Organizations flood Congress with concerns

Journal of Property Management, Sept-Oct, 2007

The Flood Insurance Reform and Modernization Act of 2007, H.R. 1682, was the subject of a hearing in June before the subcommittee on Housing and Community Opportunity of the House Committee on Financial Services. The bill would make a number of reforms to the National Flood Insurance Program. A representative for the National Association of REALTORS[R] (NAR) testified the organization was generally supportive of H.R. 1682, but had concerns with provisions of the bill. NAR is opposed to phasing out subsidies for non-primary residences and non-residential properties, noting that eliminating these subsidies would have the unintended consequence of affecting housing affordability, especially for low- and moderate-income renters. In addition, NAR is concerned about a provision requiring notifying tenants of contents insurance availability.

In response to the proposed requirement of tenant notification of insurance availability, IREM has adopted a position encouraging property owners and managers to provide information, at their discretion, to multifamily occupants regarding occupants' responsibility to obtain insurance for the contents of their living unit. Further, for units at special risk of certain perils like flood, occupants should be notified of their responsibility to purchase insurance against these perils. To read the complete IREM Statement of Policy, visit the public policy section of the IREM Web site.

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