Congressmen Gonzalez and Faso Introduce Bipartisan Bill to Ease Financial Hardship of Flooding Damage

WASHINGTON – Congressmen Vicente Gonzalez (TX-15) and John Faso (NY-19) announced the introduction of H.R. 5618, The Flooded Homeowner Financial Relief Act of 2018. This legislation will provide regulatory relief for homeowners who face onerous and unnecessary flood insurance premiums on homes that the government has already agreed to acquire.

In the wake of flooding and other natural disasters, many homeowners will opt into ‘buyout' agreements with their local or state governments who purchase the damaged and flood-vulnerable homes. Pursuant to the Flood Disaster Protection Act of 1973, people who own property in a FEMA-designated flood zone are required to have flood insurance. This requirement is not currently waived once homeowners reach an agreement with the respective purchasing government, which then requires homeowners to continue to pay high cost flood insurance payments, even though the house is uninhabited.

"It makes no sense to pay insurance premiums on a flood policy that will no longer pay. If you are waiting for FEMA to buy out your homes as a result of your total flood loss, relief is on the way," Congressman Gonzalez said. "It is time for Congress to take steps that protect those who have been impacted by costly natural disasters, and put these folks on par with the way every other insurance policy works."

"Losing a home to flooding is terrible and economically distressing, but continuing to have to pay insurance premiums on a house that can't be lived in and already sold to the government is needless and burdensome," Congressman Faso said. "This legislation will reduce that unnecessary burden and help families recover and move on from the devastating damage that floods can cause."