[Congressional Record Volume 167, Number 140 (Thursday, August 5, 2021)]
[Senate]
[Pages S5981-S5982]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2614. Mr. MENENDEZ (for himself, Mr. Kennedy, Mrs. Hyde-Smith, Mr. 
Cassidy, and Mr. Rubio) submitted an amendment intended to be proposed 
to amendment SA 2137 proposed by Mr. Schumer (for Ms. Sinema (for 
herself, Mr. Portman, Mr. Manchin, Mr. Cassidy, Mrs. Shaheen, Ms. 
Collins, Mr. Tester, Ms. Murkowski, Mr. Warner, and Mr. Romney)) to the 
bill H.R. 3684, to authorize funds for Federal-aid highways, highway 
safety programs, and transit programs, and for other purposes; which 
was ordered to lie on the table; as follows:

        At the appropriate place, insert the following:

     SEC. ___. CAP ON ANNUAL PREMIUM INCREASES.

       (a) Definitions.--In this section--
       (1) the term ``Administrator'' means the Administrator of 
     the Federal Emergency Management Agency; and
       (2) the term ``covered cost''--
       (A) means--
       (i) the amount of an annual premium with respect to any 
     policy for flood insurance under the National Flood Insurance 
     Program;
       (ii) any surcharge imposed with respect to a policy 
     described in clause (i) (other than a surcharge imposed under 
     section 1304(b) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4011(b))), including a surcharge imposed under 
     section 1308A(a) of that Act (42 U.S.C. 4015a(a)); and
       (iii) a fee described in paragraph (1)(B)(iii) or (2) of 
     section 1307(a) of the National Flood Insurance Act of 1968 
     (42 U.S.C. 4014(a)); and
       (B) does not include any cost associated with the purchase 
     of insurance under section 1304(b) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4011(b)), including any 
     surcharge that relates to insurance purchased under such 
     section 1304(b).
       (b) Limitation on Increases.--
       (1) Limitation.--
       (A) In general.--During the 5-year period beginning on the 
     date of enactment of this Act, notwithstanding section 
     1308(e) of the National Flood Insurance Act of 1968 (42 
     U.S.C. 4015(e)), and subject to subparagraph (B), the 
     Administrator may not, in any year, increase the amount of 
     any covered cost by an amount that is more than 9 percent, as 
     compared with the amount of the covered cost during the 
     previous year, except where the increase in the covered cost 
     relates to an exception under paragraph (1)(C)(iii) of such 
     section 1308(e).
       (B) Decrease of amount of deductible or increase in amount 
     of coverage.--In the case of a policyholder described in 
     section 1308(e)(1)(C)(ii) of the National Flood Insurance Act 
     of 1968 (42 U.S.C. 4015(e)(1)(C)(ii)), the Administrator 
     shall establish a process by which the Administrator 
     determines an increase in covered costs for the policyholder 
     that is--
       (i) proportional to the relative change in risk based on 
     the action taken by the policyholder; and
       (ii) in compliance with subparagraph (A).
       (2) New rating systems.--
       (A) Classification.--With respect to a property, the 
     limitation under paragraph (1) shall remain in effect for 
     each year until the covered costs with respect to the 
     property reflect full actuarial rates, without regard to 
     whether, at any time until the year in which those covered 
     costs reflect full actuarial rates, the property is rated or 
     classified under the Risk Rating 2.0 methodology (or any 
     substantially similar methodology).
       (B) New policyholder.--If a property to which the 
     limitation under paragraph (1) applies is sold before the 
     covered costs for the property reflect full actuarial rates 
     determined under the Risk Rating 2.0 methodology (or any 
     substantially similar methodology), that limitation shall 
     remain in effect for each year until the year in which those 
     full actuarial rates takes effect.
       (c) Rule of Construction.--Nothing in subsection (b) may be 
     construed as prohibiting the Administrator from reducing, in 
     any year, the amount of any covered cost, as compared with 
     the amount of the covered cost during the previous year.
       (d) Average Historical Loss Year.--Section 1308 of the 
     National Flood Insurance Act of 1968 (42 U.S.C. 4015) is 
     amended by striking subsection (h) and inserting the 
     following:
       ``(h) Rule of Construction.--For purposes of this section, 
     the calculation of an `average historical loss year' shall be 
     computed in accordance with generally accepted actuarial 
     principles.''.
       (e) Disclosure With Respect to the Affordability 
     Standard.--Section 1308(j) of the National Flood Insurance 
     Act of 1968 (42 U.S.C. 4015(j)) is amended, in the second 
     sentence, by inserting ``and shall include in the report the 
     number of those exceptions as of the date on which the 
     Administrator submits the report and the location of each 
     policyholder insured under those exceptions, organized by 
     county and State'' after ``of the Senate''.

     SEC. ___. MEANS TESTED AFFORDABILITY VOUCHER.

       (a) In General.--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:

     ``SEC. 1326. AFFORDABILITY ASSISTANCE.

       ``(a) Affordability Assistance Fund.--
       ``(1) Establishment.--The Administrator shall establish in 
     the Treasury of the United States an Affordability Assistance 
     Fund (referred to in this section as the `Fund'), which shall 
     be--

[[Page S5982]]

       ``(A) an account separate from any other accounts or funds 
     available to the Administrator; and
       ``(B) available without fiscal year limitation.
       ``(2) Use of funds.--Amounts from the Fund shall be 
     available to provide financial assistance under subsection 
     (b).
       ``(b) Financial Assistance.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `adjusted gross income' has the meaning 
     given the term in section 62 of the Internal Revenue Code of 
     1986;
       ``(B) the term `eligible household' means a household--
       ``(i) for which housing expenses exceed 30 percent of the 
     adjusted gross income of the household in a year; and
       ``(ii)(I) for which the total assets owned by the household 
     are in an amount that is not greater than 220 percent of the 
     median household income for the State in which the household 
     is located; or
       ``(II) that has a total household income that is not 
     greater than 120 percent of the area median income for the 
     area in which the household is located; and
       ``(C) the term `housing expenses' means, with respect to a 
     household, the total amount that the household spends in a 
     year on--
       ``(i) mortgage payments;
       ``(ii) property taxes;
       ``(iii) homeowners insurance; and
       ``(iv) premiums for flood insurance under the national 
     flood insurance program.
       ``(2) Authority.--
       ``(A) Other financial assistance.--The Administrator shall 
     provide a voucher, grant, or premium credit to an eligible 
     household for a year in an amount that, subject to 
     subparagraph (B), is equal to the lesser of--
       ``(i) the difference between--

       ``(I) the housing expenses of the household for the year; 
     and
       ``(II) 30 percent of the adjusted gross income of the 
     household for the year; and

       ``(ii) the cost of premiums for the household for flood 
     insurance under the national flood insurance program for the 
     year.
       ``(B) Reduction.--The amount of the assistance provided 
     under subparagraph (A) to an eligible household shall be 
     reduced by 1 percent for each percent that the income of the 
     eligible household exceeds 120 percent of the median 
     household income for the State in which the property that is 
     the subject of the assistance is located.
       ``(3) Relationships with other agencies.--The Administrator 
     may enter into a memorandum of understanding with the head of 
     any other Federal agency to administer paragraph (2)(A).''.
       (b) Direct Appropriation.--Out of any money in the Treasury 
     not otherwise appropriated, there is appropriated to the 
     Affordability Assistance Fund established under section 1326 
     of the National Flood Insurance Act of 1968, as added by 
     subsection (a) of this section, $800,000,000 for each of 
     fiscal years 2022 through 2025 to provide financial 
     assistance under subsection (b) of such section 1326.

     SEC. ___. FORBEARANCE ON NFIP INTEREST PAYMENTS.

       (a) In General.--During the 5-year period beginning on the 
     date of enactment of this Act, the Secretary of the Treasury 
     may not charge the Administrator of the Federal Emergency 
     Management Agency (referred to in this section as the 
     ``Administrator'') interest on amounts borrowed by the 
     Administrator under section 1309(a) of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4016(a)) that were 
     outstanding as of the date of enactment of this Act, 
     including amounts borrowed after the date of enactment of 
     this Act that refinance debts that existed before the date of 
     enactment of this Act.
       (b) Use of Saved Amounts.--There shall be deposited into 
     the National Flood Mitigation Fund an amount equal to the 
     interest that would have accrued on the borrowed amounts 
     during the 5-year period described in subsection (a) at the 
     time at which those interest payments would have otherwise 
     been paid, which, notwithstanding any provision of section 
     1367 of the National Flood Insurance Act of 1968 (42 U.S.C. 
     4104d), the Administrator shall use to carry out the program 
     established under section 1366 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4104c).
       (c) No Retroactive Accrual.--After the 5-year period 
     described in subsection (a), the Secretary of the Treasury 
     shall not require the Administrator to repay any interest 
     that, but for that subsection, would have accrued on the 
     borrowed amounts described in that subsection during that 5-
     year period.
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