Waters, Richmond Endorse Bipartisan Flood Insurance Legislation
Following weeks of negotiations between members of the House of Representatives and the U.S. Senate, Congresswoman Maxine Waters (D-CA), top Democrat on the Financial Services Committee and Congressman Cedric Richmond (D-LA) today threw their support behind comprehensive legislation designed to end unaffordable flood insurance rate hikes.
For months, Waters led a Democratic effort to provide homeowners with important flood insurance rate relief and to bring accountability to the Federal Emergency Management Agency (FEMA).
“I am pleased that after months of hard work, Democratic lawmakers were able to reach a bipartisan agreement that will ensure relief for hundreds of thousands of homeowners living in flood prone regions. I believe that today, we have struck a reasonable compromise that will address affordability concerns, bring accountability to FEMA and ensure the stability of the National Flood Insurance Program.
The new legislation includes a number of important provisions to protect flood insurance policyholders from dramatic rate hikes. Above all, these include ending dramatic increases caused by events such as property sales – and restoring grandfathered rates for those who played by the rules and built their properties according to code. For families hit by unaffordable premium increases, this bill provides important relief in the form of a refund. And it requires FEMA to provide Congress with the affordability study that was supposed to be finished nearly a year ago.
Over the past several weeks, Democratic members of Congress have worked to make this bill better for flood insurance policyholders. We were able to ensure reasonable limitations on rate increases that one property can experience – including those that are newly mapped into flood hazard areas. We have required that when FEMA engages in the process of remapping, it actually works with communities and Congress to ensure it is being done accurately. And we are making FEMA more accountable by requiring it provide clear and accurate information to anyone who may be affected by a change in policy.
I would like to acknowledge and thank Senators Mary Landrieu and Robert Menendez as well as Rep. Cedric Richmond for leading this effort with me. In addition, I would like to express my gratitude to the large and extensive list of Democratic members whose input has made this bill a stronger measure – particularly those who worked with me to push earlier legislation that was ultimately cosponsored by a majority of the House. Their names are too numerous to mention today. And finally, I would like to strongly express my appreciation to Democratic Leader Nancy Pelosi and Whip Steny Hoyer for their leadership and for making flood insurance a priority within the Democratic caucus.
If enacted into law, this legislation will provide homeowners living in flood-prone regions with clarity and certainty that the cost of their insurance will not force anyone from their homes, lead to depressed home prices, or undercut their ability to buy or sell a home. I urge passage of this legislation by the House and Senate without delay.”
As a coauthor of the Biggert-Waters legislation, Congresswoman Waters has taken responsibility and led the Democratic effort to address the unintended consequences of the legislation. On several occasions, Waters convened a coalition of concerned members and – through meetings and conference calls – built consensus around an agreement to address affordability concerns.
Rep. Cedric Richmond said the following:
"I'm proud to announce that after much negotiation, the House has reached a compromise that will provide relief to policyholders from skyrocketing flood insurance rates. From the outset, I wanted to reform the program in way that would make premiums more affordable, flood maps more accurate and increases accountability and oversight of NFIP's operations. While this legislation does not go as far as many of my colleagues and I would like, this compromise achieves these three goals.
The new measure contains the following key provisions:
In addition, Waters cited a number of new provisions Democratic members of Congress fought to include: