The National Flood Insurance Program (NFIP) appears to have been saved, as a bill to extend the program for two months while Congress works on a long-term solution was sent to the president.
The program was a day from shutting down when the House took up a Senate amendment to a bill introduced in the House by Rep. Judy Biggert, R-Ill., on May 30. The bill, H.R. 5740, the National Flood Insurance Program Extension Act, will extend the program until July 31.
While many of the additional reforms were removed from the final version of the bill, the Senate amendment does provide for an exclusion of vacation homes and second homes from receiving subsidized premium rates.
Under HR 5740, any residential properties which are not the primary residence of an individual will be increased by 25 percent each year, until the average risk premium rate for such properties is equal to the average of the risk premium rates for primary residences. The first increase in chargeable risk will take effect on July 1 and rate will be increased by 25 percent each year thereafter.
The 60-day extension was passed by the Senate as part of an agreement reach by Senate leadership, which agreed to bring a long-term extension bill before the Senate during the next work period.