Introduction of Legislation to Require Administrator of the Federal Emergency Management Agency to Allow for Month Installment Payments for Flood Insurance

Floor Speech

Mr. BILIRAKIS. Mr. Speaker, today I introduced the Homeowners Flood Insurance Relief Act of 2013. This legislation seeks to ensure the National Flood Insurance Program (NFIP) remains affordable for homeowners and sustainable for taxpayers. Homeowners across the country face significantly increased rates as a result of reforms made to address the solvency of the program in 2012. Congress reformed the NFIP in 2012 as part of the Biggert-Waters Flood Insurance Reform Act of 2012. These reforms required premiums to reflect the cost of coverage to ensure the program was solvent, but rates are increasing so quickly that the reforms may be counterproductive. As the Tampa Tribune recently noted, ``For properties in low-lying areas, especially near the coast, annual rates may double or go up tenfold, depending on base flood elevation, exceeding $20,000 a year in some cases.'' Congress did not intend to create such significant increases, and they have the potential to harm the program by limiting program participation and freezing the already fragile housing market. The bill would cap a homeowner's premiums to being no more than the appraised value of the structure over the course of a thirty-year mortgage. It also phases-in rate increases over ten years and would allow homeowners to pay premiums on a monthly basis, rather than an annual lump sum. These commonsense changes will ensure that the homeowners stay in the program and any increased premiums do not harm the housing market's recovery. This legislation continues the intent of the NFIP is to protect homeowners from devastating floods while ensuring the program is able to cover its costs. I look forward to working with my colleagues to move this legislation through Congress.

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