1995-10-26_AgendaPacket - Laserfiche WebLink

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Spring -Summer 1 5 TALK age 1 r Congress put the Federal Emergency Management Agency on a very tight timetable for developing regulations and programs for most provisions of the National Flood Insurance Program Reform Act signed into law by President Clinton last September. Ttams of Federal Insurance Administration employees and staff of the Mitigation Directorate are good progress, as reported in a public briefing held February 24, 1995. Two changes to the flood insurance policy were effective on March 1st: the waiting period is now 80 days. and the new. higher coverage limits are in place. Also, with the exception of a current instance involving two consecutive floods in California, people who are required to get and. keep flood insurance but fail. to do so will be denied future disaster assistance. FEMA is expected to publish interim final regulations for the new mitigation assistance grant program in the near future. To distinguish it from the Hazard. Mitigation Grant Program (post-disaster mitigation funding available under Section 404 of the Disaster Relief Act), the new grant program is referred to as "FMA." While FEMA expects to make the first grants available in the fourth quarter of this fiscal year. the $5 million requested may not be appropriated by Congress. Elaine McReynolds, Federal Insurance Administrator, reported substantial progress on the lender compliance provisions of the Reform Act. which are expected to support a "dramatic" increase in the number of policies. She also touched on FIA's multi-year, X25-million "Cover America" marketing effort, which will be kicked off later this year. 'I'!><e Reform Act calls for cone-year study of the economic effects of charging actuarial rates for pre-FIRM structures. In advance of the study and as part of its appropriations request, FEMA is requesting that Congress lift. the 1096 ,cap in increases in premiums. Elimination of the cap wffl allow FIA to increase the rates for pre-FIRM policies by 2596. resulting in an average annual increase of X95. Mitigation insurance, a significant component of the Reform Act, will be delayed until October 1996. in part due to concerns over sharp increases in the cost of flood insurance for pre-FIRM properties. Implementation will require a surcharge of up to ffi75 per policy. This increase, combined with reduction of the pre-FIRM subsidy, was deemed to be a detriment both to marketing and to increasing the policy base. FEMA advised that implementation of the NFIP Reform Act is not expected to require any changes to local ordinances adopted for participation in the NFIP. FEMA cts to publish a periodic bulletin to report on further NFIP Reform Act implementation. The work that pravldes the bass for ttds pubicatkm wos ed h part by funding under 6 cooperative agreement with the Federal Emergency Management- Agency. The ~bstance and Mdings of that work are dedcated to the public. The author ~d publisher ore tolsly resporulble for the accuracy of fhe statements and interpretations contained in the publication. Such inter- pretations do not necessaray reflect the views of the Federal Government. - This lnformaifon is available In an alternative format upon request. "o ivgssaa a a Deportment of Natural Resources Division of Waters Printed on Recycled Paper COnidnS Tb96 postCORSUmer waste