Press
NAFCU letter urging support for H.R. 3370, the Homeowner Flood Insurance Affordability Act of 2014
February 24, 2014
The Honorable John Boehner
Speaker
U.S. House of Representatives
Washington, D.C. 20515
The Honorable Nancy Pelosi
Minority Leader
U.S. House of Representatives
Washington, D.C. 20515
Re: NAFCU support for the Grimm-Cassidy Homeowner Flood Insurance Affordability Act of 2014 (H.R. 3370)
Dear Speaker Boehner and Minority Leader Pelosi:
On behalf of the National Association of Federal Credit Unions (NAFCU), the only trade association exclusively representing our nation’s federal credit unions, I write today in support of the Homeowner Flood Insurance Affordability Act of 2014 (H.R. 3370) as amended by Representatives Michael Grimm (R-NY) and Bill Cassidy (R-LA). As you know, this important legislation would stop drastic premium increases under the National Flood Insurance Program (NFIP) while bolstering the NFIP reserve fund through an assessment on policyholders.
As evidenced by recent action in the Senate, there is broad bipartisan support for reasonable corrective action regarding properties and policyholders drastically impacted under the Biggert-Waters Flood Insurance Reform Act of 2012. Should Congress fail to act, it will mean that premiums continue to skyrocket for many American families. Furthermore, some local housing markets will be severely impacted as properties become more and more expensive to maintain for current and prospective homeowners.
Accordingly, NAFCU supports the Grimm-Cassidy legislation and looks forward to the bill’s consideration on the House floor later this week. NAFCU believes reinstating grandfathered rates by decoupling rate increases from Federal Emergency Management Agency (FEMA) remapping, and removing the requirement that premiums immediately move to full-risk rates when a property is sold, will help bring a level of certainty to the program, its participants, and the larger housing market. We also look forward to reviewing the FEMA affordability study mandated under the bill, and believe the timeframe and resources allotted for its completion are reasonable for all stakeholders involved.
Again, thank you for scheduling a vote on the Homeowner Flood Insurance Affordability Act of 2014 (H.R. 3370). We are already hearing reports from our member credit unions that sharp rises in premium increases are materializing and time is of the essence in addressing this issue. If NAFCU can be of assistance to you, or if you have any questions regarding this issue, please feel free to contact me or NAFCU’s Director of Legislative Affairs, Jillian Pevo, at 703-842-2836.
Sincerely,
Carrie R. Hunt
Senior Vice President of Government Affairs and General Counsel
cc: Members of the House of Representatives