Landrieu: FEMA Fully Repeals Property-Sales Penalty

Landrieu: FEMA Fully Repeals Property-Sales Penalty

During call with NFIP Director, Senator presses for efficient, transparent process for rate changes and refunds

WASHINGTON – May 7, 2014 – (RealEstateRama) –— After a phone call with National Flood Insurance Program (NFIP) Associate Administrator David Miller today, U.S. Senator Mary L. Landrieu, D-La., announced that the Federal Emergency Management Agency (FEMA) has fully repealed one of the most harmful provisions from Biggert-Waters that made it impossible for new buyers of homes or businesses to assume a property’s existing flood insurance policy. The provision, repealed by the Homeland Flood Insurance Affordability Act, had frozen real estate markets throughout the nation and threatened to wipe out the equity thousands of middle class families had built in their homes. Up to 82,000 properties in Louisiana—and 1.1 million nationwide—will benefit from today’s announcement.

Sen. Landrieu also pressed Associate Administrator Miller to quickly implement an efficient and transparent system to update their rate tables and process refunds authorized by the Homeowner Flood Insurance Affordability Act.

“For many middle class families, the single-most important investment is their home. Biggert-Waters threatened to eliminate the equity they had built and rob them of their most valuable asset. The elimination of the property sales penalty will restore confidence in the real estate market and allow up to 82,000 middle class families in Louisiana to continue living where they work to produce the goods and products necessary for continued economic growth,” Sen. Landrieu said. “While I am encouraged by today’s announcement, FEMA must continue to implement the Homeowner Flood Insurance Affordability Act quickly and bring essential relief to the 400,000 families in Louisiana and millions more across the country who rely on accessible and affordable flood insurance. During my conversation with Mr. Miller, I urged him to be transparent throughout the implementation process. FEMA must update its rate tables to reflect the lower rates established in the NFIP reform bill, and the agency still needs to establish an efficient process for issuing refunds to policyholders that paid more than they should.”

View a timeline of Sen. Landrieu’s work to fix flood insurance and learn more about her #MyHomeMyStory effort, a movement to make flood insurance affordable

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