WASHINGTON — The House Financial Services Committee has passedtwo important pieces of legislation for housing and insurance.

It passed the National Affordable Housing Trust Fund Act of 2007(H.R. 2895) last week by a vote of 45 to 23.

“The National Affordable Housing Trust Fund is a critical stepforward toward a historic moment in affordable housing. As theaffordable housing crisis in this country continues to worsen afteryears of neglect, we must move quickly to get the federalgovernment back in the affordable housing production business,”Housing and Community Opportunity Subcommittee Chairwoman MaxineWaters (D-Calif.) said.

“The growing shortage of affordable housing is one of the mostserious social and economic problems facing our country. Given ourseverely constrained fiscal realities, we are today doing the bestwe can to address this–creating a low income housing trust fundthat will be paid for in ways that do not draw from federal taxrevenues,” added Committee Chairman Barney Frank (D-Mass.).

According to a committee statement, the fund would represent thelargest expansion in federal housing programs in decades, with agoal of producing, rehabilitating and preserving 1.5 millionhousing units over the next 10 years. As amended, it will initiallyallocate between $800 million and $1 billion annually directly tostates and local communities, without increasing governmentspending or the federal deficit; funding would come from otherproposed legislation, including the GSE Affordable Housing Fund(H.R. 1427), FHA savings that result from the enactment of theExpanding American Homeownership Act (HR 1852), and any othersources of funds subsequently identified.

The committee also recently approved H.R. 3121, The FloodInsurance Reform and Modernization Act of 2007, which providesupdated coverage following Hurricane Katrina.

According to a committee statement, the bill will ensure theprogram's continued viability by encouraging broader participation,increasing accountability, eliminating unnecessary federalsubsidies and updating the flood insurance program. The bill alsoincludes wind damage provisions, sponsored by Congressman GeneTaylor (D-Miss.), that one credit union lobbyist characterized ascontroversial.

“We have taken the necessary steps to reform a needed programfor homeowners, and we have responsibly expanded the program tocover wind related damages from major weather events,” HouseFinancial Services Committee Chairman Barney Frank (D-Mass.)commented.

H.R. 3121 requires greater accountability and financialresponsibility at the National Flood Insurance Program; makes theupdating and modernization of flood maps an ongoing process, andincreases funding for mapping; clarifies flood insurancedisclosures for consumers; provides for an appeals process for whenconsumers have to have insurance when new flood zone maps areissued; allows for premiums increases of up to 15% compared to thecurrent 10% a year; and increases the NFIP's borrowing authority,among other things. The bill reauthorizes the program for fiveyears.