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 Nolan Phone: 252-207-4898 Dated: March 23rd 2014 Views: 11,598 About Mike: Mike is the Broker-in-Charge of Waterfront Properties OBX and has been successfully involved in real...
Waterfront Properties OBX is a privately owned company specializing in sales, leasing and land development of residential and commercial real estate on the Outer Banks of North Carolina (OBX).
Michael P. Nolan, Broker-in-Charge, has been successfully involved in real estate on the OBX since 1989. Mike was involved in the initial and / or development of the following premier communities and businesses located on OBX: Pirates Cove, Corolla Light, The Currituck Club, Pine Island, Old Nags Head Place, The Berkley Manor, Beachside Landing, Ocean Trail Realty and Ocracoke Island Realty to name a few.
Mike was the first resident of Pirates Cove community in 1988. He toured Rees Jones, famed golf course architect, the first time Rees saw the property now known as The Currituck Club on Feb. 18, 1995. Mike managed the sales and marketing while Rees Jones, Inc designed and developed The Currituck Club golf course from a combination of dense woods and sand dunes into one of the top 50 new resort golf courses in North America by Golf Digest magazine in 1997. Mike also developed Old Nags Head Place, a community of homes located within Nags Head with an architectural design reminiscent of the original Nags Head landscape, with cedar siding, exposed rafters and preservation of the indigenous live oakes within the community
From Corolla to Ocracoke Island, Mike's expertise in all facets of real estate sales, development, leasing and investment are available for buyers, sellers and investors to explore the many opportunities the OBX has to offer
"December 9, 2013…My husband & I closed today on our OBX property. If you’re like me, you spend countless hours each year searching the web for properties for sale, watching home shows on HGTV, attending open houses unrepresented leaving false contact information, and discussing ad nauseam about someday owning property at the beach. So, to all you DIY-ers, your SOMEDAY is TODAY…well, it’s ours! We were fortunate to have had Mike Nolan represent us. During an early search, I found the perfect property, fell in love, and was sadly disappointed after I learned that it was under contract. Unfortunately, some property websites do not contain current MLS information. Our silver lining was the day Mike contacted us through one of our many searches. Mike offered his assistance…no contract, no pressure…with access to his comprehensive website with up-to-date MLS information. After many discussions as to what we were looking for, Mike encouraged us to drive down and take a look at a few properties. We found another property and put in an offer. Our offer was accepted. However, during the due diligence period, we uncovered a lot of repairs. We backed out of that transaction, but I was happy we had the opportunity to get started with the process of home ownership because it strengthened my reserve for the first property I fell in love with. I asked Mike to look into that property because it showed up as an active MLS listing. Mike made a few calls and was able to find out that the property was under contract but the deal fell through. Then, I knew that that property was meant for us. I fell in love all over again. The next day, Mike toured the property and gave us a firsthand account of the property. Seamlessly, Mike navigated us through the process one more time. His knowledge of the market was nothing less than a PRO. His people-skills were unparallel. His personalized attention was extraordinary. His expert contacts in their respective fields, from lenders to contractors to insurance brokers, effortlessly got the job done! Eventually, DIY-ers you have to put your trust in someone for that someday and this DIY-er put her trust in Mike Nolan.
Karen McElwee, proud to be an OBX property owner