Update on Flood Insurance Rate Increases
With NAR’s support, Representatives Bill Cassidy (R-LA) and Maxine Waters (D-CA) have successfully attached an amendment to the Homeland Security Appropriations Bill to delay removal of “grandfathered” flood insurance rates for one year. NAR is now working with Senators Mary Landrieu (D-LA) and David Vitter (R-LA) to include the delay in the Senate version of the Homeland Security bill.
The grandfathered and other subsidized flood insurance rates are being phased out under the Biggert-Waters Act that extended the National Flood Insurance Program for five years. The House amendment would delay the phase-out for properties “grandfathered” under older rates in areas remapped into a higher-priced flood zone before September 30, 2014. The law’s other phase-outs -- for older second homes and business properties and for homes purchased after July 2012 – will continue to take effect on October 1, 2013. NAR is working on a longer delay and expanding it to include the other subsidy phase-outs, in addition to grandfathered properties.
NAR has produced a video that helps explain the changes to the NFIP and rate schedules. NAR President Gary Thomas has created a Presidential Advisory Group on the NFIP to address the issues related to recent changes to the NFIP.
In the meantime, the Senate Banking Committee has agreed to hold a hearing on the affordability of the Biggert-Waters rate provisions. The hearing is expected to be conducted in July. NAR will continue to work with our Congressional allies on the NFIP issue and will keep you informed on our progress.