As the state and parish governments ready legal challenges of how the Federal Emergency Management Agency calculates flood insurance prices, state lawmakers have lined up in support of lawsuits over that issue.
The Louisiana House unanimously cleared House Concurrent Resolution 58 on Tuesday and delivered that measure on Wednesday to the Senate. The measure urges the state Attorney General’s Office to challenge the Risk Rating 2.0 pricing system, which critics say has raised rates substantially for Louisiana residents.
Attorney General Jeff Landry is expected to soon file the lawsuit against FEMA, which oversees the National Flood Insurance Program. Thirty parishes and all the levee boards in the state joined in supporting the resolution that calls for a statewide legal challenge.
“After listening to constituents, collecting evidence, and determining the viability of litigation – we believe their formula is arbitrary and capricious,” Landry said Wednesday. “FEMA has ignored Congress and the states’ demands for transparency for too long, and our citizens deserve better from the feds.”
Landry first said in March he would sue FEMA over the program; Terrebonne Parish last week agreed to join the lawsuit. St. Charles Parish filed its own lawsuit last month.
At their meeting Wednesday, the Jefferson Parish Council also unanimously approved a resolution to join the attorney general’s suit.
The sponsor of the council’s resolution, Jefferson Parish Council member Ricky Templet, said he wants to make sure that flood protection projects are being included in FEMA’s algorithm.
“The (U.S. Army) Corps of Engineers have put a lot of money and measures into reducing the possibility of flooding and hurricane surge and improving our drainage system. Right now, how do we have assurances that they are calculating those in our flood rates?” Templet said.
At a Tuesday hearing on the state House resolution, its author, Rep. Jerome “Zee” Zeringue, R-Houma, said Louisiana has the highest number of flood insurance policies, but is subject to a disproportionate impact in the rate hikes.
“This HCR has the potential of significantly impacting the 450,000 policyholders of flood insurance in Louisiana,” said Zeringue.
Over the years, congressional representatives from the interior portions of the country have complained about being tapped to pay for coastal flooding damage when the flood insurance program couldn’t cover the costs. Congress had demanded that FEMA develop a way to ensure policy prices better cover payouts.
When introduced two years ago, FEMA promised that Risk Rating 2.0 would marginally lower prices for some and increase prices for others. Nationally, that has proven the case.
But in Louisiana, where more property is more susceptible to flooding, far more homes and businesses have seen the cost of their flood insurance rise dramatically.
The average price of a policy in Plaquemines Parish rose 543%, 320% more in Lafourche Parish, Zeringue said. Because financiers require flood insurance for some properties, such high rates are problematic when selling the home or business.
Rep. Greg Miller, R-Norco, pointed out that FEMA had promised to but has not released the particulars of what goes into its pricing formula. Policyholders are left wondering whether the proximity to a bayou, rain runoff amounts, or something else justifies the higher prices.
Also unclear is how often expensive, taxpayer-funded projects to mitigate flooding are considered, Miller asked.
Democratic Rep. Mack Cormier, of Belle Chasse, agreed that the lack of information on how the rates are determined is disturbing. “The only way to deal with FEMA is to play hardball,” Cormier said.
Blake Patterson of the Jefferson Parish Bureau contributed to this report.
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