New Stakeholder Groups and Local Officials Support the Homeowner Flood Insurance Affordability Act
WASHINGTON – February 26, 2014 – (RealEstateRama) — Today, several national and Louisiana stakeholder associations and their representatives, along with Jefferson Parish President John Young, announced their support for the substitute amendment to the Homeowner Flood Insurance Affordability Act. This legislation, which Congressman Bill Cassidy helped announce Friday evening, would provide comprehensive and long-term relief for homeowners across the nation. Dr. Cassidy worked on this legislation with Members of Congress from both sides of the aisle and across the country on this legislation. He released the following statement:
“Realtors, homebuilders, credit unions, bankers and business owners throughout Louisiana and America know why affordable flood insurance is important. This legislation will help protect families from experiencing large rate increases and allow our coastal economy to thrive. The Homeowner Flood Insurance Affordability Act accomplishes these goals. I will work to pass this bill in the House with members from across the country and will encourage the President and Senate to support it.”
Jefferson Parish President John Young and representatives from nine local, state and national stakeholder associations offered statements or letters of support for the Homeowner Flood Insurance Affordability Act. State and local associations include Louisiana REALTORS®, the Bayou Board of REALTORS® and the Louisiana Bankers Association (which has a letter of support linked below). Letters of support were also provided by the National Association of REALTORS®, the American Bankers Association, the National Association of Federal Credit Unions, the Independent Community Bankers of America, the National Association of Home Builders and the National Association of Counties, which are linked below.
Excerpts from the letters and the other statements of support are below:
Hon. John Young, Jefferson Parish President: “The legislation recently introduced by the House of Representatives is a major step forward for the people of Jefferson Parish and Louisiana. The proposed bill helps to stabilize the uncertainty of the housing market, banking industry and local and state economies, while ensuring flood insurance remains affordable to all Americans. I am certain Congressman Cassidy and the Louisiana delegation will continue to fight for bi-partisan passage of this vital legislation that is necessary to preserve and protect the American dream of home ownership.”
Mr. Malcolm Young, CEO, Louisiana REALTORS®: “With the passage of Biggert Waters, the real estate market has been faced with uncertainty with flood insurance rates fluctuating, as well as questions on the timing of remapping, this measure by the House of Representatives will provide stability in the housing market while long term solutions with flood insurance and disasters are developed.”
Ms. Betty Sun, President of Bayou Board of REALTORS®: “After reviewing the Homeowner Flood Insurance Affordability Act, written in part by Dr. Bill Cassidy and other members of our Congressional delegation, I would like to thank them for their work on this legislation, for recognizing the importance of this issue, and the devastating impact it can have on the Bayou Region. Flood insurance reform is vital for my community. The Homeowner Flood Insurance Affordability Act provides those reforms, including the reinstatement of grandfathered flood insurance rates. I look forward to continue working with Dr. Bill Cassidy and other members of our Congressional delegation on this important issue.”
Mr. Robert T. Taylor, CEO, Louisiana Bankers Association (full letter): “I am writing on behalf of the Louisiana Bankers Association to express our support for the substitute amendment to H.R. 3370 (“Homeowner Flood Insurance Affordability Act of 2014”)… We believe it is critical that the ‘sales trigger’ for Pre-FIRM properties in Section 205 be permanently addressed to prevent some homes and businesses from becoming unsellable, and for those property owners to avoid having their property values plummet and their hard earned equity erased. It is our understanding that the substitute amendment addresses this concern by allowing Pre-FIRM property purchasers to maintain the rate of their seller by fulfilling certain requirements. We also strongly support the repeal of Section 207 dealing with ‘grandfathered’ properties, which we understand the amendment also accomplishes.”
Mr. Steve Brown, 2014 President, National Association of REALTORS® (full letter): “On behalf of over 1 million members, the National Association of REALTORS® strongly urges you to vote for H.R. 3370, the Homeowner Flood Insurance Affordability Act with an amendment. The bill as amended would resolve most of the unintended consequences and uncertainties created by implementation of the Biggert-Waters law and still raise revenue. It would correct the unintended consequences by repealing key provisions that are driving the most excessive and inaccurate rate increases imposed on recent home purchases. It would also require that the Federal Emergency Management Agency (FEMA) refund excessive premiums to those who already bought a home but were not warned by FEMA of the increase before purchasing the property.”
Mr. James Ballentine, Executive Vice President for Congressional Relations and Political Affairs, and Mr. J. Kevin A. McKechnie, Senior Vice President and Director, Office of Insurance Advocacy, American Bankers Association (full letter): “The American Bankers Association and the American Bankers Insurance Association strongly supports H.R. 3370, the Homeowner Flood Insurance Affordability Act being taken up by the House of Representatives this week. This important bill addresses National Flood Insurance Program (NFIP) affordability issues and corrects other unintended consequences resulting from earlier reform efforts.”
Ms. Carrie Hunt, Senior Vice President of Government Affairs and General Counsel, National Association of Federal Credit Unions (full letter): “On behalf of the National Association of Federal Credit Unions (NAFCU), the only trade association exclusively representing our nation’s federal credit unions, I write today in support of the Homeowner Flood Insurance Affordability Act of 2014 (H.R. 3370) as amended by Representatives Michael Grimm (R-NY) and Bill Cassidy (R-LA). As you know, this important legislation would stop drastic premium increases under the National Flood Insurance Program (NFIP) while bolstering the NFIP reserve fund through an assessment of policyholders.”
Mr. Camden Fine, President and CEO, Independent Community Bankers of America (full letter): “On behalf of the 7,000 community banks represented by ICBA, I write to express our support for the Homeowner Flood Insurance Affordability Act of 2014 (H.R. 3370), introduced by Rep. Michael Grimm, which would provide relief from flood insurance premium ‘shock’ that is depressing home values and freezing the market in certain communities. Importantly, H.R. 3370 will provide this relief while ensuring the actuarial soundness of the National Flood Insurance Program (NFIP).”
Mr. James Tobin, III, Senior Vice President and Chief Lobbyist, National Association of Home Builders (full letter): “We are especially concerned about unaffordable premiums and inaccuracies in FEMA’s new flood maps. These issues are seriously impacting the construction, remodeling and sale of homes throughout the country at a time when the housing industry is beginning to recover. The Homeowner Flood Insurance Affordability Act as amended, resolves these issues by providing a more affordable rate structure for policyholders, and repeals point-of-sale rate increases… These provisions will help prevent undue hardship on the recovering housing market, protect home values and increase the viability of the NFIP.”
Ms. Linda Langston, President, National Association of Counties (full letter): “On behalf of the National Association of Counties (NACo) and the 3,069 county governments we represent, thank you for your leadership on the Homeowner Flood Insurance Affordability Act of 2014 (H.R. 3370, as amended). This is a very important issue for our nation’s counties and we urge swift passage.”
