National Flood Insurance Program rate reforms could see delay
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A provision in the omnibus appropriations bill approved by Congress this week that will slow implementation of rate reforms to the National Flood Insurance Program has disappointed supporters of those efforts.
Under the Consolidated Appropriations Act of 2014 — H.R. 3547 — there will be a one-year delay in implementation of a provision in the Biggert-Waters Flood Insurance Reform Act of 2012 that phases in new rates for properties that have been remapped by the NFIP. Legislation that would delay rate adjustments for four years has been introduced in the Senate.
Delay in the implementation of actuarially based rates is opposed by many insurance, environmental and free-market organizations.
“It is certainly understandable that property owners become alarmed at the prospect of sharp increases in the cost of flood insurance, and that their elected representatives respond to their concerns,” said Lawrence Mirel, a partner in the Washington office of Nelson Levine de Luca & Hamilton L.L.C., in a statement issued after Thursday's vote. “But someone has to pay for the risk of flood, and if not those who own the property at risk, it will be the taxpayers. By slowing down the Biggert-Waters reforms, Congress will ensure that taxpayers will continue to subsidize property owners at risk of flooding. Major rethinking and restructuring of the program is needed if it is to survive.”
