ShareThisHouse Committee Approves Important Flood Reform Legislation
Legislation that would help put more money into the coffers of the National Flood Insurance Program will be on its way to the U.S. House of Representatives. The House Financial Services Committee passed a bill that would remove some of the homes in the NFIP.
H.R. 3959, introduced by Rep. Scott Garrett, R-N.J., and committee Chairman Barney Frank, D-Mass., would allow for the phase-in of actuarial rates for certain properties built before the NFIP took effect. It would require any purchaser of any affected primary residence costing at least $600,000 to pay phased-in actuarial flood insurance prices using the same phase-in structure that non-residential and non-primary homes are currently subject to.
“This legislation will correct an inherent flaw in the NFIP,” said Carl Parks, NAMIC’s senior vice president for government affairs. “There is no reason federal taxpayers should have to subsidize property owners who choose to buy homes in known flood zones.”
If adopted, the legislation would take effect in 2011. According to its sponsors, the bill would provide additional resources to the NFIP in a fair and reasonable way and not subject current homeowners of pre-NFIP houses to unanticipated or unplanned increases in the flood insurance premiums.
Direct questions to NAMIC's Senior Federal Affairs Director Justin Roth.
Posted: Tuesday, November 06, 2007 12:00:00 AM. Modified: Tuesday, November 06, 2007 1:33:37 PM.
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