Senate May Take Up Flood Ins. Bill Tues or Weds; No Amendments Offered By Boxer or Feinstein But Some Offered By Others; Obama Admin Backs Bill; Measure Currently Includes Section That Could Require Many LB & S.E. LA County Homeowners At Low Risk To Pay Flood Insurance To Cover Flood Losses Elsewhere

(June 25, 2012) -- On Tuesday June 26, the Senate is scheduled to meet starting at 7:00 a.m. Pacific time on items including a bill (S. 1940) that could require many homeowners and commercial property owners in low risk flood areas of LB and southeast L.A. County to pay annual premiums for federal "flood insurance." The bill would generate premium revenue from low risk areas nationally to cover flood damages elsewhere. LBReport.com will have LIVE VIDEO (and we anticipate improved audio and video) of the Senate proceedings.

In developmens on Monday (June 25):

The Senate took no voted actions but Senate Majority Leader Harry Reid (D, NV) offered a series of amendments re the pending legislation. [We don't have the amendments' text at this point.] No amendments were offered by either of CA's two U.S. Senators: Barbara Boxer or Dianne Feinstein.
The Obama administration's Office of Management and Budget (part of the Executive Office of the President) released a statement supporting the bill.

STATEMENT OF ADMINISTRATION POLICY
S. 1940 – Flood Insurance Reform and Modernization Act of 2011, (Sen. Johnson, D-SD)
The Administration supports Senate passage of S. 1940 to reauthorize the National Flood Insurance Program (NFIP). By requiring the Federal Emergency Management Agency to move to full risk-based premium rates for certain properties, the bill would strengthen the NFIP's financial position and increase its ability to fund future claims. The bill would also reduce flood risk and increase the resiliency of communities to flooding.
The Administration is pleased that the bill supports transitioning to actuarially sound rates to enable policyholders and communities to adjust to risk-based premiums. In addition, the Administration supports the bill's measures to strengthen and streamline mitigation programs.
As the bill moves through the legislative process, the Administration looks forward to working with the Congress on additional reforms to strengthen the NFIP and help economically distressed homeowners in a manner that is consistent with the President's Budget.

The flood insurance bill includes a section that could require homeowners and commercial property owners (whose properties carry federally backed loans) to purchase flood insurance if they're now protected by levees and dams. If the "residual flood risk" verbiage isn't removed from the Senate version of the bill (as it was last year in the House version), it could require tens of thousands of homeowners and commercial property owners in shaded areas on maps below to buy federally-run "flood insurance" each year.

On passage, the Senate bill will go to a House-Senate conference committee (a handful of House and Senate members). If the Committee doesn't remove the "residual risk" language [Congress has budget incentives to leave it in the final bill], the resulting legislation could require LB and southeast LA County homeowners with federally backed loans in the shaded areas below to pay federal flood insurance premiums each year [precise amount unspecified in bill and left to FEMA, we speculate several hundred dollars annually].