[Congressional Record Volume 157, Number 103 (Tuesday, July 12, 2011)]
[House]
[Pages H4870-H4877]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FLOOD INSURANCE REFORM ACT OF 2011
The SPEAKER pro tempore. Pursuant to House Resolution 340 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the state of the Union for the consideration of the bill, H.R. 1309.
{time} 1234
In the Committee of the Whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the state of the Union for the consideration of the bill
(H.R. 1309) to extend the authorization of the national flood insurance
program, to achieve reforms to improve the financial integrity and
stability of the program, and to increase the role of private markets
in the management of flood insurance risk, and for other purposes, with
Ms. Foxx in the chair.
The Clerk read the title of the bill.
The CHAIR. Pursuant to the rule, the bill is considered read the
first time.
The gentlewoman from Illinois (Mrs. Biggert) and the gentlewoman from
California (Ms. Waters) each will control 30 minutes.
The Chair recognizes the gentlewoman from Illinois.
Mrs. BIGGERT. Madam Chairman, I yield myself such time as I may
consume.
Madam Chairman, I rise in support of H.R. 1309, the Flood Insurance
Reform Act of 2011. I'd like to thank Ms. Waters and all the Members
from both sides of the aisle who helped to craft this bill.
On May 13, the Financial Services Committee favorably reported the
Flood Insurance Reform Act by a unanimous vote of 54-0. This bill is
important and reflects the hard work and bipartisan support of the
Financial Services Committee.
It would reauthorize for 5 years the National Flood Insurance
Program, NFIP. The bill would enact a series of reforms designed to,
number one, improve NFIP's financial stability; two, to reduce the
burden on taxpayers; three, restore integrity to the FEMA mapping
system; four, to explore ways to increase private market participation;
and, five, to help bring certainty to the housing market.
For over 40 years, taxpayers have subsidized flood insurance premiums
for policyholders. To improve NFIP's financial stability, H.R. 1309
phases in actuarially sound rates for policyholders and phases out
taxpayer-subsidized rates. As a result, the Congressional Budget Office
stated that the bill generates $4.2 billion; and absent a Katrina-like
catastrophe, the bill will actually accelerate NFIP's payments on its
$17.75 billion debt to the taxpayer. As it stands, NFIP has already
paid back taxpayers about $1.8 billion.
But perhaps most importantly, H.R. 1309 eliminates a barrier to the
development of a private flood insurance market and puts us on a path
towards a responsible, long-term plan that eliminates taxpayer risk.
For the first time, policyholders can choose private flood insurance
over government flood insurance without the risk of lender rejection;
and the bill eliminates taxpayer-subsidized rates so that the private
sector can offer consumers increasingly competitive rates as compared
to the NFIP. Second, FEMA is required to solicit bids to determine the
cost to the private sector, not to the taxpayer, bearing the risk of
flood insurance.
Third, it requires that GAO and FEMA evaluate the feasibility of
voluntary, community-based flood insurance. And, fourth, the bill
reiterates FEMA's existing authority to purchase reinsurance from the
private sector as an alternative to the U.S. Treasury and taxpayers
serving as a backstop to NFIP.
Finally, the bill addresses many of the concerns that Members have
raised with us about new maps, especially as they relate to the dam and
levee decertifications. It allows communities to suspend the
requirement to purchase flood insurance while they work to construct or
fix their flood protection systems.
Madam Chairman, when Congress created NFIP, there was no viable
private-sector flood insurance market. Taxpayers were providing
increasing amounts of direct assistance through disaster relief to
flood victims. Without reforms contained in this bill, taxpayers will
never be paid back the debt they are owed; homeowners and businesses
will have limited or no access to flood insurance; and Congress will
inevitably have to bail out flood disaster victims, as it did prior to
1968. We cannot allow this to happen.
This bill is the first significant reform to the program in nearly a
decade. The NFIP is too important to let lapse and too in debt to
continue without reform. I look forward to today's amendment debate and
urge my colleagues to support the underlying bill.
House of Representatives,
Committee on the Judiciary,
Washington, DC, June 2, 2011.
Hon. Spencer Bachus,
Chairman, Committee on Financial Services, Rayburn House
Office Building, Washington, DC.
Dear Chairman Bachus: I am writing concerning H.R. 1309,
the ``Flood Insurance Reform Act of 2011,'' which is
scheduled for floor consideration soon. As a result of your
having consulted with us on provisions in H.R. 1309 that fall
within the Rule X jurisdiction of the Committee on the
Judiciary, we are able to agree to forego action on this bill
in order that it may proceed expeditiously to the House floor
for consideration.
The Judiciary Committee takes this action with our mutual
understanding that by foregoing consideration of H.R. 1309 at
this time, we do not waive any jurisdiction over subject
matter contained in this or similar legislation, and that our
Committee will be appropriately consulted and involved as the
bill or similar legislation moves forward so that we may
address any remaining issues in our jurisdiction. Our
Committee also reserves the right to seek appointment of an
appropriate number of conferees to any House-Senate
conference involving this or similar legislation, and
requests your support for any such request.
I would appreciate your response to this letter confirming
this understanding with respect to H.R. 1309, and would ask
that a copy of our exchange of letters on this matter be
included in the Congressional Record during floor
consideration.
Sincerely,
Lamar Smith,
Chairman.
____
House of Representatives,
Committee on Financial Services,
Washington, DC, June 2, 2011.
Hon. Lamar Smith,
Chairman, Committee on the Judiciary, Rayburn House Office
Building, Washington, DC.
Dear Chairman Smith: Thank you for your letter regarding
H.R. 1309, the Flood Insurance Reform Act of 2011. I agree
that there are provisions in the legislation that fall under
the jurisdiction of the Committee on the Judiciary. I am most
appreciative of your decision not to request a referral in
the interest of expediting Floor consideration of H.R. 1309.
Further, I agree that by foregoing a sequential referral,
the Committee on Judiciary is not waiving its jurisdiction. I
will include this exchange of letters in our Committee Report
on H.R. 1309 and the Congressional Record during Floor
consideration.
Thank you for your attention to these matters.
Sincerely,
Spencer Bachus,
Chairman.
____
House of Representatives, Committee on Science, Space,
and Technology,
Washington, DC, June 2, 2011.
Hon. Spencer Bachus,
Chairman, Committee on Financial Services, Rayburn House
Office Building, Washington, DC.
Dear Chairman Bachus: I am writing to you concerning the
jurisdictional interest of the Committee on Science, Space,
and Technology in H.R. 1309, the Flood Insurance Reform Act
of 2011. H.R. 1309 has been marked up by the Committee on
Financial Services. The amended version of the bill contains
provisions that fall within the jurisdiction of the Committee
on Science, Space, and Technology.
Based on discussions that the staff of our two committees
have had regarding this legislation and in the interest of
permitting your Committee to proceed expeditiously to floor
consideration of this important legislation, I am willing to
waive consideration of this bill. However, agreeing to waive
consideration of this bill should not be construed as
waiving, reducing, or affecting the jurisdiction of the
Committee on Science, Space, and Technology.
Additionally, the Committee on Science, Space, and
Technology expressly reserves its
[[Page H4871]]
authority to seek conferees on any provision within its
jurisdiction during any House-Senate conference that may be
convened on this, or any similar legislation. I ask for your
commitment to support any request by the Committee for
conferees on H.R. 1309, as well as any similar or related
legislation.
I ask that a copy of this letter and your response be
included in the report on H.R. 1309 and in the Congressional
Record during consideration of this bill.
I look forward to working with you as this important
measure moves through the legislative process.
Sincerely,
Ralph M. Hall,
Chairman, Committee on Science,
Space, and Technology.
____
House of Representatives,
Committee on Financial Services,
Washington, DC, June 2, 2011.
Hon. Ralph M. Hall,
Chairman, Committee on Science, Space and Technology, Rayburn
House Office Building, Washington, DC.
Dear Chairman Hall: Thank you for your letter regarding
H.R. 1309, the Flood Insurance Reform Act of 2011. I agree
that the section requiring a study on graduated risk in this
important legislation falls under the jurisdiction of both
the Committee on Financial Services and the Committee on
Science, Space and Technology. I am most appreciative of your
decision not to request a referral in the interest of
expediting consideration of H.R. 1309.
Further, I agree that by foregoing a sequential referral,
the Committee on Science, Space and Technology is not waiving
its jurisdiction. I will include this exchange of letters in
our Committee Report on H.R. 1309 and in the Congressional
Record during consideration of this bill.
Thank you for your attention to these matters.
Sincerely,
Spencer Bachus,
Chairman.
I reserve the balance of my time.
Ms. WATERS. Madam Chairwoman, I yield myself such time as I may
consume.
I rise today in strong support of H.R. 1309, the Flood Insurance
Reform Act of 2011. Before I begin my remarks, I would like to thank
Chairman Spencer Bachus, Chairwoman Judy Biggert, and Ranking Member
Barney Frank for their assistance and support with this bill.
We were able to work in a bipartisan manner on this bill in our
committee passing it on a vote of 54-0. The spirit of cooperation
between Republicans and Democrats on this bill has been extremely
welcome, and this is why I am proud to be an original cosponsor of this
bill.
{time} 1240
Madam Chairwoman, earlier this year I introduced similar legislation,
H.R. 1026, the Flood Insurance Reform Priorities Act. A version of my
bill passed the House last year on a bipartisan vote, and I hope that
the bill offered by the gentlewoman from Illinois will also pass the
House with significant support from both parties.
The flood insurance program is more important now than ever before.
Floods are the most common natural disaster and flood insurance is the
most effective means for helping families to rebuild after a flood.
Therefore, it is vital that flood insurance remain accessible,
affordable and available to the 5.5 million homeowners with policies
and the many more who may want or need to purchase them.
Unfortunately, the lack of a long-term authorization has placed the
flood insurance program at risk. The program lapsed three times last
year. These lapses meant that FEMA was not able to write new policies,
renew expiring policies or increase coverage limits. Given the current
crisis in the housing market, this inability in the flood insurance
program is unacceptable and must be addressed. I am pleased that the
gentlewoman's bill not only reauthorizes the program for 5 years but
also provides the program with the tools it needs to return to a strong
financial footing while protecting homeowners.
The bill also addresses the impact of new flood maps on communities.
The mapping process has caused confusion and financial strain on
homeowners who now find themselves in flood zones and subject to
mandatory purchase requirements. I saw this firsthand in my home city
of Los Angeles. Last year, I was able to assist homeowners in the Park
Mesa Heights area of the city who had been mistakenly placed in a flood
zone. In that case, FEMA acted quickly to respond to new data and
correct the mistake. However, there are thousands of homeowners
nationwide who now find themselves in flood zones and subject to
mandatory purchase requirements.
The gentlewoman's bill would ease the financial strain on newly
mapped homeowners by allowing for a 3-year delay of the mandatory
purchase requirement and allows for a 5-year phase-in of actuarial
rates afterwards. In addition, I know that the gentleman from Alabama,
the chairman of the committee, will be offering an amendment similar to
the one I offered at markup that would extend the 3-year delay to 5
years. I know that the gentleman has worked with a bipartisan coalition
of members of the House Levee Caucus, led by the gentleman from
Illinois (Mr. Costello), and I look forward to passage of that
amendment.
To make sure that FEMA issues the most accurate maps, the bill
establishes a Technical Mapping Advisory Council. By improving the
mapping process, the council would prevent instances of erroneous flood
maps, like the one I encountered in Park Mesa Heights. The bill also
makes other improvements to the program by phasing in actuarial rates
for pre-FIRM properties, raising maximum coverage limits, providing
notice to renters about contents insurance, and allowing homeowners
that receive letters of map amendment to be reimbursed for their costs.
Madam Chairwoman, I believe that the gentlewoman from Illinois and I
have produced a good bill that will protect homeowners, the flood
insurance program, and taxpayers. I hope that we can pass this bill
today and that the Senate takes up flood insurance reform in short
order so that we do not risk another lapse when the program expires on
September 30 of this year. Again, I thank the gentlewoman from Illinois
for her tremendous work on this bill, and I strongly urge an ``aye''
vote.
I reserve the balance of my time.
Mrs. BIGGERT. I yield 2 minutes to the gentlelady from West Virginia
(Mrs. Capito).
Mrs. CAPITO. Madam Chair, I rise in support of the legislation that
is before us today to reform the National Flood Insurance Program.
I would like to thank the gentlelady from Illinois (Mrs. Biggert) and
the gentlelady from California (Ms. Waters) for their hard work to
bring forth a bipartisan bill which addresses many of the concerns to a
program hampered by extraordinary losses and currently facing about $18
billion of debt.
H.R. 1309 provides a long-term extension of the National Flood
Insurance Program, but it makes a significantly indebted program more
fiscally sound. A 5-year reauthorization will give the certainty that
is needed to a program that has been without it for the past 2 years.
It is irresponsible and unfair to communities and individuals,
especially those who live in flood-prone areas such as mine, to pass
short-term extensions and allow temporary lapses when more than 5
million policyholders depend on it for financial security against
flooding. Unless congressional action is taken, on September 30, 2011,
these policyholders will again be put in danger of losing protection.
Unfortunately, the persistence of subsidized rates for properties in
high-risk areas has left the NFIP underfunded and at risk. This bill
makes needed reforms to put premiums more in line with risk by
incorporating actuarial rates for at-risk properties. Increasing the
limit on annual premium rate increases will gradually phase out
subsidized premiums and help reduce taxpayer exposure. At the same
time, this legislation allows properties relief from the mandatory
purchase requirement for up to 3 years so they may be able to plan
better for being newly mapped into special flood hazard areas.
Most importantly, this bill gives us a chance to give long-term
certainty to policyholders as well as insurers who participate in the
program. In a still unsure housing market, it is critical that we
provide as much clarity as possible to current and future homeowners.
I am very pleased that this legislation looks at privatization
initiatives and the possibilities that the private market as well as
reinsurance can play in protecting communities against future flood
damages. It is my hope that we will pass this bill.
[[Page H4872]]
Again, I want to congratulate the chairwoman for her hard work.
Ms. WATERS. Madam Chairwoman, I yield 3 minutes to the gentlewoman
from New York (Mrs. McCarthy). She has been very much involved in the
development of this legislation and has worked very hard.
Mrs. McCARTHY of New York. I would like to thank the gentlewoman from
California (Ms. Waters) for yielding me this time. It has been a
pleasure working with her. I would also like to thank Chairman Bachus
and Subcommittee Chair Biggert with whom we have worked. This is
something that is important to both of our districts. I also thank
Ranking Member Barney Frank.
Madam Chairman, H.R. 1309, the Flood Insurance Reform Act of 2011,
reauthorizes the National Flood Insurance Program for 5 years, but it
also provides much needed reforms to the National Flood Insurance
Program.
My district in Long Island, especially the community of Valley
Stream, was included in the early rounds of FEMA's implementation of
the flood map modernization process, and we have experienced much of
the frustrations associated with the process. The whole idea of redoing
what we're doing in this flood map is hopefully to prevent other
Members of Congress from being frustrated as much as I have when
they're trying to help their community.
Since our maps were enacted in the fall of 2009, I hear daily from
our frustrated homeowners who are required to purchase flood insurance
because of the updated maps and who feel they did not have the time or
the tools necessary to understand and respond to the maps' results.
H.R. 1309 contains provisions to better inform homeowners who are
required to purchase flood insurance because of updated maps. For
example, the bill requires FEMA to notify federally elected officials
when there are changes to a flood zone or a map directly in their
district.
The bill also requires FEMA to create a method for flood insurance
policies to be paid for with installment payments, to ease the burden
of having to pay the up-front full payment which can cost thousands of
dollars. The bill also allows for homeowners who are in the reduced
cost preferred risk policy program to enter into the 5-year phase-in
for full actuarial rates when the extended rate expires in 2013.
To ensure the accuracy of the data and process FEMA used in creating
the updated maps around the country, H.R. 1309 also creates a Technical
Mapping Council made up of agency employees and experts in the field of
mapping to develop new mapping standards for future map modernization
activities. We need to use every tool available to bring relief to
homeowners who are being burdened by FEMA's map modernization process,
and the bill before us is a good start.
{time} 1250
I would like also to say, once again, working with my colleague Mrs.
Biggert, working on the subcommittee has been a really good process. We
have been able to bring our experiences, what happened in my community
in Valley Stream and the frustration that homeowners have gone through.
This legislation, although it doesn't cure everything, it will help
constituents. And those who have not had their maps done yet, this is a
good way for going forward.
Mrs. BIGGERT. Madam Chair, I yield 1\1/2\ minutes to the gentleman
from Tennessee (Mr. Fincher), a member of the Financial Services
Committee.
Mr. FINCHER. Madam Chairman, I stand before you today because my
district recently suffered severe flooding this spring and summer which
we are now just beginning to recover from. The flooding of the
Mississippi River, caused by an unusual amount of rain from back-to-
back storms, left thousands of Tennesseans with flood damage. In my
district alone, over 3,000 homes were damaged by storms and floods, and
over 4,000 registered for disaster assistance.
Because the Mississippi River borders 110 miles of Tennessee's Eighth
Congressional District, many small towns and farms are subject to
unpredictable flooding each year. With this in mind, I am pleased to
support H.R. 1309 today.
H.R. 1309 reauthorizes the National Flood Insurance Program for 5
years, which would provide some certainty for the economy and to the
national housing market. During a period of 9.2 percent unemployment,
we need this certainty to boost the housing construction industry and
to help create badly needed jobs.
Another reason I am supporting H.R. 1309 today is this legislation
encourages greater private sector participation in the National Flood
Insurance Program. Madam Chairman, if we are to reduce Federal spending
and the size of government in our lives, we need to put every program
on the table and analyze ways we can encourage the private sector to
shoulder more government risk.
I am pleased to support H.R. 1309 and encourage my colleagues to vote
in favor of this bill.
Ms. WATERS. Madam Chairwoman, I am so pleased to yield 3 minutes to
the gentleman from Oregon (Mr. Blumenauer). He has a long history in
this area, and the National Flood Insurance Act of 2004 bears his name.
I appreciate his support.
Mr. BLUMENAUER. I appreciate the gentlelady's courtesy, as I
appreciate her leadership and the leadership of Chair Biggert for
bringing this important legislation to the floor.
It is true, I have been working in these areas for the last 10 years
to make sure that the program is stable in the long term and encourages
participation. Here we are raising rates where necessary to more
accurately reflect flood risk.
For too long, homeowners in low-risk areas have been subsidizing
those in high-risk areas, all backed by the Federal taxpayers. This
bill will make the program closer to being actuarially sound. I
appreciate the work done to deal with repetitively flooded properties,
which comprise 2 percent of the properties insured by the program but
are responsible for 30 percent of the claims.
We do people no favors by paying them to rebuild in the same way, in
the same place, time and time again in harm's way. That's why I
strongly support the amendment that has been included in the en bloc to
reauthorize and streamline a number of mitigation programs targeted
towards repetitive flood programs.
I authored, with my colleague Doug Bereuter of Nebraska, a program to
provide mitigation assistance for ``severe repetitive loss
properties.'' Unfortunately, since 2004, we found the program has been
hard for FEMA to administer. When they have been able to get the
program off the ground, it has allowed mitigation of almost 600
properties and saved $125 million. But if we are able to move forward
here, allowing the program to work right, it can make a huge, long-term
difference both in the lives of property owners as well as the fiscal
stability of the program.
The Waters amendment addresses the administrative programs by
combining three mitigation programs into one streamlined provision,
removes red tape, and enables FEMA to more easily work with the
communities to mitigate the properties.
It is important to note that it does not cost the taxpayers any
money. The money for mitigation comes from the flood insurance fund
made up of premium dollars, and each dollar spent on mitigation saves
the fund far more in the future.
I appreciate the work of Mrs. Biggert, Ms. Waters, Chair Bachus,
Ranking Member Frank, and the committee to dig into the details here to
ensure that FEMA will continue to have the tools it needs to address
the properties that are costing the program the most. This is going to
go a long way toward helping people out of the cycle of flooding and
will help reduce the heavy drain that these properties have on the
flood insurance program.
Mrs. BIGGERT. Madam Chairman, I yield 2\1/2\ minutes to the gentleman
from Texas (Mr. Canseco), another great member of the Financial
Services Committee.
Mr. CANSECO. I would like to thank Chairman Biggert for her
leadership on this bill which makes vital reforms to a troubled
program.
Madam Chairman, we are all aware of the importance of flood
insurance. Back in Texas, floods are a common occurrence. And when they
happen, they destroy homes, property, and even entire communities.
Yes, this program provides flood victims with the monetary
compensation necessary to begin rebuilding their
[[Page H4873]]
homes and their lives; yet we cannot forget that the only reason this
program is still operating is because taxpayers have bailed it out as,
by any measure, it has been insolvent.
That is why I am offering a very simple amendment to this bill that
accomplishes three things:
Number one, it adds a provision to the bill that recognizes that
while flood insurance is important to millions of Americans, this
program is deeply in debt to the American taxpayer and there is
currently no tangible plan to pay that money back;
Number two, it requires the administrator of FEMA to report back to
the Congress within 6 months a 10-year plan to pay back the $18 billion
it currently owes taxpayers;
Number three, it adds accountability to a program that is far from
being fiscally sound.
Let's keep in mind that if the National Flood Insurance Program were
an initiative solely of the private sector, it would have declared
bankruptcy long ago. Remember also that the person propping up this
program, the American taxpayer, is very weary and tired from
continually being held responsible for bailing out government's failed
initiatives. For years the taxpayer has been asked to pick up the tab
for government programs no matter how effective or how solvent they may
be. The argument was that we could hold off worrying about overspending
until we reached a crisis point. Well, with each American family now
responsible for over $120,000 of the Nation's debt and with annual
trillion-plus dollar deficits, we are now at that crisis point.
Madam Chairman, my amendment and this bill are a step toward bringing
fiscal responsibility back to this program. But, more importantly, it
stands up for the American taxpayer whose voice has been ignored in
Washington for too long.
Ms. WATERS. Madam Chairwoman, I am very pleased to yield 3 minutes to
the gentleman from Georgia (Mr. David Scott). Mr. Scott has been a
strong advocate for his constituents, making sure that they could
afford it. The installment part of this bill is all because of his
work.
Mr. DAVID SCOTT of Georgia. Let me commend Ms. Waters and Mrs.
Biggert for their extraordinarily important work on this legislation
that is very much needed. People all across this country are very
grateful that we are finally bringing some help here.
Madam Chair, nothing is more devastating to a family, to a community,
than to lose, almost in the flick of an eye, to lose your home to a
flood--I mean, totally underwater--to lose businesses. This happened in
my State in a devastating manner in 2009. It was the worst flood in
modern history of the State of Georgia. We lost over 20,000 homes
throughout the State, but no area was more impacted than my own
congressional district. Ten people statewide lost their lives. There
was a cost of over $500 million to lost businesses and homes. And of
those 10 people who lost their lives, seven of them were from my
congressional district.
{time} 1300
To even make this more pointed, seven of them were from one county in
my district. Douglas County and Cobb County were just devastated by
this flood. The communities of Austell and Powder Springs and
Douglasville and Lithia Springs and College Park had to all virtually
start over. Imagine yourself as a child with your whole school under
water. It was an extraordinarily unfortunate situation. To make matters
worse, Madam Chair, most of these individuals had no flood insurance.
The reason they didn't have any flood insurance was the cost of flood
insurance and the requirement that you had to pay for your flood
insurance in one lump sum.
Thanks to this committee, thanks to this bill, thanks to the work of
Ms. Waters, Mrs. Biggert, Chairman Bachus, and Ranking Member Frank, we
have galvanized this. Thanks to the Federal Government and FEMA and now
thanks to this bill and the amendment that you all were kind enough to
adopt, which was mine, individuals can now purchase their flood
insurance in monthly installments.
What a relief. What a great measure. This is what the American people
expect of us--to come up here and immediately respond to a pressing
need. This is a great day. It is a great bill. I want to thank all of
you for working with us on this.
Madam Chairman, again, I want to thank Mrs. Biggert and Ms. Waters
for their excellent work, for a job well done. The people of this
country thank us, too, as they can pay for their flood insurance in
installments.
Mrs. BIGGERT. Madam Chairman, may I inquire of the Chair how much
time both sides have remaining?
The CHAIR. The gentlewoman from Illinois has 20 minutes. The
gentlewoman from California has 16\1/2\ minutes.
Mrs. BIGGERT. I yield 2 minutes to the gentlewoman from Michigan,
Candice Miller.
Mrs. MILLER of Michigan. I certainly thank the gentlelady for
yielding some time to me.
I hate to rain on this bipartisan parade. I know that there's a
bipartisan effort here, but I think this program needs to be
eliminated, not to be reformed, and I would start with this basic
premise:
Why in the world is the Federal Government in the flood insurance
business?
If you read the Constitution, what does it say? Actually, in the
preamble, it says the first and foremost responsibility of the Federal
Government is to provide for the common defense. I can't find anywhere
in that Constitution that says we're supposed to be in the Federal
flood insurance business. I just can't find it. I'll tell you what. I
know we're trying to reform what, I think, is an unnecessary
boondoggle, ridiculous program, but rather than reforming it, as I say,
I think it needs to be eliminated.
This program started in 1968, and we started writing policies in
1972. The FEMA administrator just recently testified, I believe before
the Financial Services Committee, and said this Federal Flood Insurance
Program is in debt. As has been mentioned here, it is almost $18
billion in debt. We have to raise the debt ceiling for the Federal
Flood Insurance Program to about $25 billion, and the FEMA
administrator is telling us that it is always going to be in debt--
forever--massive debt.
The biggest issue facing Congress today is what we are going to do
about the $14 trillion in debt we are currently faced with and raising
the debt ceiling for that. So, as we are struggling with all of this,
it is almost ludicrous to me that we are talking about raising the debt
ceiling on a program that the Federal Government should not be involved
in. One of the reasons it's not doing particularly well is--guess what?
big surprise--the Federal Government is probably not the best insurance
agent in the world. I mean, when you see that 1 percent of the
policyholders is getting 40 percent of the claims, something is
seriously wrong.
I am going to be offering amendments shortly to eliminate this
program, and I'll speak more to it at that time.
Ms. WATERS. Madam Chairwoman, I yield 3 minutes to the gentleman from
Texas (Mr. Cuellar), who has worked very hard to make sure that we open
up communications with communities that are located in areas where
flood insurance rate maps have not been updated in 20 years.
Mr. CUELLAR. I want to thank Congresswoman Waters for her courtesy
and, of course, for her leadership on this issue. I also want to thank
the subcommittee chairwoman, Mrs. Biggert, as well as Financial
Services Chairman Bachus and Ranking Member Frank, for their bipartisan
work on this piece of legislation.
I consulted with my colleagues on both sides of the aisle with regard
to my amendment, and I believe this will be included en bloc with the
other amendments.
Homeowners, businesses and regions throughout the country are hit by
flood disasters every year, and I understand that, in such traumatic
and desperate times, our communities must be prepared and equipped with
the most up-to-date information and resources. I have repeatedly met
with my constituents and district county judges, specifically Judge
Eloy Vera from Starr County in South Texas, who experienced flooding
issues recently. I learned that flood zone maps had not been updated
for decades--decades--and that this hampered economic development when
they were struck by a
[[Page H4874]]
flood recently. The reasons for outdated flood maps vary, and maps from
the 1970s are not uncommon, but there is a need to strengthen the
relationships between entities that handle flood insurance maps to
address regional concerns.
My amendment is simple and bipartisan. It encourages FEMA, State
emergency agencies and localities to increase communications to resolve
outstanding issues and to provide necessary, tailored information in an
effort to decrease the prevalence of outdated flood zone maps. Flood-
threatened areas with outdated flood zone maps are not only
contradictory, but can result in serious problems for the region.
Increasing FEMA, State and local relationships is a practical and
effective way to assist communities and to ensure a steady process to
modernize flood maps.
So we are ready when a disaster strikes, I urge support for my
commonsense amendment that will be included en bloc.
Mrs. BIGGERT. I yield 1\1/2\ minutes to the gentleman from North
Dakota (Mr. Berg).
Mr. BERG. This has been a very tough spring for North Dakota as well
as for many other districts along these overflowing rivers.
Unprecedented flooding has devastated many communities, leaving
property destroyed, thousands without homes and hundreds of thousands
of acres of farmland flooded. Roads and bridges are severely damaged as
well.
This year's flooding is unusual both in the scope of its damage as
well as in how long the flooding has lasted. Many North Dakotans
purchased flood insurance to be prepared for the floods and to protect
themselves and their families from the losses that these floods cause.
Unfortunately, FEMA's current policy fails to account for a long-
lasting flood event like the one that we've seen along the Missouri
River.
I support the 30-day waiting period. If individuals purchase
insurance 30 days before their properties are damaged, they should be
protected regardless of when FEMA declares a ``flood in progress.''
That declaration could be counties or even States away or unexpectedly
worsened by the Corps' decision to increase the outflows from dams
along the flooded rivers upstream and to do this with very little
warning.
The Terry-Berg amendment would protect these individuals who have
played by the rules. We need responsible policies that help plan for
the uncertainty of natural disasters. We also need to protect and help
the people who have suffered when these disasters hit home. This
amendment will do both. So I urge my colleagues to support these
victims by voting in favor of this amendment.
{time} 1310
Ms. WATERS. I am pleased to yield 3 minutes to the gentleman from
Minnesota (Mr. Walz).
Mr. WALZ of Minnesota. I thank the ranking member for her work on
this and the chairwoman of the subcommittee. Thank you for coming
together and creating a process that allowed us to interact and work
for our constituents.
Recognizing the gentleman from North Dakota, I have actually been on
those flood flights that he's experiencing and am very appreciative of
what he brought forward.
Today, I have a pretty simple amendment, I think, that addresses a
real issue that we're having.
Over the past decade, there have been two real changes to the levee
system that protects our communities in this country. The first, of
course, was FEMA increasing the amount of information and the due
diligence they're doing on recertification of levees. That's
appropriate after Hurricane Katrina. Secondly, the private engineering
firms that perform the recertifications are facing astronomically
increased costs from their private insurers.
No one wants to insure a levee in a flood-prone area other than the
rest of the community, thus the government. Together, these two changes
have added increasingly high costs to our local communities as they're
trying to protect their residents and keep their levees up to
standards. It has created an extra burden on these communities that
they can ill afford. This amendment offers a solution.
The Army Corps of Engineers stands ready and able to perform these
levee certifications. In many cases, they built the levees. They can do
it at a significantly reduced cost to the local communities. But under
legislation passed in the 2000 Water Resources Development Act, State
and local communities cannot hire the Corps of Engineers to do the
work; they must first go to private contractors. It's exactly what
happened in my town of Mankato, Minnesota. The north Mankato levee,
which was designed and built by the Corps, needed to be recertified
because of these changes. Because they couldn't use the Corps of
Engineers, our local officials had to scramble and go out of their way
to find a private contractor willing to do the work at an added cost of
tens of thousands of dollars. At no fault to the private contractors,
their insurance of liability was so high they had to pass the cost on
to the local communities.
This approach was worked on in the last Congress with then-
Representative Boozman, now-Senator Boozman. It has the support of the
National Association of Counties, the National League of Cities, and
the National Association of Towns and Townships. And here's the good
thing: The Congressional Budget Office has certified this amendment
will cost nothing to the taxpayers. Our taxpayers on the local level
are paying far more as it is. This is a way to get it right, use the
Corps that we already have, save taxpayers money, increase the
efficiency of our levees, and reduce the claims that are made by this.
I urge my colleagues to support this piece of legislation, and once
again I thank the committee for their outstanding work on the
underlying bill.
Mrs. BIGGERT. Madam Chair, I yield 2 minutes to the gentleman from
Nebraska (Mr. Terry).
Mr. TERRY. I want to thank the gentlelady from Illinois and the
entire Financial Services Committee for working with us on this
amendment and recognizing the tragedy and disaster that's currently
occurring along the Missouri River, with my constituents, North Dakota,
South Dakota, Nebraska, Iowa, and Missouri.
What occurred here is that at the beginning, when they started
realizing there was going to be flooding and the Corps had to run the
traps through the dam system, one government agency started telling
people downriver to buy flood insurance. Then FEMA steps in and sets a
start-of-flood or flood-in-progress date that nullified what the
constituents and people bought.
Now, what the Terry-Berg amendment does is, it would protect those
individuals during a flood in progress if the individual has purchased
flood insurance and has not sustained damage or loss of property within
that 30-day window. That's the clear language of the policies that they
were purchasing that had been nullified by FEMA's declaration. This
amendment does not dispute the 30-day waiting period--which is designed
to discourage people from waiting until a flood is imminent to buy
insurance--it simply ensures American families who purchase flood
insurance are covered if they sustain damage after the declaration of a
flood in progress. This resolves the conflict caused between two
government agencies and adheres to the intent, and I want to thank the
Financial Services Committee for including this in the en bloc package.
Ms. WATERS. I reserve the balance of my time.
Mrs. BIGGERT. Madam Chairman, I yield 1\1/2\ minutes to the gentleman
from Missouri (Mr. Luetkemeyer).
Mr. LUETKEMEYER. I would like to thank the gentlewoman from Illinois
for her leadership on this important issue.
I rise today in support of House Resolution 1309 and in support of my
en bloc amendment that aims to provide more certainty to the National
Flood Insurance Program.
My amendment calls on FEMA to take into account the effects and
implications of weather conditions when making a flood-in-progress
determination. Currently, FEMA's flood determinations are made
independently by a FEMA adjustor, allowing a significant amount of room
for subjectivity. I appreciate the need for FEMA's flexibility, but
taking a more formulaic approach to flood events will provide increased
certainty to our river communities. My amendment would also require
FEMA to review the process for
[[Page H4875]]
providing public notification of a flood event.
When the Missouri River started flooding earlier this summer, FEMA
was delinquent in reporting their flood-in-progress determination to
the public. That determination was made June 1 but was not announced
until June 6. For 5 days, we had no way of knowing that FEMA had made
this determination, impacting policyholders and new homebuyers.
We believe that FEMA must look at the policies in place and make
recommendations for a more objective and precise determination process,
along with public notification standards that will keep policyholders
better informed. It is critical that FEMA develop enhanced procedures
for flood determinations and communications with the public.
I urge support for my amendment and for the underlying bill.
Ms. WATERS. I continue to reserve the balance of my time.
Mrs. BIGGERT. Madam Chairman, I yield myself such time as I may
consume.
With the NFIP's authorization set to expire on September 30, it's
really critical that the House pass the bill and work with the Senate
to shape a final commonsense reform measure. We have to avoid a
recurrence of what happened in the last Congress when the program
lapsed and caused turmoil in a recovering housing market. Houses
couldn't be closed if they didn't have insurance and if they had a
mortgage. At that time, it was simply extended without any reforms. So
if there is no viable private insurance market, we're going to have to
pay more. So I would suggest that we really look forward to passing
this bill.
Madam Chair, I now yield 2 minutes to the gentlewoman from Florida
(Ms. Ros-Lehtinen).
Ms. ROS-LEHTINEN. I would like to thank my good friend from Illinois
for the time. She has been a wonderful advocate on behalf of homeowners
and renters of the United States, and especially in my area.
Madam Chairman, I rise in support of this bill to reauthorize the
National Flood Insurance Program as administered by FEMA through the
year 2016.
Granted, the bill before us is not perfect, but homeowners and
businesses in my congressional district--that stretches from Miami
Beach all the way down to Key West--deserve to see stability brought to
this vital program.
Since September of 2008, the NFIP has had 11 short-term extensions,
and just last year alone the program was allowed to lapse three times.
That is inexcusable. These lapses meant that FEMA was not able to write
new policies, renew expiring policies, or increase coverage limits. And
for a program that insures over 90 percent of all flood insurance
policies nationwide--40 percent of those being in my home State of
Florida--this is rightly inexcusable. Just as bad, for each of the 53
days that the NFIP was lapsed, over 1,400 homebuyers who wanted to
purchase homes located in floodplains were unable to close on their
home purchases.
{time} 1320
It is necessary to demonstrate these irresponsible lapses will not
occur again; and those of us in south Florida and the Miami Beach area
to the Keys will stay prepared for any event that could occur during
hurricane season, which is upon us again, and we need to know that the
NFIP is there to help us recover. Let us not let another lapse happen
right in the middle of hurricane season.
I urge my colleagues to join me in voting for this much-needed, way
overdue important reauthorization.
I thank the gentlewoman for the time, and let's pass this bill.
Ms. WATERS. I continue to reserve the balance of my time.
Mrs. BIGGERT. Madam Chairman, I yield 9 minutes to our distinguished
chairman of the Financial Services Committee, the gentleman from
Alabama (Mr. Bachus).
Mr. BACHUS. I thank the gentlewoman.
Madam Chairman, this month we're all focused on the debt and the
deficit and our negotiations to try to balance the budget. So it's with
great pride that I tell the House that all 54 members of the Financial
Services Committee, both Republicans and Democrats, have unanimously
passed out of the committee a bipartisan piece of legislation which
will save the U.S. Government and the American taxpayers $4.2 billion
over the next 10 years. It does that without decreasing any of the
benefits of the program. It does it in some commonsense ways.
One is that premiums will be actuarially sound. They will be based on
the risk, and we will be eliminating subsidies to bring the program
into balance. We further insulate taxpayers from losses by adding a
reinsurance provision whereby part of the premium that people pay, just
as if they do on their house or for wind coverage if they have a home
on the beach--part of it is in private insurance laid off into
reinsurance. The program today, if you eat up the reserves, then the
Treasury is responsible for making up the difference.
After this legislation goes into effect, there will be reinsurance
that will be purchased, and the taxpayer will only be exposed after
risk-based premiums are exhausted, reinsurance in addition to that is
exhausted. So we reduce taxpayer exposure to a tremendous extent.
Also, people have said, why is there not private insurance? Well, we
have a provision in here, supported by both parties, that if the
private market comes in and offers insurance for the same coverage that
people will be free to choose that coverage as opposed to the national
flood insurance offered by the government.
You've heard the gentlelady from Florida express her concern that 11
times this legislation has been extended. Where it has been extended,
it has retarded economic growth along our coastlines, along our rivers;
and you can actually imagine that a lot of the economic activity and
the job creation in our country comes in these areas.
And today I think there would be no one in the House that says we
want to put the economies of those areas on hold for 3 months or 6
months. We want the economy to have much fewer problems. We don't want
to stop home sales; we don't want to stop commercial developments in
those areas.
There are other shortcomings with the present program. One is there
are disputes over whether or not land should be included within the
floodplains, whether coverage should be offered. We make improvements
there. We returned to a program several years ago where there's a
technical advisory committee that, in addition to FEMA, will make these
decisions, and it will be a more professionally based decision. Those
areas which are spending money, local areas like Los Angeles,
California, Ms. Waters' district; along the Mississippi River, where
local governments have come together and made expenditures to protect
against floods, there's acknowledgment of their work, and the phase-in
period for them is extended to encourage more of that.
All in all, I think that I would just go back to where I started and
say that the Financial Services Committee is no different from any
other committee in this House. There are conservatives, there are
liberals, there are moderates that serve on that committee, both
Republicans and Democrats. But all 54 members--let me stress that
again--all 54 members of the Financial Services Committee voted
unanimously for this legislation. And we are prepared in our debate as
we go forward to accept amendments offered by several other Members,
both Democrats and Republicans, to accept those amendments where it
does not do violence to the program, where it doesn't increase costs or
exposure to the taxpayer.
All in all, I want to congratulate the chairman of the subcommittee,
who produced this legislation. I think our constituents for months have
been saying to the Congress, please set aside your political
differences, please try to work together, please try to cooperate when
you can do so without violating your principles.
And Mrs. Biggert and Ms. Waters, the subcommittee ranking member on
her side, they put aside their differences. I worked with Chairman
Frank. We had hearings, we had markups, and we produced something that
I thought was not possible, and that's a bill that we all think will
improve the program tremendously, will reduce the cost and reduce
taxpayer exposure and really make the mapping better and
[[Page H4876]]
the protection for our communities in flood-prone areas work more
effectively.
Ms. WATERS. Madam Chair, I yield myself the balance of my time to
close.
I am very pleased and proud to be a cosponsor of this tremendous
comprehensive legislation.
I would like to thank the chairwoman from Illinois (Mrs. Biggert) for
her work, her leadership, and her cooperation. And I would like to
thank both the chairman of our committee, Mr. Bachus, and the ranking
member, Mr. Frank, for their support and their cooperation on this
legislation.
{time} 1330
You heard Mr. Bachus, our chairman, recount for you that 54 members
of the committee unanimously voted to support this legislation. That is
pretty unheard of. And I think that the committee, the entire committee
is to be congratulated for the tremendous work that we all put in to
making sure that we have comprehensive legislation that would afford
protection for our citizens and, at the same time, as was mentioned,
reduce the costs, but recognize that this has been a long time in
coming.
So as a cosponsor of this bill, H.R. 1309, the Flood Insurance Reform
Act of 2011, this bipartisan effort that has brought us to this point,
I would like to say that all of the Members who have spoken today, for
the most part, on both sides of the aisle, have been complimentary of
this comprehensive work. Of course, we did have one Member who
disagreed with government's involvement in this flood insurance
program. That's a rather radical view. I think most Members of this
Congress believe that we have a responsibility to give support to those
who are the victims of natural disaster, disasters that have been
caused through, of course, no fault of their own. They're pleased that
they have an opportunity to get some protection, with the help of their
government, and to make sure that their homes and their families can be
supported at a time that can be very traumatic in their lives.
Again, I will have to remind all of my colleagues that unfortunately
the lack of a long-term authorization has placed the flood insurance
program at risk. The program lapsed three times last year. These lapses
meant that FEMA was not able to write new policies, renew expiring
policies, or increase coverage limits.
Today, you have heard the Members of Congress again on both sides of
the aisle give appreciation for the mapping reform that we have
included in this legislation, for the outreach that we have included in
this en bloc amendment that would allow the constituents of all of our
districts to understand better what FEMA is doing, how it's doing, and
how they can be a part of it. I am also pleased that included in this
en bloc amendment is protection for small businesses. And I am very,
very pleased that we have seen this as an effort not only to
reauthorize, but to correct some of the weaknesses in the program and
to strengthen the program in general.
With that, Madam Chair, I would ask for support for this bill. I know
that there are some amendments that are being introduced a little bit
later on; and I think that, again, you will see bipartisan support for
most of these amendments. And I look forward to completing the bill
with the amendments and to sending this bill on, where I believe we
will have like support on the Senate side, and eventually to the
President's desk. It's about time. I think that this country's going to
be better off for it.
With that, I yield back the balance of my time.
Mrs. BIGGERT. Madam Chairman, I urge my colleagues to support H.R.
1309. It's a bill to reform and reauthorize the National Flood
Insurance Program. I think that we have had a great debate, and it
certainly is a pleasure to have a bill that has such bipartisan
support. I think it's such an important bill.
It's going to enact a series of reforms designed to improve NFIP's
financial stability, reduce the burden on taxpayers, restore integrity
to the FEMA mapping system, and explore ways to increase the private
market participation and help bring certainty to the housing market.
It's a $4.2 billion revenue raiser. And I think that that's very
important too, that we will really be able to change the scope of this.
If we go back to 1968 when this started, there was no private
insurance, and this is why this happened. And we have to keep it that
way, or we will pay so much more for disaster relief when this happens
to so many people who live in floodplains.
I urge my colleagues to support the bill, and I really thank the
members of the Financial Services Committee, particularly Ms. Waters
and Mr. Frank, and on our side Mr. Bachus, the chairman.
SmarterSafer.org,
Washington, DC, June 30, 2011.
Hon. John A. Boehner,
Speaker of the House of Representatives, U.S. Capitol,
Washington, DC.
Hon. Nancy Pelosi,
Minority Leader, U.S. House of Representatives, U.S. Capitol,
Washington, DC.
Dear Speaker Boehner and Minority Leader Pelosi:
SmarterSafer.org, a diverse coalition of taxpayer advocates,
environmental organizations and insurance interests, urges
you to quickly take up comprehensive flood insurance reform,
like H.R. 1309, a bill that extends the program for five
years and makes meaningful reform to the program.
Congress must act quickly to reauthorize the program before
it expires in September, and must couple any reauthorization
with meaningful reforms. The flood program is almost $18
billion in debt to the U.S. Treasury, and that amount will
likely grow as a result of recent flooding. To ensure the
viability of the program so that those at risk can rebuild
after a disaster, to protect taxpayers, and to protect
environmentally sensitive areas, Congress must make
significant reforms to the flood insurance program.
A comprehensive bill, like H.R. 1309, which was the subject
of significant hearings and debate, is needed. When you
consider this bill, we ask that you look at adopting changes
to do the following: phase out all subsidies, extend and
streamline the mitigation grants program including making
permanent the severe repetitive loss mitigation program;
ensure the program is not expanded to additional coverages;
and allow for no mapping or mandatory purchase delays. Though
we believe that H.R. 1309 is a step in the right direction,
with these changes you will be putting the flood program on a
sustainable path. Under H.R. 1309 flood maps will be up to
date and accurate; subsidies in the program will be phased
out; and FEMA is authorized to purchase reinsurance to cover
losses and protect taxpayers. We urge you to schedule this
bill for consideration.
Sincerely,
Environmental Organizations--American Rivers, Ceres,
Defenders of Wildlife, Environmental Defense Fund, National
Wildlife Federation, Republicans for Environmental
Protection, Sierra Club, The Nature Conservancy; Consumer and
Taxpayer Advocates--American Conservative Union, Americans
for Prosperity, Americans for Tax Reform, Center on Risk,
Regulation, and Markets--The Heartland Institute, Competitive
Enterprise Institute.
Insurer Interests--Allianz of America, Association of
Bermuda Insurers and Reinsurers, Chubb, Liberty Mutual Group,
National Association of Mutual Insurance Companies, National
Flood Determination Association, Reinsurance Association of
America, Swiss Re, USAA; Housing--National Low Income Housing
Coalition, National Leased Housing Association; Allied
Organizations--American Consumer Institute, Friends of the
Earth, International Code Council, National Fire Protection
Association, Taxpayers for Common Sense, Zurich.
____
May 27, 2011.
Hon. John A. Boehner,
Speaker of the House of Representatives, U.S. Capitol,
Washington, DC.
Hon. Nancy Pelosi,
Minority Leader, U.S. House of Representatives, U.S. Capitol,
Washington, DC.
Dear Speaker Boehner and Minority Leader Pelosi: On behalf
of the undersigned associations, we are writing to
respectfully urge you to schedule floor consideration of H.R.
1309, the Flood Insurance Reform Act of 2011 at the first
available opportunity. Significant reform and long-term
reauthorization of the National Flood Insurance Program
(NFIP) is critically important to the citizens and taxpayers
who rely on this vital flood protection program.
Without action, on September 30, 2011, the NFIP
authorization will expire. More than 5.6 million
policyholders depend on the NFIP as their main source of
protection against flooding, the most common natural disaster
in the United States. A long-term extension is necessary to
provide certainty to recovering real estate, insurance and
financial markets and every participant in the economy that
the NFIP effects--homeowners, small business owners,
builders, real estate professionals, mortgage lenders,
investors, insurance agents and insurance companies. All
these entities depend on the program for flood damage
protection.
H.R. 1309 includes both a long-term reauthorization and
important reforms that will optimize the current program with
important coverage and rate reforms, needed improvements to
the floodplain mapping and appeals processes, and other key
reforms which would encourage program participation and put
the NFIP back on the path to sound financial footing.
[[Page H4877]]
As you know, H.R. 1309 was favorably reported by the House
Financial Services Committee with unanimous, bipartisan
support. We thank the bill sponsors and the Committee for
their leadership on this important issue. We respectfully
urge you to work for quick passage of this legislation by the
full House.
Sincerely,
American Bankers Association, American Bankers Insurers
Association, American Financial Services Association,
American Insurance Association, American Land Title
Association, American Resort Development Association,
American Securitization Forum, Chamber Southwest LA,
Commercial Real Estate Finance Council, Consumer Bankers
Association, Council of Insurance Agents and Brokers, Credit
Union National Association, The Financial Services
Roundtable, Independent Community Bankers of America.
Independent Insurance Agents and Brokers of America,
International Council of Shopping Centers, Mortgage Bankers
Association, National Association of Federal Credit Unions,
National Association of Home Builders, National Association
of Mutual Insurance Companies, National Association of
REALTORS, National Apartment Association, National Multi-
Housing Council, National Ready Mixed Concrete Association,
Property Casualty Insurers Association of America, The Real
Estate Roundtable, Reinsurance Association of America, Risk
and Insurance Management Society, Inc.
I yield the balance of my time to the gentleman from Illinois (Mr.
Dold).
The CHAIR. The gentleman is recognized for 1 minute.
Mr. DOLD. I thank the gentlelady for yielding.
I do want to talk about the flood insurance program, one that I think
enjoys great bipartisan support. I want to thank the chairwoman for her
guidance and, obviously, Ms. Waters for her leadership as well.
Five million, actually, residential and commercial properties across
the land rely on this flood insurance. They depend on it for stability.
And we have to recognize that there, indeed, are problems. We have
debt; there is no question about that. It's undercapitalized, which is
placing the taxpayers at risk. But this bill would minimize taxpayer
risk by making the program more self-sufficient over time by expanding
the private sector's role while allowing--and not allowing for coverage
gaps.
It also moves toward actuarially sound rates and creates a new
flooding map, which creates a platform upon which risk can be measured
and priced by the private sector. This is exactly the kind of solution
that we need to have here in the United States Congress, to be able to
still provide coverage in areas that need it so desperately and yet
move us gradually over to actuarially sound rates.
With that, I thank the gentlelady for her leadership.
Mr. GENE GREEN of Texas. Madam Chair, I rise today in support of the
Flood Insurance Reform Act, H.R. 1309.
Flood insurance is critical for homeowners in our area who rely on
this program to protect their hard-earned investments in their homes.
The National Flood Insurance Program is the primary source of flood
insurance for Americans and people in our district. About 5.6 million
homes and businesses nationwide rely on NFIP.
In our district, in Houston and East Harris County, Texas, flood
insurance is a top priority. The Harris County Flood Control District
does an impressive job of implementing new flood control measures in
the way of maintaining bayous, building retention basins, and
implementing drainage features, but even the best flood control will be
defeated by a particularly bad storm.
While I support the underlying bill, I am especially supportive of
measures that I first advocated for in 2007. During Floor Debate of the
2007 bill, I offered an amendment that was adopted, and it is also
included in the bill we are debating today.
Our language provides for a limited, five-year phase-in of flood
insurance premiums for low-income homeowners or renters whose primary
residence is placed within a flood plain through an updating of flood
insurance program maps. These homes can be valued at no more than 75
percent of the median home value for the state in which the property is
located. This is important to residents of our district, who need the
stability and stability that this provision allows.
I want to thank Chairman Bachus and Ranking Member Frank for their
leadership on this issue and for including this important provision.
Mr. VAN HOLLEN. Madam Chair, I rise in support of the Flood Insurance
Reform Act of 2011 (H.R. 1309).
The National Flood Insurance Program is the primary source of
reliable and affordable flood insurance for over 5.6 million homes and
businesses. Today's bipartisan legislation reauthorizes the program for
five years through FY 2016 and contains numerous reforms designed to
put the program on firmer financial footing.
The bill is supported by the National Association of Realtors, the
National Association of Homebuilders, the American Insurance
Association, the Property Casualty Insurers Association and the
Independent Insurance Agents and Brokers of America, and in my
judgment, strikes the proper balance between providing Americans with
the flood insurance protection they need at a price taxpayers can
afford.
The CHAIR. All time for general debate has expired.
Mrs. BIGGERT. Madam Chairman, I move that the Committee do now rise.
The motion was agreed to.
Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Kline) having assumed the chair, Ms. Foxx, Chair of the Committee of
the Whole House on the state of the Union, reported that that
Committee, having had under consideration the bill (H.R. 1309) to
extend the authorization of the national flood insurance program, to
achieve reforms to improve the financial integrity and stability of the
program, and to increase the role of private markets in the management
of flood insurance risk, and for other purposes, had come to no
resolution thereon.
____________________