In a welcome press release the National Association of REALTORS® touted changes to the 21st Century Flood Reform Act which includes a commitment to retaining "grandfathering" - a policy that protects homeowners from significant rate increase when a flood map changes. This key provision had been left out of the initial draft of the bill. The new bill limits increases to fees and limits rate increases which earlier versions of the bill had included.
This legislation protects taxpayers, as well as homeowners, which is no easy task. The September 30 reauthorization deadline still looms in front of us, and Realtors® are eager to see this legislation progress quickly. Leaders on both sides of the aisle are well aware that this issue touches 22,000 communities – in every state, both coastal and inland.
-- NAR President William E. Brown
The bill expects to achieve reforms to improve the financial stability of the National Flood Insurance Program, to enhance the development of more accurate estimates of flood risk through new technology and better maps, to increase the role of private markets in the management of flood insurance risks, and to provide for alternative methods to insure against flood peril, and for other purposes.