The appropriations bill and the FEMA bulletin relate to Sec. 207 of B-W, a provision not scheduled to go into effect for a while.

A lobbyist in Washington for the WYO companies confirmed that the Sec. 205 provisions are not affected by the appropriations bill. And the FEMA bulletin specifically says it does not affect the Sec. 205 provisions. It says the Sec. 205 provisions were effective as of October 2013.

A FEMA media spokesman confirmed that the Sec. 205 provisions implemented starting last October "were not rolled back" by the provision in the appropriations bill.

Sec. 205 phases out rate subsidies for second homes, businesses, severe-repetitive loss properties, or properties built before the effective date of the first Flood Insurance Rate Map (FIRM). The rates for these pre-FIRM properties would increase by 25 percent per year until premiums reach an actuarially sound level.

Sec. 205 also bars extension of subsidies to properties purchased after the law's enactment, not previously insured by the National Flood Insurance Program (NFIP) or with a lapsed flood-insurance policy.

Sec. 207 of the law directs FEMA to increase rates over a five year period on any community that receives revised or new flood maps. It would impact grandfathered rates, some dating back to 1969.

The bulletin sent out by FEMA to WYO companies Wednesday deals with suspension of rate hikes contained in Sec. 207, as per the appropriations bill recently passed by Congress.

FEMA has not yet sent to WYO written instructions as to how to change their software related to Sec. 207 provisions.  

Continuing legislative efforts

Earlier today, Sen. Mary Landrieu, D-La., renewed her request that the House consider S. 1926, The Homeowner Flood Insurance Affordability Act, which was passed by the Senate last week. Tuesday, and Wednesday Republicans in the House blocked requests that the bill be placed on the floor for a vote. It has 182 co-sponsors.

"We would remind [House Speaker John] Boehner and other members of Congress that in places like Louisiana, the people who will be affected are not just the owners of second homes, but those who drive the energy and seafood and navigation industries. Boehner should stand aside and let the members of Congress speak for their constituents," Landrieu said.

According to an analysis of the:

• The FEMA administrator has two years to complete an affordability study and send it to Congress.
• the FEMA administrator has 18 months after the affordability study goes to Congress to send a new affordability framework to Congress.
• Six months after the framework is due to Congress, the prohibition on premium increases is lifted.

The outside analysis estimates the bill's provisions would take 48 months to complete, which would coincide with the sunset of the reauthorization of the NFIP in Sept. 2017.