Members of a Senate Banking Committee who overwhelminglysupported passage of legislation in 2012 that imposes actuarialrates on flood insurance premiums scheduled to go into effect nextmonth sought to distance themselves from their past votes at a150-minute hearing Wednesday.

At the hearing, senators from Oregon to Massachusetts talkedabout “implementation” and “affordability” concerns in seeking toanticipate angry voter feedback as the property owners openinsurance bills starting Oct. 1 that reflect increases mandated bythe Biggert-Waters Act of 2012.

That measure was touted as bringing fiscal stability to theNational Flood Insurance Program, but now is assailed for itsimpact, especially on low- and moderate-income home and businessowners along the Gulf Coast.

The increases, according to comments by members of thecommittee, could be as high as 3,000% in some cases.

“This is not some parochial Louisiana issue, this is a nationalissue,” said Sen. David Vitter (R-La.). “We might be feeling itfirst, but this movie is coming to a theater near you.”

Sen. Charles Schumer (D-N.Y.) lamented, “We don't have anaffordability study, but we're charging people unaffordable rates.What happens if people just drop out of the program?

“Second, we're building dunes, etc. in New York,” he said. “Butthese people have got flood rates that aren't based on the dunes.What about us? I know how hard it is to get the Federal EmergencyManagement Agency to redo a map because of dunes.

“We don't have an affordability study, but we're charging peopleunaffordable rates. What happens if people just drop out of theprogram?”

Nezt Page: Warren Worrying

Sen. Elizabeth Warren (D-Mass.) added that, “Over time, I agreeit makes sense to move to market rates for flood insurance, but whydoes it make sense for FEMA to implement the new rates at the sametime they're updating the flood maps?

“There is a major impact on first time home buyers,” she said.“Homeowners in Massachusetts are being asked to pay thousands ofdollars that they weren't asked to pay before,” Warren said. “Andseniors on fixed income don't know what to do.”

Sen. Jeff Merkley (D-Ore.) who led the hearing as chairman ofthe Economic Policy Subcommittee of the banking panel, cited theproblem of homeowners involved in having forced-placed insurancepurchased by their lenders when they are informed that they need tobuy coverage, “either because of new maps or lenders enforcing aflood insurance requirement.”

He brought up the case of someone forced to buy coverage or payfor a $1,200 policy. “We need to also look for abuses inforced-place insurance” related to flood coverage,” Merkleysaid.

He also voiced concerns about people being unable to sell homesbecause flood insurance rates would soar for the new owner. Henoted one instance of a potential 10-fold increase in the cost offlood insurance if it were sold.

Craig Fugate, NFIP administrator as an official of FEMA,responded to the onslaught from committee members by agreeing thatthe law mandates increases that raise affordability issues, butsaid his hands are tied.

“Let me put my cards on the table, I need your help. I have notfound, my attorneys have not found a way … I do not have the answeryou are looking for. I need your help. Without additionallegislative support … I cannot address it,” Fugate said.

He said the affordability study mandated by the law is unlikelyto be completed until 2015, but that the law does not tie theimplementation of the reforms to the completion of the study.

“I fully believe we should stop subsidizing risk as we goforward for new construction, for secondary homes and forbusinesses,” Fugate said.

At the same time, “I think we need to look at affordability forpeople who live there, look at how we can mitigate risk in thefuture and not grow our risk,' Fugate said. He also said we shouldnot put people out of their homes because flood insurance isprohibitively expensive.”

Sen. Mary Landrieu (D-La.) testified at the hearing that “wehave got to fix Biggert-Waters and I'm calling on Congress torepeal it, radically amend it, or delay it because we need help,not only in Louisiana but throughout the country.”

She said that her concerns “isn't just about what's happening onthe coast; but about the tragedy that's unfolding right now inColorado, and what recently happened in New York, New Jersey andalong the East Coast with the devastation of Hurricane Sandy.

“This is an issue that affects our entire nation and it must beaddressed,” she said.