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HomeMy WebLinkAboutResolution No. 2013-16 RESOLUTION NO. R2013-16 A RESOLUTION OF THE CITY OF FRIENDSWOOD TEXAS URGING AMENDMENTS OR REVISIONS TO THE BIGGERT-WATERS FLOOD INSURANCE REFORM ACT OF 2012 RECENTLY PASSED BY THE U. S. CONGRESS; DIRECTING THE CITY SECRETARY TO SEND A CERTIFIED AND TRUE COPY OF THE RESOLUTION TO ALL STATE AND FEDERAL LEGISLATORS; MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT WHEREAS, since 1968 the historical purpose of the National Flood Insurance Program (NFIP) was to provide affordable flood insurance in exchange for using FEMA generated and specified Flood Insurance Rate Maps (FIRMS) for floodplain management by a participating community; and WHEREAS, generations of Friendswood home and business owners have made lifelong plans and investments based on the existence of affordable flood insurance as proposed by FEMA in the past 45 years; further, in many cases, these properties are the owner's largest investment; and WHEREAS, most of the issues we face in the loss of the historical protection from flooding we have enjoyed for generations are by and large traceable to historic and current Federal Policy now with the Biggert-Waters Flood Insurance Reform Act (Public Law 112- 141, aka BW12), it will affect municipalities nationwide in multiple areas such as real estate markets, banks and mortgage companies, elderly citizens living on a fixed income, and policyholders who built their communities with the best available information; and WHEREAS, through the passage of the B W 12 Act that was recently signed into law, the NFIP was revised such that the public's reliance on the program to provide affordable flood insurance protection for prior investments in their homes and businesses were essentially dissolved which means these structures will receive a 25% increase in the flood insurance premium for the next four (4) years (in some cases a 20% increase over five (5) years) and this passage substantially and immediately devalued the investments made in all properties receiving subsidized insurance premium rates through the drastic increase in the cost of flood insurance and all other properties in the area; and WHEREAS, previously these structures were rated on Pre-FIRMS or the FIRMS in effect when the structure was constructed, and now, even though the structures were not substantially damaged, (was over 50% of their fair market value now BW12 states 30% of fair market value), their owners will struggle to pay premiums to keep flood insurance on these structures; and WHEREAS,the Flood Disaster Act of 1973 required the purchase of flood insurance on and after March 2, 1974, as a condition of receiving any form of federal or federal-related financial assistance, (banks, mortgage companies, savings and loans) for acquisition or construction purposes with respect to insurance buildings; and WHEREAS, under the NFIP regulations, Section 59.3, "this flood program still requires upon the effective date of the FIRM the charging of risk premium rates for all new constructions and substantial improvements." Homeowners and businessmen wanted to be in compliance and were following the latest information provided to them by their local government who had partnered with FEMA so that the economy could prosper and people could get the loans they needed to build homes and businesses; and WHEREAS, it is incumbent upon us all to have a long term, sustainable and viable NFIP with rates that are affordable. 82013-16 2 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE OF TEXAS, THAT: Section 1. The City of Friendswood requests that all Texas Federal Legislators initiate efforts to amend or revise the Biggert-Waters Flood Insurance Reform Act to reduce the severe short term economic/financial impact on people and communities. PASSED AND APPROVED on this 9th day of September,2013. Kevin M. Igo and Mayor ATTEST: ....... FRIENp p s �en Melinda Welsh, TRMC Q* City Secretary oe�: 82013-16 3 Mayor ` KEVIN M.HOLLAND NDS W O Mayor Pro Tem&ty of FN p enrQ w®®d BILLYJ.ENOCHS ti 910 South Friendswood Thrive Councilmembom Friendswood, Texas 77546-4856 STEVE ROCKEY ( 281 996-3270 JIM HILL ) PATRICK J.M%INNIS �S Fax: (281)482-1634 JOHN SCOTT �TX CARL W.GUSTAFSON City Manager _ ROGERROECKER City Secretary MELINDA WELSH,TRMC CERTIFICATION )( STATE OF TEXAS )( CITY OF FRIENDSWOOD )( GALVESTON/HARRIS COUNTIES )( SEPTEMBER 19, 2013 I, MELINDA WELSH, CITY SECRETARY OF THE CITY OF FRIENDSWOOD, DO HEREBY CERTIFY THAT THE ATTACHED TO BE A TRUE AND CORRECT COPY OF THE ORIGINAL ON FILE, AND OF RECORD WITH THE CITY SECRETARY'S OFFICE, OF RESOLUTION NO. R2013-16. ATTEST: MELINDA WELSH, TRMC CITY SECRETARY oN; ;f0: CITY OF FRIENDSWOOD SEPTEMBER 19, 2013 • F y'A5 •° °••OF•r'EXPo•°