Senate Passes Blunt Amendment To Protect Private Sector Jobs, Homeowners From Burdensome Rate Increases
WASHINGTON, D.C. – January 31, 2014 – (RealEstateRama) — U.S. Senator Roy Blunt (Mo.) applauded the inclusion of his amendment in the flood insurance bill, which was passed by the U.S. Senate today. Blunt’s amendment will help protect private sector jobs, homeowners, and property values in Missouri and nationwide.
When Americans renovate or remodel their homes, current law says any improvements that exceed 30 percent of the home’s fair market value will trigger flood insurance rate increases and other costs. The National Association of Home Builders (NAHB) estimates that the cost of crossing the 30 percent threshold will place up to $8.5 billion in annual remodeling activity and associated jobs at risk.
Blunt’s amendment returns this “substantial improvement threshold” to the historic 50 percent level to help encourage homeowners to maintain or improve their homes without risking excessive flood insurance rate hikes.
“I’m pleased the Senate passed this common-sense provision, which will help protect private sector jobs and property values in Missouri and nationwide,” said Blunt. “By encouraging people to maintain and repair homes, this amendment will protect communities across America from potentially costly job losses and lower home values.”
More than 1,600 remodeling establishments were operating in Missouri in 2012, according to the most recent data available through U.S. Department of Labor’s (DOL) Bureau of Labor Statistics (BLS). In 2013, homeowners in Missouri spent an estimated $2.6 billion on home remodeling, which averages around $1,600 per owner-occupied home in Missouri, according to the NAHB.
