House and Senate Hearings Take Fresh Look at Flood Insurance
With the expiration of the National Flood Insurance Program (NFIP) looming in September, House and Senate leaders have added reauthorization of the program to a must-do list of items for Congress. While much work has been happening behind the scenes, hearings held this month in the House Financial Services Committee’s Housing and Insurance Subcommittee and the Senate Banking Committee begin the long-awaited, public process to reauthorize the NFIP. NAA/NMHC and our members have worked tirelessly to meet with and educate key stakeholders about the critical role of the NFIP to our industry and the need for a long-term reauthorization of the program.
NAA/NMHC submitted statements for the record in advance of both hearings and welcomed them as a good first-step in moving towards reauthorizing the NFIP, which is critical to most apartment communities across the country where it is the only available option for flood coverage. In addition to calling for a long-term reauthorization of the program, NAA/NMHC have specifically called attention to the need for Congress to include sensible reforms to the program including improving the accuracy of FEMA flood maps; increasing apartment communities’ access to flood mitigation funding and programs; expanding the NFIP to include Business Interruption coverage for rental properties; and providing Replacement Cost Value (RCV) instead of Actual Cost Value (ACV) to damaged apartment properties in the wake of a disaster.
Testifying at both hearings was Roy Wright, FEMA’s Deputy Associate Administrator and the NFIP’s head. Wright joined NAA/NMHC in calling for a long-term reauthorization of the program to ensure real estate market stability and also has called for many of the same programmatic reforms as NAA/NMHC such as increased mapping accuracy and prioritization on pre-disaster mitigation efforts.
NAA/NMHC will continue to advocate for a long-term reauthorization of the NFIP and common-sense reforms that ensure all rental properties continue to have access to affordable, quality flood insurance.
Provided by NMHC as part of the NAA/NMHC Joint Legislative Program