North Miami-Dade News

Reps. Mario Díaz-Balart and Lois Frankel have introduced the Flood Risk Transparency for Homebuyers Act, a bill that aims to provide homebuyers with important information about flood risks associated with properties owned by the U.S. Department of Housing and Urban Development (HUD). The bill requires HUD to disclose if a property is located in a special flood hazard area to ensure that homebuyers are fully informed before making a purchase.

Rep. Díaz-Balart, a representative from Florida, emphasized the importance of transparency in the homebuying process, particularly in a state that has experienced the devastating impact of hurricanes and storms. He stated, "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." He commended Senator Marco Rubio for his leadership in introducing the Senate companion of the bill.

Rep. Frankel, also from Florida, highlighted the significant damage that floods can cause to homes and families. She explained, "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."

The Flood Risk Transparency Act includes several provisions to ensure that homebuyers are well-informed about flood risks associated with HUD properties. Firstly, it requires HUD to provide a disclosure notice for residential properties listed for sale if they 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). The disclosure notice would also include the estimated monthly cost of National Flood Insurance Program (NFIP) insurance in the zip code where the property is located.

Additionally, the bill mandates a disclosure notice to homebuyers if the property is classified as a Repetitive Loss property under the NFIP. This provision aims to inform homebuyers about properties that have previously experienced flood damage and may be at a higher risk of future flooding.

Furthermore, the Flood Risk Transparency Act calls for an annual report to Congress coordinated by HUD and FEMA. This report would provide information on all residential properties sold by HUD that have received assistance for claims under the NFIP, including those classified as Repetitive Loss properties.

The introduction of the Flood Risk Transparency for Homebuyers Act addresses the need for greater transparency and awareness of flood risks when purchasing HUD-owned properties. By providing homebuyers with essential information about flood zones and insurance costs, this bill aims to protect buyers from potential financial hardships associated with natural disasters.

Overall, the bill aims to ensure that homebuyers have the necessary information to make informed decisions and protect themselves from the financial consequences of flooding. It is a crucial step towards promoting transparency and resilience in the homebuying process, particularly in areas prone to hurricanes and other severe weather events.