Press Releases

For Immediate Release: November 20, 2003

House Approves Revision of Flood Insurance Program

WASHINGTON-The U.S. House of Representatives Thursday voted overwhelmingly to pass legislation that would reform the National Flood Insurance Program (NFIP) and separately agreed to a three month extension of the current program to allow the Senate to take up the bill early next year.

The bipartisan bill, introduced by Reps Earl Blumenauer (D-Ore.) and Doug Bereuter, (R-Neb.), would revise the program administered by the Federal Emergency Management Association (FEMA) that provides affordable coverage against flood disasters for homeowners, renters, and business owners in floodplain areas. The program provides more than $600 billion in coverage for approximately 20,000 communities. The program would have expired at the end of the year if no action had been taken. Rep. Barney Frank, the Ranking Member of the House Financial Services Committee, called on Congress to pass a bill reforming the program instead of another long-term extension.

“This is a long overdue step toward very significant reform,” said House Financial Services Committee Ranking Member Barney Frank (D-Mass.). “Reps. Blumenauer and Bereuter have succeeded where many before them have failed. I am confident that as a result of their work Congress will be able to enact a significantly reformed National Flood Insurance Program bill next year.”

The legislation addresses the excessive costs to NFIP of repeatedly flooded properties and provides fair and generous mitigation assistance to the owners of those properties while protecting homeowners’ rights. The mitigation assistance includes elevating or flood-proofing homes to prevent further losses or the purchase of a home at replacement value. Individuals who refuse mitigation assistance would pay higher flood insurance premiums for choosing to live in a risky area.

-30-

The Committee oversees all components of the nation's housing and financial services sectors including banking, insurance, real estate, public and assisted housing, and securities. The Committee continually reviews the laws and programs relating to the U.S. Department of Housing and Urban Development, the Federal Reserve Bank, the Federal Deposit Insurance Corporation, Fannie Mae and Freddie Mac, and international development and finance agencies such as the World Bank and the International Monetary Fund. The Committee also ensures enforcement of housing and consumer protection laws such as the U.S. Housing Act, the Truth In Lending Act, the Housing and Community Development Act, the Fair Credit Reporting Act, the Real Estate Settlement Procedures Act, the Community Reinvestment Act, and financial privacy laws.