Louisiana REALTORS®, BANKERS and HOMEBUILDERS joined Louisiana’s Congressional delegation, along with Parish Presidents and statewide elected officials in a plea to delay implementation of the Biggert/Waters Flood Insurance Act of 2012

A hearing and site visit was held on Thursday August 8, requesting FEMAS Associate Director of Federal Insurance & Mitigation Administration, David Miller to delay implementation of the Biggert/Waters Flood Insurance Act of 2012 because of the lack of scientific data, research and the reality of catastrophic increases in flood insurance premium rates impacting many Louisiana citizens. David Miller and his staff from Washington DC spent two days in Louisiana inspecting flood control levees and other control features that prevent flooding. Mr. Miller and his staff also held a two hour meeting with Louisiana’s congressional delegation, statewide elected officials, Parish Presidents, including business leaders, members of GNO Inc. and representatives from the REALTORS®, Bankers and Homebuilder associations. The congressional delegation is requesting FEMA delay the enactment of the law in areas that will create catastrophic increases in flood insurance premium rates.

KEY ISSUES ADDRESSED AT MEETING:FEMA is beginning to recognize non – corps of engineer certified levees and other mitigation components in determining rates for the new flood policies-There still is a question of whether the National Flood Insurance Fund is 21 billion dollars in the red. Senator Landrieu has asked FEMA to provide an exact answer on this within two weeks,
Each flood insurance policy written contains a 30% administrative fee to write, administer and manage that policy. We asked the question whether FEMA could bring this cost down well below the 30% level. FEMA indicated they would look at ways to potentially achieve this,
Mr. Miller did clarify that properties sold after June of 2012 or properties where a flood policy had lapsed and had been re applied for, would as of October 1st receive a full rate increase without the benefit of a phase in rate over four or five years.
Mr. Miller did stress that it was imperative that our coalition educate other states and their political leaders on this issue, which could move more congressional members to realize there are unintended consequences of the Biggert/Waters Act.
FEMA is mandated by the Biggert/Waters Flood Act to conduct an affordability study. In June a bill appropriated several hundred thousand dollars for this study but so far FEMA has not begun the study because they say the cost of the study is more than what has been appropriated.

FUTURE ACTION SLATED: The Senate Banking Committee will conduct a hearing in September that is being spearheaded by Senator David Vitter,
Pressing FEMA to get the mapping process done right taking into account all flood protection components and to consider all scientific data,Senator Landrieu will conduct a hearing before the small business sub – committee to determine the impact Biggert/Waters will have on small businesses and commercial properties,
The Flood Insurance Coalition will reach out across the country to educate all political leaders on the devastating impacts this law will have on all property owners and the financial devastation it will create for communities around the country.