Proposed congressional changes to flood insurance program could impact B.R. neighborhoods

It was almost a year ago exactly when Louisiana’s congressional delegation went to the mat, along with others, to extend the National Flood Insurance Program. It got a bit hairy, and homeowner groups warned that pending closings were in actual jeopardy at the time. While that hurdle was cleared, the fight clearly isn’t over. Later this morning, the House is expected to take up a bill that would permit higher premiums for the flood insurance program, which is swimming in roughly $18 billion worth of red ink. The change would certainly impact residents of Baton Rouge, which is sprinkled with flood zones, not only in predictable areas like River Road, but also in unexpected spots, like the properties sandwiched between Siegen Lane and Bluebonnet Boulevard near I-10. The bill, known as the Flood Insurance Reform Act, also has several amendments pending on the House floor today for consideration. For example, Rep. Candice Miller, a Michigan Republican, has a proposal calling for the federal insurance program to be eliminated by the end of January 2012. In its place, states would be allowed to create regional insurance compacts to spread risk. Miller’s amendment would give the private sector an introduction into the flood insurance business as well and it would continue to let the Federal Emergency Management Agency assist in the production of flood maps. While there’s industry support for the legislation overall, the amendment to eliminate the federal program is facing heavy opposition. —Jeremy Alford