A bipartisan group of legislators announced the introduction of legislation on Friday that would reform the Biggert-Waters Flood Insurance Act to provide longer-term and comprehensive relief to increased premiums within the National Flood Insurance Program.
Rep. Michael Grimm (R-N.Y.) introduced the Homeowner Flood Insurance Affordability Act. The measure has drawn 235 cosponsors, including Reps. Bill Cassidy (R-La.) and Steve Scalise (R-La.).
“This legislation is important for Louisiana, and I am proud to have worked with Michael Grimm of New York and members of the Louisiana and other congressional delegations to produce this bold legislation that provides immediate relief,” Cassidy said. ” It permanently reinstates grandfathered flood insurance rates and protects those who built their homes to code. It also helps stabilize our real estate market so homebuyers don’t face large flood insurance premiums after buying a home. Louisiana families facing big flood insurance rate hikes need this legislation, and I will work for its passage.”
The measure would reinstate permanent grandfathering, which would prevent catastrophic rate increases that occur because of FEMA remapping. It would also provide a retroactive fund for those who have already dealt with premium increases through the sale or purchase of a home.
“The significance of this proposal cannot be understated,” Scalise said. “The flood insurance program has lapsed or nearly expired 18 separate times over the last five years, and led to the Biggert-Waters Act of 2012. Long-term, substantive structural solutions have always been the stated objective of NFIP reforms, and we cannot afford to lose sight of that goal now as we work to create certainty that ends the last five years of uncertainty and lapses….”
The bill would implement new affordablilty measures such as high-deductible options, map certification, flood protection funding, escrow requirement exceptions and optional monthly installments.