WASHINGTON – (RealEstateRama) — The National Association of Home Builders (NAHB) today reached an agreement with leaders of the House Financial Services Committee to craft a viable, long-term flood insurance reauthorization bill that will keep the National Flood Insurance Program (NFIP) fiscally sound and enable home builders to provide safe and affordable housing to consumers.
“NAHB commends House Financial Services Chairman Jeb Hensarling and Housing Subcommittee Chair Sean Duffy for their leadership in working with us to produce a bill that will preserve rate affordability, shore up the NFIP and address the concerns of the housing community,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “With the NFIP set to expire on Sept. 30, we urge the House to pass this bill quickly.”
NAHB and the committee leadership have worked together to provide a five-year reauthorization of the NFIP that:
- Eliminates a provision that would have ended NFIP coverage of new homes constructed in the 100-year floodplain;
- Ensures that “grandfathering” will remain available for all policyholders if their risk changes, which will enable home owners to have continued access to affordable flood insurance; and
- Sustains affordability by raising the annual premium floor for rate hikes from its current 5 percent level to 6.5 percent instead of the proposed rate of 8 percent.
“As a builder who knows first-hand how flood insurance rate increases can hurt home owners, businesses and communities, I am pleased that the House Financial Services Committee has made such important progress on reauthorizing the NFIP,” said Randy Noel, a home builder from LaPlace, La. and NAHB first vice chairman. “This bill is critical to allow more borrowers to be covered by flood insurance and ensure that we can continue to provide safe and affordable housing in Louisiana and across the nation.”