Copyright: AC Rider
This week, bipartisan allies in both the House and Senate acted to increase private sector participation in the flood insurance marketplace. Representatives Dennis Ross (R-FL) and Kathy Castor (D-FL) as well as Senators Dean Heller (R-NV) and Jon Tester (D-MT) introduced the “Flood Insurance Market Parity and Modernization Act,” which has been long called for by NMHC and NAA. The bipartisan bill would expand flood insurance coverage options for at-risk property owners beyond the National Flood Insurance Program (NFIP) to the private sector.
NMHC/NAA issued letters (found here
and here) of
support for the companion measures, which will increase property owner’s access
to alternative options of coverage outside of the NFIP. This helps ensure
additional market competition, making coverage more affordable for multifamily
firms nationwide. Specifically,
the legislation clarifies that flood coverage offered by
private carriers meets existing federal purchase requirements for properties
financed or insured by the federal government, such as Federal Housing
Administration or Fannie Mae and Freddie Mac backed multifamily projects.
The legislation passed the full House of Representatives last year but was
never considered by the Senate. Expectations are that the legislation could
become a key plank of efforts to reauthorize the NFIP before it expires in
September 2017. NMHC/NAA are working
aggressively to educate lawmakers about the critical role that the NFIP plays
in all aspects of the multifamily industry.
Staff Resource
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- NMHC-NAA Statement for House Financial Services Subcommittee Hearing on the High Cost of Insurance for Consumers