by Russell Riggs
On Oct. 4, 2011, Congress extended National Flood Insurance Program (NFIP) authority as part of a broader stopgap government funding measure, the Continuing Appropriations Act (H.R. 2608). This latest extension will run through Nov. 18, 2011.
However, while NAR is urging Congress to use the additional time to complete work on a 5-year NFIP reauthorization and reform bill (H.R. 1309), sources from the Hill say this is anything but a done deal. While long-term reform and reauthorization would provide certainty and avoid further disruption to real estate markets, a tough Washington lobbying fight among America’s insurance companies threatens to delay the long-term renewal of the National Flood Insurance Program later this month. All this may mean the bill, and its other reforms of the flood insurance program, gets kicked down the road. A likely outcome could be another one-year extension included in a final fiscal 2012 spending bill. NAR will continue to push for the 5-year reform and reauthorization bill in order to give confidence to real estate markets nationwide.
Almost every region of the country has been devastated by flood issues throughout 2011. Living with short term NFIP extensions continues to wreak havoc in all aspects of property ownership. A long term solution is necessary, as is the need for everyone to continue calling and reminding those in Washington DC of the importance of this goal.