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Yesterday evening, Congressman Paul Tonko (D-NY) voted in favor of H.R. 3370, theHomeowner Flood Insurance Affordability Act, which provides a number of provisions to address skyrocketing rates for flood insurance policyholders in New York’s Capital Region. The legislation passed the House floor by an overwhelming bipartisan vote of 306-91. Similar legislation passed the U.S. Senate in January by a vote of 67-32, and the two bills now must be reconciled before going to the President’s desk to be signed into law.

“This legislation provides relief for New Yorkers in Waterford, Troy, Schenectady and many other communities in our region who have seen their flood insurance rates shoot through the roof,” said Tonko. “I believe we are now on a path to relief for these individuals who have seen their insurance rates increase dramatically. It is critical to be prepared for severe weather and the damage that flooding can impose on our region, and we must rely on maps that are developed with accurate information, and reflect geographic realities and actual flooding risks. 

“In cases where flood risk is significant, any necessary rate increases must be implemented in a way that is sensitive to individual homeowners' budgets and to minimize impacts on local communities. As we move toward the next reauthorization of the law, we must better balance the needs of homeowners with environmental concerns.  Responsible development of our waterfronts remains a necessity for the safety of our communities and for long-term viability of the federal flood insurance program.”

Congressman Tonko and his office have worked directly with dozens of constituents and homeowners in New York’s 20^th Congressional District to collect direct data and personal stories to Congress in an attempt to expedite this relief. The bipartisan legislation includes a number of important provisions to protect flood insurance policyholders from dramatic, rapid rate hikes:

• Repeal of certain rate increase “triggers,” ensuring that no policyholder will experience dramatic rate increases from the sale of a home or a lapse in policy. 
• Restoration of “grandfathering,”so those who built properties to code in the past do not have to worry about catastrophic rate increases as a result of remapping.
• Lowering FEMA’s ability to increase rates,from 20 percent to 15 percent.
• Refunding excess premium chargesto those who have paid significant rate increases.
• Completing the affordability study and framework. The measure provides FEMA the funding necessary to complete the affordability study mandated in the Biggert-Waters Act and requires it to it, along with an affordability framework, to Congress.
• Individual property rate increase cap, providing that most individual rate increases cannot exceed 18 percent. Under FEMA’s annual increase authority, the average increase is capped at 15 percent. But without this individual cap, policyholders might still have experienced significant rate increases.
• Affordability goals for FEMA. In addition to striving to achieve actuarial soundness in setting premium rates, FEMA is now instructed to minimize the number of policies with annual premiums that exceed one percent of the total coverage provided by the policy.
• Rate increase protection for newly mapped properties. This provision requires FEMA to extend premium rate protection to all properties newly mapped into a special flood hazard area for the first year. Upon renewal, these properties can receive average rate increases of 15 percent and no individual policyholder may receive an increase of more than 18 percent. Without this language, there would be no cap on rate increases for properties newly mapped into a special flood hazard area, which often results in the highest rate increases.
• Mapping protections, requiring FEMA to notify communities and Members of Congress of remapping, mandating FEMA work with communities on appropriate data and mapping models.
• Consumer protection, which ensures policyholders receive clear information relating to their policy following certain changes in their policies, such as opting for high deductibles or foregoing flood insurance on certain detached structures.
• Protection of small businesses, non-profits, houses of worship, and residences. The measure requires FEMA to monitor and report on affordability for small businesses, non-profits, houses of worship, and residences with less than 25 percent area median home value. If FEMA finds detrimental effects on affordability, it must provide Congress recommendations to address these effects.

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