NAR, NAHB weigh in on disaster recovery reforms
NAR and NAHB are urging federal officials to keep disaster response and flood insurance programs strong while making aid faster and easier to use. The groups support quicker mitigation funding and NFIP modernization but warned that some proposed FEMA changes could limit recovery help for homeowners after major storms.
In storm-prone housing markets, disaster recovery and flood insurance are not background issues. They can shape whether homes are repaired, rebuilt, insured and returned to the market – and whether buyers and sellers can move forward with confidence after a major storm.
That is why the National Association of Realtors® and the National Association of Home Builders (NAHB) are urging federal officials to keep a strong federal role in disaster response and flood insurance while making FEMA programs faster, simpler and more predictable.
In written comments to the FEMA Review Council, the groups responded to the council’s final report, which was completed May 7 and recommends significant changes to federal disaster assistance programs, including the National Flood Insurance Program (NFIP), and rebalancing responsibilities among federal, state and local governments.
For Realtors®, the issue can show up in practical ways: insurance availability, repair timelines, buyer confidence, seller readiness and how quickly storm-damaged homes return to the housing supply.
NAR and NAHB said they support several recommendations aimed at improving FEMA’s disaster response and operational effectiveness. Those include expediting mitigation funding, simplifying disaster aid programs and modernizing the NFIP.
But the groups also raised concerns about proposals related to NFIP privatization, higher damage-cost thresholds for disaster declarations, reduced access to Individual assistance and the use of preset triggers for public assistance rather than assessments based on actual disaster damage.
NAR and NAHB said FEMA should remain ready to support state and local governments when disasters overwhelm their capacity. The groups also backed faster mitigation funding, saying delays can cause communities to miss opportunities to rebuild with resiliency measures in place.
They also supported simplifying Individual Assistance and Public Assistance programs to reduce paperwork, improve consistency and speed recovery funding.
On flood insurance, NAR and NAHB said the NFIP is unsustainable in its current form because it must balance affordability with risk-based pricing needed for solvency. The groups supported reforms such as modernized flood mapping, attention to repetitive-loss properties and removal of duplicative or burdensome Endangered Species Act requirements.
However, NAR and NAHB opposed forcing existing NFIP policyholders into the private market through “depopulation” or a centralized clearinghouse. The groups said private options should grow, but a reformed NFIP should remain available so policyholders can choose coverage based on price, service and need.
They also raised concerns about disaster aid changes, saying higher declaration thresholds or narrower individual assistance could leave some households without enough support to fully recover. The groups said reforms should focus on cost-effective, housing-first recovery strategies.
NAR said it will continue advocating for FEMA and NFIP reforms that support disaster response, recovery and long-term resilience.
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