[Congressional Record Volume 160, Number 38 (Thursday, March 6, 2014)]
[Extensions of Remarks]
[Pages E319-E320]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          HOMEOWNER FLOOD INSURANCE AFFORDABILITY ACT OF 2014

                                 ______
                                 

                               speech of

                             HON. RUSH HOLT

                             of new jersey

                    in the house of representatives

                         Tuesday, March 4, 2014

  Mr. HOLT. Mr. Speaker, I rise today in support of H.R. 3370, the 
Homeowner Flood Insurance Affordability Act of 2014. In my home state 
of New Jersey, home and business owners are continuing to recover from 
the devastation caused by Superstorm Sandy, now more than a year ago. 
Even for property owners not affected by Sandy, premium increases under 
the National Flood Insurance Program (NFIP) have proven to be 
unaffordable and unsustainable. Lawmakers on both sides of the aisle 
have been working in recent months to craft the compromise before us 
today, and it is my hope that following bipartisan passage here in the 
House, this legislation will quickly pass the Senate and be signed into 
law by the President.
  The Homeowner Flood Insurance Affordability Act will repeal certain 
rate increase ``triggers'' that would result in dramatic premium 
increase from the sale of a home or lapse of a policy. The bill will 
restore ``grandfathered'' rates for home and business that were 
remapped into higher risk areas, often

[[Page E320]]

resulting in catastrophic rate increases. The bill places caps on the 
Federal Emergency Management Agency's (FEMA) ability to increase policy 
rates on primary homes, now capped at 15 percent annually under the 
bill, and enact additional caps to ensure affordability, while 
providing FEMA with the resources to complete a flood insurance 
affordability study within 18 months of the bill's enactment. This 
legislation will provide relief to families that have already been hit 
with substantial premium increases, and to communities that 
successfully challenge redrawn FEMA flood maps. Finally, these changes 
will be paid for by enacting a $25/year surcharge on insured primary 
residences, and a $250/year surcharge on all other insured properties.
  I expect that the passage of this bill will provide relief and 
certainty to those in New Jersey and around the country dealing with 
premium increase, but we must not ignore the need to plan for a 
changing climate, sea level rise, and an increased risk of extreme 
weather and flooding. For those living in flood prone areas the risk of 
flood will only increase, stressing the limited resources available 
under the NFIP, and continuing to devastate communities and families.
  I expect flood insurance is an issue that Congress will need to 
continue to revisit in coming years, but for now I believe the 
Homeowner Flood Insurance Affordability Act will serve to address many 
of the concerns I have heard from home and business owners, flood plain 
managers, insurers, and REALTORS in Central New Jersey.

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