Lawmakers from the House of Representatives and the Senate averted a government shutdown on Saturday, just hours ahead from a funding lapse. Passage allows Congress to fund the government for 45 days, provide $16 billion in disaster assistance, and temporarily extend the National Flood Insurance Program.
In the meantime, Congress continues to work on a long-term reauthorization of the program, the National Association of Realtors (NAR) said in an FAQ document released last week.
A lapse of the NFIP could have impacted broad sectors of the housing industry, particularly the mortgage sector, which could not issue mortgages to certain borrowers whose properties require flood insurance by federal authorities.
An extended lapse in NFIP authority could affect 1,300 real estate transactions per day., the NAR said.
The NFIP’s last multi-year reauthorization sunsetted on September 30, 2017. Since then, the program was extended 22 times (23 times as of today) and lapsed thrice. Each disruption caused “immediate and widespread” impacts on property sales, home values and consumer confidence, the National Association of Home Builders noted in a statement.
“Moving forward, NAHB will continue to work with Congress to achieve a long-term reauthorization of the NFIP that will keep the program fiscally sound and let builders provide safe and affordable housing,” Alicia Huey, chairman of the NAHB said in a statement.
