Washington, DC, March 6, 2014 -- The National Association of Home Builders has praised the House for passing flood insurance legislation that will benefit home buyers and home owners and provide a boost to home building and remodeling, while providing certainty and financial stability to the National Flood Insurance Program.
“By providing predictable premium increases, the Homeowner Flood Insurance Affordability Act will prevent home values from dropping and make the NFIP stronger and more effective for years to come,” said NAHB Chairman Kevin Kelly.
The bill will help address some of the costly and unintended consequences of the Biggert-Waters Flood Insurance Reform Act, including huge premium spikes and impacts on the sale, construction and remodeling of homes across the nation, NAHB said.
The Homeowner Flood Insurance Affordability Act will:
Provide a more affordable rate structure for policyholders.
Repeal the rate increases from the sale or transfer homes to full actuarial rates.
Create more accurate flood maps.
Provide reimbursement for successful consumer map appeals.
Return the “substantial improvement threshold” that triggers a higher flood insurance rate to the historic 50 percent level of a structure’s fair market value, which would preserve significant remodeling activity.
Reinstate an exemption in 53 communities nationwide for basements that are built in a flood-proof manner.