March 21, 2014
The President signed bipartisan legislation to protect homeowners from significant increases in flood insurance premiums. The Homeowner Flood Insurance Affordability Act (H.R. 3370) previously passed the U.S. House by a bipartisan majority of 306-91 and the Senate by a bipartisan majority of 72-22. H.R. 3370 would:
- reinstate grandfathered status for covered properties,
- create an annual individual property rate cap (18 percent) to prevent year-over-year rate increases for homeowners,
- repeal the home-sale and new-policy rate-increase triggers,
- provide a refund for people who have realized large premium increases due to the purchase of a pre-FIRM subsidized home without the full transparency from the Federal Emergency Management Agency as to the new rate structure, and
- require FEMA to complete an affordability study and to propose an affordability framework to help homeowners cope with dramatically higher premiums.
CBAI and ICBA support a fully authorized, sustainable and fiscally responsible National Flood Insurance Program.