With the latest extension of the National Flood Insurance Program (NFIP) set to expire on Sept. 30, shortly before adjourning for the November elections Congress approved legislation (S. 3814) to extend the program through Sept. 30, 2011and President Obama signed the measure into law.

NAHB supports a long-term extension of the NFIP to ensure that the federally backed flood insurance program remains available, affordable and financially healthy. A strong, viable national flood insurance program enables home builders to continue to provide safe, decent and affordable housing to consumers.

Since 2008, the NFIP has experienced several short-term authorization lapses that have caused problems for scores of local housing markets in flood-prone areas because new flood policies could not be written and thousands of real estate transactions could not go forward.

The one-year extension of the NFIP will ensure that the nation’s real estate markets operate smoothly and without delay, providing stability to home owners, lenders and insurers while Congress considers its next steps to improve the program.

Established in 1968, the NFIP offers affordable flood insurance to home owners and businesses in flood plains and other low-lying areas that otherwise might not be able to obtain coverage.

More than 20,000 communities nationwide participate in the insurance program, which currently covers about 5.5 million policyholders.

To view the legislation, click here and type the bill number in the box at the upper center of the page.

For more information, e-mail Scott Meyer at NAHB, or call him at 800-368-5242 x8144.