[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3370 Placed on Calendar Senate (PCS)]
Calendar No. 317
113th CONGRESS
2d Session
H. R. 3370
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 5, 2014
Received; read the first time
March 6, 2014
Read the second time and placed on the calendar
_______________________________________________________________________
AN ACT
To delay the implementation of certain provisions of the Biggert-Waters
Flood Insurance Reform Act of 2012, 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 ``Homeowner Flood
Insurance Affordability Act of 2014''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Definitions.
Sec. 3. Repeal of certain rate increases.
Sec. 4. Restoration of grandfathered rates.
Sec. 5. Requirements regarding annual rate increases.
Sec. 6. Clarification of rates for properties newly mapped into areas
with special flood hazards.
Sec. 7. Premiums and reports.
Sec. 8. Annual premium surcharge.
Sec. 9. Draft affordability framework.
Sec. 10. Risk transfer.
Sec. 11. Monthly installment payment for premiums.
Sec. 12. Optional high-deductible policies for residential properties.
Sec. 13. Exclusion of detached structures from mandatory purchase
requirement.
Sec. 14. Accounting for flood mitigation activities in estimates of
premium rates.
Sec. 15. Home improvement fairness.
Sec. 16. Affordability study and report.
Sec. 17. Flood insurance rate map certification.
Sec. 18. Funds to reimburse homeowners for successful map appeals.
Sec. 19. Flood protection systems.
Sec. 20. Quarterly reports regarding Reserve Fund ratio.
Sec. 21. Treatment of floodproofed residential basements.
Sec. 22. Exemption from fees for certain map change requests.
Sec. 23. Study of voluntary community-based flood insurance options.
Sec. 24. Designation of flood insurance advocate.
Sec. 25. Exceptions to escrow requirement for flood insurance payments.
Sec. 26. Flood mitigation methods for buildings.
Sec. 27. Mapping of non-structural flood mitigation features.
Sec. 28. Clear communications.
Sec. 29. Protection of small businesses, non-profits, houses of
worship, and residences.
Sec. 30. Mapping.
Sec. 31. Disclosure.
SEC. 2. DEFINITIONS.
For purposes of this title, the following definitions shall apply:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Federal Emergency Management Agency.
(2) National flood insurance program.--The term ``National
Flood Insurance Program'' means the program established under
the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.).
SEC. 3. REPEAL OF CERTAIN RATE INCREASES.
(a) Repeal.--
(1) In general.--Section 1307(g) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4014(g)) is amended--
(A) by striking paragraphs (1) and (2);
(B) in paragraph (3), by striking ``as a result of
the deliberate choice of the holder of such policy''
and inserting ``, unless the decision of the policy
holder to permit a lapse in flood insurance coverage
was as a result of the property covered by the policy
no longer being required to retain such coverage''; and
(C) by redesignating paragraphs (3) and (4) as
paragraphs (1) and (2), respectively.
(2) Effective date.--The Administrator shall make available
such rate tables, as necessary to implement the amendments made
by paragraph (1) as if it were enacted as part of the Biggert-
Waters Flood Insurance Reform Act of 2012 (Public Law 112-141;
126 Stat. 957).
(3) Implementation, coordination, and guidance.--
(A) Facilitation of timely refunds.--To ensure the
participation of Write Your Own companies (as such term
is defined in section 100202(a) of the Biggert-Waters
Flood Insurance Reform Act of 2012 (42 U.S.C. 4004(a)),
the Administrator and the Federal Emergency Management
Agency shall consult with Write Your Own companies
throughout the development of guidance and rate tables
necessary to implement the provisions of and the
amendments made by this Act.
(B) Implementation and guidance.--The Administrator
shall issue final guidance and rate tables necessary to
implement the provisions of and the amendments made by
this Act not later than eight months following the date
of the enactment of this Act. Write Your Own companies,
in coordination with the Federal Emergency Management
Agency, shall have not less than six months but not
more than eight months following the issuance of such
final guidance and rate tables to implement the changes
required by such final guidance and rate tables.
(4) Refund of excess premium charges collected.--The
Administrator shall refund directly to insureds any premiums
for flood insurance coverage under the National Flood Insurance
Program collected in excess of the rates required under the
provisions of and amendments made by this section. To allow for
necessary and appropriate implementation of such provisions and
amendments, any premium changes necessary to implement such
provisions and amendments, including any such premium refund
due to policy holders, which shall be paid directly by the
National Flood Insurance Program, shall not be charged or paid
to policyholders by the National Flood Insurance Program until
after the Administrator issues guidance and makes available
such rate tables to implement the provisions of and amendments
made by this Act.
(b) Assumption of Policies at Existing Premium Rates.--The
Administrator shall provide that the purchaser of a property that, as
of the date of such purchase, is covered under an existing flood
insurance policy under this title may assume such existing policy and
coverage for the remainder of the term of the policy at the chargeable
premium rates under such existing policy. Such rates shall continue
with respect to such property until the implementation of subsection
(a).
SEC. 4. RESTORATION OF GRANDFATHERED RATES.
(a) In General.--Section 1308 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4015) is amended--
(1) by striking subsection (h); and
(2) by redesignating subsection (i) as subsection (h).
(b) Effective Date.--The amendments made by subsection (a) shall
take effect as if enacted as part of the Biggert-Waters Flood Insurance
Reform Act of 2012 (Public Law 112-141; 126 Stat. 957).
SEC. 5. REQUIREMENTS REGARDING ANNUAL RATE INCREASES.
Section 1308(e) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(e)) is amended--
(1) in the matter preceding paragraph (1), by striking ``,
the chargeable risk premium rates for flood insurance under
this title for any properties'';
(2) in paragraph (1), by inserting ``the chargeable risk
premium rates for flood insurance under this title for any
properties'' before ``within any'';
(3) in paragraph (2), by inserting ``the chargeable risk
premium rates for flood insurance under this title for any
properties'' before ``described in'';
(4) by redesignating paragraphs (1) and (2), as so amended,
as paragraphs (3) and (4), respectively; and
(5) by inserting before paragraph (3), as so redesignated,
the following new paragraphs:
``(1) the chargeable risk premium rate for flood insurance
under this title for any property may not be increased by more
than 18 percent each year, except--
``(A) as provided in paragraph (4);
``(B) in the case of property identified under
section 1307(g); or
``(C) in the case of a property that--
``(i) is located in a community that has
experienced a rating downgrade under the
community rating system program carried out
under section 1315(b);
``(ii) is covered by a policy with respect
to which the policyholder has--
``(I) decreased the amount of the
deductible; or
``(II) increased the amount of
coverage; or
``(iii) was misrated;
``(2) the chargeable risk premium rates for flood insurance
under this title for any properties initially rated under
section 1307(a)(2) within any single risk classification,
excluding properties for which the chargeable risk premium rate
is not less than the applicable estimated risk premium rate
under section 1307(a)(1), shall be increased by an amount that
results in an average of such rate increases for properties
within the risk classification during any 12-month period of
not less than 5 percent of the average of the risk premium
rates for such properties within the risk classification upon
the commencement of such 12-month period;'';
(6) in paragraph (3) (as so redesignated by paragraph (4)
of this section), by striking ``20 percent'' and inserting ``15
percent''; and
(7) in paragraph (4) (as so redesignated) by paragraph (4)
of this section), by striking ``paragraph (1)'' and inserting
``paragraph (3)''.
SEC. 6. CLARIFICATION OF RATES FOR PROPERTIES NEWLY MAPPED INTO AREAS
WITH SPECIAL FLOOD HAZARDS.
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 by adding at the end the following new subsection:
``(i) Rates for Properties Newly Mapped Into Areas With Special
Flood Hazards.--Notwithstanding subsection (f), the premium rate for
flood insurance under this title that is purchased on or after the date
of the enactment of this subsection--
``(1) on a property located in an area not previously
designated as having special flood hazards and that, pursuant
to any issuance, revision, updating, or other change in a flood
insurance map, becomes designated as such an area; and
``(2) where such flood insurance premium rate is calculated
under subsection (a)(1) of section 1307 (42 U.S.C. 4014(a)(1)),
shall for the first policy year be the preferred risk premium for the
property and upon renewal shall be calculated in accordance with
subsection (e) of this section until the rate reaches the rate
calculated under subsection (a)(1) of section 1307.''.
SEC. 7. PREMIUMS AND REPORTS.
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 by adding at the end the following new subsection:
``(j) Premiums and Reports.--In setting premium risk rates, in
addition to striving to achieve the objectives of this title the
Administrator shall also strive to minimize the number of policies with
annual premiums that exceed one percent of the total coverage provided
by the policy. For any policies premiums that exceed this one percent
threshold, the Administrator shall report such exceptions to the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate.''.
SEC. 8. ANNUAL PREMIUM SURCHARGE.
(a) Premium Surcharge.--Chapter I of the National Flood Insurance
Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting after
section 1308 the following new section:
``SEC. 1308A. PREMIUM SURCHARGE.
``(a) Imposition and Collection.--The Administrator shall impose
and collect an annual surcharge, in the amount provided in subsection
(b), on all policies for flood insurance coverage under the National
Flood Insurance Program that are newly issued or renewed after the date
of the enactment of this section. Such surcharge shall be in addition
to the surcharge under section 1304(b) and any other assessments and
surcharges applied to such coverage.
``(b) Amount.--The amount of the surcharge under subsection (a)
shall be--
``(1) $25, except as provided in paragraph (2); and
``(2) $250, in the case of a policy for any property that
is--
``(A) a non-residential property; or
``(B) a residential property that is not the
primary residence of an individual.
``(c) Termination.--Subsections (a) and (b) shall cease to apply on
the date on which the chargeable risk premium rate for flood insurance
under this title for each property covered by flood insurance under
this title, other than properties for which premiums are calculated
under subsection (e) or (f) of section 1307 or section 1336 of this Act
(42 U.S.C. 4014, 4056) or under section 100230 of the Biggert-Waters
Flood Insurance Reform Act of 2012 (42 U.S.C. 4014 note), is not less
than the applicable estimated risk premium rate under section
1307(a)(1) for such property.''.
(b) Deposit in Reserve Fund.--Subsection (c) of section 1310A of
the National Flood Insurance Act of 1968 (42 U.S.C. 4017a) is amended
by adding at the end the following new paragraph:
``(4) Deposit of premium surcharges.--The Administrator
shall deposit in the Reserve Fund any surcharges collected
pursuant to section 1308A.''.
SEC. 9. DRAFT AFFORDABILITY FRAMEWORK.
(a) In General.--The Administrator shall prepare a draft
affordability framework that proposes to address, via programmatic and
regulatory changes, the issues of affordability of flood insurance sold
under the National Flood Insurance Program, including issues identified
in the affordability study required under section 100236 of the Bigger-
Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 126
Stat. 957).
(b) Criteria.--In carrying out the requirements under subsection
(a), the Administrator shall consider the following criteria:
(1) Accurate communication to consumers of the flood risk
associated with their properties.
(2) Targeted assistance to flood insurance policy holders
based on their financial ability to continue to participate in
the National Flood Insurance Program.
(3) Individual or community actions to mitigate the risk of
flood or lower the cost of flood insurance.
(4) The impact of increases in risk premium rates on
participation in the National Flood Insurance Program.
(5) The impact flood insurance rate map updates have on the
affordability of flood insurance.
(c) Deadline for Submission.--Not later than 18 months after the
date on which the Administrator submits the affordability study
referred to in subsection (a), the Administrator shall submit to the
full Committee on Banking, Housing, and Urban Affairs and the full
Committee on Appropriations of the Senate and the full Committee on
Financial Services and the full Committee on Appropriations of the
House of Representatives the draft affordability framework required
under subsection (a).
(d) Interagency Agreements.--The Administrator may enter into an
agreement with another Federal agency to--
(1) complete the affordability study referred to in
subsection (a); or
(2) prepare the draft affordability framework required
under subsection (a).
(e) Rule of Construction.--Nothing in this section shall be
construed to provide the Administrator with the authority to provide
assistance to homeowners based on affordability that was not available
prior to the enactment of the Biggert-Waters Flood Insurance Reform Act
of 2012 (Public Law 112-141; 126 Stat. 916).
SEC. 10. RISK TRANSFER.
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) Risk Transfer.--The Administrator may secure reinsurance of
coverage provided by the flood insurance program from the private
reinsurance and capital markets 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.''.
SEC. 11. MONTHLY INSTALLMENT PAYMENT FOR PREMIUMS.
(a) In General.--Subsection (g) of section 1308 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended by striking
``either annually or in more frequent installments'' and inserting
``annually or monthly''.
(b) Implementation.--The Administrator shall implement the
requirement under section 1308(g) of the National Flood Insurance Act
of 1968, as amended by subsection (a), not later than the expiration of
the 18-month period beginning on the date of the enactment of this Act.
SEC. 12. OPTIONAL HIGH-DEDUCTIBLE POLICIES FOR RESIDENTIAL PROPERTIES.
Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C.
4013)), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new subsection:
``(e) Optional High-Deductible Policies for Residential
Properties.--
``(1) Availability.--In the case of residential properties,
the Administrator shall make flood insurance coverage
available, at the option of the insured, that provides for a
loss-deductible for damage to the covered property in various
amounts, up to and including $10,000.
``(2) Disclosure.--
``(A) Form.--The Administrator shall provide the
information described in subparagraph (B) clearly and
conspicuously on the application form for flood
insurance coverage or on a separate form, segregated
from all unrelated information and other required
disclosures.
``(B) Information.--The information described in
this subparagraph is--
``(i) information sufficient to inform the
applicant of the availability of the coverage
option required by paragraph (1) to applicants
for flood insurance coverage; and
``(ii) a statement explaining the effect of
a loss-deductible and that, in the event of an
insured loss, the insured is responsible out-
of-pocket for losses to the extent of the
deductible selected.''.
SEC. 13. EXCLUSION OF DETACHED STRUCTURES FROM MANDATORY PURCHASE
REQUIREMENT.
(a) Exclusion.--Subsection (c) of section 102 of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(c)) is amended by adding at the
end the following new paragraph:
``(3) Detached structures.--Notwithstanding any other
provision of this section, flood insurance shall not be
required, in the case of any residential property, for any
structure that is a part of such property but is detached from
the primary residential structure of such property and does not
serve as a residence.''.
(b) RESPA Statement.--Section 5(b) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2604(b)) is amended--
(1) in paragraph (14), by inserting before the period at
the end the following: ``, and the following statement:
`Although you may not be required to maintain flood insurance
on all structures, you may still wish to do so, and your
mortgage lender may still require you to do so to protect the
collateral securing the mortgage. If you choose to not maintain
flood insurance on a structure, and it floods, you are
responsible for all flood losses relating to that
structure.'''; and
(2) by transferring and inserting paragraph (14), as so
amended, after paragraph (13).
SEC. 14. ACCOUNTING FOR FLOOD MITIGATION ACTIVITIES IN ESTIMATES OF
PREMIUM RATES.
Subparagraph (A) of section 1307(a)(1) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(A)) is amended to read as
follows:
``(A) based on consideration of--
``(i) the risk involved and accepted
actuarial principles; and
``(ii) the flood mitigation activities that
an owner or lessee has undertaken on a
property, including differences in the risk
involved due to land use measures,
floodproofing, flood forecasting, and similar
measures,''.
SEC. 15. HOME IMPROVEMENT FAIRNESS.
Section 1307(a)(2)(E)(ii) of the National Flood Insurance Act of
1968 (42 U.S.C. 4014(a)(2)(E)(ii)) is amended by striking ``30
percent'' and inserting ``50 percent''.
SEC. 16. AFFORDABILITY STUDY AND REPORT.
(a) Study Issues.--Subsection (a) of section 100236 of the Biggert-
Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 126
Stat. 957) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(5) options for maintaining affordability if annual
premiums for flood insurance coverage were to increase to an
amount greater than 2 percent of the liability coverage amount
under the policy, including options for enhanced mitigation
assistance and means-tested assistance;
``(6) the effects that the establishment of catastrophe
savings accounts would have regarding long-term affordability
of flood insurance coverage; and
``(7) options for modifying the surcharge under 1308A,
including based on homeowner income, property value or risk of
loss.''.
(b) Timing of Submission.--Notwithstanding the deadline under
section 100236(c) of the Biggert-Waters Flood Insurance Reform Act of
2012 (Public Law 112-141; 126 Stat. 957), not later than 18 months
after the date of enactment of this Act, the Administrator shall submit
to the full Committee on Banking, Housing, and Urban Affairs and the
full Committee on Appropriations of the Senate and the full Committee
on Financial Services and the full Committee on Appropriations of the
House of Representatives the affordability study and report required
under such section 100236.
(c) Affordability Study Funding.--Section 100236(d) of the Biggert-
Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 126
Stat. 957) is amended by striking ``$750,000'' and inserting
``$2,500,000''.
SEC. 17. FLOOD INSURANCE RATE MAP CERTIFICATION.
The Administrator shall implement a flood mapping program for the
National Flood Insurance Program, only after review by the Technical
Mapping Advisory Council, that, when applied, results in technically
credible flood hazard data in all areas where Flood Insurance Rate Maps
are prepared or updated, shall certify in writing to the Congress when
such a program has been implemented, and shall provide to the Congress
the Technical Mapping Advisory Council review report.
SEC. 18. FUNDS TO REIMBURSE HOMEOWNERS FOR SUCCESSFUL MAP APPEALS.
(a) In General.--Section 1363(f) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4104(f)) is amended--
(1) in the first sentence, by inserting after ``as the case
may be,'' the following: ``or, in the case of an appeal that is
resolved by submission of conflicting data to the Scientific
Resolution Panel provided for in section 1363A, the
community,''; and
(2) by striking the second sentence and inserting the
following: ``The Administrator may use such amounts from the
National Flood Insurance Fund established under section 1310 as
may be necessary to carry out this subsection.''.
(b) Conforming Amendments.--Section 1310(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
(1) in paragraph (6), by striking ``and'' at the end;
(2) in paragraph (7), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(8) for carrying out section 1363(f).''.
SEC. 19. FLOOD PROTECTION SYSTEMS.
(a) Adequate Progress on Construction of Flood Protection
Systems.--Section 1307(e) of the National Flood Insurance Act of 1968
(42 U.S.C. 4014(e)) is amended--
(1) in the first sentence, by inserting ``or
reconstruction'' after ``construction'';
(2) by amending the second sentence to read as follows:
``The Administrator shall find that adequate progress on the
construction or reconstruction of a flood protection system,
based on the present value of the completed flood protection
system, has been made only if: (1) 100 percent of the cost of
the system has been authorized; (2) at least 60 percent of the
cost of the system has been appropriated; (3) at least 50
percent of the cost of the system has been expended; and (4)
the system is at least 50 percent completed.''; and
(3) by adding at the end the following: ``Notwithstanding
any other provision of law, in determining whether a community
has made adequate progress on the construction, reconstruction,
or improvement of a flood protection system, the Administrator
shall consider all sources of funding, including Federal,
State, and local funds.''.
(b) Communities Restoring Disaccredited Flood Protection Systems.--
Section 1307(f) of the National Flood Insurance Act of 1968 (42 U.S.C.
4014(f)) is amended by amending the first sentence to read as follows:
``Notwithstanding any other provision of law, this subsection shall
apply to riverine and coastal levees that are located in a community
which has been determined by the Administrator of the Federal Emergency
Management Agency to be in the process of restoring flood protection
afforded by a flood protection system that had been previously
accredited on a Flood Insurance Rate Map as providing 100-year
frequency flood protection but no longer does so, and shall apply
without regard to the level of Federal funding of or participation in
the construction, reconstruction, or improvement of the flood
protection system.''.
SEC. 20. QUARTERLY REPORTS REGARDING RESERVE FUND RATIO.
Subsection (e) of section 1310A of the National Flood Insurance Act
of 1968 (42 U.S.C. 4017a) is amended, in the matter preceding paragraph
(1), by inserting ``, on a calendar quarterly basis,'' after
``submit''.
SEC. 21. TREATMENT OF FLOODPROOFED RESIDENTIAL BASEMENTS.
The Administrator shall continue to extend exceptions and variances
for flood-proofed basements consistent with section 60.6 of title 44,
Code of Federal Regulations, which are effective April 3, 2009; and
section 60.3 of such title, which are effective April 3, 2009.
SEC. 22. EXEMPTION FROM FEES FOR CERTAIN MAP CHANGE REQUESTS.
Notwithstanding any other provision of law, a requester shall be
exempt from submitting a review or processing fee for a request for a
flood insurance rate map change based on a habitat restoration project
that is funded in whole or in part with Federal or State funds,
including dam removal, culvert redesign or installation, or the
installation of fish passage.
SEC. 23. STUDY OF VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE OPTIONS.
(a) Study.--
(1) Study required.--The Administrator shall conduct a
study to assess options, methods, and strategies for making
available voluntary community-based flood insurance policies
through the National Flood Insurance Program.
(2) Considerations.--The study conducted under paragraph
(1) shall--
(A) take into consideration and analyze how
voluntary community-based flood insurance policies--
(i) would affect communities having varying
economic bases, geographic locations, flood
hazard characteristics or classifications, and
flood management approaches; and
(ii) could satisfy the applicable
requirements under section 102 of the Flood
Disaster Protection Act of 1973 (42 U.S.C.
4012a); and
(B) evaluate the advisability of making available
voluntary community-based flood insurance policies to
communities, subdivisions of communities, and areas of
residual risk.
(3) Consultation.--In conducting the study required under
paragraph (1), the Administrator may consult with the
Comptroller General of the United States, as the Administrator
determines is appropriate.
(b) Report by the Administrator.--
(1) Report required.--Not later than 18 months after the
date of enactment of this Act, the Administrator shall submit
to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives a report that contains the results and
conclusions of the study conducted under subsection (a).
(2) Contents.--The report submitted under paragraph (1)
shall include recommendations for--
(A) the best manner to incorporate voluntary
community-based flood insurance policies into the
National Flood Insurance Program; and
(B) a strategy to implement voluntary community-
based flood insurance policies that would encourage
communities to undertake flood mitigation activities,
including the construction, reconstruction, or
improvement of levees, dams, or other flood control
structures.
(c) Report by Comptroller General.--Not later than 6 months after
the date on which the Administrator submits the report required under
subsection (b), the Comptroller General of the United States shall--
(1) review the report submitted by the Administrator; and
(2) submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report that contains--
(A) an analysis of the report submitted by the
Administrator;
(B) any comments or recommendations of the
Comptroller General relating to the report submitted by
the Administrator; and
(C) any other recommendations of the Comptroller
General relating to community-based flood insurance
policies.
SEC. 24. DESIGNATION OF FLOOD INSURANCE ADVOCATE.
(a) In General.--The Administrator shall designate a Flood
Insurance Advocate to advocate for the fair treatment of policy holders
under the National Flood Insurance Program and property owners in the
mapping of flood hazards, the identification of risks from flood, and
the implementation of measures to minimize the risk of flood.
(b) Duties and Responsibilities.--The duties and responsibilities
of the Flood Insurance Advocate designated under subsection (a) shall
be to--
(1) educate property owners and policyholders under the
National Flood Insurance Program on--
(A) individual flood risks;
(B) flood mitigation;
(C) measures to reduce flood insurance rates
through effective mitigation;
(D) the flood insurance rate map review and
amendment process; and
(E) any changes in the flood insurance program as a
result of any newly enacted laws (including this Act);
(2) assist policy holders under the National Flood
Insurance Program and property owners to understand the
procedural requirements related to appealing preliminary flood
insurance rate maps and implementing measures to mitigate
evolving flood risks;
(3) assist in the development of regional capacity to
respond to individual constituent concerns about flood
insurance rate map amendments and revisions;
(4) coordinate outreach and education with local officials
and community leaders in areas impacted by proposed flood
insurance rate map amendments and revisions; and
(5) aid potential policy holders under the National Flood
Insurance Program in obtaining and verifying accurate and
reliable flood insurance rate information when purchasing or
renewing a flood insurance policy.
SEC. 25. EXCEPTIONS TO ESCROW REQUIREMENT FOR FLOOD INSURANCE PAYMENTS.
(a) In General.--Section 102(d)(1) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a(d)(1)) is amended--
(1) in subparagraph (A), in the second sentence, by
striking ``subparagraph (C)'' and inserting ``subparagraph
(B)''; and
(2) in subparagraph (B)--
(A) in clause (ii), by redesignating subclauses (I)
and (II) as items (aa) and (bb), respectively, and
adjusting the margins accordingly;
(B) by redesignating clauses (i) and (ii) as
subclauses (I) and (II), respectively, and adjusting
the margins accordingly;
(C) in the matter preceding subclause (I), as
redesignated by subparagraph (B), by striking ``(A) or
(B), if--'' and inserting the following: ``(A)--
``(i) if--'';
(D) by striking the period at the end and inserting
``; or''; and
(E) by adding at the end the following
``(ii) in the case of a loan that--
``(I) is in a junior or subordinate
position to a senior lien secured by
the same residential improved real
estate or mobile home for which flood
insurance is being provided at the time
of the origination of the loan;
``(II) is secured by residential
improved real estate or a mobile home
that is part of a condominium,
cooperative, or other project
development, if the residential
improved real estate or mobile home is
covered by a flood insurance policy
that--
``(aa) meets the
requirements that the regulated
lending institution is required
to enforce under subsection
(b)(1);
``(bb) is provided by the
condominium association,
cooperative, homeowners
association, or other
applicable group; and
``(cc) the premium for
which is paid by the
condominium association,
cooperative, homeowners
association, or other
applicable group as a common
expense;
``(III) is secured by residential
improved real estate or a mobile home
that is used as collateral for a
business purpose;
``(IV) is a home equity line of
credit;
``(V) is a nonperforming loan; or
``(VI) has a term of not longer
than 12 months.''.
(b) Applicability.--
(1) In general.--
(A) Required application.--The amendments to
section 102(d)(1) of the Flood Disaster Protection Act
of 1973 (42 U.S.C. 4012a(d)(1)) made by section
100209(a) of the Biggert-Waters Flood Insurance Reform
Act of 2012 (Public Law 112-141; 126 Stat. 920) and by
subsection (a) of this section shall apply to any loan
that is originated, refinanced, increased, extended, or
renewed on or after January 1, 2016.
(B) Optional application.--
(i) Definitions.--In this subparagraph--
(I) the terms ``Federal entity for
lending regulation'', ``improved real
estate'', ``regulated lending
institution'', and ``servicer'' have
the meanings given the terms in section
3 of the Flood Disaster Protection Act
of 1973 (42 U.S.C. 4003);
(II) the term ``outstanding loan''
means a loan that--
(aa) is outstanding as of
January 1, 2016;
(bb) is not subject to the
requirement to escrow premiums
and fees for flood insurance
under section 102(d)(1) of the
Flood Disaster Protection Act
of 1973 (42 U.S.C. 4012a(d)(1))
as in effect on July 5, 2012;
and
(cc) would, if the loan had
been originated, refinanced,
increased, extended, or renewed
on or after January 1, 2016, be
subject to the requirements
under section 102(d)(1)(A) of
the Flood Disaster Protection
Act of 1973, as amended; and
(III) the term ``section
102(d)(1)(A) of the Flood Disaster
Protection Act of 1973, as amended''
means section 102(d)(1)(A) of the Flood
Disaster Protection Act of 1973 (42
U.S.C. 4012a(d)(1)(A)), as amended by--
(aa) section 100209(a) of
the Biggert-Waters Flood
Insurance Reform Act of 2012
(Public Law 112-141; 126 Stat.
920); and
(bb) subsection (a) of this
section.
(ii) Option to escrow flood insurance
payments.--Each Federal entity for lending
regulation (after consultation and coordination
with the Federal Financial Institutions
Examination Council) shall, by regulation,
direct that each regulated lending institution
or servicer of an outstanding loan shall offer
and make available to a borrower the option to
have the borrower's payment of premiums and
fees for flood insurance under the National
Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.), including the escrow of such payments,
be treated in the same manner provided under
section 102(d)(1)(A) of the Flood Disaster
Protection Act of 1973, as amended.
(2) Repeal of 2-year delay on applicability.--Subsection
(b) of section 100209 of the Biggert-Waters Flood Insurance
Reform Act of 2012 (Public Law 112-141; 126 Stat. 920) is
repealed.
(3) Rule of construction.--Nothing in this section or the
amendments made by this section shall be construed to
supersede, during the period beginning on July 6, 2012 and
ending on December 31, 2015, the requirements under section
102(d)(1) of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(d)(1)), as in effect on July 5, 2012.
SEC. 26. FLOOD MITIGATION METHODS FOR BUILDINGS.
(a) Guidelines.--
(1) In general.--Section 1361 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4102) is amended by adding at
the end the following new subsection:
``(d) Flood Mitigation Methods for Buildings.--The Administrator
shall establish guidelines for property owners that--
``(1) provide alternative methods of mitigation, other than
building elevation, to reduce flood risk to residential
buildings that cannot be elevated due to their structural
characteristics, including--
``(A) types of building materials; and
``(B) types of floodproofing; and
``(2) inform property owners about how the implementation
of mitigation methods described in paragraph (1) may affect
risk premium rates for flood insurance coverage under the
National Flood Insurance Program.''.
(2) Issuance.--The Administrator shall issue the guidelines
required under section 1361(d) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4102(d)), as added by the amendment made
by paragraph (1) of this subsection, not later than the
expiration of the 1-year period beginning on the date of the
enactment of this Act.
(b) Calculation of Risk Premium Rates.--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 by adding at
the end the following new subsection:
``(k) Consideration of Mitigation Methods.--In calculating the risk
premium rate charged for flood insurance for a property under this
section, the Administrator shall take into account the implementation
of any mitigation method identified by the Administrator in the
guidance issued under section 1361(d) (42 U.S.C. 4102(d)).''.
SEC. 27. MAPPING OF NON-STRUCTURAL FLOOD MITIGATION FEATURES.
Section 100216 of the Biggert-Waters Flood Insurance Reform Act of
2012 (42 U.S.C. 4101b) is amended--
(1) in subsection (b)(1)(A)--
(A) in clause (iv), by striking ``and'' at the end;
(B) by redesignating clause (v) as clause (vi);
(C) by inserting after clause (iv) the following
new clause:
``(v) areas that are protected by non-
structural flood mitigation features; and'';
and
(D) in clause (vi) (as so redesignated), by
inserting before the semicolon at the end the
following: ``and by non-structural flood mitigation
features''; and
(2) in subsection (d)(1)--
(A) by redesignating subparagraphs (A) through (C)
as subparagraphs (B) through (D), respectively;
(B) in subparagraph (C) (as so redesignated), by
striking ``subparagraph (A)'' and inserting
``subparagraph (B)''; and
(C) by inserting before subparagraph (B) (as so
redesignated) the following new subparagraph:
``(A) work with States, local communities, and
property owners to identify areas and features
described in subsection (b)(1)(A)(v);''.
SEC. 28. CLEAR COMMUNICATIONS.
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 by adding at the end the following new subsection:
``(l) Clear Communications.--The Administrator shall clearly
communicate full flood risk determinations to individual property
owners regardless of whether their premium rates are full actuarial
rates.''.
SEC. 29. PROTECTION OF SMALL BUSINESSES, NON-PROFITS, HOUSES OF
WORSHIP, AND RESIDENCES.
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 by adding at the end the following new subsection:
``(m) Protection of Small Businesses, Non-Profits, Houses of
Worship, and Residences.--
``(1) Report.--Not later than 18 months after the date of
the enactment of this section and semiannually thereafter, the
Administrator shall monitor and report to Committee on
Financial Services of the House Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate,
the Administrator's assessment of the impact, if any, of the
rate increases required under subparagraphs (A) and (D) of
section 1307(a)(2) and the surcharges required under section
1308A on the affordability of flood insurance for--
``(A) small businesses with less than 100
employees;
``(B) non-profit entities;
``(C) houses of worship; and
``(D) residences with a value equal to or less than
25 percent of the median home value of properties in
the State in which the property is located.
``(2) Recommendations.--If the Administrator determines
that the rate increases or surcharges described in paragraph
(1) are having a detrimental effect on affordability, including
resulting in lapsed policies, late payments, or other criteria
related to affordability as identified by the Administrator,
for any of the properties identified in subparagraphs (A)
through (D) of such paragraph, the Administrator shall, not
later than 3 months after making such a determination, make
such recommendations as the Administrator considers appropriate
to improve affordability to the Committee on Financial Services
of the House Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate.''.
SEC. 30. MAPPING.
Section 100216(d)(1) of the Biggert-Waters Flood Insurance Reform
Act of 2012 (42 U.S.C. 4101b(d)(1)) is amended--
(1) in subparagraph (B)--
(A) by striking ``subparagraph (A)'' and inserting
``subparagraph (D)''; and
(B) by striking ``and'' at the end;
(2) by redesignating subparagraphs (A), (B), and (C) as
subparagraphs (D), (E), and (G), respectively;
(3) by inserting before subparagraph (B), as so
redesignated, the following new subparagraphs:
``(A) before commencement of any mapping or map
updating process, notify each community affected of the
model or models that the Administrator plans to use in
such process and provide an explanation of why such
model or models are appropriate;
``(B) provide each community affected a 30-day
period beginning upon notification under subparagraph
(A) to consult with the Administrator regarding the
appropriateness, with respect to such community, of the
mapping model or models to be used; provided that
consultation by a community pursuant to this
subparagraph shall not waive or otherwise affect any
right of the community to appeal any flood hazard
determinations;
``(C) upon completion of the first Independent Data
Submission, transmit a copy of such Submission to the
affected community, provide the affected community a
30-day period during which the community may provide
data to Administrator that can be used to supplement or
modify the existing data, and incorporate any data that
is consistent with prevailing engineering
principles;''; and
(4) by inserting after subparagraph (E), as so
redesignated, the following new subparagraph:
``(F) not less than 30 days before issuance of any
preliminary map, notify the Senators for each State
affected and each Member of the House of
Representatives for each congressional district
affected by the preliminary map in writing of--
``(i) the estimated schedule for--
``(I) community meetings regarding
the preliminary map;
``(II) publication of notices
regarding the preliminary map in local
newspapers; and
``(III) the commencement of the
appeals process regarding the map; and
``(ii) the estimated number of homes and
businesses that will be affected by changes
contained in the preliminary map, including how
many structures will be that were not
previously located in an area having special
flood hazards will be located within such an
area under the preliminary map; and''.
SEC. 31. DISCLOSURE.
(a) Changes in Rates Resulting From This Act.--Not later than the
date that is 6 months before the date on which any change in risk
premium rates for flood insurance coverage under the National Flood
Insurance Program resulting from this Act or any amendment made by this
Act is implemented, the Administrator shall make publicly available the
rate tables and underwriting guidelines that provide the basis for the
change.
(b) Report on Policy and Claims Data.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall submit to the
Congress a report on the feasibility of--
(A) releasing property-level policy and claims data
for flood insurance coverage under the National Flood
Insurance Program; and
(B) establishing guidelines for releasing property-
level policy and claims data for flood insurance
coverage under the National Flood Insurance Program in
accordance with section 552a of title 5, United States
Code (commonly known as the Privacy Act of 1974).
(2) Contents.--The report submitted under paragraph (1)
shall include--
(A) an analysis and assessment of how releasing
property-level policy and claims data for flood
insurance coverage under the National Flood Insurance
Program will aid policy holders and insurers to
understand how the Administration determines actuarial
premium rates and assesses flood risks; and
(B) recommendations for protecting personal
information in accordance with section 552a of title 5,
United States Code (commonly known as the Privacy Act
of 1974).
Passed the House of Representatives March 4, 2014.
Attest:
KAREN L. HAAS,
Clerk.
Calendar No. 317
113th CONGRESS
2d Session
H. R. 3370
_______________________________________________________________________
AN ACT
To delay the implementation of certain provisions of the Biggert-Waters
Flood Insurance Reform Act of 2012, and for other purposes.
_______________________________________________________________________
March 6, 2014
Read the second time and placed on the calendar