In a letter sent today to House and Senate leaders, NAHB called on Congress to act quickly to extend the National Flood Insurance Program (NFIP) before it expires on Sept. 30 to avoid immediate and widespread impacts on property sales, home values and consumer confidence.
Any lapse of the NFIP will leave millions of Americans at risk and disrupt the purchase of flood insurance in more than 20,000 communities across the United States, impacting an estimated 1,300 property sales each day. If the program expires, this means the government will have no authority to provide new flood insurance contracts until it is reauthorized. This will delay all new home sales and insurance renewals for property owners who have federally backed mortgages for homes that lie in a Special Flood Hazard Area.
“What the housing market needs now is stability and certainty,” NAHB told lawmakers. “Uncertainty over whether the NFIP will lapse, coupled with the growing possibility of a government shutdown, may have a significant negative economic effect on home builders, home buyers and renters. To this end, we urge Congress to consider the effects of a government shutdown on federal programs that directly support the construction of new housing, help buyers or renters access housing, or provide federal permits that may be required for construction.”
While NAHB continues to aggressively pursue all avenues to extend the NFIP, builders need to be aware that even a short-term disruption to the NFIP will force delays — and in some cases, cancellations — to home sales that require the home owners to have federal flood insurance under the NFIP.
NAHB continues to hammer home the gravity of the situation to congressional leaders, and call on the leadership in both the House and Senate to quickly strike a deal to avoid a government shutdown that would harm an already fragile housing market.