Dear Friend,

In late June, the House passed an amendment I wrote to improve homeowner notification in the National Flood Insurance Program.

This issue first came to my attention several years ago when flood maps were updated in Alameda County.  Thousands of residents in San Leandro and Fremont discovered that they were added to a floodplain only by getting a letter from their mortgage lenders.  They then had only 45 days to select a policy and pay the annual premium (of up to $2,000) or the lender would choose for them and add it to their monthly payment.  There was no explanation of what had suddenly determined them to be in a floodplain and the no-cost community appeal window was already closed.  Many residents hired surveyors -- at their own expense -- and were eventually found to have been incorrectly placed in the floodplain.   But they’d already been forced to buy the flood insurance so they were still out a lot of money.

There is no sound reason for the process to be that burdensome.  When I saw that Congress would be considering flood insurance reform legislation, I knew the opportunity had finally come for me to fix it. 

My amendment is simple.  It requires the Federal Emergency Management Agency (which administers the program) to send a letter by first-class mail to anyone added to a floodplain before the no-cost, 90-day community appeal period has started.  The letter must include an explanation of the appeal process and contact information for responsible officials.  This allows neighborhoods to work with the city to remove themselves from the floodplain as a group, or, at least to have more notice to purchase insurance.

The legislation I amended, the Flood Insurance Reform and Modernization Act of 2006 (H.R. 4973), is designed to improve the fairness of the flood insurance program by phasing out premium subsidies for vacation and second homes.  It now awaits consideration in the Senate.

It is a critical time to safeguard the rights of homeowners because FEMA is currently in the process of converting Alameda’s maps to computer format, which could change the boundaries of some floodzones. FEMA also recently announced that every levee in the country must either be certified or nearby properties must have flood insurance.  Since the 13^th District borders San Francisco Bay, this potentially affects many people.  New maps will be released next summer.

You can count on me to continue to work toward a more fair and open flood insurance program.

 

Sincerely,

Pete Stark

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