owners to pay premiums that are fair and do not increase dramatically overnight. NLBMDA will continue to weigh in with Congress on the need for NFIP reform, and urges LBM dealers wishing to have their voices heard on this issue to contact their Representative and Senators by visiting our Legislative Action Center at www.dealer.org

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