Senate Passed Homeowner
Flood Insurance Affordability Act
The House of Representative passed the bill last week ,
yesterday the Senate passed the Homeowner Flood Insurance Affordability
Act of 2014, which would protect millions of homeowners from being hit by huge
flood insurance premium rate hikes. The bill, H.R.3370, was approved by the
Senate Thursday by a vote of 72-22. The measure will now advance to the White
House to be signed into law. By the President
H.R.3370, will mitigate the unintended, unaffordable annual
flood insurance premium increases felt by many homeowners that were included in
the Biggert-Waters law enacted in 2012. The bill reinstates the grandfathering
provision of the flood insurance program, protecting homes that complied with
previous flood maps from being hit with rate spikes due to new mapping.
The would allow home sellers to pass
taxpayer-subsidized policies on to the people buying their homes instead of
requiring purchasers to pay actual rates
immediately, as required by the 2012 law. The new rates are particularly high
in older coastal communities in states like Florida, Massachusetts and New
Jersey, and have put a damper on home sales as prospective buyers recoil at the
higher, multifold premium increases.
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