Menendez-Isakson Flood Insurance Bill Passes Senate 67-32, Will House Vote?

WASHINGTON – From Capitol Hill to grassroots Cape May County bipartisan jubilation was expressed after Jan. 30 Senate passage (67-32) of the Menendez-Isakson Homeowner Flood Insurance Affordability Act. But no celebration can take place until President Barack Obama’s signature is on the document.
As of Jan. 31, the needed vote was a House away.
It remained in the domain of House Speaker John Boehner to post the bill for a vote. Should he post the bill, a vote could take place in 72 hours.
If signed into law, flood insurance premium hikes would be frozen “until Federal Emergency Management Agency completes an affordability study, provides solutions to mitigate their affect and scientifically certifies the accuracy of their maps,” according to a release issued by Sen. Robert Menendez (D-NJ).
Cape May County’s waterfront municipalities, and some inland communities and homeowners deemed to be in a flood zone, would be impacted by soaring premiums in the wake of the Biggert-Waters Act in 2012 is no action is taken.
For that reason, one of those elated by the senate vote was Cape May County Freeholder Director Gerald Thornton.
“Finally somebody started waking up in Washington,” said Thornton in a telephone interview Jan. 31. “I am really impressed after such a short period we have been advocating for this that a vote took place.”
Thornton, who serves on the Hurricane Sandy Rebuilding Task Force, a presidentially-appointed entity, had been an outspoken critic of the Biggert-Waters Act because of its broad economic and social impacts, not only in the county, “But in every coastal, river and lakefront community in the nation, from Maine to Washington, the Great Lakes and all the rivers.”
As a task force member, he spoke to large contingents in Washington, New York, Trenton and Newark. As many homeowners and second homeowners began to rebuild after Sandy, some were stunned by flood insurance premiums so high, some of them told Thornton they did not know whether or not to “walk away from their houses.”
“It was just unworkable and it was done without any economic impact studies done on communities it impacts,” Thornton said. “I made it a point over and over, when word reaches across this nation’s waterway and coastal communities how damaging it will be to the economies of those areas, they will be forced to change it.” Thornton said.
“I am hopeful they are not putting the wolf away from the door for another four to eight years, and really address those needed changes to make this a viable piece of legislation. I continue to make the point, if they raise the deductible to a higher amount whatever, maybe $25,000 or $$30,000, it will have less impact overall and yet people could still be insured without exorbitant flood insurance costs,” Thornton continued.
“That way, people who wanted to live in flood-prone areas would have the risk of high deductibles,” he said.
Lower Township Mayor Michael Beck also is urging quick passage in the House.
“From the township’s perspective, we need to have the implementation of the FEMA map and new flood insurance rates postponed,” stated Beck in a release. “Lower Township has major issues with the FEMA maps as they now stand.”
“We would support all of our legislators in their attempt to postpone the implementation of the insurance maps,” he continued. “The delay would be of great benefit to the township, he said.
Beck said the township is challenging the manner the new flood maps were prepared.
“If they went into effect now it would be very harmful to Lower Township and all the communities along the bay side,” he said. “We have been out front in our opposition to the zones along the bay front and inland not the just the “V” zones.”
Ward 2 Councilman James Neville said the township hired Stewart Farrell, executive director of Coastal Research Center, to encourage FEMA to make adjustments to the final map which determines flood insurance rates.
“In four years, you may be paying more for insurance than your mortgage payment,” said Neville. “We want them to take into consideration any of the seawalls or wave energy reducers.”
“The science they applied for the wave action is ocean-based and there is no way they should be able to force that on to the Delaware Bay shoreline because it’s not in any way shape or form equivalent due to depth,” he continued.
Co-sponsor of the bill, Menendez stated, “This is a triumphant victory for the thousands of New Jersey homeowners who need our help and stood up, spoke out and stuck with me until we took this flood insurance relief bill over the finish line.”
“At a time when ordinary families are frustrated because government doesn’t seem to listen, I heard you loud and clear and thankfully both sides of the aisle came together to fix this problem so middle class families can afford flood insurance and stay in their homes, businesses can stay open, and property values won’t plummet. This fight isn’t just about insurance-rate-tables and actuarial risk rates – it’s all about hardworking people. People who played by the rules their whole lives and are now facing a life altering event they never could have prepared or planned for.
“But our fight is not over,” he added. “Now we must call on Speaker Boehner and the House to pass this legislation so we can send it to the President to sign it into law.”
A wave of insurance claims after Hurricane Katrina put the National Flood Insurance Program on the verge of bankruptcy. In 2012, Congress passed a law, known as Biggert-Waters, to restore its solvency. But drastic rate increases mandated by Biggert-Waters are placing a tremendous burden on recovering flood victims.
The bill’s other co-sponsor; Sen. Johnny Isakson (R-Ga.) similarly lauded the bill’s passage.
He noted it “would protect millions of homeowners from being hit by huge flood insurance premium rate hikes. The legislation would also require the FEMA (FEMA) to complete an affordability study and propose real solutions to address affordability issues before any flood insurance premiums can be raised in the future.
“I am delighted that the Senate came together in a bipartisan manner to protect millions of Americans from the steep increases in their annual flood insurance premiums,” stated Isakson. “Without action, many Americans and Georgians could lose their homes or see their home values plummet. I look forward to working with my friends in the House to ensure that flood insurance is both affordable and sustainable for the American people.”
Specifically, S.1926 delays implementation of certain provisions contained in the Biggert-Waters law that was enacted in 2012.
Isakson has worked with Republicans and Democrats for several months on the flood insurance legislation. He has repeatedly voiced concern that without action, some homeowners would not be able to afford large increases in their flood insurance premiums and in turn, could lose their homes. As a result, housing markets in flood plain and coastal areas would be hurt, causing local economies to decline.
U.S. Rep. Frank A. LoBiondo (R-2nd) stated in a release, “More than a year after Sandy, there remains a host of issues hindering South Jersey residents as they rebuild their homes, their businesses and their lives. Where it is possible to ease any further negative impact, I’m willing and determined to do so. I applaud the Senate’s strong bipartisan stance in support of delaying planned increases to many flood insurance premiums. I applaud Sen. Menendez for taking a lead on this critical issue and appreciate Sen. Booker’s support of our efforts. I urge my colleagues in the House to follow their lead.”
Since Hurricane Sandy’s landfall on the Jersey Shore, LoBiondo has worked to ease the impact of increasing flood insurance premiums mandated by the June 2012 Biggert-Waters Flood Insurance Reform law.
Over the past year LoBiondo has had repeated conversations with FEMA Administrator Craig Fugate, Obama administration officials, and House Financial Services Committee Chairman Jeb Hensarling (TX-05), whose committee has Congressional oversight over the flood insurance program. Supported by House Republican leadership, LoBiondo has also served on a task force charged with finding a common-sense solution to the national problem.
“There is a finite window of opportunity to help millions of households from the crushing financial burden on the horizon. There is bipartisan agreement on the scope and depth of this problem. There is also a bipartisan solution readily available and approved by the Senate. It is imperative we take action and inexcusable if additional vote delays occur,” concluded LoBiondo.