January 26, 2014

Senate poised to act on flood insurance bill

A bill providing for a more permanent delay, sought by NAFCU, in flood insurance premium increases under the 2012 Biggert-Waters Flood Insurance Reform Act is nearing action in the Senate, which is set today to continue consideration of a motion to proceed on the bill.

That bill, S. 1926, the "Homeowner Flood Insurance Affordability Act," was introduced Jan. 14 by Sen. Bob Menendez, D-N.J. It would delay implementation of flood insurance premium hikes when flood maps are redrawn. The bill has bipartisan support; cosponsors include Sens. Johnny Isakson, R-Ga., Mary Landrieu, D-La., and David Vitter, R-La.

NAFCU is strongly urging Congress to pass legislation delaying the premium hikes until an affordability study is completed. It has warned that sharp increases in premiums could impede home sales, block home buyers' access to credit and harm the housing recovery.

A partial delay on some increases has already been implemented under this year's federal spending package, but that package expires Sept. 30.