Florida Representatives Debbie Wasserman Schultz (D) and Bill Posey (R) have drafted a bipartisan bill to expand the National Housing Act’s insurance coverage.
Bill H.R.4465 would amend the National Housing Act to authorize insurance of certain mortgages to finance repairs and improvements to condominium projects.
The measure would enable the Federal Housing Administration (FHA) to finance condominium development and repair projects across Florida. The FHA was created in 1934 by the National Housing Act to federally guarantee mortgage insurance and thus subsidize bank loan interests.
Notwithstanding H.R. 4465’ national scope, Florida’s burgeoning coastal real estate market is the focus of Schultz and Posey’s initiative. In effect, records show there are over 171 active new Florida apartment and condominium projects.
Additionally, a study by Statista demonstrates Florida’s residential building construction sector has grown by over 300% in the last decade.
As shown above, projected total revenues for Florida’s construction sector are to reach $43.1 Billion by 2024. Effectively, the new bill intends to strengthen the sector’s assets by providing mortgage insurance covering needed building repairs.
Nonetheless, property insurance presents an ongoing dilemma in Florida. Over recent years, Florida’s crippled insurance market has seen residents flee to public insurance options. Consequently, public insurers, such as Citizens Insurance, have established an unhealthy market hegemony.
However, Florida Governor Ron DeSantis has been leading an effort to restore Florida’s insurance market. Governor DeSantis enacted a flurry of measures to revitalize the industry this past year. Among other goals, the initiatives are designed to combat poor legal structures and antiquated policies plaguing Florida’s insurance regulatory framework.
