This week, the U.S. Senate approved the house version of a bill to reduce flood insurance premium rates mandated by the Biggert-Waters Act enacted two years ago. H.R. 3370 would roll back the recent rate increases and prohibit increases on “grandfathered” policies issued for homes constructed before flood maps were adopted. In addition, it will refund policy holders who have paid increased rates after July 6, 2012, reinstate the 50% substantial improvement threshold, and provide exclusions for detached structures.
Also, this bill lowers FEMA’s 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. The Senate passed the legislation 72-22, and the bill is now headed to the President’s desk.
For additional information, please contact RCRC Regulatory Affairs Advocate Mary Pitto at 916.447.4806 or mpitto@rcrcnet.org.