FROM THE MARINER NEWSPAPERS CANTWELL’S CORNER: RECENT FLOOD INSURANCE FORUM WITH FEDERAL, STATE, AND LOCAL LEADERS The issue of recently enacted federal legislation and new FEMA maps have been on everyone’s mind over the last few weeks due to the potential, devastating effect these federal changes could bring to Marshfield, Scituate and residents throughout the United States. With a goal of changing the regulations I recently asked US Senator Ed Markey to come meet with state and local officials, business and community leaders, and a panel of professionals from banking, real estate, and insurance fields to detail the severe, unintended consequences of this new federal legislation. In the brief span of this report I’d like to summarize information we shared at the meeting and to detail the specific requests we have made of the Senator. State Concerns: I opened the meeting stating that government has a compelling interest and role in helping citizens to protect both their personal safety and their property. In this significant role the National Flood Insurance Program (“NFIP”) has been a great example where our federal government has effectively promoted public safety and protected property. The NFIP had, in fact, insured homeowners, paid for repairs after floods, and run a surplus over its 45-year history, returning over six billion dollars to the federal treasury. Then Hurricane Sandy hit, and the NFIP was forced to borrow over $25 billion. Federal legislation known as the Biggert-Waters Act was passed by Congress to address concerns about the solvency of the NFIP program. However, the changes enacted are overly burdensome to homeowners and businesses and the corresponding map changes are both overly broad and potentially based upon flawed analysis. Joining me to express concern that the federal changes to the NFIP were too much for homeowners and businesses to afford were State Rep. Josh Cutler (Duxbury), and representatives from the offices of Robert DeLeo (Mass. Speaker of the House), Therese Murray (Mass. Senate President), Rep. Garrett Bradley (Hingham), and Rep. Tom Calter (Kingston). Town Concerns: Selectman Matt McDonough of Marshfield and Selectmen Shawn Harris and Marty O’Toole, both of Scituate, spoke for their respective towns stating that these federal changes pose a significant threat to our quality of life in Marshfield and Scituate are causing widespread worry among residents who are concerned about whether they are living in a new flood zone and whether they will be able to afford living in the town. The Town Engineers and Building Inspectors both expressed concern that the third party maps created for FEMA were potentially flawed and questioned whether the maps proposed were peer reviewed. Town Planners Paul Halkiotis and Laura Harbottle noted that the towns have been proactive in working to plan for the effects of sea level rise but expressed concern that the new FEMA sponsored maps would create untold hardship on homeowners and businesses. Other Marshfield Town Officials who were provided testimony with concerns about the new legislation/maps included DPW Director Tom Reynolds, Town Engineer Charlie Swanson, Building Inspector Jerry O’Neil, Fire chief Kevin Robinson, Police Chief Phil Tavares, Emergency Operations Center Director Paul Taber, and Conservation Agent Jay Wennemer. Marshfield residents who are organizers of the Marshfield Coastal Coalition Doris Crary (Macombers Ridge) and Joe Rossi (Quail Run) were also present and reinforced the testimony and requests of town officials concerned with the impacts of the federal legislation. Scituate residents who provided testimony with concerns about the new legislation/maps included David Ball, Chair of the Scituate Seawall Committee, who indicated that he pays $2,500 a year for flood insurance now, with a projected increase to over $10,000 a year, which will be unaffordable to virtually all Scituate residents. Real Estate Concerns: Carol Conway Bulman (CEO of Jack Conway & Associates) and Steve Webster (Owner/President of Success Realty) provided an overview of how Biggert-Waters could severely impact the value of coastal homes at a time when the real estate market was barely rebounding from losses in the last decade. Examples of house sales that have fallen through or are on hold as a result of flood map changes were cited as a reason to freeze implementation of this federal legislation. Bank Concerns: Two bank Executives, Joe Norton (Scituate) and Bill Bowers (Marshfield) discussed how the dramatic increase in flood insurance rates could trigger widespread defaults in mortgage payments for both homes and businesses, with serious adverse effects on the regional economy. Business Concerns: Chuck and Mitch Haddad (owners of Haddad’s Ocean Café) discussed the fact they made a significant investment to improve their restaurant to not only meet the then required FEMA flood elevation but to exceed it by two feet. Less than a year later they are being told new maps place them three feet below the new required flood elevation, which will result in a large increase in their flood insurance. Chris White, President of the Marshfield Chamber of Commerce and Road to Responsibility, stated that these changes will add an unwelcome additional cost of doing business along the coastline. White noted that his specific human services business – the largest employer in Marshfield – runs on a very tight budget and could be facing an estimated $100,000 yearly increase in insurance premiums if the Act is not amended. Andy Wening, President of Wening Insurance, spoke to the challenge coastal homeowners have in finding affordable homeowner’s and flood insurance at present and notes a concern the new rates will outpace the ability of residents to pay their premiums. Wening proposed that the Senator consider requiring the NFIP to obtain reinsurance to help stabilize rates offered to consumers. Specific requests we made of Senator Markey included: (1) Freezing implementation of the Biggert-Waters Act and of the new FEMA maps (2) Requiring a comprehensive study of the impacts of new rates on homeowners and businesses before the Act can be implemented (3) Extending the period in which flood map determinations may be appealed, allowing for “peer review” of work completed by FEMA’s third party consultants (4) Grandfathering businesses and homeowners who have made substantial investments to flood proof their structures under past FEMA standards but now face significant increases in insurance premiums due to new legislation and maps Readers of the Mariner should be encouraged by the fact that Senator Markey expressed cautious optimism that he could work with a coalition of other US Senators to make a difference on this flood insurance crisis and that Congressman Bill Keating, whom had staff at this meeting, has recently co-sponsored legislation (HR 2199) that addresses many of the concerns we raised at our meeting. As always if you have questions on this or any other issue please contact me by phone at (617) 722-2140, by email at [email protected], or by mail at Rep. Jim Cantwell, Room 23 State House, Boston, MA 02133.
Posted on: Tue, 10 Sep 2013 03:33:26 +0000
Trending Topics
Recently Viewed Topics
© 2015