In overwhelmingly bipartisan fashion, the House Financial Services Committee voted 54-0 to support the “Flood Insurance Market Parity and Modernization Act” on March 2. NMHC and NAA have long called for the legislation’s passage to help increase private market competition for flood insurance coverage outside the National Flood Insurance Program (NFIP). That’s because the program is facing financial challenges due to several catastrophic weather events like Hurricanes Katrina and Sandy. Multifamily firms with federally regulated and insured mortgages on properties in high-risk areas are required by law to purchase flood insurance.
Specifically, the legislation would expand coverage options for at-risk property owners by clarifying that flood insurance offered by private carriers meets the mandatory purchase requirements. This includes properties financed or insured by the Federal Government, such as Federal Housing Administration and GSE backed multifamily projects.
We continue to support efforts by lawmakers to reduce taxpayer funded disaster assistance after flooding events while ensuring that all types of rental property maintains access to affordable, quality flood insurance through the NFIP.
Introduced by Representatives Dennis Ross (R-FL) and Patrick Murphy (D-FL), the bill now moves to the full House for consideration in the near future. Companion legislation in the Senate, sponsored by Senators Dean Heller (R-NV) and Jon Tester (D-MT), also has significant bipartisan support and could see action shortly.