Commercial Real Estate Impact of Homeowner Flood Insurance Affordability Act

Erin Stackley, the new Commercial Real Estate Policy Representative in the NAR D.C. office, has put together this summary, outlining the recent news on this act, and the impact to commercial real estate.

HR 3307:

• Repeals the time-of-sale provision in Biggert-Waters (sec. 205) that triggered the largest premium increases for commercial properties;

  • Under Biggert-Waters, purchasers of commercial properties would have been required to pay the full risk rate within one year of purchase.

  • Under H.R. 3307, these buyers can assume the existing policy (including grandfathering), and will only see rate increases of UP TO 18% per year until they reach the full actuarial risk rate.

• Refunds excessive premiums to those who bought a property before FEMA warned them of the new rates; and

• Restores grandfathered rates by repealing sec. 207 of Biggert-Waters when new flood maps are issued.

If you have any questions, please contact:

Erin K. Stackley, Esq.

Policy Representative - Commercial Real Estate

National Association of REALTORS®

ph: 202-383-1150