NAHB Supports Extension of Flood Insurance

Washington, DC, April 22, 2010--The National Association of Home Builders said it is supporting congressional efforts to enact a long-term extension of the National Flood Insurance Program (NFIP) that would ensure that the federally-backed flood insurance program remains available, affordable and financially healthy.

Testifying before the House Financial Services Subcommittee on Housing and Community Opportunity, Barry Rutenberg, second vice chairman of NAHB and a home builder from Gainesville, Fla., urged Congress to approach this legislation with care.

"The NFIP is not simply about flood insurance premiums and payouts," said Rutenberg. "Rather, it is a comprehensive program that guides future development and mitigates against future loss. While a financially stable NFIP is in all of our interests, the steps that Congress takes to ensure financial stability have the potential to greatly impact housing affordability and the ability of local communities to exercise control over their growth and development options."

The NFIP recently experienced several short-term lapses in authorization, forcing many home buyers to delay or cancel closings due to the inability to obtain NFIP insurance for a mortgage. In other instances, builders were forced to stop or delay construction on a new home due to the lack of flood insurance approval, resulting in unnecessary delays and job losses.