R-2013-183 2013-11-11RESOLUTION NO. R2013-183
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS URGING AMENDMENTS OR REVISIONS TO
THE BIGGERT-WATERS FLOOD INSURANCE REFORM ACT OF
2012 RECENTLY PASSED BY THE U. S. CONGRESS; DIRECTING
THE CITY SECRETARY TO SEND A CERTIFIED AND TRUE COPY
OF THE RESOLUTION TO ALL STATE AND FEDERAL
LEGISLATORS; MAKING VARIOUS FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT.
WHEREAS, since 1968 the historical purpose of the National Flood Insurance
Program (NFIP) was to provide affordable flood insurance in exchange for using FEMA
generated and specified Flood Insurance Rate Maps (FIRMS) for floodplain
management by a participating community; and
WHEREAS, generations of Pearland home and business owners have made
lifelong plans and investments based on the existence of affordable flood insurance as
proposed by FEMA in the past 45 years; and
WHEREAS, The Biggert-Waters Flood Insurance Reform Act (Public Law
112-141, aka BW12), will affect municipalities nationwide in multiple areas such as real
estate markets, banks and mortgage companies, elderly citizens living on a fixed
income, and policyholders who built their communities with the best available
information; and
WHEREAS, through the passage of the BW12 Act that was recently signed into
law, the NFIP was revised such that the public's reliance on the program to provide
affordable flood insurance protection for prior investments in their homes and
businesses were essentially dissolved which means such structures will receive a 25%
increase in the flood insurance premium for the next four (4) years (in some cases a
20% increase over five (5) years) and this passage substantially and immediately
RESOLUTION NO. R2013-183
devalued the investments made in all properties receiving subsidized insurance
premium rates through the drastic increase in the cost of flood insurance and all other
properties in the area; and
WHEREAS, previously such structures were rated on Pre-FIRMs or the FIRMS
in effect when the structure was constructed, and now, even though the structures were
not substantially damaged, (was over 50% of their fair market value now BW12 states
30% of fair market value), property owners will struggle to pay premiums to keep flood
insurance for such structures; and
WHEREAS, the Flood Disaster Act of 1973 required the purchase of flood
insurance on and after March 2, 1974, as a condition of receiving any form of federal or
federal -related financial assistance, (banks, mortgage companies, savings and loans)
for acquisition or construction purposes; and
WHEREAS, under the NFIP regulations, Section 59.3, "this flood program still
requires, upon the effective date of the FIRM, the charging of risk premium rates for all
new constructions and substantial improvements."
WHEREAS, property owners have followed the latest information provided to
them by their local government who had partnered with FEMA so that the economy
could prosper and people could get the loans they needed to build homes and
businesses; and
WHEREAS, it is important to have a long term, sustainable and viable NFIP with
rates that are affordable; now, therefore,
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RESOLUTION NO. R2013-183
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. The City of Pearland requests that all Texas Federal Legislators
initiate efforts to amend or revise the Biggert-Waters Flood Insurance Reform Act to
reduce the severe short term economic/financial impact on people and communities.
PASSED, APPROVED and ADOPTED this the 11th day of November, A.D.,
2013.
ATTEST:
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APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
TOM REID
MAYOR
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