How Flood Insurance is Impacting Transactions
LOUISIANA REALTORS • December 27, 2018
Updated on 12/28/2018…
In a critical win for home sales,FEMA reverses a controversial ruling released earlier this week. The agency will resume issuing and renewing flood insurance policies without interruption to the transaction.
"FEMA and the Administration deserve credit for hearing our concerns and acting swiftly
to address them," says National Association of REALTORS®' President John Smaby. "This new decision means thousands of home sale transactions in communities across the country can go forward without interruption, as Congress intended when it renewed the flood insurance program earlier this week."
"This would not have been possible without the constant communication with Louisiana's congressional delegation and the hard work of NAR regulatory and lobbying staff," said Louisiana REALTORS® CEO Norman Morris.
NAR, along with other organizations, including the Property Casualty Insurers Association of America and the Independent Insurance Agents & Brokers of America, urged policy makers to reevaluate the decision. Congress also expressed their concern as well.
"We thank our REALTOR® members who got engaged and responded with stories about their clients. This week's activities demonstrated how the REALTOR® Party protects your real estate business, mobilizes its efforts, and its effectiveness in protecting homeownership!." said Morris.
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WHAT IS GOING ON WITH FLOOD INSURANCE?
On December 26, 2018, the Federal Emergency Management Agency (FEMA) issued new guidance instructing insurers not to sell or renew flood insurance policies during the partial government shutdown.
<<Read the information from NAR>>
HOW DOES THIS AFFECT THE REAL ESTATE BUSINESS AND MY CLIENTS?
Transactions involving a buyer who has not
obtained required flood insurance will not be able to close until FEMA allows insurers to sell flood insurance policies.
Those who obtained flood insurance on or after 12:00 a.m., December 22, 2018, may also not be able to proceed with their closings pending a determination by FEMA.
IF THE NFIP WAS EXTENDED THROUGH MAY 2019, WHAT GIVES FEMA THE ABILITY TO DO THIS ?
FEMA’s decision was made under the Antideficiency Act, which generally prohibits federal expenditures/obligations in excess or advance of appropriations, except in cases of “emergencies involving … protection of property.”
WHAT IS THE NATIONAL ASSOCIATION OF REALTORS®’ POSITION ON THIS?
NAR believes FEMA’S action is contrary to the Congressional reauthorization and intent.
NFIP is funded by premiums paid by policyholders, not appropriations so the Antideficiency Act should not apply. NAR has provided FEMA with research that shows 40,000 home sales per month are at stake, which NAR believes would qualify for an exception under the Antideficiency Act and allowing NFIP to resume the sale of flood insurance policies.
WHAT CAN I DO TO HELP CONVINCE FEMA TO RESUME THE SALE OF FLOOD INSURANCE POLICIES?
NAR is looking for directly affected home buyers
who can tell a compelling story of how FEMA’s decision is harming real, ordinary people and families
who most Americans can relate to on this issue.
NAR may share these stories with FEMA or Congress
to demonstrate the disruptive affect this decision has on the real estate market and ordinary citizens. NAR may also ask the buyer to be a media spokesperson for the issue if their story is what NAR is seeking to convey about the disruption FEMA’s decision is causing.
Louisiana REALTORS® is seeking your help to identify any of your clients who may have a compelling story that they are willing to share about the harmful impact of FEMA’s decision to stop selling flood insurance policies.
Please respond to info@larealtors.org
with your name, your client's name, phone number, and brief description of their situation. We will call you first and then contact them to see if your client's situation fits within the parameters NAR is seeking. If so, with their permission we will share their story and contact information with NAR.
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Candidate qualifying for Louisiana’s November 3 election began Wednesday, August 5, and concludes Friday, August 7. The three-day qualifying period will establish the candidates for all six U.S. House districts, as well as judicial, parish and municipal races across the state. This election cycle includes several changes to Louisiana’s congressional races and election calendar. The state’s U.S. House primaries, originally scheduled for May 16, were canceled following the U.S. Supreme Court’s decision in Louisiana v. Callais. The Louisiana Legislature subsequently adopted a new congressional map that reduced the number of Black-majority congressional districts from two to one. Under the revised election calendar, the November 3 U.S. House contests will use an open primary system. All qualified candidates will appear on the November ballot, regardless of party affiliation. A candidate receiving more than 50% of the vote will be elected. If no candidate receives a majority, the two candidates receiving the most votes will advance to a December 12 runoff. U.S. Senate The November general election will feature Republican nominee U.S. Rep. Julia Letlow and Democratic nominee Jamie Davis. Letlow's Senate campaign has also created an open seat in Louisiana's 5th Congressional District. 5th Congressional District Several candidates have announced campaigns for the 5th Congressional District seat: State Sen. Stewart Cathey State Rep. Michael Echols Louisiana Board of Regents Chair Misti Cordell State Rep. Gabe Firment Cathey, Echols and Firment currently serve in the Louisiana Legislature. Additional candidates may qualify before the deadline on Friday. The 5th District covers portions of northeastern and central Louisiana and extends into the Florida Parishes. 6th Congressional District Congressman Cleo Fields has announced that he will not seek reelection in the newly redrawn 6th Congressional District. Instead, Fields is running in a special election for his former state Senate seat, which became vacant following the death of Sen. Larry Selders of Baton Rouge. The newly drawn 6th Congressional District extends around the Baton Rouge area and includes portions of rural communities surrounding the capital region. State Sen. Rick Edmonds has announced his candidacy. State Sen. Blake Miguez has also been discussed as a potential candidate, although the candidate field will not be finalized until qualifying closes Friday. Federal law requires congressional candidates to reside in the state they seek to represent but does not require them to reside within the specific congressional district. 2nd Congressional District Congressman Troy Carter currently represents the 2nd Congressional District, which extends from the Baton Rouge area toward New Orleans. Under the newly adopted congressional map, the 2nd District remains Louisiana's sole Black-majority congressional district. East Baton Rouge Parish Judiciary All 15 judgeships on the 19th Judicial District Court are scheduled for election following the Legislature's creation of two new judicial election subdistricts. Each subdistrict will elect seven judges, with an additional judgeship elected parishwide. Litigation challenging the new judicial map remains pending. Judicial races are among the contests being monitored by Louisiana REALTORS® and local Political Action Teams. Judicial decisions can have implications for property rights, business activity, litigation and the overall legal environment in Louisiana. Local Elections Voters across Louisiana will also consider candidates for mayors, city and parish councils, school boards, police chiefs and other local offices. While these races typically receive less statewide attention than congressional and statewide contests, local elected officials make decisions affecting land use, zoning, permitting, infrastructure, taxation and housing policy. These issues can directly affect real estate activity and development within local communities. Candidate Lists and Election Information The candidate field will not be final until qualifying closes Friday, August 7. The official list of qualified candidates is available through the Louisiana Secretary of State's Candidate Inquiry portal. The complete election schedule, including key dates for voting, registration and absentee ballots, is available through the Secretary of State's election calendar. For Louisiana REALTORS®, the qualifying period provides an early look at the candidates who will appear on the November ballot and the races that may affect real estate, property rights, development and local communities across the state.
The Louisiana REALTORS® Board of Directors will elect six (6) LR At-Large Directors at its October 1st meeting. Qualifications and an application for the position can be found below.
