[Federal Register Volume 89, Number 249 (Monday, December 30, 2024)]
[Notices]
[Pages 106551-106553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30936]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6505-N-01]
Request for Information Regarding Resilience Measures and
Insurance Coverage
AGENCY: Office of Policy Development and Research, Department of
Housing and Urban Development (HUD).
ACTION: Request for information.
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SUMMARY: Homeowners and housing providers have experienced significant
increases in property insurance premiums and deductibles in the past
several years, along with reductions in insurance coverage, added
requirements, and withdrawals of insurance companies from certain
markets. In July 2024, HUD convened an insurance summit to address
challenges in the property insurance market. The insurance summit
highlighted the need to increase property resilience to natural hazards
and to clarify the relationship between resilience measures and costs
to property owners, including the cost of insurance. Through this
Request for Information (RFI), HUD seeks public input regarding how
best to assess measures to increase the resilience of residential
properties to natural hazards and extreme weather. This information
will allow HUD to develop policies that better support HUD's program
participants in increasing resilience to natural hazards, including
extreme weather, and accessing affordable insurance for their
properties.
DATES: Comment Due Date: February 28, 2025. Late-filed comments will be
considered to the extent practicable.
ADDRESSES: Interested persons are invited to submit comments responsive
to this RFI. All submissions must refer to the docket number and title
of the RFI. Commenters are encouraged to identify the number of the
specific question or questions to which they are responding. Responses
should include the name(s) of the person(s) or organization(s) filing
the comment; however, because any responses received by HUD will be
publicly available, responses should not include any personally
identifiable information or confidential commercial information.
There are two methods for submitting public comments.
1. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
http://www.regulations.gov.
2. Submission of Comments by Mail. Comments may be submitted by
mail to the Regulations Division, Office of General Counsel, Department
of Housing and Urban Development, 451 7th Street SW, Room 10276,
Washington, DC 20410-0500. HUD strongly encourages commenters to submit
their feedback and recommendations electronically. Electronic
submission of comments allows the commenter maximum time to prepare and
submit a response, ensures timely receipt by HUD, and enables HUD to
make comments immediately available to the public. Comments submitted
electronically through the http://www.regulations.gov website can be
viewed by other commenters and interested members of the public.
Commenters should follow the instructions provided on that site to
submit comments electronically.
Note: To receive consideration as public comments, comments must
be submitted through one of the two methods specified above. Again,
all submissions must refer to the docket number and title of the
notice.
No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
Public Inspection of Public Comments. All comments and
communications properly submitted to HUD will be available for public
inspection and copying between 8 a.m. and 5 p.m. weekdays at the above
address. Due to security measures at the HUD Headquarters building, an
advance appointment to review the public comments must be scheduled by
calling the Regulations Division at (202) 708-3055 (this is not a toll-
free number). HUD welcomes and is prepared to receive calls from
individuals who are deaf or hard of hearing, as well as from
individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
FOR FURTHER INFORMATION CONTACT: Todd Richardson, General Deputy
Assistant Secretary, Office of Policy Development and Research,
Department of Housing and Urban Development, 451 7th Street SW, Room
8100, Washington, DC 20410-0500; telephone number 202-402-5706 (this is
not a toll-free number). HUD welcomes and is prepared to receive calls
from individuals who are deaf or hard of hearing, as well as
individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION:
[[Page 106552]]
I. Background
Homeowners and housing providers have experienced significant
increases in property insurance premiums and deductibles in the past
several years, along with reductions in insurance coverage, added
requirements, and withdrawals of insurance companies from certain
markets. Increased insurance costs and the unavailability of coverage
are negatively impacting HUD's program participants, including public
housing authorities (PHAs), multifamily property owners, and Tribal
communities, as well as borrowers of FHA insured mortgages. In July
2024, HUD convened an insurance summit to address challenges in the
property insurance market. The insurance summit highlighted the need to
increase property resilience to natural hazards, including extreme
weather, and to clarify the relationship between resilience measures
and costs to property owners, including the cost of insurance.
Increasing insurance costs and lack of insurance availability pose
unique challenges to HUD's program participants. Unlike owners who
provide market-rate housing, affordable housing providers generally
cannot pass their insurance cost increases on to tenants through
increased rents. Currently, some affordable housing properties faced
with suddenly higher insurance costs report that they are coping in
short-term ways, including reducing insurance coverage or cutting back
on providing services or amenities to cut costs. Owners and PHAs have
also reported that they may have to resort to delaying capital repairs
or consider the sale of properties and further consolidation of their
portfolios. Additionally, financing deals for the development of new
properties are becoming more difficult to pencil out or close.
Difficulty obtaining sufficient insurance coverage at a reasonable
price also affects both new and existing FHA borrowers in all property
types, including site-built single family, manufactured housing, and
multifamily housing. For existing FHA borrowers, rising insurance costs
increase monthly housing expenses, causing financial stress on the
borrower and affecting their ability to maintain monthly mortgage
payments. Some cash-strapped borrowers resort to canceling their
insurance policies, taking them out of compliance with mortgage
requirements and potentially affecting their ability to receive federal
assistance in the case of a disaster. In many instances, companies
simply are not renewing existing insurance policies, leaving consumers
searching for new, and often more expensive, policies that often
provide less coverage. Additionally, the lack of affordable and
available insurance coverage can also make it more challenging for
individuals to sell their home. For potential borrowers, increasing
insurance costs may limit affordable housing options or participation
in the market altogether.
These challenges are occurring at the same time the nation faces a
housing supply shortage, and they could further decrease housing
affordability and availability across the nation.
Improving resilience measures for properties can reduce their
damage from natural disasters and extreme weather, and, therefore,
reduce costs to insurers. HUD's insurance summit highlighted examples
of state programs such as those in Alabama and Louisiana connecting
resilience standards to reduced insurance costs. Following the summit,
HUD is releasing this RFI to better understand the challenges facing
property owners and determine what more HUD can be doing to promote and
encourage resilience investments in communities and reduced insurance
costs for property owners.
II. Purpose of This Request for Information
The purpose of this RFI is to solicit information regarding
resilience measures to mitigate damage from natural hazards, including
extreme weather, to allow HUD to develop policies that better support
HUD's program participants in increasing resilience and their ability
to access affordable insurance coverage for their properties.
III. Specific Information Requested
While HUD welcomes all comments relevant to increasing resilience
of HUD-supported housing and reducing insurance costs, HUD is
particularly interested in receiving input from interested parties on
the questions outlined below.
Single Family and Multifamily Housing, Public Housing and Insurance
Risk Pools
Question for comment #1: What are the financial savings (e.g.,
insurance premiums or avoided casualty loss) and other benefits
associated with modifications to existing single family or multifamily
properties, including public housing, to mitigate damage from natural
hazards or increase resilience in the event of a natural hazard? How do
these savings compare to the costs associated with those modifications?
Please list modifications and each of their damage mitigation benefits
as well as financial and time costs. Distinguish by peril type
(earthquake, hurricane, floods, hail, drought, wildfire, extreme heat,
landslide, etc.) or geography as appropriate, as well as by building
and construction type.
Question for comment #2: What are the financial savings (e.g.,
insurance premiums or avoided casualty loss) and other benefits
associated with building new construction properties with building and
design features that mitigate damage from natural hazards or increase
resilience in the event of a natural hazard? How do these savings
compare to the costs associated with those features? Please list
building and design features and each of their damage mitigation
benefits as well as financial and time costs. Distinguish by peril type
(earthquake, hurricane, floods, hail, drought, wildfire, extreme heat,
landslide, etc.) or geography as appropriate, as well as by building
and construction type.
Question for comment #3: What data exist around the additional time
or financial costs, if any, of rebuilding to or above code post-
disaster instead of waiving requirements? Is there information on the
longer-term costs (e.g., financial or damage-related) related to
waiving building requirements when rebuilding post-disaster?
Question for comment #4: Are there local or state statutes,
regulations, or incentives that help property owners reduce costs or
save on expenses, including insurance costs, when they invest in
resilience (e.g., reduced insurance premiums, tax abatements,
subsidies/discounts)? If possible, please provide data on how
successful these measures have been in saving on expenses.
Question for comment #5: Please identify any industry standards
related to resilience that you have used or referenced in your work. If
possible, please document where the standard has been applied, at what
scale, and to what effect.
Question for comment #6: Are there local, state, or regional
outreach or education efforts that have been successful in helping
homeowners and housing providers understand the direct and indirect
benefits of investing in resilience measures?
Question for comment #7: What data would be useful for insurers
(including risk pools) and reinsurers on efforts to mitigate damage
from natural hazards or increase resilience to natural hazards, such as
housing elevations, home
[[Page 106553]]
resilience upgrades, and infrastructure improvements?
Tribal Communities
Question for comment #8: What unique challenges do Tribal
communities face when implementing housing resilience measures? How can
HUD support Tribal communities in addressing these challenges?
Question for comment #9: What partnerships between Tribal
governments, local authorities, and other organizations exist to
enhance housing resilience on Tribal lands? Are there ways in which
these partnerships can be expanded or improved? Please explain and
provide specific recommendations, successes, and challenges as well as
any supporting data as applicable.
Question for comment #10: How can Tribes or organizations in remote
locations with limited options for resilience investments better access
or incorporate resilience strategies, resources, or methods? What
resources can HUD provide in partnership with groups in these areas?
Question for comment #11: What Traditional Knowledge and Indigenous
Knowledge about building practices can be integrated with modern
resilience measures in tribal communities? Please explain and provide
specific recommendations, as well as any supporting data.
Manufactured Housing
Question for comment #12: In addition to addressing manufactured
housing in the above questions where relevant, how else can
manufactured home resilience be enhanced during all types of natural
disasters (e.g., hurricanes, floods, earthquakes, wildfires, or
tornadoes)? Please provide relevant research as well as any supporting
data as applicable.
Solomon Greene,
Principal Deputy Assistant Secretary.
[FR Doc. 2024-30936 Filed 12-27-24; 8:45 am]
BILLING CODE 4210-67-P