[Congressional Record Volume 164, Number 108 (Wednesday, June 27, 2018)]
[Senate]
[Pages S4650-S4653]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3257. Mr. HELLER submitted an amendment intended to be proposed by
him to the bill H.R. 2, to provide for the reform and continuation of
agricultural and other programs of the Department of Agriculture
through fiscal year 2023, and for other purposes; which was ordered to
lie on the table; as follows:
At the end of subtitle F of title XII, add the following:
SEC. 12609. PRIVATE FLOOD INSURANCE.
(a) Mandatory Purchase Requirement.--
(1) Amount and term of coverage.--Section 102 of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a) is amended
by striking ``Sec. 102. (a)'' and all that follows through
the end of subsection (a) and inserting the following:
``Sec. 102. (a) Amount and Term of Coverage.--After the
expiration of sixty days following the date of enactment of
this Act, no Federal officer or agency shall approve any
financial assistance for acquisition or construction purposes
for use in any area that has been identified by the
Administrator as an area having special flood hazards and in
which the sale of flood insurance has been made available
under the National Flood Insurance Act of 1968 (42 U.S.C.
4001 et seq.), unless the building or mobile home and any
personal property to which such financial assistance relates
is covered by flood insurance: Provided, That the amount of
flood insurance (1) in the case of Federal flood insurance,
is at least equal to the development or project cost of the
building, mobile home, or personal property (less estimated
land cost), the outstanding principal balance of the loan, or
the maximum limit of Federal flood insurance coverage made
available with respect to the particular type of property,
whichever is less; or (2) in the case of private flood
insurance, is at least equal to the development or project
cost of the building, mobile home, or personal property (less
estimated land cost), the outstanding principal balance of
the loan, or the maximum limit of Federal flood insurance
coverage made available with respect to the particular type
of property, whichever is less: Provided further, That if the
financial assistance provided is in the form of a loan or an
insurance or guaranty of a loan, the amount of flood
insurance required need not exceed the outstanding principal
balance of the loan and need not be required beyond the term
of the loan. The requirement of maintaining flood insurance
shall apply during the life of the property, regardless of
transfer of ownership of such property.''.
(2) Requirement for mortgage loans.--Subsection (b) of
section 102 of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(b)) is amended--
(A) by striking the subsection designation and all that
follows through the end of paragraph (5) and inserting the
following:
``(b) Requirement for Mortgage Loans.--
``(1) Regulated lending institutions.--Each Federal entity
for lending regulation (after consultation and coordination
with the Financial Institutions Examination Council
established under the Federal Financial Institutions
Examination Council Act of 1974 (12 U.S.C. 3301 et seq.))
shall by regulation direct regulated lending institutions not
to make, increase, extend, or renew any loan secured by
improved real estate or a mobile home located or to be
located in an area that has been identified by the
Administrator as an area having special flood hazards and in
which flood insurance has been made available under the
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.), unless the building or mobile home and any personal
property securing such loan is covered for the term of the
loan by flood insurance: Provided, That the amount of flood
insurance (A) in the case of Federal flood insurance, is at
least equal to the outstanding principal balance of the loan
or the maximum limit of Federal flood insurance coverage made
available with respect to the particular type of property,
whichever is less; or (B) in the case of private flood
insurance, is at least equal to the outstanding principal
balance of the loan or the maximum limit of Federal flood
insurance coverage made available with respect to the
particular type of property, whichever is less.
``(2) Federal agency lenders.--
``(A) In general.--A Federal agency lender may not make,
increase, extend, or renew any loan secured by improved real
estate or a mobile home located or to be located in an area
that has been identified by the Administrator as an area
having special flood hazards and in which flood insurance has
been made available under the National Flood Insurance Act of
1968 (42 U.S.C. 4001 et seq.), unless the building or mobile
home and any personal property securing such loan is covered
for the term of the loan by flood insurance in accordance
with paragraph (1). Each Federal agency lender may issue any
regulations necessary to carry out this paragraph. Such
regulations shall be consistent with and substantially
identical to the regulations issued under paragraph (1).
``(B) Requirement to accept flood insurance.--Each Federal
agency lender shall accept flood insurance as satisfaction of
the flood insurance coverage requirement under subparagraph
(A) if the flood insurance coverage meets the requirements
for coverage under that subparagraph.
``(3) Government-sponsored enterprises for housing.--The
Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation shall implement procedures
reasonably designed to ensure that, for any loan that is--
``(A) secured by improved real estate or a mobile home
located in an area that has been identified, at the time of
the origination of the loan or at any time during the term of
the loan, by the Administrator as an area having special
flood hazards and in which flood insurance is available under
the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.), and
``(B) purchased or guaranteed by such entity,
the building or mobile home and any personal property
securing the loan is covered for the term of the loan by
flood insurance in the amount provided in paragraph (1). The
Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation shall accept flood insurance as
satisfaction of the flood insurance coverage requirement
under paragraph (1) if the flood insurance coverage provided
meets the requirements for coverage under that paragraph and
any requirements established by the Federal National Mortgage
Association or the Federal Home Loan Corporation,
respectively, relating to the financial strength of private
insurance companies from which the Federal National Mortgage
Association or the Federal Home Loan Mortgage Corporation
will accept private flood insurance, provided that such
requirements shall not affect or conflict with any State law,
regulation, or procedure concerning the regulation of the
business of insurance.
``(4) Applicability.--
``(A) Existing coverage.--Except as provided in
subparagraph (B), paragraph (1) shall apply on the date of
enactment of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4701 et seq.).
``(B) New coverage.--Paragraphs (2) and (3) shall apply
only with respect to any loan made, increased, extended, or
renewed 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 (12 U.S.C. 4701 et
seq.). Paragraph (1) shall apply with respect to any loan
made, increased, extended, or renewed by any lender
supervised by the Farm Credit Administration only after the
expiration of the period under this subparagraph.
``(C) Continued effect of regulations.--Notwithstanding any
other provision of this subsection, the regulations to carry
out paragraph (1), as in effect immediately before the date
of enactment of the Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4701 et seq.),
shall continue to apply until the regulations issued to carry
out paragraph (1) as amended by section 522(a) of such Act
take effect.
``(5) Rule of construction.--Except as otherwise specified,
any reference to flood insurance in this section shall be
considered to include Federal flood insurance and private
flood insurance. Nothing in this subsection shall be
construed to supersede or limit the authority of a Federal
entity for lending regulation, the Federal Housing Finance
Agency, a Federal agency lender, the Federal National
Mortgage Association, or the Federal Home Loan Mortgage
Corporation to establish requirements relating to the
financial strength of private insurance companies from which
the entity or agency will accept private flood insurance,
provided that such requirements shall not affect or conflict
with any State law, regulation, or procedure concerning the
regulation of the business of insurance.''; and
(B) by striking paragraph (7) and inserting the following
new paragraph:
``(7) Definitions.--In this section:
``(A) Flood insurance.--The term `flood insurance' means--
``(i) Federal flood insurance; and
``(ii) private flood insurance.
``(B) Federal flood insurance.--The term `Federal flood
insurance' means an insurance policy made available under the
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.).
``(C) Private flood insurance.--The term `private flood
insurance' means an insurance policy that--
``(i) is issued by an insurance company that is--
``(I) licensed, admitted, or otherwise approved to engage
in the business of insurance in the State in which the
insured building is located, by the insurance regulator of
that State; or
``(II) eligible as a nonadmitted insurer to provide
insurance in the home State of the insured, in accordance
with sections 521 through 527 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (15 U.S.C. 8201 through
8206);
``(ii) is issued by an insurance company that is not
otherwise disapproved as a surplus lines insurer by the
insurance regulator of the State in which the property to be
insured is located; and
``(iii) provides flood insurance coverage that complies
with the laws and regulations of that State.
``(D) State.--The term `State' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto
[[Page S4653]]
Rico, Guam, the Northern Mariana Islands, the Virgin Islands,
and American Samoa.''.
(b) Effect of Private Flood Insurance Coverage on
Continuous Coverage Requirements.--Section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015) is
amended by adding at the end the following:
``(n) Effect of Private Flood Insurance Coverage on
Continuous Coverage Requirements.--For purposes of applying
any statutory, regulatory, or administrative continuous
coverage requirement, including under section 1307(g)(1), the
Administrator shall consider any period during which a
property was continuously covered by private flood insurance
(as defined in section 102(b)(7) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(b)(7))) to be a
period of continuous coverage.''.
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