H.R. 3800: Keeping Homeownership Costs Down Act

This bill, known as the Keeping Homeownership Costs Down Act, proposes changes to the National Flood Insurance Act of 1968. Here is a detailed summary of its main provisions:

Purpose

The primary goal of the bill is to modify how letters of map revision are issued concerning flood zones, particularly when there is a placement of fill in these areas. Letters of map revision are critical documents that can change the flood zone designation of certain properties, which can affect insurance rates and property development.

Key Provisions

Prohibition on Deferrals

The bill establishes that the Administrator of the National Flood Insurance Program (NFIP) cannot postpone the issuance of:

• Letters of map revision based on the placement of fill: These letters confirm that the area in question is no longer considered at high risk for flooding due to the addition of fill, which raises the land level.
• Conditional letters of map revision based on the placement of fill: These are preliminary letters indicating that the area may be eligible for a revision pending further review.

Clarification of Scope

The bill clarifies that the prohibition on deferrals does not interfere with the ongoing review processes related to the determination or issuance of these letters. This means that while the issuance of the letters cannot be delayed, the standards and evaluation of the letters will still be upheld.

Repeal Conditions

This amendment will automatically be repealed when the Administrator of the Federal Emergency Management Agency (FEMA) fully implements the requirements from a biological opinion related to the issuance of letters of map revision, as outlined in the Endangered Species Act of 1973. This means the bill's provisions are temporary and linked to specific actions taken concerning environmental regulations.

Implications

The proposed changes could potentially expedite the process of homeowners or developers seeking to alter the flood zone designations of their properties after fill has been applied. This could lead to lower insurance premiums for some, as properties may be designated as lower risk for flooding.

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