Rep. Faso Legislation Would Assist Local Flood Victims

WASHINGTON, April 26 -- Rep. John Faso, R-New York, issued the following news release:

Congressman John Faso (R-NY) today announced the introduction of H.R. 5618, The Flooded Homeowner Financial Relief Act of 2018. This legislation will provide regulatory relief for homeowners who face onerous and unnecessary flood insurance premiums on homes that the government has already agreed to acquire. Further background is at the bottom of this release.

Congressman Vicente Gonzalez (D-TX) is the Democratic co-lead of the legislation.

Homeowners of the Village of Sidney in New York State have been faced with this problem since their homes were damaged by Hurricane Irene and Tropical Storm Lee flooding in 2011. Many homeowners who voluntarily agreed to participate in a buyout program with New York State have been waiting patiently for the government to acquire their flood-damaged homes. Most have moved to new homes and are forced to pay flood insurance on condemned homes that are slated to be bought out by the state in part using federal funds.

"Losing a home to flooding is terrible and economically distressing, but continuing to have to pay insurance premiums on a house that can't be lived in and already sold to the government is needless and burdensome," said Faso. "This legislation will reduce that unnecessary burden and help families recover and move on from the devastating damage that floods can cause."

"I want to thank Congressman Faso for proposing legislation to eliminate premiums for flood insurance for our homeowners whose homes have been approved for buy outs." - Mayor Andrew Matviak, Village of Sidney

"This proposed bill would provide critically needed relief to homeowners with limited income who are presently required to carry the cost of flood insurance on a property they ultimately will not own or ever utilize. Particularly for Seniors advanced in years, this is more than much needed assistance. For them, it may well be a lifeline, as they seek to manage their limited resources. This bill needs to be considered with the urgency required by the circumstances of these vulnerable persons who deserve every consideration that can be given them." - Supervisor Gene Pigford, Town of Sidney

Background

In the wake of flooding and other natural disasters, many homeowners will opt into 'buyout' agreements with their local or state governments who purchase the damaged and flood-vulnerable homes. Pursuant to the Flood Disaster Protection Act of 1973, people who own property in a FEMA-designated flood zone are required to have flood insurance. This requirement is not currently waived once homeowners reach an agreement with the respective purchasing government, which then requires homeowners to continue to pay high cost flood insurance payments even though the house in uninhabited.