The Silicon Valley Association of Realtors praised Congress for finally passing one of the real estate industry's key legislative priorities, a five-year reauthorization of the National Flood Insurance Program, also known as the Biggers-Waters Flood Insurance Reform and Modernization Act of 2012.

The House passed the bill 373-52 and sent the measure to the Senate, which passed it 74-19. President Obama is expected to sign it into law.

According to the National Association of Realtors, the five-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 bill ensures the program will continue long-term for more than 5.6 million business and home owners who rely on it.

During the national group's midyear meetings in May, members of the Silicon Valley Association of Realtors joined thousands of their colleagues nationwide who met with their members of Congress in Washington, D.C., and urged action on several priority issues, including the National Flood Insurance Program.

"We are happy that Congress has passed a five-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 have caused buyers' loans to be delayed or denied," said Suzanne Yost, president of the local trade association.

"As Realtors,

it is our responsibility to protect the American dream of home ownership. 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 phasing out subsidies for many properties, allowing multifamily properties to purchase NFIP policies and imposing minimum deductibles for flood claims.

According to real estate agents, the National Flood Insurance Program has averted $16 billion in losses by strengthening millions of properties against floods. Without NFIP, there would be more uninsured and unmitigated properties, taxpayers would still be on the hook for disaster assistance to these properties, and there would be no premiums to pay down any remaining loan balance or collect interest.

Information in this column is presented by the Silicon Valley Association of Realtors at www.silvar.org. Send questions on any topic to rmeily@silvar.org.

Copyright 2012 San Jose Mercury News. All rights reserved.
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