August 3, 2017
The National Flood Insurance Program (NFIP) is set to expire on September 30th without Congressional action. During the past few months, there has been a lot of activity on Capitol Hill surrounding the reauthorization of the NFIP. NAR has been actively engaged in trying to shape various pieces of legislation in accordance with NAR’s flood insurance policy principlespdf.
Here is the current state of play with just a few legislative weeks left on the Congressional Calendar before September 30th:
The House
The House Financial Services Committee (HFSC) has passed seven different bills, each one addressing a different component of the NFIP.
The largest of the seven bills is H.R. 2874, “The 21st Century Flood Reform Act” sponsored by Rep. Sean Duffy (R-WI). This bill is expected to become the vehicle for the six others and could come up for a vote by the House of Representatives in September.
NAR supports all seven bills. While NAR had initially opposed the 21st Century Act, the HFSC deleted the provision ending all grandfathering (section 506) and amended section 101 to slow the rate increases, clearing the way for NAR’s full endorsement.
Read the bill text with the changes in redline herepdf . NAR has also prepared a section-by-section analysispdf and talking pointspdf in support of the bill.
The Senate
Senate Banking Committee Chairman Mike Crapo (R-ID) and Ranking Member Sherrod Brown (D-OH) have introduced S. 1571 to extend the NFIP for 6 years with few, relatively minor reforms. NAR is working to amend the bill to reduce barriers to private market flood insurance and include other key mapping and mitigation reforms. A committee markup has not been scheduled.
What’s Next?
REALTORS® who meet with Members of Congress during the August Recess Period should ask their members of Congress to:
- Make sure the program does not lapse on September 30th; past lapses have stalled 1,400 transactions each day.
- Bring up and pass the "21st Century Flood Reform Act" in the House of Representatives.
- Amend S. 1571 to reduce barriers to the private market and include other key reforms supported by NAR.
Stay tuned for more updates as these various NFIP bills work their way through the legislative process.