national flood insurance program RE-AUTHORIZATION update

The National Flood Insurance Program (NFIP) is set to expire on September 30th without Congressional action. During the past month, there has been a lot of activity on Capitol Hill surrounding the re-authorization of the NFIP. NAR has been actively engaged in trying to shape various pieces of legislation in accordance with NAR’s flood insurance policy principles(link is external).
Here is the current state of play with just 30 legislative days on the Congressional Calendar before September 30th
​The House Financial Services Committee (HFSC) has passed seven different bills each one addressing a different component of the NFIP. NAR supported six of the seven bills and opposed H.R. 2874, “The 21st Century Flood Reform Act” sponsored by Rep. Sean Duffy (R-WI). You can read NAR’s letter to the Committee here.
The HFSC is expected to combine the seven bills that just passed committee, into a complete package for possible consideration by the full House sometime in July.
NAR is currently opposed to this potential House package.

• While the package includes a 5-year reauthorization and private market reforms supported by NAR, a new provision has been added to end grandfathering after four years.
• Various other policy changes, combined with the increased and new fees make assessing the overall cost impact to consumers difficult.
• There are also concerns that the flood mapping reforms are inadequate. 
• Complete taking points can be found here.

The Senate Banking Committee Chairman Mike Crapo (R-ID) and Ranking Member Sherrod Brown (D-OH) are working together to draft bi-partisan flood legislation they hope to consider in committee in July.
Two other bi-partisan bills have been introduced in the Senate. Sens. Menendez (D-NJ), Kennedy (R-LA), Van Hollen (D-MD), Rubio (R-FL.), Warren (D-MA), Cochran (R-MS), Booker (D-NJ), and Nelson (D-FL) introduced S. 1368, “The Sustainable, Affordable, Fair and Efficient National Flood Insurance Program Reauthorization Act of 2017.”
Sens. Cassidy (R-LA), Gillibrand (D-NY), and Capito (R-WV) introduced S. 1313, “The Flood Insurance Affordability and Sustainability Act of 2017.”
NAR has not taken an official position on either bill.NAR continues to work with the sponsors of both bills to provide feedback on various provisions. It is expected the legislation being crafted by Chairman Crapo and Ranking Member Brown will contain various elements of these two bills.
What’s Next? REALTORS® who talk with Members of Congress during the July 4th Congressional Work Period should convey NAR’s opposition to the current House approach, while asking MOCs to make sure the program does not lapse on September 30th.

• NAR estimates that past lapses of the NFIP have delayed or cancelled 1,400 transactions a day.
• NAR will continue to work with the House on proposed changes to their package that would earn REALTOR® support.
• Should a Call for Action be necessary, NAR will inform states as quickly as possible.

Stay tuned for more updates as these various NFIP bills work their way through the legislative process.