The National Association of Home Builders last month expressed support for a five-year extension of the National Flood Insurance Program to ensure that the federally-backed flood insurance program remains efficient and effective in protecting flood-prone properties and creates more stability in the housing market.
Testifying before the Senate Banking Committee, Barry Rutenberg, the first vice chairman of NAHB and a home builder from Gainesville, told lawmakers that because the NFIP has had to undergo a series of short-term extensions over recent years, it has created a high level of uncertainty in the program and caused severe problems for the nation’s already troubled housing markets.
“Unfortunately during this latest interruption, many home buyers faced delayed or cancelled closings due to the inability to obtain NFIP insurance for a mortgage,” said Rutenberg. “In other instances, builders themselves were forced to halt or postpone construction on a new home due to the lack of flood insurance approval, adding unneeded delay and job loss.”
The current reauthorization of the program expires on Sept. 30.