WASHINGTON, DC—Legislation that reduces premiums for homeowners that have government sponsored flood insurance passed the House on Tuesday in a 306-91 vote.
The House bill, H.R. 3370, was supported by a host of banking, homebuilding and real estate groups, including the National Association of Realtors. The bill looks to provide relief from premium increases that resulted from 2012 legislation that cut the National Flood Insurance Program's $24-billion debt, according to Bloomberg News. It repeals a provision of the 2012 law that caused premium increases for a property was sold to a new owner.
“Congress never intended to punish responsible homeowners,” Mississippi Republican Congressman Steven Palazzo said during floor debate on the bill. “That is exactly what FEMA is doing as it implements the law with flawed maps and procedures.”
Rep. Bill Pascarell (D-NJ) said during debate on the measure that the threat of steep rate increases is “putting a wet blanket on real-estate markets in flood-prone areas” because buyers are unwilling to pay the higher rates. See story at Bloomberg News.
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