(Bloomberg) -- Democrats and Republicans, who have agreedon little this year, have found common ground on plans to giveprivate insurers greater access to the $5 billion flood insuranceprogram and to offer more buyouts for homeowners in areas likely tobe repeatedly submerged.

"Flood insurance seems to be one of those fewareas where Democrats and Republicans see the same problems and, ina lot of instances, see the same solutions," Rob Moore, a seniorpolicy analyst with the National Resources Defense Council, said inan interview.

Related: Flood gates: Will best intentions lead to a healthyprivate insurance market?

At issue is the National Flood Insurance Program, which is $25 billionin debt. Congress has until the end of September to reauthorize thefederal program. If it doesn’t act the real estate market alongcoasts and rivers will come to a halt, because homeowners need thatinsurance to qualify for federally-backed mortgages. In the wake ofHurricane Sandy the program paid out $8.4 billion to help cover thecosts of rebuilding.

Draft legislation released Thursday

On Thursday, Republican Congressman Sean Duffy of Wisconsin,chairman of the subcommittee that oversees the program, released draft legislation to overhaul it.Those changes overlap heavily with change House Democrats areseeking, according to a document from the Democrats on theHouse Financial Services Subcommittee on Housing & Insuranceobtained by Bloomberg.

The bipartisan agreement among the House lawmakers covers arange of topics, including expanding the role of private floodinsurers, getting the federal program to buy more reinsurance onthe private market, and making it easier for homeowners that keepgetting flooded to move somewhere else.

'Odds are good' of reaching a deal

"This shows an incredible amount of work," Roy Wright, the deputyassociate administrator at FEMA who oversees the National FloodInsurance Program, said in an interview. He said the odds are goodof Democrats and Republicans eventually reaching a deal.

The process has a long way to go before these changes wouldbecome law. Even if the House agrees on these reforms, the Senateand President Donald Trump must agree as well. And, as happened inthe last flood insurance overhaul, changes may end up beingrescinded after they become law if they cause premiums toskyrocket.

And some areas of disagreement remain among the Houselawmakers.

Eject homeowners who keep getting flooded from NFIP?

In the draft legislation released Thursday, Republicans proposeejecting from the program homeowners who keep getting flooded butdon’t want to sell their houses. Democrats wouldn’t eject them. AndRepublicans would impose fewer conditions on private insurers whowant to sell flood insurance.

Related: The current state of floodinsurance

Still the main areas of agreement between the parties is large.The "draft incorporates ideas from both Republicans and Democrats,"Mark Bednar, Duffy’s spokesman, said in an email.

Under these plans, insurers and reinsurers would see an increasein their potential market. The federal flood insurance programtakes in about $3.5 billion in revenue each year, and covers about$1 trillion in risk. While private insurers can partner with theprogram, signing people up in return for a share of their premiums,few private insurers sell their own policies. The program recentlybought reinsurance for the first time.

Private insurers could benefit

Expanding the space for private insurers could benefit Marsh &McLennan Cos. and Aon Plc, the largest insurance brokers by revenuein the U.S., according to data compiled by Bloomberg. Swiss Re AG,Munich Re and Transatlantic Reinsurance Co. have signed reinsuranceagreements with the Federal EmergencyManagement Agency, which runs the program.

The changes could also reshape coastal neighborhoods. Bothparties say they support more voluntary buyouts of homes thatrepeatedly flood. Under that approach, the federal government usesmoney that comes in through flood insurance policies to purchasehigh-risk homes, then demolishes them. Expanding those buyoutscould shrink neighborhoods along the Atlantic and Gulf Coasts, insuch places as New Jersey, Virginia, Florida and Louisiana.

Shield poorer households

Both parties also want the federal government to shield poorerhouseholds from rising flood-insurance premiums, by offeringvouchers or other subsidies based on people’s incomes. They wouldincrease the amount of money available to protect homes fromflooding, such as moving buildings onto stilts.

"A fair amount of this will be part of the final legislation,"Larry Larson, senior policy adviser for the Association of StateFloodplain Managers, said by email after the Republican draftwas released. Still, "it has a long way to go yet."

Related: NFIP challenges & reform options from theAmerican Academy of Actuaries

Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.