National Flood Insurance Program (NFIP) Extended Until September 30, 2020
LOUISIANA REALTORS • December 6, 2019
The National Flood Insurance Program (NFIP) has been extended until September 30, 2020. While this short term extension provides some predictability for homebuyers and sellers it is far from a permanent fix.
"Confidence and stability are two of the most critical factors impacting America’s housing market and economy," the National Association of REALTORS®’ President Vince Malta said after the agreement passed the House.
This program has operated on a string of short-term extensions and endured multiple lapses over the past two years, creating uncertainty for homebuyers and sellers alike. The NFIP was extended 17 times between 2008 and 2012, and lapsed 4 times: March 1 to March 2, 2010; March 29 to April 15, 2010; June 1 to July 2, 2010; and October 1 to October 5, 2011.
In Louisiana, this unpredictability has put home sales in jeopardy and left insurance policies in limbo. Property owners and buyers need certainty to complete transactions that can take from 45 days (residential property) to over six months (commercial), and NAR research has consistently shown that NFIP lapses threaten 1,300 transactions each day.
NAR is urging Congress to use the additional time afforded by this extension to work toward consensus on the NFIP Reauthorization Act. Louisiana REALTORS® is working consistently on the bills that have been filed in Congress to reach a bipartisan, long-term solution for the NFIP, and is regularly in communication with the Louisiana Congressional delegation on this very important topic.
Louisiana’s 2026 Regular Session opened this week with several developments that matter directly to REALTORS ®, property managers and housing providers, alongside some broader political shifts worth watching. HB 292: Security Deposit Return Timelines Rep. Delisha Boyd’s HB 292, which addresses procedures for returning residential security deposits, was deferred to next week. This provides additional time for stakeholders to engage with members on practical impacts for lease administration, move out inspections and documentation standards. We’ll continue working to ensure any changes to deposit law are clear, workable and do not expose housing providers to unreasonable liability. Land Use and Development: St. James Parish Decision The Louisiana Supreme Court’s recent St. James Parish decision significantly tightens the standards for overturning local land use decisions, reinforcing that zoning and permitting authority rests with parish and municipal governments as long as their decisions are not arbitrary or capricious. For real estate and development, that means more predictability if projects are aligned with adopted plans and ordinances, but also higher stakes in local elections, planning processes and parish-level negotiations. Governor’s State of the State In his State of the State address, Governor Jeff Landry reiterated his push to phase out the state income tax, expand the LA GATOR and MJ Foster scholarship and workforce programs, and replace vehicle inspection stickers with a QR code system. These programs frame a debate around long-term competitiveness, workforce readiness and household cost of living which are all key drivers of housing demand and migration patterns. Business & Market Trends The business community is focusing the session on insurance, workforce and energy. Commercial and property insurance costs remain a top concern for employers and property owners, and we are monitoring civil justice and insurance reform proposals that could affect market stability and availability. At the same time, Louisiana is seeing more than $100 billion in announced industrial and data center projects, which could reshape local markets, labor conditions and housing needs in multiple regions of the state. Please view the weekly bill tracking report at the link below provided by our lobbying team over at Harris, DeVille and Associates.
Learn how Louisiana real estate regulations, disclosure laws, and licensing standards help protect homebuyers and create safer, more transparent transactions.
Nominations are open now through April 24, 2026, for the Louisiana REALTORS® 2025 REALTOR® of the Year & the 2025 Lawrence R. DeMarcay, Jr. Distinguished Service Award. Both awards are aimed to showcase an individual who has volunteered their time in service to the real estate industry. Recipients of the awards will be recognized during the Spring Legislative Conference. (Registration coming soon!) Please see the below links with the selection criteria and consider submitting a nomination today. Contact Donna Teekel at (225) 224-0704 or dteekel@larealtors.org with any questions.
