The law was passed to address a $24 billion deficit in the program, which serves about 5 million people and had mounting losses, largely from Hurricane Katrina in New Orleans in 2005.
Shortly after enactment of the 2012 law, Super Storm Sandy hammered much of the Northeast coast, generating another wave of insurance claims.
That law did not stipulate that rates would soar by more than 10 times, but that is what happened to the surprise of lawmakers and consternation of homeowners and small businesses.
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Such rate hikes, they warned, could force many homeowners and businesses to sell their properties, which in turn could lower real estate values and damage the economy.
With so much at stake, normally warring Democrats and Republicans in Congress came together to find a solution.
The Senate bill would have delayed any rate hikes for four years while FEMA seeks changes. The House version would not delay the hikes, but limit them.
Backers of the bill include real estate brokers, banks and home builders. A number of conservative groups oppose it, largely because of the continuation of subsidized insurance rates.
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The nonpartisan Congressional Budget Office said the House-passed bill would have zero impact on the financial standing of the flood insurance program over the next decade.
The CBO said the bill would pay for itself with annual assessments to program's reserve fund—$25 a year for primary homeowners and $250 a year for businesses and vacation homeowners.