Coalition for Sustainable Flood Insurance April 16, 2014 Coastal Protection and Restoration Authority 1

CSFI Key Principles NFIP should: 1. Be long-term sustainable 2. Be actuarially responsible 3. Protect home and business owners who have “played by the rules” Built to code Maintained insurance Not had repetitive losses We believe in three key principles about NFIP:

3 Example: Primary Homeowner Belle Chasse, LA Built in 1998, fully to code Built 2’ above FEMA required elevation at the time House never flooded Problem: Premium will go from $633 to $17,723 per year. May NFIP - Problem

If this problem was not addressed, the potential impact could have proved devastating: 4 Properties become uninsurable Properties become unsalable Property values go to zero Owners lose everything Banks lose mortgage portfolio Real estate market freezes Companies lose workers Local governments lose tax base Economies are destroyed NFIP, itself, goes into “death spiral” as people leave program

Building a National Coalition CSFI Formation 5 GNO, Inc. Parish Presidents American Bankers Assoc. Independent Comm. Bankers Assoc. Mortgage Bankers Assoc. Nat’l Assoc. of Counties Nat’l Assoc. of Home Builders Nat’l Assoc. of Realtors 34 states 200+ organizations from across USA May – Dec Response: Coalition for Sustainable Flood Insurance

CSFI GOALS Educating Congress and Citizens about perilous impacts of Biggert-Waters Advocating for affordable, sustainable flood insurance Education and Advocacy 6

CSFI Results 7 Passage of H.R Homeowner Flood Insurance Affordability Act ✔ March 77% ✔ 72 votes 22 votes 306 votes 91 votes Result: Bipartisan, Bicameral Action for LA and USA

The Homeowner Flood Insurance Affordability Act Reinstates Grandfathering Removes the Property Sales Trigger Requires for FEMA to strive for 1% of policy cost limit (and report) Caps Annual Premium Increases at 15% Reimburses Policy Holders for Successful Map Appeals Refunds Policy Holders w/ Exorbitant Rates Funds and Mandates Completion of Affordability Study within 2 Years Allows for $25 Annual Surcharge Includes Minimum 5% Increase on Pre-FIRM properties What the Bill Does:

CSFI Next Steps Formalization into 501(c)(6) w/ National Board and Advisory Council Continued Dialogue with FEMA and Congress on Implementation Proposal of Long-Term Options for Affordable Flood Insurance Ensuring Successful Implementation and Reauthorization 9

Contact Information Caitlin Berni O: C: Michael Hecht O: C: On the web csfi.info gnoinc.org twitter.com/gnoinc facebook.com/gnoinc Our address 365 Canal Street Suite 2300 New Orleans, LA