The legislation package will be released later this week in the House and Senate, and is aimed at delaying changes, including required premium increases, in the program called for under the 2012 Biggert-Waters Flood Insurance Reform Act.
The proposed rules also task the Federal Emergency Management Agency, which oversees NFIP, to complete an affordability study and propose regulations that address affordability issues.
The delay applies to primary, nonrepetitive loss residences that are currently grandfathered, all properties sold after July 6, 2012, and all properties that purchased a new policy after July 6, 2012.
The Federal Reserve earlier this month introduced a proposed overhaul of the National Flood Insurance Program. It aims to move insurance back toward the private market by requiring credit unions and banks to provide an alternative to the government program that has dominated the market for the past four decades.