M E M O R A N D U M
To: Honorable Town Council
From: Edward P. MacDougall, Mayor
Date: March 19, 2014
Re: House Bill 581
REQUESTTitle
A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF TOWN OF THE CUTLER BAY, FLORIDA, URGING MEMBERS OF THE FLORIDA LEGISLATURE TO SUPPORT HOUSE BILL 581 OR SIMILAR LEGISLATION RELATED TO THE DEVELOPMENT OF A PRIVATE MARKET FOR FLOOD INSURANCE; PROVIDING FOR TRANSMITTAL; AND PROVIDING FOR AN EFFECTIVE DATE.
Body
BACKGROUND AND ANALYSIS
In 2012, the United States Congress passed and adopted the Biggert-Waters Insurance Reform Act, which provided, in part, for the Federal Emergency Management Agency to dramatically increase certain rates of, and quickly eliminate certain subsidies for, the National Flood Insurance Program (the "NFIP") in order to make the NFIP solvent.
Thousands of residents of the Town may likely experience sudden and dramatic increases to flood insurance rates, with increases ranging from thirty percent (30%) to three thousand percent (3,000%).
One or more bills have been sponsored and introduced to the Florida Legislature for consideration during the 2014 Legislative session that seek to provide alternative coverage to the NFIP by promoting the availability of flood insurance from private market insurers at potentially lower premium.
The Florida's Legislature has developed regulatory options that are conducive to the development of an expanded private flood insurance market and industry, which may lead to lower insurance rates for the residents of the Town.
RECOMMENDATION
It is recommended that the attached resolution be adopted by the Town Council.