Menendez Blasts Senate Republican Obstruction of Votes to Help Homeowners in Flood Zones
WASHINGTON, D.C. – May 15, 2013 – (RealEstateRama) — U.S. Sen. Robert Menendez (D-N.J.) today blasted Republican obstruction of votes in the Senate on legislation that would have helped people living in flood zones.
“Republicans insisted on ending an affordable flood insurance program and now one Republican from a neighboring state blocked a vote to simply delay devastating insurance rate increases on residents trying to rebuild after Superstorm Sandy,” said Sen. Menendez, who helped lead the New Jersey delegation in the fight for federal Sandy aid.
“This is the same kind of Republican obstructionism that nearly eliminated the entire National Flood Insurance Program, and forced steep premium increases on homeowners, without any regard for people’s safety or government’s public responsibility. It is time we come together to help rebuild, not extend the suffering from this devastating storm.”
The National Flood Insurance Program has typically charged premiums at about 40-45 percent of their total cost, with the help of federal subsidies, for the approximately 20 person of policies that are subsidized. The Biggert-Waters Act, which was passed last year, phased out the federal subsidies.
An amendment introduced by Sen. Mary Landreiu (D-LA) would have frozen the federal subsidies for 5 years before the phase out begins for primary homeowners who are being added into a new flood zone.
An amendment introduced by Sen. Tim Johnson (D-SD) would have required the Federal Emergency Management Agency (FEMA) to conduct a study to assess the possibility of making voluntary community-based flood insurance policies available through the National Flood Insurance Program. Community-based flood insurance could provide communities with the option to purchase blanket policies for all properties in their communities or a portion of their communities. This could allow for communities to offer more affordable insurance policies to their residents and provide greater incentives for community-wide mitigation activities.
It would also eliminate the 50 percent cap on state and local contributions to levee construction, reconstruction, and improvements. Finally, it would require FEMA to expedite its NFIP premium affordability study that Senator Menendez got included in the Biggert Waters Act, and permit FEMA to use available funds outside of NFIP to complete the study.
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