Capps Works to Make Flood Insurance More Affordable for Central Coast Homeowners

WASHINGTON, DC – July 13, 2011 – (RealEstateRama) — Today, Congresswoman Lois Capps (CA-23) voted for the Flood Insurance Reform Act of 2011 (H.R. 1309), which passed the House by a vote of 406-22. The bill re-authorizes the National Flood Insurance Program for five years, and makes needed reforms to address the financial stability of the program by phasing out non-essential premium subsidies. The legislation is particularly relevant for homeowners in the Santa Maria Valley and the cities of Oxnard and Ventura. The County of Santa Barbara, the County of Ventura, and the City of Santa Maria all written letters to the Congresswoman expressing support for the legislation.

“I’m very pleased to support this bipartisan legislation to reauthorize the Flood Insurance Program and allow homeowners in participating communities to purchase flood insurance. For those that live in our country’s floodplains, like the Santa Maria Valley and Oxnard Plain, this bill is welcome news. I’m also glad that the final legislation approved by the House today would phase-in the full cost of a flood insurance policies in a more equitable way moving forward and allow FEMA to approve up to a five-year delay of mandatory purchase requirements. Both of these provisions will be of great assistance to many of my constituents in these trying economic times,” said Capps.

The legislation includes two provisions strongly advocated for by Congresswoman Capps to help homeowners on the Central and South Coasts. The first allows the FEMA Administrator to approve up to a five-year delay of mandatory purchase requirements to ensure newly-mapped communities have adequate time to rebuild their levees before high-cost insurance rates go into effect. This provision is particularly important as Congresswoman Capps continues her efforts at the Federal level to complete the repair of the Santa Maria River Levee. Capps recently sent a letter to the Obama Administration urging it provide construction funds for the completion of the project in the FY 2013 U.S. Army Corps of Engineers budget. Congresswoman Capps was instrumental in bringing federal funds to Santa Maria for the repair of the levee.

The second provision Congresswoman Capps pushed for in the bill would phase-in the cost of flood insurance over five years for recently remapped areas, based on the Preferred Risk Policy Rate, to save homeowners additional money. Congresswoman Capps offered an amendment to the legislation with Congresswoman Doris Matsui (CA-5) to ensure homeowners on the Central and South Coasts deal with the economic effects of flood remapping in a responsible way. The amendment was adopted unanimously.

H.R. 1309 also phases in full-risk, actuarial rates for homeowners in newly-classified flood zones, establishes a new Technical Mapping Advisory Council to develop new mapping standards for 100-year flood insurance maps within 12 months of enactment and requires FEMA to update all of its flood maps based on the Council’s recommendations over a five-year period. The Flood Insurance Reform Act has been endorsed by numerous organizations, including the National Association of Realtors, the National Association of Homebuilders, the American Insurance Association, the Property Casualty Insurers Association, and the Independent Insurance Agents and Brokers of America.

A copy of Capps’ statement in support of the bill follows.

Congresswoman Lois Capps
Statement in Support of H.R. 1309, the Flood Insurance Reform Act of 2011
July 12, 2011

Mr. Speaker, I rise in strong support of H.R. 1309, the Flood Insurance Reform Act. A full five year reauthorization of the program is critically important to our nation, and many communities on California’s Central and South Coasts.

H.R. 1309 would extend the National Flood Insurance Program (NFIP) for five years and allow property owners in participating communities to purchase protection against flooding.

As we have seen across our country the NFIP is critically important to so many Americans. When a flood disaster strikes, the homeowners that have flood insurance can at least see their way through the crisis. The NFIP offers the victims of floods the ability to make their lives whole again.

Of course, the best insurance against a flood is a strong flood protection system. For example, in my congressional district, the City of Santa Maria and County of Santa Barbara are working with the U.S. Army Corps of Engineers to repair the levee system that protects homeowners from flooding.

Thanks in part to the Recovery Act, and funding I helped secure; the levee is nearly repaired, providing stronger flood protection to my constituents. I’m working tirelessly to finalize that work and ensure the federal government follows through with their commitment to this project.

I’m also working to help other communities in my congressional district repair existing or build new levee systems and ensure the cost of carrying flood insurance is not too burdensome.

That’s why I was supportive of language in the underlying bill that would update current law to take local, state, and federal funding into account when determining flood zone designations.

And it’s why I’m urging my colleagues to join me in supporting the Matsui-Capps amendment. This straightforward amendment would phase-in the cost of flood insurance over five years for recently remapped areas.

In these trying economic times, the high cost of carrying flood insurance for many homeowners can be significant. Our amendment would assist these homeowners by phasing in the full cost of a flood insurance policy.

Mr. Speaker, H.R. 1309 will bring welcome relief to homeowners that live near floodplains. And it does it in a more equitable way moving forward.

I look forward to voting in favor of this bipartisan legislation to reauthorize the National Flood Insurance Program.

It will encourage responsible homeowners across the country to continue paying into the NFIP without adding risk to either the floodplain or the federal government.

I urge my colleagues to vote YES on H.R. 1309.

Contact:
2231 Rayburn House Office
Washington D.C. 20515
Phone: (202) 225-3601
Fax: (202) 225-5632