WASHINGTON (AP) — A bipartisan group of lawmakers ispressing for a four-year delay to changes
to the federal government’sflood insurance program that are threatening to sock thousands of peoplewith
unaffordable premium hikes.The move comes as the governmentis beginning to implement a significant
overhaul of the much-criticizedprogram. That overhaul passed last year with sweeping support.
Therevamped program was backed by both liberals and tea party conservativesbut has caused a panic in
places like Staten Island, N.Y., and the NewJersey coast and in flood-prone areas of Louisiana,
Mississippi andFlorida, where higher rates threaten to push some people out of theirhomes.Some of the
most ardent supporters of delaying the premiumincreases are conservative Republicans from Southern
states, where thenew rules have sent some home values plummeting because of uncertaintyover insurance
rates and because subsidized rates can’t be passed alongto buyers. New flood maps threaten to saddle
some homeowners who arepaying a few hundred dollars a year now with annual premiums of morethan
$20,000.Last year’s legislation promises premium increasesto 1.1 million homeowners who’ve received
subsidized, below-riskcoverage and could sock even more homeowners whose homes met olderbuilding
standards or were deemed at lower risk under previous floodmaps. Under the old rules, they could retain
their old rates since theyfollowed the rules when they bought or built their home, but they willsoon
lose those "grandfathered" rates under the new law.The newlegislation, to be unveiled at a
Capitol Hill news conference Tuesday,would delay the new rates for people purchasing homes from someone
whocurrently has a subsidized policy or people who face higher rates whenflood maps are updated. People
with second homes or whose property hasrepeatedly been flooded would still have to pay the higher rates,
whichare scheduled to rise by 25 percent a year until their premiums reflectthe true risk of
flooding.Last year’s law protected subsidies forpeople who receive them if their houses hadn’t been
recently flooded.The new legislation would allow them to transfer the subsidy when theysell their home,
thereby propping up home values.Sponsors of thebill included Democratic Sens. Bob Menendez of New
Jersey, Mary Landrieuof Louisiana and Bill Nelson of Florida, as well as Republican Sens.Johnny Isakson
of Georgia, David Vitter of Louisiana and Thad Cochran ofMississippi. Rep. Maxine Waters, D-Calif., who
co-wrote last year’slegislation, is also on board."This is great news for manyFloridians who’ve
been told their flood insurance rates were going wayup," Nelson said. "If people can’t afford
the coverage, what good is itgoing to do?"It’s unclear whether the drive to delayimplementation of
the law will succeed. Backers of the delay won animpressive, bipartisan 281-146 House vote earlier this
year on anamendment to a spending bill that would postpone some of the premiumincreases. But
conservative groups are against the idea, and House andSenate leaders have both been silent about it.The
flood insuranceprogram has long offered below-cost rates for homeowners in flood zonesand has racked up
about $25 billion in red ink since its creation in1968.It has been criticized for repeatedly paying off
homeownerswhose houses get flooded every few years. The flood insurance programcollects $3.5 billion in
premiums each year, but the Federal EmergencyManagement Agency, which runs it, says $1.5 billion more is
requiredfrom subsidized policyholders to put it on sound financial footing asrequired by last year’s
changes.The new legislation also requiresFEMA to conduct an overdue study about the affordability of
imposingrisk-based rates on homeowners and directs the agency to propose ways totackle affordability
issues.Copyright 2013 The Associated Press. All rightsreserved. This material may not be published,
broadcast, rewritten orredistributed.