On Tuesday the House considered H.R. 2874, the 21st Century Flood Reform Act. This legislation extends the National Flood Insurance Program (NFIP) for five years. Authorization for the program expires on December 8th. While the NFIP is in need of reform, this legislation takes the wrong approach and will raise premiums for many homeowners. Dwellings that were constructed before the first flood insurance maps were established must absorb a minimum annual increase of 6.5%. It also increases fees mandated under the Homeowner Flood Insurance Affordability Act (HFIAA) and gives FEMA the authority to charge an annual fee for homeowners who pay their insurance in monthly installments. The NFIP is currently $20 billion in debt and H.R. 2874 does nothing to address this problem. This burdens policy holders who are paying $400 million a year in interest on this debt. There is no money dedicated to updating flood maps or improving the technology associated with creating the maps.
This legislation also denies flood insurance coverage on any property with claims that are more than 3 times the replacement value of the property, even though payouts under NFIP are capped regardless of replacement value or total damage cost. This new provision encompasses the life of the property – from when it was built to the present. It is easy to see how a home in a flood prone area could lose its flood insurance as a result of this arbitrary provision. This will hurt property values and in turn hurt neighborhoods.
Thanks to Rep. Capuano (D-MA) for the above explanation; Rep. Reed seldom explains his votes.
Rep. Reed in the past has had much to say about flood insurance. One wonders what he thinks about H.R. 2874. Rep. Reed voted AYE.
TOM REED VOTES AGAINST FLOOD INSURANCE REAUTHORIZATION; Calls Lack of Action on Flood Maps Impacting Southern Tier Homeowners “Unacceptable and Irresponsible”
… Congressman Tom Reed voted against extending the National Flood Insurance Program today as a protest against the lack of resolution of Federal Emergency Management Administration (FEMA) flood mapping issues in the Southern Tier. “I want to be clear that I am …
REP. REED HEARS LOCAL FLOOD MAPPING, FLOOD INSURANCE CONCERNS FROM COMMUNITY
… local home and business owners to hear their concerns on flood insurance premium increases being felt across the district and the need for FEMA to finalize flood maps in the area. Reed and the group of about 30 homeowners and local …
REED SEEKS RELIEF FROM SKYROCKETING FLOOD INSURANCE COSTS FOR TAXPAYERS AND BUSINESS OWNERS
… legislation to bring relief to homeowners from skyrocketing flood insurance costs. Reed met last week with homeowners and local business and elected officials to hear their concerns on flood insurance premium increases, looking for their suggestions on how to …
REED ANNOUNCES FEMA FUNDING FOR FLOOD PROTECTION AND PREPAREDNESS IN THE SOUTHERN TIER AND FINGER LAKES
… will provide over $3 million in federal funds to update flood warning systems and prepare for flooding in communities in the Southern … event of severe flooding,” Congressman Reed said. “Such flood warning systems and the application of stream gages in our river basins …
Reed Fights for Flood Control Efforts
… The bill, WRDA, authorizes the first step in the federal flood control project’s process. It requires the Army Corps of Engineers to … to determine the potential cost, impact and practicality of flood control efforts. The bill included Cattaraugus Creek and Silver …
REED ENCOURAGES GOVERNOR CUOMO TO ENSURE FUNDING FOR COMMUNITIES HIT WITH FLOOD DAMAGE
Tom Reed is calling on Governor Cuomo to guarantee funding the local 25% cost share for our communities as a way to support the infrastructure needs for severe storms that occurred in New York State earlier this year, affecting the 23rd…
Reed Aims Bill At Flood Relief Assistance
Lansing Star This week, Tom Reed announced his legislation to assist victims of natural disasters. The bill, known as the National Disaster Relief Tax Act, is aimed at offering assistance to the victims of federally declared…
Reed Stands Up for Flood Victims
This week, Tom Reed announced his legislation to assist victims of natural disasters. The bill, known as the National Disaster Relief Tax Act, is aimed at offering assistance to the victims of federally declared disaster areas, in order to…