Reps. LaMalfa, Matsui, Kim Introduce Bill to Keep Homeownership Costs Down

Washington, D.C.— Congressman Doug LaMalfa (R-Richvale), with Congresswoman Doris Matsui (D-CA) and Congresswoman Young Kim (R-CA), introduced the bipartisan Keeping Homeownership Costs Down Act (H.R. 3800) to help reduce housing costs by directing the Federal Emergency Management Agency (FEMA) to resume issuing exemption letters, while court-mandated Endangered Species Act (ESA) reviews take place, that keep homeowners from having to purchase expensive flood insurance if their properties are unlikely to flood.

"California families are already struggling with the rising cost of housing and requiring them to purchase expensive flood insurance when their home is unlikely to flood adds another financial burden to homeownership,” said Rep. LaMalfa. “Following a court ruling in 2019, FEMA stopped issuing exemptions while it was forced to conduct additional and duplicative environmental reviews of this practice.  This is ridiculous.  My common sense, bipartisan bill helps make owning a home more affordable by requiring FEMA to restart issuing flood insurance purchase exemptions right away while environmental reviews take place.

“In Northern California, we have long had to balance lifesaving flood protection measures with our critical need for additional housing,” said Rep. Matsui. “The Keeping Homeownership Costs Down Act is a commonsense fix that restores a tool in building affordable houses in our region. By ensuring FEMA can continue issuing LOMR-Fs, we prevent families from being priced out of homeownership while upholding key environmental protections.”

Background:

• CLOMR-F and LOMR-F letters allow FEMA to revise flood maps for properties that have been elevated above flood zones, removing the federal requirement to purchase flood insurance.
• FEMA stopped issuing these letters in six counties in 2020, expanding the pause to 32 counties in 2023, after a lawsuit required the agency to consult with the U.S. Fish and Wildlife Service and the National Marine Fisheries Service under the ESA on these letters.
• California builds fewer than 80,000 homes per year despite needing around 180,000 annually to meet demand. Rising construction costs and mandatory flood insurance contribute to high housing prices.
• Developers already go through ESA compliance when seeking permits to build housing projects. Requiring FEMA to conduct separate ESA reviews for LOMR-F and CLOMR-F letters add regulatory duplication without improving environmental protections.
• The Keeping Homeownership Costs Down Act directs FEMA to issue the letters, as appropriate, until the ESA consultation process is completed, helping lower housing costs and avoid unnecessary delays.