Condo Media - June 2014 - 10

N e w s
C A I

President Obama Signs
Flood Insurance Reform Act

AI applauds the efforts of the
U.S. Congress and President
Obama to reverse extreme flood
insurance rate increases enacted
by the Biggert-Waters Flood Insurance
Reform Act of 2012. In late March
2014, President Obama signed into
law the Homeowner Flood Insurance
Affordability Act (H.R. 3370).
"The Obama Administration realized the negative effects that BiggertWaters would have had on community
association homeowners," said Dawn
M. Bauman, CAI's senior vice president of government and public affairs.
"Although well-intended, BiggertWaters reforms would have created

an unmanageable situation for some
homeowners. Although CAI supports a
National Flood Insurance Program that
is not subsidized by American taxpayers,
Biggert-Waters created a situation where
community association homeowners and
residents were facing exorbitant increases in flood insurance premiums that
called into question the ability to insure
homes and common property."
H.R. 3370 provides direct relief to
homeowners facing exorbitant increases
in flood insurance premiums as a result
of the Biggert-Waters Flood Insurance
Reform Act of 2012. The BiggertWaters Act required that all flood insurance policies transition to actuarial pre-

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Condo Media * June 2014

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miums. As a result, many homeowners
across the country faced flood insurance
premium increases of more than 500
percent, calling into question the ability
to maintain flood insurance coverage.
The legislation provides a more sustainable flood insurance premium structure that will lead to more homes and
businesses being covered by flood insurance. H.R. 3370 also improves flood
zone mapping procedures and imposes
a fee on policyholders whose premiums
do not reflect actual flood risk.

Fairness in Disaster Relief

In a related issue, U.S. Representative
Steve Israel sent another letter to FEMA
Administrator William Fugate regarding
fairness in disaster relief for community
associations and the lack of eligibility for
housing cooperatives and condominium
associations to apply for federal disaster
assistance through FEMA.
The Consolidated Appropriations
Act for Fiscal Year 2014 requires
FEMA to report to the House Appropriations Committee, House Committee on Transportation and Infrastructure, and the Senate Committee on
Homeland Security and Governmental
Affairs on how to make cooperatives
and condominium associations eligible
for federal disaster assistance.
In presidentially declared natural
disasters, community associations face
high recovery costs while local governments are denied reimbursement
for debris removal and other disaster
recovery expenses in community associations. CAI continues to work with
members of Congress to seek fairness
in federal disaster relief for all homeowners in community associations. CM
For more info, contact CAI Government Affairs at 888-224-4321.

Condo Media - June 2014

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