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Senate Committee Votes One-Year Delay in Some Flood Rate Increases

The Senate Appropriations Committee has voted for a one year delay in a provision of the 2012 law reauthorizing the National Flood Insurance Program (NFIP) that mandates phased-in rate increases for grandfathered properties...
July 23, 2013

The Senate Appropriations Committee has voted for a one year delay in a provision of the 2012 law reauthorizing the National Flood Insurance Program (NFIP) that mandates phased-in rate increases for grandfathered properties. The panel passed legislation authored by Sen. Mary Landrieu (D-La.) with language that essentially bans FEMA from using any appropriated funds from implementing for one year Section 207 of the Biggert-Waters Flood Insurance Reform Act. The language was included in the Homeland Security Department budget.

The House previously passed legislation that would result in a one-year delay of Section 207, but they passed it in an appropriations (spending) bill. A FEMA official made comments last month saying the language, should it become law, will have no effect since the NFIP uses premium dollars to implement Biggert-Waters, not appropriations. FEMA has since back-peddled on those statements. Reliable sources tell PIA that FEMA now believes the language would suspend implementation of Section 207 for one year.

Pressure to delay rate increases mandated in the Biggert-Waters Act is coming from residents of coastal areas affected by storms, including the Mid-Atlantic coast where Superstorm Sandy hit last year and the Gulf Coast, where Hurricane Katrina struck in 2005.

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