Statements by congressmen from Louisiana and Mississippi thatincreases in flood insurance premiums now being implemented will bedelayed through a provision in a recent appropriations bill areinaccurate, according to industry lobbyists and officials at theFederal Emergency Management Agency.

Rep. Steven Palazzo (R-Miss.) and Rep. Bill Cassidy (R-La.) saida bulletin written by FEMA and sent out Thursday to Write-Your-Owncompanies indicated that the rate hikes being imposed by FEMA wouldbe delayed, perhaps until June 2016.

Followour continuing coverage of the NFIP rate hikes.

However, the rate hikes discussed in the statements do notrelate to a provision of the 2012 Biggert-Waters Act, Sec. 205,mandating a phase-in of actuarial rates on most properties insuredby FEMA – and are the rate hikes that are regarded as the mostcontroversial.

The appropriations bill and the FEMA bulletin relate to Sec. 207of B-W, a provision not scheduled to go into effect for awhile.

A lobbyist in Washington for the WYO companies confirmed thatthe Sec. 205 provisions are not affected by the appropriationsbill. And, the FEMA bulletin specifically says it does not affectthe Sec. 205 provisions, which call for the most controversial andfar-reaching rate hikes mandated by the 2012 law. It says the Sec.205 provisions were effective as of October 2013.

A FEMA spokesman confirmed Friday that the Sec. 205 provisionsimplemented starting last October “were not rolled back” by theprovision in the appropriations bill.

Earlier Friday, Sen. Mary Landrieu (D-La.), renewed her requestthat the House consider S. 1926, The Homeowner Flood InsuranceAffordability Act, which was passed by the Senate last week.

Republicans in the House have since blocked requests that thebill be placed on that floor for a vote. It has 182co-sponsors.

“We would remind [House Speaker John] Boehner and other membersof Congress that in places like Louisiana, the people who will beaffected are not just the owners of second homes, but those whodrive the energy and seafood and navigation industries. Boehnershould stand aside and let the members of Congress speak for theirconstituents,” Landrieu said.

An analysis of the law said it has four main provisions:

n The FEMA administrator has two years to complete anaffordability study and send it to Congress.

n The FEMA administrator has 18 months after theaffordability study goes to Congress to send a new affordabilityframework to Congress.

n Six months after the framework is due to Congress, theprohibition on premium increases is lifted.

The outside analysis estimates that that would take 48 months tocomplete, which would coincide with the sunset of thereauthorization of the NFIP, mandated by the 2012 law, of September2017.

According to Landrieu, Cassidy supports the Senate bill. Aspokesman for Cassidy did not respond to requests for comment.

The key provision not impacted by the appropriations billphases-out rate subsidies over four years for second homes,businesses, severe repetitive loss, or substantiallyimproved/damaged) built before the effective date of the firstFlood Insurance Rate Map for a community. The rate for thesepre-FIRM properties would increase by 25% per year until premiumsreach the full (actuarial) cost, according to the law enacted in2012.

Sec. 205 also bars extension of subsidies to propertiespurchased after the law's enactment, not previously insured by theNational Flood Insurance Program or with a lapsed flood insurancepolicy.

Sec. 205 also increases from 10% to 20% percent the annualpermissible rate hikes except for those subject to the 25% subsidyphase-out.

The statements include one by Cassidy that rate hikes “for up to400,000 Louisianans” could be suspended” as long as until June2016.

Next Page: AppropriationsLegislation

The rate suspensions stem from a provision in the appropriationslegislation for the current year sponsored by Cassidy that wasrecently enacted by Congress dealing with Sec. 207 of the 2012law.

That provision was first contained in a Homeland Securityappropriations amended at the request of Cassidy last June on theHouse floor and passed by the House.

Sec. 207 of the law directs FEMA to increase rates over afive-year period on any community that receives a revised or newflood maps.

It would impact grandfathered rates, some dating back to 1969,when basing rates based on maps detailing the likelihood of a floodimpacting a community were first imposed, on second homes,businesses and areas deemed most likely to be impacted by astorm.

The bulletin sent out by FEMA to WYO companies on Wednesdaydeals with suspension of rate hikes dealt with Sec. 207, as per theappropriations bill recently passed by Congress. FEMA has not yetsent to WYO written instructions as to how to change their softwarerelated to Sec. 207 provisions.

The provision in the appropriations bill was first included inlegislation funding the Homeland Security Department for 2014passed by the House last June. It would bar use of federal funds toimplement a section of the 2012 law that mandates phased-in rateincreases for grandfathered properties.

FEMA has told members of Congress that it would “comply with thespirit of the appropriations bill” and delay implementation of Sec.207 of the law even though administration of NFIP rate hikes arepaid for through premiums and not through FEMA.