On Thursday, the US Senate gave final approval to H.R. 3370 - The Homeowner Flood Insurance Affordability Act by a vote of 72-22. Senators Burr and Hagan voted in favor of the bill. The President is expected to sign the bill into law.This legislation does the following:Reinstates Grandfathering - This bill permanently repeals Section 207 of the Biggert-Waters Act, meaning that grandfathering is reinstated. All post-FIRM properties built to code at the time of construction will have protection from rate spikes due to new mapping – for example, if you built to +2 Base Flood Elevation, you stay at +2, regardless of new maps. Also importantly, the grandfathering stays with the property, not the policy.Caps Annual Rate Increases at 15% – This bill decreases FEMA’s authority to raise premiums. The bill prevents FEMA from increasing premiums within a single property class beyond a 15 percent average a year, with an individual cap of eighteen percent a year. Pre Biggert-Waters, the class average cap was 10%. Currently (Post Biggert-Waters), the class average cap is 20%. The bill also requires a 5% minimum annual increase on pre-FIRM primary residence policies that are not at full risk. The updated legislation also states that FEMA shall strive to minimize the number of policies with premium increases that exceed one percent of the total coverage of the policy (e.g., 1% of $250,000 = $2,500).Refunds policyholders who purchased pre-FIRM homes after Biggert-Waters (7/6/12) and were subsequently charged higher rates.Permanently Removes the Sales Trigger – This bill removes the policy sales trigger, which allows a purchaser to take advantage of a phase in. The new purchaser is treated the same as the current property owner.Allows for Annual Surcharges - This legislation applies an annual surcharge of $25 for primary residences and $250 for second homes and businesses, until subsidized policies reach full risk rates. All revenue from these assessments would be placed in the NFIP reserve fund, which was established to ensure funds are available for meeting the expected future obligations of the NFIP.Allows High-Deductible Policies for Residential Properties – Loss-deductible for damage to the covered property will be allow up and including $10,000.Exclusion of Detached Structures From Mandatory Purchase Requirement – Flood insurance will not be required for any detached structure (residential policy) that does not serve as a residence.Funds the Affordability Study and Mandates Completion – This legislation funds the affordability study required by Biggert-Waters and mandates its completion in two years.Includes the Home Improvement Threshold - This bill returns the “substantial improvement threshold” (i.e. renovations and remodeling) to the historic 50% of a structure’s fair market value level. Under Biggert-Waters, premium increases are triggered when the renovation investments meet 30% of the home’s value.Additional Policies Included: This legislation includes several other provisions including preserving the basement exception, allowing for payments to be made in monthly installments, and reimbursing policy holders for successful map appeals.
Author:Mike Siers Phone: 252-489-3861 Dated: March 23rd 2014 Views: 11,611 About Mike: Mike Siers is in the top 1% in the Nations top Privately owned Real Estate company, Howard Hanna. W...
About Outer Banks Real Estate Mike and Stacy Siers Howard Hanna
We could give you the scripted bio, but it is the age of Google. Believe me when I say if you are online, you can be found. I want to tell you what you may not know.
Stacy and I have been together for most of our lives. We enjoy being around each other so much we work together. I like to say she keeps me balanced. I have been fortunate to work for many people and companies throughout the Mid Atlantic region and feel that experience has helped me understand people and situations. I have been doing sales for about 20 years, construction during 10 of those years and have managed a few companies along the way. Stacy, operated a HVAC company, managed retail and restaurants. Stacy started in Real Estate in 2008, not the best time if you dare to remember the real estate crash. She motivated me to get my license in 2009 and I started in 2010. I looked at the bad real estate market as an opportunity. A time to learn the market from the bottom up. A time to learn how to sell real estate when no one could buy it. In one of my past jobs, I learned the who, what, whens and hows of sales. I could move products! When I bought my first house out of college, I learned this was one of the most important purchases I would ever make. So when we work with clients, it is about them. We want to know why you are looking, how you want to use the house or what you are selling. What memories you have made from this house. We believe real estate is about people and relationships. We are fortunate to build friendships through real estate. It usually means we go to a lot of dinners in the summer when folks are down. (I really love that part)
The wrap up, Stacy and I won't sell you a house on The Outer Banks of North Carolina. We will work with you, share our knowledge, provide facts and dig for information on every home you are interested in and hopefully grab a bite to eat and share the memories you are making!
"August 5, 2013......
To Whom It May Concern,
During the winter of 2013, my wife Amy and I decided to invest in a property at the Outer Banks. Like many, we vacationed here often and enjoyed the family-friendly atmosphere and beautiful beaches. I spent countless hours searching MLS sites for various opportunities, making off-season trips and reading plenty of interesting and helpful articles..
Many of these articles promoted a Buyer Agent and, honestly, I thought I knew the value but many of the articles I found were posted by realtors. I knew I wanted someone to represent me when I found a house and didn’t need folks pestering me with sales calls.
I could not have been more wrong.
We engaged with Mike Nolan during one of our early searches. Mike took the time to understand what brought us here, what we were looking for and what a successful investment would be when we look back. Mike’s understanding of the market is extremely deep and his contacts up and down the peninsula are extensive. There are many people in the agent business as a second job or career, and many professional, but Mike’s understanding of the people and process proved invaluable.
We found what we thought was our property and Mike’s quick action and depth helped immediately to provide us first shot at the house. During the due diligence period we uncovered some issues that prevented us from investing. Mike talked it all through with us without pushing for a transaction and moving on as many may have done.
We started on a second home and knew immediately it was what we were looking for. Again Mike navigated us perfectly through the process. His response times were near immediate and he constantly communicated every step of the way. Just when we thought we were clear, a problem arose threatening our bid on the house. We were on the outside looking in as far as some were concerned.
We would not have this house today if it wasn’t for Mike’s professional depth, contacts and persistence. He had us protected the entire time and managed us through some rocky days. He educated other agents and was incredible in securing the house.
Thank you again Mike. And for any others reading this with interest in real estate investments, you will be in excellent hands with Mike on your team. Good luck in your search......