As the leading advocate for private property rights and housing issues, the National Association of REALTORS® supports long-term reauthorization and reform of the National Flood Insurance Program (NFIP) before it expires on July 31.
The NFIP as a critical tool to help protect homeowners and ensure access to affordable flood insurance. In fact, as flood insurance is required for a mortgage across 22,000 communities in America, a prolonged lapse in authority could jeopardize the sale of up to 40,000 homes per month in the United States.
While every day brings us closer to NFIP expiration, the urgency of its reauthorization is not new to Congress or anyone reliant upon the flood insurance program. Since 2008, NFIP has been extended 23 times and shut down for a combined period of 2 months.
As such, real reforms are needed to inject fiscal solvency into the program and make a significant, long-term reauthorization plausible. The fact that NFIP has borrowed $36 billion from taxpayers since 2005 shows just how desperately reform is needed. That’s why it’s so important that we take action now.
The past damages of Atlantic hurricane season is a constant and dramatic reminder of the devastation threatening tens of millions of Americans between June 1 and Halloween every year.
American homeowners deserve a flood insurance program that is solvent, effective and able to continue providing protections for decades to come. Congress has the chance to deliver on that promise, but with the newest Atlantic hurricane season already underway, the clock is ticking.