MBA Statement on HUD’s Federal Flood Risk Management Standard Final Rule

MBA President and CEO Bob Broeksmit, CMB, released the following statement regarding the Department of Housing and Urban Development’s Federal Flood Risk Management Standard final rule:

“At a time when housing markets across the country continue to suffer from weakening affordability, supply shortages, and rising property insurance costs, we are disappointed that several aspects of the final rule will slow housing production and ultimately increase costs for homeowners, renters, and builders.

While MBA appreciates the eight-month implementation timeline, we remain deeply concerned that expanding floodplain areas, implementing new elevation requirements for some new single-family and multifamily homes, and requiring higher levels of flood insurance will make FHA financing more expensive and less competitive. Additionally, implementing CISA (climate-informed science approach) tools is putting the cart before the horse, as the maps are not yet available nationwide, creating inconsistencies and confusion in complying with the final rule.

We will continue to work with the Biden administration on policies and solutions that address climate risks and extreme weather impacts, stressing the need for common sense approaches that do not curtail housing construction and negatively impact borrowers and renters.”