Legislation in the U.S. Senate may delay higher flood insurance premiums for coastal communities by up to four years.
Senate Bill 1926 would delay Biggert-Waters, a 2012 law to reform the National Flood Insurance Program, for much longer than the eight-month delay passed last week in a $1.1 trillion government funding bill.
On Monday, Jan. 27, the Senate voted and approved to proceed to the measure by a 86-13 count. The next step will be full consideration of the bill. Nelson said it could theoretically pass within a week-and-a-half.
If passed, the bill would delay rate hikes by four years while an affordability study could be completed. Biggert-Waters originally asked for an affordability study before implementation, but it was never done.
Biggert-Waters sought to reform the NFIP - currently in $25 million worth of debt after Hurricanes Katrina and Sandy - by forcing homeowners to pay the "full risk" amount, but many of those homeowners won't be able to handle the skyrocketing premiums.
One provision that is especially troubling for Southwest Florida homeowners is the elimination of "grandfathering," where homeowners could have kept their old rates if they had built their property to code.
The local housing market will also take a hit because prospective buyers will be forced to pay the "full risk" amount upfront.
Sen. Bill Nelson, D-Florida, said the recent funding bill only helps a small percentage of homeowners and more needs to be done. He is confident that S.B. 1926 will pass.
"I'm an optimist. I believe it will pass. It's the right thing to do," said Nelson.
Nelson said both parties originally passed Biggert-Waters to ensure the NFIP was financially sound, yet he said it isn't fair for homeowners to be immediately responsible for the "full risk" amount.
"Even if it is actuarially sound, we don't want people to swallow it whole all at one time," he said.
There are a number of flood insurance bills circulating both chambers at the moment. The House of Representatives would have to pass their own bill to be reconciled with S.B. 1926 before any changes could be made.
House Speaker John Boehner, R-Ohio, told the Associated Press that he supported more modest changes than the ones being considered in the Senate.
In an earlier interview with Karen Swanbeck, managing partner of VIP Realty Group on Fort Myers Beach and 2014 president of the Realtor Association of Greater Fort Myers and the Beach, she said there are a number of bills circulating the House and Senate that could delay the implementation of Biggert-Waters.
"If they would've followed the legislation as it was written and done the affordability study, I don't think we would be where we are today," said Swanbeck.