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Leads Bipartisan Coalition in Calling for Further Study on the Impact New Requirements Would Have on Economic Development and Affordable Housing
WASHINGTON, D.C. – Congressman Marion Berry (AR-01) led a bipartisan group of 20 Members of the House in sending a letter to urge the rejection of mandatory flood insurance purchase requirements included in the Senate version of H.R. 3121, the Flood Insurance Reform and Modernization Act of 2007. The Senate legislation would require all property owners near levees, dams, and other flood control structures to purchase flood insurance. The letter is addressed to Senators Christopher Dodd and Richard Shelby, chairman and ranking member of the Senate Committee on Banking, Housing and Urban Affairs.
"In these tough economic times, it would be an additional financial burden to force Arkansans living and doing business behind certified levees to purchase flood insurance," said Berry. "In addition, this decision could make Arkansas less attractive for potential businesses because of the extra costs associated with this law."
The House version of H.R. 3121 also includes an amendment offered by Berry which forced FEMA to modify its warning notes on flood maps in order to more fully and accurately describe the protection value of levees and to prevent confusion regarding flood insurance purchase requirements.
Berry continued, "While it is important that people understand their flood risks, this one-size-fits-all policy is wrong and ignores the billions of dollars in investments taxpayers and local communities have made for flood control projects. This is why I'm urging the Senate to adopt the more reasonable House provision of this bill, which recognizes the need to protect economic development and affordable housing in these areas of our state."
Text of the letter including list of cosponsors is below:
July 9, 2008
The Honorable Christopher Dodd The Honorable Richard Shelby
Chairman Ranking Member
Committee on Banking, Housing Committee on Banking, Housing,
and Urban Affairs and Urban Affairs
534 Dirksen Senate Office Building 534 Dirksen Senate Office Building
Washington, DC 20510 Washington, DC 20510
Dear Chairman Dodd and Ranking Member Shelby,
As the reauthorization of the National Flood Insurance Program moves toward conference, we would urge the Senate to recede to the House on the important issue of mandatory participation in National Flood Insurance Program in areas that are located behind levees, dams, and other man-made structures.
We believe the House language, embodied in H.R. 3121, Sec. 3(a)(2), is a reasonable and responsible way to address the risk to structures in residual risk areas. The House bill requires a study to assess the risk for properties protected by levees, as well as impacts of mandatory purchase requirements on homeowners, local communities, and small businesses.
Clearly not all levees, dams or floodwalls are created equal; without more information regarding the specific risks involved and the individual costs to be imposed, a requirement to purchase flood insurance appears premature and arbitrary and has potentially severe consequences for economic development and affordable housing in these areas. Across the nation, significant investment of federal, state, and local resources to protect homes and businesses from risk of flood has and continues to take place. Congress has encouraged these investments and has spent billions to help protect communities from flood risks.
We understand, as Senate Report 110-214 stated, that “while only 1 percent of homes outside mandatory purchase areas have flood coverage through NFIP, 25 percent of flood claims are outside the 100-year floodplain.” However, we are not persuaded by the conclusion that property owners behind levees and downstream from dams should be subjected to mandatory purchase requirements. The study proposed in the House version, coupled with increased efforts to notify individuals of their risk, will lay the groundwork for any changes which may need to be considered in the future. At which point, Congress will be in a better position to make a determination based on the actual risk posed in these areas and the impact of new requirements.
Thank you for your consideration of this request, and we urge adoption of the House language.
Co-Signers
Marion Berry Jo Ann Emerson
Nick Lampson Dana Rohrabacher
Travis Childers Ron Paul
Rick Renzi Phil Hare
Harold Rogers Edward Whitfield
Vernon Ehlers Stephanie Herseth Sandlin
Alcee Hastings Gabrielle Giffords
Mike Ross Kenny Hulshof
Loretta Sanchez Linda T. Sanchez
Charles Boustany Frank Pallone
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