On May 30th the President signed HR 5740, extending the NFIP’s authority for an additional 60 days. The law enables FEMA to enter into flood insurance contracts through July 31, 2012.
For the past several years Congress has played this funding game. The flood laws need some serious attention. Congress cannot agree on the steps needed to improve the program. So rather than approve long-term funding for the insurance program a series of short-term funding measures, such as this one, are improved. On several occasions the renewed funding has been delayed resulting in a lapse in the availability of flood insurance. Presumably once agreement is reached, long-term funding will follow.
Section 2 of the legislation includes a phase out of subsidized premium rates for any residential property which is not the primary residence of an individual (read as vacation homes and second homes). The phase out begins on July 1, 2012. FEMA is developing procedures to implement Section 2 of the legislation.