A five-month extension of the National Flood Insurance Program (NFIP) was passed by Congress hours before its scheduled July 31 expiration and signed by President Trump later that day. The NFIP extension gives the House and Senate additional time to work towards long-term reauthorization.
If the National Flood Insurance Program had lapsed, the Federal Emergency Management Agency would not have been able to issue new policies, and its borrowing authority would have been reduced to $1 billion from $30.4 billion. This would have had major effects on the real estate markets in coastal areas, where a flood insurance policy is mandatory for obtaining a new mortgage.
- If the program had lapsed, the Federal Emergency Management Agency (FEMA) would not have been able to issue new policies, and its borrowing authority would have been reduced to $1 billion from $30.4 billion. This would have had major effects on the real estate markets in coastal areas, where a flood insurance policy is mandatory for obtaining a new mortgage. (BGov, July 31)
- On July 25 the House voted 366-52 to pass the National Flood Insurance Program Extension Act of 2018 (S.1182), as amended, and on July 31 the Senate followed suit with a vote of 86-12. The measure reauthorizes FEMA to enter into new contracts for flood insurance and borrow from the Treasury up to specified amounts through Nov. 30, 2018 - the official end of the Atlantic hurricane season.
- The bill received pushback from Senate and House Republicans who wanted reforms to make the NFIP financially sustainable - after more than a decade of historic storms put the program deeply into debt. (CQ, July 25)
- A White House statement last week supported efforts to keep the flood insurance program from expiring, but noted Congress needs to enact long-term changes to ensure the program's long-term viability. (The White House, July 25)
- In November 2017, the House passed long term legislation - the 21st Century Flood Reform Act (H.R. 2874) - that would reform and reauthorize NFIP for five years. The bill included: funding for flood mitigation assistance; lower flood insurance rates, support for the private flood insurance market, modernization of flood zone mapping; and flood mitigation practices for homebuilders and land developers. However, the measure was not been taken up in committee in the Senate. (Roundtable Weekly, Nov. 17, 2017)
The Roundtable will continue to work with lawmakers and our coalition partners to assist with NFIP reforms and a long-term reauthorization, that would help protect the nation's commercial and multifamily business-owners, their properties, and residents.