Flood Insurance Reauthorized 

On July 2, President Obama signed into law a bill (HR 5569) that provides short-term reauthorization of the National Flood Insurance Program (NFIP). The measure is retroactive to June 1, when the program expired, and extends the program through Sept. 30, 2010. NAA/NMHC strongly urged Congress to reauthorize the NFIP before it adjourned for the July 4 recess. In the meantime, Congress is still working through comprehensive reform legislation to address the need to return the program to solvency. According to the Government Accountability Office, the NFIP is not actuarially sound due to the number of policyholders who pay subsidized rates, the large number of repetitive-loss properties and the large number of property owners located in flood plains that do not purchase coverage despite a mandatory purchase requirement. NAA/NMHC continue to advocate for a long-term reauthorization, increased limits for apartment properties and the ability for older properties to maintain below-market rates.

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