You are here: Home Member Services News News Homeowner Flood Insurance Affordability Act Passed the House

Homeowner Flood Insurance Affordability Act Passed the House

NFIP160x160The United States House of Representatives passed the Homeowners Flood Insurance Affordability Act on March 4, 2014. Changes were made to the bill text so the next step is to send the legislation back to the Senate for approval and finally to the President's desk for enactment. As of today, March 13, the timing for a vote on the measure in the Senate remains uncertain.

The National Association of REALTORS® (NAR) is urging the Senate to vote on HR 3370 quickly.

"As the leading advocate for homeownership 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 (FEMA) accountable for flood insurance policy changes." The bill removes the authority of FEMA to increase rates to unjustified levels at the time of sale. This should stabilize local real estate markets and ensure that both property owners and prospective buyers are treated equally. Data from NAR shows that approximately 40,000 home sales were delayed or canceled due to confusion over flood insurance rates in the four months since the law's implementation.

This legislation does the following key things:

Reinstates Grandfathering
Caps Annual Rate Increases at 15%
Refunds policyholders who purchased pre-FIRM homes after Biggert-Waters and were charged higher rates
Permanently Removes the Sales Trigger

Michael Hecht, on behalf of the Coalition for Sustainable Flood Insurance, said it well when he said, "Through the leadership of Congressmen Scalise, Cassidy, and Richmond, as well as Congressman Michael Grimm and Financial Services Ranking Member Maxine Waters, we now have legislation that will address the most pressing needs of our coalition, including protecting people who played by rules, and settling real estate markets." He went on to say "The Coalition also wishes to thank Majority Leader Cantor and House Republican Leadership as well as Leader Pelosi and House Democratic Leadership for their dedication and resolve towards finding a long-term solution to flood insurance. We look forward to again working with our Senate partners to approve this legislation and send it to President Obama's desk."

The Louisiana REALTORS® Political Action Committee (LARPAC) in conjunction with the REALTORS® Political Action Committee (RPAC) is the foremost advocate of real estate in government. LARPAC's goal is to help ensure that our legislators know the importance of real estate issues before voting on bills which may negatively affect our market in Louisiana.

For questions about H.R. 3370 or for more information about how to get involved in LARPAC, contact Norman Morris (This email address is being protected from spambots. You need JavaScript enabled to view it. ).

You are here: Home Member Services News News Homeowner Flood Insurance Affordability Act Passed the House