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Athens, Ohio, Mayor Steve Patterson, National League of Cities’ (NLC) Second Vice President testified in favor of long term National Flood Insurance Program (NFIP) reauthorization before the US Senate Committee on Banking, Housing, and Urban Affairs on Thursday.  

Since fiscal year 2017, the NFIP has undergone a series of 28 short-term extensions. This prolonged reliance on short-term measures underscores the pressing need for a more enduring solution. Here are key facts from Patterson’s prepared testimony highlighting the importance of NFIP for local governments and residents:  

Financial Protection for Homeowners  

• NFIP stands as a cornerstone in providing homeowners residing in flood-prone areas with comprehensive and essential insurance coverage. This coverage extends beyond the mere compensation for property damages; it encompasses the broader financial landscape affected by flooding events.  

• One of the distinctive features of NFIP is its commitment to ensuring that affected homeowners can access funds promptly. This rapid disbursement is instrumental in expediting the recovery process and mitigating the economic strain experienced by individuals and families.  

• Prompt access to funds enables homeowners to initiate immediate repairs and restoration efforts, preventing further damage and minimizing the duration of displacement. This, in turn, contributes to the overall resilience of the community by facilitating a swifter return to normalcy for residents.  

• It is important that the NFIP recognizes the diverse needs of homeowners and offers flexible financial assistance tailored to individual circumstances. This can include temporary housing assistance for those displaced, funds for necessary living expenses, and additional financial support to address specific challenges faced by homeowners during the recovery period.  

• The program’s flexibility should extend to accommodating various property types, from single-family homes to condominiums, ensuring that a wide spectrum of homeowners can benefit from the financial protection and support provided by NFIP.  

Economic Stability for Communities  

• Flood-related damage can have a cascading effect on the local economy. By ensuring that homeowners can promptly access funds, NFIP contributes to the maintenance of economic stability at the community level. Swift recovery translates to a quicker resumption of economic activities, preventing a prolonged downturn that could result from extensive property damage.  

• The economic stability fostered by NFIP not only aids individual homeowners but also has a ripple effect on local businesses, schools, and public services. By preventing a protracted economic downturn, NFIP supports the overall well-being and vitality of the community.  

• NFIP’s commitment to providing financial protection goes beyond the immediate compensation for property damage. It encompasses a comprehensive approach that considers the broader financial needs of homeowners, ensuring swift and flexible assistance that fosters both individual and community-wide economic stability in the wake of flooding events.  

Empowering Comprehensive Floodplain Management  

• Having a sustainable NFIP can serve as a catalyst for local governments to establish and implement comprehensive, long-term floodplain management strategies. This includes developing detailed floodplain maps, risk assessments, and mitigation plans tailored to the region's unique characteristics.  

• Through NFIP, local authorities gain access to resources and technical expertise, enabling them to create and update floodplain maps regularly. This proactive approach aids in identifying high-risk areas and implementing targeted measures to reduce vulnerabilities.  

• NFIP helps municipalities to not merely be reactive to flood events, but to actively engage in proactive measures to enhance community resilience such as:  

• Zoning Regulations: Local governments are working to establish and enforce robust zoning regulations, ensuring that new developments and constructions adhere to flood-resistant standards. This proactive zoning approach minimizes exposure to flood risks and prevents the creation of vulnerable structures.  

• Land Use Planning: Local governments are working to integrate flood risk considerations into our land use planning processes. This involves designating appropriate land uses in flood-prone areas, avoiding high-risk zones for critical 4 infrastructure, and promoting sustainable development practices that mitigate the impact of flooding.  

• Infrastructure Improvements: Municipalities are also investing in critical infrastructure projects that enhance resilience. This includes the construction of flood barriers, upgrading stormwater management systems, and implementing green infrastructure solutions. These improvements protect against flood-related losses and contribute to the community's sustainability and livability.  

• NFIP’s support for local governments extends beyond mere risk transfer through insurance. It actively facilitates a culture of proactive risk reduction, enabling communities to withstand and recover from flood events with greater efficacy. Through collaboration, local authorities can implement a suite of measures that collectively build a more resilient and sustainable foundation for the well-being of their residents and the long-term prosperity of the region. 

During the hearing, Senator Menendez discussed the need to pass S.2142, long-term NFIP reauthorization. This legislation would reauthorize the program for five years – providing greater stability for homeowners, small business owners, and the real estate market. It will also implement a series of reforms to reduce costs, make generational investments in communities to reduce flood risk, and establish a fairer claims process for policyholders all based on lessons from Hurricane Sandy.

Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.