Missouri REALTORS® Applaud National Flood Insurance Program Reauthorization
COLUMBIA, MO (July 10, 2012) – Members of the Missouri Association of REALTORS® join other REALTORS® across the country in applauding Congress for passing a five-year reauthorization of the National Flood Insurance Program (NFIP).
The Biggert-Waters Flood Insurance Reform Act of 2012 was passed late last week as part of a transportation funding bill and signed into law by President Obama on Friday. The legislation extends NFIP authority through September 30, 2017.
“If you look at those areas in Missouri which have been affected by flooding over the past 20 years, you quickly realize that the lack of a stable and consumer-oriented flood insurance program would have a devastating effect on homeowners within our state,” said La Nora Kay, President of the Missouri Association of REALTORS®. “Missouri REALTORS® have been outspoken advocates of a long-term solution and the NFIP reauthorization is a clear indication that our voices have been heard.”
The National Association of REALTORS® (NAR) has long supported the NFIP, which protects property owners in more than 21,000 communities where flood insurance is required for mortgages. More than 5.6 million property owners rely on the program against flood-related disasters, which claimed more lives and property than any other natural disaster in the U.S. over the past century. In fact, floods are the most common natural disaster in the country; since 1990 floods have been declared in every state, along rivers and anywhere rain falls or snow melts.
Without the NFIP, families and business owners across the U.S. would go without essential flood protection, since the private market cannot guarantee the availability or affordability of flood insurance. The NFIP also saves taxpayers money, since it serves as an alternative to expensive federally funded disaster relief for flood victims.
For some time now, Congress has been approving short-term extensions of the NFIP authority to issue flood insurance policies. Since September 2008 there have been more than 17 extensions, and authority has been allowed to expire two times, delaying or cancelling 1,300 real estate transactions each day of the lapse, according to NAR research. During the June 2010 lapse, NAR survey data estimates that more than 40,000 home sales were delayed or cancelled, which undermined homebuyer and investor confidence.
“REALTORS® praise Congress for its bipartisan leadership on this issue and thank Reps. Spencer Bachus (R-Ala.), Judy Biggert (R-Ill.), Barney Frank (D-Mass.), and Maxine Waters (D-Calif.); as well as Sens. Tim Johnson (D-S.D.), Richard Shelby (R-Ala.), Jon Tester (D-Mont.) and David Vitter (R-La.) for their efforts,” said Moe Veissi, President of the National Association of REALTORS®. “Available and affordable flood insurance is essential to properly functioning real estate markets, and the certainty of a five-year reauthorization will allow long-term real estate investments that are vital to the U.S. economic recovery.”
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Founded in 1936, the Missouri Association of REALTORS® is the second largest trade association in the state with more than 18,000 members. Missouri REALTORS® unite to advocate for real property rights in Missouri, deliver comprehensive risk management programs and services, connect members through various media and events, and deliver association management services. For more information, go to: MissouriRealtor.org