The Silicon Valley Association of REALTORS® (SILVAR) praised Congress for finally passing a 5-year reauthorization of the National Flood Insurance Program (NFIP. The House passed the "Biggers-Waters Flood Insurance Reform and Modernization Act of 2012" by a vote of 373-52 and sent the measure to the Senate, which passed it, 74-19. President Barack Obama is expected to sign it into law.
According to the National Association of REALTORS® (NAR), the 5-year reauthorization will bring certainty to real estate transactions in more than 21,000 communities nationwide where flood insurance is required for a mortgage. The measure, which was one of the real estate industry's key legislative priorities, ensures the NFIP will continue long-term for more than 5.6 million businesses and homeowners who rely on it.
At the NAR's May Midyear Meetings in Washington, D.C., members of the Silicon Valley Association of REALTORS® were among thousands of REALTORS® nationwide who met with members of Congress and urged action on the National Flood Insurance Program (NFIP) and several other priority issues. "We are happy that Congress has passed a 5-year reauthorization of the flood insurance program. Through the years, REALTORS® have worked hard to seek a long-term extension to prevent continued lapses in flood insurance coverage which has caused buyers' loans to be delayed or denied," said SILVAR president Suzanne Yost.
"As REALTORS®, it is our responsibility to protect the American dream of homeownership. This latest legislative victory shows it is important for us to persevere on these issues for the sake of consumers, homeowners and future homeowners. The long-term reauthorization of the NFIP will give lenders and homeowners the assurance that flood insurance will be available for homeowners and those buying and selling real estate," continued Yost.
Since 2008, Congress had been extending the National Flood Insurance Program a few months at a time. Twice this led to shutdowns, including one that stalled more than 40,000 home sales in June 2010 alone. The NFIP will be in effect until Sept. 30, 2017, and includes several reforms, such as allowing multifamily properties to purchase NFIP policies AND imposing minimum deductibles for flood claims.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.