NEWS & INFO

BREAKING NEWS

COVID RELIEF PACKAGE DETAILS
DECEMBER 23, 2020
Congress passed the much anticipated COVID relief package on December 22, 2020 and is awaiting the President's signature. The extensive package contains much needed relief for many people, including our members. NAR has pulled the specific highlights that their advocacy team has been working on that directly affect our members and consumers. Here is a breakdown

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2020 Realtor Charity 'Golf' Fundraiser

Even though we were unable to hold our Golf Tournament this year, these  Major Sponsors and Individuals donated their Tournament fees, and more to our deserving charities; Skagit Habitat for Humanity and Friendship House. Thanks to your generosity, we were able to Raise $26,000 for our charities and the Scholarship Fund.   We are so grateful to have such terrific support within our community!
Thanks to our Sponsors and individuals listed below:
       Gold Sponsor:  Homebridge
       Silver Sponsors:  Guardian NW Title, Marathon, Thrivent
       Bronze Sponsors:  Allstate, Regent

Business and Individual Donors:

• Bay Equity
• Tony & Paige Bates
• Blind Hat Productions
• Brown McMillen
• Certified Home Inspection
• Chicago Title
• Susan Cooper
• Country Financial
• Daniel & William Toomey CPA
• Danielle Russell
• Farmers Insurance
• Heritage Bank
• HKP Architects
• Jim & Terri Neilon
• John Jr Piazza Construction
• Judd & Black
• Keller Williams
• Land Title
• Tod Lehecka
• Terry-Jo Norman
• Pederson Group
• Peoples Bank
• Ralley Auto Sales
• RE/MAX Valley Homes
• Mary Scollard
• Simple Box
• The Brickkicker
• Umpqua Bank
• US Bank
• WIN Home Inspection
• Wycoff Insurance

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REVISIONS TO COVID-19 RESTRICTIONS
November 15, 2020
Today, the Governor announced wide ranging restrictions that will go into effect tomorrow, Monday, November 16th through December 14th, to try to curb the surge in new COVID-19 cases in Washington State. Some of these restrictions will impact residential and commercial real estate operations. As of Monday, November 16th:

• All real estate open houses are suspended.
• Professional services should work from home. If you are unable to work from home, those services will be limited to 25% of building occupancy and closed to the general public. 
• Please note that private home showings are still permitted by appointment with no more than five (5) people, in addition to the broker, on site with strict social distancing.

Thank you to all of the real estate practitioners who have followed the Governor's COVID-19 orders and guidance and practicing real estate in a safe manner. Real estate professionals have demonstrated to the public that we can conduct business safely and effectively under these guidelines; now, we will do it again. Our team will continue to work with the Governor's office to help real estate brokers move forward with their business safely.
 
Washington REALTORS® and the Northwest Multiple Listing Service have revised the COVID-19 Real Estate FAQ guidance based on this information:  REVISED COVID-19 REAL ESTATE FAQ

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2021 NPSAR Leadership Announced

2021 NPSAR President: Jim Neilon
RE/MAX Acorn Properties
President-Elect: Camden Schutte
Coldwell 360 Team
Treasurer-Elect: Jodi Dynes
Brown McMillen Real Estate
1-Year Director - Cory Kiehn, Windermere RE Skagit
2-Year Director - Sara Beth Owens, Semanko Realty Group
3-Year Director - Nicole Ganske, Windermere, North Cascades
3-Year Director - Laura Bird, RE/MAX Gateway

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September is REALTOR® Safety Month

NAR is offering a free REALTOR® Safety Webinar,
"Selling Safely: Because it Can Happen to You"
September 23rd, 11am to 12pm.

As we all know, REALTORS® face job-related risks every day. Being aware of potential dangers and taking precautions can help your members avoid risky situations that can happen to any agent--including them.
In this free webinar, Jen Stanbrough, REALTOR®, shares lessons learned since the loss of her close friend and fellow REALTOR®, Ashley Okland, during an open house. She'll discuss the risks agents and brokers face on the job, how to be aware of situational dangers, prepared to keep yourself safe, and avoid risky situations. Jen will also share best habits, tips, and tools all real estate professionals should include in their safety practices.

Register here: Safety Webinars
REALTOR® Safety web banners and social graphics can be found here: Safety Resources for Associations and Brokerages

Download the 2020 REALTOR® Safety Survey here: Member Safety Report

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NPSAR GOLF TOURNEY UPDATE

Due to COVID 19, we were unable to hold this year's Golf Tournament.  Thanks to outstanding support from our sponsors, we are getting close to raising the same amount of money for our charities as we did last year!  We all look forward to this annual golf outing and the business and social aspects it provides.  More importantly it allows the NPSAR community the greatest opportunity for fundraising for our notable local charities and scholarship fund. During this unprecedented pandemic year, the needs of these worthy charities, Friendship House and Habitat for Humanity, are stronger than ever.

The Golf Committee is grateful that many sponsors including our title sponsor, Homebridge, are donating their full sponsorship amount towards this fundraiser.  In addition, an anonymous donor has offered to match up to $5,000 in sponsorship funds!  We are asking our generous golfers and NPSAR members to consider a contribution to these worthy charities as well. Individual and 'office collection' donations are greatly appreciated!
 
We appreciate any assistance you can provide to Friendship House, Habitat for Humanity and Brandon Koetje Scholarship Fund.  Please click the link below or contact the association (360) 416-4902 to make your contribution.
 
Mark your calendar for August 26, 2021 - we look forward to seeing you on the golf course next year.  
 
Thank you,
Erik and Debbie Pedersen
Co-Chairs, NPSAR Golf Committee
360-391-0000

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2nd Quarter Market Report for Skagit & Island Counties

Compiled by:
Jim Neilon, owner of RE/MAX Acorn Properties, Oak Harbor, WA
Scott Friedl, broker with Keller Williams Western Realty, Mount Vernon, WA
Dean Hayes, senior loan officer with Bay Equity Home Loans, Burlington, WA

August 2020
When the stay at home proclamation was issued in March 2020, many were unsure how that would impact the real estate market moving forward. Would potential home buyers continue to want to buy? Would owners still want to sell?
Within two months, the answer became very clear – the housing market is as robust as ever and it continues to move forward. Most sellers are still getting top dollar for their home, and home buyers continue to benefit from low interest rates.
Going into 2020, the housing market around Skagit County and Whidbey Island was particularly strong. According to the North Puget Sound Association of Realtors®, low interest rates were fueling buyers’ ability to purchase homes, and the scant supply of inventory was continuing to push home prices up. Once Coronavirus (COVID-19) hit the area, a good percentage of sellers pulled their home off the market in fear of contracting the disease as buyers tour their homes.
Read the entire report for Skagit County here.
Read the entire report for Island County here.

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2020 REALTOR® Charity Golf Tournament

                     EVENT CANCELLED                             
The REALTOR® Charity Golf Tournament has always been a great opportunity for fellowship, camaraderie, and a real-estate related schmooze-fest, to bring much needed financial assistant to our two major charities: Habitat for Humanity and Friendship House.
It is with great regret that, due to the risk involved, we have chosen to cancel our event this year.
We would like to encourage you to still make a donation to our chosen charities, as they are also struggling this year.
If you have any questions, please contact the NPSAR office.
Thank you to everyone who had already signed up to sponsor this event and to the players!

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REVISED COVID FAQs, INCLUDING PHASE 3  GUIDANCE FOR REAL ESTATE
JUNE 18, 2020
Washington REALTORS® and the Northwest Multiple Listing Service have revised the FAQ guidance to include information for Phases 1, 1.5, 2, and 3 for real estate activities based on the latest information from the Governor's office. Please review the downloadable PDF or FAQ site for clarification on which activities are permitted and the protocols required for permitted activities.  
 
If you have questions on this, or any other real estate legal question, email LegalHotline@warealtor.org. The Legal Hotline is a Washington REALTOR® member-only benefit.

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PHASE 2 GUIDANCE FOR REAL ESTATE

           Phase 2 Real Estate: COVID-19 Requirements 
Office of Governor Inslee
May 19, 2020
Safety and Health Requirements:
All real estate brokers, firms, independent contractors and industry partners operating during Phase 2 have a general obligation to keep a safe and healthy facility in accordance with state and federal law, and comply with the following COVID-19 worksite-specific safety practices, as outlined in Governor Jay Inslee’s “Stay Home, Stay Healthy” Proclamation 20-25, and in accordance with the Washington State Department of Labor & Industries General Requirements and Prevention Ideas for Workplaces and the Washington State Department of Health Workplace and Employer Resources & Recommendations.
Read or download the Real Estate Guidelines PDF here.

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COVID-19 (Coronavirus) Press Release
                            Island County, Washington
05/20/2020
On May 19, Governor Inslee announced that Island County is now eligible to submit a variance application for entrance into Phase 2 of the Safe Start recovery plan. The Island County Board of Health immediately initiated the Phase 2 variance application process on May 19 through discussion of eligibility criteria set forth by the Governor. 
On May 19, Island County’s Health Officer Dr. Joel McCullough submitted a letter of recommendation to apply for a variance to move to Phase 2. The Island County Board of Health voted unanimously on May 20 to approve the recommendation to move to Phase 2, excluding camping and with the requirement that all reopening guidance is followed. The Island County Board of County Commissioners approved the Board of Health’s proposed plan.

Island County Public Health staff are working diligently to compile the application materials for submission to the Washington State Secretary of Health.
For additional information:
Island County Public Health – www.islandcountywa.gov/Health/Pages/COVID-19.aspx
Call Center # 360.678.2301, Mondays through Fridays (8:00am – 4:30pm), Saturdays and Sundays (9:00am – 4:00pm)
WA State Coronavirus Response (COVID-19) – https://coronavirus.wa.gov/

The latest information regarding the PUA, the Phased reopening and what it means to Realtors, and links to important and useful information below:
Challenge Seattle – Covid-19 Resources: https://www.challengeseattle.com/
Back to Work Toolkit: https://www.backtoworktoolkit.com/
COVID-19 Office Procedures and Protocol: https://tinyurl.com/ycwulapu
Managing Stress, Fear & Anxiety: https://tinyurl.com/NPSAR-Mental-Health

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                   GOVERNOR ANNOUNCES 4 PHASE APPROACH -
                       WHAT DOES THIS MEAN FOR REALTORS®?
On Friday, May 1st Governor Inslee announced an extension of the “Stay Home, Stay Healthy” order to May 31st and laid out a phased approach to re-opening the State economy. Phase 1 begins Tuesday, May 5th. Please note that this does not affect the modifications that were made to the original Stay Home, Stay Healthy order that allow certain real estate activities to take place. 
Phase 2 businesses will include all other real estate activity including commercial real estate, the re-opening of real estate offices, and services such as sign installation. Phase 2 also allows gatherings outside your residence for up to 5 people, which presumably would apply to parts of the real estate transaction such as showings, appraisals notarizations, etc. The Governor’s phased-in plan will apply in counties that have been harder hit by COVID-19. The 10 counties that have not been as impacted by the virus will be allowed to apply for waivers that will let them open up faster (see KING5 story for summary).

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Are REALTORS® eligible to receive PUA?
Yes. REALTORS® who are independent contractors or
self-employed are eligible to receive PUA. Whether or
not an individual REALTOR® will receive PUA benefits
depends on each person’s circumstances, including
how much a person works and how much income
they have from real estate brokerage and other
work. The end of this document includes examples
of how real estate income must be reported to the
ESD and factored into any PUA benefit amount.
Download the Full PDF

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Gov. Jay Inslee announced today a partial re-opening of some outdoor recreation activities.
As of Tuesday, May 5, some outdoor recreation will be allowed with appropriate safety precautions, including: fishing; hunting; playing golf; and day use at state parks, state public lands managed by the Department of Natural Resources and at state Fish and Wildlife areas.
“Outdoor recreation is one of the best things we can do to promote physical, mental and emotional well-being for Washingtonians during a time of great stress and isolation," Inslee said. "And springtime in our state is Washington at its best and people want to be out enjoying outdoor activities in a safe and responsible way.
“If we see a sharp uptake in the number of people who are getting sick or are not following appropriate steps, then we won’t hesitate to scale this back again. This is not a return to normal. This is only a beginning phase of relaxing outdoor recreation restrictions.”
Public gatherings, events, team sports and camping, among other things, are not resuming at this time.
Read the full plan on the governor's Medium page. 

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Governor Jay Inslee
April 21, 2020
    Inslee Announces Washington’s COVID-19 Recovery Plan
Gov. Jay Inslee spoke directly to Washingtonians Tuesday evening to lay out his vision for the eventual safe return to public life amid the COVID-19 outbreak.
Inslee said it is unlikely many restrictions under the “Stay Home, Stay Healthy” order will be modified before May 4. Rather, this plan is intended to be a framework for the loosening of restrictions contingent on a steady decrease of the spread of COVID-19.
It will look more like a turn of the dial than a flip of the switch,” Inslee said in the address. “We’re going to take steps and then monitor to see whether they work or if we must continue to adapt.”
Depending on health projections for the spread of the virus, some distancing restrictions may be in place for weeks or months to come.
“In the coming days, we will receive additional health modeling projecting the course of this virus,” Inslee said. “We hope it will give us cause to begin lifting certain restrictions.”
The return to public life will occur in measured steps. It will be guided by science and informed by our public health needs, our ability to mitigate impacts, and the response of Washington communities.
Read the rest of the plan on the governor's Medium page.

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SENATE PASSES $2 TRILLION PACKAGE
The Senate passed a $2 Trillion Aid Package last night. The bill goes to the U.S. House and then to the President. This bill is significant in that it contains provisions for the self-employed and independent contractors. Read the latest update from NAR

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LEGAL HOTLINE LAWYER ANNIE FITZSIMMONS
& NWMLS LEGAL COUNSEL JUSTIN HAAG
March 26, 2020
WR Legal Hotline Lawyer Annie Fitzsimmons and NWMLS Legal Counsel Justin Haag have put together this list of frequently asked questions to help us all understand how Governor Inslee's “Stay Home, Stay Healthy” emergency order impacts real estate brokers and related professionals.Contrary to rumors, real estate has not been "shut down" but is working in limited capacity for the next two weeks as mandated by Governor Inslee. Real estate professionals are working to facilitate the 17,000 transactions currently in the pipeline and some of these questions may clarify what REALTORS® can and cannot do, as well as address some of the related industries we all rely upon to close a transaction. Washington REALTORS® has been working with the cabinet-level staff within the Governor's office but the Governor's order remains very clear about certain things. Please review the list of FAQs  and if you have further questions, email comment@warealtor.org.

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WHAT THE GOVERNOR'S EMERGENCY ORDER MEANS FOR REALTORS®
by Kitty Wallace, WR President | Mar 23, 2020
As you are likely aware, this evening Governor Inslee issued a statewide “Stay Home, Stay Healthy” emergency order to further limit the spread of the COVID-19 virus.

The order will be effective for at least two weeks, and requires that people remain in-home, except for certain necessary personal activities like grocery shopping or obtaining health care. The order also designates specific “Essential Critical Infrastructure” operations that are not subject to the order but must observe social distancing, based largely on recent federal guidelines from the Department of Homeland Security.
The Governor’s release states “Business closures must happen 48 hours after Gov. Inslee signs the order. Many businesses can, and should, continue using telework.”
Real estate businesses are not included in the “Essential Critical Infrastructure” designation, but can remain in operation using electronic and remote functions.

While we are disappointed that our request to be included in this designation was denied, Washington REALTORS® remains in ongoing communication with the Governor’s Office and state agencies to ensure that real estate and associated business services can continue in operation. We will seek clarification of the Order and necessary flexibility so that real estate operations can continue while observing the Governor’s Order and social distancing guidelines. For example, immediately after announcing the Order, the Governor’s Office communicated to us that escrow services can likely continue as a necessary financial service.
The Governor’s Office has also committed to appoint a member of his staff to work with us to address consumer and industry impacts.  We need input from REALTORS® as to the most critical issues facing you and your clients over these next few weeks – such as ensuring that sales now under contract can close, and additional steps to enable remote and electronic real estate services.
Please send us your thoughts on the most critical issues to address, via email at comment@warealtor.org.
This information is based on preliminary review of the Order, and will likely be modified as additional clarification occurs. Washington REALTORS® deeply appreciates the innovation, leadership, and compassion being demonstrated by our members during this difficult time. Look for more information tomorrow morning.
 
Kitty Wallace, WR President
Steve Francks, WR CEO

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Gold Award Recipients: (top) Elizabeth Miller, Jan Ellingson, Shawn Danley, Kelli Lang, Leah Courage, Gina Davis, John Prosser, Mel Foley, Kyle Brown, Bob Hyde, Erik Pedersen, SaraBeth Owens, Shalyce Pocock, Kristine Stultz. (bottom) Megan O'Bryan, Stacy LaCount, Karen Everett, Debbie Macy, Nicole Haun, Dominic Pettruzzelli, Paul Weisz. (Not pictured: Becky Elde, Scott Friedl)

Silver Award Recipients: Laura Kaestner, Sara Fish, Linda Eastman, Spencer Roozen, Stacy Anderson, Rodney Helgeson, Charlene Janz, Scott Farley, Terry-Jo Norman, Chad Paulsen, Bobby Wakeland. (Not pictured: Jeff Ingman)

Bronze Award Recipients: (Top Row) Ivana Wood, Jackie Stone, Elva Hunter, Jones Atterberry, Adam Baldwin, Tara Crabtree, Karen Petersen, DiAnn Sager, Christine Mays, Ron Wortham. (Bottom Row) Kristin Tuttle, Wendy Belanger, Halsey Johns, Laura Bird, Jodi Dynes. (Not Pictured: Carla Fischer, Holly Hilts)

2019 Installation and Awards Banquet

Thank you to our wonderful sponsors for making this a special night each year!
Gold Sponsors:  Chicago Title Company
                                Farmers Ins, Mike Gubrud Agency
Silver Sponsors: Keller Williams Western Realty
                                Umpqua Bank
                                WIN Home Inspection
Dessert Sponsor: The Real Estate Book
Toast Sponsor: Homebridge Financial

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Thank you to all who supported and participated in this year's NPSAR Charity Golf Tournament on Aug 15th by sponsoring, playing, or volunteering!
We are always proud and excited to support two great community programs; Skagit Habitat for Humanity and Friendship House, and also benefit our annual Brandon Koetje and George Koetje Scholarships.
                  We look forward to seeing all of you next summer!

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FHA Issues New Condominium                                                 
Approval Rule

WASHINGTON - In an effort to promote affordable and sustainable homeownership, especially among credit-worthy first-time buyers, the Federal Housing Administration (FHA) today published a long-awaited final regulation, and policy implementation guidance, which establish a new condominium approval process.

FHA ISSUES NEW CONDOMINIUM APPROVAL RULE
Comprehensive policy revisions include ability to approve individual units in nonapproved condo projects
WASHINGTON - In an effort to promote affordable and sustainable homeownership, especially among credit-worthy first-time buyers, the Federal Housing Administration (FHA) today published a long-awaited final regulation, and policy implementation guidance, which establish a new condominium approval process.
Designed to be flexible and responsive to market conditions, FHA's new condo rule and the new Condominium Project Approval section of the Single Family Housing Policy Handbook, provide a comprehensive revision to FHA condominium project approval policy.  In particular, the new policy will allow certain individual condominium units to be eligible for FHA mortgage insurance even if the condominium project is not FHA approved. The polices become effective October 15, 2019. Read FHA's new condominium approval regulation.
FHA's new condominium policy is part of a broader Administration objective to reduce regulatory barriers that currently restrict affordable homeownership opportunities. FHA's new rule:

• Introduces a new single-unit approval process to make it easier for individual condominium units to be eligible for FHA-insured financing;
• Extends the recertification requirement for approved condominium projects from two to three years;
• Allows more mixed-use projects to be eligible for FHA insurance.

“Condominiums have increasingly become a source of affordable, sustainable homeownership for many families and it's critical that FHA be there to help them,” said U.S. Housing and Urban Development Secretary Ben Carson. “Today, we take an important step to open more doors to homeownership for younger, first-time American buyers as well as seniors hoping to age-in-place.”
HUD Acting Deputy Secretary and FHA Commissioner Brian Montgomery added, “Today we are making certain FHA responds to what the market is telling us. This new rule allows FHA to meet its core mission to support eligible borrowers who are ready for homeownership and are most likely to enter the market with the purchase of a condominium.”
The vast majority (84 percent) of FHA-insured condo buyers have never owned a home before. While there are more than 150,000 condominium projects in the U.S., only 6.5 percent are approved to participate in FHA's mortgage insurance programs.  As a result of FHA's new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually.
Single Family Policy Handbook Guidance
FHA's new Single Family Handbook sections published today provide the additional requirements that lenders and other industry participants need in order to implement FHA's new policy, including requirements for single-unit approvals, minimum owner occupancy requirements, and commercial/non-residential space limits. Read FHA's changes to its Single Family Handbook.
Single-Unit Approvals
As of October 15, FHA will insure mortgages for selected condominium units in projects that are not currently approved.  An individual unit may be eligible for Single-Unit Approval under the following conditions:

• The individual condominium unit is located in a completed project that is not approved;
• For condominium projects with 10 or more units, no more than 10 percent of individual condo units can be FHA-insured; and projects with fewer than 10 units may have no more than two FHA-insured units.

Minimum Owner-Occupancy Requirements
FHA will require that approved condominium projects have a minimum of 50 percent of the units occupied by owners for most projects.
FHA Insurance Concentration in Condominium Projects
FHA will only insure up to 50 percent of the total number of units in an approved condominium project.
Commercial/Nonresidential Space Limits
FHA will require that the commercial/non-residential space within an approved condominium project not exceed 35 percent of the project's total floor area.
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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
More information about HUD and its programs is available on the Internet
at www.hud.gov and https://espanol.hud.gov.

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Tax Deductions for Homeowners:    How the New Tax Law Affects Mortgage Interest

Tax season is upon us once again, and to make it even more interesting this year, the tax code has changed — along with the rules about tax deductions for homeowners. The biggest change? Many homeowners who used to write off their property taxes and the interest they pay their mortgage will no longer be able to. Stay calm. This doesn’t automatically mean your taxes are going up. Here’s a roundup of the rules that will affect homeowners — and how big of a change to expect.

Related: Are Closing Costs Tax Deductible?

Standard Deduction: Big Change
The standard deduction, that amount everyone gets, whether they have actual deductions or not, nearly doubled under the new law. It’s now $24,000 for married, joint-filing couples (up from $13,000). It’s $18,000 for heads of household (up from $9,550). And $12,000 for singles (up from $6,500).
Many more people will now get a better deal taking the standard than they would with their itemizable write-offs.
For perspective, the number of homeowners who will be able to deduct their mortgage interest under the new rules will fall from around 32 million to about 14 million, the federal government says. That’s about a 56% drop.
So will you be able to itemize, or will you be in standard deduction land? This calculator can give you an estimate.
If the answer is standard deduction, you’ll be pleased to know that tax forms are easier when you don’t itemize, says Liddiard. Find instructions for IRS Form 1040 here.

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The 2018 Installations & Awards Banquet

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From the Desk of Ron Wortham
NPSAR Government Affairs Director
          The National Flood Insurance Program (NFIP) 
Without Congressional action, the National Flood Insurance Program (NFIP) will lapse at midnight on Friday, November 30, 2018.  NAR is making every effort to secure a long-term reauthorization before then.  Here are the answers to some frequently asked questions.

What are the prospects for an extension?
All early indications point to an on-time extension of the NFIP. Congressional leaders are engaged. Legislation to extend the program has been introduced, and there are multiple pathways to passage before November 30th. All previous extensions were on time or within a few days of the deadline minimizing the market impacts.

Why is it taking so long?
This is not a simple up-and-down vote on an extension bill by itself. Rather, the extension is expected to be attached to a broader legislative vehicle, possibly the Omnibus bill to fund the government. Because there are multiple moving parts, discussions have been on-going, and no decisions are likely to be made until closer to the deadline.

What is NAR doing?

• NAR is in regular communication with Congressional leaders.
• NAR is coordinating with a broad coalition of industry groups. Read our most recent coalition letter.
• Hundreds of members of Congress have been contacted about the importance of NFIP since August.
• NAR has raised the profile of the issue with multiple calls for action, talking points, op-eds and paid ads.
• Click here for the latest example of the heightened coverage the press is giving this issue.
• Attached is an advanced copy of President Smaby's Op-Ed soon to be published in The Hill newspaper, which is read by many members of Congress and their staff.

What happens next?
NAR will continue to closely monitor the situation and is prepared to escalate our grassroots efforts if it becomes necessary.  We should know more on Monday, November 26th.

What happens during a lapse?
The NFIP cannot sell or renew flood insurance policies. The NFIP can pay claims as long as funds are available, but may not borrow more from the U.S. Treasury. The federal requirement to purchase flood insurance is also suspended during a lapse, which means it is entirely up to lenders to decide whether to make loans in special flood hazard areas while flood insurance is not available from the NFIP.

What about my client's flood insurance?

• Existing NFIP policies will remain in effect until their expiration date (which is the renewal date plus a 30-day grace period), and claims will continue to be paid as long as FEMA has the funds on hand.
• Existing policies may also be "assigned" to/assumed by property buyers during a lapse (see p. 3 here).
• Renewal policies are generally issued as long as the application is received prior to a lapse and the premium is received within the 30-day grace period. Other renewals must wait for reauthorization.
• Private flood insurance backed by a source other than NFIP (e.g., Lloyd's of London) are not affected by a lapse. Click here and here for some options.
• During a lapse, some lenders may opt to make special-flood-hazard-area loans without NFIP insurance, but they must be willing to bear the full risk of their decision and few do in NAR's experience.

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Austin Perez  
Senior Policy Representative | Advocacy 
NATIONAL ASSOCIATION OF REALTORS® | Washington DC 
Office: 202.383.1046

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