Posted on 09/20/2011 9:29:51 AM PDT by Palter
Real estate industry warns of consequences
Fearing another blow to a still-fragile housing market, real estate agents are pushing Congress to grant a long-term extension to the National Flood Insurance Program, which is set to expire this month for the 10th time in two years.
Established by Congress in 1968, the program provides coverage to more than 5.6 million home and business owners in more than 21,000 communities nationwide that have adopted floodplain management plans in an effort to mitigate flood damage.
Though private insurers sell the policies and administer claims, the federal government sets rates and assumes liability for coverage.
The program has bipartisan support — the Senate Committee on Banking passed a bill last week that would grant a five-year extension. But the program fell into heavy debt after Hurricane Katrina and disagreements over how to reform it have stalled a long-term solution, leading to nine short-term extensions and five lapses since September 2008.
Many mortgage lenders require flood insurance for homes inside the floodplain. Private flood insurance is too expensive for most homebuyers, so floodplain homes have a hard time selling during lapses in the federal program, said Paula Martino, government affairs director for the Southern Maryland Association of Realtors.
During a June 2010 lapse, 47,000 home sales were delayed or canceled, according to the National Association of Realtors.
“Americans deserve access to affordable flood insurance, and the current uncertainty surrounding the program is already hurting many housing markets,” SMAR President Paul Fenton said in a news release.
U.S. Rep. Steny H. Hoyer (D-Md., 5th) voted for a five-year reauthorization of the program that the House of Representatives passed by an overwhelming margin in July.
(Excerpt) Read more at gazette.net ...
Joy.
How about we let people in flood prone areas pay market rates for flood insurance? The area in which we live isn’t flood prone and I’d like to buy flood insurance but I can’t afford it because the rate I get on my modest $120K home is expected to help subsidize luxury mansions on the Outer Banks.
Of course. Everyone knows that insuring homes for flood damage is one of the enumerated powers of the fed govt.
/s
It must be that building homes in flood plains is in the national interest so therefore the taxpayers should ante up regularly for the inevitable damage. Why don’t subsidize building on the slopes of active volcanoes too?
I agree with you, those who are in flood prone areas and ‘know’ it should pay for the full cost of their flood insurance.
But on the other hand what about those floods that have been caused by the Corps of Engineers, The Mississippi River Levees that were broken in Missouri for Example. Or the Floods in Fargo, As I understand it the Corps was told there was a danger from excess snow pack and rains in the Fall and Winter. They were told they needed to reduce the pressure on the dams and flood control system before the spring thaw.
So other than Mother Nature the Federal Government is a major player in the cause of floods or the exacerbation of the floods.
I agree with you, those who are in flood prone areas and ‘know’ it should pay for the full cost of their flood insurance.
But on the other hand what about those floods that have been caused by the Corps of Engineers, The Mississippi River Levees that were broken in Missouri for Example. Or the Floods in Fargo, As I understand it the Corps was told there was a danger from excess snow pack and rains in the Fall and Winter. They were told they needed to reduce the pressure on the dams and flood control system before the spring thaw.
So other than Mother Nature the Federal Government is a major player in the cause of floods or the exacerbation of the floods.
They are still living next to a river! What do they expect? If you live in an area that has a history of flooding. You assume the risk.
It is the height of hubris to assume that man can control mother nature. And anyone who takes that belief will suffer from it.
Disagree about those caused by the Corps. The government should pay every homeowner to rebuild when the floods were caused by the government.
It is the height of hubris to assume that man can control mother nature. And anyone who takes that belief will suffer from it.
A good point. Thank you.
But the Corps of Engineers has done it. And when their efforts fail those who believed in them and their works paid dearly. If they had not done it then I imagine that buildings in those flood prone areas would have been designed and built to standards that would survive a ‘reasonable’ flood experience.
I recall 25 years ago, plus or minus, the US bought out an entire Southern Indiana town which flooded often and re-built it a few miles away, away from flood waters.
I wonder what happened to the now federally owned, hopefully deserted town??
LOl. I did a quick Google search for that town. The funny thing was, the last hit on page 1, was for Palestine to get their own state. WTF! Stupid google, indiana and flood brings that up? Yeah, no politics.
Typical - dump private risk on the public.
Typical - dump private risk on the public.
my recollection is that Indiana Hwy 37 ran through the town and that it was North of I-64, but the name escapes me.
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