Tuesday, July 3, 2012
Congress votes to extend for five years the National Flood Insurance Program
On June 29, 2012, both the U.S. Senate and House gave approval to extending authority for the National Flood Insurance Program through 2017. The authorization was part of the larger Federal transportation bill that was approved shortly before Congress recessed for Independence Day week. The bill now awaits President Obama's signature.
NAHB, along with the National Association of Realtors and other groups worked hard for a long-term extension of the flood insurance program. Since 2008 Congress has been extending the National Flood Insurance Program a few months at a time and twice let the program's authority lapse, stalling thousands of real estate transactions in the process and potentially interrupting to the most vital part of our nation's economy: real estate.
Passage of the 5-year reauthorization will bring certainty to real estate transactions in more than 21,000 communities nationwide where flood insurance is required for a mortgage. The bill ensures the program will continue long-term for more than 5.6 million business, and homeowners, who rely on it. Extension of the program also insures that taxpayers will spend less on federal assistance for flood disasters over the long run.