Amendment co-sponsored by Mississippi Rep. Steven Palazzo passes, delaying Biggert-Waters flood insurance hikes

By Gareth Clary |GulfLive.com 

Congressman Steven Palazzo, R-Biloxi

WASHINGTON - Congressman Steven Palazzo, R-Biloxi, along with Representatives Bill Cassidy of Louisiana, Michael Grimm of New York and Cedric Richmond of Virginia announced passage of an amendment to the FY14 Homeland Security Appropriations bill that would delay scheduled increases to flood insurance rates due to kick in on coastal residents later this year.

The amendment blocks the implementation of Section 207 of the Biggert-Waters Flood Insurance Reform Act. 

Palazzo introduced similar legislation earlier this year. Today's amendment passed overwhelmingly by a vote of 281-146 and had the support of the National Association of Realtors, the American Bankers Association, and the National Association of Home Builders.

"The passage of this amendment is an enormous victory for the Mississippi Gulf Coastm" said Palazzo. "Thousands of people who built back after Hurricane Katrina and those now building back after Hurricane Sandy are facing steep flood insurance rate increases under current law. 

"While we must ensure the flood insurance program remains fiscally solvent, we must do so in a compassionate way that doesn't penalize those who have followed the rules. This amendment would provide time for FEMA to study the affordability of flood insurance program changes, providing much-needed relief for homeowners and businesses across the Gulf Coast." 

The Biggert-Waters Act, which was meant to overhaul the in-debt program and make it self-sufficient, was signed into law last July.

The act ends flood insurance subsidies to homeowners by 2014 and generally increases premiums as flood insurance risk maps are updated.

The new rates are meant to reflect true flood risk, but many have argued the price hikes will devastate property owners. There has been national debate over how to handle the increases. 

"The reforms under the Biggert-Waters Act have created flood insurance rates which could destroy south Louisiana homes," Cassidy said. "They would also be devastating for coastal communities around the country.

"This amendment will block those rate increases and give us time to carefully modify the Biggert-Waters Act. It is important to have a self-sustaining flood insurance program. 

However, it must account for the flood protections throughout south Louisiana that make massive flood insurance rates unnecessary. I will lead in making sure that occurs."

According to Grimm, "There are Staten Islanders who have lost everything in Superstorm Sandy, with years to go before their lives return to normal. Now they are up against a tremendous flood insurance rate hike that will only victimize them further. By delaying the rate hikes mandated by Section 207 of Biggert-Waters, we can provide a window of respite for many struggling to rebuild, while Congress works toward a solution that eases the burden on homeowners and keeps flood insurance affordable for those who need it most."