Rose Announces New Legislation to Protect Homeowners from Drastic Hikes in Flood Insurance

Statement

Congressman Max Rose today announced new legislation he will introduce this week to protect homeowners from unexpected and potentially drastic hikes in flood insurance premiums by requiring the Federal Emergency Management Agency (FEMA) to report on the impacts of any changes in the national flood insurance program before they go into effect.

"Last year, I stood here and announced my opposition to a plan by FEMA bureaucrats to completely upend the National Flood Insurance Program and throw thousands of Staten Island homeowners into absolute confusion," said Rose at a press conference on Staten Island with local homeowners. "It was a plan drafted behind closed doors to overhaul how premiums are determined, and then we stood up here and we noted that when we asked FEMA what the impact of it would be, they told me "wait and see.' Well, I'm not willing to play Russian roulette with my constituents' futures. And guess what? FEMA heard us, the Administration heard us. We aligned ourselves in a bipartisan group, put politics aside, did the right thing and we won. FEMA announced they'd delay Risk Rating until next year. But we're not satisfied to sit back and say I did my job. We're here to announce that this week, I will introduce new legislation that will block FEMA from implementing any similar changes in how they calculate flood insurance until they've demonstrated to Congress, until they've demonstrated to communities just like this what exactly the consequences will be."

Last year, the Administration proposed an overhaul of how the National Flood Insurance Program (NFIP) calculates premiums and rates called Risk Rating 2.0. Citing a lack of information on how this overhaul would impact his constituents, Rose led a bipartisan effort demanding answers from FEMA on how Risk Rating 2.0 could devastate homeowners. Following continued pressure by Rose, FEMA announced it would delay implementation of Risk Rating 2.0--which is now scheduled to be implemented in October 2021.

"Thank you Congressman Max Rose, we appreciate all that you've done already so far," said Joseph McAllister, President of the South Beach Civic Association. "People are out of work, losing their homes, can't afford to pay their rent, can't afford to pay their mortgages, can't get food on their table--and are trying also to pay the FEMA insurance. They're not getting a break from FEMA on fees or bills. We need something to get done now, stop the procrastination."

Rose's new legislation would require FEMA to report to Congress prior to implementing any overhaul to how it calculates flood risk. Specifically, FEMA must report on what these changes will mean for:

-Enrollment in the NFIP as some policies become more expensive and homeowners drop out, or more affordable and bring low-risk properties into the system, thus stabilizing the program's finances.
-Overall changes in the cost of premiums.
-Property values due to fluctuations in premium prices in communities with high flood risk.
-Overall financing for the NFIP.
-Funding for other activities run through the NFIP, like the community rating system and flood mitigation efforts.
-Homeownership rates in impacted communities.

Rose continued, "On Staten Island and in South Brooklyn we've been struggling year after year after year as premiums have gone up and up and up. Now if they start to skyrocket, families might not be able to afford to pay and may drop insurance, leaving them exposed should the next storm hit before the seawall is ready. Increased insurance premiums will also increase the costs and risks of homeownership--decreasing home values, undermining the nest egg my constituents have worked hard for all their lives. Now, if FEMA is cooking up a plan that they think is so good, all we're saying is prove it to us before you start charging us."

Under the current system, FEMA assesses flood risk according to whether or not a property falls into an identified flood plain, with all properties in that flood plain being assessed the same risk of flooding. Risk Rating 2.0 aims to assess properties' individual and unique risks, which can potentially increase premiums for families living in high-risk areas. Currently, annual premium increases are capped at 18 percent under the NFIP, though premiums can actually rise higher according to actual risk over several years. Rose has backed a bipartisan proposal that would cap annual increases at 9 percent--half of the current cap on premium hikes.

Rose has made protecting Staten Islanders and South Brooklynites from future storms a top priority and has led the fight against efforts to increase flood insurance costs for homeowners. Rose and a bipartisan group of local elected officials recently urged the New York City Public Design Commission to expedite its review of the design and plans for the Staten Island Seawall. The approval of the design the final step before New York City can fund its share of the Seawall and the Corps of Engineers can begin issuing contracts to get the project underway.

Rose's first piece of legislation, which was signed into law by the President, provided an easement which will allow the construction of the East Shore Seawall on Staten Island to help protect from future storms and reduce high flood insurance premiums for his constituents.

Source