Flood Insurance Reform and Modernization Act of 2007

Floor Speech

FLOOD INSURANCE REFORM AND MODERNIZATION ACT OF 2007 -- (Extensions of Remarks - October 01, 2007)

* Mr. AL GREEN of Texas. Mr. Chairman, I am honored to be a co-sponsor of H.R. 3121, ``The Flood Insurance Reform and Modernization Act of 2007'' and I would like to thank Chairman FRANK. Subcommittee Chairwoman WATERS, Representative TAYLOR, and Representative JINDAL for their leadership in reforming a program that plays a vital role in protecting residents and communities in flood prone areas.

* Flood protection is an important issue in my district and in Texas, a state which has experienced the greatest number of flood and flash flood deaths over the past 36 years. In 2006, Texas saw an increase of over 20 percent in new flood insurance policies under the National Flood Insurance Program.

* I want to thank Chairman FRANK for working with Congressman HINOJOSA and I in committee to preserve subsidies for those properties that serve as affordable rental housing for many families. A measure was included in the bill to acknowledge that the loss of subsidies for properties that serve as primary homes for rental households could result in significantly higher premiums, to the detriment of these families. Higher premiums would increase the cost of property ownership, a cost that apartment owners would likely pass on to tenants in the form of higher rents. By protecting subsidies for these properties, this measure would ensure their continued affordability at a time when our nation is faced with a shortage of affordable housing.

* I want to also express my strong support for a provision in the bill authored by my colleague Congressman TAYLOR to expand the National Flood Insurance Program to include coverage for wind damage.

* Multi-peril coverage, or the coverage of both wind and flood risk in one policy, has proven especially important in the aftermath of Hurricanes Katrina and Rita as survivors continue to struggle to receive fair compensation for the damages they experienced. Private insurers have used anti-concurrent causation clauses to deny payment for damages on the grounds that the damages occurred as a result of flooding, which is covered by the Federal government. Multi-peril coverage would shield consumers from these arguably deceptive practices, protecting consumers in the absence of a solution to this controversy.

* Again, I express my full support for this important piece of legislation.

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