Senate legislation that would effectively delay for perhaps fouryears all flood insurance rate increases mandated by a 2012 lawreauthorizing the National Flood Insurance Program, except forsecond homes and businesses, was unveiled late Friday night.

It has the support of 18 senators.

Immediately afterwards, Rep. Maxine Waters, D-Calif., a namedsponsor of the 2012 law, announced that she would introducecompanion legislation in the House. Her likely co-sponsor is Rep.Michael Grimm, R-N.Y.

Specifically, the proposed legislation would apply to primaryhomes, non-repetitive loss residences that are currentlygrandfathered; all properties sold after July 6, 2012; and allproperties that purchased a new policy after July 6,2012.

FEMA officials as well as government and real estate officialsin Florida currently estimate that the despite the uproar over therate hikes imposed by the Biggert-Waters Act, only 20% of floodpolicies nationwide will see rates go up.

That's because it mostly affects homes built before communitiesentered the flood program and drew up floodplain maps in the early1970s. They have received artificially low rates for decades,officials have said. However, congressional officials from Hawaiito Vermont are feeling the heat from the rate hikes.

Prompt enactment of the legislation is no slam dunk. Some billsreflecting the new rates started to go out at the beginning of themonth.

And, unless sponsors of the bills seeking the delay can come upwith funds offsetting the federal budget implications of thelegislation, they would have to have a strong majority in order toget a waiver of those budgetary rules. The amount of the requiredfunds will have to be set by the Congressional Budget Office.

Moreover, as a result of Sandy and Katrina, the NFIP owes theTreasury approximately $24 billion.

At the same time, key members of the House Financial ServicesCommittee, as well as other fiscal hawks in both the House andSenate, could hold up passage.

And the insurance industry is likely to object.

For example, Jimi Grande, senior vice president, federal andpolitical affairs, for the National Association of Mutual InsuranceCompanies, said delaying the reforms of the law, “means returningthe NFIP to the days of needing taxpayer bailouts to meet itsobligations.”

Grande noted that 406 House members voted for Biggert-Waters“and for the fair and responsible steps it takes towards havingindividuals pay flood rates that match the actual risk faced bythose properties.”

He said that voting to roll back these reforms “is bad policythat will serve to further shift the cost burden onto taxpayers aswell as mask the true cost and risk faced by these properties.

“In those cases where homeowners truly face a hardship from thenew rates, it makes far more sense to provide a means testedtransparent subsidy to make coverage more affordable while stillstrengthening the program financially,” Grande said.

However, pressure is building for some relief. A federal lawsuitseeking an injunction against the rate hikes has been filed in Mississippi by the state's insurance commissioner.Louisiana is filing a friend of the court in the case, and Florida,and, likely Alabama, are drafting similar briefs.

A hearing on the issues involved in the lawsuit is likely beforeThanksgiving, Mississippi Insurance Commissioner Mike Chaneysaid.

The bill that has been drafted would delay most of the ratehikes until FEMA completes the affordability study mandated by thelaw, proposes alternatives to the rate hikes, and gives Congressadequate time to review their findings.

The Senate bill would also give FEMA more time to complete thestudy, provide reimbursement to qualifying homeowners forsuccessful map appeals, give communities fair credit for locallyfunded flood protection systems, and create an ombudsman withinFEMA to answer policyholder questions.

Sen. Mary Landrieu (D-La.) is spearheading the effort toforestall most of the rate increases. She announced the coalition'splans in a statement sent Friday night said those “adverselyaffected” by the rate hikes include senior citizens on fixedincomes who have lived in the same homes for decades, homeownerswho purchased or built their homes before Flood Insurance Rate Maps(FIRMs) existed, and others “who played by the rules, elevatedtheir homes when maps were released decades ago, only to find thatthey need to elevate yet again when FEMA redraws their maps.”

Landrieu added, “For some Americans, these premium rate hikeswill force them out of their homes and could even erode entireneighborhoods or communities.”