Federal legislation could reverse the skyrocketing flood insurance rates that went into effect Oct. 1.
The Homeowner Flood Insurance Affordability Act could put off the increases for four years until the Federal Emergency Management Agency (FEMA) completes an affordability study. The legislation also proposes regulations that address affordability issues for residents who live in flood zones. The act was introduced in the U.S. House of Representatives Tuesday.
“Many middle class families are simply not going to be able to afford their homes due to the unintended consequences of the Bigget-Waters Act,” said Congressman Bill Pascrell, (D-09) one of the legislation’s sponsors. “This bipartisan, bicameral legislation will delay these rate hikes while we address these affordable issues.”
The Biggert-Waters Flood Insurance Reform Act of 2012 put the new regulations in effect. The act increased the maximum rate the National Flood Insurance Program could impose annually from 10 to 20 percent. According to a press release issued by Pascrell Tuesday.
A companion bill was also introduced in the Senate.