[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1309 Engrossed in House (EH)]

112th CONGRESS
  1st Session
                                H. R. 1309

_______________________________________________________________________

                                 AN ACT


 
To extend the authorization of the national flood insurance program, to 
achieve reforms to improve the financial integrity and stability of the 
program, and to increase the role of private markets in the management 
            of flood insurance risk, 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 Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Extensions.
Sec. 3. Mandatory purchase.
Sec. 4. Reforms of coverage terms.
Sec. 5. Reforms of premium rates.
Sec. 6. Technical Mapping Advisory Council.
Sec. 7. FEMA incorporation of new mapping protocols.
Sec. 8. Treatment of levees.
Sec. 9. Privatization initiatives.
Sec. 10. FEMA annual report on insurance program.
Sec. 11. Mitigation assistance.
Sec. 12. Notification to homeowners regarding mandatory purchase 
                            requirement applicability and rate phase-
                            ins.
Sec. 13. Notification to members of congress of flood map revisions and 
                            updates.
Sec. 14. Notification and appeal of map changes; notification to 
                            communities of establishment of flood 
                            elevations.
Sec. 15. Notification to tenants of availability of contents insurance.
Sec. 16. Notification to policy holders regarding direct management of 
                            policy by FEMA.
Sec. 17. Notice of availability of flood insurance and escrow in RESPA 
                            good faith estimate.
Sec. 18. Reimbursement for costs incurred by homeowners and communities 
                            obtaining letters of map amendment or 
                            revision.
Sec. 19. Enhanced communication with certain communities during map 
                            updating process.
Sec. 20. Notification to residents newly included in flood hazard 
                            areas.
Sec. 21. Treatment of swimming pool enclosures outside of hurricane 
                            season.
Sec. 22. Information regarding multiple perils claims.
Sec. 23. FEMA authority to reject transfer of policies.
Sec. 24. Appeals.
Sec. 25. Reserve fund.
Sec. 26. CDBG eligibility for flood insurance outreach activities and 
                            community building code administration 
                            grants.
Sec. 27. Technical corrections.
Sec. 28. Requiring competition for national flood insurance program 
                            policies.
Sec. 29. Studies of voluntary community-based flood insurance options.
Sec. 30. Report on inclusion of building codes in floodplain management 
                            criteria.
Sec. 31. Study on graduated risk.
Sec. 32. Report on flood-in-progress determination.
Sec. 33. Study on repaying flood insurance debt.
Sec. 34. No cause of action.
Sec. 35. Authority for the corps of engineers to provide specialized or 
                            technical services.

SEC. 2. EXTENSIONS.

    (a) Extension of Program.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
``September 30, 2011'' and inserting ``September 30, 2016''.
    (b) Extension of Financing.--Section 1309(a) of such Act (42 U.S.C. 
4016(a)) is amended by striking ``September 30, 2011'' and inserting 
``September 30, 2016''.

SEC. 3. MANDATORY PURCHASE.

    (a) Authority To Temporarily Suspend Mandatory Purchase 
Requirement.--
            (1) 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) Authority To Temporarily Suspend Mandatory Purchase 
Requirement.--
            ``(1) Finding by administrator that area is an eligible 
        area.--For any area, upon a request submitted to the 
        Administrator by a local government authority having 
        jurisdiction over any portion of the area, the Administrator 
        shall make a finding of whether the area is an eligible area 
        under paragraph (3). If the Administrator finds that such area 
        is an eligible area, the Administrator shall, in the discretion 
        of the Administrator, designate a period during which such 
        finding shall be effective, which shall not be longer in 
        duration than 12 months.
            ``(2) Suspension of mandatory purchase requirement.--If the 
        Administrator makes a finding under paragraph (1) that an area 
        is an eligible area under paragraph (3), during the period 
        specified in the finding, the designation of such eligible area 
        as an area having special flood hazards shall not be effective 
        for purposes of subsections (a), (b), and (e) of this section, 
        and section 202(a) of this Act. Nothing in this paragraph may 
        be construed to prevent any lender, servicer, regulated lending 
        institution, Federal agency lender, the Federal National 
        Mortgage Association, or the Federal Home Loan Mortgage 
        Corporation, at the discretion of such entity, from requiring 
        the purchase of flood insurance coverage in connection with the 
        making, increasing, extending, or renewing of a loan secured by 
        improved real estate or a mobile home located or to be located 
        in such eligible area during such period or a lender or 
        servicer from purchasing coverage on behalf of a borrower 
        pursuant to subsection (e).
            ``(3) Eligible areas.--An eligible area under this 
        paragraph is an area that is designated or will, pursuant to 
        any issuance, revision, updating, or other change in flood 
        insurance maps that takes effect on or after the date of the 
        enactment of the Flood Insurance Reform Act of 2011, become 
        designated as an area having special flood hazards and that 
        meets any one of the following 3 requirements:
                    ``(A) Areas with no history of special flood 
                hazards.--The area does not include any area that has 
                ever previously been designated as an area having 
                special flood hazards.
                    ``(B) Areas with flood protection systems under 
                improvements.--The area was intended to be protected by 
                a flood protection system--
                            ``(i) that has been decertified, or is 
                        required to be certified, as providing 
                        protection for the 100-year frequency flood 
                        standard;
                            ``(ii) that is being improved, constructed, 
                        or reconstructed; and
                            ``(iii) for which the Administrator has 
                        determined measurable progress toward 
                        completion of such improvement, construction, 
                        reconstruction is being made and toward 
                        securing financial commitments sufficient to 
                        fund such completion.
                    ``(C) Areas for which appeal has been filed.--An 
                area for which a community has appealed designation of 
                the area as having special flood hazards in a timely 
                manner under section 1363.
            ``(4) Extension of delay.--Upon a request submitted by a 
        local government authority having jurisdiction over any portion 
        of the eligible area, the Administrator may extend the period 
        during which a finding under paragraph (1) shall be effective, 
        except that--
                    ``(A) each such extension under this paragraph 
                shall not be for a period exceeding 12 months; and
                    ``(B) for any area, the cumulative number of such 
                extensions may not exceed 2.
            ``(5) Additional extension for communities making more than 
        adequate progress on flood protection system.--
                    ``(A) Extension.--
                            ``(i) Authority.--Except as provided in 
                        subparagraph (B), in the case of an eligible 
                        area for which the Administrator has, pursuant 
                        to paragraph (4), extended the period of 
                        effectiveness of the finding under paragraph 
                        (1) for the area, upon a request submitted by a 
                        local government authority having jurisdiction 
                        over any portion of the eligible area, if the 
                        Administrator finds that more than adequate 
                        progress has been made on the construction of a 
                        flood protection system for such area, as 
                        determined in accordance with the last sentence 
                        of section 1307(e) of the National Flood 
                        Insurance Act of 1968 (42 U.S.C. 4014(e)), the 
                        Administrator may, in the discretion of the 
                        Administrator, further extend the period during 
                        which the finding under paragraph (1) shall be 
                        effective for such area for an additional 12 
                        months.
                            ``(ii) Limit.-- For any eligible area, the 
                        cumulative number of extensions under this 
                        subparagraph may not exceed 2.
                    ``(B) Exclusion for new mortgages.--
                            ``(i) Exclusion.--Any extension under 
                        subparagraph (A) of this paragraph of a finding 
                        under paragraph (1) shall not be effective with 
                        respect to any excluded property after the 
                        origination, increase, extension, or renewal of 
                        the loan referred to in clause (ii)(II) for the 
                        property.
                            ``(ii) Excluded properties.--For purposes 
                        of this subparagraph, the term `excluded 
                        property' means any improved real estate or 
                        mobile home--
                                    ``(I) that is located in an 
                                eligible area; and
                                    ``(II) for which, during the period 
                                that any extension under subparagraph 
                                (A) of this paragraph of a finding 
                                under paragraph (1) is otherwise in 
                                effect for the eligible area in which 
                                such property is located--
                                            ``(aa) a loan that is 
                                        secured by the property is 
                                        originated; or
                                            ``(bb) any existing loan 
                                        that is secured by the property 
                                        is increased, extended, or 
                                        renewed.
            ``(6) Rule of construction.--Nothing in this subsection 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 (2).
            ``(7) Reports.--The Administrator shall, in each annual 
        report submitted pursuant to section 1320, include information 
        identifying each finding under paragraph (1) by the 
        Administrator during the preceding year that an area is an area 
        having special flood hazards, the basis for each such finding, 
        any extensions pursuant to paragraph (4) of the periods of 
        effectiveness of such findings, and the reasons for such 
        extensions.''.
            (2) No refunds.--Nothing in this subsection or the 
        amendments made by this subsection 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 
        paragraph (1).
    (b) Termination of Force-Placed Insurance.--Section 102(e) of the 
Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(e)) is amended--
            (1) in paragraph (2), by striking ``insurance.'' and 
        inserting ``insurance, including premiums or fees incurred for 
        coverage beginning on the date on which flood insurance 
        coverage lapsed or did not provide a sufficient coverage 
        amount.'';
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (5) and 6), respectively; and
            (3) by inserting after paragraph (2) the following new 
        paragraphs:
            ``(3) Termination of force-placed insurance.--Within 30 
        days of receipt by the lender or servicer of a confirmation of 
        a borrower's existing flood insurance coverage, the lender or 
        servicer shall--
                    ``(A) terminate the force-placed insurance; and
                    ``(B) refund to the borrower all force-placed 
                insurance premiums paid by the borrower during any 
                period during which the borrower's flood insurance 
                coverage and the force-placed flood insurance coverage 
                were each in effect, and any related fees charged to 
                the borrower with respect to the force-placed insurance 
                during such period.
            ``(4) Sufficiency of demonstration.--For purposes of 
        confirming a borrower's existing flood insurance coverage, a 
        lender or servicer for a loan shall accept from the borrower an 
        insurance policy declarations page that includes the existing 
        flood insurance policy number and the identity of, and contact 
        information for, the insurance company or agent.''.
    (c) Use of Private Insurance to Satisfy Mandatory Purchase 
Requirement.--Section 102(b) of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``lending institutions not to 
                make'' and inserting ``lending institutions--
                    ``(A) not to make'';
                    (B) in subparagraph (A), as designated by 
                subparagraph (A) of this paragraph, by striking 
                ``less.'' and inserting ``less; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) to accept private flood insurance as 
                satisfaction of the flood insurance coverage 
                requirement under subparagraph (A) if the coverage 
                provided by such private flood insurance meets the 
                requirements for coverage under such subparagraph.'';
            (2) in paragraph (2), by inserting after ``provided in 
        paragraph (1).'' the following new sentence: ``Each Federal 
        agency lender shall accept private flood insurance as 
        satisfaction of the flood insurance coverage requirement under 
        the preceding sentence if the flood insurance coverage provided 
        by such private flood insurance meets the requirements for 
        coverage under such sentence.'';
            (3) in paragraph (3), in the matter following subparagraph 
        (B), by adding at the end the following new sentence: ``The 
        Federal National Mortgage Association and the Federal Home Loan 
        Mortgage Corporation shall accept private flood insurance as 
        satisfaction of the flood insurance coverage requirement under 
        the preceding sentence if the flood insurance coverage provided 
        by such private flood insurance meets the requirements for 
        coverage under such sentence.''; and
            (4) by adding at the end the following new paragraph:
            ``(5) Private flood insurance defined.--In this subsection, 
        the term `private flood insurance' means a contract for flood 
        insurance coverage allowed for sale under the laws of any 
        State.''.

SEC. 4. REFORMS OF COVERAGE TERMS.

    (a) Minimum Deductibles for Claims.--Section 1312 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4019) is amended--
            (1) by striking ``The Director is'' and inserting the 
        following: ``(a) In General.--The Administrator is''; and
            (2) by adding at the end the following:
    ``(b) Minimum Annual Deductibles.--
            ``(1) Subsidized rate properties.--For any structure that 
        is covered by flood insurance under this title, and for which 
        the chargeable rate for such coverage is less than the 
        applicable estimated risk premium rate under section 1307(a)(1) 
        for the area (or subdivision thereof) in which such structure 
        is located, the minimum annual deductible for damage to or loss 
        of such structure shall be $2,000.
            ``(2) Actuarial rate properties.--For any structure that is 
        covered by flood insurance under this title, for which the 
        chargeable rate for such coverage is not less than the 
        applicable estimated risk premium rate under section 1307(a)(1) 
        for the area (or subdivision thereof) in which such structure 
        is located, the minimum annual deductible for damage to or loss 
        of such structure shall be $1,000.''.
    (b) Clarification of Residential and Commercial Coverage Limits.--
Section 1306(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4013(b)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``in the case of any residential 
                property'' and inserting ``in the case of any 
                residential building designed for the occupancy of from 
                one to four families''; and
                    (B) by striking ``shall be made available to every 
                insured upon renewal and every applicant for insurance 
                so as to enable such insured or applicant to receive 
                coverage up to a total amount (including such limits 
                specified in paragraph (1)(A)(i)) of $250,000'' and 
                inserting ``shall be made available, with respect to 
                any single such building, up to an aggregate liability 
                (including such limits specified in paragraph 
                (1)(A)(i)) of $250,000''; and
            (2) in paragraph (4)--
                    (A) by striking ``in the case of any nonresidential 
                property, including churches,'' and inserting ``in the 
                case of any nonresidential building, including a 
                church,''; and
                    (B) by striking ``shall be made available to every 
                insured upon renewal and every applicant for insurance, 
                in respect to any single structure, up to a total 
                amount (including such limit specified in subparagraph 
                (B) or (C) of paragraph (1), as applicable) of $500,000 
                for each structure and $500,000 for any contents 
                related to each structure'' and inserting ``shall be 
                made available with respect to any single such 
                building, up to an aggregate liability (including such 
                limits specified in subparagraph (B) or (C) of 
                paragraph (1), as applicable) of $500,000, and coverage 
                shall be made available up to a total of $500,000 
                aggregate liability for contents owned by the building 
                owner and $500,000 aggregate liability for each unit 
                within the building for contents owned by the tenant''.
    (c) Indexing of 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 (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting ``; and'';
            (3) by redesignating paragraph (5) as paragraph (7); and
            (4) by adding at the end the following new paragraph:
            ``(8) each of the dollar amount limitations under 
        paragraphs (2), (3), (4), (5), and (6) shall be adjusted 
        effective on the date of the enactment of the Flood Insurance 
        Reform Act of 2011, such adjustments shall be calculated using 
        the percentage change, over the period beginning on September 
        30, 1994, and ending on such date of enactment, in such 
        inflationary index as the Administrator shall, by regulation, 
        specify, and the dollar amount of such adjustment shall be 
        rounded to the next lower dollar; and the Administrator shall 
        cause to be published in the Federal Register the adjustments 
        under this paragraph to such dollar amount limitations; except 
        that in the case of coverage for a property that is made 
        available, pursuant to this paragraph, in an amount that 
        exceeds the limitation otherwise applicable to such coverage as 
        specified in paragraph (2), (3), (4), (5), or (6), the total of 
        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).''.
    (d) Optional Coverage for Loss of Use of Personal Residence and 
Business Interruption.--Subsection (b) of section 1306 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4013(b)), as amended by the 
preceding provisions of this section, is further amended by inserting 
after paragraph (4) the following new paragraphs:
            ``(5) the Administrator may provide that, in the case of 
        any residential property, each renewal or new contract for 
        flood insurance coverage may provide not more than $5,000 
        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, except 
        that--
                    ``(A) purchase of such coverage shall be at the 
                option of the insured;
                    ``(B) any 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
                    ``(C) the Administrator may make such coverage 
                available only if the Administrator makes a 
                determination and causes notice of such determination 
                to be published in the Federal Register that--
                            ``(i) a competitive private insurance 
                        market for such coverage does not exist; and
                            ``(ii) the national flood insurance program 
                        has the capacity to make such coverage 
                        available without borrowing funds from the 
                        Secretary of the Treasury under section 1309 or 
                        otherwise;
            ``(6) the Administrator may provide that, in the case of 
        any commercial property or other residential property, 
        including multifamily rental property, 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 may be made available to every insured 
        upon renewal and every applicant, up to a total amount of 
        $20,000 per property, except that--
                    ``(A) purchase of such coverage shall be at the 
                option of the insured;
                    ``(B) any 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
                    ``(C) the Administrator may make such coverage 
                available only if the Administrator makes a 
                determination and causes notice of such determination 
                to be published in the Federal Register that--
                            ``(i) a competitive private insurance 
                        market for such coverage does not exist; and
                            ``(ii) the national flood insurance program 
                        has the capacity to make such coverage 
                        available without borrowing funds from the 
                        Secretary of the Treasury under section 1309 or 
                        otherwise;''.
    (e) Payment of Premiums in Installments for Residential 
Properties.--Section 1306 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4013) is amended by adding at the end the following new 
subsection:
    ``(d) Payment of Premiums in Installments for Residential 
Properties.--
            ``(1) Authority.--In addition to any other terms and 
        conditions under subsection (a), such regulations shall provide 
        that, in the case of any residential property, premiums for 
        flood insurance coverage made available under this title for 
        such property may be paid in installments.
            ``(2) Limitations.--In implementing the authority under 
        paragraph (1), the Administrator may establish increased 
        chargeable premium rates and surcharges, and deny coverage and 
        establish such other sanctions, as the Administrator considers 
        necessary to ensure that insureds purchase, pay for, and 
        maintain coverage for the full term of a contract for flood 
        insurance coverage or to prevent insureds from purchasing 
        coverage only for periods during a year when risk of flooding 
        is comparatively higher or canceling coverage for periods when 
        such risk is comparatively lower.''.
    (f) Effective Date of Policies Covering Properties Affected by 
Floods in Progress.--Paragraph (1) of section 1306(c) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4013(c)) is amended by adding 
after the period at the end the following: ``With respect to any flood 
that has commenced or is in progress before the expiration of such 30-
day period, such flood insurance coverage for a property shall take 
effect upon the expiration of such 30-day period and shall cover damage 
to such property occurring after the expiration of such period that 
results from such flood, but only if the property has not suffered 
damage or loss as a result of such flood before the expiration of such 
30-day period.''.

SEC. 5. REFORMS OF PREMIUM RATES.

    (a) 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 ``20 percent''.
    (b) Phase-In of Rates for Certain Properties in Newly Mapped 
Areas.--
            (1) In general.--Section 1308 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4015) is amended--
                    (A) in subsection (a), in the matter preceding 
                paragraph (1), by inserting ``or notice'' after 
                ``prescribe by regulation'';
                    (B) in subsection (c), by inserting ``and 
                subsection (g)'' before the first comma; and
                    (C) by adding at the end the following new 
                subsection:
    ``(g) 5-Year Phase-In of Flood Insurance Rates for Certain 
Properties in Newly Mapped Areas.--
            ``(1) 5-year phase-in period.--Notwithstanding subsection 
        (c) or any other provision of law relating to chargeable risk 
        premium rates for flood insurance coverage under this title, 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, becomes designated as such an area, during the 
        5-year period that begins, except as provided in paragraph (2), 
        upon the date that such maps, as issued, revised, updated, or 
        otherwise changed, become effective, the chargeable premium 
        rate for flood insurance under this title with respect to any 
        covered property that is located within such area shall be the 
        rate described in paragraph (3).
            ``(2) Applicability to preferred risk rate areas.--In the 
        case of any area described in paragraph (1) that consists of or 
        includes an area that, as of date of the effectiveness of the 
        flood insurance maps for such area referred to in paragraph (1) 
        as so issued, revised, updated, or changed, is eligible for any 
        reason for preferred risk rate method premiums for flood 
        insurance coverage and was eligible for such premiums as of the 
        enactment of the Flood Insurance Reform Act of 2011, the 5-year 
        period referred to in paragraph (1) for such area eligible for 
        preferred risk rate method premiums shall begin upon the 
        expiration of the period during which such area is eligible for 
        such preferred risk rate method premiums.
            ``(3) Phase-in of full actuarial rates.--With respect to 
        any area described in paragraph (1), the chargeable risk 
        premium rate for flood insurance under this title for a covered 
        property that is located in such area shall be--
                    ``(A) for the first year of the 5-year period 
                referred to in paragraph (1), the greater of--
                            ``(i) 20 percent of the chargeable risk 
                        premium rate otherwise applicable under this 
                        title to the property; and
                            ``(ii) in the case of any property that, as 
                        of the beginning of such first year, is 
                        eligible for preferred risk rate method 
                        premiums for flood insurance coverage, such 
                        preferred risk rate method premium for the 
                        property;
                    ``(B) for the second year of such 5-year period, 40 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property;
                    ``(C) for the third year of such 5-year period, 60 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property;
                    ``(D) for the fourth year of such 5-year period, 80 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property; and
                    ``(E) for the fifth year of such 5-year period, 100 
                percent of the chargeable risk premium rate otherwise 
                applicable under this title to the property.
            ``(4) Covered properties.--For purposes of the subsection, 
        the term `covered property' means any residential property 
        occupied by its owner or a bona fide tenant as a primary 
        residence.''.
            (2) Regulation or notice.--The Administrator of the Federal 
        Emergency Management Agency shall issue an interim final rule 
        or notice to implement this subsection and the amendments made 
        by this subsection as soon as practicable after the date of the 
        enactment of this Act.
    (c) Phase-In of Actuarial Rates for Certain Properties.--
            (1) In general.--Section 1308(c) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4015(c)) is amended--
                    (A) by redesignating paragraph (2) as paragraph 
                (7); and
                    (B) by inserting after paragraph (1) the following 
                new paragraphs:
            ``(2) Commercial properties.--Any nonresidential property.
            ``(3) Second homes and vacation homes.--Any residential 
        property that is not the primary residence of any individual.
            ``(4) Homes sold to new owners.--Any single family property 
        that--
                    ``(A) has been constructed or substantially 
                improved and for which such construction or improvement 
                was started, as determined by the Administrator, before 
                December 31, 1974, or before the effective date of the 
                initial rate map published by the Administrator under 
                paragraph (2) of section 1360(a) for the area in which 
                such property is located, whichever is later; and
                    ``(B) is purchased after the effective date of this 
                paragraph, pursuant to section 5(c)(3)(A) of the Flood 
                Insurance Reform Act of 2011.
            ``(5) Homes damaged or improved.--Any property that, on or 
        after the date of the enactment of the Flood Insurance Reform 
        Act of 2011, has experienced or sustained--
                    ``(A) substantial flood damage exceeding 50 percent 
                of the fair market value of such property; or
                    ``(B) substantial improvement exceeding 30 percent 
                of the fair market value of such property.
            ``(6) Homes with multiple claims.--Any severe repetitive 
        loss property (as such term is defined in section 1366(j)).''.
            (2) Technical amendments.--Section 1308 of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended--
                    (A) in subsection (c)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``the limitations provided under 
                        paragraphs (1) and (2)'' and inserting 
                        ``subsection (e)''; and
                            (ii) in paragraph (1), by striking ``, 
                        except'' and all that follows through 
                        ``subsection (e)''; and
                    (B) in subsection (e), by striking ``paragraph (2) 
                or (3)'' and inserting ``paragraph (7)''.
            (3) Effective date and transition.--
                    (A) Effective date.--The amendments made by 
                paragraphs (1) and (2) shall apply beginning upon the 
                expiration of the 12-month period that begins on the 
                date of the enactment of this Act, except as provided 
                in subparagraph (B) of this paragraph.
                    (B) Transition for properties covered by flood 
                insurance upon effective date.--
                            (i) Increase of rates over time.--In the 
                        case of any property described in paragraph 
                        (2), (3), (4), (5), or (6) of section 1308(c) 
                        of the National Flood Insurance Act of 1968, as 
                        amended by paragraph (1) of this subsection, 
                        that, as of the effective date under 
                        subparagraph (A) of this paragraph, 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) of such 
                        Act for the area in which the property is 
                        located, the Administrator 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).
                            (ii) Amount of 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 
                        subparagraph (A) of this paragraph and once 
                        every 12 months thereafter until such increase 
                        is accomplished, by 20 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 
                        clause (iii)).
                            (iii) Properties subject to phase-in and 
                        annual increases.--In the case of any pre-FIRM 
                        property (as such term is defined in section 
                        578(b) of the National Flood Insurance Reform 
                        Act of 1974), the aggregate increase, during 
                        any 12-month period, in the chargeable premium 
                        rate for the property that is attributable to 
                        this subparagraph or to an increase described 
                        in section 1308(e) of the National Flood 
                        Insurance Act of 1968 may not exceed 20 
                        percent.
                            (iv) Full actuarial rates.--The provisions 
                        of paragraphs (2), (3), (4), (5), and (6) of 
                        such section 1308(c) shall apply to such a 
                        property upon the accomplishment of the 
                        increase under this subparagraph and 
                        thereafter.
    (d) Prohibition of Extension of Subsidized Rates to Lapsed 
Policies.--Section 1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015), as amended by the preceding provisions of this Act, is 
further amended--
            (1) in subsection (e), by inserting ``or subsection (h)'' 
        after ``subsection (c)''; and
            (2) by adding at the end the following new subsection:
    ``(h) Prohibition of Extension of Subsidized Rates to Lapsed 
Policies.--Notwithstanding any other provision of law relating to 
chargeable risk premium rates for flood insurance coverage under this 
title, the Administrator shall not provide flood insurance coverage 
under this title for any property for which a policy for such coverage 
for the property has previously lapsed in coverage as a result of the 
deliberate choice of the holder of such policy, at a rate less than the 
applicable estimated risk premium rates for the area (or subdivision 
thereof) in which such property is located.''.
    (e) Recognition of State and Local Funding for Construction, 
Reconstruction, and Improvement of Flood Protection Systems in 
Determination of Rates.--
            (1) In general.--Section 1307 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4014) is amended--
                    (A) in subsection (e)--
                            (i) 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
                            (ii) 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
                    (B) in subsection (f)--
                            (i) 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;
                            (ii) in the third sentence in the matter 
                        preceding paragraph (1), by inserting ``, 
                        whether coastal or riverine,'' after ``special 
                        flood hazard''; and
                            (iii) 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''.
            (2) Regulations.--The Administrator of the Federal 
        Emergency Management Agency shall promulgate regulations to 
        implement this subsection and the amendments made by this 
        subsection as soon as practicable, but not more than 18 months 
        after the date of the enactment of this Act. Paragraph (3) may 
        not be construed to annul, alter, affect, authorize any waiver 
        of, or establish any exception to, the requirement under the 
        preceding sentence.

SEC. 6. TECHNICAL MAPPING ADVISORY COUNCIL.

    (a) Establishment.--There is established a council to be known as 
the Technical Mapping Advisory Council (in this section referred to as 
the ``Council'').
    (b) Membership.--
            (1) In general.--The Council shall consist of--
                    (A) the Administrator of the Federal Emergency 
                Management Agency (in this section referred to as the 
                ``Administrator''), or the designee thereof;
                    (B) the Director of the United States Geological 
                Survey of the Department of the Interior, or the 
                designee thereof;
                    (C) the Under Secretary of Commerce for Oceans and 
                Atmosphere, or the designee thereof;
                    (D) the commanding officer of the United States 
                Army Corps of Engineers, or the designee thereof;
                    (E) the chief of the Natural Resources Conservation 
                Service of the Department of Agriculture, or the 
                designee thereof;
                    (F) the Director of the United States Fish and 
                Wildlife Service of the Department of the Interior, or 
                the designee thereof;
                    (G) the Assistant Administrator for Fisheries of 
                the National Oceanic and Atmospheric Administration of 
                the Department of Commerce, or the designee thereof; 
                and
                    (H) 14 additional members to be appointed by the 
                Administrator of the Federal Emergency Management 
                Agency, who shall be--
                            (i) an expert in data management;
                            (ii) an expert in real estate;
                            (iii) an expert in insurance;
                            (iv) a member of a recognized regional 
                        flood and storm water management organization;
                            (v) a representative of a State emergency 
                        management agency or association or 
                        organization for such agencies;
                            (vi) a member of a recognized professional 
                        surveying association or organization;
                            (vii) a member of a recognized professional 
                        mapping association or organization;
                            (viii) a member of a recognized 
                        professional engineering association or 
                        organization;
                            (ix) a member of a recognized professional 
                        association or organization representing flood 
                        hazard determination firms;
                            (x) a representative of State national 
                        flood insurance coordination offices;
                            (xi) representatives of two local 
                        governments, at least one of whom is a local 
                        levee flood manager or executive, designated by 
                        the Federal Emergency Management Agency as 
                        Cooperating Technical Partners; and
                            (xii) representatives of two State 
                        governments designated by the Federal Emergency 
                        Management Agency as Cooperating Technical 
                        States.
            (2) Qualifications.--Members of the Council shall be 
        appointed based on their demonstrated knowledge and competence 
        regarding surveying, cartography, remote sensing, geographic 
        information systems, or the technical aspects of preparing and 
        using flood insurance rate maps. In appointing members under 
        paragraph (1)(H), the Administrator shall ensure that the 
        membership of the Council has a balance of Federal, State, 
        local, and private members, and includes an adequate number of 
        representatives from the States with coastline on the Gulf of 
        Mexico and other States containing areas identified by the 
        Administrator of the Federal Emergency Management Agency as at 
        high-risk for flooding or special flood hazard areas.
    (c) Duties.--
            (1) New mapping standards.--Not later than the expiration 
        of the 12-month period beginning upon the date of the enactment 
        of this Act, the Council shall develop and submit to the 
        Administrator and the Congress proposed new mapping standards 
        for 100-year flood insurance rate maps used under the national 
        flood insurance program under the National Flood Insurance Act 
        of 1968. In developing such proposed standards the Council 
        shall--
                    (A) ensure that the flood insurance rate maps 
                reflect true risk, including graduated risk that better 
                reflects the financial risk to each property; such 
                reflection of risk should be at the smallest geographic 
                level possible (but not necessarily property-by-
                property) to ensure that communities are mapped in a 
                manner that takes into consideration different risk 
                levels within the community;
                    (B) ensure the most efficient generation, display, 
                and distribution of flood risk data, models, and maps 
                where practicable through dynamic digital environments 
                using spatial database technology and the Internet;
                    (C) ensure that flood insurance rate maps reflect 
                current hydrologic and hydraulic data, current land 
                use, and topography, incorporating the most current and 
                accurate ground and bathymetric elevation data;
                    (D) determine the best ways to include in such 
                flood insurance rate maps levees, decertified levees, 
                and areas located below dams, including determining a 
                methodology for ensuring that decertified levees and 
                other protections are included in flood insurance rate 
                maps and their corresponding flood zones reflect the 
                level of protection conferred;
                    (E) consider how to incorporate restored wetlands 
                and other natural buffers into flood insurance rate 
                maps, which may include wetlands, groundwater recharge 
                areas, erosion zones, meander belts, endangered species 
                habitat, barrier islands and shoreline buffer features, 
                riparian forests, and other features;
                    (F) consider whether to use vertical positioning 
                (as defined by the Administrator) for flood insurance 
                rate maps;
                    (G) ensure that flood insurance rate maps 
                differentiate between a property that is located in a 
                flood zone and a structure located on such property 
                that is not at the same risk level for flooding as such 
                property due to the elevation of the structure;
                    (H) ensure that flood insurance rate maps take into 
                consideration the best scientific data and potential 
                future conditions (including projections for sea level 
                rise); and
                    (I) consider how to incorporate the new standards 
                proposed pursuant to this paragraph in existing mapping 
                efforts.
            (2) Ongoing duties.--The Council shall, on an ongoing 
        basis, review the mapping protocols developed pursuant to 
        paragraph (1), and make recommendations to the Administrator 
        when the Council determines that mapping protocols should be 
        altered.
            (3) Meetings.--In carrying out its duties under this 
        section, the Council shall consult with stakeholders through at 
        least 4 public meetings annually, and shall seek input of all 
        stakeholder interests including State and local 
        representatives, environmental and conservation organizations, 
        insurance industry representatives, advocacy groups, planning 
        organizations, and mapping organizations.
    (d) Prohibition on Compensation.--Members of the Council shall 
receive no additional compensation by reason of their service on the 
Council.
    (e) Chairperson.--The Administrator shall serve as the Chairperson 
of the Council.
    (f) Staff.--
            (1) FEMA.--Upon the request of the Council, the 
        Administrator may detail, on a nonreimbursable basis, personnel 
        of the Federal Emergency Management Agency to assist the 
        Council in carrying out its duties.
            (2) Other federal agencies.--Upon request of the Council, 
        any other Federal agency that is a member of the Council may 
        detail, on a non-reimbursable basis, personnel to assist the 
        Council in carrying out its duties.
    (g) Powers.--In carrying out this section, the Council may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research, as the Council considers appropriate.
    (h) Termination.--The Council shall terminate upon the expiration 
of the 5-year period beginning on the date of the enactment of this 
Act.
    (i) Moratorium on Flood Map Changes.--
            (1) Moratorium.--Except as provided in paragraph (2) and 
        notwithstanding any other provision of this Act, the National 
        Flood Insurance Act of 1968, or the Flood Disaster Protection 
        Act of 1973, during the period beginning upon the date of the 
        enactment of this Act and ending upon the submission by the 
        Council to the Administrator and the Congress of the proposed 
        new mapping standards required under subsection (c)(1), the 
        Administrator may not make effective any new or updated rate 
        maps for flood insurance coverage under the national flood 
        insurance program that were not in effect for such program as 
        of such date of enactment, or otherwise revise, update, or 
        change the flood insurance rate maps in effect for such program 
        as of such date.
            (2) Letters of map change.--During the period described in 
        paragraph (1), the Administrator may revise, update, and change 
        the flood insurance rate maps in effect for the national flood 
        insurance program only pursuant to a letter of map change 
        (including a letter of map amendment, letter of map revision, 
        and letter of map revision based on fill).

SEC. 7. FEMA INCORPORATION OF NEW MAPPING PROTOCOLS.

    (a) New Rate Mapping Standards.--Not later than the expiration of 
the 6-month period beginning upon submission by the Technical Mapping 
Advisory Council under section 6 of the proposed new mapping standards 
for flood insurance rate maps used under the national flood insurance 
program developed by the Council pursuant to section 6(c), the 
Administrator of the Federal Emergency Management Agency (in this 
section referred to as the ``Administrator'') shall establish new 
standards for such rate maps based on such proposed new standards and 
the recommendations of the Council.
    (b) Requirements.--The new standards for flood insurance rate maps 
established by the Administrator pursuant to subsection (a) shall--
            (1) delineate and include in any such rate maps--
                    (A) all areas located within the 100-year flood 
                plain; and
                    (B) areas subject to graduated and other risk 
                levels, to the maximum extent possible;
            (2) ensure that any such rate maps--
                    (A) include levees, including decertified levees, 
                and the level of protection they confer;
                    (B) reflect current land use and topography and 
                incorporate the most current and accurate ground level 
                data;
                    (C) take into consideration the impacts and use of 
                fill and the flood risks associated with altered 
                hydrology;
                    (D) differentiate between a property that is 
                located in a flood zone and a structure located on such 
                property that is not at the same risk level for 
                flooding as such property due to the elevation of the 
                structure;
                    (E) identify and incorporate natural features and 
                their associated flood protection benefits into mapping 
                and rates; and
                    (F) identify, analyze, and incorporate the impact 
                of significant changes to building and development 
                throughout any river or costal water system, including 
                all tributaries, which may impact flooding in areas 
                downstream; and
            (3) provide that such rate maps are developed on a 
        watershed basis.
    (c) Report.--If, in establishing new standards for flood insurance 
rate maps pursuant to subsection (a) of this section, the Administrator 
does not implement all of the recommendations of the Council made under 
the proposed new mapping standards developed by the Council pursuant to 
section 6(c), upon establishment of the new standards the Administrator 
shall submit a report to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate specifying which such recommendations were 
not adopted and explaining the reasons such recommendations were not 
adopted.
    (d) Implementation.--The Administrator shall, not later than the 
expiration of the 6-month period beginning upon establishment of the 
new standards for flood insurance rate maps pursuant to subsection (a) 
of this section, commence use of the new standards and updating of 
flood insurance rate maps in accordance with the new standards. Not 
later than the expiration of the 10-year period beginning upon the 
establishment of such new standards, the Administrator shall complete 
updating of all flood insurance rate maps in accordance with the new 
standards, subject to the availability of sufficient amounts for such 
activities provided in appropriation Acts.
    (e) Temporary Suspension of Mandatory Purchase Requirement for 
Certain Properties.--
            (1) Submission of elevation certificate.--Subject to 
        paragraphs (2) and (3) of this subsection, subsections (a), 
        (b), and (e) of section 102 of the Flood Disaster Protection 
        Act of 1973 (42 U.S.C. 4012a), and section 202(a) of such Act, 
        shall not apply to a property located in an area designated as 
        having a special flood hazard if the owner of such property 
        submits to the Administrator an elevation certificate for such 
        property showing that the lowest level of the primary residence 
        on such property is at an elevation that is at least three feet 
        higher than the elevation of the 100-year flood plain.
            (2) Review of certificate.--The Administrator shall accept 
        as conclusive each elevation certificate submitted under 
        paragraph (1) unless the Administrator conducts a subsequent 
        elevation survey and determines that the lowest level of the 
        primary residence on the property in question is not at an 
        elevation that is at least three feet higher than the elevation 
        of the 100-year flood plain. The Administrator shall provide 
        any such subsequent elevation survey to the owner of such 
        property.
            (3) Determinations for properties on borders of special 
        flood hazard areas.--
                    (A) Expedited determination.--In the case of any 
                survey for a property submitted to the Administrator 
                pursuant to paragraph (1) showing that a portion of the 
                property is located within an area having special flood 
                hazards and that a structure located on the property is 
                not located within such area having special flood 
                hazards, the Administrator shall expeditiously process 
                any request made by an owner of the property for a 
                determination pursuant to paragraph (2) or a 
                determination of whether the structure is located 
                within the area having special flood hazards.
                    (B) Prohibition of fee.--If the Administrator 
                determines pursuant to subparagraph (A) that the 
                structure on the property is not located within the 
                area having special flood hazards, the Administrator 
                shall not charge a fee for reviewing the flood hazard 
                data and shall not require the owner to provide any 
                additional elevation data.
                    (C) Simplification of review process.--The 
                Administrator shall collaborate with private sector 
                flood insurers to simplify the review process for 
                properties described in subparagraph (A) and to ensure 
                that the review process provides for accurate 
                determinations.
            (4) Termination of authority.--This subsection shall cease 
        to apply to a property on the date on which the Administrator 
        updates the flood insurance rate map that applies to such 
        property in accordance with the requirements of subsection (d).

SEC. 8. TREATMENT OF LEVEES.

    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) Treatment of Levees.--The Administrator may not issue flood 
insurance maps, or make effective updated flood insurance maps, that 
omit or disregard the actual protection afforded by an existing levee, 
floodwall, pump or other flood protection feature, regardless of the 
accreditation status of such feature.''.

SEC. 9. PRIVATIZATION INITIATIVES.

    (a) FEMA and GAO Reports.--Not later than the expiration of the 18-
month period beginning on the date of the enactment of this Act, the 
Administrator of the Federal Emergency Management Agency and the 
Comptroller General of the United States shall each conduct a separate 
study to assess a broad range of options, methods, and strategies for 
privatizing the national flood insurance program and shall each submit 
a report to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate with recommendations for the best manner to 
accomplish such privatization.
    (b) Private Risk-Management Initiatives.--
            (1) Authority.--The Administrator of the Federal Emergency 
        Management Agency may carry out such private risk-management 
        initiatives under the national flood insurance program as the 
        Administrator considers appropriate to determine the capacity 
        of private insurers, reinsurers, and financial markets to 
        assist communities, on a voluntary basis only, in managing the 
        full range of financial risks associated with flooding.
            (2) Assessment.--Not later than the expiration of the 12-
        month period beginning on the date of the enactment of this 
        Act, the Administrator shall assess the capacity of the private 
        reinsurance, capital, and financial markets by seeking 
        proposals to assume a portion of the program's insurance risk 
        and submit to the Congress a report describing the response to 
        such request for proposals and the results of such assessment.
            (3) Protocol for release of data.--The Administrator shall 
        develop a protocol to provide for the release of data 
        sufficient to conduct the assessment required under paragraph 
        (2).
    (c) Reinsurance.--The National Flood Insurance Act of 1968 is 
amended--
            (1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by 
        inserting ``, including as reinsurance of insurance coverage 
        provided by the flood insurance program'' before ``, on such 
        terms'';
            (2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), by 
        inserting ``or reinsurance'' after ``flood insurance 
        coverage'';
            (3) in section 1335(a) (42 U.S.C. 4055(a))--
                    (A) by inserting ``(1)'' after ``(a)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) The Administrator is authorized to secure reinsurance 
coverage of coverage provided by the flood insurance program from 
private market insurance, reinsurance, and capital market sources at 
rates and on terms determined by the Administrator to be reasonable and 
appropriate in an amount sufficient to maintain the ability of the 
program to pay claims and that minimizes the likelihood that the 
program will utilize the borrowing authority provided under section 
1309.'';
            (4) in section 1346(a) (12 U.S.C. 4082(a))--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``, or for purposes of securing reinsurance 
                of insurance coverage provided by the program,'' before 
                ``of any or all of'';
                    (B) in paragraph (1)--
                            (i) by striking ``estimating'' and 
                        inserting ``Estimating''; and
                            (ii) by striking the semicolon at the end 
                        and inserting a period;
                    (C) in paragraph (2)--
                            (i) by striking ``receiving'' and inserting 
                        ``Receiving''; and
                            (ii) by striking the semicolon at the end 
                        and inserting a period;
                    (D) in paragraph (3)--
                            (i) by striking ``making'' and inserting 
                        ``Making''; and
                            (ii) by striking ``; and'' and inserting a 
                        period;
                    (E) in paragraph (4)--
                            (i) by striking ``otherwise'' and inserting 
                        ``Otherwise''; and
                            (ii) by redesignating such paragraph as 
                        paragraph (5); and
                    (F) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) Placing reinsurance coverage on insurance provided by 
        such program.''; and
            (5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), by 
        inserting before the semicolon at the end the following: ``, is 
        subject to the reporting requirements of the Securities 
        Exchange Act of 1934, pursuant to section 13(a) or 15(d) of 
        such Act (15 U.S.C. 78m(a), 78o(d)), or is authorized by the 
        Administrator to assume reinsurance on risks insured by the 
        flood insurance program''.
    (d) Assessment of Claims-Paying Ability.--
            (1) Assessment.--Not later than September 30 of each year, 
        the Administrator of the Federal Emergency Management Agency 
        shall conduct an assessment of the claims-paying ability of the 
        national flood insurance program, including the program's 
        utilization of private sector reinsurance and reinsurance 
        equivalents, with and without reliance on borrowing authority 
        under section 1309 of the National Flood Insurance Act of 1968 
        (42 U.S.C. 4016). In conducting the assessment, the 
        Administrator shall take into consideration regional 
        concentrations of coverage written by the program, peak flood 
        zones, and relevant mitigation measures.
            (2) Report.--The Administrator shall submit a report to the 
        Congress of the results of each such assessment, and make such 
        report available to the public, not later than 30 days after 
        completion of the assessment.

SEC. 10. 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. 11. MITIGATION ASSISTANCE.

    (a) Mitigation Assistance Grants.--Section 1366 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended--
            (1) in subsection (a), by striking the last sentence and 
        inserting the following: ``Such financial assistance shall be 
        made available--
            ``(1) to States and communities in the form of grants under 
        this section for carrying out mitigation activities;
            ``(2) to States and communities in the form of grants under 
        this section for carrying out mitigation activities that reduce 
        flood damage to severe repetitive loss structures; and
            ``(3) to property owners in the form of direct grants under 
        this section for carrying out mitigation activities that reduce 
        flood damage to individual structures for which 2 or more claim 
        payments for losses have been made under flood insurance 
        coverage under this title if the Administrator, after 
        consultation with the State and community, determines that 
        neither the State nor community in which such a structure is 
        located has the capacity to manage such grants.''.
            (2) by striking subsection (b);
            (3) in subsection (c)--
                    (A) by striking ``flood risk'' and inserting 
                ``multi-hazard'';
                    (B) by striking ``provides protection against'' and 
                inserting ``examines reduction of''; and
                    (C) by redesignating such subsection as subsection 
                (b);
            (4) by striking subsection (d);
            (5) in subsection (e)--
                    (A) in paragraph (1), by striking the paragraph 
                designation and all that follows through the end of the 
                first sentence and inserting the following:
            ``(1) Requirement of consistency with approved mitigation 
        plan.--Amounts provided under this section may be used only for 
        mitigation activities that are consistent with mitigation plans 
        that are approved by the Administrator and identified under 
        subparagraph (4).'';
                    (B) by striking paragraphs (2), (3), and (4) and 
                inserting the following new paragraphs:
            ``(2) Requirements of technical feasibility, cost 
        effectiveness, and interest of nfif.--The Administrator may 
        approve only mitigation activities that the Administrator 
        determines are technically feasible and cost-effective and in 
        the interest of, and represent savings to, the National Flood 
        Insurance Fund. In making such determinations, the 
        Administrator shall take into consideration recognized benefits 
        that are difficult to quantify.
            ``(3) Priority for mitigation assistance.--In providing 
        grants under this section for mitigation activities, the 
        Administrator shall give priority for funding to activities 
        that the Administrator determines will result in the greatest 
        savings to the National Flood Insurance Fund, including 
        activities for--
                    ``(A) severe repetitive loss structures;
                    ``(B) repetitive loss structures; and
                    ``(C) other subsets of structures as the 
                Administrator may establish.'';
                    (C) in paragraph (5)--
                            (i) by striking all of the matter that 
                        precedes subparagraph (A) and inserting the 
                        following:
                    ``(4) Eligible activities.--Eligible activities may 
                include--'';
                            (ii) by striking subparagraphs (E) and (H);
                            (iii) by redesignating subparagraphs (D), 
                        (F), and (G) as subparagraphs (E), (G), and 
                        (H);
                            (iv) by inserting after subparagraph (C) 
                        the following new subparagraph:
                    ``(D) elevation, relocation, and floodproofing of 
                utilities (including equipment that serve 
                structures);'';
                            (v) by inserting after subparagraph (E), as 
                        so redesignated by clause (iii) of this 
                        subparagraph, the following new subparagraph:
                    ``(F) the development or update of State, local, or 
                Indian tribal mitigation plans which meet the planning 
                criteria established by the Administrator, except that 
                the amount from grants under this section that may be 
                used under this subparagraph may not exceed $50,000 for 
                any mitigation plan of a State or $25,000 for any 
                mitigation plan of a local government or Indian 
                tribe;'';
                            (vi) in subparagraph (H); as so 
                        redesignated by clause (iii) of this 
                        subparagraph, by striking ``and'' at the end; 
                        and
                            (vii) by adding at the end the following 
                        new subparagraphs:
                    ``(I) other mitigation activities not described in 
                subparagraphs (A) through (G) or the regulations issued 
                under subparagraph (H), that are described in the 
                mitigation plan of a State, community, or Indian tribe; 
                and
                    ``(J) personnel costs for State staff that provide 
                technical assistance to communities to identify 
                eligible activities, to develop grant applications, and 
                to implement grants awarded under this section, not to 
                exceed $50,000 per State in any Federal fiscal year, so 
                long as the State applied for and was awarded at least 
                $1,000,000 in grants available under this section in 
                the prior Federal fiscal year; the requirements of 
                subsections (d)(1) and (d)(2) shall not apply to the 
                activity under this subparagraph.'';
                    (D) by adding at the end the following new 
                paragraph:
            ``(6) Eligibility of demolition and rebuilding of 
        properties.--The Administrator shall consider as an eligible 
        activity the demolition and rebuilding of properties to at 
        least base flood elevation or greater, if required by the 
        Administrator or if required by any State regulation or local 
        ordinance, and in accordance with criteria established by the 
        Administrator.''; and
                    (E) by redesignating such subsection as subsection 
                (c);
            (6) by striking subsections (f), (g), and (h) and inserting 
        the following new subsection:
    ``(d) Matching Requirement.--The Administrator may provide grants 
for eligible mitigation activities as follows:
            ``(1) Severe repetitive loss structures.--In the case of 
        mitigation activities to severe repetitive loss structures, in 
        an amount up to 100 percent of all eligible costs.
            ``(2) Repetitive loss structures.--In the case of 
        mitigation activities to repetitive loss structures, in an 
        amount up to 90 percent of all eligible costs.
            ``(3) Other mitigation activities.-- In the case of all 
        other mitigation activities, in an amount up to 75 percent of 
        all eligible costs.'';
            (7) in subsection (i)--
                    (A) in paragraph (2)--
                            (i) by striking ``certified under 
                        subsection (g)'' and inserting ``required under 
                        subsection (d)''; and
                            (ii) by striking ``3 times the amount'' and 
                        inserting ``the amount''; and
                    (B) by redesignating such subsection as subsection 
                (e);
            (8) in subsection (j)--
                    (A) in paragraph (1), by striking ``Riegle 
                Community Development and Regulatory Improvement Act of 
                1994'' and inserting ``Flood Insurance Reform Act of 
                2011'';
                    (B) by redesignating such subsection as subsection 
                (f); and
            (9) by striking subsections (k) and (m) and inserting the 
        following new subsections:
    ``(g) Failure to Make Grant Award Within 5 Years.--For any 
application for a grant under this section for which the Administrator 
fails to make a grant award within 5 years of the date of application, 
the grant application shall be considered to be denied and any funding 
amounts allocated for such grant applications shall remain in the 
National Flood Mitigation Fund under section 1367 of this title and 
shall be made available for grants under this section.
    ``(h) Limitation on Funding for Mitigation Activities for Severe 
Repetitive Loss Structures.--The amount used pursuant to section 
1310(a)(8) in any fiscal year may not exceed $40,000,000 and shall 
remain available until expended.
    ``(i) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Community.--The term `community' means--
                    ``(A) a political subdivision that--
                            ``(i) has zoning and building code 
                        jurisdiction over a particular area having 
                        special flood hazards, and
                            ``(ii) is participating in the national 
                        flood insurance program; or
                    ``(B) a political subdivision of a State, or other 
                authority, that is designated by political 
                subdivisions, all of which meet the requirements of 
                subparagraph (A), to administer grants for mitigation 
                activities for such political subdivisions.
            ``(2) Repetitive loss structure.--The term `repetitive loss 
        structure' has the meaning given such term in section 1370.
            ``(3) Severe repetitive loss structure.--The term `severe 
        repetitive loss structure' means a structure that--
                    ``(A) is covered under a contract for flood 
                insurance made available under this title; and
                    ``(B) has incurred flood-related damage--
                            ``(i) for which 4 or more separate claims 
                        payments have been made under flood insurance 
                        coverage under this title, with the amount of 
                        each such claim exceeding $15,000, and with the 
                        cumulative amount of such claims payments 
                        exceeding $60,000; or
                            ``(ii) for which at least 2 separate claims 
                        payments have been made under such coverage, 
                        with the cumulative amount of such claims 
                        exceeding the value of the insured 
                        structure.''.
    (b) Elimination of Grants Program for Repetitive Insurance Claims 
Properties.--Chapter I of the National Flood Insurance Act of 1968 is 
amended by striking section 1323 (42 U.S.C. 4030).
    (c) Elimination of Pilot Program for Mitigation of Severe 
Repetitive Loss Properties.--Chapter III of the National Flood 
Insurance Act of 1968 is amended by striking section 1361A (42 U.S.C. 
4102a).
    (d) National Flood Insurance Fund.--Section 1310(a) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
            (1) in paragraph (6), by inserting ``and'' after the 
        semicolon;
            (2) in paragraph (7), by striking the semicolon and 
        inserting a period; and
            (3) by striking paragraphs (8) and (9).
    (e) National Flood Mitigation Fund.--Section 1367 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104d) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) in each fiscal year, from the National Flood 
        Insurance Fund in amounts not exceeding $90,000,000 to remain 
        available until expended, of which--
                    ``(A) not more than $40,000,000 shall be available 
                pursuant to subsection (a) of this section only for 
                assistance described in section 1366(a)(1);
                    ``(B) not more than $40,000,000 shall be available 
                pursuant to subsection (a) of this section only for 
                assistance described in section 1366(a)(2); and
                    ``(C) not more than $10,000,000 shall be available 
                pursuant to subsection (a) of this section only for 
                assistance described in section 1366(a)(3).''.
                    (B) in paragraph (3), by striking ``section 
                1366(i)'' and inserting ``section 1366(e)'';
            (2) in subsection (c), by striking ``sections 1366 and 
        1323'' and inserting ``section 1366'';
            (3) by redesignating subsections (d) and (e) as subsections 
        (f) and (g), respectively; and
            (4) by inserting after subsection (c) the following new 
        subsections:
    ``(d) Prohibition on Offsetting Collections.--Notwithstanding any 
other provision of this title, amounts made available pursuant to this 
section shall not be subject to offsetting collections through premium 
rates for flood insurance coverage under this title.
    ``(e) Continued Availability and Reallocation.--Any amounts made 
available pursuant to subparagraph (A), (B), or (C) of subsection 
(b)(1) that are not used in any fiscal year shall continue to be 
available for the purposes specified in such subparagraph of subsection 
(b)(1) pursuant to which such amounts were made available, unless the 
Administrator determines that reallocation of such unused amounts to 
meet demonstrated need for other mitigation activities under section 
1366 is in the best interest of the National Flood Insurance Fund.''.
    (f) Increased Cost of Compliance Coverage.--Section 1304(b)(4) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)(4)) is 
amended--
            (1) by striking subparagraph (B); and
            (2) by redesignating subparagraphs (C), (D), and (E) as 
        subparagraphs (B), (C), and (D), respectively.

SEC. 12. 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 Administrator, 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 whether section 1308(g) of the National Flood 
        Insurance Act of 1968 applies to properties within such area;
            ``(4) 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
            ``(5) of a general estimate of what similar homeowners in 
        similar areas typically pay for flood insurance coverage, 
        taking into consideration section 1308(g) of the National Flood 
        Insurance Act of 1968.''.

SEC. 13. NOTIFICATION TO MEMBERS OF CONGRESS OF FLOOD MAP REVISIONS AND 
              UPDATES.

    Section 1360 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) Notification to Members of Congress of Map Modernization.--
Upon any revision or update of any floodplain area or flood-risk zone 
pursuant to subsection (f), any decision pursuant to subsection (f)(1) 
that such revision or update is necessary, any issuance of preliminary 
maps for such revision or updating, or any other significant action 
relating to any such revision or update, the Administrator shall notify 
the Senators for each State affected, and each Member of the House of 
Representatives for each congressional district affected, by such 
revision or update in writing of the action taken.''.

SEC. 14. NOTIFICATION AND APPEAL OF MAP CHANGES; NOTIFICATION TO 
              COMMUNITIES 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;
            ``(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; and
            ``(4) by providing written notification, by first class 
        mail, to each owner of real property affected by the proposed 
        elevations of--
                    ``(A) the status of such property, both prior to 
                and after the effective date of the proposed 
                determination, with respect to flood zone and flood 
                insurance requirements under this Act and the Flood 
                Disaster Protection Act of 1973;
                    ``(B) the process under this section to appeal a 
                flood elevation determination; and
                    ``(C) the mailing address and phone number of a 
                person the owner may contact for more information or to 
                initiate an appeal.''.

SEC. 15. 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 Administrator shall, upon entering into a 
contract for flood insurance coverage under this title for any 
property--
            ``(1) provide to the insured sufficient copies of the 
        notice developed pursuant to subsection (b); and
            ``(2) require the insured to provide a copy of the notice, 
        or otherwise provide notification of the information under 
        subsection (b) in the manner that the manager or landlord deems 
        most appropriate, 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) whether 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 Internet site of the Administrator where such 
        information is available.''.

SEC. 16. NOTIFICATION TO POLICY HOLDERS REGARDING DIRECT MANAGEMENT OF 
              POLICY BY FEMA.

    Part C of chapter II of the National Flood Insurance Act of 1968 
(42 U.S.C. 4081 et seq.) is amended by adding at the end the following 
new section:

``SEC. 1349. NOTIFICATION TO POLICY HOLDERS REGARDING DIRECT MANAGEMENT 
              OF POLICY BY FEMA.

    ``(a) Notification.--Not later than 60 days before the date on 
which a transferred flood insurance policy expires, and annually 
thereafter until such time as the Federal Emergency Management Agency 
is no longer directly administering such policy, the Administrator 
shall notify the holder of such policy that--
            ``(1) the Federal Emergency Management Agency is directly 
        administering the policy;
            ``(2) such holder may purchase flood insurance that is 
        directly administered by an insurance company; and
            ``(3) purchasing flood insurance offered under the National 
        Flood Insurance Program that is directly administered by an 
        insurance company will not alter the coverage provided or the 
        premiums charged to such holder that otherwise would be 
        provided or charged if the policy was directly administered by 
        the Federal Emergency Management Agency.
    ``(b) Definition.--In this section, the term `transferred flood 
insurance policy' means a flood insurance policy that--
            ``(1) was directly administered by an insurance company at 
        the time the policy was originally purchased by the policy 
        holder; and
            ``(2) at the time of renewal of the policy, direct 
        administration of the policy was or will be transferred to the 
        Federal Emergency Management Agency.''.

SEC. 17. 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 Internet 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. 18. REIMBURSEMENT FOR COSTS INCURRED BY HOMEOWNERS AND COMMUNITIES 
              OBTAINING LETTERS OF MAP AMENDMENT OR REVISION.

    (a) In General.--Section 1360 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:
    ``(m) Reimbursement.--
            ``(1) Requirement upon bona fide error.--If an owner of any 
        property located in an area described in section 102(i)(3) of 
        the Flood Disaster Protection Act of 1973, or a community in 
        which such a property is located, obtains a letter of map 
        amendment, or a letter of map revision, due to a bona fide 
        error on the part of the Administrator of the Federal Emergency 
        Management Agency, the Administrator shall reimburse such 
        owner, or such entity or jurisdiction acting on such owner's 
        behalf, or such community, as applicable, for any reasonable 
        costs incurred in obtaining such letter.
            ``(2) Reasonable costs.--The Administrator shall, by 
        regulation or notice, determine a reasonable amount of costs to 
        be reimbursed under paragraph (1), except that such costs shall 
        not include legal or attorneys fees. In determining the 
        reasonableness of costs, the Administrator shall only consider 
        the actual costs to the owner or community, as applicable, of 
        utilizing the services of an engineer, surveyor, or similar 
        services.''.
    (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 issue the regulations or notice required under 
section 1360(m)(2) of the National Flood Insurance Act of 1968, as 
added by the amendment made by subsection (a) of this section.

SEC. 19. ENHANCED COMMUNICATION WITH CERTAIN COMMUNITIES DURING MAP 
              UPDATING PROCESS.

    Section 1360 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:
    ``(n) Enhanced Communication With Certain Communities During Map 
Updating Process.--In updating flood insurance maps under this section, 
the Administrator shall communicate with communities located in areas 
where flood insurance rate maps have not been updated in 20 years or 
more and the appropriate State emergency agencies to resolve 
outstanding issues, provide technical assistance, and disseminate all 
necessary information to reduce the prevalence of outdated maps in 
flood-prone areas.''.

SEC. 20. NOTIFICATION TO RESIDENTS NEWLY INCLUDED IN FLOOD HAZARD 
              AREAS.

    Section 1360 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:
    ``(o) Notification to Residents Newly Included in Flood Hazard 
Area.--In revising or updating any areas having special flood hazards, 
the Administrator shall provide to each owner of a property to be newly 
included in such a special flood hazard area, at the time of issuance 
of such proposed revised or updated flood insurance maps, a copy of the 
proposed revised or updated flood insurance maps together with 
information regarding the appeals process under section 1363 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4104).''.

SEC. 21. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF HURRICANE 
              SEASON.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4001 et seq.) is amended by adding at the end the following new 
section:

``SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF HURRICANE 
              SEASON.

    ``In the case of any property that is otherwise in compliance with 
the coverage and building requirements of the national flood insurance 
program, the presence of an enclosed swimming pool located at ground 
level or in the space below the lowest floor of a building after 
November 30 and before June 1 of any year shall have no effect on the 
terms of coverage or the ability to receive coverage for such building 
under the national flood insurance program established pursuant to this 
title, if the pool is enclosed with non-supporting breakaway walls.''.

SEC. 22. INFORMATION REGARDING MULTIPLE PERILS CLAIMS.

    Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4081) is amended by adding at the end the following new subsection:
    ``(d) Information Regarding Multiple Perils Claims.--
            ``(1) In general.--Subject to paragraph (2), if an insured 
        having flood insurance coverage under a policy issued under the 
        program under this title by the Administrator or a company, 
        insurer, or entity offering flood insurance coverage under such 
        program (in this subsection referred to as a `participating 
        company') has wind or other homeowners coverage from any 
        company, insurer, or other entity covering property covered by 
        such flood insurance, in the case of damage to such property 
        that may have been caused by flood or by wind, the 
        Administrator and the participating company, upon the request 
        of the insured, shall provide to the insured, within 30 days of 
        such request--
                    ``(A) a copy of the estimate of structure damage;
                    ``(B) proofs of loss;
                    ``(C) any expert or engineering reports or 
                documents commissioned by or relied upon by the 
                Administrator or participating company in determining 
                whether the damage was caused by flood or any other 
                peril; and
                    ``(D) the Administrator's or the participating 
                company's final determination on the claim.
            ``(2) Timing.--Paragraph (1) shall apply only with respect 
        to a request described in such paragraph made by an insured 
        after the Administrator or the participating company, or both, 
        as applicable, have issued a final decision on the flood claim 
        involved and resolution of all appeals with respect to such 
        claim.''.

SEC. 23. FEMA AUTHORITY TO REJECT TRANSFER OF POLICIES.

    Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4081) is amended by adding at the end the following new subsection:
    ``(e) FEMA Authority to Reject Transfer of Policies.--
Notwithstanding any other provision of this Act, the Administrator may, 
at the discretion of the Administrator, refuse to accept the transfer 
of the administration of policies for coverage under the flood 
insurance program under this title that are written and administered by 
any insurance company or other insurer, or any insurance agent or 
broker.''.

SEC. 24. APPEALS.

    (a) Television and Radio Announcement.--Section 1363 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4104) is amended--
            (1) in subsection (a), by inserting after 
        ``determinations'' by inserting the following: ``by notifying a 
        local television and radio station,''; and
            (2) in the first sentence of subsection (b), by inserting 
        before the period at the end the following: ``and shall notify 
        a local television and radio station at least once during the 
        same 10-day period''.
    (b) Extension of Appeals Period.--Subsection (b) of section 1363 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4104(b)) is 
amended--
            (1) by striking ``(b) The Director'' and inserting ``(b)(1) 
        The Administrator''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Administrator shall grant an extension of the 90-day 
period for appeals referred to in paragraph (1) for 90 additional days 
if an affected community certifies to the Administrator, after the 
expiration of at least 60 days of such period, that the community--
            ``(A) believes there are property owners or lessees in the 
        community who are unaware of such period for appeals; and
            ``(B) will utilize the extension under this paragraph to 
        notify property owners or lessees who are affected by the 
        proposed flood elevation determinations of the period for 
        appeals and the opportunity to appeal the determinations 
        proposed by the Administrator.''.
    (c) Applicability.--The amendments made by subsections (a) and (b) 
shall apply with respect to any flood elevation determination for any 
area in a community that has not, as of the date of the enactment of 
this Act, been issued a Letter of Final Determination for such 
determination under the flood insurance map modernization process.

SEC. 25. RESERVE FUND.

    (a) Establishment.--Chapter I of the National Flood Insurance Act 
of 1968 is amended by inserting after section 1310 (42 U.S.C. 4017) the 
following new section:

``SEC. 1310A. RESERVE FUND.

    ``(a) Establishment of Reserve Fund.--In carrying out the flood 
insurance program authorized by this title, the Administrator shall 
establish in the Treasury of the United States a National Flood 
Insurance Reserve Fund (in this section referred to as the `Reserve 
Fund') which shall--
            ``(1) be an account separate from any other accounts or 
        funds available to the Administrator; and
            ``(2) be available for meeting the expected future 
        obligations of the flood insurance program.
    ``(b) Reserve Ratio.--Subject to the phase-in requirements under 
subsection (d), the Reserve Fund shall maintain a balance equal to--
            ``(1) 1 percent of the sum of the total potential loss 
        exposure of all outstanding flood insurance policies in force 
        in the prior fiscal year; or
            ``(2) such higher percentage as the Administrator 
        determines to be appropriate, taking into consideration any 
        circumstance that may raise a significant risk of substantial 
        future losses to the Reserve Fund.
    ``(c) Maintenance of Reserve Ratio.--
            ``(1) In general.--The Administrator shall have the 
        authority to establish, increase, or decrease the amount of 
        aggregate annual insurance premiums to be collected for any 
        fiscal year necessary--
                    ``(A) to maintain the reserve ratio required under 
                subsection (b); and
                    ``(B) to achieve such reserve ratio, if the actual 
                balance of such reserve is below the amount required 
                under subsection (b).
            ``(2) Considerations.--In exercising the authority under 
        paragraph (1), the Administrator shall consider--
                    ``(A) the expected operating expenses of the 
                Reserve Fund;
                    ``(B) the insurance loss expenditures under the 
                flood insurance program;
                    ``(C) any investment income generated under the 
                flood insurance program; and
                    ``(D) any other factor that the Administrator 
                determines appropriate.
            ``(3) Limitations.--In exercising the authority under 
        paragraph (1), the Administrator shall be subject to all other 
        provisions of this Act, including any provisions relating to 
        chargeable premium rates and annual increases of such rates.
    ``(d) Phase-in Requirements.--The phase-in requirements under this 
subsection are as follows:
            ``(1) In general.--Beginning in fiscal year 2012 and not 
        ending until the fiscal year in which the ratio required under 
        subsection (b) is achieved, in each such fiscal year the 
        Administrator shall place in the Reserve Fund an amount equal 
        to not less than 7.5 percent of the reserve ratio required 
        under subsection (b).
            ``(2) Amount satisfied.--As soon as the ratio required 
        under subsection (b) is achieved, and except as provided in 
        paragraph (3), the Administrator shall not be required to set 
        aside any amounts for the Reserve Fund.
            ``(3) Exception.--If at any time after the ratio required 
        under subsection (b) is achieved, the Reserve Fund falls below 
        the required ratio under subsection (b), the Administrator 
        shall place in the Reserve Fund for that fiscal year an amount 
        equal to not less than 7.5 percent of the reserve ratio 
        required under subsection (b).
    ``(e) Limitation on Reserve Ratio.--In any given fiscal year, if 
the Administrator determines that the reserve ratio required under 
subsection (b) cannot be achieved, the Administrator shall submit a 
report to the Congress that--
            ``(1) describes and details the specific concerns of the 
        Administrator regarding such consequences;
            ``(2) demonstrates how such consequences would harm the 
        long-term financial soundness of the flood insurance program; 
        and
            ``(3) indicates the maximum attainable reserve ratio for 
        that particular fiscal year.
    ``(f) Availability of Amounts.--The reserve ratio requirements 
under subsection (b) and the phase-in requirements under subsection (d) 
shall be subject to the availability of amounts in the National Flood 
Insurance Fund for transfer under section 1310(a)(10), as provided in 
section 1310(f).''.
    (b) Funding.--Subsection (a) of section 1310 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
            (1) in paragraph (8), by striking ``and'' at the end;
            (2) in paragraph (9), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(10) for transfers to the National Flood Insurance 
        Reserve Fund under section 1310A, in accordance with such 
        section.''.

SEC. 26. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUTREACH ACTIVITIES AND 
              COMMUNITY BUILDING CODE ADMINISTRATION GRANTS.

    Section 105(a) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5305(a)) is amended--
            (1) in paragraph (24), by striking ``and'' at the end;
            (2) in paragraph (25), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(26) supplementing existing State or local funding for 
        administration of building code enforcement by local building 
        code enforcement departments, including for increasing 
        staffing, providing staff training, increasing staff competence 
        and professional qualifications, and supporting individual 
        certification or departmental accreditation, and for capital 
        expenditures specifically dedicated to the administration of 
        the building code enforcement department, except that, to be 
        eligible to use amounts as provided in this paragraph--
                    ``(A) a building code enforcement department shall 
                provide matching, non-Federal funds to be used in 
                conjunction with amounts used under this paragraph in 
                an amount--
                            ``(i) in the case of a building code 
                        enforcement department serving an area with a 
                        population of more than 50,000, equal to not 
                        less than 50 percent of the total amount of any 
                        funds made available under this title that are 
                        used under this paragraph;
                            ``(ii) in the case of a building code 
                        enforcement department serving an area with a 
                        population of between 20,001 and 50,000, equal 
                        to not less than 25 percent of the total amount 
                        of any funds made available under this title 
                        that are used under this paragraph; and
                            ``(iii) in the case of a building code 
                        enforcement department serving an area with a 
                        population of less than 20,000, equal to not 
                        less than 12.5 percent of the total amount of 
                        any funds made available under this title that 
                        are used under this paragraph,
                except that the Secretary may waive the matching fund 
                requirements under this subparagraph, in whole or in 
                part, based upon the level of economic distress of the 
                jurisdiction in which is located the local building 
                code enforcement department that is using amounts for 
                purposes under this paragraph, and shall waive such 
                matching fund requirements in whole for any recipient 
                jurisdiction that has dedicated all building code 
                permitting fees to the conduct of local building code 
                enforcement; and
                    ``(B) any building code enforcement department 
                using funds made available under this title for 
                purposes under this paragraph shall empanel a code 
                administration and enforcement team consisting of at 
                least 1 full-time building code enforcement officer, a 
                city planner, and a health planner or similar officer; 
                and
            ``(27) provision of assistance 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 the National Flood Insurance Act of 1968 (42 
        U.S.C. 4001 et seq.), only for carrying out outreach activities 
        to encourage and facilitate the purchase of flood insurance 
        protection under such Act by owners and renters of properties 
        in such communities and to promote educational activities that 
        increase awareness of flood risk reduction; except that--
                    ``(A) amounts used as provided under this paragraph 
                shall be used only for activities designed to--
                            ``(i) identify owners and renters of 
                        properties in communities that participate in 
                        the national flood insurance program, including 
                        owners of residential and commercial 
                        properties;
                            ``(ii) 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;
                            ``(iii) 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;
                            ``(iv) 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;
                            ``(v) encourage such owners and renters to 
                        maintain or acquire such coverage;
                            ``(vi) notify such owners of where to 
                        obtain information regarding how to obtain such 
                        coverage, including a telephone number, mailing 
                        address, and Internet site of the Administrator 
                        of the Federal Emergency Management Agency (in 
                        this paragraph referred to as the 
                        `Administrator') where such information is 
                        available; and
                            ``(vii) educate local real estate agents in 
                        communities participating in the national flood 
                        insurance program regarding the program and the 
                        availability of coverage under the program for 
                        owners and renters of properties in such 
                        communities, and establish coordination and 
                        liaisons with such real estate agents to 
                        facilitate purchase of coverage under the 
                        National Flood Insurance Act of 1968 and 
                        increase awareness of flood risk reduction;
                    ``(B) in any fiscal year, a local governmental 
                agency may not use an amount under this paragraph that 
                exceeds 3 times the amount that the agency certifies, 
                as the Secretary, in consultation with the 
                Administrator, shall require, that the agency will 
                contribute from non-Federal funds to be used with such 
                amounts used under this paragraph only for carrying out 
                activities described in subparagraph (A); and for 
                purposes of this subparagraph, 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 local 
                governmental agency involved, the value of the time and 
                services contributed by volunteers to carry out such 
                services (at a rate determined by the Secretary), and 
                the value of any donated material or building and the 
                value of any lease on a building;
                    ``(C) a local governmental agency that uses amounts 
                as provided under this paragraph may coordinate or 
                contract with other agencies and entities having 
                particular capacities, specialties, or experience with 
                respect to certain populations or constituencies, 
                including elderly or disabled families or persons, to 
                carry out activities described in subparagraph (A) with 
                respect to such populations or constituencies; and
                    ``(D) each local government agency that uses 
                amounts as provided under this paragraph shall submit a 
                report to the Secretary and the Administrator, not 
                later than 12 months after such amounts are first 
                received, which shall include such information as the 
                Secretary and the Administrator jointly consider 
                appropriate to describe the activities conducted using 
                such amounts and the effect of such activities on the 
                retention or acquisition of flood insurance 
                coverage.''.

SEC. 27. TECHNICAL CORRECTIONS.

    (a) Flood Disaster Protection Act of 1973.--The Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4002 et seq.) is amended--
            (1) by striking ``Director'' each place such term appears, 
        except in section 102(f)(3) (42 U.S.C. 4012a(f)(3)), and 
        inserting ``Administrator''; and
            (2) in section 201(b) (42 U.S.C. 4105(b)), by striking 
        ``Director's'' and inserting ``Administrator's''.
    (b) National Flood Insurance Act of 1968.--The National Flood 
Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is amended--
            (1) by striking ``Director'' each place such term appears 
        and inserting ``Administrator''; and
            (2) in section 1363 (42 U.S.C. 4104), by striking 
        ``Director's'' each place such term appears and inserting 
        ``Administrator's''.
    (c) Federal Flood Insurance Act of 1956.--Section 15(e) of the 
Federal Flood Insurance Act of 1956 (42 U.S.C. 2414(e)) is amended by 
striking ``Director'' each place such term appears and inserting 
``Administrator''.

SEC. 28. REQUIRING COMPETITION FOR NATIONAL FLOOD INSURANCE PROGRAM 
              POLICIES.

    (a) Report.--Not later than the expiration of the 90-day period 
beginning upon the date of the enactment of this Act, the Administrator 
of the Federal Emergency Management Agency, in consultation with 
insurance companies, insurance agents and other organizations with 
which the Administrator has contracted, shall submit to the Congress a 
report describing procedures and policies that the Administrator shall 
implement to limit the percentage of policies for flood insurance 
coverage under the national flood insurance program that are directly 
managed by the Agency to not more than 10 percent of the aggregate 
number of flood insurance policies in force under such program.
    (b) Implementation.--Upon submission of the report under subsection 
(a) to the Congress, the Administrator shall implement the policies and 
procedures described in the report. The Administrator shall, not later 
than the expiration of the 12-month period beginning upon submission of 
such report, reduce the number of policies for flood insurance coverage 
that are directly managed by the Agency, or by the Agency's direct 
servicing contractor that is not an insurer, to not more than 10 
percent of the aggregate number of flood insurance policies in force as 
of the expiration of such 12-month period.
    (c) Continuation of Current Agent Relationships.--In carrying out 
subsection (b), the Administrator shall ensure that--
            (1) agents selling or servicing policies described in such 
        subsection are not prevented from continuing to sell or service 
        such policies; and
            (2) insurance companies are not prevented from waiving any 
        limitation such companies could otherwise enforce to limit any 
        such activity.

SEC. 29. STUDIES OF VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE OPTIONS.

    (a) Studies.--The Administrator of the Federal Emergency Management 
Agency and the Comptroller General of the United States shall each 
conduct a separate study to assess options, methods, and strategies for 
offering voluntary community-based flood insurance policy options and 
incorporating such options into the national flood insurance program. 
Such studies shall take into consideration and analyze how the policy 
options would affect communities having varying economic bases, 
geographic locations, flood hazard characteristics or classifications, 
and flood management approaches.
    (b) Reports.--Not later than the expiration of the 18-month period 
beginning on the date of the enactment of this Act, the Administrator 
of the Federal Emergency Management Agency and the Comptroller General 
of the United States shall each submit a report to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate on the results and 
conclusions of the study such agency conducted under subsection (a), 
and each such report shall include recommendations for the best manner 
to incorporate voluntary community-based flood insurance options into 
the national flood insurance program and for a strategy to implement 
such options that would encourage communities to undertake flood 
mitigation activities.

SEC. 30. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN MANAGEMENT 
              CRITERIA.

    Not later than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, the Administrator of the Federal 
Emergency Management Agency shall conduct a study and submit a report 
to the Committee on Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the Senate 
regarding the impact, effectiveness, and feasibility of amending 
section 1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4102) to include widely used and nationally recognized building codes 
as part of the floodplain management criteria developed under such 
section, and shall determine--
            (1) the regulatory, financial, and economic impacts of such 
        a building code requirement on homeowners, States and local 
        communities, local land use policies, and the Federal Emergency 
        Management Agency;
            (2) the resources required of State and local communities 
        to administer and enforce such a building code requirement;
            (3) the effectiveness of such a building code requirement 
        in reducing flood-related damage to buildings and contents;
            (4) the impact of such a building code requirement on the 
        actuarial soundness of the National Flood Insurance Program;
            (5) the effectiveness of nationally recognized codes in 
        allowing innovative materials and systems for flood-resistant 
        construction;
            (6) the feasibility and effectiveness of providing an 
        incentive in lower premium rates for flood insurance coverage 
        under such Act for structures meeting whichever of such widely 
        used and nationally recognized building code or any applicable 
        local building code provides greater protection from flood 
        damage;
            (7) the impact of such a building code requirement on rural 
        communities with different building code challenges than more 
        urban environments; and
            (8) the impact of such a building code requirement on 
        Indian reservations.

SEC. 31. STUDY ON GRADUATED RISK.

    (a) Study.--The National Academy of Sciences shall conduct a study 
exploring methods for understanding graduated risk behind levees and 
the associated land development, insurance, and risk communication 
dimensions, which shall--
            (1) research, review, and recommend current best practices 
        for estimating direct annualized flood losses behind levees for 
        residential and commercial structures;
            (2) rank such practices based on their best value, 
        balancing cost, scientific integrity, and the inherent 
        uncertainties associated with all aspects of the loss estimate, 
        including geotechnical engineering, flood frequency estimates, 
        economic value, and direct damages;
            (3) research, review, and identify current best floodplain 
        management and land use practices behind levees that 
        effectively balance social, economic, and environmental 
        considerations as part of an overall flood risk management 
        strategy;
            (4) identify examples where such practices have proven 
        effective and recommend methods and processes by which they 
        could be applied more broadly across the United States, given 
        the variety of different flood risks, State and local legal 
        frameworks, and evolving judicial opinions;
            (5) research, review, and identify a variety of flood 
        insurance pricing options for flood hazards behind levees which 
        are actuarially sound and based on the flood risk data 
        developed using the top three best value approaches identified 
        pursuant to paragraph (1);
            (6) evaluate and recommend methods to reduce insurance 
        costs through creative arrangements between insureds and 
        insurers while keeping a clear accounting of how much financial 
        risk is being borne by various parties such that the entire 
        risk is accounted for, including establishment of explicit 
        limits on disaster aid or other assistance in the event of a 
        flood; and
            (7) taking into consideration the recommendations pursuant 
        to paragraphs (1) through (3), recommend approaches to 
        communicating the associated risks to community officials, 
        homeowners, and other residents.
    (b) Report.--Not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the National 
Academy of Sciences shall submit a report to the Committees on 
Financial Services and Science, Space, and Technology of the House of 
Representatives and the Committees on Banking, Housing, and Urban 
Affairs and Commerce, Science and Transportation of the Senate on the 
study under subsection (a) including the information and 
recommendations required under such subsection.

SEC. 32. REPORT ON FLOOD-IN-PROGRESS DETERMINATION.

    The Administrator of the Federal Emergency Management Agency shall 
review the processes and procedures for determining that a flood event 
has commenced or is in progress for purposes of flood insurance 
coverage made available under the national flood insurance program 
under the National Flood Insurance Act of 1968 and for providing public 
notification that such an event has commenced or is in progress. In 
such review, the Administrator shall take into consideration the 
effects and implications that weather conditions, such as rainfall, 
snowfall, projected snowmelt, existing water levels, and other 
conditions have on the determination that a flood event has commenced 
or is in progress. Not later than the expiration of the 6-month period 
beginning upon the date of the enactment of this Act, the Administrator 
shall submit a report to the Congress setting forth the results and 
conclusions of the review undertaken pursuant to this section and any 
actions undertaken or proposed actions to be taken to provide for a 
more precise and technical determination that a flooding event has 
commenced or is in progress.

SEC. 33. STUDY ON REPAYING FLOOD INSURANCE DEBT.

    Not later than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, the Administrator of the Federal 
Emergency Management Agency shall submit a report to the Congress 
setting forth a plan for repaying within 10 years all amounts, 
including any amounts previously borrowed but not yet repaid, owed 
pursuant to clause (2) of subsection (a) of section 1309 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)(2)).

SEC. 34. NO CAUSE OF ACTION.

    No cause of action shall exist and no claim may be brought against 
the United States for violation of any notification requirement imposed 
upon the United States by this Act or any amendment made by this Act.

SEC. 35. AUTHORITY FOR THE CORPS OF ENGINEERS TO PROVIDE SPECIALIZED OR 
              TECHNICAL SERVICES.

    (a) In General.--Notwithstanding any other provision of law, upon 
the request of a State or local government, the Secretary of the Army 
may evaluate a levee system that was designed or constructed by the 
Secretary for the purposes of the National Flood Insurance Program 
established under chapter 1 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4011 et seq.).
    (b) Requirements.--A levee system evaluation under subsection (a) 
shall--
            (1) comply with applicable regulations related to areas 
        protected by a levee system;
            (2) be carried out in accordance with such procedures as 
        the Secretary, in consultation with the Administrator of the 
        Federal Emergency Management Agency, may establish; and
            (3) be carried out only if the State or local government 
        agrees to reimburse the Secretary for all cost associated with 
        the performance of the activities.

            Passed the House of Representatives July 12, 2011.

            Attest:

                                                                 Clerk.
112th CONGRESS

  1st Session

                               H. R. 1309

_______________________________________________________________________

                                 AN ACT

To extend the authorization of the national flood insurance program, to 
achieve reforms to improve the financial integrity and stability of the 
program, and to increase the role of private markets in the management 
            of flood insurance risk, and for other purposes.