Washington, Jul 15, 2010 - Today, the U.S. House of Representatives approved legislation that would impose a five-year delay of new Federal Emergency Management Agency (FEMA) requirements for certain homeowners located in “Special Flood Hazard Areas” (SFHA) to purchase flood insurance.  The Flood Insurance Reform Priorities Act now proceeds to the U.S. Senate for consideration.

"This legislation would bring relief to thousands of El Pasoans who will be required to purchase flood insurance next year under FEMA's new Flood Insurance Risk Map for El Paso," Congressman Reyes said.  "The IBWC has received millions in federal stimulus funding to upgrade El Paso's levees so local residents will not be subject to these new requirements, but the Commission needs more time to compete these improvements.  This bill will provide the time necessary for IBWC to do their work and give residents greater flexibility to determine if flood insurance is right for them."    

Under FEMA’s newly-released Flood Insurance Rate Maps for El Paso, approximately 5,000 parcels in El Paso’s Upper Valley would be subject to mandatory flood insurance requirements in 2011.  The Flood Insurance Reform Priorities Act would delay FEMA requirements for five years in areas recently declared a flood zone.  This five-year delay would provide the International Boundary and Water Commission (IBWC) additional time to improve the levees in the area until residents are no longer at high risk for flood damage.  This delay would also provide homeowners with more control over their insurance coverage by allowing them to decide whether flood insurance is necessary, depending on level of risk.

The bill also creates a flood insurance premium payment installment plan for all homeowners to allow greater flexibility for consumers when paying their premiums.

Following the historic 2006 floods in El Paso, Congressman Reyes was instrumental in obtaining funding for levee upgrades and other urgent needs for the IBWC in Congress.  The American Recovery and Reinvestment Act enacted in February 2009 provided more than $220 million for IBWC levee rehabilitation and other improvements.  Congressman Reyes has also helped secure tens of millions in funding for other flood control infrastructure projects prior to the Recovery Act.    

More than five million homes and businesses currently rely on the National Flood Insurance Program (NFIP), which is the primary source of reliable and affordable flood insurance coverage.  This reform bill updates the NFIP, established over 40 years ago, to meet modern-day needs.  It raises maximum coverage limits for the first time since 1994, providing a stronger safety net for families threatened by flooding.  The bill also provides families with greater flexibility and options, by allowing them to pay for flood insurance in installments, and also creates a consumer protection office within FEMA to protect and assist policyholders.

The Flood Insurance Reform Act has been endorsed by numerous organizations, including the National Association of Realtors, the National Association of Homebuilders, the American Insurance Association, the Property Casualty Insurers Association, and the Independent Insurance Agents and Brokers of America.
 
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