Congratulations and thanks for your participation. The “Call to Action” worked. Association members rose to the occasion and sent messages to their members of Congress about the government’s National Flood Insurance Program (NFIP).
This past Thursday, the U.S. Senate voted to approve an extension of the NFIP. The House of Representatives passed the legislation on Friday and then President Trump signed the bill into law. This legislation ensures that the NFIP will not lapse on Sept. 30, and will be extended until Dec. 8, 2017.
While NFIP isn’t a household name, it’s often the only flood insurance available in a given market. That’s important, because if a property is in a 100-year floodplain, lenders will typically require flood insurance as part of the mortgage approval process.
The NFIP isn’t just an issue for waterfront homes or homes in the direct path of hurricanes. Flooding can occur as a result of storm surge, severe rain or even snow melt. Many homeowners in San DiegoCounty who live near large storm drains or drainage channels are required to have flood insurance.
Both the National Association of REALTORS® (NAR) and the California Association of REALTORS® encouraged our Association members to take action. After all, if flood insurance isn’t available, then we would be the ones forced to inform our clients that their dream home is off the table until the NFIP is extended. And, consumers deserve better.
According to NAR President William Brown, if the NFIP would have expired, then home buying activity would have ground to a halt with as many as 40,000 lost of interrupted sales each month. Brown said expiration would have dealt significant damage to property owners, as well as to the business of real estate. NAR said reauthorization of the NFIP will help over 5 million homeowners in 22,000 communities around the country.
NAR worked closely this year with the House Financial Services Committee to craft the renewal legislation. The bill will allow insured property to be grandfathered so that a buyer would receive roughly the same rate quote.
NAR said it will continue legislative advocacy efforts for the 21st Century Flood Reform Act until this long-term reauthorization and reform bill is enacted.