An Update on Flood Insurance Reform

Press Release

Last month, President Obama signed into law the Homeowner Flood Insurance Affordability Act of 2014. This law repeals and modifies certain provisions of the Biggert-Waters Flood Insurance Reform Act, which was enacted in 2012, and makes additional program changes to other aspects of the program not covered by that Act.

For months, Congress has been working to address the unforeseen consequences of the Biggert-Waters Flood Insurance Reform Act of 2012, as well as to improve the accountability of the Federal Emergency Management Agency when it comes to the implementation of the flood insurance program.

Rep. McCarthy was a co-sponsor of this legislation which passed in the House in early March, and overwhelmingly passed in the Senate shortly after.

"As a Long Islander, I understand the frustration my neighbors are experiencing regarding flood insurance rate increases, especially in the wake of Superstorm Sandy. With the rising cost of other expenses, the financial burden of mandatory flood insurance has created an additional strain on many Long Island homeowners," said the Congresswoman. "Reducing the financial burden and ensuring that the cost of flood insurance will not force anyone from their home, or reduce their ability to sell their home is a good start to brining relief to those who have been burdened by FEMA's flood insurance program. I am pleased to see that my constituents will benefit from this legislation in the near future."

The Homeowner Flood Insurance Affordability Act contains a number of key provisions including: the repeal of certain rate increase triggers such as the sale of a home; the lowering of FEMA's ability to raise rates from 20%-15%; the restoration of the "grandfathering" provision that would allow homeowners of properties built to code in the past to not have to worry about massive increases due to new mapping; and the requirement of FEMA to complete the affordability study and framework.

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