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Flood Insurance Bill Advances in the Senate
The Senate Banking, Housing and Urban Affairs Committee passed legislation on May 25 to reform the National Flood Insurance Program (NFIP). In a victory for NAHB, the bill does not expand the current 100-year flood plain to the 500-year level. This expansion was attempted by the Senate last year, but defeated by decisive NAHB action.
However, the bill does mandate the purchase of flood insurance for properties located behind flood control structures once the current 100-year mapping effort is complete.
NAHB sent a letter to Senate Banking Committee members prior to the markup expressing the association’s opposition to this provision, noting that it would penalize communities that have opted to install flood control structures by requiring residents who have already paid taxes for these facilities to purchase flood insurance.
Rather than taking such a broad approach, NAHB urged the committee to first investigate how this action would affect property owners and local communities, and then to demonstrate that the increased premiums are necessary.
In the coming weeks, NAHB will urge the full Senate to overturn this provision in favor of language included in legislation approved by the House Financial Services Committee that calls for enacting a comprehensive study of this proposal before instituting a policy change.
For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144.
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