Announcement from Community Associations Institute
By a vote of 67 to 32, the U.S. Senate has approved S.1926, the “Homeowner Flood Insurance Affordability Act,” legislation delaying substantial increases in flood insurance premiums. S.1926 now moves to the U.S. House of Representatives for further legislative action.
“When Congress reformed the National Flood Insurance Program in 2012 it was with the best of intentions in mind,” said Thomas Skiba, CEO of Community Associations Institute. “Unfortunately these changes made flood insurance coverage too expensive not only for individual homeowners, but also many community associations.”
The Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters Act) was intended to place the National Flood Insurance Program (NFIP) on sound financial footing through increases in flood insurance premiums. As the Biggert-Waters Act was implemented, homeowners and community associations saw flood insurance premiums soar to unaffordable levels.
While some property owners qualified for a 5-year phase-in of higher premiums, many did not. Homeowners seeking to sell their property did not qualify for the premium phase-in, effectively lowering real estate values by thousands of dollars. Faulty federal flood maps also caused homeowners living in properties constructed above flood levels to see unaffordable increases in flood insurance premiums