Legislation that would require some homeowners whose houses are valued at more than $600,000 to pay actuarially-based rates for government flood insurance is set for a vote on the House floor.
The legislation, (H.R. 3959), is aimed specifically at homes that predate the flood insurance rate map, or FIRM, and are purchased after the bill is signed into law for more than $600,000. Because they pre-date the federal flood maps, which took effect in 1974, such properties have come with lower rates for their flood coverage which critics have said amounts to a subsidy.
The legislation was introduced by House Financial Services committee chairman Barney Frank, D-Mass., and committee member Scott Garrett, R-N.J., Oct. 24 and was approved by the committee a week later.
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