House of Representatives gives spending bill the nod

U.S homeowners have been granted a reprieve on flood insurance rates – but senators have urged the authorities to use the delay wisely.

American homeowners were yesterday granted a reprieve after the House of Representatives passed a spending bill which will delay sharp rises in flood insurance rates for at least nine months.

This grants homeowners who are to face a hike in flood insurance premiums, a short stay of execution.

The federal spending bill will now be read at the U.S. Senate and is expected to be passed there this week before it is sent to the White House for President Barack Obama to sign.

If passed into law, the bill would postpone  the rate increases until FEMA completes an affordability study on the changes and solves any issues involving premiums considered to be unaffordable. The bill would not block rate increases for most business properties, second homes or repeat flood insurance properties.

“Congress, it seems, is finally hearing the pleas of some of the homeowners," Sen. Bill Nelson (D-FL) said in a statement. “This is only a partial solution and there is still work to be done."

The statement explained that Florida Democrat and a group of lawmakers, including Sen. Mary Landrieu (D-LA), have been advocating for months for a delay, during which time FEMA would have to study the affordability of flood insurance and re-evaluate the accuracy of new flood maps.

It read that the budget language would prevent the government from spending any money for the remainder of this fiscal year to enforce higher premiums on homeowners who would see them under new flood maps. 

Federal Emergency Management Agency has 60 days to provide Congress with a report on ways to keep rates more affordable.

"During the delay, FEMA and Congress need to go back to the drawing board for a permanent fix to ensure that our neighbors and small business owners do not suffer unconscionable increases," Rep. Kathy Castor, D-Tampa, added.
 

Keep up with the latest news and events

Join our mailing list, it’s free!