Letter to Sen. Tim Johnson and Sen. Richard Shelby on Hagan amendment

Dear Chairman Johnson and Ranking Member Shelby:

Thank you for your continued efforts to pass S. 1940, the Flood Insurance Reform and Modernization Act of 2012. As this important legislation moves toward consideration on the Senate floor we write in support of an amendment sponsored by Senator Kay Hagan that would improve the Severe Repetitive Loss Program and Increased Cost of Compliance Coverage saving the federal taxpayer money while protecting communities and restoring floodplains.

Flood mitigation techniques ‐- such as buyouts of flood prone properties, creation of green space and restoration of floodplains and wetlands -‐ can remove the threat of flooding to people and property. These techniques are a better use of taxpayer dollars than perpetually rebuilding homes over and over in flood hazard areas. For every $1 spent on mitigation, $5 is saved because less investment is needed to clean up and rebuild after a disaster.

Senator Hagan’s amendment would improve two of FEMA’s mitigation programs to ensure that communities have the tools they need to implement mitigation measures that will increase community resilience to the next flood.

FEMA’s Severe Repetitive Loss (SRL) Program addresses properties that repeatedly flood and are rebuilt over and over at the expense of federal taxpayers through mitigation activities like buyouts, relocations, or elevation. Unfortunately, communities are often unable to undertake these activities or are forced into less effective solutions because of the individual benefit cost analysis requirement. As a result, they continue to flood and receive payouts from taxpayers. Senator Hagan’s proposed amendment would allow any SRL structure to be eligible for mitigation funding for buyouts and relocations while still ensuring the project does not increase the federal cost share and provides a savings to the National Flood Insurance Fund.

The proposed amendment would also improve FEMA’s Increased Cost of Compliance (ICC) Coverage Program to facilitate relocation and buyout mitigation projects. Moving out of a flood hazard area is the surest way to prevent flood damage in the future and to restore the natural flood protection function provided by lands and wetlands. ICC is separately funded through a $75 surcharge on all National Flood Insurance Policies. Currently the ICC Coverage Program favors elevation projects that keep property owners in flood hazard areas by providing property owners with a financial incentive to rebuild rather than pursue relocation and buyout options. This amendment would provide an additional option for owners and communities desiring a buyout or relocation. Expenses associated with these activities would be eligible for reimbursement within the existing $30,000 ICC cap.

Though our organizations represent diverse constituencies, we have found common ground on issues related to flood insurance reform and we support Senator Hagan’s amendment, which will improve communities’ ability to implement cost -‐efficient mitigation measures to reduce their risk from flooding.

We encourage you to include this amendment in a manager’s amendment to S. 1940. Thank you again for your leadership in reforming the National Flood Insurance Program.

Sincerely,

American Rivers

Association of State Floodplain Managers

National Association of Mutual Insurance Companies

National Wildlife Federation

R Street

Reinsurance Association of America