NFIP Reform is Long Overdue
Will Congress reauthorize the NFIP by the current Sept. 30 deadline? And if they do, will they actually strengthen the program by making significant, much-needed reforms, or simply extend the expiration date, as they have done 25 times since 2017, including three brief lapses? So far there seems to be little interest in making NFIP a priority in this Congress, although some members are expressing interest, especially in the Senate.
In any event, ASFPM members have shared the many concerns they have with the NFIP as it currently exists. This applies to all four legs of the NFIP: insurance, mapping, regulations, and mitigation. As we seek to educate Congress on the many issues our members face in implementing the NFIP, we are updating our ASFPM NFIP priorities for 2023. We have shared a draft of the updated priorities with our Board of Directors and Committee Co-Chairs for comment and will share the final priority list with members soon. In the meantime, you can look at our 2022 NFIP priorities here on the website.
I have outlined below some of the key reform issues. I encourage you to send us your thoughts and recommendations after reading this post and reviewing the 2022 list of priorities.
- Flood Insurance – One of the big issues that needs to be addressed as part of any kind of NFIP reform is affordability. The cost of flood insurance is climbing fast and many of the older homes in high flood risk areas were built prior to the NFIP being enacted over 50 years ago and are owned by lower income people of a diversity of backgrounds. We need a program that will help more people afford insurance.
In addition, flood insurance has become disconnected from the other three legs of the NFIP stool and needs to be reintegrated. For example, flood mapping is partially funded by the flood insurance policy fee. As private flood policies increase, there needs to be a way to make up the loss to the map funding due to the addition of private flood policies. Flood insurance claims data must be shared fully with local and state floodplain managers in order for them to determine substantial damage and issue or deny appropriate rebuilding applications.
The Biden administration and many in Congress are making equity and social justice a priority in a variety of program areas, and the NFIP clearly has a role to play in that effort. One step would be for Congress to forgive the NFIP debt, relieving some of pressure on older home premiums. Another step would be to eliminate the flood insurance requirement for accessory buildings (e.g. agricultural buildings), whose value is less than the lowest deductible amount (currently $1,000).
- Mapping – Only one-third of the nation’s floodplains and coastlines have been mapped by FEMA to date. It’s important to prioritize completing flood mapping ahead of development in currently undeveloped areas so that people buying homes and businesses or considering development in such locations have the flood risk data necessary to make informed decisions about their risks. Those maps must include future conditions risk assessment from development and increased storm intensity, as mandated by Congress in 2012, but not yet done by the NFIP.
- Regulations – The NFIP’s minimum land use regulations have not been updated for about 40 years. FEMA has issued a request for information in September 2021 to update the regulations in response to a 2021 petition from NRDC and ASFPM. Many of you have submitted comments, revisions, and additions by the January 2022 deadline as did ASFPM (see our recommendations). Regulatory updates are sorely needed for subdivisions and CRS needs to recognize and credit stronger local and state regulations.
- Mitigation – Mitigation upgrades include: focusing HMA funding on nonstructural actions like buyouts and elevations, which FEMA has lately and inexplicably been backing away from; increasing the Increased Cost of Compliance (ICC) funding so we can begin to seriously cut down the number of repetitive loss properties; and substantially boosting funding for pre-disaster mitigation. We also recommend that FEMA develop a cost-sharing program similar to the Community Assistance Program (CAP), and work closely with states to ensure they have the capability to assist their communities in applying for and implementing mitigation.
What are some of the biggest needs in your community when it comes to NFIP reform? Please contact the policy team and share what you’d like to see.
