Resolution 380-2013 RESOLUTION NO. 380 - 2013
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF MONROE COUNTY,
FLORIDA URGING THE UNITED STATES CONGRESS TO TAKE IMMEDIATE
ACTION TO DELAY OR REPEAL THE "BIGGERT-WATERS" FLOOD
INSURANCE REFORM ACT OF 2012 TO PREVENT FLOOD INSURANCE
PREMIUM RATE INCREASES MANDATED BY THE ACT; URGING CONGRESS
TO ENACT THE HOMEOWNER FLOOD INSURANCE AFFORDABILITY ACT OF
2013 (H.R. 3370) OR SIMILAR LEGISLATION DELAYING PREMIUM RATE
INCREASES ON PROPERTY OWNERS; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, under the National Flood Insurance Program (NFIP), all property
owners with federally insured mortgages in flood risk areas are required to purchase
flood insurance; and
WHEREAS, over 5.5 million people in the United States currently hold flood
insurance policies; and
WHEREAS, 37% of the nation's NFIP policies are held by Florida property
owners; and
WHEREAS, 268,648 flood insurance policies in Florida are currently subsidized;
and
WHEREAS, Florida property owners have supported the NFIP with more than
$16 billion in payments in the past three decades while receiving only $3.7 billion in
claim payments; and
WHEREAS, Congress passed the Biggert-Waters Flood Insurance Reform Act of
2012 in July of 2012 to address the financial solvency of the NFIP by raising flood
insurance premiums; and
WHEREAS, without immediate action by Congress, the implementation of the
subsidy reforms included in the Biggert-Water's Flood Insurance Reform Act of 2012
would have the effect of excessively high, unaffordable and unreasonable increases
to flood insurance premiums providing undue hardship on property owners who have
complied with the law and responsibly paid their premiums; and
WHEREAS, dramatically increased flood insurance premiums will stagnate
Monroe County's home sales, depress property values, and escalate default of
constituents' bank mortgages in a still fragile housing market where housing prices
are only recently starting to recover from the market collapse that began in 2007;
and
WHEREAS, the mandate of the Biggert-Waters Act will have a devastating and
far-reaching financial impact on real property owners, the local economy and the
local tax base in the County of Monroe;
WHEREAS, two specific local examples of flood insurance rate increases that are
a direct result of the Biggert-Waters Act include a modest, ground level home in Big
Pine Key valued at $182,000 which received a new annual premium of $49,252,
effective November 1, 2013, a 49-fold increase from the previous year's annual
premium of $1,989; and an elevated mobile home in Stock Island valued at $27,500
which received a new annual premium of $3217, effective October 2, 2013, an 8-fold
increase from the previous year's annual premium of $393; and
WHEREAS, properties with excessive and unaffordable flood insurance
premiums become unsellable to most purchasers, which has the effect of depressing
property values; and where those properties become sellable only to wealthy buyers
who can purchase the homes for cash, and therefore won't be required to carry flood
insurance, which has the effect of limiting homeownership opportunities in coastal
communities to only the wealthy; and
WHEREAS, all components of our property base: primary homes, secondary
homes, multi-family residences, and commercial properties contribute significantly to
soundness of the local housing market and economy; and
WHEREAS, second homes require protection from excessive increases because
they provide a critical source of rental housing for our local workforce and military
personnel and therefore function as "primary residences" for these families; and
WHEREAS, commercial properties require protection from excessive increases
because they are critical sources of employment for our community, and sources of
goods and services for our residents and visitors; and
WHEREAS, Monroe County, as a small coastal community, supports a multi-
billion dollar a year tourism and commercial and recreational fishing industry and
serves as important economic engine for the State of Florida; and those industries
are supported by working people with modest salaries, who own modest homes,
insured by the NFIP; and
WHEREAS, coastal communities throughout the United States serve as an
unparalleled national economic engine generating 45% of the nation's gross
domestic product, valued at over $6.6 trillion, supporting 51 million jobs, and $2.8
trillion in wages, and providing home to 123 million Americans; and
WHEREAS, if the nation's coastal watershed counties were considered an
individual country, they would rank number three in GDP globally, behind only the
US as a whole and China; and
WHEREAS, coastal communities support a $4 billion commercial fishing industry
and a $73 billion recreational fishing industry; and
WHEREAS, coastal communities are home to a Marine Transportation and Port
industry that generates $1.9 trillion in imports and 13 million jobs; and
WHEREAS, coastal communities support a beach recreation industry that
generates $6 billion a year; and
WHEREAS, the NFIP's affordable flood insurance premiums enables coastal
communities to continue to generate $6.6 trillion dollars in economic activity and
millions of jobs, the NFIP therefore represents an investment in the nation's overall
economic well-being, and therefore is not a "subsidy" program;
WHEREAS, currently the NFIP has 5.5 million active policy holders although
there are 17 million properties in flood risk areas that are required to carry flood
insurance, creating a deficit of 12 million policy holders that should be, but are not
paying into the program; and at the current average annual premium of $650 these
12 million properties would generate an additional $7.8 billion in revenue to the
program; and at a modest increase in average flood premiums to $1,000 would
generate $12 billion in additional revenue, resolving the program's debt in a few
short years; and whereas, this represents an example of a fairer and far more
financially responsible approach to the ensure the program's integrity and solvency
than that of the Biggert-Waters Act; and
WHEREAS, the Homeowner Flood Insurance Affordability Act (H.R. 3370)
seeks to address flood insurance escalations in a measured, reasonable way; and
WHEREAS, the bi-partisan bill would ensure that FEMA completes a study on
flood insurance affordability, and propose regulations to address the issues found in
the study, and give Congress adequate time to review those regulations;
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY, FLORIDA, that:
Section 1. The County of Monroe hereby urges the United States Congress, and
specifically Florida Senators Bill Nelson and Marco Rubio and U.S. Representative
Joe Garcia to take immediate action to delay or repeal those portions of the Biggert
Waters Act that impose a punitive and unjust financial burden on coastal real
property owners;
Section 2. The County of Monroe hereby urges the United States Congress, and
specifically Florida Senators Bill Nelson and Marco Rubio and U.S. Representative
Joe Garcia to support the Homeowners Flood Insurance Affordability Act (H.R.
3370), or any similar legislation that delays implementation of rate increases
mandated by Biggert-Waters until there is an affordability study conducted; and until
FEMA develops new regulations based on the results of that study; and until
Congress reviews and approves those regulations.
Section 3. The Monroe County Clerk shall forward a copy of this resolution to United
States Senator Bill Nelson, United States Senator Marco Rubio, United States
Representative Joe Garcia, and to Florida Governor Rick Scott.
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Section 4. Effective Date
This Resolution shall become effective immediately upon its adoption.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe
County, Florida, at a regular meeting of said Board held on the 20th day of
November, 2013.
Mayor Sylvia Murphy Yes
Mayor Pro Tern Danny Kolhage Yes
Commissioner George Neugent. Yes
Commissioner Heather Carruthers Yes
491 COtCommissioner David Rice Yes
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