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[Federal Register Volume 89, Number 249 (Monday, December 30, 2024)]
[Notices]
[Pages 106551-106553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30936]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6505-N-01]

Request for Information Regarding Resilience Measures and 
Insurance Coverage

AGENCY: Office of Policy Development and Research, Department of 
Housing and Urban Development (HUD).

ACTION: Request for information.

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SUMMARY: Homeowners and housing providers have experienced significant 
increases in property insurance premiums and deductibles in the past 
several years, along with reductions in insurance coverage, added 
requirements, and withdrawals of insurance companies from certain 
markets. In July 2024, HUD convened an insurance summit to address 
challenges in the property insurance market. The insurance summit 
highlighted the need to increase property resilience to natural hazards 
and to clarify the relationship between resilience measures and costs 
to property owners, including the cost of insurance. Through this 
Request for Information (RFI), HUD seeks public input regarding how 
best to assess measures to increase the resilience of residential 
properties to natural hazards and extreme weather. This information 
will allow HUD to develop policies that better support HUD's program 
participants in increasing resilience to natural hazards, including 
extreme weather, and accessing affordable insurance for their 
properties.

DATES: Comment Due Date: February 28, 2025. Late-filed comments will be 
considered to the extent practicable.

ADDRESSES: Interested persons are invited to submit comments responsive 
to this RFI. All submissions must refer to the docket number and title 
of the RFI. Commenters are encouraged to identify the number of the 
specific question or questions to which they are responding. Responses 
should include the name(s) of the person(s) or organization(s) filing 
the comment; however, because any responses received by HUD will be 
publicly available, responses should not include any personally 
identifiable information or confidential commercial information.
    There are two methods for submitting public comments.
    1. Electronic Submission of Comments. Interested persons may submit 
comments electronically through the Federal eRulemaking Portal at 
http://www.regulations.gov.
    2. Submission of Comments by Mail. Comments may be submitted by 
mail to the Regulations Division, Office of General Counsel, Department 
of Housing and Urban Development, 451 7th Street SW, Room 10276, 
Washington, DC 20410-0500. HUD strongly encourages commenters to submit 
their feedback and recommendations electronically. Electronic 
submission of comments allows the commenter maximum time to prepare and 
submit a response, ensures timely receipt by HUD, and enables HUD to 
make comments immediately available to the public. Comments submitted 
electronically through the http://www.regulations.gov website can be 
viewed by other commenters and interested members of the public. 
Commenters should follow the instructions provided on that site to 
submit comments electronically.

    Note: To receive consideration as public comments, comments must 
be submitted through one of the two methods specified above. Again, 
all submissions must refer to the docket number and title of the 
notice.

    No Facsimile Comments. Facsimile (FAX) comments are not acceptable.
    Public Inspection of Public Comments. All comments and 
communications properly submitted to HUD will be available for public 
inspection and copying between 8 a.m. and 5 p.m. weekdays at the above 
address. Due to security measures at the HUD Headquarters building, an 
advance appointment to review the public comments must be scheduled by 
calling the Regulations Division at (202) 708-3055 (this is not a toll-
free number). HUD welcomes and is prepared to receive calls from 
individuals who are deaf or hard of hearing, as well as from 
individuals with speech or communication disabilities. To learn more 
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

FOR FURTHER INFORMATION CONTACT: Todd Richardson, General Deputy 
Assistant Secretary, Office of Policy Development and Research, 
Department of Housing and Urban Development, 451 7th Street SW, Room 
8100, Washington, DC 20410-0500; telephone number 202-402-5706 (this is 
not a toll-free number). HUD welcomes and is prepared to receive calls 
from individuals who are deaf or hard of hearing, as well as 
individuals with speech or communication disabilities. To learn more 
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

SUPPLEMENTARY INFORMATION:

[[Page 106552]]

I. Background

    Homeowners and housing providers have experienced significant 
increases in property insurance premiums and deductibles in the past 
several years, along with reductions in insurance coverage, added 
requirements, and withdrawals of insurance companies from certain 
markets. Increased insurance costs and the unavailability of coverage 
are negatively impacting HUD's program participants, including public 
housing authorities (PHAs), multifamily property owners, and Tribal 
communities, as well as borrowers of FHA insured mortgages. In July 
2024, HUD convened an insurance summit to address challenges in the 
property insurance market. The insurance summit highlighted the need to 
increase property resilience to natural hazards, including extreme 
weather, and to clarify the relationship between resilience measures 
and costs to property owners, including the cost of insurance.
    Increasing insurance costs and lack of insurance availability pose 
unique challenges to HUD's program participants. Unlike owners who 
provide market-rate housing, affordable housing providers generally 
cannot pass their insurance cost increases on to tenants through 
increased rents. Currently, some affordable housing properties faced 
with suddenly higher insurance costs report that they are coping in 
short-term ways, including reducing insurance coverage or cutting back 
on providing services or amenities to cut costs. Owners and PHAs have 
also reported that they may have to resort to delaying capital repairs 
or consider the sale of properties and further consolidation of their 
portfolios. Additionally, financing deals for the development of new 
properties are becoming more difficult to pencil out or close.
    Difficulty obtaining sufficient insurance coverage at a reasonable 
price also affects both new and existing FHA borrowers in all property 
types, including site-built single family, manufactured housing, and 
multifamily housing. For existing FHA borrowers, rising insurance costs 
increase monthly housing expenses, causing financial stress on the 
borrower and affecting their ability to maintain monthly mortgage 
payments. Some cash-strapped borrowers resort to canceling their 
insurance policies, taking them out of compliance with mortgage 
requirements and potentially affecting their ability to receive federal 
assistance in the case of a disaster. In many instances, companies 
simply are not renewing existing insurance policies, leaving consumers 
searching for new, and often more expensive, policies that often 
provide less coverage. Additionally, the lack of affordable and 
available insurance coverage can also make it more challenging for 
individuals to sell their home. For potential borrowers, increasing 
insurance costs may limit affordable housing options or participation 
in the market altogether.
    These challenges are occurring at the same time the nation faces a 
housing supply shortage, and they could further decrease housing 
affordability and availability across the nation.
    Improving resilience measures for properties can reduce their 
damage from natural disasters and extreme weather, and, therefore, 
reduce costs to insurers. HUD's insurance summit highlighted examples 
of state programs such as those in Alabama and Louisiana connecting 
resilience standards to reduced insurance costs. Following the summit, 
HUD is releasing this RFI to better understand the challenges facing 
property owners and determine what more HUD can be doing to promote and 
encourage resilience investments in communities and reduced insurance 
costs for property owners.

II. Purpose of This Request for Information

    The purpose of this RFI is to solicit information regarding 
resilience measures to mitigate damage from natural hazards, including 
extreme weather, to allow HUD to develop policies that better support 
HUD's program participants in increasing resilience and their ability 
to access affordable insurance coverage for their properties.

III. Specific Information Requested

    While HUD welcomes all comments relevant to increasing resilience 
of HUD-supported housing and reducing insurance costs, HUD is 
particularly interested in receiving input from interested parties on 
the questions outlined below.

Single Family and Multifamily Housing, Public Housing and Insurance 
Risk Pools

    Question for comment #1: What are the financial savings (e.g., 
insurance premiums or avoided casualty loss) and other benefits 
associated with modifications to existing single family or multifamily 
properties, including public housing, to mitigate damage from natural 
hazards or increase resilience in the event of a natural hazard? How do 
these savings compare to the costs associated with those modifications? 
Please list modifications and each of their damage mitigation benefits 
as well as financial and time costs. Distinguish by peril type 
(earthquake, hurricane, floods, hail, drought, wildfire, extreme heat, 
landslide, etc.) or geography as appropriate, as well as by building 
and construction type.
    Question for comment #2: What are the financial savings (e.g., 
insurance premiums or avoided casualty loss) and other benefits 
associated with building new construction properties with building and 
design features that mitigate damage from natural hazards or increase 
resilience in the event of a natural hazard? How do these savings 
compare to the costs associated with those features? Please list 
building and design features and each of their damage mitigation 
benefits as well as financial and time costs. Distinguish by peril type 
(earthquake, hurricane, floods, hail, drought, wildfire, extreme heat, 
landslide, etc.) or geography as appropriate, as well as by building 
and construction type.
    Question for comment #3: What data exist around the additional time 
or financial costs, if any, of rebuilding to or above code post-
disaster instead of waiving requirements? Is there information on the 
longer-term costs (e.g., financial or damage-related) related to 
waiving building requirements when rebuilding post-disaster?
    Question for comment #4: Are there local or state statutes, 
regulations, or incentives that help property owners reduce costs or 
save on expenses, including insurance costs, when they invest in 
resilience (e.g., reduced insurance premiums, tax abatements, 
subsidies/discounts)? If possible, please provide data on how 
successful these measures have been in saving on expenses.
    Question for comment #5: Please identify any industry standards 
related to resilience that you have used or referenced in your work. If 
possible, please document where the standard has been applied, at what 
scale, and to what effect.
    Question for comment #6: Are there local, state, or regional 
outreach or education efforts that have been successful in helping 
homeowners and housing providers understand the direct and indirect 
benefits of investing in resilience measures?
    Question for comment #7: What data would be useful for insurers 
(including risk pools) and reinsurers on efforts to mitigate damage 
from natural hazards or increase resilience to natural hazards, such as 
housing elevations, home

[[Page 106553]]

resilience upgrades, and infrastructure improvements?

Tribal Communities

    Question for comment #8: What unique challenges do Tribal 
communities face when implementing housing resilience measures? How can 
HUD support Tribal communities in addressing these challenges?
    Question for comment #9: What partnerships between Tribal 
governments, local authorities, and other organizations exist to 
enhance housing resilience on Tribal lands? Are there ways in which 
these partnerships can be expanded or improved? Please explain and 
provide specific recommendations, successes, and challenges as well as 
any supporting data as applicable.
    Question for comment #10: How can Tribes or organizations in remote 
locations with limited options for resilience investments better access 
or incorporate resilience strategies, resources, or methods? What 
resources can HUD provide in partnership with groups in these areas?
    Question for comment #11: What Traditional Knowledge and Indigenous 
Knowledge about building practices can be integrated with modern 
resilience measures in tribal communities? Please explain and provide 
specific recommendations, as well as any supporting data.

Manufactured Housing

    Question for comment #12: In addition to addressing manufactured 
housing in the above questions where relevant, how else can 
manufactured home resilience be enhanced during all types of natural 
disasters (e.g., hurricanes, floods, earthquakes, wildfires, or 
tornadoes)? Please provide relevant research as well as any supporting 
data as applicable.

Solomon Greene,
Principal Deputy Assistant Secretary.
[FR Doc. 2024-30936 Filed 12-27-24; 8:45 am]
BILLING CODE 4210-67-P
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