[Congressional Record (Bound Edition), Volume 159 (2013), Part 11]
[House]
[Pages 16501-16502]
[From the U.S. Government Publishing Office, www.gpo.gov]




            THE HOMEOWNER FLOOD INSURANCE AFFORDABILITY ACT

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Pennsylvania (Mr. Thompson) for 5 minutes.
  Mr. THOMPSON of Pennsylvania. Mr. Speaker, today I rise to discuss 
the Homeowner Flood Insurance Affordability Act, a bipartisan bill to 
delay further implementation of flood insurance rate increases that 
took effect on October 1, 2013, under the National Flood Insurance 
Program.
  Congress last year, on a bipartisan basis, passed the Flood Insurance 
Reform Act of 2012. The measure included long overdue reforms to 
strengthen the financial solvency and administration efficiency of the 
National Flood Insurance Program. The rationale for the 2012 law was 
the need for the National Flood Insurance Program to more accurately 
reflect flood risk.
  Historically, most low-risk States subsidize high-risk coastal 
States. Similarly, low-risk areas within States tended to subsidize 
those areas with higher risk, which were more prone to flooding.
  The linchpin of the 2012 law was to use true actuarial rates in order 
to prevent very low-risk areas from subsidizing moderate- to high-risk 
areas.
  The unintended consequence has been drastic premium increases for 
those plans that were traditionally subsidized by the National Flood 
Insurance Program. Under the 2012 law, Congress mandated that the 
Federal Emergency Management Agency, FEMA, complete an affordability 
study to further evaluate any unintended consequences as a result of 
the changes. This study was to be completed before the rate increases 
went into effect, which was crucial to understanding the full scope of 
the new risk model.
  FEMA has failed to complete the affordability study that was required

[[Page 16502]]

under the law. Additionally, it remains a huge concern that FEMA does 
not have the data it needs to accurately determine risk under this new 
policy regime and is incapable of creating a new mapping system that 
truly reflects true actuarial rates.
  While 80 percent of policyholders will not see increases as a result 
of the new policy, a small portion of properties are being hit with 
staggering increases. This is a serious concern for communities and 
individuals across the country, including many from the Fifth District 
of Pennsylvania, which I am proud to represent.
  I joined yesterday with colleagues on both sides of the aisle as an 
original cosponsor of the Homeowner Flood Insurance Affordability Act, 
legislation to delay, for 2 years, the higher rates brought on by the 
2012 law until there is an affordability study completed by FEMA. The 
bill also makes structural changes at FEMA to assure that there is an 
advocate for homeowners when flood maps are drawn or adjusted.
  Mr. Speaker, improving the financial viability of the Nation's Flood 
Insurance Program while ensuring that the program protects those it was 
designed to support is something every Member of Congress should 
support. I encourage my colleagues to join in this commonsense effort 
to protect and improve our Nation's Flood Insurance Program by 
cosponsoring the Homeowner Flood Insurance Affordability Act.

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