On March 4, 2014, the U.S. House of Representatives approved H.R. 3370, a bill to reduce flood insurance premium rates mandated by the Biggert-Waters Act enacted two years ago. On March 14, 2014, the U.S. Senate approved the House version of H.R. 3370, and on March 21, 2014, the President signed the bill that will roll back the recent rate increases, and prohibit increases on “grandfathered” policies issued for homes constructed before flood maps were adopted.
In addition, H.R. 3370 will refund policy holders who have paid increased rates after July 6, 2012, reinstate the 50 percent substantial improvement threshold, and provide exclusions for detached structures.
This bill also lowers the Federal Emergency Management Agency’s (FEMA) authority to raise rates to 18 percent, and authorizes assessment of $25 per year on primary residents, and $250 per year on non-residential and non-primary residences to make up for projected revenue loss. H.R. 3370 requires FEMA to conduct an affordability study to include businesses and low-income households.
For additional information, please contact RCRC Regulatory Affairs Advocate Mary Pitto at 916.447.4806 or mpitto@rcrcnet.org.