MEDIA ADVISORY, Thursday, September 27, 2007
CONTACT: Yoni Cohen, Stark (202) 225-3202

WASHINGTON, D.C. -- The House of Representatives today passed the Flood Insurance Reform and Modernization Act (H.R. 3121), including an amendment authored by Congressmen Pete Stark (D-CA) and Dan Burton (R-IN) to require the Federal Emergency Management Agency (FEMA) to provide written notification to property owners affected by proposed changes to flood elevations. These notices would be sent after preliminary maps are drawn but before the start of a 90-day period during which communities can appeal to have homes removed from designated flood areas at no expense to their owners. Notices would also include an explanation of the appeals process and contact information for responsible officials.

In 2000, hundreds of residents in Fremont and San Leandro learned that they were required to purchase insurance only after the community appeals period had ended. In 2007, both Easy Bay communities worked with FEMA to update the organization’s flood maps, but have yet to receive word about changes to the area’s flood zones.

“People shouldn’t find out at the last possible moment that their homes were added to FEMA’s flood zones and that they are required to buy flood insurance,” said Stark. “Instead, they should be notified promptly and directly after preliminary maps are drawn. I’m glad the House passed my amendment to the Flood Insurance Reform and Modernization Act. Early notification will enable homeowners to appeal FEMA’s decision as a community and at no cost. That’s a simpler, better and fairer process.”

Property owners who learn they must purchase insurance after the 90-day community appeals period can appeal on an individual basis and pay out of pocket for a surveyor to review FEMA’s maps. These individual appeals, however, are time-consuming and expensive.

About three in four United States communities participate in the National Flood Insurance Program (NFIP). FEMA is currently in the process of a national map modernization and computerization program. Combined with a new requirement to certify the soundness of every levee in the country, the flood status of millions of Americans could change over the next several years.

The Flood Insurance Reform and Modernization Act increases funding for the modernization of flood maps and improves consumer protections for flood insurance policies. The bill also ensures the NFIP’s viability by phasing out subsidized rates on commercial properties and vacation homes built before 1974 and authorizing FEMA to raise policy rates by up to 10 to 15 percent a year if necessary. Finally, the act encourages broader participation in the program by providing for a new community outreach program and a study of how to increase participation by low-income families.

The Flood Insurance Reform and Modernization Act now awaits Senate action.