Last Modified: Friday, October 25, 2013 10:36 PM
State lawmakers got an earful last week about the harm the reduction of federal subsidies for federal flood insurance would cause on Louisiana property owners.
Congress passed the Biggert-Waters Flood Insurance Reform Act last year, requiring that the National Flood Insurance Program raise rates to reflect true flood risk.
But testimony before the joint Louisiana House and Senate Insurance committees, chaired by state Sen. Dan “Blade” Morrish, R-Jennings, revealed the chaos huge flood insurance premium increases will cause homeowners and businesses.
St. Charles Parish President V.J. St. Pierre choked back tears when he relayed the story of an 81-year-old woman who said if she lost her home because of skyrocketing flood insurance rates, she would commit suicide.
State Sen. Ronnie Johns, R-Lake Charles, a State Farm Insurance agent, said one customer received a $14,155 flood insurance premium for a house valued at $90,000. He said another customer saw their annual flood insurance premium go from $400 to $24,000.
Those horror tales are being felt throughout south Louisiana.
Michael Hecht, CEO of Greater New Orleans Inc., said a homeowner with a residence valued at $350,000 in Belle Chasse saw their flood insurance go from $412 annually to $15,184.
Jefferson Parish President John Young Jr. said home values in neighboring St. Charles Parish have fallen as much as 30 percent since the rate changes.
“If you’re like me, your biggest investment is in your home,” he said. “That’s the American dream. ... Home ownership is going to be taken away.
Hecht said these rate hikes would have a devastating cascade effect through Louisiana’s economy. He said homeowners would not only lose the value in homes, banks would lose their mortgage portfolio.
“The cure is going to kill the patient,” Hecht said.
Johns and others complained about the flippant attitude of the Federal Emergency Management Agency, which has produced flood maps that seemingly ignore flood control structures like levees and put land that has never flooded in flood-prone status.
Hecht said the new FEMA flood maps are not risk-based, they are “fantasy-based.”
Johns said a NFIP representative told him recently, “‘Sir, well maybe your client doesn’t need to live so close to the water.’”
In south Louisiana? Give us a break.
Lawmakers were told their best plan of action is to call their colleagues in other states to plead their case. But that shouldn’t be limited to elected officials.
This is going to take a massive lobbying effort on the part of all Louisiana residents to overturn a policy that could ultimately be more ruinous to the state than any hurricane.
This editorial was written by a member of the American Press Editorial Board. Its content reflects the collaborative opinion of the Board, whose members include Bobby Dower, Mike Jones, Jim Beam, Crystal Stevenson and Donna Price.
Posted By: Patrick Robinson On: 10/27/2013
Title: Archives of Mike Foster
Within the last 5 days, the newspapers in New Orleans, Hammond, Baton Rouge, Alexandria, Shreveport, and Monroe all reported on Bobby Jindal's announcement that he has approved the expenditure of almost 2 million dollars of state taxpayer money on a library to archive Mike Foster's Papers. If I read the articles correctly, this is the first time taxpayer money was spent specifically on housing a former governor 's memoirs. In every other case, important papers of former governors have been placed in the State Archives. Considering McNeese State University has taken a 38 per cent cut in funding in recent years, isn't this a colossal waste of taxpayer money? But more disturbing, why has The Lake Charles American Press chosen not to publish this news story when every other daily newspaper in the state (and KPLC) apparently considered it newsworthy? I have subscribed to The Lake Charles American Press for the past 20 years and in the past have respected the editors, however I now have to question their agenda. If the omission was an innocent oversight, please print the article. In addition, I would love to read Jim Beam's take on this story.