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CUNA strongly supports efforts to pass long-term reauthorization of the National Flood Insurance Program (NFIP), it wrote to the Senate Banking, Housing, and Urban Affairs Committee for its hearing on the NFIP.
“We also recognize that continuing reforms may be necessary to improve the actuarial footing of the NFIP and to ensure stability in the housing market in affected areas,” the letter reads. “At the same time, it is vital that flood insurance premiums remain affordable so that families in parts of the country where flood insurance is required are not shut out of the opportunity to own a home.
CUNA encourages the committee—beyond the necessary long-term reauthorization of the NFIP—to focus on solutions that “ensure the cost of flood insurance premiums are rooted in the actual flooding risk of the property,” including
“CUNA strongly supports improvements to ensure flood insurance premiums are affordable, especially as the NFIP moves towards full implementation of Risk Rating 2.0. means-based discount programs on flood insurance should be carefully designed to avoid creating perverse incentives for further concentration of low-income and affordable housing in flood-prone areas,” the letter reads.
CUNA adds that the number of U.S. affordable housing units exposed to extreme coastal water levels is projected to triple by 2050 and encouraged the committee to take steps to avoid further exacerbation of the problem.