Homeowners' Defense Act of 2007

HOMEOWNERS' DEFENSE ACT OF 2007 -- (House of Representatives - November 08, 2007)

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Ms. CASTOR. Mr. Chairman, I offer an amendment.

The Acting CHAIRMAN. The Clerk will designate the amendment.

The text of the amendment is as follows:

Amendment No. 2 offered by Ms. Castor:

Page 21, after line 25, insert the following new subparagraphs:

(C) limit new development and increases in density, intensity, or range of use allowances in zoning and planning programs in coastal and other areas subject to a higher risk of catastrophic financial loss from natural disasters and catastrophic events, as such areas are determined in accordance with standards established by the Secretary, in consultation with the Administrator of the Federal Emergency Management Agency and other appropriate agency heads;

(D) limit rebuilding of substantially demolished structures after catastrophic events to current density, intensity, use, and structural limits;

Page 22, line 1, strike ``(C)'' and insert ``(E)''.

Page 22, line 5, strike ``(D)'' and insert ``(F)''.

Page 22, line 12, strike ``(E)'' and insert ``(G)''.

The Acting CHAIRMAN. The gentlewoman from Florida is recognized for 5 minutes.

Ms. CASTOR. Mr. Chairman, I rise to offer an amendment that, over time, will keep insurance rates down by directing that State and local governments not approve intensified development in high-risk areas like our coastal high-hazard areas.

Insurance premiums are on the rise for many reasons, but one of the most significant reasons for skyrocketing costs of insurance is developer overbuilding in high-risk areas.

Developers and homebuilders have crowded on to the coasts and into the flood plains, fire zones, and other high-risk areas, without considering the consequences. The subsequent consequences to the folks that we represent have been very expensive.

These developers set up homeowners and businesses for financial ruin and personal tragedy when they locate in areas that are at high risk of natural disasters, and the developers are profiting at the expense of every policyholder whose premiums continue to rise without relief once another disaster hits.

Unfortunately, State and local governments have been too often complicit in this irresponsible behavior.

The amendment I offer today requires that States that participate in this innovative risk pool adopt policies to limit development in high-risk areas. It would also end the practice of rebuilding properties after a catastrophe with development that is of a greater size or a greater density or intensity, because the right to rebuild in high-risk areas is not the right to expand.

Now, this bill, carefully crafted by my thoughtful colleagues from Florida, provides States with an innovative tool to tackle the property insurance crisis. And my amendment improves the bill by preventing any greater problems down the road. The amendment aims to stop developer overbuilding that will lead to even greater disasters in the future and higher property insurance rates.

Now, I do appreciate the suggestion from the chairman of the Financial Services Committee that this amendment can be improved still, and I'll yield to the gentleman, because I am interested in your advice and assurance that maybe down the road, if I happen to withdraw the amendment, that we can work to improve.

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