[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3959 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3959

 To amend the National Flood Insurance Act of 1968 to provide for the 
      phase-in of actuarial rates for certain pre-FIRM properties.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 24, 2007

Mr. Garrett of New Jersey (for himself and Mr. Frank of Massachusetts) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend the National Flood Insurance Act of 1968 to provide for the 
      phase-in of actuarial rates for certain pre-FIRM properties.

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

SECTION 1. PHASE-IN OF ACTUARIAL RATES FOR CERTAIN PRE-FIRM PROPERTIES.

    (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 (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Recently purchased pre-firm properties.--Any property 
        that--
                    ``(A) has been constructed or substantially 
                improved and for which such construction or improvement 
                was started, as determined by the Director, before 
                December 31, 1974, or before the effective date of the 
                initial rate map published by the Director under 
                paragraph (2) of section 1360 for the area in which 
                such property is located, whichever is later; and
                    ``(B) is purchased--
                            ``(i) after the date of enactment of this 
                        paragraph; and
                            ``(ii) for not less than $600,000.''.
    (b) Technical Amendments.--Section 1308(c) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015(c)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``the limitations provided under paragraphs (1) and (2)'' and 
        inserting ``subsection (e)''; and
            (2) in paragraph (1), by striking ``, except'' and all that 
        follows through ``subsection (e)''.
    (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) 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 15 percent (or such lesser amount 
                as may be necessary so that the chargeable rate does 
                not exceed such applicable estimated risk premium rate 
                or to comply with subparagraph (C)). Any increase in 
                chargeable premium rates for a property pursuant to 
                this paragraph shall not be considered for purposes of 
                the limitation under section 1308(e) of such Act.
                    (C) Full actuarial rates.--The provisions of 
                paragraph (2) of such section 1308(c) shall apply to 
                such a property upon the accomplishment of the increase 
                under this paragraph and thereafter.
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