[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1682 Introduced in House (IH)]

110th CONGRESS
  1st Session
                                H. R. 1682

   To restore the financial solvency of the national flood insurance 
                    program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 26, 2007

Mr. Frank of Massachusetts (for himself, Mrs. Biggert, Mr. Blumenauer, 
    Ms. Waters, Mr. Taylor, Ms. Matsui, Mr. Mahoney of Florida, Ms. 
Wasserman Schultz, Mr. Baker, Mr. Gary G. Miller of California, Mrs. Jo 
Ann Davis of Virginia, and Ms. Ginny Brown-Waite of Florida) introduced 
 the following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
   To restore the financial solvency of the national flood insurance 
                    program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Flood Insurance 
Reform and Modernization Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Study regarding status of pre-firm properties and mandatory 
                            purchase requirement for natural 100-year 
                            floodplain and non-federally related loans.
Sec. 4. Phase-in of actuarial rates for nonresidential properties and 
                            non-primary residences.
Sec. 5. Exception to waiting period for effective date of policies.
Sec. 6. Enforcement.
Sec. 7. Maximum coverage limits.
Sec. 8. Coverage for additional living expenses, basement improvements, 
                            business interruption, and replacement cost 
                            of contents.
Sec. 9. Notification to tenants of availability of contents insurance.
Sec. 10. Increase in annual limitation on premium increases.
Sec. 11. Increase in borrowing authority.
Sec. 12. FEMA participation in State disaster claims mediation 
                            programs.
Sec. 13. FEMA annual report on insurance program.
Sec. 14. Flood insurance outreach grants.
Sec. 15. Grants for direct funding of mitigation activities for 
                            individual repetitive claims properties.
Sec. 16. Extension of pilot program for mitigation of severe repetitive 
                            loss properties.
Sec. 17. Flood mitigation assistance program.
Sec. 18. GAO study of methods to increase flood insurance program 
                            participation by low-income families.
Sec. 19. Notice of availability of flood insurance and escrow in RESPA 
                            good faith estimate.
Sec. 20. Reiteration of FEMA responsibilities under 2004 Reform Act.
Sec. 21. Ongoing modernization of flood maps and elevation standards.
Sec. 22. Notification and appeal of map changes; notification of 
                            establishment of flood elevations.
Sec. 23. Clarification of replacement cost provisions, forms, and 
                            policy language.
Sec. 24. Authorization of additional FEMA staff.
Sec. 25. Extension of deadline for filing proof of loss.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) flooding has been shown to occur in all 50 States, the 
        District of Columbia, and in all territories and possessions of 
        the United States;
            (2) the national flood insurance program (NFIP) is the only 
        affordable and reliable source of insurance to protect against 
        flood losses;
            (3) the aggregate amount of the flood insurance claims 
        resulting from Hurricane Katrina, Hurricane Rita, and other 
        events has exceeded the aggregate amount of all claims 
        previously paid in the history of the national flood insurance 
        program, requiring a significant increase in the program's 
        borrowing authority;
            (4) flood insurance policyholders have a legitimate 
        expectation that they will receive fair and timely compensation 
        for losses covered under their policies;
            (5) substantial flooding has occurred, and will likely 
        occur again, outside the areas designated by the Federal 
        Emergency Management Agency (FEMA) as high-risk flood hazard 
        areas;
            (6) properties located in low- to moderate-risk areas are 
        eligible to purchase flood insurance policies with premiums as 
        low as $112 a year;
            (7) about 450,000 vacation homes, second homes, and 
        commercial properties are subsidized and are not paying 
        actuarially sound rates for flood insurance;
            (8) phasing out subsidies currently extended to vacation 
        homes, second homes, and commercial properties would result in 
        estimated average annual savings to the taxpayers of the United 
        States and the national flood insurance program of 
        $335,000,000;
            (9) the maximum coverage limits for flood insurance 
        policies should be increased to reflect inflation and the 
        increased cost of housing;
            (10) significant reforms to the national flood insurance 
        program required in the Bunning-Bereuter-Blumenauer Flood 
        Insurance Reform Act of 2004 have yet to be implemented; and
            (11) in addition to reforms required in the Bunning-
        Bereuter-Blumenauer Flood Insurance Reform Act of 2004, the 
        national flood insurance program requires a modernized and 
        updated administrative model to ensure that the program is 
        solvent and the people of the United States have continued 
        access to flood insurance.
    (b) Purposes.--The purposes of this Act are--
            (1) to protect the integrity of the national flood 
        insurance program by fully funding existing legal obligations 
        expected by existing policyholders who have paid policy 
        premiums in return for flood insurance coverage and to pay debt 
        service on funds borrowed by the NFIP;
            (2) to increase incentives for homeowners and communities 
        to participate in the national flood insurance program and to 
        improve oversight to ensure better accountability of the NFIP 
        and FEMA; and
            (3) to increase awareness of homeowners of flood risks and 
        improve the quality of information regarding such risks 
        provided to homeowners.

SEC. 3. STUDY REGARDING STATUS OF PRE-FIRM PROPERTIES AND MANDATORY 
              PURCHASE REQUIREMENT FOR NATURAL 100-YEAR FLOODPLAIN AND 
              NON-FEDERALLY RELATED LOANS.

    (a) In General.--The Comptroller General shall conduct a study as 
follows:
            (1) Pre-firm properties.--The study shall determine the 
        status of the national flood insurance program, as of the date 
        of the enactment of this Act, with respect to the provision of 
        flood insurance coverage for pre-FIRM properties (as such term 
        is defined in section 578(b) of the National Flood Insurance 
        Reform Act of 1994 (42 U.S.C. 4014 note)), which shall include 
        determinations of--
                    (A) the number of pre-FIRM properties for which 
                coverage is provided and the extent of such coverage;
                    (B) the cost of providing coverage for such pre-
                FIRM properties to the national flood insurance 
                program;
                    (C) the anticipated rate at which such pre-FIRM 
                properties will cease to be covered under the program; 
                and
                    (D) the effects that implementation of the Bunning-
                Bereuter-Blumenauer Flood Insurance Reform Act of 2004 
                will have on the national flood insurance program 
                generally and on coverage of pre-FIRM properties under 
                the program.
            (2) Mandatory purchase requirement for natural 100-year 
        floodplain.--The study shall assess the impact, effectiveness, 
        and feasibility of amending the provisions of the Flood 
        Disaster Protection Act of 1973 regarding the properties that 
        are subject to the mandatory flood insurance coverage purchase 
        requirements under such Act to extend such requirements to 
        properties located in any area that would be designated as an 
        area having special flood hazards but for the existence of a 
        structural flood protection system, and shall determine--
                    (A) the regulatory, financial and economic impacts 
                of extending such mandatory purchase requirements on 
                the costs of homeownership, the actuarial soundness of 
                the national flood insurance program, the Federal 
                Emergency Management Agency, local communities, 
                insurance companies, and local land use;
                    (B) the effectiveness of extending such mandatory 
                purchase requirements in protecting homeowners from 
                financial loss and in protecting the financial 
                soundness of the national flood insurance program; and
                    (C) any impact on lenders of complying with or 
                enforcing such extended mandatory requirements.
            (3) Mandatory purchase requirement for non-federally 
        related loans.--The study shall assess the impact, 
        effectiveness, and feasibility of, and basis under the 
        Constitution of the United States for, amending the provisions 
        of the Flood Disaster Protection Act of 1973 regarding the 
        properties that are subject to the mandatory flood insurance 
        coverage purchase requirements under such Act to extend such 
        requirements to any property that is located in any area having 
        special flood hazards and which secures the repayment of a loan 
        that is not described in paragraph (1), (2), or (3) of section 
        102(b) of such Act, and shall determine how best to administer 
        and enforce such a requirement, taking into consideration other 
        insurance purchase requirements under Federal and State law.
    (b) Report.--The Comptroller General shall submit a report to the 
Congress regarding the results and conclusions of the study under this 
subsection not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act.

SEC. 4. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDENTIAL PROPERTIES AND 
              NON-PRIMARY RESIDENCES.

    (a) In General.--Section 1308(c) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4015(c)) is amended--
            (1) by redesignating paragraph (2) as paragraph (4); and
            (2) by inserting after paragraph (1) the following new 
        paragraphs:
            ``(2) Nonresidential properties.--Any nonresidential 
        property.
            ``(3) Non-primary residences.--Any residential property 
        that is not the primary residence of an individual.''.
    (b) Technical Amendments.--Section 1308 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015) is amended--
            (1) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``the limitations provided under paragraphs 
                (1) and (2)'' and inserting ``subsection (e)''; and
                    (B) in paragraph (1), by striking ``, except'' and 
                all that follows through ``subsection (e)''; and
            (2) in subsection (e), by striking ``paragraph (2) or (3)'' 
        and inserting ``paragraph (4)''.
    (c) Effective Date and Transition.--
            (1) Effective date.--The amendments made by subsections (a) 
        and (b) shall apply beginning on January 1, 2011, except as 
        provided in paragraph (2) of this subsection.
            (2) Transition for properties covered by flood insurance 
        upon effective date.--
                    (A) Increase of rates over time.--In the case of 
                any property described in paragraph (2) or (3) of 
                section 1308(c) of the National Flood Insurance Act of 
                1968, as amended by subsection (a) of this section, 
                that, as of the effective date under paragraph (1) of 
                this subsection, is covered under a policy for flood 
                insurance made available under the national flood 
                insurance program for which the chargeable premium 
                rates are less than the applicable estimated risk 
                premium rate under section 1307(a)(1) for the area in 
                which the property is located, the Director of the 
                Federal Emergency Management Agency shall increase the 
                chargeable premium rates for such property over time to 
                such applicable estimated risk premium rate under 
                section 1307(a)(1).
                    (B) Annual increase.--Such increase shall be made 
                by increasing the chargeable premium rates for the 
                property (after application of any increase in the 
                premium rates otherwise applicable to such property) 
                once during the 12-month period that begins upon the 
                effective date under paragraph (1) of this subsection 
                and once every 12 months thereafter until such increase 
                is accomplished, by the following amount (or such 
                lesser amount as may be necessary so that the 
                chargeable rate does not exceed such applicable 
                estimated risk premium rate):
                            (i) Nonresidential properties.--In the case 
                        of any property described in such section 
                        1308(c)(2), 20 percent.
                            (ii) Non-primary residences.--In the case 
                        of any property described in such section 
                        1308(c)(3), 25 percent.
                    (C) Full actuarial rates.-- The provisions of 
                paragraphs (2) and (3) of such section 1308(c) shall 
                apply to such a property upon the accomplishment of the 
                increase under this paragraph and thereafter.

SEC. 5. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE DATE OF POLICIES.

    Section 1306(c)(2)(A) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4013(c)(2)(A)) is amended by inserting before the semicolon 
the following: ``or is in connection with the purchase or other 
transfer of the property for which the coverage is provided (regardless 
of whether a loan is involved in the purchase or transfer transaction), 
but only when such initial purchase of coverage is made not later 30 
days after such making, increasing, extension, or renewal of the loan 
or not later than 30 days after such purchase or other transfer of the 
property, as applicable''.

SEC. 6. ENFORCEMENT.

    Section 102(f) of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a(f)) is amended--
            (1) in paragraph (5)--
                    (A) in the first sentence, by striking ``$350'' and 
                inserting ``$2,000''; and
                    (B) in the last sentence, by striking ``$100,000'' 
                and inserting ``$1,000,000; except that such limitation 
                shall not apply to a regulated lending institution or 
                enterprise for a calendar year if, in any three (or 
                more) of the five calendar years immediately preceding 
                such calendar year, the total amount of penalties 
                assessed under this subsection against such lending 
                institution or enterprise was $1,000,000''; and
            (2) in paragraph (6), by adding after the period at the end 
        the following: ``No penalty may be imposed under this 
        subsection on a regulated lending institution or enterprise 
        that has made a good faith effort to comply with the 
        requirements of the provisions referred to in paragraph (2) or 
        for any non-material violation of such requirements.''.

SEC. 7. MAXIMUM COVERAGE LIMITS.

    Subsection (b) of section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013(b)) is amended--
            (1) in paragraph (2), by striking ``$250,000'' and 
        inserting ``$335,000'';
            (2) in paragraph (3), by striking ``$100,000'' and 
        inserting ``$135,000''; and
            (3) in paragraph (4), by striking ``$500,000'' each place 
        such term appears and inserting ``$670,000''.

SEC. 8. COVERAGE FOR ADDITIONAL LIVING EXPENSES, BASEMENT IMPROVEMENTS, 
              BUSINESS INTERRUPTION, AND REPLACEMENT COST OF CONTENTS.

    Subsection (b) of section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5)--
                    (A) by inserting ``pursuant to paragraph (2), (3), 
                or (4)'' after ``any flood insurance coverage''; and
                    (B) by striking the period at the end and inserting 
                a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(6) in the case of any residential property, each renewal 
        or new contract for flood insurance coverage shall provide not 
        less than $1,000 aggregate liability per dwelling unit for any 
        necessary increases in living expenses incurred by the insured 
        when losses from a flood make the residence unfit to live in, 
        which coverage shall be available only at chargeable rates that 
        are not less than the estimated premium rates for such coverage 
        determined in accordance with section 1307(a)(1);
            ``(7) in the case of any residential property, optional 
        coverage for additional living expenses described in paragraph 
        (6) shall be made available to every insured upon renewal and 
        every applicant in excess of the limits provided in paragraph 
        (6) in such amounts and at such rates as the Director shall 
        establish, except that such chargeable rates shall not be less 
        than the estimated premium rates for such coverage determined 
        in accordance with section 1307(a)(1);
            ``(8) in the case of any residential property, optional 
        coverage for losses, resulting from floods, to improvements and 
        personal property located in basements, crawl spaces, and other 
        enclosed areas under buildings that are not covered by primary 
        flood insurance coverage under this title, shall be made 
        available to every insured upon renewal and every applicant, 
        except that such coverage shall be made available only at 
        chargeable rates that are not less than the estimated premium 
        rates for such coverage determined in accordance with section 
        1307(a)(1);
            ``(9) in the case of any commercial property, optional 
        coverage for losses resulting from any partial or total 
        interruption of the insured's business caused by damage to, or 
        loss of, such property from a flood shall be made available to 
        every insured upon renewal and every applicant, except that--
                    ``(A) for purposes of such coverage, losses shall 
                be determined based on the profits the covered business 
                would have earned, based on previous financial records, 
                had the flood not occurred; and
                    ``(B) such coverage shall be made available only at 
                chargeable rates that are not less than the estimated 
                premium rates for such coverage determined in 
                accordance with section 1307(a)(1); and
            ``(10) in the case of any residential property and any 
        commercial property, optional coverage for the full replacement 
        costs of any contents related to the structure that exceed the 
        limits of coverage otherwise provided in this subsection shall 
        be made available to every insured upon renewal and every 
        applicant, except that such coverage shall be made available 
        only at chargeable rates that are not less than the estimated 
        premium rates for such coverage determined in accordance with 
        section 1307(a)(1).''.

SEC. 9. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS INSURANCE.

    The National Flood Insurance Act of 1968 is amended by inserting 
after section 1308 (42 U.S.C. 4015) the following new section:

``SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS 
              INSURANCE.

    ``(a) In General.--The Director shall, upon entering into a 
contract for flood insurance coverage under this title for any property 
located in an area having special flood hazards--
            ``(1) provide to the insured sufficient copies of the 
        notice developed pursuant to subsection (b) to provide for 
        distribution of a copy of such notice to each tenant of the 
        property; and
            ``(2) strongly encourage the insured to provide a copy to 
        each such tenant and to each new tenant upon commencement of 
        such a tenancy.
    ``(b) Notice.--Notice to a tenant of a property in accordance with 
this subsection is written notice that clearly informs a tenant--
            ``(1) that the property is located in an area having 
        special flood hazards;
            ``(2) that flood insurance coverage is available under the 
        national flood insurance program under this title for contents 
        of the unit or structure leased by the tenant;
            ``(3) of the maximum amount of such coverage for contents 
        available under this title at that time; and
            ``(4) of where to obtain information regarding how to 
        obtain such coverage, including a telephone number, mailing 
        address, and location on the World Wide Web of the Director 
        where such information is available.''.

SEC. 10. INCREASE IN ANNUAL LIMITATION ON PREMIUM INCREASES.

    Section 1308(e) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(e)) is amended by striking ``10 percent'' and inserting 
``15 percent''.

SEC. 11. INCREASE IN BORROWING AUTHORITY.

    (a) Borrowing Authority.--The first sentence of subsection (a) of 
section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4016(a)), as amended by the National Flood Insurance Program Further 
Enhanced Borrowing Authority Act of 2005 (Public Law 109-106; 119 Stat. 
2288), is amended by striking ``$20,775,000,000'' and inserting 
``$21,500,000,000''.
    (b) FEMA Report.--Not later than the expiration of the 6-month 
period beginning on the date of the enactment of this Act, the Director 
of the Federal Emergency Management Agency shall submit a report to the 
Congress setting forth a plan for repaying any amounts borrowed 
pursuant to increase in borrowing authority authorized under the 
amendments made by subsection (a).

SEC. 12. FEMA PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
              PROGRAMS.

    The National Flood Insurance Act of 1968 is amended by inserting 
after section 1313 (42 U.S.C. 4020) the following new section:

``SEC. 1314. FEMA PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION 
              PROGRAMS.

    ``(a) Requirement to Participate.--In the case of the occurrence of 
a natural catastrophe that may have resulted in flood damage covered by 
insurance made available under the national flood insurance program and 
a loss covered by personal lines residential property insurance policy, 
upon request made by the insurance commissioner of a State (or such 
other official responsible for regulating the business of insurance in 
the State) for the participation of representatives of the Director in 
a program sponsored by such State for nonbinding mediation of insurance 
claims resulting from a natural catastrophe, the Director shall cause 
such representatives to participate in such State program, when claims 
under the national flood insurance program are involved, to expedite 
settlement of flood damage claims resulting from such catastrophe.
    ``(b) Extent of Participation.--Participation by representatives of 
the Director required under subsection (a) with respect to flood damage 
claims resulting from a natural catastrophe shall include--
            ``(1) providing adjusters certified for purposes of the 
        national flood insurance program who are authorized to settle 
        claims against such program resulting from such catastrophe in 
        amounts up to the limits of policies under such program;
            ``(2) requiring such adjusters to attend State-sponsored 
        mediation meetings regarding flood insurance claims resulting 
        from such catastrophe at times and places as may be arranged by 
        the State;
            ``(3) participating in good-faith negotiations toward the 
        settlement of such claims with policyholders of coverage made 
        available under the national flood insurance program; and
            ``(4) finalizing the settlement of such claims on behalf of 
        the national flood insurance program with such policyholders.
    ``(c) Coordination.--Representatives of the Director who 
participate pursuant to this section in a State-sponsored mediation 
program with respect to a natural catastrophe shall at all times 
coordinate their activities with insurance officials of the State and 
representatives of insurers for the purpose of consolidating and 
expediting the settlement of claims under the national flood insurance 
program resulting from such catastrophe at the earliest possible time.
    ``(d) Mediation Proceedings and Privileged Documents.--As a 
condition of the participation of Representatives of the Director 
pursuant to this section in State-sponsored mediation, all statements 
made and documents produced pursuant to such mediation involving 
representatives of the Director shall be deemed privileged and 
confidential settlement negotiations made in anticipation of 
litigation.
    ``(e) Effect of Participation on Liability, Right, and 
Obligations.--Participation of Representatives of the Director pursuant 
to this section in State-sponsored mediation shall not affect or expand 
the liability of any party in contract or in tort, nor shall it affect 
the rights or obligations of the parties as provided in the Standard 
Flood Insurance Policy under the national flood insurance program, 
regulations of the Federal Emergency Management Agency, this Act, or 
Federal common law.
    ``(f) Exclusive Federal Jurisdiction.--Participation of 
Representatives of the Director pursuant to this section in State-
sponsored mediation shall not alter, change or modify the original 
exclusive jurisdiction of United States courts as provided in this Act.
    ``(g) Cost Limitation.--Nothing in this section shall be construed 
to require the Director or representatives of the Director to pay 
additional mediation fees relating to flood claims associated with a 
State-sponsored mediation program in which representatives of the 
Director participate.
    ``(h) Exception.--In the case of the occurrence of a natural 
catastrophe that results in flood damage claims under the national 
flood insurance program and does not result in any loss covered by a 
personal lines residential property insurance policy--
            ``(1) this section shall not apply; and
            ``(2) the provisions of the Standard Flood Insurance Policy 
        under the national flood insurance program and the appeals 
        process established pursuant to section 205 of the Bunning-
        Bereueter-Blumenauer Flood Insurance Reform Act of 2004 (Public 
        Law 108-264; 118 Stat. 726) and regulations issued pursuant to 
        such section shall apply exclusively.
    ``(i) Representatives of Director.--For purposes of this section, 
the term `representatives of the Director' means representatives of the 
national flood insurance program who participate in the appeals process 
established pursuant to section 205 of the Bunning-Bereueter-Blumenauer 
Flood Insurance Reform Act of 2004 (Public Law 108-264; 118 Stat. 726) 
and regulations issued pursuant to such section.''.

SEC. 13. FEMA ANNUAL REPORT ON INSURANCE PROGRAM.

    Section 1320 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4027) is amended--
            (1) in the section heading, by striking ``report to the 
        president'' and inserting ``annual report to congress'' ;
            (2) in subsection (a)--
                    (A) by striking ``biennially'';
                    (B) by striking ``the President for submission 
                to''; and
                    (C) by inserting ``not later than June 30 of each 
                year'' before the period at the end;
            (3) in subsection (b), by striking ``biennial'' and 
        inserting ``annual''; and
            (4) by adding at the end the following new subsection:
    ``(c) Financial Status of Program.--The report under this section 
for each year shall include information regarding the financial status 
of the national flood insurance program under this title, including a 
description of the financial status of the National Flood Insurance 
Fund and current and projected levels of claims, premium receipts, 
expenses, and borrowing under the program.''.

SEC. 14. FLOOD INSURANCE OUTREACH GRANTS.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended by adding at the end the following new 
section:

``SEC. 1325. GRANTS FOR OUTREACH TO PROPERTY OWNERS AND RENTERS.

    ``(a) In General.--The Director may, to the extent amounts are made 
available pursuant to subsection (h), make grants to local governmental 
agencies responsible for floodplain management activities (including 
such agencies of Indians tribes, as such term is defined in section 4 
of the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4103)) in communities that participate in the national 
flood insurance program under this title, for use by such agencies to 
carry out outreach activities to encourage and facilitate the purchase 
of flood insurance protection under this Act by owners and renters of 
properties in such communities and to promote educational activities 
that increase awareness of flood risk reduction.
    ``(b) Outreach Activities.--Amounts from a grant under this section 
shall be used only for activities designed to--
            ``(1) identify owners and renters of properties in 
        communities that participate in the national flood insurance 
        program, including owners of residential and commercial 
        properties;
            ``(2) notify such owners and renters when their properties 
        become included in, or when they are excluded from, an area 
        having special flood hazards and the effect of such inclusion 
        or exclusion on the applicability of the mandatory flood 
        insurance purchase requirement under section 102 of the Flood 
        Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such 
        properties;
            ``(3) educate such owners and renters regarding the flood 
        risk and reduction of this risk in their community, including 
        the continued flood risks to areas that are no longer subject 
        to the flood insurance mandatory purchase requirement;
            ``(4) educate such owners and renters regarding the 
        benefits and costs of maintaining or acquiring flood insurance, 
        including, where applicable, lower-cost preferred risk policies 
        under this title for such properties and the contents of such 
        properties; and
            ``(5) encouraging such owners and renters to maintain or 
        acquire such coverage.
    ``(c) Cost Sharing Requirement.--
            ``(1) In general.--In any fiscal year, the Director may not 
        provide a grant under this section to a local governmental 
        agency in an amount exceeding 3 times the amount that the 
        agency certifies, as the Director shall require, that the 
        agency will contribute from non-Federal funds to be used with 
        grant amounts only for carrying out activities described in 
        subsection (b).
            ``(2) Non-federal funds.--For purposes of this subsection, 
        the term `non-Federal funds' includes State or local government 
        agency amounts, in-kind contributions, any salary paid to staff 
        to carry out the eligible activities of the grant recipient, 
        the value of the time and services contributed by volunteers to 
        carry out such services (at a rate determined by the Director), 
        and the value of any donated material or building and the value 
        of any lease on a building.
    ``(d) Administrative Cost Limitation.--Notwithstanding subsection 
(b), the Director may use not more than 5 percent of amounts made 
available under subsection (g) to cover salaries, expenses, and other 
administrative costs incurred by the Director in making grants and 
provide assistance under this section.
    ``(e) Application and Selection.--
            ``(1) In general.--The Director shall provide for local 
        governmental agencies described in subsection (a) to submit 
        applications for grants under this section and for competitive 
        selection, based on criteria established by the Director, of 
        agencies submitting such applications to receive such grants.
            ``(2) Selection considerations.--In selecting applications 
        of local government agencies to receive grants under paragraph 
        (1), the Director shall consider--
                    ``(A) the existence of a cooperative technical 
                partner agreement between the local governmental agency 
                and the Federal Emergency Management Agency;
                    ``(B) the history of flood losses in the relevant 
                area that have occurred to properties, both inside and 
                outside the special flood hazards zones, which are not 
                covered by flood insurance coverage;
                    ``(C) the estimated percentage of high-risk 
                properties located in the relevant area that are not 
                covered by flood insurance;
                    ``(D) demonstrated success of the local 
                governmental agency in generating voluntary purchase of 
                flood insurance; and
                    ``(E) demonstrated technical capacity of the local 
                governmental agency for outreach to individual property 
                owners.
    ``(f) Direct Outreach by FEMA.--In each fiscal year that amounts 
for grants are made available pursuant to subsection (h), the Director 
may use not more than 50 percent of such amounts to carry out, and to 
enter into contracts with other entities to carry out, activities 
described in subsection (b) in areas that the Director determines have 
the most immediate need for such activities.
    ``(g) Reporting.--Each local government agency that receives a 
grant under this section, and each entity that receives amounts 
pursuant to subsection (f), shall submit a report to the Director, not 
later than 12 months after such amounts are first received, which shall 
include such information as the Director considers appropriate to 
describe the activities conducted using such amounts and the effect of 
such activities on the retention or acquisition of flood insurance 
coverage.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated for grants under this section $50,000,000 for each of 
fiscal years 2008 through 2012.''.

SEC. 15. GRANTS FOR DIRECT FUNDING OF MITIGATION ACTIVITIES FOR 
              INDIVIDUAL REPETITIVE CLAIMS PROPERTIES.

    (a) Direct Grants to Owners.--Section 1323 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4030) is amended--
            (1) in the section heading, by inserting ``direct'' before 
        ``grants''; and
            (2) in the matter in subsection (a) that precedes paragraph 
        (1)--
                    (A) by inserting ``, to owners of such 
                properties,'' before ``for mitigation actions''; and
                    (B) by striking ``1'' and inserting ``two''.
    (b) Availability of Funds.--Paragraph (9) of section 1310(a) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended by 
inserting ``which shall remain available until expended,'' after ``and 
fiscal year,''.

SEC. 16. EXTENSION OF PILOT PROGRAM FOR MITIGATION OF SEVERE REPETITIVE 
              LOSS PROPERTIES.

    Section 1361A of the National Flood Insurance Act of 1968 (42 
U.S.C. 4102a) is amended--
            (1) in subsection (k)(1), by striking ``2005, 2006, 2007, 
        2008, and 2009'' and inserting ``2008, 2009, 2010, 2011, and 
        2012''; and
            (2) by striking subsection (l).

SEC. 17. FLOOD MITIGATION ASSISTANCE PROGRAM.

    (a) Eligibility of Property Demolition and Rebuilding.--Section 
1366(e)(5)(B) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104c(e)(5)(B)) is amended by striking ``or floodproofing'' and 
inserting ``floodproofing, or demolition and rebuilding''.
    (b) Elimination of Limitations on Aggregate Amount of Assistance.--
Section 1366 of the National Flood Insurance Act of 1968 is amended by 
striking subsection (f).
    (c) Source of Funds.--Subsection (a) of section 1367 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4104d(a)) is amended by 
adding at the end the following new sentence: ``Notwithstanding any 
other provision of this title, amounts made available pursuant to this 
subsection shall not be subject to offsetting collections through 
premium rates for flood insurance coverage under this title.''.
    (d) Technical Amendments.--Section 1366 of the National Flood 
Insurance Act of 1968 is amended--
            (1) by striking ``subsection (g)'' each place such term 
        appears in subsections (h) and (i)(2) and inserting 
        ``subsection (f)''; and
            (2) by redesignating subsections (g) through (k) as 
        subsections (f) through (j), respectively.

SEC. 18. GAO STUDY OF METHODS TO INCREASE FLOOD INSURANCE PROGRAM 
              PARTICIPATION BY LOW-INCOME FAMILIES.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study to identify and analyze potential methods, practices, 
and incentives that would increase the extent to which low-income 
families (as such term is defined in section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b))) that own residential 
properties located within areas having special flood hazards purchase 
flood insurance coverage for such properties under the national flood 
insurance program. In conducting the study, the Comptroller General 
shall analyze the effectiveness and costs of the various methods, 
practices, and incentives identified, including their effects on the 
national flood insurance program.
    (b) Report.--The Comptroller General shall submit to the Congress a 
report setting forth the conclusions of the study under this section 
not later than 12 months after the date of the enactment of this Act.

SEC. 19. NOTICE OF AVAILABILITY OF FLOOD INSURANCE AND ESCROW IN RESPA 
              GOOD FAITH ESTIMATE.

    Subsection (c) of section 5 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2604(c)) is amended by adding at the 
end the following new sentence: ``Each such good faith estimate shall 
include the following conspicuous statements and information: (1) that 
flood insurance coverage for residential real estate is generally 
available under the national flood insurance program whether or not the 
real estate is located in an area having special flood hazards and 
that, to obtain such coverage, a home owner or purchaser should contact 
the national flood insurance program; (2) a telephone number and a 
location on the World Wide Web by which a home owner or purchaser can 
contact the national flood insurance program; and (3) that the 
escrowing of flood insurance payments is required for many loans under 
section 102(d) of the Flood Disaster Protection Act of 1973, and may be 
a convenient and available option with respect to other loans.''.

SEC. 20. REITERATION OF FEMA RESPONSIBILITIES UNDER 2004 REFORM ACT.

    (a) Appeals Process.--As directed in section 205 of the Bunning-
Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 
note), the Director of the Federal Emergency Management Agency is again 
directed to, not later than 90 days after the date of the enactment of 
this Act, establish an appeals process through which holders of a flood 
insurance policy may appeal the decisions, with respect to claims, 
proofs of loss, and loss estimates relating to such flood insurance 
policy as required by such section.
    (b) Minimum Training and Education Requirements.--The Director of 
the Federal Emergency Management Agency is directed to continue to work 
with the insurance industry, State insurance regulators, and other 
interested parties to implement the minimum training and education 
standards for all insurance agents who sell flood insurance policies 
that were established by the Director under the notice published 
September 1, 2005 (70 Fed. Reg. 52117) pursuant to section 207 of the 
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 
U.S.C. 4011 note).
    (c) Report.--Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the Director of the 
Federal Emergency Management Agency shall submit a report to the 
Congress describing the implementation of each provision of the 
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public 
Law 108-264) and identifying each regulation, order, notice, and other 
material issued by the Director in implementing each such provision.

SEC. 21. ONGOING MODERNIZATION OF FLOOD MAPS AND ELEVATION STANDARDS.

    (a) Ongoing Flood Mapping Program.--Section 1360 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4101) is amended by adding at 
the end the following new subsection:
    ``(k) Ongoing Program To Review, Update, and Maintain Flood 
Insurance Program Maps.--
            ``(1) In general.--The Director, in coordination with the 
        Technical Mapping Advisory Council established pursuant to 
        section 576 of the National Flood Insurance Reform Act of 1994 
        (42 U.S.C. 4101 note) and section 21(b) of the Flood Insurance 
        Reform and Modernization Act of 2007, shall establish an 
        ongoing program under which the Director shall review, update, 
        and maintain national flood insurance program rate maps in 
        accordance with this subsection.
            ``(2) Inclusions.--
                    ``(A) Covered areas.--Each map updated under this 
                subsection shall include a depiction of--
                            ``(i) the 500-year floodplain;
                            ``(ii) areas that could be inundated as a 
                        result of the failure of a levee, as determined 
                        by the Director; and
                            ``(iii) areas that could be inundated as a 
                        result of the failure of a dam, as identified 
                        under the National Dam Safety Program Act (33 
                        U.S.C. 467 et seq.).
                    ``(B) Other inclusions.--In updating maps under 
                this subsection, the Director may include--
                            ``(i) any relevant information on coastal 
                        inundation from--
                                    ``(I) an applicable inundation map 
                                of the Corps of Engineers; and
                                    ``(II) data of the National Oceanic 
                                and Atmospheric Administration relating 
                                to storm surge modeling;
                            ``(ii) any relevant information of the 
                        Geographical Service on stream flows, watershed 
                        characteristics, and topography that is useful 
                        in the identification of flood hazard areas, as 
                        determined by the Director; and
                            ``(iii) a description of any hazard that 
                        might impact flooding, including, as determined 
                        by the Director--
                                    ``(I) land subsidence and coastal 
                                erosion areas;
                                    ``(II) sediment flow areas;
                                    ``(III) mud flow areas;
                                    ``(IV) ice jam areas; and
                                    ``(V) areas on coasts and inland 
                                that are subject to the failure of 
                                structural protective works, such as 
                                levees, dams, and floodwalls.
            ``(3) Standards.--In updating and maintaining maps under 
        this subsection, the Director shall establish standards to--
                    ``(A) ensure that maps are adequate for--
                            ``(i) flood risk determinations; and
                            ``(ii) use by State and local governments 
                        in managing development to reduce the risk of 
                        flooding;
                    ``(B) facilitate the Director, in conjunction with 
                State and local governments, to identify and use 
                consistent methods of data collection and analysis in 
                developing maps for communities with similar flood 
                risks, as determined by the Director; and
                    ``(C) ensure that emerging weather forecasting 
                technology is used, where practicable, in flood map 
                evaluations and the identification of potential risk 
                areas.
            ``(4) Hurricanes katrina and rita mapping priority.--In 
        updating and maintaining maps under this subsection, the 
        Director shall--
                    ``(A) give priority to the updating and maintenance 
                of maps of coastal areas affected by Hurricane Katrina 
                or Hurricane Rita to provide guidance with respect to 
                hurricane recovery efforts; and
                    ``(B) use the process of updating and maintaining 
                maps under subparagraph (A) as a model for updating and 
                maintaining other maps.
            ``(5) Education program.--The Director shall, after each 
        update to a flood insurance program rate map, in consultation 
        with the chief executive officer of each community affected by 
        the update, conduct a program to educate each such community 
        about the update to the flood insurance program rate map and 
        the effects of the update.
            ``(6) Annual report.--Not later than June 30 of each year, 
        the Director shall submit a report to the Congress describing, 
        for the preceding 12-month period, the activities of the 
        Director under the program under this section and the reviews 
        and updates of flood insurance program rate maps conducted 
        under the program. Each such annual report shall contain the 
        most recent report of the Technical Mapping Advisory Council 
        pursuant to section 576(c)(3) of the National Flood Insurance 
        Reform Act of 1994 (42 U.S.C. 4101 note).
            ``(7) Authorization of appropriations.--There is authorized 
        to be appropriated to the Director to carry out this subsection 
        $400,000,000 for each of fiscal years 2008 through 2013.''.
    (b) Reestablishment of Technical Mapping Advisory Council for 
Ongoing Mapping Program.--
            (1) Reestablishment.--There is reestablished the Technical 
        Mapping Advisory Council, in accordance with this subsection 
        and section 576 of the National Flood Insurance Reform Act of 
        1994 (42 U.S.C. 4101 note).
            (2) Membership.--Paragraph (1) of section 576(b) of the 
        National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 
        note) is amended--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``10'' and inserting ``14'';
                    (B) by redesignating subparagraphs (E), (F), (G), 
                (H), (I), and (J) as subparagraphs (F), (G), (H), (K), 
                (M), and (N), respectively;
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) a representative of the Corps of Engineers of 
                the United States Army;'';
                    (D) by inserting after subparagraph (H) (as so 
                redesignated by subparagraph (B) of this paragraph) the 
                following new subparagraphs:
                    ``(I) a representative of local or regional flood 
                and stormwater agencies;
                    ``(J) a representative of State geographic 
                information coordinators;''; and
                    (E) by inserting after subparagraph (K) (as so 
                redesignated by subparagraph (A) of this paragraph) the 
                following new subparagraph:
                    ``(L) a representative of flood insurance servicing 
                companies;''.
            (3) Terms of members and appointment.--Section 576(b) of 
        the National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 
        note) is amended by adding at the end the following new 
        paragraph:
            ``(3) Terms of members.--
                    ``(A) In general.--Each member of the Council 
                pursuant to any of subparagraphs (B) through (N) of 
                paragraph (1) shall be appointed for a term of 5 years, 
                except as provided in subparagraphs (B) and (C).
                    ``(B) Terms of initial appointees.--As designated 
                by the Director (or the designee of the Director) at 
                the time of appointment, of the members of the Council 
                first appointed pursuant to subparagraph (D)--
                            ``(i) 4 shall be appointed for a term of 1 
                        year;
                            ``(ii) 4 shall be appointed for a term of 3 
                        years; and
                            ``(iii) 5 shall be appointed for a term of 
                        5 years.
                    ``(C) Vacancies.--Any member of the Council 
                appointed to fill a vacancy occurring before the 
                expiration of the term for which the member's 
                predecessor was appointed shall be appointed only for 
                the remainder of that term. A member may serve after 
                the expiration of that member's term until a successor 
                has taken office. A vacancy in the Council shall be 
                filled in the manner in which the original appointment 
                was made.
                    ``(D) Initial appointment.--The Director, or the 
                Director's designee, shall take action as soon as 
                possible after the date of the enactment of the Flood 
                Insurance Reform and Modernization Act of 2007 to 
                appoint the members of the Council pursuant to this 
                subsection.''.
            (4) Duties.--Subsection (c) of section 576 of the National 
        Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 note) is 
        amended to read as follows:
    ``(c) Duties.--The Council shall--
            ``(1) make recommendations to the Director for improvements 
        to the flood map modernization program under section 1360(k) of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 41010(k));
            ``(2) make recommendations to the Director for maintaining 
        a modernized inventory of flood hazard maps and information; 
        and
            ``(3) submit an annual report to the Director that contains 
        a description of the activities and recommendations of the 
        Council.''.
            (5) Elimination of termination.--Section 576 of the 
        National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 
        note) is amended by striking subsection (k) and inserting the 
        following new subsection:
    ``(k) Continued Existence.--Section 14(a)(2)(B) of the Federal 
Advisory Committee Act (5 U.S.C. App.; relating to termination of 
advisory committees) shall not apply to the Council.''.
    (c) Post-Disaster Flood Elevation Determinations.--Section 1361 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4101), as amended 
by the preceding provisions of this Act, is further amended by adding 
at the end the following new subsection:
    ``(l) Interim Post-Disaster Flood Elevations.--
            ``(1) Authority.--Notwithstanding any other provision of 
        this section or section 1363, the Director may, after any 
        flood-related disaster, establish by order interim flood 
        elevation requirements for purposes of the national flood 
        insurance program for any areas affected by such flood-related 
        disaster.
            ``(2) Effectiveness.--Such interim elevation requirements 
        for such an area shall take effect immediately upon issuance 
        and may remain in effect until the Director establishes new 
        flood elevations for such area in accordance with section 1363 
        or the Director provides otherwise.''.

SEC. 22. NOTIFICATION AND APPEAL OF MAP CHANGES; NOTIFICATION OF 
              ESTABLISHMENT OF FLOOD ELEVATIONS.

    Section 1363 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104) is amended by striking the section designation and all that 
follows through the end of subsection (a) and inserting the following:
    ``Sec. 1363. (a) In establishing projected flood elevations for 
land use purposes with respect to any community pursuant to section 
1361, the Director shall first propose such determinations--
            ``(1) by providing the chief executive officer of each 
        community affected by the proposed elevations, by certified 
        mail, with a return receipt requested, notice of the 
        elevations, including a copy of the maps for the elevations for 
        such community and a statement explaining the process under 
        this section to appeal for changes in such elevations;
            ``(2) by causing notice of such elevations to be published 
        in the Federal Register, which notice shall include information 
        sufficient to identify the elevation determinations and the 
        communities affected, information explaining how to obtain 
        copies of the elevations, and a statement explaining the 
        process under this section to appeal for changes in the 
        elevations; and
            ``(3) by publishing in a prominent local newspaper the 
        elevations, a description of the appeals process for flood 
        determinations, and the mailing address and telephone number of 
        a person the owner may contact for more information or to 
        initiate an appeal.''.

SEC. 23. CLARIFICATION OF REPLACEMENT COST PROVISIONS, FORMS, AND 
              POLICY LANGUAGE.

    Not later than the expiration of the 3-month period beginning on 
the date of the enactment of this Act, the Director of the Federal 
Emergency Management Agency shall--
            (1) in plain language using easy to understand terms and 
        concepts, issue regulations, and revise any materials made 
        available by such Agency, to clarify the applicability of 
        replacement cost coverage under the national flood insurance 
        program;
            (2) in plain language using easy to understand terms and 
        concepts, revise any regulations, forms, notices, guidance, and 
        publications relating to the full cost of repair or replacement 
        under the replacement cost coverage to more clearly describe 
        such coverage to flood insurance policyholders and information 
        to be provided by such policyholders relating to such coverage, 
        and to avoid providing misleading information to such 
        policyholders;
            (3) revise the language in standard flood insurance 
        policies under such program regarding rating and coverage 
        descriptions in a manner that is consistent with language used 
        widely in other homeowners and property and casualty insurance 
        policies, including such language regarding classification of 
        buildings, basements, crawl spaces, detached garages, 
        enclosures below elevated buildings, and replacement costs; and
            (4) include in each standard flood insurance policy a one-
        page description of the policy using plain language and easy to 
        understand terms and concepts.

SEC. 24. AUTHORIZATION OF ADDITIONAL FEMA STAFF.

    Notwithstanding any other provision of law, the Director of the 
Federal Emergency Management Agency may employ such additional staff as 
may be necessary to carry out all of the responsibilities of the 
Director pursuant to this Act and the amendments made by this Act. 
There are authorized to be appropriated to Director such sums as may be 
necessary for costs of employing such additional staff.

SEC. 25. EXTENSION OF DEADLINE FOR FILING PROOF OF LOSS.

    (a) In General.--Section 1312 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4019) is amended--
            (1) by inserting ``(a) Payment.--'' before ``The 
        Director''; and
            (2) by adding at the end the following new subsection:
    ``(b) Filing Deadline for Proof of Loss.--
            ``(1) In general.--In establishing any requirements 
        regarding notification, proof, or approval of claims for damage 
        to or loss of property which is covered by flood insurance made 
        available under this title, the Director may not require an 
        insured to notify the Director of such damage or loss, submit a 
        claim for such damage or loss, or certify to or submit proof of 
        such damage or loss, before the expiration of the 180-day 
        period that begins on the date that such damage or loss 
        occurred.
            ``(2) Exceptions.--Notwithstanding any deadline established 
        in accordance with paragraph (1), the Director may not deny a 
        claim for damage or loss described in such paragraph solely for 
        failure to meet such deadline if the insured demonstrates any 
        good cause for such failure.''.
    (b) Applicability.--Subsection (b) of section 1312 of the National 
Flood Insurance Act of 1968, as added by subsection (a)(2) of this 
section, shall apply with respect to any claim under which the damage 
to or loss of property occurred on or after the date of the enactment 
of this Act.
                                 <all>