The Flood Insurance Implementation Reform Act of 2013

Congressman Cedric Richmond and Louisiana Delegation Introduce Flood Insurance Legislation

Congressman Cedric Richmond (LA-02), along with Congresswoman Maxine Waters (CA-43) and Members of the Louisiana delegation, have introduced The Flood Insurance Implementation Reform Act of 2013 - H.R. 2199...113th Congress. 

This bipartisan legislation will improve the National Flood Insurance Program by ensuring that the implementation of new rates do not burden homeowners or slow the recovery of our housing market.

“A consistent, affordable flood insurance program is critical to the U.S. economy, especially for areas recovering from recent flooding,” said Rep. Richmond “The Flood Insurance Implementation Reform Act delays certain provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 to make sure flood insurance rates don’t burden homeowners and home sales can move forward. The bill also makes sure FEMA is working with local communities to draft the most accurate flood maps possible – a fix that is sorely needed for many Louisiana communities.  I am extremely proud to work with Representative Waters on such important legislation that will help so many homeowners across the country.”

Original cosponsors include: Congressman Steve Scalise (LA-01), Congressman Bill Cassidy (LA-06), Congressman Rodney Alexander (LA-05), Congressman Charles Boustany (LA-03), Congresswoman Maxine Waters (CA-43), and Congresswoman Doris Matsui (CA-06).

“Since FEMA clearly is not ready to enact Biggert-Waters in a way that is fair and affordable for families in Southeast Louisiana, I’m proud to help lead the charge to delay the implementation of this Act as we work to fix these flawed changes to ensure the affordability and solvency of the flood insurance program for current and future generations,” said Rep. Scalise.“Louisiana families deserve a clear and full understanding of the upcoming NFIP changes and FEMA's inability to provide this information has jeopardized the viability of the entire program.”

“In April, I sent a letter to FEMA Administrator Fugate demanding transparency from FEMA. Today, along with Representative Richmond, I’m co-sponsoring bi-partisan legislation which would codify that request into law and allow for enough time for Congress and FEMA to ensure flood insurance rates remain reasonable,” said Rep. Cassidy. “While these are important initial steps, much more needs to be done to protect the homeowners of Louisiana. To that end, I will be working with Leadership and the Chairman of the relevant committees to develop a comprehensive long-term strategy to accomplish flood insurance reform.”

“This bill will protect countless homeowners from sudden, devastating hikes to flood insurance premiums, and will provide other common-sense clarifications to the Biggert-Waters Food Insurance Reform Act,” said Rep. Alexander.  “I am proud to join the other sponsors of this legislation, and urge prompt consideration by the House, so unnecessary hardships on many households and communities are averted.”

The Flood Insurance Implementation Reform Act of 2013 would:

·                       Delay the “sale requirement” in Sec 205 (g)(2) for five years allowing homes to be bought and sold without rate increases. *The Biggert-Waters Flood Insurance Reform Act of 2012 directed FEMA to charge actuarial rates to new home buyers.  This has had an adverse effect on real estate markets, as sellers want to keep their existing rates and buyers don’t want to pay new, higher rates. Under this bill, new home buyers would keep the rate of the previous owner.

·                       Delay increases to grandfathered rates under Sec 207 for three years *Section 207 of BW12 directs FEMA to increase rates over a five year period on any community that receives a revised or new flood map.  The bill would delay implementation of Sec 207 for three years, allowing FEMA and Congress the opportunity ensure the affordability of this provision.

·                       Eliminate the 50% cap on state and local contributions, encouraging local investment in flood mitigation measures. *Currently, while federal expenditures on these activities are counted toward a community’s eligibility for these reductions, there is a cap on the amount of state and local funds that can be included in this calculation.

·                       Allow FEMA to use other money in their budget to complete the currently required flood insurance affordability study and require that they notify Congress within 60 days of an alternative method of gathering this data. * Currently, TheBiggert-Waters Food Insurance Reform Act of 2012 directs FEMA and the National Academy of Sciences to complete a study of the affordability of flood insurance nine months after enactment of the law.

·                       Require FEMA to account for non-structural flood mitigation features in Flood Insurance Rate Maps. It would also require FEMA to work with states and local communities and property owners to identify these features. *Currently FEMA only acknowledges levees on flood maps that provide a 100 year level of flood protection. While FEMA is currently drafting rules for how non-accredited (below 100 year protection) levees should be included in flood maps, they don’t fully account for non-structural flood mitigation features like forests, marshland and other natural features.

The above bill was introduced on May 23, 2013 and referred to the House Commitee on Financial Services that same day.