Congresswoman Maxine Waters Saves Park Mesa Heights Homeowners from Unnecessary Flood Insurance

Congresswoman Maxine Waters (CA-35) joined Councilmember Bernard Parks and Board of Public Works Commissioner Valerie Shaw today to announce that she helped to successfully resolve a dispute between Park Mesa Heights homeowners and the Federal Emergency Management Administration (FEMA). As a result the homeowners in the area, which is part of the Hyde Park neighborhood in Los Angeles, will not be required to purchase costly flood insurance. 

The Park Mesa Heights area had recently been designated by FEMA as a flood plain for the very first time, but this designation was questionable because the area had never flooded. In addition, FEMA's maps were a departure from the original maps issued in the 1980s, which showed that the area was not prone to flooding. On FEMA's flood map, the area in question is roughly shaped like a half-circle and is generally bounded by Hyde Park Boulevard to the south, 5th Avenue to the west, West Slauson Avenue to the north and Arlington Avenue to the east.

Speaking from a Park Mesa Heights resident's home, Congresswoman Waters said, "I thank Councilmember Bernard Parks for contacting me about this problem and sharing the views of his constituents, who objected to the designation of their neighborhood as a flood zone.  I was immediately concerned because it didn't seem right, and I know that flood insurance is extremely costly for homeowners, especially when they are mandated to purchase it."

Homeowners who are in a flood plain and who have a federally related mortgage loan are required to purchase flood insurance. If they don't purchase it, their mortgage servicer must purchase it for them, often at much higher rates. "Homeowners who don't need flood insurance shouldn't be forced to purchase it.  It is an unnecessary expense and a real burden in these tough economic times," Congresswoman Waters stated.

As Chairwoman of the House Financial Services Subcommittee on Housing and Community Opportunity, which has jurisdiction over the National Flood Insurance Program (NFIP) administered by FEMA, Congresswoman Waters began communications with FEMA in order to understand why the area had been designated as a flood plain and to request FEMA reconsider its decision.

FEMA requested additional data from Los Angeles County and found that there were flaws in the flood map. As a result, FEMA informed the Congresswoman that it would revise its maps so that the area is no longer in the flood plain. In addition, homeowners who purchased flood insurance as a result of the now-revised map will be entitled to a full refund.

"I'm pleased that FEMA took this issue seriously when I raised it, and I thank the agency for responding in a timely manner.  Taking the Park Mesa Heights area out of the flood plain was the appropriate action," Congresswoman Waters said. "This news should come as a relief to the homeowners who contacted my office for help."

Flood insurance reform has long been a priority for Congresswoman Waters. In the last Congress she introduced legislation — which passed the House and Senate — to reform the flood insurance program, legislation which she hopes to move again this year. "Let's be clear," she said, "flood insurance is necessary for millions of Americans. Accurate flood maps are critical for ensuring that those Americans who need flood insurance pay actuarially sound rates. When the maps are wrong, FEMA has a responsibility to take action so that homeowners aren't saddled with an unnecessary expense."

Congresswoman Waters sent a letter to 622 homeowners in Park Mesa Heights informing them that FEMA will no longer classify their homes as being in a flood plain.

The text of the letter follows:

Dear Homeowner,

 I have good news to share with you regarding the recent designation of the Hyde Park/Park Mesa Heights area as a flood plain.

I was recently contacted by Councilman Bernard Parks and several of your neighbors about changes to flood maps issued by the Federal Emergency Management Administration (FEMA). As you know, these maps placed your neighborhood in a flood plain for the very first time. This designation meant that if you are a homeowner with a federally-related mortgage loan (i.e. a loan guaranteed by Fannie Mae or Freddie Mac) you were required to purchase flood insurance from FEMA. If you did not purchase insurance on your own within 45 days, your mortgage servicer is required to purchase it for you, often at a significant cost.

The Subcommittee I chair in Congress—the Financial Services Subcommittee on Housing and Community Opportunity—has jurisdiction over the National Flood Insurance Program (NFIP), which is administered by FEMA. Therefore, since learning of this problem, I have been in contact with FEMA, trying to determine why this designation was made and how the homeowners affected by it could be assisted.

I have been informed by FEMA that they have received additional data from Los Angeles County regarding the Hyde Park area. Based on that data, FEMA admitted that there were flaws in its maps. As a result, FEMA informed me that it is going to revise its maps and take the Hyde Park/Park Mesa Heights area out of the flood plain. If you purchased flood insurance as a result of the new maps, you will be entitled to a full refund.

I am very pleased that FEMA recognized its errors and took quick action to address this situation, which has caused a hardship for many of you.

I know that many of you will have questions about this revision so I would like to invite you and your neighbors to a town hall meeting with FEMA where you can learn first hand about the revision, what it means for you, and other pertinent information. Details about this town hall will be forthcoming.

I hope that you are able to join me for this meeting. I also hope that this news is as pleasing to you as it is to me.

###