WASHINGTON, D.C. – Today, Reps. Mario Díaz-Balart (R-FL 26) and Lois Frankel (D-FL 22) issued the following statement after introducing the Flood Risk Transparency for Homebuyers Act, a bill that requires the U.S. Department of Housing and Urban Development (HUD) to provide a disclosure notice to homebuyers of properties owned by the HUD that are located in special flood hazard areas, and for other purposes. When purchasing a property, homebuyers are often unaware if the property is within a flood zone, thus putting the buyer at risk of unknown financial hardship after a natural disaster. To avoid this, HUD should provide flood zone disclosure notice to all potential homebuyers of HUD properties.
"In Florida, we've experienced firsthand the devastating impact of hurricanes and other storms," said Rep. Díaz-Balart. "Property owners have borne the brunt of this, especially with flood damage. Many homebuyers discover too late that their property is located in a flood zone. For this reason, ensuring full transparency for homebuyers before purchasing a HUD-owned property is paramount. It's a privilege to co-lead this legislation alongside my Floridian colleague Rep. Lois Frankel, and I commend Senator Marco Rubio for his leadership on this critical issue affecting all Floridians."
“Floridians know all too well about hurricanes and tornadoes,” said Rep. Frankel. “These disasters often cause floods, which lead to extensive damage to families’ homes and pocketbooks. This bill would require that HUD put homebuyers on notice if they are purchasing a HUD property within a flood zone so buyers can make an informed purchase regarding flood risks.”
Background
The Flood Risk Transparency Act would:
- Require HUD to provide a disclosure notice for residential properties from HUD when these properties are listed for sale if the properties are located in a Special Flood Hazard Area (SFHA) according to a Flood Hazard Boundary Map (FHBM) or a Flood Insurance Rate Map under the Federal Emergency Management Administration (FEMA).
- Require the disclosure above also to include the estimated monthly cost of NFIP insurance in the zip code where the property is located.
- Require a disclosure notice to homebuyers if the property is a Repetitive Loss property under the National Flood Insurance Program (NFIP).
- Require an annual report to Congress coordinated by HUD and FEMA on all residential properties sold by HUD receiving assistance for claims under the NFIP, including for Repetitive Loss properties.
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