Washington, DC (June 26, 2006) – Today, the U.S. House of Representatives passed H.R. 4973, the “Flood Insurance Reform and Modernization Act of 2006.  Congressman Rubén Hinojosa (TX-15) introduced, and the House passed, an amendment to the bill that requires the Government Accountability Office (GAO) to study ways to increase the participation of low-income property owners living in high-risk flood areas to participate in the national flood insurance program. 

Also, the study requires the GAO to analyze the impact of the proposed 500-year floodplain maps would have on low-income homeowners.  Under the amendment, the GAO is required to present its report to Congress no later than one year after the enactment of the Flood Insurance bill.

“Currently, there are thousands of low-income families living right in the middle of communities prone to flooding,” said Hinojosa.  “Many times these families cannot afford homeowner’s insurance, let alone the extra cost of flood insurance.  We learned from Hurricane Katrina that many people aren’t even aware of the level or type of coverage they have, or what they need to recoup losses from a storm.  This study will help Congress better understand the needs of our low-income constituents and how to ensure they’re protected during natural disasters.”

Specifically, H.R. 4937, increases funding to cover Katrina-related items for the Federal Emergency Management Agency; it increases maximum coverage limits for residences, businesses and churches; requires FEMA to gradually phase-out subsidies on vacation homes, second homes, and nonresidential properties; and directs FEMA to develop more sophisticated and updated flood maps, maintain an inventory of levees, and move more quickly to update flood elevation standards and flood maps in the areas affected by last year’s hurricanes. 
 
The bill passed by a vote of 416-4.

“At a time when we’re working to homeownership for all Americans, we shouldn’t hinder those efforts by mandating insurance that people may not need – or might not be able to afford.” said Hinojosa.  “Such insurance requirements will tip the scale in the wrong direction, and low-income individuals will lose their homebuying power and once again be penalized more than more fortunate Americans.”