I 111th CONGRESS 2d Session H. R. 5255 IN THE HOUSE OF REPRESENTATIVES May 7, 2010 Mr. Frank of Massachusetts (for himself, Mr. Kanjorski, Ms. Waters, and Ms. Matsui) introduced the following bill; which was referred to the Committee on Financial Services A BILL To reauthorize the National Flood Insurance Program, and for other purposes.

1.

Short title

This Act may be cited as the Stable Flood Insurance Authorization Act of 2010.

2.

Congressional findings

The Congress finds that— (1)since the enactment of National Flood Insurance Act of 1968, the National Flood Insurance Program has been the primary source of reliable, reasonably priced flood insurance coverage for millions of American homes and businesses; (2)today over 5,500,000 homes and businesses in the United States rely on the National Flood Insurance Program to provide a degree of financial security; (3)several years of below-average flood claims losses and increased voluntary participation in the National Flood Insurance Program have allowed the program to fully service the debt incurred following Hurricanes Katrina and Rita and allowed the program to pay $598,000,000 of the principal of that outstanding debt; (4)recent lapses in, and short-term reauthorizations of, the National Flood Insurance Program’s ability to write and renew flood insurance coverage are estimated by the Federal Emergency Management Agency and The National Realtors Association to have adversely impacted or delayed up to 1,350 real estate closings per day; (5)though long-term authorization and significant reforms are needed to further improve the financial outlook of the National Flood Insurance Program, while such comprehensive reforms are considered, reliable, annual authorization of the program is an essential element to stabilizing the already fragile United States housing market; (6)increased flooding in areas outside designated special flood hazard areas prompted the Executive and the Congress in 2002 to begin calling for the National Flood Insurance Program to develop and disseminate revised, updated flood insurance rate maps that reflect the real risk of flooding for properties not previously identified as being located with in a special flood hazard area; (7)dissemination of accurate, up-to-date flood risk information remains a primary goal of the National Flood Insurance Program and such information should be disseminated as soon as such information is collected and available; and (8)communities should be required to make their residents aware of updated flood-risk data while communities are assessing and incorporating updated flood-risk data into long-term community planning.

3.

Extension of national flood insurance program

(a)

Program extension

Section 1319 of the National Flood Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking September 30, 2008 and inserting September 30, 2010. (b)

Financing

Section 1309(a) of such Act (42 U.S.C. 4016(a)) is amended by striking September 30, 2008 and inserting September 30, 2010. (c)

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 2010; and (2)by striking subsection (l).

4.

Consideration of construction, reconstruction, and improvement of flood protection systems in determination of flood insurance rates

(a)

In general

Section 1307 of the National Flood Insurance Act of 1968 (42 U.S.C. 4014) is amended— (1)in subsection (e)— (A)in the first sentence, by striking construction of a flood protection system and inserting construction, reconstruction, or improvement of a flood protection system (without respect to the level of Federal investment or participation); and (B)in the second sentence— (i)by striking construction of a flood protection system and inserting construction, reconstruction, or improvement of a flood protection system; and (ii)by inserting based on the present value of the completed system after has been expended; and (2)in subsection (f)— (A)in the first sentence in the matter preceding paragraph (1), by inserting (without respect to the level of Federal investment or participation) before the period at the end; (B)in the third sentence in the matter preceding paragraph (1), by inserting , whether coastal or riverine, after special flood hazard; and (C)in paragraph (1), by striking a Federal agency in consultation with the local project sponsor and inserting the entity or entities that own, operate, maintain, or repair such system. (b)

Regulations

Not later than 90 days after the date of the enactment of this Act, the Administrator of the Federal Emergency Management Agency shall promulgate regulations to carry out the amendments made by subsection (a). Section 5 may not be construed to annul, alter, affect, authorize any waiver of, or establish any exception to, the requirement under the preceding sentence. (c)

Implementation

The Administrator of the Federal Emergency Management Agency shall implement this section and the amendments made by this section in a manner that will not materially weaken the financial position of the national flood insurance program or increase the risk of financial liability to Federal taxpayers.

5.

Authority to establish premium rates by notice

Subsection (a) of section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(a)) is amended, in the matter preceding paragraph (1), by inserting or notice after prescribe by regulation.

6.

3-year delay in effective date of mandatory purchase requirement for new flood hazard areas

(a)

In general

Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) is amended by adding at the end the following new subsection: (i)

Delayed effective date of mandatory purchase requirement for new flood hazard areas

(1)

In general

In the case of any area that was not previously designated as an area having special flood hazards and that, pursuant to any issuance, revision, updating, or other change in flood insurance maps that takes effect on or after September 1, 2008, becomes designated as an area having special flood hazards, if each State and local government having jurisdiction over any portion of the geographic area has complied with paragraph (2), such designation shall not take effect for purposes of subsection (a), (b), or (e) of this section, or section 202(a) of this Act, until the expiration of the 3-year period beginning upon the date that such maps, as issued, revised, update, or otherwise changed, become effective. (2)

Notice requirements

A State or local government shall be considered to have complied with this paragraph with respect to any geographic area described in paragraph (1) only if the State or local government has, before the effective date of the issued, revised, updated, or changed maps, and in accordance with such standards as shall be established by the Director— (A)developed an evacuation plan to be implemented in the event of flooding in such portion of the geographic area; and (B)developed and implemented an outreach and communication plan to advise occupants in such portion of the geographic area of potential flood risks, the opportunity to purchase flood insurance, and the consequences of failure to purchase flood insurance. (3)

Rule of construction

Nothing in paragraph (1) may be construed to affect the applicability of a designation of any area as an area having special flood hazards for purposes of the availability of flood insurance coverage, criteria for land management and use, notification of flood hazards, eligibility for mitigation assistance, or any other purpose or provision not specifically referred to in paragraph (1). . (b)

Conforming amendment

The second sentence of subsection (h) of section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 4101(h)) is amended by striking Such and inserting Except for notice regarding a change described in section 102(i)(1) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(i)(1)), such. (c)

No refunds

Nothing in this section or the amendments made by this section may be construed to authorize or require any payment or refund for flood insurance coverage purchased for any property that covered any period during which such coverage is not required for the property pursuant to the applicability of the amendment made by subsection (a).

7.

Notification to homeowners regarding mandatory purchase requirement applicability and rate phase-ins

Section 201 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4105) is amended by adding at the end the following new subsection: (f)

Annual notification

The Director, in consultation with affected communities, shall establish and carry out a plan to notify residents of areas having special flood hazards, on an annual basis— (1)that they reside in such an area; (2)of the geographical boundaries of such area; (3)of the provisions of section 102 requiring purchase of flood insurance coverage for properties located in such an area, including the date on which such provisions apply with respect to such area, taking into consideration section 102(i); and (4)of a general estimate of what similar homeowners in similar areas typically pay for flood insurance coverage. .