SOURCE: National Association of Realtors

National Association of Realtors

October 01, 2010 10:16 ET

NAR Still Advocating Flood Insurance Reforms and a Longer Term, as 1-Year Extension Becomes Law

WASHINGTON, DC--(Marketwire - October 1, 2010) - The National Association of Realtors® said today it was pleased that Congress passed and the president signed into law a one-year extension of the National Flood Insurance Program before it expires tomorrow, but still believes a longer extension and program reforms are needed to provide fairness and continuity to the NFIP.

The NFIP authority was set to expire on September 30 for the ninth time in two years; Congress has approved eight short-term extensions during this time. The new law, signed last night by President Obama, extends the program until September 30, 2011.

"While this extension will assist purchasers to get their transactions to closing for the next 12 months, these stop-gap measures have created great uncertainty in many real estate markets. That's especially true when deadlines near because lenders have refused to lend based on promises and indications of extensions, which paralyze the market for indefinite periods. A long-term extension of five years will bring stability to the markets," said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz.

Golder thanked Sens. Mary Landrieu (D-La.), Bill Nelson (D-Fla.) and David Vitter (R-La.) for introducing the extension bill, as well as the leadership of both the House and Senate for expediting its passage.

"Now that Congress has given us some breathing room, we need to move ahead with long-term reauthorization reforms," Golder said. "As the leading advocate for homeownership and housing issues, NAR also strongly supports strengthening the NFIP's solvency through outreach and education programs that would help raise participation beyond the current 50 percent of homeowners in federally designated flood areas. The increase in participants would boost funding for the NFIP, help property owners recover from flood losses and decrease future federal assistance when uninsured properties flood and suffer loss."

Adding types of coverage for living expenses, business interruption and replacement cost of contents and updating coverage limits -- which haven't been adjusted since 1994 -- would also help increase participation.

NAR also favors extending and fully funding the pilot program to mitigate properties that have repeatedly suffered insured flood losses.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. 

REALTOR® is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS® and subscribe to its strict Code of Ethics. Not all real estate agents are REALTORS®. All REALTORS® are members of NAR.

Contact Information

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