Homeowner Flood Insurance Affordability Act
Floor Speech
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Mr. President, I rise to urge a ``yes'' vote for final passage of the Homeowner Flood Insurance Affordability Act, the legislation we are here to consider. I will say the Senate went through a considerate, deliberate process where amendments were openly considered. I believe at the end of the process there was a 67-to-32 vote. We don't normally get two-thirds of the Senate agreeing on major issues, but we did at that time in a bipartisan effort.
My understanding is the legislation that ultimately we are considering today, which is basically foundationally what we agreed to here with some changes in the House, for which there was vigorous back-and-forth negotiation, passed by over 300 votes of the House of Representatives. So it seems to me it has a broad bipartisan support and was vigorously debated in that Chamber.
We have an opportunity to once again, after the bill we just passed, show this body can work. We had a respectable debate on good-faith amendments that were germane to the bill, lived up to the ideals of the Senate when it was before us. We were able to have bipartisan negotiations to improve the House-passed version of our bill so it would provide the levels of relief that are necessary. As a result, we are now poised to pass some critical legislation with overwhelmingly bipartisan support which provides real relief to millions of American families.
Just very briefly, because I hope to basically not use all the time so we can come to a vote and get our Members on their way, this new legislation is first of all budget neutral. It does not add a dime to the deficit, nor does it hurt the solvency of the National Flood Insurance Program. It prevents skyrocketing rate increases by implementing the following measures: One, it creates a firewall on annual rate increases. It repeals the property sales trigger that was depressing the values of homes. It repeals the new policy sales trigger. It reinstates grandfathering. It refunds homeowners who overpaid. It has something that I thought was critically important, that I thought was so important when we passed Biggert-Waters that I included it by amendment in the banking committee--an affordability goal.
Let us have the ability to ensure the solvency of the National Flood Insurance Program, but let us have an affordability mechanism which FEMA was, under the law that exists today, required to report to the Congress so we could ultimately come up with an affordability mechanism that would ensure that we have a solvent program and that we have an affordable program.
At the end of the day, insurance is about spreading risk over a wide pool and in doing so keeping rates affordable. With rates that I heard from homeowners in New Jersey that went from $1,000 to $10,000 or $15,000, not only is that not affordable but you are going to ultimately reduce the size of the risk pool in the National Flood Insurance Program. That means that is going to continue to drive up the cost, and we have a self-fulfilling cycle that ultimately does not provide for solvency.
So we have kept some of the most important reforms under Biggert-Waters, but we created a window of opportunity to make sure we get to affordability, that we help the real estate market, at a time when it desperately needs help, to be able to continue to prosper. The people's most significant asset in their life was built over a lifetime to buy a home, and that is where they ultimately have their greatest asset. It is where they leverage for their kid's education or emergency in health care and a whole host of plans for retirement.
So for millions of people in my State and across the country who ultimately did the right thing, followed rules, paid their premiums, met the higher standards, now to be told that in addition to--in New Jersey's case the consequences of Hurricane Sandy, and throughout the Northeast, flooding in Colorado or the Mississippi or a whole host of other places--but despite the fact they did everything right, through no fault of their own and having paid their fees, they are now in rate shock, an inability to keep flood insurance, which sometimes triggers a default on the mortgage, if they have a mortgage, or makes it impossible to sell their home.
That is what we are rectifying. It is our collective purpose. I urge a strong ``yes'' vote.
Finally, I wish to thank my colleagues who have worked with me on a bipartisan basis: My lead cosponsor Senator Isakson. I don't believe there is anybody in the Senate who has a greater depth of knowledge in the real estate industry and how this legislation affects that but also understands the consequences of individual families and is working in an incredibly strong way so we can get to this bipartisan moment. I appreciate all of his work.
Also, I have to say the tenaciousness and the ability to bring us to this point is that of Senator Landrieu, who has become an expert out of necessity from what happens in her State with Hurricane Katrina. The people of Louisiana are extraordinarily fortunate to have her as one of their Senators. She has been a guiding light throughout this process, tremendously helpful in getting us to today.
Lastly, I appreciate the leadership on both sides to get us to this moment so we could have this vote.
With that, I yield the floor.
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Mr. President, I understand we are going to be able to act on the Lee bill with a voice vote. As a result, I ask consent that the order with respect to a 60-affirmative-vote threshold with respect to S. 2137 be vitiated with all of the provisions of the previous order remaining in effect.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. MENENDEZ. Mr. President, in the interest of getting this bill to the President's desk and giving relief to flood victims across the country, and many other homeowners, we yield back the remainder of our time and ask for the yeas and nays.
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