Multifamily and Commercial Real Estate Groups Urge Reforms of Flood Program
NAA/NMHC joined 14 other real estate trade groups in sending a letter to members of the House and Senate calling for the reauthorization of the National Flood Insurance Program (NFIP) and for reforms that would help the program better address the needs of the multifamily and commercial sectors. In the letter, the groups advocate for the adoption of many of NAA/NMHC’s priorities in the NFIP reauthorization, including:
- Expanding the private flood insurance market;
- Improving coverage options for multifamily and commercial property owners through the creation of Business Interruption coverage through the NFIP;
- Moving commercial and multifamily claims to Replacement Cost Value (RCV) as opposed to Actual Cost Value (ACV);
- Allowing for multiple buildings to be covered by one NFIP policy;
- Removing the federal mandatory purchase requirement for high-value properties;
- Increasing the accuracy of the FEMA flood mapping process and overhauling the map appeals process to make it far less costly to individual owners; and,
- Prioritizing more effective pre-flood mitigation and employ resources to help commercial and multifamily owners benefit from existing mitigation programs.
The letter was sent in advance of the House Financial Services Committee releasing its draft proposal for reauthorization, which is expected shortly. The NFIP expires on Sept. 30, with leaders of both the House and Senate committed to avoiding real estate market disruptions.
Provided by NMHC as part of the NAA/NMHC Joint Legislative Program