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Flood Insurance Program Extended to February 28, 2010

A Department of Defense appropriations bill recently passed by Congress included a provision to extend the National Flood Insurance Program (NFIP) for two months until...
December 22, 2009

A Department of Defense appropriations bill recently passed by Congress included a provision to extend the National Flood Insurance Program (NFIP) for two months until February 28, 2010, marking it the third short-term extension approved by Congress this year.

Legislation that would extend the NIFP until March 31, 2010, had been introduced by U.S. House Financial Services Committee Chairman Barney Frank (D-Mass.) and House Financial Services Housing Subcommittee Chairman Maxine Waters (D-Calif.) and referred to the U.S. Senate Committee on Banking, Housing, and Urban Affairs, but a concentration on healthcare reform meant the bill was not addressed.

A long-term reauthorization and reform measure regarding the NFIP would require separate legislation in 2010.

PIA believes that comprehensive reform of the National Flood Insurance Program (NFIP) must be addressed during 2010. The current situation with Congress kicking the can down the road by issuing short reauthorizations is not sustainable. These short extensions are insufficient to maintain certainty in the market. Many mortgage lenders require flood insurance before real estate closings can occur. Congress creates an air of uncertainty by authorizing NFIP for only weeks or even days at a time.

Comprehensive reform to the flood insurance program - when it is addressed by Congress - should be paired with a five-year reauthorization.

 

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