|NFIP - Congress Passes 5yr Extension|
|Wednesday, 25 July 2012 14:56|
In an important victory for the National Association of Home Builders (NAHB) and the National Association of REALTORS® and its members who rely on the National Flood Insurance Program (NFIP), Congress reached an agreement to reauthorize the program through Sept. 30, 2017.
In the past few years, the NFIP has experienced several short-term lapses in authorization, forcing many home buyers to delay or cancel closings due to the inability to obtain NFIP insurance for a mortgage. In other instances, builders were forced to stop or delay construction on a new home due to the lack of flood insurance approval, resulting in unnecessary delays and job losses. Both associations have been working tirelessly to make sure that this vital program, which was set to expire on July 31, was reauthorized for five years to ensure that the federally-backed flood insurance program operates smoothly and without delay, remains efficient and effective in protecting property owners, and creates more stability in the housing market. One of the caveats to the five year re-authorization is that "non-primary residences" will incur annual 25% increases over the next few cycles to make the program more actuarial sound. More than 20,000 communities nationwide participate in the insurance program, which currently covers about 5.6 million policyholders.