FEMA Flood Insurance Reform Sparks Concern Of Foreclosure Crisis
February 25, 2020 12:29 PM
Navi Persaud

The Federal Emergency Management Agency is overhauling its National Flood Insurance Program, sparking concern as premiums could potentially become unaffordable for high-risk areas across the U.S.

"New York City officials warn that skyrocketing flood insurance premiums could trigger a foreclosure crisis in neighborhoods like Canarsie [in Brooklyn], which never recovered from the 2008 housing crash and was a hotbed of predatory loans that targeted black homeowners," according to Vox.

"Annual premiums in Canarsie — now an average of $600 — could jump to a range of $3,000 to $6,000 as soon as 2022 and become mandatory for more residents."

With housing costs rising in areas like Canarsie, Zachary Paganini, an urban geography researcher at City University of New York, believes folks will be "slowly picked off."

"City officials are lobbying Congress to provide vouchers or some other discount on NFIP premiums for those who cannot afford them," according to the report.

"FEMA itself has acknowledged how cash-strapped Americans are — a 2018 agency survey found many U.S. households would not be able to cover a $500 emergency expense," the article said.

To learn more about the National Flood Insurance Program overhaul, click here.

You might also be interested in: