Flood Insurance Bill’s a Win, but No Victory Until Obama Signs

WASHINGTON – “What a win. When has the Congress amended any law to this extent? I’m really impressed with Congressman (Frank) LoBiondo’s efforts; a year ago he had little support in Congress. Democracy is very often sloppy but, sometimes it works. We should really savor this,” stated Freeholder Director Gerald Thornton commenting on the March 4, 306-91 (H.R. 3370) House vote to reform the federal flood insurance program.
While it is a victory, not until President Barack Obama’s signature is on the document will it become law, and homeowners get relief from those large premium increases.
Next stop on the bill’s trek to the White House is the Senate.
Sen. Robert Menendez (D-NJ) on March 4 signed off on the House companion legislation that closely mirrors his bill. Menendez worked closely with House and Senate leaders to ensure the House bill would provide adequate relief to homeowners.
“As a result of improvements made during bipartisan negotiations, I’m very pleased that the bill being put forth in the House will end the most egregious problems with the flood insurance program and bring some real relief to thousands of homeowners who desperately need our help,” stated Menendez. “I’m encouraged by this progress and hope we can bring the bill over the finish line very, very soon.”
In a perfect world, if the Senate used unanimous consent, and voted on the House bill, the bill could be at 1600 Pennsylvania Ave. “quickly” awaiting signature, said U.S. Rep. Frank A. LoBiondo (R-2nd) March 5.
There is a refund process in the bill that would provide relief to homeowners, said LoBiondo.
LoBiondo had hoped to include second home owners in the bill for relief, but that did not happen.
“I wanted to see it,” said LoBiondo, but that would not have passed muster at the Congressional Budget Office. To get a positive score there, no bill can add to the deficit. “We would have lost the bill,” he said. “It’s not perfect, but for the primary homeowner I think this is a huge step forward.”
He cited the overwhelming bipartisan support. This is not just good this is very good,” said LoBiondo.
Supporting the bill were 126 Republicans and 180 Democrats; but 86 Republicans and five Democrats opposed the bill.
Among Republicans who voted no were four from Kansas, three from Arizona, two from Oregon, four each from Michigan and South Carolina, seven from Georgia and 14 from Texas.
All members of both parties from Louisiana and Mississippi voted in favor of the bill.
LoBiondo said since the Feb. 7 flood insurance forum hosted by Cape May County Chamber of Commerce at Wildwood Golf and Country Club, a great deal of time and energy was spent behind the scenes “using common sense to produce a good product.”
The campaign was based on affordability for homeowners and the economic impact Biggert-Waters was having on towns throughout the nation.
The congressman said what came into focus across the “geographic and broad-based political spectrum cried out for reform.” He said that process was not followed in the original (Biggert-Waters) legislation.
“We had an opportunity to do something that was meaningful. This should be a model of how we conduct business,” said LoBiondo. “It was a very bipartisan, bi-cameral effort.”
While “we had a working team,” said LoBiondo, “There were a lot of forces against this.”
One of those forces, unnamed by LoBiondo, was Texas Rep. Jeb Hensarling, chair of the House Financial Services Committee. He reportedly told House leadership in a closed-door gathering of his opposition, in the belief that the bill was too extreme. House leadership, however, overruled him. It is his belief that the National Flood Insurance Program places taxpayers at too great a risk, while allowing homeowners to pay less for flood risk.
“I believe if he had the ability he would kill the whole National Flood Insurance Program,” said LoBiondo. “The measures he offered were not going to help,” he added.
LoBiondo noted Menendez’ “great effort” for getting a bill passed in the Senate, “It was a temporary reprieve that did not give a permanent fix.” That could have resulted in more anxiety and apprehension and an increased rate of instability in the real estate market in four years. The House version is a long-term fix that is fiscally responsible and solves the problem over a longer period of time.”
He likened maneuvering for the bill’s passage “was almost hand-to-hand combat.”
He said the majority of the opponents were from districts that never experienced flooding.
Thornton did what he could regionally to rally support for the reform bill. He often stated, the full impact of the Biggert-Waters Flood Insurance Reform Act of 2012 would have dire economic impact on Cape May County and its towns as homeowners faced soaring flood insurance premiums.
For PDF of The Homeowner Flood Insurance Affordability Act of 2014, go to:
http://filetransfer.cmcherald.com/h_uploads/editorial/FloodInsuranceBill.pdf