[Congressional Record Volume 149, Number 60 (Saturday, April 12, 2003)]
[Extensions of Remarks]
[Page E765]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   INTRODUCTION OF THE NATIONAL FLOOD INSURANCE PROGRAM FAIRNESS ACT

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                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                         Friday, April 11, 2003

  Mr. STARK. Mr. Speaker, I am here today to re-introduce the National 
Flood Insurance Program Fairness Act. A few years ago many of my 
constituents were placed into a special flood hazard area, indicated by 
FEMA's Flood Rate Maps, that requires them to purchase flood insurance 
that can cost over $1,000 per year.
  These residents were not notified that they would be required to 
purchase flood insurance until 2 months or less before the maps became 
effective, even though the law is supposed to give them six months 
notice and ample time to purchase flood insurance. Needless to say, 
this took many of my constituents by surprise when they were required 
to purchase costly insurance at a moments notice, having not seen 
flooding in decades or even a lifetime.
  Several residents who did not believe they were in the flood zone 
hired surveyors at their own expense, and many residents continue to 
hire surveyors. The private surveyors' data has resulted in removal of 
homes from the special flood hazard area, thus removing them from their 
obligation to purchase flood insurance. In the long run, while these 
residents are not required to purchase flood insurance, they have spent 
over $200 each for surveyor costs. Unfortunately, this cost burden is 
the responsibility of the property owner. They were told by FEMA that 
under current law property owners who challenge the presumed flood 
classification are responsible for the surveyor expense even though the 
incorrect classification is no fault of their own.
  Clearly, the National Flood Insurance Program needs to be revised to 
give homeowners more notice, due process, and financial protection when 
they succeed in removing their property from the base flood elevation 
classification. That is why I am proposing the National Flood Insurance 
Program Fairness Act
  The National Flood Insurance Program Fairness Act does the following:
  The bill improves the existing program by requiring the FEMA Director 
to notify by registered mail the Chief Executive Officer of each 
community affected by the changes in Flood Insurance Rate Maps, rather 
than by first class mail as is the case currently. The Director will be 
required to provide a copy of the revised map, along with a statement 
explaining the process of appeal. The Director will also provide the 
affected community sufficient information to identify which homes are 
affected.
  It also requires the Director to notify by registered mail, rather 
than first class mail, the Chief Executive Officer of each community of 
FEMA's response to the community's appeal of the flood insurance rate 
maps. This change will ensure that the community receives the notice of 
changes and has ample time to comply with the map changes within the 
statutory effective date.
  The bill improves upon current law by requiring the Director to 
notify by first class mail each owner of property affected by the 
changes in the flood insurance rate maps. Currently, the community is 
responsible for making sure that the residents are aware of the flood 
map changes. Requiring FEMA to notify residents expedites the process 
by eliminating the middleman.
  Finally, it requires FEMA to reimburse a resident or property owner 
for reasonable costs incurred in connection with a surveyor or engineer 
for a successful request to be removed from the special flood hazard 
area to the Director. This does not include legal services incurred by 
the resident.
  It is my hope that this legislation will allow communities to work 
more effectively with FEMA to ensure that residents are given 
sufficient, fair, and timely notice if they are required to purchase 
flood insurance and to ensure that homeowners are not held financially 
liable when a change in a community's flood insurance rate map does not 
affect their property. In the last Congress I had members from both 
sides of the aisle cosponsor the bill. I hope to receive even greater 
support for the bill in the current Congress and look forward to 
working with my colleagues to see enactment of the National Flood 
Insurance Program Act.

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