State representative introduces bill to create Flood Insurance Premium Assistance Task Force

I was honored to represent the Pennsylvania Association of Realtors® last week during a press conference held by Rep. Steve Santarsiero (D-Bucks) in Yardley.

He announced House Bill 1299, which would create the Flood Insurance Premium Assistance Task Force. The bill has been referred to the Pennsylvania House Insurance Committee and has bipartisan support. He was joined by Rep. Tina Davis (D-Bucks) and I was asked to talk about how flood insurance premiums have affected the real estate market.

Many of us have had real estate deals affected by the Biggert-Waters Act in the last several years. While Biggert-Waters has brought some stability to the National Flood Insurance Program (NFIP), initial rate changes that many homeowners experienced had dramatic effect on the real estate market. The National Association of Realtors® worked to secure the Homeowner Flood Insurance Affordability Act, which has provided some relief for homeowners by limiting premium increases for newer and older properties. We believe we’ll continue to see flood insurance issues with so many properties built along Pennsylvania’s beautiful rivers, creeks and streams.

Rep. Santarsiero said he believes these federal programs will not be enough to protect whole neighborhoods from the impact of flood insurance premium increases that are more than doubling for some residents.

The task force would study the federal Biggert-Waters Flood Insurance Reform Act’s effect on premiums for flood insurance, the new FEMA flood maps that classify new flood zones and the federal discount program to identify areas and neighborhoods that need additional assistance to keep flood insurance premiums affordable.

Pennsylvania is among the 10 highest states for flood insurance payouts between January 1978 and March 2011, ranking eighth at $773 million according to the NFIP. Santarsiero added that almost every legislative district is impacted by the new flood maps and the flood insurance premium increases.

Rep. Santarsiero noted that several neighborhoods in his area were built decades ago and have seen little flooding – especially since major flood mitigation investment has been completed – but now are in flood zones, requiring them to purchase flood insurance when they never needed it before. This comes at a time when the premiums are increasing unpredictably and it’s become an issue that could result in whole neighborhoods becoming financially unviable for homeowners.

Rep. Marguerite Quinn (R-Bucks) said that flooding has affected many families throughout her district and Bucks County. She said there are many uncertainties surrounding the federal legislation, and many constituents fear that their flood insurance premium changes will price them out of their home. This task force will position policy makers in Pennsylvania to have input on this critical matter.

House Bill 1299 would require that the task force, comprised of nine appointed members from state government, issue a final report within six months of its creation.

The task force’s recommendations would include:

• Potential programs that provide premium discounts
• Potential programs, whether through the mechanism of premium discounts or other relief, that create incentives for local governments to undertake or continue flood mitigation efforts
• Implementation of necessary changes in state statutes and practices, policies and procedures relating to the administration of flood insurance.