Homeowner Flood Insurance Affordability Act Becomes Law

DAILY REAL ESTATE NEWS | MONDAY, MARCH 24, 2014

President Barack Obama signed into law a bipartisan bill that will delay flood insurance rate hikes for property owners nationwide.

The Homeowner Flood Insurance Affordability Act repeals the Federal Emergency Management Agency’s authority to increase premium rates when a property is sold. It also refunds the excessive premium to those who bought a property before FEMA warned them of the rate increase. The bill limits premium increases to 18 percent annually on newer properties and 25 percent for some older ones. The senate approved the bill on March 13, and the House of Representatives March 4.

“Today, many months of hard work, negotiation and bipartisan compromise have culminated in a law that will end skyrocketing flood insurance costs for hundreds of thousands of home owners,” says U.S. Rep. Maxine Waters, D-Calif. “Though the measure is not perfect, it ensures there will be no more

dramatic rate increases for families currently facing un-affordable premiums.”

The rate hikes were part of the 2012 Biggert-Waters law, which had set out to gradually phase out flood insurance subsidies in an effort to shore up finances for the National Flood Insurance Program, which stands about $24 billion in debt, mainly due to catastrophic storms like Hurricane Katrina in 2005. As a result of the phase-out, some home owners who were not required to pay the full actuarial cost of their insurance were being faced with tens of thousands of dollars a year in flood insurance hikes.

“As the leading advocate for home and property owners, NAR applauds this bill for the relief and protection it will bring to businesses and families nationwide, who are experiencing financial hardship because of the extreme and sudden premium increases,” NAR President Steve Brown had said after the Senate had approved the bill. “We believe this legislation will bring relief to property owners by ensuring a slow and steady phase in of risk-based increases.”

Source: "Flood Insurance Rate Hike Delay Becomes Law," HousingWire (March 21, 2014)

By the Tracy Tidwell Team at ERA Henley Real Estate in Conway, AR
http://www.tracytidwell.com 
Tracy: 501-472-4709   ERA: 501-327-6731

The End of Over-priced Flood Insurance Rates

Senate Passes Flood Insurance Bill

DAILY REAL ESTATE NEWS | THURSDAY, MARCH 13, 2014
The U.S. Senate voted 72-22 yesterday to approve the bipartisan Homeowner Flood Insurance Affordability Act with amendments made by the House. The bill curtails flood insurance rate increases that property owners are facing across the country.

“We appreciate the Senate’s swift action on the legislation, which is a responsible and balanced solution to the skyrocketing flood insurance premiums affecting residential and commercial properties that were unintentionally triggered by the Biggert-Waters reforms to the National Flood Insurance Program,” said NAR President Steve Brown in a statement.

The 2012 Biggert-Waters law set out to gradually phase out flood insurance subsidies as a way to make up for the National Flood Insurance Program's $24 billion debt. As a result, home owners who had received federal aid to pay for flood insurance were being faced with tens of thousands of dollars a year in flood insurance hikes.

The Homeowner Flood Insurance Affordability Act repeals the Federal Emergency Management Agency’s authority to increase premium rates at time of sale or new flood map, and refunds the excessive premium to those who bought a property before FEMA warned them of the rate increase. It also limits premium increases to 18 percent annually on newer properties and 25 percent for some older ones.

Additionally, the bill adds a small assessment on policies until everyone is paying full cost for flood insurance.

“As the leading advocate for home and property owners, NAR applauds this bill for the relief and protection it will bring to businesses and families nationwide, who are experiencing financial hardship because of the extreme and sudden premium increases,” said Brown. “We believe this legislation will bring relief to property owners by ensuring a slow and steady phase in of risk-based increases.”

President Obama is expected to sign the bill into law when it arrives at the White House.

–By REALTOR® Magazine

The Tracy Tidwell Team at ERA Henley Real Estate in Conway, AR
http://www.tracytidwell.com
Tracy: 501-472-4709   ERA: 501-327-6731

House Passes Affordable Flood Insurance Bill

House Passes Flood Insurance With Amendments

By Austin Perez

March 5, 2014

On March 4, 2014, the House voted 306-91 to approve the Homeowner Flood Insurance Affordability Act (H.R. 3370) with amendments. The House amendments further rein in and hold the Federal Emergency Management Agency (FEMA) accountable for the Biggert-Waters implementation issues. As passed, the bill would repeal FEMA’s authority to increase premium rates at time of sale or new flood map, and refunds the excessive premium to those who bought a property before FEMA warned them of the rate increase. It also limits any premium increase to 18% annually and adds a small assessment on policies until everyone is paying full cost for flood insurance. The Senate must now pass the amended version before the bill can become law. NAR is pressing for a swift vote in the Senate.

House of Congress

Media Contact: Jenny Werwa / 202-383-1193 / Email

WASHINGTON (March 4, 2014) – The following is a statement by National Association of Realtors® President Steve Brown:

“The Homeowner Flood Insurance Affordability Act, H.R. 3370, passed overwhelmingly by the U.S. House today, is a responsible and balanced solution to the dramatic flood insurance rate increases unintentionally triggered by the Biggert-Waters reforms to the National Flood Insurance Program.

“As the leading advocate for home ownership and housing issues, NAR applauds this bill, which protects homeowners from the drastic premium increases that went into effect on October 1, 2013, and holds the Federal Emergency Management Agency accountable for any flood insurance policy changes.

“Homeowners nationwide, on the coasts and also inland, who are experiencing financial hardship because of extreme and sudden premium increases will feel immediate relief from this bill, which ensures a slow and steady phase in of risk-based increases.
“Most importantly, the bill removes FEMA’s authority to increase premium rates to unjustified levels at the time of a property’s sale, which will stabilize local real estate markets and ensure that both property owners and prospective buyers are treated equally.
“NAR data show that through January 2014, four months into the law’s implementation, about 40,000 home sales were estimated to be either delayed or canceled because of increases and confusion over flood insurance rates.
“Realtors® thank the sponsors of the Homeowner Flood Insurance Affordability Act, Reps. Michael Grimm, R-N.Y., Maxine Waters, D-Calif., and Bill Cassidy, R-La., whose tireless efforts produced a solution that is fair to property owners and taxpayers, and Majority Leader Eric Cantor, R-Va., for his outstanding leadership and advocacy for the bill.
“NAR urges the Senate to act swiftly to pass this urgent legislation and send it to the President for enactment.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Tracy Tidwell Team of ERA Henley Real Estate in Conway, AR
http://www.tracytidwell.com
Tracy: 501-472-4709   ERA: 501-327-6731