1. Andrea Clark, Downey Brand LLP November 22, 2014

2. 1. Pre-FIRM second homes in SFHAs: 25% annual increase up to true risk rate 2. Businesses and SRL pre-FIRM properties in SFHAs: 25% annual increase up to true risk rate 3. All pre-FIRM residences in SFHA immediately true risk rate if (a) policy lapses, (b) severe, repeated flood losses, (c) sale of property, or (d) structure substantially improved

3. - Grandfathering – starting in 2014, when new maps take effect, rates will increase. - Preferred Risk Policies (PRP)

4. FEMA A zones In Central Valley

6. Sutter CountyButte CountyYuba County Unsubsidized policies 6,7401,8633,453 Subsidized policies 219 (3%)612 (25%)167 (5%) Keep rate until sale, lapse or repeated flooding 8239766 Second houses, businesses and SRL (25%/year increase) 12518855

7. Colusa CountyYolo CountySacramento County Unsubsidized policies 7835,30956,945 Subsidized policies 55 (7%)466 (8%)1,680 (3%) Keep rate until sale, lapse or repeated flooding 42287872 Second houses, businesses and SRL (25%/year increase) 13164521

8. Solano CountySan Joaquin County Contra Costa County Unsubsidized policies 2,3877,0523,122 Subsidized policies 822 (26%)1,030 (13%)2,102 (40%) Keep rate until sale, lapse or repeated flooding 5184481,485 Second houses, businesses and SRL (25%/year increase) 229522437

9. Merced County Fresno CountyStanislaus County Unsubsidized policies 5,8211,931961 Subsidized policies 347 (6%)372 (16%)207 (18%) Keep rate until sale, lapse or repeated flooding 184241137 Second houses, businesses and SRL (25%/year increase) 15511465

10.  House: Homeowner Flood Insurance Affordability Act (HR 3370)  Senate: companion bill (S 1610)  Courts: Mississippi versus FEMA

11.  Reflection of true risk rate: NAMIC  Distribution of impacts  Real estate market impacts  Timing of full-risk rates  Delta impacts