Washington, D.C. – November 1, 2013 – (RealEstateRama) — U.S. Representative Glenn ‘GT’ Thompson, R-Howard, has joined a bipartisan coalition of Members of Congress in introducing the Homeowner Flood Insurance Affordability Act (H.R. 3370), a bill to terminate rate increases under the Flood Insurance Reform Act of 2012 until two years after the Federal Emergency Management (FEMA) completes the rate affordability study originally mandated under the law.
“Despite action taken by Congress in 2012 on a set of long-overdue reforms that strengthen the solvency and administrative efficiency of this program, I have serious concerns over FEMA’s ability to properly implement these changes without causing massive rate hikes for policy holders,” said Thompson. “I have already heard from many in the 5th District who are being affected, and it’s simply not fair.”
Under the 2012 law, which was designed to more accurately match subsidies with actual flood risk, Congress mandated FEMA complete an affordability study to evaluate any unintended consequence as a result of the changes.
“FEMA has failed to complete the affordability study that was required under the law, which is critical to understanding the full scope of the new risk model,” Thompson stated. “We must ensure that FEMA can accurately determine risk under this new policy before moving forward.”
H.R. 3370 also requires FEMA to certify that their flood mapping process is accurate before any flood insurance premiums can be raised in the future.
“This bill is about retaining the financial viability of the National Flood Insurance Program while ensuring that we protect those it was designed to support,” Thompson added.