pres signing bill largeObama Signs Flood Insurance Bill

Bipartisan bill will delay rate hikes for property owners nationwide

On Monday, March 24, President Barack Obama signed a piece of legislation that REALTORS® across the country have worked tirelessly in support of. The Homeowner Flood Insurance Affordability Act will protect homeowners across the country from excessive rate hikes, which has obviously been a major concern for the real estate industry in recent months.

The new law repeals the Federal Emergency Management Agency’s (FEMA) authority to increase premium rates when a property is sold. It also refunds the excessive premium to those who bought a property before FEMA warned them of the rate increase.

The bill limits premium increases to 18 percent annually on newer properties and 25 percent for some older ones. The Senate approved the bill on March 13, and the House of Representatives on March 4.

Said NAR President Steve Brown after the bill was signed by the president: "As the leading advocate for home and property owners, NAR applauds this bill for the relief and protection it will bring to businesses and families nationwide who are experiencing financial hardship because of the extreme and sudden premium increases."

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