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WWL>Topics>>11-21 10:10am Garland, Flood Rate Hikes

11-21 10:10am Garland, Flood Rate Hikes

Nov 21, 2013|

Thousands of Louisiana homeowners, who are threatened with losing their homes due to huge increases in flood insurance rates, are facing troubling signs from Congress. An effort to delay the increases hit a roadblock--Finance committee members are against it. If the increases stay, can you or your business stay in south Louisiana? Garland spoke with Arthur Sterbcow, Local Real Estate Analyst.

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Automatically Generated Transcript (may not be 100% accurate)

The numbers -- over the years on the university medical center here in New Orleans that gigantic structure that's being built that. A lot of us troop will lift the economy of New Orleans and metro history even more than in suits between them. And the show we've gone or are basically -- well where's the capital to run the place to receive the money to build that -- the capital. To run the place. And we've been told by a hospital are going to be running the organization we've been told. Those in so the university medical soon. Quit being so negative you know a good bet that more -- we're -- to develop its hold on one now. Comes revelation that one of the complexes drew holds the bayou district. Hasn't secured over while all sorts of annual one thing. Over and talked won't -- board members of the bayou district. And John Kennedy. The state treasurer. Who's also been announced risking the same question over the years. And get his take on the because he is the more on the percent there was. Does its agreed it's going to be -- -- be great for all of this. Would get demoted to run the -- so we'll try to figure though when. On the other side of when several we have via. Crime commission on the roads ditto looking. How to improve our police department or -- and usually we get in the polled said that people. In this -- for over. Are getting more confident of the in group TDs and and agreeing. With a lot of things are trying to do more than we have in the past now comes word of word freaking police force. It's wasting his time with -- minor routes and regrets the mayor and the police chief for him but they couldn't be this. So we'll have some union representatives. Would have a criminologist. Try to figure out what if anything can be done at this point. This hour something perplexing to me at least it has been the past and think about the entry now. But basically we're we're talking about something called 2012 bigger waters. -- insurance reform. And if you lived in areas without insurance rate I know you know we're talking about. All world congress -- congressional delegation. And a number of senators from out of state. Have been pushing for a four year delay in massive rate hikes some people 101000 more year a lot of people. Won't be able to sell -- houses in -- -- him -- And we try and reported your delay but not all that being bought by other members of congress. And the attempt by primary earlier -- Maryland sin and to connect this to remove entered bill looks like that may be in trouble to do so with -- all that says it wouldn't try to get better handle on. Once again we aboard -- -- co owned a local real estate analyst with Arthur welcome to show. You. A lung. I've always said doom we were talking all appear with dole staff and planning board chose to do. -- it's a -- to do that but it's it's not gonna be really big thing. Because there's threatens people all along East Coast and Florida and and -- the goals that so there's no way this will come about. But now -- -- it only affects one point one million. It is that why this thing looks like. Losers chants. We're not gonna give that or your delay. Well I'm not sure about a four year -- whether that happen are certainly open does. But I think you have to be our. Little broader and all fifty states impacted this -- and most people think it's a coastal problem and arcane blood. But I mean got -- brokers and in Colorado that called me into their properties. Along creeks and good luck. And their -- impacted by the increasing legal way to does that Rico beat airport -- -- but the creek blah. And so lenders in those areas where previously been considered what ensures. Or Milosevic were looking at record -- -- and those are so believe me it's a -- he's stated in. The problem is it's just not as deeply rooted in Asia which did that impact that many homes across the states as a as a whole. At that aren't talking about congress' one point one million. Well I don't know what they're number arrears but I think the estimate about sort of recent study with. Thirty to 50% of flood prone properties the United States are covered -- -- But even that so low percentage. And then they would on -- to say the three quarters of the new policies. Or drop within five years which are really -- comes storming out you know -- you're usually lender requires. -- -- -- -- But in -- many areas it's optional. I think that's gonna change and you know I don't really long term picture of all of them. It would gonna go gonna go out. Dramatically in world gonna get a pretty -- sticker shock especially those that are not in you know but hardly the the Lebanese have been ought to. Are deliberately -- our first reg -- director and a bit more details on this. A lot of you out there even though the but I'm looking in your poor different news reports from one PDF files. And we also one point one million but I would submit. There are tens of thousands or hundreds of thousands here in Louisiana -- probably more then me and young players other than your Jersey. If you've got questions concerns comments give -- call we're guilty as -- 200187. To -- drew 170. -- -- 77 he told 386688. Dollar and zero and it's Arthur. Businesses. Are we we keep hearing one point one million dollar hundred million people that -- agreed. But very little about businesses would very many businesses be affected by and its. A lot -- many businesses are going to be impacted even those businesses that. Are not required to have flood insurance and don't need a picture probably going to be impacted. Those business will be impacted possible I mean there's -- will prepare. So you advocate in this kind of a term that it's like precedent alone it's got a bowl someplace else. And so you know the market as a corporate ample supply and demand what is left of me and for -- product. And the price is Gaudin. When there's more demand for a guy he you know don't need flood insurance here market movement here. It's cheaper -- me that they legacies and despite. And it worked really gonna. Make a huge impact of those those companies that are on the pitch better just barely making it. And they're OK they're they're paying their bill would do okay like. You know it doesn't take much for what should -- Edgar and like true. And that can be severe. I think one of the things that -- probably. Hasn't been well publicized to be honest but that. I was real important to note that that. You know the -- and really first start this Maxine Waters from California it was a classic case -- has built potency what did it. And now it was that she is the biggest advocates were trying to get it reversed. And why she's doing it because of the homeowners in California that are getting horrible whipsawed by the law believe it -- not. The flood insurance rates in San Francisco have -- up like 500%. So she's getting pressure from our constituents not just from the folks we had an apparent. It is in national problem -- -- -- something is going -- Change. -- -- some forgiveness in some arena has but that -- Indy being mere. -- which really needed to tricks. Back to being confused and -- California -- a few more congressional delegates in. New Jersey. Just a little bit more power and money then we. And and this seems to be something about that being laws. -- don't candidate there's that many people that we're talking about flooding in the Rocky Mountains and all of these could be infected with -- being affected. Boy isn't this being just shot dead wrong with political -- They haven't got -- built. How would they get their bills until you know hundreds and Wednesday they just came out just came out the regency which is where -- -- -- 11 in which reported their rate. All 40000 dollars a year. -- be sympathetic to somebody between me and -- but. I and it it's not usual for someone who's been 2100 miles a year ago to 121006. Based on there and it just. So as these new flood maps come region by region by region by region it's it's kind of shaking the yet have a platform of some lawmakers who voted did involve. It's involving every state -- I think it's going to be much it's going to be much more on a -- we will probably gonna -- The canaries in the coal -- because it's so obvious here we had a mr. -- -- coast. And of course what Turkey sandy -- -- -- Atlantic coast. Everybody that somebody else not them. Well it's it's gonna be a lot of people I am very suspicions that it totally -- -- I don't believe that a lot more than. Then that number much more. The stove and make a lot of incidents. And I'm wondering how much this has to do. Number for a large number of Republicans in congress for adopting I'm reading this now. Couple of approach with implementing the flaw on in this as a Republican from Georgia there of their also threatened by her. Fundamental question posed by the insurance reform bill is one of there it is. Pair for every one is it fair for Warren is subsidized insurance of the -- answers simple. Taxpayers. Should not continued to subsidize the flood insurance but those who live in flood prone areas it's not there. The curbs on taxpayers subsidized flood insurance rates or case study as to what happens -- Washington think it's -- government sponsored benefit. That helps -- relatively small group of people. It is this something where -- screamed small government -- and often hard enough that they're saying OK and -- gives. Well I think what artery -- go back in time there was no financial flooded church growth it was private insurers who provided and the cost was extra. And so as a result no one would get it and when floods took place it was a tremendous burden on the national budget for emergency repairs LUP that follows is expanses that go along with these natural disasters. And that's what put -- program. Got shut out. Unfortunately. They -- pricing model never kept placed there kept pace with the actual expenses of these disasters. The point now where in that 25 billion dollars and hole with a they've got bill. And you know it's like it a little bit of an -- Store early days as one but you gotta take you know. I'd get out of it at one part that's pretty tough to swallow and that's kind of where we are right yeah they're trying to get it all back in one big -- -- -- 25 billion in red ink in three and a half a billion pre communion every year there is often bigger. And you can -- many people who you know may be built on some way to pay off their mortgage or they would you know their mortgage properties at a paid off Kerry insurance. They want to you can see many people drop out of flood insurance program with -- so will be even fewer premiums to cop. So and everybody looks at -- -- the healthcare with the band and everybody being. Let me read that -- as. Carlo know -- the buy another house but I can't because I can potentially be able to bring you know if this goes into effect. Is we ought to still the guideline for no blood and cheap venture. Well it's it. In -- not important fast. A lot of -- and every individual property. Needs to be analyzed by competent to insurance agent who really understand what maps. So you can park properties well as a you -- on property column rot that require it. -- -- -- That doesn't necessarily exemption. As a general rule the area is higher -- most of the proper please properties don't require it but. Again it's devil's in the details I would never make that assumption that bad debt broad statement -- I would always do my homework. What one final question and a rebuilt. A put a large number. People here in Louisiana. Abided by upping the rules after crude after there're other occasions we've played -- -- They built them within the guidelines with government told them. And now they're being told that's not enough for world we're gonna escalate your insurance rates -- where you can't really report. Stay in your house afford the insurance or sell. Have you heard of any movement with -- all of these people get together and filed a lawsuit or can you not file a lawsuit against Korean. I think you know trying to girl lost it in a federal agency is he here in Europe -- -- -- -- that you -- mean good look at the corps of engineers you know we will -- The government pretty much exempt from. It's in them out of use or stupidity deliciously unfairness. And day IndyCar. It's totally unfair as somebody epic our agreement to raise their home to a point where -- -- you know. Six into the Bob I don't have a problem again and then they you know. Do you play football they keep moving the goal line. I do you have it's not fair has got the -- set rules. And those people who played by the rules you know what the government. Make them in the government needs to take responsibility. Haven't made -- decision not penalizes people who put -- light blinded and did exact it would cope with it. -- Arthur. -- -- -- drilling will do the show again and hopefully you will close you'll help your minutes thanks for coming. Governor bill -- 7 AM moral 53 at them and we're coming right back and looking at the subject. -- representative. With the -- oh -- that's been actively in Washington petitioning to get this change.