[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2874 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 2874

 To achieve reforms to improve the financial stability of the National 
 Flood Insurance Program, to enhance the development of more accurate 
  estimates of flood risk through new technology and better maps, to 
    increase the role of private markets in the management of flood 
   insurance risks, and to provide for alternative methods to insure 
              against flood peril, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2017

  Mr. Duffy introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To achieve reforms to improve the financial stability of the National 
 Flood Insurance Program, to enhance the development of more accurate 
  estimates of flood risk through new technology and better maps, to 
    increase the role of private markets in the management of flood 
   insurance risks, and to provide for alternative methods to insure 
              against flood peril, 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 ``21st Century Flood 
Reform Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
           TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION

Sec. 101. Annual limitation on premium increases.
Sec. 102. Flood insurance affordability program.
Sec. 103. Disclosure of premium methodology.
Sec. 104. Consideration of coastal and inland locations in premium 
                            rates.
Sec. 105. Monthly installment payment of premiums.
Sec. 106. Enhanced clear communication of flood risks.
Sec. 107. Availability of flood insurance information upon request.
TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT

Sec. 201. Elimination of non-compete requirement.
Sec. 202. Public availability of program information.
Sec. 203. Refund of premiums upon cancellation of policy because of 
                            replacement with private flood insurance.
Sec. 204. GAO study of flood damage savings accounts.
Sec. 205. Demonstration program for flood damage savings accounts.
                      TITLE III--MAPPING FAIRNESS

Sec. 301. Use of other risk assessment tools in determining premium 
                            rates.
Sec. 302. Appeals regarding existing flood maps.
Sec. 303. Appeals and publication of projected special flood hazard 
                            areas.
Sec. 304. Communication and outreach regarding map changes.
    TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED 
                               MITIGATION

Sec. 401. Provision of Community Rating System premium credits to 
                            maximum number of communities practicable.
                       TITLE V--PROGRAM INTEGRITY

Sec. 501. Independent actuarial review.
Sec. 502. Adjustments to homeowner flood insurance affordability 
                            surcharge.
Sec. 503. National Flood Insurance Reserve Fund compliance.
Sec. 504. Designation and treatment of multiple-loss properties.
Sec. 505. Elimination of coverage for properties with excessive 
                            lifetime claims.
Sec. 506. Addressing tomorrow's high-risk structures today.
Sec. 507. Allowance for Write Your Own companies.
Sec. 508. Enforcement of mandatory purchase requirements.
Sec. 509. Satisfaction of mandatory purchase requirement in States 
                            requiring flood coverage in all-perils 
                            policies.
Sec. 510. Flood insurance purchase requirements.

           TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION

SEC. 101. ANNUAL LIMITATION ON PREMIUM INCREASES.

    Section 1308(e) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(e)) is amended--
            (1) in paragraph (1), by striking ``18 percent'' and 
        inserting ``15 percent''; and
            (2) in paragraph (2), by striking ``5 percent'' and 
        inserting ``8 percent''.

SEC. 102. FLOOD INSURANCE AFFORDABILITY PROGRAM.

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

``SEC. 1326. FLOOD INSURANCE AFFORDABILITY PROGRAM.

    ``(a) Authority.--The Administrator shall carry out a program under 
this section to provide financial assistance, through State programs 
carried out by participating States, for eligible low-income households 
residing in eligible properties to purchase policies for flood 
insurance coverage made available under this title.
    ``(b) Participation.--Participation in the program under this 
section shall be voluntary on the part of a State or consortium of 
States.
    ``(c) State Administration.--Each participating State shall 
delegate to a State agency or nonprofit organization the 
responsibilities for administrating the State's program under this 
section.
    ``(d) Eligible Households.--
            ``(1) In general.--During any fiscal year, assistance under 
        the program under this section may be provided only for a 
        household that has an income, as determined for such fiscal 
        year by the participating State in which such household 
        resides, that is less than the income limitation established 
        for such fiscal year for purposes of the State program by the 
        participating State, except that--
                    ``(A) assistance under the program under this 
                section may not be provided for a household having a 
                income that exceeds the greater of--
                            ``(i) the amount equal to 150 percent of 
                        the poverty level for such State; or
                            ``(ii) the amount equal to 60 percent of 
                        the median income of households residing in 
                        such State; and
                    ``(B) a State may not exclude a household from 
                eligibility in a fiscal year solely on the basis of 
                household income if such income is less than 110 
                percent of the poverty level for the State in which 
                such household resides.
            ``(2) State verification of income eligibility.--In 
        verifying income eligibility for purposes of paragraph (1), the 
        participating State may apply procedures and policies 
        consistent with procedures and policies used by the State 
        agency administering programs under part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.), under title XX of 
        the Social Security Act (42 U.S.C. 1397 et seq.), under 
        subtitle B of title VI of the Omnibus Budget Reconciliation Act 
        of 1981 (42 U.S.C. 9901 et seq.; relating to community services 
        block grant program), under any other provision of law that 
        carries out programs which were administered under the Economic 
        Opportunity Act of 1964 (42 U.S.C. 2701 et seq.) before August 
        13, 1981, or under other income assistance or service programs 
        (as determined by the State).
            ``(3) Certification by state of eligibility households.--
        For each fiscal year, each participating State shall certify to 
        the Administrator compliance of households who are to be 
        provided assistance under the State program during such fiscal 
        year with the income requirements under paragraph (1).
    ``(e) Eligible Properties.--Assistance under the program under this 
section may be provided only for a residential property--
            ``(1) that has 4 or fewer residences;
            ``(2) that is owned and occupied by an eligible household;
            ``(3) for which a base flood elevation is identified on a 
        flood insurance rate map of the Administrator that is in 
        effect;
            ``(4) for which such other information is available as the 
        Administrator considers necessary to determine the flood risk 
        associated with such property; and
            ``(5) that is located in a community that is participating 
        in the national flood insurance program.
    ``(f) Types of Assistance.--Under the program under this section, a 
participating State shall elect to provide financial assistance for 
eligible households in one of the following forms:
            ``(1) Limitation on rate increases.--By establishing a 
        limitation on the rate of increases in the amount of chargeable 
        premiums paid by eligible households for flood insurance 
        coverage made available under this title.
            ``(2) Limitation on rates.--By establishing a limitation on 
        the amount of chargeable premiums paid by eligible households 
        for flood insurance coverage made available under this title.
    ``(g) Notification to FEMA.--Under the program under this section, 
a participating State shall, on a fiscal year basis and at the time and 
in the manner provided by the Administrator--
            ``(1) identify for the Administrator the eligible 
        households residing in the State who are to be provided 
        assistance under the State program during such fiscal year; and
            ``(2) notify the Administrator of the type and levels of 
        assistance elected under subsection (f) to be provided under 
        the State program with respect to such eligible households 
        residing in the State.
    ``(h) Amount of Assistance.--Under the program under this section, 
in each fiscal year the Administrator shall, notwithstanding section 
1308, make flood insurance coverage available for purchase by 
households identified as eligible households for such fiscal year by a 
participating State pursuant to subsection (e) at chargeable premium 
rates that are discounted by an amount that is based on the type and 
levels of assistance elected pursuant to subsection (f) by the 
participating State for such fiscal year.
    ``(i) Billing Statement.--In the case of an eligible household for 
which assistance under the program under this section is provided with 
respect to a policy for flood insurance coverage, the annual billing 
statement for such policy shall include statements of the following 
amounts:
            ``(1) The estimated risk premium rate for the property 
        under section 1307(a)(1).
            ``(2) If applicable, the estimated risk premium rate for 
        the property under section 1307(a)(2).
            ``(3) The chargeable risk premium rate for the property 
        taking into consideration the discount pursuant to subsection 
        (h).
            ``(4) The amount of the discount pursuant to subsection (h) 
        for the property.
            ``(5) The number and dollar value of claims filed for the 
        property, over the life of the property, under a flood 
        insurance policy made available under the Program and the 
        effect, under this Act, of filing any further claims under a 
        flood insurance policy with respect to that property.
    ``(j) Funding Through State Affordability Surcharges.--
            ``(1) Imposition and collection.--Notwithstanding section 
        1308, for each fiscal year in which flood insurance coverage 
        under this title is made available for properties in a 
        participating State at chargeable premium rates that are 
        discounted pursuant to subsection (f), the Administrator shall 
        impose and collect a State affordability surcharge on each 
        policy for flood insurance coverage for a property located in 
        such participating State that is (A) not a residential property 
        having 4 or fewer residences, or (B) is such a residential 
        property but is owned by a household that is not an eligible 
        household for purposes of such fiscal year.
            ``(2) Amount.--The amount of the State affordability 
        surcharge imposed during a fiscal year on each such policy for 
        a property in a participating State shall be--
                    ``(A) sufficient such that the aggregate amount of 
                all such State affordability surcharges imposed on 
                properties in such participating State during such 
                fiscal year is equal to the aggregate amount by which 
                all policies for flood insurance coverage under this 
                title sold during such fiscal year for properties owned 
                by eligible households in the participating State are 
                discounted pursuant to subsection (f); and
                    ``(B) the same amount for each property in the 
                participating State being charged such a surplus.
    ``(k) Treatment of Other Surcharges.--The provision of assistance 
under the program under this section with respect to any property and 
any limitation on premiums or premium increases pursuant to subsection 
(f) for the property shall not affect the applicability or amount of 
any surcharge under section 1308A for the property, of any increase in 
premiums charged for the property pursuant to section 1310A(c), or of 
any equivalency fee under section 1308B for the property.
    ``(l) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Participating state.--The term `participating State' 
        means, with respect to a fiscal year, a State that is 
        participating in the program under this section for such fiscal 
        year.
            ``(2) Eligible household.--The term `eligible household' 
        means, with respect to a fiscal year and a participating State, 
        a household that has an income that is less than the amount of 
        the income limitation for the fiscal year established for 
        purposes of the State program of such participating State 
        pursuant to subsection (g)(1).
            ``(3) Poverty level.--The term `poverty level'' means, with 
        respect to a household in any State, the income poverty line as 
        prescribed and revised at least annually pursuant to section 
        673(2) of the Community Services Block Grant Act (42 U.S.C. 
        9902(2)), as applicable to such State.
            ``(4) State.--The term `State' shall include a consortium 
        of States established for purposes of administrating the 
        program under this section with respect to the member States of 
        the consortium.
            ``(5) State program.--The term `State program' means a 
        program carried out in compliance with this section by a 
        participating State in conjunction with the program under this 
        section of the Administrator.
    ``(m) Regulations.--The Administrator shall issue such regulations 
as may be necessary to carry out the program under this section.''.

SEC. 103. DISCLOSURE OF PREMIUM METHODOLOGY.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015) is amended by adding at the end the following new subsection:
    ``(n) Disclosure of Premium Methodology.--
            ``(1) Disclosure.--Six months prior to the effective date 
        of risk premium rates, the Administrator shall cause to be 
        published in the Federal Register an explanation of the bases 
        for, and methodology used to determine, the chargeable premium 
        rates to be effective for flood insurance coverage under this 
        title.
            ``(2) Alignment with industry practices.--The disclosure 
        required under paragraph (1) shall, to the extent practicable, 
        be aligned with industry patterns and practices and shall 
        include information and data recommended by the State insurance 
        commissioners guidelines on rate filings.
            ``(3) Public meetings.--The Administrator shall, on an 
        annual basis, hold at least one public meeting in each of the 
        geographical regions of the United States, as defined by the 
        Administrator for purposes of the National Flood Insurance 
        Program, for the purpose of explaining the methodology 
        described in paragraph (1) and answering questions and 
        receiving comments regarding such methodology. The 
        Administrator shall provide notice of each such public meeting 
        in advance, in such manner, and in using such means as are 
        reasonably designed to notify interested parties and members of 
        the public of the date and time, location, and purpose of such 
        meeting, and of how to submit questions or comments.''.

SEC. 104. CONSIDERATION OF COASTAL AND INLAND LOCATIONS IN PREMIUM 
              RATES.

    (a) 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--
            (1) in clause (i), by striking ``and'' at the end; and
            (2) by adding at the end the following new clause:
                            ``(iii) the differences in flood risk for 
                        properties located in coastal areas and 
                        properties located inland; and''.
    (b) Establishment of Chargeable Premium Rates.--Paragraph (1) of 
section 1308(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015(b)(1)) is amended by inserting ``due to differences in flood risk 
for properties located in coastal areas and properties located inland 
and'' after ``including differences in risks''.
    (c) Revised Rates.--Not later than the expiration of the two-year 
period beginning on the date of the enactment of this Act, the 
Administrator of the Federal Emergency Management Agency shall revise 
risk premium rates under the National Flood Insurance Program to 
implement the amendments made by this section.

SEC. 105. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.

    Subsection (g) of section 1308 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015(g)) is amended--
            (1) by striking the subsection designation and all that 
        follows through ``With respect'' and inserting the following:
    ``(g) Frequency of Premium Collection.--
            ``(1) Options.--With respect''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Monthly installment payment of premiums.--
                    ``(A) Exemption from rulemaking.--Until such time 
                as the Administrator promulgates regulations 
                implementing paragraph (1) of this subsection, the 
                Administrator may adopt policies and procedures, 
                notwithstanding any other provisions of law and in 
                alignment and consistent with existing industry escrow 
                and servicing standards, necessary to implement such 
                paragraph without undergoing notice and comment 
                rulemaking and without conducting regulatory analyses 
                otherwise required by statute, regulation, or Executive 
                order.
                    ``(B) Installment plan fee.--The Administrator may 
                charge policyholders choosing to pay premiums in 
                monthly installments a fee not to exceed $50 annually.
                    ``(C) Pilot program.--The Administrator may 
                initially implement paragraph (1) of this subsection as 
                a pilot program that provides for a gradual phase-in of 
                implementation.''.

SEC. 106. ENHANCED CLEAR COMMUNICATION OF FLOOD RISKS.

    (a) In General.--Subsection (l) of section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(l)) is amended to read as 
follows:
    ``(l) Clear Communications.--
            ``(1) Newly issued and renewed policies.--For all policies 
        for flood insurance coverage under the National Flood Insurance 
        Program that are newly issued or renewed, the Administrator 
        shall clearly communicate to policyholders--
                    ``(A) their full flood risk determinations, 
                regardless of whether their premium rates are full 
                actuarial rates; and
                    ``(B) the number and dollar value of claims filed 
                for the property, over the life of the property, under 
                a flood insurance policy made available under the 
                Program and the effect, under this Act, of filing any 
                further claims under a flood insurance policy with 
                respect to that property.''.
    (b) Effective Date.--Subsection (l) of section 1308 of the National 
Flood Insurance Act of 1968, as added by subsection (a) of this 
section, shall take effect beginning upon the expiration of the 12-
month period that begins on the date of the enactment of this Act. Such 
subsection (l), as in effect immediately before the amendment made by 
paragraph (1), shall apply during such 12-month period.

SEC. 107. AVAILABILITY OF FLOOD INSURANCE INFORMATION UPON REQUEST.

    Section 1313 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4020) is amended--
            (1) by inserting ``(a) Public Information and Data.--'' 
        after ``Sec. 1313.''; and
            (2) by adding at the end the following new subsection:
    ``(b) Availability of Flood Insurance Information Upon Request.--
Not later than 30 days after a request for such information by the 
current owner of a property, the Administrator shall provide to the 
owner any information, including historical information, available to 
the Administrator on flood insurance program coverage, payment of 
claims, and flood damages for the property at issue, and any 
information the Administrator has on whether the property owner may be 
required to purchase coverage under the National Flood Insurance 
Program due to previous receipt of Federal disaster assistance, 
including assistance provided by the Small Business Administration, the 
Department of Housing and Urban Development, or the Federal Emergency 
Management Agency, or any other type of assistance that subjects the 
property to the mandatory purchase requirement under section 102 of the 
Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a).''.

TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT

SEC. 201. ELIMINATION OF NON-COMPETE REQUIREMENT.

    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:
    ``(f) Authority To Provide Other Flood Coverage.--
            ``(1) In general.--The Administrator may not, as a 
        condition of participating in the Write Your Own Program (as 
        such term is defined in section 1370(a)) or in otherwise 
        participating in the utilization by the Administrator of the 
        facilities and services of insurance companies, insurers, 
        insurance agents and brokers, and insurance adjustment 
        organizations pursuant to the authority in this section, nor as 
        a condition of eligibility to engage in any other activities 
        under the National Flood Insurance Program under this title, 
        restrict any such company, insurer, agent, broker, or 
        organization from offering and selling private flood insurance 
        (as such term is defined in section 102(b)(9) of the Flood 
        Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)(9))).
            ``(2) Financial assistance/subsidy arrangement.--After the 
        date of the enactment of this subsection--
                    ``(A) the Administrator may not include in any 
                agreement entered into with any insurer for 
                participation in the Write Your Own Program any 
                provision establishing a condition prohibited by 
                paragraph (1), including the provisions of Article XIII 
                of the Federal Emergency Management Agency, Federal 
                Insurance Administration, Financial Assistance/Subsidy 
                Arrangement, as adopted pursuant to section 62.23(a) of 
                title 44 of the Code of Federal Regulations; and
                    ``(B) any such provision in any such agreement 
                entered into before such date of enactment shall not 
                have any force or effect, and the Administrator may not 
                take any action to enforce such provision.''.

SEC. 202. PUBLIC AVAILABILITY OF PROGRAM INFORMATION.

    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. PUBLIC AVAILABILITY OF PROGRAM INFORMATION.

    ``(a) Flood Risk Information.--
            ``(1) In general.--Except as provided in paragraph (2), to 
        facilitate the National Flood Insurance Program becoming a 
        source of information and data for research and development of 
        technology that better understands flooding, the risk of 
        flooding, and the predictability of perils of flooding, the 
        Administrator shall make publicly available all data, models, 
        assessments, analytical tools, and other information in the 
        possession of the Administrator relating to the National Flood 
        Insurance Program under this title that is used in assessing 
        flood risk or identifying and establishing flood elevations and 
        premiums, including--
                    ``(A) data relating to risk on individual 
                properties and loss ratio information and other 
                information identifying losses under the program;
                    ``(B) current and historical policy information, 
                limited to the amount and term only, for properties 
                currently covered by flood insurance and for properties 
                that are no longer covered by flood insurance;
                    ``(C) current and historical claims information, 
                limited to the date and amount paid only, for 
                properties currently covered by flood insurance and for 
                properties that are no longer covered by flood 
                insurance;
                    ``(D) identification of whether a property was 
                constructed before or after the effective date of the 
                first flood insurance rate map for a community;
                    ``(E) identification of properties that have been 
                mitigated through elevation, a buyout, or any other 
                mitigation action; and
                    ``(F) identification of unmitigated multiple-loss 
                properties.
            ``(2) Open source data system.--In carrying out paragraph 
        (1), the Administrator shall establish an open source data 
        system by which all information required to be made publicly 
        available by such subsection may be accessed by the public on 
        an immediate basis by electronic means.
    ``(b) Community Information.--Not later than the expiration of the 
12-month period beginning upon the date of the enactment of this 
section, the Administrator shall establish and maintain a publicly 
searchable database that provides information about each community 
participating in the National Flood Insurance Program, which shall 
include the following information:
            ``(1) The status of the community's compliance with the 
        National Flood Insurance Program, including any findings of 
        noncompliance, the status of any enforcement actions initiated 
        by a State or by the Administrator, and the number of days of 
        any such continuing noncompliance.
            ``(2) The number of properties located in the community's 
        special flood hazard areas that were built before the effective 
        date of the first flood insurance rate map for the community.
            ``(3) The number of properties located in the community's 
        special flood hazard areas that were built after the effective 
        date of the first flood insurance rate map for the community.
            ``(4) The total number of current and historical claims 
        located outside the community's special flood hazard areas.
            ``(5) The total number of multiple-loss properties in the 
        community.
            ``(6) The portion of the community, stated as a percentage 
        and in terms of square miles, that is located within special 
        flood hazard areas.
    ``(c) Identification of Properties.--The information provided 
pursuant to subsections (a) and (b) shall be based on data that 
identifies properties at the zip code or census block level, and shall 
include the name of the community and State in which a property is 
located.
    ``(d) Protection of Personally Identifiable Information.--The 
information provided pursuant to subsections (a) and (b) shall be 
disclosed in a format that does not reveal individually identifiable 
information about property owners in accordance with the section 552a 
of title 5, United States Code.
    ``(e) Definition of Loss Ratio.--For purposes of this section, the 
term `loss ratio' means, with respect to the National Flood Insurance 
Program, the ratio of the amount of claims paid under the Program to 
the amount of premiums paid under the Program.''.

SEC. 203. REFUND OF PREMIUMS UPON CANCELLATION OF POLICY BECAUSE OF 
              REPLACEMENT WITH PRIVATE FLOOD INSURANCE.

    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:
    ``(e) Refund of Unearned Premiums for Policies Canceled Because of 
Replacement With Private Flood Insurance.--
            ``(1) Required refund.--Subject to subsection (c), if at 
        any time an insured under a policy for flood insurance coverage 
        for a property that is made available under this title cancels 
        such policy because other duplicate flood insurance coverage 
        for the same property has been obtained from a source other 
        than the National Flood Insurance Program under this title, the 
        Administrator shall refund to the former insured a portion of 
        the premiums paid for the coverage made available under this 
        title, as determined consistent with industry practice 
        according to the portion of the term of the policy that such 
        coverage was in effect, but only if a copy of declarations page 
        of the new policy obtained from a source other than the program 
        under this title is provided to the Administrator.
            ``(2) Effective date of cancellation.--For purposes of this 
        subsection, a cancellation of a policy for coverage made 
        available under the national flood insurance program under this 
        title, for the reason specified in paragraph (1), shall be 
        effective--
                    ``(A) on the effective date of the new policy 
                obtained from a source other than the program under 
                this title, if the request for such cancellation was 
                received by the Administrator before the expiration of 
                the 6-month period beginning on the effective date of 
                the new policy; or
                    ``(B) on the date of the receipt by the 
                Administrator of the request for cancellation, if the 
                request for such cancellation was received by the 
                Administrator after the expiration of the 6-month 
                period beginning on the effective date of the new 
                policy.
            ``(3) Prohibition of refunds for properties receiving 
        increased cost of compliance claims.--No premium amounts paid 
        for coverage made available under this title may be refunded 
        pursuant to this subsection--
                    ``(A) with respect to coverage for any property for 
                which measures have been implemented using amounts 
                received pursuant to a claim under increased cost of 
                compliance coverage made available pursuant to section 
                1304(b); or
                    ``(B) if a claim has been paid or is pending under 
                the policy term for which the refund is sought.''.

SEC. 204. GAO STUDY OF FLOOD DAMAGE SAVINGS ACCOUNTS.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study to analyze the feasibility and effectiveness, and 
problems involved, in reducing flood insurance premiums and eliminating 
the need for purchase of flood insurance coverage by authorizing owners 
of residential properties to establish flood damage savings accounts 
described in subsection (b) in lieu of complying with the mandatory 
requirements under section 102 of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a) to purchase flood insurance for such properties.
    (b) Flood Damage Savings Account.--A flood damage savings account 
described in this subsection is a savings account--
            (1) that would be established by an owner of residential 
        property with respect to such property in accordance with 
        requirements established by the Administrator of the Federal 
        Emergency Management Agency; and
            (2) the proceeds of which would be available for use only 
        to cover losses to such properties resulting from flooding, 
        pursuant to adjustment of a claim for such losses in the same 
        manner and according to the same procedures as apply to claims 
        for losses under flood insurance coverage made available under 
        the National Flood Insurance Act of 1968.
    (c) Issues.--Such study shall include an analysis of, and 
recommendation regarding, each of the following issues:
            (1) Whether authorizing the establishment of such flood 
        damage savings accounts would be effective and efficient in 
        reducing flood insurance premiums, eliminating the need for 
        purchase of flood insurance coverage made available under the 
        National Flood Insurance Program, and reducing risks to the 
        financial safety and soundness of the National Flood Insurance 
        Fund.
            (2) Possible options for structuring such flood damage 
        savings accounts, including--
                    (A) what types of institutions could hold such 
                accounts and the benefits and problems with each such 
                type of institution;
                    (B) considerations affecting the amounts required 
                to be held in such accounts; and
                    (C) options regarding considerations the conditions 
                under which such an account may be terminated.
            (3) The feasibility and effectiveness, and problems 
        involved in, authorizing the Administrator of the Federal 
        Emergency Management Agency to make secondary flood insurance 
        coverage available under the National Flood Insurance Program 
        to cover the portion of flood losses or damages to properties 
        for which such flood damage savings accounts have been 
        established that exceed the amounts held in such accounts.
            (4) The benefits and problems involved in authorizing the 
        establishment of such accounts for non-residential properties.
    (d) Report.--Not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the Comptroller 
General shall submit a report to the Committee on Financial Services of 
the House of Representatives, the Committee on Banking, Housing, and 
Urban Affairs of the Senate, and the Administrator that sets forth the 
analysis, conclusions, and recommendations resulting from the study 
under this section. Such report shall identify elements that should be 
taken into consideration by the Administrator in designing and carrying 
out the demonstration program under section 205.

SEC. 205. DEMONSTRATION PROGRAM FOR FLOOD DAMAGE SAVINGS ACCOUNTS.

    (a) Plan.--If the Comptroller General of the United States 
concludes in the report required under section 204 that a demonstration 
program under this section is feasible and should be considered, then 
the Administrator of the Federal Emergency Management Agency shall, not 
later than the expiration of the 12-month period beginning upon the 
submission of the report under section 204(d), submit to the Committee 
on Financial Services of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate a plan and 
guidelines for a demonstration program, to be carried out by the 
Administrator, to demonstrate the feasibility and effectiveness of 
authorizing the establishment of flood damage savings accounts, taking 
into consideration the analysis, conclusions, and recommendations 
included in such report.
    (b) Authority.--The Administrator of the Federal Emergency 
Management Agency shall carry out a program to demonstrate the 
feasibility and effectiveness of authorizing the establishment of flood 
damage savings accounts in the manner provided in plan and guidelines 
for the demonstration program submitted pursuant to subsection (a).
    (c) Scope.--The demonstration program under this section shall 
provide for the establishment of flood damage savings accounts with 
respect to not more than 5 percent of the residential properties that 
have 4 or fewer residences and that are covered by flood insurance 
coverage made available under the National Flood Insurance Program.
    (d) Timing.--The Administrator shall commence the demonstration 
program under this section not later than the expiration of the 12-
month period beginning upon the submission of the plan and guidelines 
for the demonstration pursuant to subsection (a).
    (e) Geographical Diversity.--The Administrator shall ensure that 
properties for which flood damage savings accounts are established 
under the demonstration are located in diverse geographical areas 
throughout the United States.
    (f) Report.--Upon the expiration of the 2-year period beginning 
upon the date of the commencement of the demonstration program under 
this section, 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 describing and 
assessing the demonstration, and setting forth conclusions and 
recommendations regarding continuing and expanding the demonstration.
    (g) Feasibility.--The Administrator shall implement this section 
only after determining that implementation is supported by the 
Comptroller's conclusions and recommendations contained in the report 
required under section 204.

                      TITLE III--MAPPING FAIRNESS

SEC. 301. USE OF OTHER RISK ASSESSMENT TOOLS IN DETERMINING PREMIUM 
              RATES.

    (a) 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--
            (1) in clause (i), by striking ``and'' at the end; and
            (2) by adding at the end the following new clause:
                            ``(iii) both the risk identified by the 
                        applicable flood insurance rate maps and by 
                        other risk assessment data and tools, including 
                        risk assessment models and scores from 
                        appropriate sources; and''.
    (b) Establishment of Chargeable Premium Rates.--Paragraph (1) of 
section 1308(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015(b)(1)) is amended by inserting before ``; and'' the following: ``, 
taking into account both the risk identified by the applicable flood 
insurance rate maps and by other risk assessment data and tools, 
including risk assessment models and scores from appropriate sources''.
    (c) Effective Date and Regulations.--
            (1) Effective date.--The amendments made by subsections (a) 
        and (b) shall be made, and shall take effect, upon the 
        expiration of the 36-month period beginning on the date of the 
        enactment of this Act.
            (2) Regulations.--The Administrator of the Federal 
        Emergency Management Agency shall issue regulations necessary 
        to implement the amendments made by subsections (a) and (b), 
        which shall identify risk assessment data and tools to be used 
        in identifying flood risk and appropriate sources for risk 
        assessment models and scores to be so used. Such regulations 
        shall be issued not later than the expiration of the 36-month 
        period beginning on the date of the enactment of this Act and 
        shall take effect upon the expiration of such period.

SEC. 302. APPEALS REGARDING EXISTING FLOOD MAPS.

    (a) In General.--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) Appeals of Existing Maps.--
            ``(1) Right to appeal.--Subject to paragraph (6), a State 
        or local government, or the owner or lessee of real property, 
        who has made a formal request to the Administrator to update a 
        flood map that the Administrator has denied may at any time 
        appeal such a denial as provided in this subsection.
            ``(2) Basis for appeal.--The basis for appeal under this 
        subsection shall be the possession of knowledge or information 
        that--
                    ``(A) the base flood elevation level or designation 
                of any aspect of a flood map is scientifically or 
                technically inaccurate; or
                    ``(B) factors exist that mitigate the risk of 
                flooding, including ditches, banks, walls, vegetation, 
                levees, lakes, dams, reservoirs, basin, retention 
                ponds, and other natural or manmade topographical 
                features.
            ``(3) Appeals process.--
                    ``(A) Administrative adjudication.--An appeal under 
                this subsection shall be determined by a final 
                adjudication on the record, and after opportunity for 
                an administrative hearing.
                    ``(B) Rights upon adverse decision.--If an appeal 
                pursuant to subparagraph (A) does not result in a 
                decision in favor of the State, local government, 
                owner, or lessee, such party may appeal the adverse 
                decision to the Scientific Resolution Panel provided 
                for in section 1363A, which shall recommend a non-
                binding decision to the Administrator.
            ``(4) Relief.--
                    ``(A) Wholly successful appeals.--In the case of a 
                successful appeal resulting in a policyholder's 
                property being removed from a special flood hazard 
                area, such policyholder may cancel the policy at any 
                time within the current policy year, and the 
                Administrator shall provide such policyholder a refund 
                in the amount of any premiums paid for such policy 
                year, plus any premiums paid for flood insurance 
                coverage that the policyholder was required to purchase 
                or maintain during the 2-year period preceding such 
                policy year.
                    ``(B) Partially successful appeals.--In the case of 
                any appeal in which mitigating factors were determined 
                to have reduced, but not eliminated, the risk of 
                flooding, the Administrator shall reduce the amount of 
                flood insurance coverage required to be maintained for 
                the property concerned by the ratio of the successful 
                portion of the appeal as compared to the entire appeal. 
                The Administrator shall refund to the policyholder any 
                payments made in excess of the amount necessary for 
                such new coverage amount, effective from the time when 
                the mitigating factor was created or the beginning of 
                the second policy year preceding the determination of 
                the appeal, whichever occurred later.
                    ``(C) Additional relief.--The Administrator may 
                provide additional refunds in excess of the amounts 
                specified in subparagraphs (A) and (B) if the 
                Administrator determines that such additional amounts 
                are warranted.
            ``(5) Recovery of costs.--When, incident to any appeal 
        which is successful in whole or part regarding the designation 
        of the base flood elevation or any aspect of the flood map, 
        including elevation or designation of a special flood hazard 
        area, the community, or the owner or lessee of real property, 
        as the case may be, incurs expense in connection with the 
        appeal, including services provided by surveyors, engineers, 
        and scientific experts, the Administrator shall reimburse such 
        individual or community for reasonable expenses to an extent 
        measured by the ratio of the successful portion of the appeal 
        as compared to the entire appeal, but not including legal 
        services, in the effecting of an appeal based on a scientific 
        or technical error on the part of the Federal Emergency 
        Management Agency. No reimbursement shall be made by the 
        Administrator in respect to any fee or expense payment, the 
        payment of which was agreed to be contingent upon the result of 
        the appeal. The Administrator may use such amounts from the 
        National Flood Insurance Fund established under section 1310 as 
        may be necessary to carry out this paragraph.
            ``(6) Inapplicability to community flood maps.--This 
        subsection shall not apply with respect to any flood map that 
        is in effect pursuant to certification under the standards, 
        guidelines, and procedures established pursuant to section 
        100215(m)(1)(B) of the Biggert-Waters Flood Insurance Reform 
        Act of 2012 (42 U.S.C. 4101a(m)(1)(B)).
            ``(7) Guidance.--The Administrator shall issue guidance to 
        implement this subsection, which shall not be subject to the 
        notice and comment requirements under section 553 of title 5, 
        United States Code.''.
    (b) Deadline.--The Administrator of the Federal Emergency 
Management Agency shall issue the guidance referred to section 
1360(k)(7) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101(k)(7)), as added by the amendment made by subsection (a) of this 
section, not later than the expiration of the 6-month period beginning 
on the date of the enactment of this Act.

SEC. 303. APPEALS AND PUBLICATION OF PROJECTED SPECIAL FLOOD HAZARD 
              AREAS.

    (a) Appeals.--Section 1363 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4104) is amended--
            (1) in subsection (b), by striking the second sentence and 
        inserting the following: ``Any owner or lessee of real property 
        within the community who believes the owner's or lessee's 
        rights to be adversely affected by the Administrator's proposed 
        determination may appeal such determination to the local 
        government no later than 90 days after the date of the second 
        publication.'';
            (2) in subsection (d), by striking ``subsection (e)'' and 
        inserting ``subsection (f)'';
            (3) by redesignating subsections (e), (f), and (g) as 
        subsections (f), (g), and (h), respectively; and
            (4) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Determination by Administrator in the Absence of Appeals.--If 
the Administrator has not received any appeals, upon expiration of the 
90-day appeal period established under subsection (b) of this section 
the Administrator's proposed determination shall become final. The 
community shall be given a reasonable time after the Administrator's 
final determination in which to adopt local land use and control 
measures consistent with the Administrator's determination.''.
    (b) Publication.--Subsection (a) of section 1363 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104(a)) is amended by striking 
``in the Federal Register''.
    (c) Inapplicability to Private and Community Flood Maps.--Section 
1363 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104), as 
amended by the preceding provisions of this section, is further amended 
by adding at the end the following new subsection:
    ``(i) Inapplicability to Community Flood Maps.--This section shall 
not apply with respect to any flood map that is in effect pursuant to 
certification under the standards, guidelines, and procedures 
established pursuant to section 100215(m)(1) of the Biggert-Waters 
Flood Insurance Reform Act of 2012 (42 U.S.C. 4101a(m)(1)), which shall 
include procedures for providing notification and appeal rights to 
individuals within the communities of the proposed flood elevation 
determinations.''.

SEC. 304. COMMUNICATION AND OUTREACH REGARDING MAP CHANGES.

    Paragraph (1) of section 100216(d) of the Biggert-Waters Flood 
Insurance Reform Act of 2012 (42 U.S.C. 4101b(d)(1)) is amended--
            (1) in subparagraph (B), by inserting ``maximum'' before 
        ``30-day period''; and
            (2) in subparagraph (C), by inserting ``maximum'' before 
        ``30-day period''.

    TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED 
                               MITIGATION

SEC. 401. PROVISION OF COMMUNITY RATING SYSTEM PREMIUM CREDITS TO 
              MAXIMUM NUMBER OF COMMUNITIES PRACTICABLE.

    Subsection (b) of section 1315 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4022(b)) is amended--
            (1) in paragraph (2), by striking ``may'' and inserting 
        ``shall''; and
            (2) in paragraph (3), by inserting ``, and the 
        Administrator shall provide credits to the maximum number of 
        communities practicable'' after ``under this program''.

                       TITLE V--PROGRAM INTEGRITY

SEC. 501. INDEPENDENT ACTUARIAL REVIEW.

    Section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4016) is amended by adding at the end the following new subsection:
    ``(e) Independent Actuarial Review.--
            ``(1) Fiduciary responsibility.--The Administrator has a 
        responsibility to ensure that the National Flood Insurance 
        Program remains financially sound. Pursuant to this 
        responsibility, the Administrator shall from time to time 
        review and eliminate nonessential costs and positions within 
        the Program, unless otherwise authorized or required by law, as 
        the Administrator determines to be necessary.
            ``(2) Annual independent actuarial study.--The 
        Administrator shall provide for an independent actuarial study 
        of the National Flood Insurance Program to be conducted 
        annually, which shall analyze the financial position of the 
        program based on the long-term estimated losses of the program. 
        The Administrator shall submit a report (together with the 
        independent actuarial study) annually to the Committee on 
        Financial Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        describing the results of such study, including a determination 
        of whether the Program has collected revenue sufficient to 
        cover the administrative expenses of carrying out the flood 
        insurance program, which are reflected in the risk premium 
        rates, cost of capital, all other costs associated with the 
        transfer of risks, and expected claims payments during the 
        reporting period, and an overall assessment of the financial 
        status of the Program.
            ``(3) Determination of actuarial budget deficit.--
                    ``(A) Requirement.--Within the report submitted 
                under paragraph (2), the Administrator shall issue a 
                determination of whether there exists an actuarial 
                budget deficit for the Program for the year covered in 
                the report. The report shall recommend any changes to 
                the Program, if necessary, to ensure that the program 
                remains financially sound.
                    ``(B) Basis of determination.--The determination 
                required by subparagraph (A) shall be based solely upon 
                whether the portion of premiums estimated and collected 
                by the Program during the reporting period is 
                sufficient to cover the administrative expenses of 
                carrying out the flood insurance program, which are 
                reflected in the risk premium rates, cost of capital, 
                all other costs associated with the transfer of risk, 
                and expected claims payments for the reporting period.
            ``(4) Quarterly reports.--During each fiscal year, on a 
        calendar quarterly basis, the Secretary shall cause to be 
        published in the Federal Register or comparable method, with 
        notice to the Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate, information which shall specify--
                    ``(A) the cumulative volume of policies that have 
                been underwritten under the National Flood Insurance 
                Program during such fiscal year through the end of the 
                quarter for which the report is submitted;
                    ``(B) the types of policies insured, categorized by 
                risk;
                    ``(C) any significant changes between actual and 
                projected claim activity;
                    ``(D) projected versus actual loss rates;
                    ``(E) the cumulative number of currently insured 
                repetitive-loss properties, severe repetitive-loss 
                properties, and extreme repetitive-loss properties that 
                have been identified during such fiscal year through 
                the end of the quarter for which the report is 
                submitted;
                    ``(F) the cumulative number of properties that have 
                undergone mitigation assistance, through the National 
                Flood Insurance Program, during such fiscal year 
                through the end of the quarter for which the report is 
                submitted; and
                    ``(G) the number and location, by State or 
                territory, of each policyholder that has been 
                identified for such fiscal year as an eligible 
                household for purposes of the flood insurance 
                affordability program under section 1326.
        The first quarterly report under this paragraph shall be 
        submitted on the last day of the first quarter of fiscal year 
        2018, or on the last day of the first full calendar quarter 
        following the enactment of the 21st Century Flood Reform Act, 
        whichever occurs later.''.

SEC. 502. ADJUSTMENTS TO HOMEOWNER FLOOD INSURANCE AFFORDABILITY 
              SURCHARGE.

    (a) In General.--Section 1308A of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015a) is amended--
            (1) in subsection (a), by striking the first sentence and 
        inserting the following: ``The Administrator shall impose and 
        collect a non-refundable 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''; and
            (2) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) Amount.--The amount of the surcharge under subsection (a) 
shall be $40, except as follows:
            ``(1) Non-primary residences eligible for prp.--The amount 
        of the surcharge under subsection (a) shall be $125 in the case 
        of in the case of a policy for any property that is--
                    ``(A) a residential property that is not the 
                primary residence of an individual, and
                    ``(B) eligible for preferred risk rate method 
                premiums.
            ``(2) Non-residential properties and non-primary residences 
        not eligible for prp.--The amount of the surcharge under 
        subsection (a) shall be $275 in case of in the case of a policy 
        for any property that is--
                    ``(A) a non-residential property; or
                    ``(B) a residential property that is--
                            ``(i) not the primary residence of an 
                        individual; and
                            ``(ii) not eligible for preferred risk rate 
                        method premiums.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply with respect to policies for flood insurance coverage under the 
National Flood Insurance Act of 1968 that are newly issued or renewed 
after the expiration of the 12-month period beginning on the date of 
the enactment of this Act.

SEC. 503. NATIONAL FLOOD INSURANCE RESERVE FUND COMPLIANCE.

    Section 1310A of the National Flood Insurance Act of 1968 (42 
U.S.C. 4017A) is amended--
            (1) in subsection (c)(2)(D), by inserting before the period 
        at the end the following: ``, including any provisions relating 
        to chargeable premium rates or annual increases of such 
        rates'';
            (2) in subsection (c)(3), by striking subparagraph (A) and 
        inserting the following new subparagraph:
                    ``(A) Parity.--In exercising the authority granted 
                under paragraph (1) to increase premiums, the 
                Administrator shall institute a single annual, uniform 
                rate of assessment for all individual policyholders.''; 
                and
            (3) in subsection (d)--
                    (A) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) In general.--Beginning in fiscal year 2018 and not 
        ending until the fiscal year in which the ratio required under 
        subsection (b) is achieved--
                    ``(A) in each 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); and
                    ``(B) if in any given fiscal year the Administrator 
                fails to comply with subparagraph (A), for the 
                following fiscal year the Administrator shall increase 
                the rate of the annual assessment pursuant to 
                subsection (c)(3)(A) by at least one percentage point 
                over the rate of the annual assessment pursuant to 
                subsection (c)(3)(A) in effect on the first day of such 
                given fiscal year.'';
                    (B) in paragraph (2), by inserting before the 
                period at the end the following: ``nor to increase 
                assessments pursuant to paragraph (1)(B)''; and
                    (C) in paragraph (3), by inserting before the 
                period at the end the following: ``and paragraph (1)(B) 
                shall apply until the fiscal year in which the ratio 
                required under subsection (b) is achieved''.

SEC. 504. DESIGNATION AND TREATMENT OF MULTIPLE-LOSS PROPERTIES.

    (a) Definition.--Section 1370 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4121) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (7); and
                    (B) by redesignating paragraphs (8) through (15) as 
                paragraphs (7) through (14), respectively; and
            (2) by adding at the end the following new subsection:
    ``(d) Multiple-Loss Properties.--
            ``(1) Definitions.--As used in this title:
                    ``(A) Multiple-loss property.--The term `multiple-
                loss property' means any property that is a repetitive-
                loss property, a severe repetitive-loss property, or an 
                extreme repetitive-loss property.
                    ``(B) Repetitive-loss property.--The term 
                `repetitive-loss property' means a structure that has 
                incurred flood damage for which two or more separate 
                claims payments of any amount have been made under 
                flood insurance coverage under this title.
                    ``(C) Severe repetitive-loss property.--The term 
                `severe repetitive-loss property' means a structure 
                that has incurred flood damage for which--
                            ``(i) 4 or more separate claims payments 
                        have been made under flood insurance coverage 
                        under this title, with the amount of each such 
                        claim exceeding $5,000, and with the cumulative 
                        amount of such claims payments exceeding 
                        $20,000; or
                            ``(ii) at least 2 separate claims payments 
                        have been made under flood insurance coverage 
                        under this title, with the cumulative amount of 
                        such claims payments exceeding the value of the 
                        structure.
                    ``(D) Extreme repetitive-loss property.--The term 
                `extreme repetitive-loss property' means a structure 
                that has incurred flood damage for which at least 2 
                separate claims have been made under flood insurance 
                coverage under this title, with the cumulative amount 
                of such claims payments exceeding 150 percent of the 
                maximum coverage amount available for the structure.
            ``(2) Treatment of claims before compliance with state and 
        local requirements.--The Administrator shall not consider 
        claims that occurred before a structure was made compliant with 
        State and local floodplain management requirements for purposes 
        of determining a structure's status as a multiple-loss 
        property.''.
    (b) Premium Adjustment To Reflect Current Flood Risk.--
            (1) In general.--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:
    ``(o) Premium Adjustment To Reflect Current Flood Risk.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Administrator shall rate a multiple-loss property that is 
        charged a risk premium rate estimated under section 1307(a)(1) 
        (42 U.S.C. 4014(a)(1)) based on the current risk of flood 
        reflected in the flood insurance rate map in effect at the time 
        of rating.
            ``(2) Adjustment for existing policies.--For policies for 
        flood insurance under this title in force on the date of the 
        enactment of this Act for properties described in paragraph 
        (1)--
                    ``(A) notwithstanding subsection (e) of this 
                section, the Administrator shall increase risk premium 
                rates by not less than 15 percent each year until such 
                rates comply with paragraph (1) of this subsection; and
                    ``(B) any rate increases required by paragraph (1) 
                shall commence following a claim payment for flood loss 
                under coverage made available this title that occurred 
                after the date of enactment of this Act.''.
            (2) Conforming amendment.--Section 1307(g)(2) of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4014(g)(2)) is 
        amended by striking subparagraph (B) and inserting the 
        following new subparagraph:
                    ``(B) in connection with a multiple-loss 
                property.''.
    (c) Pre-FIRM Multiple-Loss Property.--
            (1) Termination of subsidy.--Section 1307 of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4014) is amended--
                    (A) in subsection (a)(2)--
                            (i) by striking subparagraph (C) and 
                        inserting the following new subparagraph:
                    ``(C) any extreme repetitive-loss property;'';
                            (ii) in subparagraph (D), by striking 
                        ``or'';
                            (iii) in subparagraph (E)--
                                    (I) in clause (i), by striking 
                                ``fair''; and
                                    (II) in clause (ii)--
                                            (aa) by striking ``fair''; 
                                        and
                                            (bb) by striking ``and'' 
                                        and inserting ``or''; and
                            (iv) by adding at the end the following new 
                        subparagraph:
                    ``(F) any repetitive-loss property that has 
                received a claim payment for flood loss under coverage 
                made available this title that occurred after the date 
                of enactment of this Act; and''; and
                    (B) by striking subsection (h).
            (2) Annual limitation on premium increases.--Subsection (e) 
        of section 1308 of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4015(e)) is amended--
                    (A) in paragraph (3), by striking ``and'' at the 
                end;
                    (B) in paragraph (4), by striking ``described under 
                paragraph (3).'' and inserting ``estimated under 
                section 1307(a)(1); and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(5) the chargeable risk premium rates for flood insurance 
        under this title for any properties described in subparagraph 
        (F) of section 1307(a)(2) shall be increased by not less than 
        15 percent each year, until the average risk premium rate for 
        such properties is equal to the average of the risk premium 
        rates for properties estimated under section 1307(a)(1).''.
    (d) Minimum Deductibles for Certain Multiple-Loss Properties.--
            (1) Clerical amendment.--The National Flood Insurance Act 
        of 1968 is amended--
                    (A) by transferring subsection (b) of section 1312 
                (42 U.S.C. 4019(b)) to 1306 (42 U.S.C. 4013), inserting 
                such subsection at the end of such section, and 
                redesignating such subsection as subsection (e); and
                    (B) in section 1312 (42 U.S.C. 4019), by 
                redesignating subsection (c) as subsection (b).
            (2) Certain multiple-loss properties.--Subsection (e) of 
        section 1306 of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4013(e)), as so added and redesignated by paragraph (1) 
        of this subsection, is amended adding at the end the following 
        new paragraph:
            ``(3) Certain multiple-loss properties.--Notwithstanding 
        paragraph (1) or (2), the minimum annual deductible for damage 
        to any severe repetitive-loss property or extreme repetitive-
        loss property shall be not less than $5,000.''.
    (e) Claim History Validation.--Beginning not later than the 
expiration of the 180-day period beginning on the date of the enactment 
of this Act, the Administrator of the Federal Emergency Management 
Agency shall undertake efforts to validate the reasonable accuracy of 
claim history data maintained pursuant to the National Flood Insurance 
Act of 1968 (42 U.S.C. 4001 et seq.).
    (f) Increased Cost of Compliance Coverage.--Paragraph (1) of 
section 1304(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011(b)(1)) is amended by striking ``repetitive loss structures'' and 
inserting ``multiple-loss properties''.
    (g) Availability of Insurance for Multiple-Loss Properties.--
            (1) In general.--The National Flood Insurance Act of 1968 
        is amended by inserting after section 1304 (42 U.S.C. 4011) the 
        following new section:

``SEC. 1304A. AVAILABILITY OF INSURANCE FOR MULTIPLE-LOSS PROPERTIES.

    ``(a) Date and Information Identifying Current Flood Risk.--The 
Administrator may provide flood insurance coverage under this title for 
a multiple-loss property only if the owner of the property submits to 
the Administrator such data and information necessary to determine such 
property's current risk of flood, as determined by the Administrator, 
at the time of application for or renewal of such coverage.
    ``(b) Refusal To Mitigate.--
            ``(1) In general.--Except as provided pursuant to paragraph 
        (2), the Administrator may not make flood insurance coverage 
        available under this title for any extreme repetitive-loss 
        property for which a claim payment for flood loss was made 
        under coverage made available under this title that occurred 
        after the date of enactment of the 21st Century Flood Reform 
        Act if the property owner refuses an offer of mitigation for 
        the property under section 1366(a)(2) (42 U.S.C. 4104c(a)(2)).
            ``(2) Exceptions; appeals.--The Director shall develop 
        guidance to provide appropriate exceptions to the prohibition 
        under paragraph (1) and to allow for appeals to such 
        prohibition.''.
            (2) Effective date.--Section 1304A of the National Flood 
        Insurance Act of 1968, as added by paragraph (1) of this 
        subsection, shall apply beginning upon the expiration of the 
        12-month period beginning on the date of the enactment of this 
        Act.
    (h) Rates for Properties Newly Mapped Into Areas With Special Flood 
Hazards.--Subsection (i) of section 1308 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015(i)) is amended--
            (1) by striking the subsection designation and all that 
        follows through ``Notwithstanding'' and inserting the 
        following:
    ``(i) Rates for Properties Newly Mapped Into Areas With Special 
Flood Hazards.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        notwithstanding'';
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and moving the left 
        margins of such subparagraphs, as so redesignated, and the 
        matter following subparagraph (B), 2 ems to the right; and
            (3) by adding at the end the following new paragraph:
            ``(2) Inapplicability to multiple-loss properties.--
        Paragraph (1) shall not apply to multiple-loss properties.''.
    (i) Clear Communication of Multiple-Loss Property Status.--
            (1) In general.--Subsection (l) of section 1308 of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4015(l)), as 
        amended by the preceding provisions of this Act, is further 
        amended by adding at the end the following new paragraph:
            ``(2) Multiple-loss properties.--Pursuant to paragraph (1), 
        the Administrator shall clearly communicate to all 
        policyholders for multiple-loss properties the effect on the 
        premium rates charged for such a property of filing any further 
        claims under a flood insurance policy with respect to that 
        property''.
    (j) Mitigation Assistance Program.--Section 1366 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                inserting after the period at the end of the first 
                sentence the following: ``Priority under the program 
                shall be given to providing assistance with respect to 
                multiple-loss properties.'';
                    (B) in paragraph (1), by inserting ``and'' after 
                the semicolon at the end; and
                    (C) by striking paragraphs (2) and (3) and 
                inserting the following:
            ``(2) to property owners, in coordination with the State 
        and community, in the form of direct grants under this section 
        for carrying out mitigation activities that reduce flood damage 
        to extreme repetitive-loss properties.
The Administrator shall take such actions as may be necessary to ensure 
that grants under this subsection are provided in a manner that is 
consistent with the delivery of coverage for increased cost of 
compliance provided under section 1304(b).'';
            (2) in subsection (c)(2)(A)(ii), by striking ``severe 
        repetitive loss structures'' and inserting ``multiple-loss 
        properties'';
            (3) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by striking ``Severe repetitive loss 
                        structures'' and inserting ``Extreme 
                        repetitive-loss properties''; and
                            (ii) by striking ``severe repetitive loss 
                        structures'' and inserting ``extreme 
                        repetitive-loss properties;'';
                    (B) in paragraph (2)--
                            (i) by striking ``Repetitive loss 
                        structures'' and inserting ``Severe repetitive-
                        loss properties'';
                            (ii) by striking ``repetitive loss 
                        structures'' and inserting ``severe repetitive-
                        loss properties''; and
                            (iii) by striking ``90 percent'' and 
                        inserting ``100 percent'';
                    (C) by redesignating paragraph (3) as paragraph 
                (4); and
                    (D) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) Repetitive-loss property.--In the case of mitigation 
        activities to repetitive-loss properties, in an amount up to 
        100 percent of all eligible costs.'';
            (4) in subsection (h)--
                    (A) by striking paragraphs (2) and (3);
                    (B) by striking the subsection designation and all 
                that follows through ``shall apply:''; and
                    (C) in paragraph (1)--
                            (i) by striking ``Community'' and inserting 
                        ``Definition of community'';
                            (ii) by striking ``The'' and inserting 
                        ``For purposes of this section, the'';
                            (iii) by redesignating such paragraph as 
                        subsection (j);
                            (iv) in subparagraph (B), by striking 
                        ``subparagraph (A)'' and inserting ``paragraph 
                        (1)'';
                            (v) by redesignating subparagraphs (A) and 
                        (B) as paragraphs (1) and (2), respectively; 
                        and
                            (vi) by moving the left margins of 
                        subsection (h) and paragraphs (1) and (2), all 
                        as so redesignated, two ems to the left; and
            (5) by inserting after subsection (g) the following new 
        subsections:
    ``(h) Alignment With Increased Cost of Compliance.--Notwithstanding 
any provision of law, any funds appropriated for assistance under this 
title may be transferred to the National Flood Insurance Fund 
established under section 1310 (42 U.S.C. 4017) for the payment of 
claims to enable the Administrator to deliver grants under subsection 
(a)(2) of this section to align with the delivery of coverage for 
increased cost of compliance for extreme repetitive-loss properties.
    ``(i) Funding.--
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated $225,000,000 for each fiscal year for flood 
        mitigation assistance grants.
            ``(2) Availability.--Amounts appropriated pursuant to this 
        subsection for any fiscal year may remain available for 
        obligation until expended.''.

SEC. 505. ELIMINATION OF COVERAGE FOR PROPERTIES WITH EXCESSIVE 
              LIFETIME CLAIMS.

    Section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4012) is amended by adding at the end the following new subsection:
    ``(e) Prohibition of Coverage for Properties With Excessive 
Lifetime Claims.--After the expiration of the 18-month period beginning 
on the date of the enactment of this subsection, the Administrator may 
not make available any new or renewed coverage for flood insurance 
under this title for any multiple-loss property for which the aggregate 
amount in claims payments that have been made after the expiration of 
such period under flood insurance coverage under this title exceeds 
twice the amount of the replacement value of the structure.''.

SEC. 506. ADDRESSING TOMORROW'S HIGH-RISK STRUCTURES TODAY.

    The National Flood Insurance Act of 1968 is amended--
            (1) in section 1305 (42 U.S.C. 4012), as amended by the 
        preceding provisions of this Act, by adding at the end the 
        following new subsections:
    ``(f) Reducing Future Risks of the National Flood Insurance Fund.--
            ``(1) Prohibition of new coverage for high-risk 
        properties.--Except as provided in subsection (g) and 
        notwithstanding any other provision of this title, in carrying 
        out the fiduciary responsibility to the National Flood 
        Insurance Program under section 1309(e) (42 U.S.C. 4016(e)) and 
        to reduce future risks to the National Flood Insurance Fund, on 
        or after January 1, 2021, the Administrator may not make 
        available flood insurance coverage under this title as follows:
                    ``(A) New structures added to flood hazard zones.--
                Any new coverage for any property for which new 
                construction is commenced on or after such date and 
                that, upon completion of such construction, is located 
                in an area having special flood hazards.
                    ``(B) Structures with high-value replacement 
                costs.--Any new or renewed coverage for any residential 
                property having 4 or fewer residences and a replacement 
                value of the structure, at the time, exclusive of the 
                value of the real estate on which the structure is 
                located, of $1,000,000 or more (as such amount is 
                adjusted pursuant to clause (i)), subject to the 
                following provisions:
                            ``(i) Adjustment of amounts.--The dollar 
                        amount in the matter of this subparagraph that 
                        precedes this clause (as it may have been 
                        previously adjusted) shall be adjusted for 
                        inflation by the Administrator upon the 
                        expiration of the 5-year period beginning upon 
                        the enactment of this subsection and upon the 
                        expiration of each successive 5-year period 
                        thereafter, in accordance with an inflationary 
                        index selected by the Administrator.
                            ``(ii) Valuation.--The Administrator shall 
                        determine the replacement value of a property 
                        for purposes of this subparagraph using such 
                        valuation methods or indicia as the 
                        Administrator determines are reasonably 
                        accurate, consistent, reliable, and available 
                        for such purposes.
            ``(2) Actuarial structures with hidden risks.--For any 
        property with risk premium rates estimated under section 
        1307(a)(1), on or after January 1, 2021, the Administrator 
        shall charge risk premium rates based on the current risk of 
        flood reflected in the flood insurance rate map or comparable 
        risk rating metric in effect at the time a policy is newly 
        issued, unless the newly issued policy covers a property with 
        continuous flood insurance coverage under this title, or upon 
        the renewal of a policy. For all such policy renewals, the 
        Administrator shall increase the risk premium rate in 
        accordance with section 1308(e)(2) until the risk premium rate 
        is equal to the risk of flood reflected in the flood insurance 
        rate map or comparable risk rating metric in effect at the time 
        of renewal.
            ``(3) Implementation.--The Administrator may implement this 
        subsection without rulemaking, except that any such 
        implementation shall include advance publication of notice in 
        the Federal Register or advance notice by another comparable 
        method, such as posting on an official website of the 
        Administrator.
    ``(g) Availability of Otherwise Prohibited Flood Insurance During 
Counter-Cyclical Market Adjustment.--
            ``(1) Authority.--Upon the effectiveness of a determination 
        under paragraph (2) with respect to a geographical area, the 
        Administrator may temporarily make available, for properties 
        that are described in subparagraph (A) or (B), or both, of 
        subsection (f)(1), and are located in such area, coverage for 
        flood insurance under such Act, notwithstanding subsection (f), 
        during the period that begins upon such determination and ends 
        upon the termination date with respect to such period 
        determined under paragraph (7) of this subsection.
            ``(2) Determination of market contraction.--A determination 
        under this paragraph for a geographical area is a 
        determination, made by the State insurance regulator for the 
        affected geographical area, that the availability or 
        affordability of private flood insurance coverage in the United 
        States for properties that are described in subparagraph (A) or 
        (B), or both, of subsection (f)(1) and are located in such area 
        has contracted significantly, made in accordance with the 
        following requirements:
                    ``(A) The State insurance coordinator has 
                determined that there is no evidence that the State 
                regulatory or legislative structure has unduly hindered 
                the ability of private insurance carriers to compete in 
                the State.
                    ``(B) The State insurance coordinator has 
                determined that there is evidence of a low market 
                penetration of private flood insurance in the State, or 
                a geographic area of the State, where private insurance 
                carriers have been allowed to participate in the market 
                in a fair process.
                    ``(C) The State insurance coordinator has 
                determined that private insurers have been given an 
                opportunity to offer flood insurance but have failed to 
                penetrate the markets by more than 10 percent of the 
                market share for flood insurance.
                    ``(D) The determination under this paragraph was 
                made after the State insurance commissioner provided 
                private insurance carriers and consumers an opportunity 
                to provide information regarding the determination 
                under this paragraph, which included holding a public 
                hearing regarding such determination at which to 
                provide such information that was held not less than 45 
                days after public notice of the time and place of such 
                hearing was first made available.
                    ``(E) The Secretary of the Treasury has confirmed 
                the determination under this paragraph based on the 
                conditions of the insurance market for such 
                determination, including the geographic area subject to 
                the determination.
            ``(3) Effective date.--A determination under paragraph (2) 
        shall take effect for purposes of paragraph (1) upon receipt by 
        the Administrator of written notice of such determination, in 
        accordance with such requirements as the Administrator shall 
        establish.
            ``(4) Surcharge.--Any flood insurance coverage made 
        available for a property pursuant to this subsection shall be 
        made available at chargeable premium rates otherwise determined 
        under this title for such property, notwithstanding subsection 
        (f), except that the Administrator shall impose and collect a 
        surcharge for such coverage in an amount equal to 10 percent of 
        such chargeable premium rate, which shall be deposited into the 
        National Flood Insurance Fund established under section 1310.
            ``(5) Conditions for termination.--Upon making a 
        determination under paragraph (2), the Administrator shall also 
        identify measurable criteria for determining when the 
        conditions determined under paragraph (2) have ceased to exist 
        for the affected geographical area.
            ``(6) Notice to congress.--Upon making a determination 
        under paragraph (2), the Administrator shall provide, to the 
        Committee on Financial Services of the House of Representatives 
        and the Committee on Banking, Housing, and Urban Affairs of the 
        Senate, written notice of such determination, the geographical 
        area to which such determination applies, and the specific 
        measurable criteria identified pursuant to paragraph (5).
            ``(7) Termination.--The authority to make direct flood 
        insurance coverage available pursuant to this subsection shall 
        terminate upon the earlier of--
                    ``(A) the expiration of the 12-month period 
                beginning upon the date that notice under paragraph (6) 
                is provided to the specified Committees; or
                    ``(B) the occurrence of the conditions identified 
                pursuant to paragraph (5).
            ``(8) Rules of construction.--
                    ``(A) Multiple determinations.--Nothing in this 
                subsection may be construed to prevent multiple or 
                consecutive periods during which direct flood insurance 
                coverage may be made available pursuant to this 
                subsection for properties referred to in subsection 
                (f)(1).
                    ``(B) Effectiveness of policies.--The termination 
                pursuant to paragraph (7) of authority to make direct 
                flood insurance coverage available pursuant to this 
                subsection may not be construed to affect the 
                effectiveness or term of coverage of any policy for 
                such coverage purchased pursuant to such authority.''; 
                and
            (2) in section 1306(a)(1) (42 U.S.C. 4013(a)(1)), by 
        inserting ``, subject to subsections (f) and (g) of section 
        1305'' before the semicolon at the end.

SEC. 507. ALLOWANCE FOR WRITE YOUR OWN COMPANIES.

    Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4081), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new subsection:
    ``(g) Allowance for Write Your Own Companies.--The allowance paid 
to companies participating in the Write Your Own Program (as such term 
is defined in section 1370 (42 U.S.C. 4121)) with respect to a policy 
for flood insurance coverage made available under this title shall not 
be greater than 25 percent of the chargeable premium for such 
coverage.''.

SEC. 508. ENFORCEMENT OF MANDATORY PURCHASE REQUIREMENTS.

    (a) Penalties.--Paragraph (5) of section 102(f) of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(5)) is amended by 
striking ``$2,000'' and inserting ``$5,000''.
    (b) Insured Depository Institutions.--Subparagraph (A) of section 
10(i)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1820(i)(2)(A)) 
is amended by striking ``date of enactment of the Riegle Community 
Development and Regulatory Improvement Act of 1994 and biennially 
thereafter for the next 4 years'' and inserting ``date of enactment of 
the 21st Century Flood Reform Act and biennially thereafter''.
    (c) Credit Unions.--Subparagraph (A) of section 204(e)(2) of the 
Federal Credit Union Act (12 U.S.C. 1784(e)(2)(A)) is amended by 
striking ``date of enactment of the Riegle Community Development and 
Regulatory Improvement Act of 1994 and biennially thereafter for the 
next 4 years'' and inserting ``date of enactment of the 21st Century 
Flood Reform Act and annually thereafter''.
    (d) Government-Sponsored Enterprises.--Paragraph (4) of section 
1319B(a) of the Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4521(a)(4)) is amended, in the matter 
after and below subparagraph (B), by striking ``first, third, and fifth 
annual reports under this subsection required to be submitted after the 
expiration of the 1-year period beginning on the date of enactment of 
the Riegle Community Development and Regulatory Improvement Act of 
1994'' and inserting ``first annual report under this subsection 
required to be submitted after the expiration of the 1-year period 
beginning on the date of enactment of the 21st Century Flood Reform Act 
and every such second annual report thereafter''.
    (e) Mandatory Purchase Study; Guidelines.--
            (1) Study.--
                    (A) In general.--The Comptroller General of the 
                United States shall conduct a study of the 
                implementation and efficacy of the requirements of 
                section 102 of the Flood Disaster Protection Act of 
                1973 (42 U.S.C. 4012a). Such study shall at minimum 
                consider the following questions:
                            (i) How effectively do Federal agencies, 
                        regulated lending institutions, and Federal 
                        entities for lending regulation implement the 
                        requirements of section 102 of the Flood 
                        Disaster Protection Act of 1973?
                            (ii) Does the current implementation of 
                        Flood Disaster Protection Act of 1973 align 
                        with the congressional findings and purposes 
                        described in section 2(b) of such Act (42 
                        U.S.C. 4002)?
                            (iii) What, if any, unintended consequences 
                        have resulted from the requirements and 
                        implementation of section 102 of such Act?
                    (B) Report.--Not later than the expiration of the 
                18-month period beginning on the date of the enactment 
                of this Act, the Comptroller General 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 regarding the 
                findings and conclusions of the study conducted 
                pursuant to this paragraph.
            (2) Guidelines.--The Federal entities for lending 
        regulation (as such term is defined in section 3(a) of the 
        Flood Disaster Protection Act of 1973 (42 U.S.C. 4003(a))), in 
        consultation with the Administrator of the Federal Emergency 
        Management Agency, shall jointly update and reissue the 
        rescinded document of the Administrator entitled ``Mandatory 
        Purchase of Flood Insurance Guidelines'' (lasted updated on 
        October 29, 2014). The updated document shall incorporate 
        recommendations made by the Comptroller General pursuant to 
        paragraph (1) of this subsection.

SEC. 509. SATISFACTION OF MANDATORY PURCHASE REQUIREMENT IN STATES 
              REQUIRING FLOOD COVERAGE IN ALL-PERILS POLICIES.

    Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a) is amended--
            (1) in subsection (a), by striking ``After'' and inserting 
        ``Subject to subsection (i) of this section, after'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``Each'' and 
                inserting ``Subject to subsection (i) of this section, 
                each'';
                    (B) in paragraph (2), by striking ``Each'' and 
                inserting ``Subject to subsection (i) of this section, 
                A''; and
                    (C) in paragraph (3), by striking ``The'' and 
                inserting ``Subject to subsection (i) of this section, 
                the'';
            (3) in subsection (e)(1), by striking ``If'' and inserting 
        ``Subject to subsection (i) of this section, if''; and
            (4) by adding at the end the following new subsection:
    ``(i) Satisfaction of Mandatory Purchase Requirement in States 
Requiring Flood Coverage in All-Perils Policies.--
            ``(1) Waivers.--Subsections (a), (b), and (e) of section 
        102 shall not apply with respect to residential properties in 
        any State for which the Administrator determines that State 
        law, including any regulation or Executive order, requires that 
        with respect residential properties any property insurance 
        coverage that covers all perils except specifically excluded 
        perils shall include coverage for flood perils in an amount at 
        least equal to the outstanding principal balance of the loan or 
        the maximum limit of flood insurance coverage made available 
        under this title with respect to such type of residential 
        property, whichever is less.
            ``(2) Definitions, procedures, standards.--The 
        Administrator may establish such definitions, procedures, and 
        standards as the Administrator considers necessary for making 
        determinations under paragraph (1).''.

SEC. 510. FLOOD INSURANCE PURCHASE REQUIREMENTS.

    Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a), as amended by the preceding provisions of this Act, is further 
amended--
            (1) in subsection (c)(2)(A), by striking ``$5,000 or less'' 
        and inserting the following: ``$25,000 or less, except that 
        such amount (as it may have been previously adjusted) shall be 
        adjusted for inflation by the Administrator upon the expiration 
        of the 5-year period beginning upon the enactment of the 21st 
        Century Flood Reform Act and upon the expiration of each 
        successive 5-year period thereafter, in accordance with an 
        inflationary index selected by the Administrator''; and
            (2) by adding at the end the following new subsection:
    ``(j) Flood Insurance Purchase Requirements.--Notwithstanding any 
other provision of law, a State or local government or private lender 
may require the purchase of flood insurance coverage for a structure 
that is located outside of an area having special flood hazards.''.
                                 <all>