ACR262

A Concurrent Resolution respectfully urging Congress and the President of the United States to oppose the reauthorization of the National Flood Insurance Program.

Whereas, The National Flood Insurance Program (NFIP) is a federal program designed to provide flood insurance to property owners and encourage communities to adopt and enforce floodplain management regulations; and

Whereas, The “21st Century Flood Reform Act” reauthorizes the NFIP for 5 years, without resolving the financial problems plaguing the program and includes provisions which will render many New Jersey residents unable to obtain flood insurance; and

Whereas, The NFIP is more than $20.5 billion in debt after borrowing $6.1 billion from the Treasury on November 9, 2017; and

Whereas, The “21st Century Flood Reform Act” attempts to solve the financial problems by easing the burden for private insurers to compete with the NFIP in the flood insurance market while simultaneously prohibiting the government from offering coverage to homeowners of certain properties which flood repeatedly; and

Whereas, However, private insurers are likely to exclusively offer to insure the properties which pose the least amount of risk, leaving many New Jersey residents vulnerable and unable to be covered by the NFIP under the new provisions due to repeated flooding; and

Whereas, New Jersey Residents continue to struggle to obtain adequate insurance payouts five years after Superstorm Sandy with many complaining that insurers did not pay enough to cover the cost of the damage; and

Whereas, Many New Jersey residents will be forced to live in uninsured homes which repeatedly flood because the “21st Century Flood Reform Act” does not improve the overly burdensome system which allows the government to provide relief to homeowners by purchasing the properties that repeatedly flood; and

Whereas, The New Jersey residents who are fortunate enough to obtain adequate flood insurance will likely suffer from significant premium increases; and

Whereas, Homeowners living in houses built after flood areas were mapped will be subject to an annual premium increase of up to $10,000 per year plus an increase in surcharges; and

Whereas, Homeowners living in houses built before flood areas were mapped will be subject to a minimum annual premium increase of at least 6.5 percent; the minimum annual increase was previously set at 5 percent; and

Whereas, The reauthorization of the NFIP through the provisions of the “21st Century Flood Reform Act” will impose burdensome new requirements on New Jersey residents; now, therefore,

Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

1. The Legislature of the State of New Jersey respectfully urges the Congress and the President of the United States to oppose the reauthorization of the National Flood Insurance Program through the “21st Century Flood Reform Act.”

2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly or the Secretary of the Senate to the President of the United States, the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and each member of Congress from this State.

STATEMENT

This concurrent resolution respectfully urges Congress and the President of the United States to oppose the reauthorization of the National Flood Insurance Program (NFIP). The “21st Century Flood Reform Act,” which seeks to reauthorize the NFIP for five years, does not resolve the increasingly burdensome debt of the NFIP or reform the buyout system for properties that experience repetitive loss. The “21st Century Flood Reform Act” will result in an increase in annual premiums as well as render many homeowners who live in high risk properties unable to obtain flood insurance.

By easing the burden on private insurance companies to compete in the flood insurance market, this legislation will result in private insurance companies offering to insure the properties which pose the least amount of risk. High risk properties which repeatedly flood may no longer be eligible to receive flood insurance through the new provisions of the NFIP. As a result, the homeowners who are in desperate need of flood insurance may be left uninsured. Without a sufficient buyout program in place, the “21st Century Flood reform Act” will likely leave those most in need of assistance without any recourse to handle repeated damage caused by flooding.