Bill Give Hope For Long-Term Extension Of Flood Insurance Program

WASHINGTON, DC -- Proposed legislation on Capitol Hill is giving hope to homeowners living in flood zones who have been taunted by lapses in the federally-funded National Flood Insurance Program, or NFIP, since the last long-term program expired almost two years ago, but experts say getting it passed could be an uphill battle.

U.S. Sen. Elizabeth Warren (D-Mass.) joined on Thursday joined a bipartisan group her Senate colleagues in unveiling new, comprehensive legislation to extend the National Flood Insurance Program for five years, but the legislation includes a series of sweeping reforms to address the waste, abuse and mismanagement plaguing the system that are in direct competition with a similar bill moving for a vote soon on floor of the House.

"There are a lot of consumer protections built into this, but unfortunately this Senate bill has a lot of what we are calling 'poison pills' that the House would never agree to," Joe Rossi, chairman of the Massachusetts Coastal Coalition, said. "These are non-starters with the House and with these conflicts, we are in a situation where we have another stalemate with this process."

More than 5 million American families depend upon the NFIP, including more than 61,000 homeowners across 330 communities in Massachusetts. Since the last legislation granting a five-year extension to the program expired on Sept. 30, 2017, Congress has been unable to agree on legislation that will extend the NFIP more than a few weeks or months at a time, which Rossi said creates a lot of uncertainty for homeowners as well as the industry and people trying to purchase homes in a flood zone.

The program has lapsed for a total of 8 days over the past two years.

"This creates a ton of anxiety and uncertainty for everyone one involved," Rossi said. "We need some type of certainty.

Congress must reauthorize the program again before it expires on Sept. 30 to avoid another lapse.

Sen. Warren said the Senate bill she is co-sponsoring tackles systemic problems with flood insurance, puts it back on solid fiscal ground, and reframes the nation's entire disaster relief program to one that focuses more on prevention and mitigation in order to spare the high cost of rebuilding after flood disasters.

"With rising sea levels and heavier rainfalls bearing down on our communities, it's critical that we reform our flood insurance program to reduce financial risk for families and bring people the peace of mind they deserve," Warren said in a statement. "That's why I'm pleased to support this legislation, which would take several steps to improve resiliency, and tackle the waste, and mismanagement plaguing our current flood insurance system."

Besides extending the NFIP for five years, the bill would protect policyholders from exorbitant premium hikes by capping annual increases at 9 percent, create a voucher program for low- and middle-income homeowners and renters if their flood insurance premium causes their housing costs to exceed 30 prercent of their adjusted gross income, create a path toward solvency for the financially-strapped program and place limits on private insurance company profits.

The bill also aims to invest more in mitigation efforts and better technology for creating more accurate flood maps. It would also impose stricter deadlines for payouts to homeowners affected by flooding, some of whom wait months to years for payouts.

Reach Erin Tiernan at etiernan@patriotledger.com or 617-786-7320. Follow her on Twitter @ErinTiernan.

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