[House Report 116-262]
[From the U.S. Government Publishing Office]
116th Congress } { Rept 116-262
HOUSE OF REPRESENTATIVES
1st Session } { Part 1
======================================================================
NATIONAL FLOOD INSURANCE PROGRAM REAUTHORIZATION ACT OF 2019
_______
October 28, 2019.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Ms. Waters, from the Committee on Financial Services, submitted the
following
R E P O R T
[To accompany H.R. 3167]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 3167) to reform and reauthorize the National
Flood Insurance Program, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 31
Background and Need for Legislation.............................. 32
Section-by-Section Analysis...................................... 35
Hearings......................................................... 40
Committee Consideration.......................................... 41
Committee Votes and Roll Call Votes.............................. 41
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 43
Statement of Performance Goals and Objectives.................... 43
New Budget Authority and CBO Cost Estimate....................... 43
Committee Cost Estimate.......................................... 55
Unfunded Mandate Statement....................................... 55
Advisory Committee............................................... 55
Committee Correspondence......................................... 56
Application of Law to the Legislative Branch..................... 58
Earmark Statement................................................ 58
Duplication of Federal Programs.................................. 58
Changes to Existing Law.......................................... 58
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``National Flood
Insurance Program Reauthorization Act of 2019''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Congressional findings.
TITLE I--REAUTHORIZATION AND AFFORDABILITY
Sec. 101. Program extension.
Sec. 102. Demonstration program for policy affordability.
Sec. 103. Premium and fees relief for families and small businesses.
Sec. 104. Monthly installment payment of premiums.
Sec. 105. State revolving loan funds for low-interest loans.
Sec. 106. Use of replacement cost value in estimating premium rates.
Sec. 107. Refund of premiums upon cancellation of policy because of
replacement with private flood insurance.
TITLE II--MAPPING
Sec. 201. Reauthorization of appropriations for National Flood Mapping
Program.
Sec. 202. National Flood Mapping Program.
Sec. 203. Flood mapping modernization and homeowner empowerment pilot
program.
Sec. 204. Mapping improvements and reach.
Sec. 205. Appeals regarding existing flood maps.
Sec. 206. Appeals and publication of projected special flood hazard
areas.
Sec. 207. Communication and outreach regarding map changes.
Sec. 208. Adoption of partial flood maps.
Sec. 209. New zone for levee-impacted areas.
Sec. 210. Agricultural structures in special flood hazard zones.
Sec. 211. Technical Mapping Advisory Council.
TITLE III--MITIGATION
Sec. 301. Increased cost of compliance coverage.
Sec. 302. Multiple-loss properties.
Sec. 303. Premium rates for certain mitigated properties.
Sec. 304. Coverage for cooperatives.
Sec. 305. Voluntary community-based flood insurance pilot program.
Sec. 306. Mitigation funding.
Sec. 307. Community Rating System improvements.
Sec. 308. Community assistance program for effective floodplain
management.
TITLE IV--MODERNIZATION
Sec. 401. Effect of private flood insurance coverage on continuous
coverage requirements.
Sec. 402. Optional coverage for umbrella policies.
Sec. 403. Annual independent actuarial study.
Sec. 404. Sharing of and access to information.
Sec. 405. Elevation certificates.
Sec. 406. Leveraging risk transfer opportunities for a sound financial
framework.
Sec. 407. Write-Your-Own arrangements.
Sec. 408. Study on increasing participation.
SEC. 2. CONGRESSIONAL FINDINGS.
The Congress finds that--
(1) since 2016, communities and families across the United
States have suffered over $300 billion in losses as a result of
flooding;
(2) flooding disasters in the United States present a threat
to people, property, and taxpayers;
(3) the National Flood Insurance Program (NFIP) is a key
component of the Federal Government's efforts to minimize the
damage and financial impact of floods;
(4) the NFIP is the principal provider of flood insurance in
the United States, covering over 5 million households and
businesses across the country;
(5) affordability of flood insurance coverage remains a
serious concern;
(6) investment in mitigation is a cost-effective means of
reducing risk;
(7) a policyholder's ability to pay for flood insurance
coverage should be considered for premium rate discounts; and
(8) in the absence of widespread private insurance industry
participation, and as a matter of national policy, the Federal
Government must ensure the availability and affordability of
flood insurance.
TITLE I--REAUTHORIZATION AND AFFORDABILITY
SEC. 101. PROGRAM EXTENSION.
(a) Financing.--Subsection (a) of section 1309 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by striking
``September 30, 2019'' and inserting ``September 30, 2024''.
(b) Program Expiration.--Section 1319 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4026) is amended by striking ``September 30,
2019'' and inserting ``September 30, 2024''.
(c) Retroactive Effective Date.--If this Act is enacted after
September 30, 2019, the amendments made by subsections (a) and (b)
shall take effect as if enacted on September 30, 2019.
SEC. 102. DEMONSTRATION PROGRAM FOR POLICY AFFORDABILITY.
(a) Authority.--
(1) In general.--The Administrator of the Federal Emergency
Management Agency shall establish and carry out a demonstration
program under this section to demonstrate the effectiveness of
providing means-tested discounted rates for flood insurance
coverage made available under the National Flood Insurance Act
of 1968 for eligible households.
(2) Consultation.--The Administrator may consult with the
Secretary of the Treasury and the Secretary of Housing and
Urban Development about the implementation of the program
established pursuant to paragraph (1).
(b) Eligible Households and Properties.--The Administrator may
provide discounted premium rates pursuant to this section only for
properties that are--
(1) 1- to 4-family residential properties; and
(2) the primary residence of a household whose income does
not exceed 80 percent of the area median income, as determined
by the Administrator in consultation with the Secretary of
Housing and Urban Development.
(c) Income Determinations.--For purposes of the program under this
section, the Administrator shall make determinations of household
income on an annual basis.
(d) Premium Discounts.--Notwithstanding any provision of the National
Flood Insurance Act of 1968, the chargeable premium rate for flood
insurance coverage made available under the program under this section
shall be an amount that does not exceed 2 percent of annual area median
income for the area within which is located the property for which the
coverage is provided.
(e) Disclosure of Full-risk Rate.--The Administrator shall provide to
each policyholder purchasing flood insurance coverage under the program
under this section for a property, not later than the commencement of
the period of such coverage, a written statement setting forth the full
actuarial premium rate for coverage for such property determined in
accordance with section 1307(a)(1) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4014(a)(1)), the amount of the premium discount for
such coverage, and any other information the Administrator considers
helpful to policyholders in understanding flood insurance coverage and
costs.
(f) Guidance.--Not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act, the Administrator
shall issue guidance providing for the establishment of the
demonstration program under this section, which shall include--
(1) an estimation of the cost of the program stated in terms
of the aggregate of premium discounts to be made available
under the program;
(2) a description of how the Administrator will determine
eligibility for households to participate in the program in
accordance with the requirements for eligibility in subsection
(b); and
(3) any new requirements to which policyholders participating
in the program will be subject; and
(4) the results of any consultation with the Secretary of the
Treasury or the Secretary of Housing and Urban Development.
(g) Report to Congress.--
(1) Collection of information.--The Administrator shall
collect by survey or other means, for each participating
community in the national flood insurance program and regarding
each year during the period beginning 5 years before
implementation of the demonstration program under this section
and ending upon the termination date under subsection (j), the
following information:
(A) The demographic characteristics of households
purchasing flood insurance coverage under such program.
(B) The average median income of such households.
(C) The number of properties located in areas for
which a major disaster related to flooding was declared
pursuant to the Robert T. Stafford Disaster Relief and
Emergency Assistance Act.
(D) The number of policies made available under the
national flood insurance program and the number and
aggregate amount of claims submitted under such
program.
(E) For all properties in such community receiving
discounted coverage under the demonstration program
under this section, the aggregate amount of the full
actuarial premium rate for coverage that is determined
in accordance with section 1307(a)(1) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)) and
the aggregate amount of premium discounts provided
under the demonstration program.
(F) For all properties in such community, any changes
to such full actuarial premium rates due to mapping
changes or other factors.
(2) Report to congress.--Not later than the expiration of the
5-year period beginning upon the implementation of the
demonstration program under this section, the Administrator
shall submit to the Congress a report evaluating the
effectiveness of the assistance provided under the program,
which shall include--
(A) a statement of the number of households
participating in the program and the rates of
participation by communities participating in the
national flood insurance program, including whether
such rates of participation have changed by year; and
(B) an estimate of the cost of the program to the
National Flood Insurance Fund under section 1310 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4017).
(h) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Federal Emergency Management Agency.
(2) Premium discount.--The term ``premium discount'' means,
with respect to a policy for flood insurance coverage under the
national flood insurance program made available under the
program under this section, the amount by which the full
actuarial premium rate for coverage for such property that is
determined in accordance with section 1307(a)(1) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1))
exceeds the chargeable premium rate for the coverage made
available under the program under this section.
(i) Termination.--The authority under this section to provide
discounted premium rates for flood insurance coverage shall terminate
on May 31, 2024.
SEC. 103. PREMIUM AND FEES RELIEF FOR FAMILIES AND SMALL BUSINESSES.
(a) Repeal of Surcharge.--
(1) Repeal.--Section 1308A of the National Flood Insurance
Act of 1968 (42 U.S.C. 4015a) is hereby repealed.
(2) Conforming amendments.--The National Flood Insurance Act
of 1968 is amended--
(A) in section 1308(m) (42 U.S.C. 4015(m))--
(i) in paragraph (1), by striking ``and the
surcharges required under section 1308A''; and
(ii) in paragraph (2), by striking ``or
surcharges''; and
(B) in section 1310A(c) (42 U.S.C. 4017a(c)), by
striking paragraph (4).
(b) Small Loan Exception to Mandatory Purchase Requirement.--
Subparagraph (A) of section 102(c)(2) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a(c)(2)(A)) is amended by striking
``$5,000'' and inserting ``$25,000''.
SEC. 104. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.
(a) Authority.--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:
``(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) 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.
``(C) Policyholder protection.--The Administrator
may--
``(i) during the 12-month period beginning on
the date of the enactment of this subparagraph,
charge policyholders choosing to pay premiums
in monthly installments a fee for the total
cost of the monthly collection of premiums not
to exceed $25 annually; and
``(ii) after the expiration of the 12-month
period referred to in clause (i), adjust the
fee charged annually to cover the total cost of
the monthly collection of premiums as
determined by the report submitted pursuant to
subparagraph (D).
``(D) Annual reports.--On an annual basis, the
Administrator shall report to the Committee on
Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of
the Senate the ongoing costs associated with the
monthly payment of premiums.''.
(b) Implementation.--Clause (ii) of section 1307(a)(1)(B) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(B)(ii)) is
amended by inserting before ``any administrative expenses'' the
following: ``the costs associated with the monthly collection of
premiums provided for in section 1308(g) (42 U.S.C. 4015(g)), but only
if such costs exceed the operating costs and allowances set forth in
clause (i) of this subparagraph, and''.
SEC. 105. STATE REVOLVING LOAN FUNDS FOR LOW-INTEREST LOANS.
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. STATE REVOLVING LOAN FUNDS FOR LOW-INTEREST LOANS.
``(a) Definitions.--In this section--
``(1) the term `Community Rating System' means the community
rating system carried out under section 1315(b);
``(2) the term `eligible State' means a State, the District
of Columbia, and the Commonwealth of Puerto Rico;
``(3) the term `insular area' means--
``(A) Guam;
``(B) American Samoa;
``(C) the Commonwealth of the Northern Mariana
Islands;
``(D) the Federated States of Micronesia;
``(E) the Republic of the Marshall Islands;
``(F) the Republic of Palau; and
``(G) the United States Virgin Islands;
``(4) the term `intended use plan' means a plan prepared
under subsection (d)(1);
``(5) the term `low-income geographic area' means an area
described in paragraph (1) or (2) of section 301(a) of the
Public Works and Economic Development Act of 1965 (42 U.S.C.
3161(a));
``(6) the term `low-income homeowner' means the owner of a
primary residence, the household income of which in a taxable
year is not more than 80 percent of the median income for the
area in which the residence is located;
``(7) the term `participating State' means an eligible State
that--
``(A) has entered into an agreement under subsection
(b)(1); and
``(B) agrees to comply with the requirements of this
section;
``(8) the term `pre-FIRM building' means a building for which
construction or substantial improvement occurred before the
effective date of the initial Flood Insurance Rate Map
published by the Administrator under section 1360 for the area
in which the building is located;
``(9) the term `repetitive-loss property' has the meaning
given the term in section 1370(a);
``(10) the term `severe repetitive-loss property' has the
meaning given the term in section 1370(a);
``(11) the term `State loan fund' means a flood mitigation
assistance revolving loan fund established by an eligible State
under this section; and
``(12) the term `tribal government' means the recognized
government of an Indian tribe, or the governing body of an
Alaska Native regional or village corporation, that has been
determined eligible to receive services from the Bureau of
Indian Affairs.
``(b) General Authority.--
``(1) In general.--The Administrator may enter into an
agreement with an eligible State to provide a capitalization
grant for the eligible State to establish a revolving fund that
will provide funding assistance to help homeowners, businesses,
nonprofit organizations, and communities reduce flood risk in
order to decrease--
``(A) the loss of life and property;
``(B) the cost of flood insurance; and
``(C) Federal disaster payments.
``(2) Timing of deposit and agreements for distribution of
funds.--
``(A) In general.--Not later than the last day of the
fiscal year following the fiscal year in which a
capitalization grant is made to a participating State
under paragraph (1), the participating State shall--
``(i) deposit the grant in the State loan
fund of the State; and
``(ii) enter into one or more binding
agreements that provide for the State to
distribute the grant funds for purposes
authorized under subsection (c) such that--
``(I) in the case of the initial
grant made under this section to a
State, not less than 75 percent of the
amount of the grant funds shall be
distributed before the expiration of
the 24-month period beginning upon
deposit of such funds in the State loan
fund of the State; and
``(II) in the case of any subsequent
grant made under this section to a
State, not less than 90 percent of the
amount of the grant funds made under
the capitalization grant shall be
distributed before the expiration of
the 12-month period beginning upon
deposit of such funds in the State loan
fund of the State.
``(B) Noncompliance.--Except as provided in
subparagraph (C), if a participating State does not
comply with subparagraph (A) with respect to a grant,
the Administrator shall reallocate the grant in
accordance with paragraph (3)(B).
``(C) Exception.--The Administrator may not
reallocate any funds under subparagraph (B) to a
participating State that violated subparagraph (A) with
respect to a grant made during the same fiscal year in
which the funds to be reallocated were originally made
available.
``(3) Allocation.--
``(A) In general.--The Administrator shall allocate
amounts made available to carry out this section to
participating States--
``(i) for the participating States to deposit
in the State loan funds established by the
participating States; and
``(ii) except as provided in paragraph (6),
in accordance with the requirements described
in subparagraph (B).
``(B) Requirements.--The requirements described in
this subparagraph are as follows:
``(i) Fifty percent of the total amount made
available under subparagraph (A) shall be
allocated so that each participating State
receives the percentage amount that is obtained
by dividing the number of properties that were
insured under the national flood insurance
program in that State in the fiscal year
preceding the fiscal year in which the amount
is allocated by the total number of properties
that were insured under the national flood
insurance program in the fiscal year preceding
the fiscal year in which the amount is
allocated.
``(ii) Fifty percent of the total amount made
available under subparagraph (A) shall be
allocated so that each participating State
receives a percentage of funds that is equal to
the product obtained under clause (iii)(IV)
with respect to that participating State after
following the procedures described in clause
(iii).
``(iii) The procedures described in this
clause are as follows:
``(I) Divide the total amount
collected in premiums for properties
insured under the national flood
insurance program in each participating
State during the previous fiscal year
by the number of properties insured
under the national flood insurance
program in that State for that fiscal
year.
``(II) Add together each quotient
obtained under subclause (I).
``(III) For each participating State,
divide the quotient obtained under
subclause (I) with respect to that
State by the sum obtained under
subclause (II).
``(IV) For each participating State,
multiply the amount that is 50 percent
of the total amount made available
under subparagraph (A) by the quotient
obtained under subclause (III).
``(iv) Except as provided in paragraph (5),
in a fiscal year--
``(I) a participating State may not
receive more than 15 percent of the
total amount that is made available
under subparagraph (A) in that fiscal
year; and
``(II) if a participating State,
based on the requirements under clauses
(i) through (iii), would, but for the
limit under subclause (I) of this
clause, receive an amount that is
greater than the amount the State is
authorized to receive under that
subclause, the difference between the
authorized amount and the amount
otherwise due to the State under
clauses (i) through (iii) shall be
allocated to other participating
States--
``(aa) that, in that fiscal
year, have not received an
amount under subparagraph (A)
that is more than the
authorized amount under
subclause (I) of this clause;
and
``(bb) by using the
requirements under clauses (i)
through (iii), except that a
participating State may receive
an allocation under this
subclause only if the
allocation does not result in
the State receiving a total
amount for the fiscal year
under subparagraph (A) that is
greater than the authorized
amount under subclause (I).
``(4) No revolving fund required.--
``(A) In general.--Notwithstanding any other
provision of this section, and subject to subparagraph
(B), a participating State that receives less than
$4,000,000 under paragraph (3)(B) in a fiscal year may
distribute the funds directly in the form of grants or
technical assistance for a purpose described in
subsection (c)(2), without regard to whether the State
has established a State loan fund.
``(B) State matching.--A participating State that
exercises the authority under subparagraph (A) in a
fiscal year shall provide matching funds from non-
Federal sources in an amount that is equal to 15
percent of the amount that the State receives under
paragraph (3)(B) in that fiscal year for purposes
described in subparagraph (A).
``(5) Allocation of remaining funds.--After allocating
amounts made available to carry out this section for a fiscal
year in accordance with paragraph (3), the Administrator shall
allocate any remaining amounts made available for that fiscal
year to participating States, using the procedures described in
clauses (i) through (iii) of paragraph (3)(B).
``(6) Allocation for tribal governments and insular areas.--
The Administrator shall reserve not less than 5.0 percent of
the amount made available to carry out this section in a fiscal
year to enter into grant agreements with tribal governments and
insular areas, with the grant funds to be distributed--
``(A) according to criteria established by the
Administrator; and
``(B) for a purpose described in subsection (c)(2).
``(7) Administrative costs; technical assistance.--The
Administrator shall reserve not more than 2.5 percent of the
amount made available to carry out this section in a fiscal
year--
``(A) for administrative costs incurred in carrying
out this section; and
``(B) to provide technical assistance to recipients
of grants under this section.
``(c) Use of Funds.--
``(1) In general.--Amounts deposited in a State loan fund,
including repayments of loans made from the fund and interest
earned on the amounts in the fund, shall be used--
``(A) consistent with paragraphs (2) and (3) and
subsection (g), to provide financial assistance for--
``(i) homeowners, businesses, and nonprofit
organizations that are eligible to participate
in the national flood insurance program;
``(ii) any local government that participates
in the national flood insurance program; and
``(iii) any State government agencies or
subdivisions of any State government that
engage in floodplain management activities;
``(B) as a source of revenue and security for
leveraged loans, the proceeds of which shall be
deposited in the State loan fund; or
``(C) for the sale of bonds as security for payment
of the principal and interest on revenue or general
obligation bonds issued by the participating State to
provide matching funds under subsection (g), if the
proceeds from the sale of the bonds are deposited in
the State loan fund.
``(2) Purposes.--A recipient of financial assistance provided
through amounts from a State loan fund--
``(A) shall use the amounts to reduce--
``(i) flood risk; or
``(ii) potential flood claims submitted under
the national flood insurance program;
``(B) shall use the amounts in a cost-effective
manner under requirements established by the State,
which may require an applicant for financial assistance
to submit any information that the State considers
relevant or necessary before the date on which the
applicant receives the assistance;
``(C) shall use the amounts for projects that--
``(i) meet design and construction standards
established by the Administrator;
``(ii) are located in communities that--
``(I) participate in the national
flood insurance program; and
``(II) have developed a State, local,
or tribal government hazard mitigation
plan that has been approved by the
Administrator under section 1366;
``(iii)(I) address a repetitive-loss property
or a severe repetitive-loss property; or
``(II) address flood risk in the 500-year
floodplain, areas of residual flood risk, or
other areas of potential flood risk, as
identified by the Administrator; and
``(iv) address current risk and anticipate
future risk, such as sea-level rise;
``(D) may use the amounts--
``(i) for projects relating to--
``(I) structural elevation;
``(II) floodproofing;
``(III) the relocation or removal of
buildings from the 100-year floodplain
or other areas of flood risk, including
the acquisition of properties for such
a purpose;
``(IV) environmental restoration
activities that directly reduce flood
risk;
``(V) any eligible activity described
in subparagraphs (A) through (G) of
section 1366(c)(3); or
``(VI) other activities determined
appropriate by the Administrator;
``(ii) with respect to a project described in
clause (i), only for expenditures directly
related to a project described in that clause,
including expenditures for planning, design,
and associated pre-construction activities; and
``(iii) to acquire, for the purposes of
permanent protection, land, buildings, or a
conservation easement from a willing seller or
grantor;
``(E) may not use the amounts--
``(i) to construct buildings or expand
existing buildings unless the activity is for
the purpose of flood mitigation;
``(ii) to improve any structure, unless the
recipient has obtained flood insurance coverage
in an amount at least equal to the lesser of
the eligible project costs or the maximum
insurable limit for the structure under the
national flood insurance program coverage for
the structure, which coverage shall be
maintained for the useful life of the
structure;
``(iii) to improve a residential property
with an appraised value that is not less than
125 percent of the limitation on the maximum
original principal obligation of a conventional
mortgage that may be purchased by the Federal
National Mortgage Association or the Federal
Home Loan Mortgage Corporation in the area in
which the property is located, as established
under section 302(b)(2) of the Federal National
Mortgage Association Charter Act (12 U.S.C.
1717(b)(2)) and section 305(a)(2) of the
Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1454(a)(2));
``(iv) for the direct benefit of a homeowner
if the annual household adjusted gross income
of the homeowner during the previous fiscal
year was not less than $200,000, as annually
adjusted by the Administrator to reflect
changes in the Consumer Price Index for All
Urban Consumers, as published by the Bureau of
Labor Statistics of the Department of Labor and
rounded to the nearest $25; or
``(v) to acquire real property or an interest
in real property unless the property is
purchased from a willing seller; and
``(F) shall, in the use of such amounts, give
priority to the maximum extent practicable to projects
that assist low-income homeowners and low-income
geographical areas.
``(d) Intended Use Plans.--
``(1) In general.--After providing the opportunity for public
review and comment, each participating State shall annually
prepare a plan that identifies, for the year following the date
of issuance of the intended use plan, the intended uses of the
amounts available in the State loan fund of the participating
State.
``(2) Consultation during preparation.--Each participating
State, in preparing an intended use plan, shall ensure that the
State agency with primary responsibility for floodplain
management--
``(A) provides oversight with respect to the
preparation of the intended use plan; and
``(B) consults with any other appropriate State
agency, including agencies responsible for coastal and
environmental management.
``(3) Contents.--A participating State shall, in each
intended use plan--
``(A) include--
``(i) an explanation of the mitigation and
resiliency benefits the State intends to
achieve, including by--
``(I) reducing future damage and loss
associated with flooding;
``(II) reducing the number of severe
repetitive-loss properties and
repetitive-loss properties in the
State;
``(III) decreasing the number of
flood insurance claims in the State;
and
``(IV) increasing the rating under
the Community Rating System for
communities in the State;
``(ii) information with respect to the
availability of, and the application process
for receiving, financial assistance from the
State loan fund of the State;
``(iii) the criteria and methods established
for the distribution of amounts from the State
loan fund of the State;
``(iv) the amount of financial assistance
that the State anticipates allocating to--
``(I) local government projects; and
``(II) projects for homeowners,
business, or nonprofit organizations;
``(v) the expected terms of the assistance
provided under clause (iv); and
``(vi) a description of the financial status
of the State loan fund and the short-term and
long-term goals of the State loan fund; and
``(B) provide, to the maximum extent practicable,
that priority for the use of amounts from the State
loan fund shall be given to projects that--
``(i) address severe repetitive-loss
properties and repetitive-loss properties;
``(ii) assist low-income homeowners and low-
income geographic areas; and
``(iii) address flood risk for pre-FIRM
buildings.
``(4) Publication.--Each participating State shall publish
and periodically update a list of all projects receiving
funding from the State loan fund of the State, which shall
include identification of--
``(A) the community in which the project is located;
``(B) the type and amount of assistance provided for
each project; and
``(C) the expected funding schedule and date of
completion of each project.
``(e) Fund Management.--Amounts in a State loan fund shall--
``(1) remain available for providing financial assistance
under this section until distributed;
``(2) if the amounts are not required for immediate
distribution or expenditure, be invested in interest-bearing
obligations; and
``(3) except as provided in subsection (i), include only--
``(A) amounts received from capitalization grants
made under this section;
``(B) repayments of loans made from the fund; and
``(C) interest earned on amounts in the fund.
``(f) Matching Funds.--
``(1) Full grant.--On or before the date on which a
participating State receives a capitalization grant, the State
shall deposit into the State loan fund of the State, in
addition to the amount of the capitalization grant, an amount
from non-Federal sources that is not less than 10 percent of
the total amount of the capitalization grant.
``(2) Reduced grant.--Notwithstanding paragraph (1), if a
State deposits in the State loan fund of the State in
connection a capitalization grant an amount from non-Federal
sources that is less than 10 percent of the total amount of the
capitalization grant that would otherwise be received by the
State, the Administrator shall reduce the amount of the
capitalization grant received by the State to the amount that
is 10 times the amount so deposited and shall allocate such
remaining grant amounts under subsection (b)(5) together with
the amounts allocated under such subsection.
``(g) Types of Assistance.--Unless otherwise prohibited by State law,
a participating State may use the amounts deposited into a State loan
fund under this section only--
``(1) to make a loan, on the condition that--
``(A) the interest rate for the loan is not more than
the market interest rate;
``(B) the recipient of the loan will begin making
principal and interest payments on the loan not later
than 1 year after the date on which the project for
which the loan was made is completed;
``(C) the loan will be fully amortized not later than
20 years after the date on which the project for which
the loan was made is completed, except that, in the
case of a loan made for a project in a low-income
geographic area or to a low-income homeowner, the State
may provide a longer amortization period for the loan
if that longer period--
``(i) ends on a date that is not later than
30 years after the date on which the project is
completed; and
``(ii) is not longer than the expected design
life of the project;
``(D) the recipient of the loan demonstrates, based
on verified and documented information that, at the
time the loan is consummated, that the recipient has a
reasonable ability to repay the loan, according to its
terms, except that this subparagraph may not be
construed to authorize any reduction or limitation in
efforts to comply with the requirements of subsection
(c)(2)(E) (relating to priority for assistance for low-
income homeowners and low-income geographical areas);
and
``(E) payments of principal and interest with respect
to the loan will be deposited into the State loan fund;
``(2) to buy or refinance the debt obligation of a local
government related to flood mitigation or resiliency
activities, at an interest rate that is not more than the
market interest rate;
``(3) to guarantee, or purchase insurance for, a local
obligation, the proceeds of which finance a project eligible
for assistance under this section, if the guarantee or
purchase, as applicable, would--
``(A) improve credit market access; or
``(B) reduce the interest rate with respect to the
obligation;
``(4) as a source of revenue or as security for the payment
of principal and interest on revenue or general obligation
bonds issued by the State if the proceeds of the sale of the
bonds will be deposited into the State loan fund; or
``(5) to earn interest on those amounts.
``(h) Assistance for Low-Income Homeowners and Low-Income Geographic
Areas.--
``(1) In general.--Notwithstanding any other provision of
this section, if a participating State uses amounts from a
State loan fund to provide financial assistance under
subsection (c) in a low-income geographic area or to a low-
income homeowner, the State may provide additional
subsidization to the recipient of the assistance, including
forgiveness of the principal of a loan.
``(2) Limitation.--For each fiscal year, the total amount of
additional subsidization provided by a participating State
under paragraph (1) may not exceed 30 percent of the amount of
the capitalization grant allocated to the State for that fiscal
year.
``(i) Administration of Fund.--
``(1) In general.--A participating State may combine the
financial administration of a State loan fund with the
financial administration of any other revolving fund
established by the State if--
``(A) combining the administration of the funds
would--
``(i) be convenient and avoid administrative
costs; and
``(ii) not violate the law of the State; and
``(B) the Administrator determines that--
``(i) amounts obtained from a grant made
under this section, amounts obtained from the
repayment of a loan made from a State loan
fund, and interest earned on amounts in a State
loan fund will be--
``(I) accounted for separately from
amounts from other revolving funds; and
``(II) used only for purposes
authorized under this section; and
``(ii) after consulting with the appropriate
State agencies, the authority to establish
assistance priorities and carry out oversight
and related activities, other than financial
administration, with respect to flood
assistance remains with the State agency with
primary responsibility for floodplain
management.
``(2) Administrative and technical costs.--
``(A) In general.--For each fiscal year, a
participating State may use the amount described in
subparagraph (B) to--
``(i) pay the reasonable costs of
administration of the programs under this
section, including the recovery of reasonable
costs incurred in establishing a State loan
fund;
``(ii) provide appropriate oversight of
projects authorized under this section; and
``(iii) provide technical assistance and
outreach to recipients in the State of amounts
under this section, including with respect to
updating hazard mitigation plans and
participating in the Community Rating System,
in an amount that is not more than 4 percent of
the funds made available to the State under
this section.
``(B) Description.--The amount described in this
subparagraph is an amount equal to the sum of--
``(i) any fees collected by a participating
State to recover the costs described in
subparagraph (A)(i), regardless of the source;
and
``(ii) the greatest of--
``(I) $400,000;
``(II) 0.2 percent of the value of
the State loan fund of a State, as of
the date on which the valuation is
made; and
``(III) an amount equal to 7 percent
of all grant awards made to a
participating State for the State loan
fund of the State under this section
for the fiscal year.
``(3) Audit and report.--
``(A) Audit requirement.--Not less frequently than
biennially, each participating State shall conduct an
audit of the State loan fund of the State.
``(B) Report.--Each participating State shall submit
to the Administrator a biennial report regarding the
activities of the State under this section during the
period covered by the report, including--
``(i) the result of any audit conducted by
the State under subparagraph (A); and
``(ii) a review of the effectiveness of the
State loan fund of the State with respect to--
``(I) the intended use plans of the
State; and
``(II) meeting the objectives
described in subsection (b)(1).
``(4) Oversight.--In conducting oversight with respect to
State loan funds established under this section, the
Administrator--
``(A) shall--
``(i) periodically audit the funds in
accordance with procedures established by the
Comptroller General of the United States; and
``(ii) not less frequently than once every 4
years, review each State loan fund to determine
the effectiveness of the fund in reducing flood
risk; and
``(B) may, at any time--
``(i) make recommendations to a participating
State with respect to the administration of the
State loan fund of the State; or
``(ii) require specific changes with respect
to a State loan fund in order to improve the
effectiveness of the fund.
``(j) Liability Protections.--The Federal Government shall not be
liable for any claim based upon the exercise or performance of, or the
failure to exercise or perform, a discretionary function or duty on the
part of the Federal agency, or an employee of the Federal Government,
in carrying out the provision of this section.
``(k) Regulations.--The Administrator shall promulgate such guidance
or regulations as may be necessary to carry out this section, including
guidance or regulations that--
``(1) ensure that each participating State to which funds are
allocated under this section uses the funds as efficiently as
possible;
``(2) reduce, to the maximum extent practicable, waste,
fraud, and abuse with respect to the implementation of this
section; and
``(3) require any party that receives funds directly or
indirectly under this section, including a participating State
and a recipient of amounts from a State loan fund, to use
procedures with respect to the management of the funds that
conform to generally accepted accounting standards.
``(l) Authorization of Appropriations.--There ia authorized to be
appropriated to carry out this section $50,000,000 for each of fiscal
years 2020 through 2024.''.
SEC. 106. USE OF REPLACEMENT COST VALUE IN ESTIMATING PREMIUM RATES.
Section 1307 of the National Flood Insurance Act of 1968 (42 U.S.C.
4014) is amended by adding at the end the following new subsection:
``(i) Use of Replacement Cost Value.--In determining affordability
for insurance provided under this title, the Administrator may
consider, where appropriate, the impact of the inclusion of the
replacement cost or other settlement basis of the structure.''.
SEC. 107. 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.''.
TITLE II--MAPPING
SEC. 201. REAUTHORIZATION OF APPROPRIATIONS FOR NATIONAL FLOOD MAPPING
PROGRAM.
Subsection (f) of section 100216 of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4101(b)) is amended by striking
``$400,000,000 for each of fiscal years 2013 through 2017'' and
inserting ``$500,000,000 for each of fiscal years 2019 through 2023''.
SEC. 202. NATIONAL FLOOD MAPPING PROGRAM.
(a) Inclusion of Cadastral Features in Rate Maps.--Section
100216(b)(3) of the Biggert-Waters Flood Insurance Reform Act of 2012
(42 U.S.C. 4101b(b)(3)) is amended--
(1) in subparagraph (D), by striking ``and'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(F) cadastral features, including, for each
cadastral feature--
``(i) the associated parcel identification
data for such cadastral feature; and
``(ii) to the maximum extent practicable,
using public and private sector address data,
the address of such cadastral feature.''.
(b) Format of Rate Maps.--Section 100216(c)(2) of the Biggert-Waters
Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b(c)(2)) is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(D) spatially accurate in accordance with the
common protocols for geospatial data under section 757
of the Geospatial Data Act of 2018 (43 U.S.C. 2806).''.
(c) Additional Considerations.--Section 100216 of the Biggert-Waters
Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b) is amended--
(1) by redesignating subsection (f) as subsection (m); and
(2) by inserting after subsection (e) the following:
``(g) Stream Flow Networks.--
``(1) In general.--The Administrator shall coordinate with
the United States Geological Survey for the sharing of data
from stream flow networks critical to the National Flood
Insurance Program, flood risk mapping, and flood risk
assessments, to ensure that--
``(A) the stream gage stations in such stream flow
networks are operational and use modern hardware;
``(B) such stream flow networks are sufficiently
densified by adding new stream gage stations in high-
risk areas;
``(C) inactive critical stream gage stations in such
stream flow networks are reactivated; and
``(D) the speed of the geospatial real-time data
feeds from such stream gage stations is increased.
``(2) Definitions.--In this subsection:
``(A) Stream flow network.--The term `stream flow
network' means a network of stream flow gages
maintained under the direction of the United States
Geological Survey and its partners that is used to
measure or record the flow of water down a stream or
river, or through an entire watershed system, and
transmit such information using a geospatial real-time
data feed.
``(B) Stream gage station.--The term `stream gage
station' means a device installed at the edge of a
river or stream that measures or records the flow of
water down the stream and additional information such
as water height, water chemistry, and water
temperature.
``(3) Rule of construction.--The purpose of this subsection
is to require cooperation between the Federal Emergency
Management Agency and United States Geological Survey and
nothing in this subsection may be construed to require or
obligate funding expenditures.
``(h) Availability of Data to Public.--The Administrator shall make
available to the public on the website of the Federal Emergency
Management Agency a national geospatial data repository that--
``(1) provides access to the raw data used to include the
cadastral features and parcel identification data in National
Flood Insurance Program rate maps;
``(2) to the extent that such data is available, allows users
to view, query, and obtain such data at multiple levels of
detail, including down to the property level;
``(3) allows users to view flood risks, flood insurance
zones, and flood elevations;
``(4) provides access to flood mapping and related
information such as--
``(A) hydrologic and hydraulic models used in
determining flood risk;
``(B) structure footprints where available as part of
a national structure inventory;
``(C) flood depth grids;
``(D) flood risk reports;
``(E) flood risk assessments (Hazus analyses);
``(F) hazard mitigation plans; and
``(G) other flood risk products at the discretion of
the Administrator; and
``(5) maintains and disseminates such data in a consistent
manner.
``(i) Ensuring Current Data.--Not less frequently than once every 5
years, the Administrator shall verify that each National Flood
Insurance Program rate map contains data that is current and credible.
``(j) Qualifications-Based Selection Contracting.--
``(1) In general.--With respect to a contract awarded by the
Administrator under this Act, or by an entity receiving a grant
under this Act, for program management, architectural and
engineering services, or surveying and mapping, such a contract
shall be awarded to a contractor selected in accordance with
the procedures described in section 1103 of title 40, United
States Code (or an applicable equivalent State qualifications-
based statute). The Administrator, or entity, as the case may
be, shall require such contractor, as a condition of such
contract, to award any subcontract for program management,
architectural and engineering services, or surveying and
mapping in accordance with the procedures described in the
previous sentence, or the applicable equivalent State statute.
``(2) Relationship to state law.--Nothing in this subsection
shall supersede any applicable State licensing law governing
professional licensure.
``(3) Definitions.--In this subsection:
``(A) Architectural and engineering services.--The
term `architectural and engineering services' has the
meaning given that term in section 1102 of title 40,
United States Code.
``(B) Surveying and mapping.--The term `surveying and
mapping' includes geospatial activities associated with
measuring, locating, and preparing maps, charts, or
other graphical or digital presentations depicting
natural and man-made physical features, phenomena, and
legal boundaries of the earth, including the following:
``(i) Topographic Engineering Surveying,
including acquisition of topographic oriented
surveying and mapping data for design,
construction, master planning, operations, as-
built conditions, precise structure stability
studies using conventional and electronic
instrumentation, photogrammetric, LiDAR, remote
sensing, inertial, satellite, and other manned
and unmanned survey methods as applicable.
``(ii) Hydrographic Engineering Surveying,
including acquisition of hydrographic oriented
surveying and mapping data for design,
construction, dredging, master planning,
operations, and as-built conditions using
conventional and electronic instrumentation,
and photogrammetric, remote sensing, inertial,
satellite, side scan sonar, subbottom
profiling, and other surveying methods, as
applicable.
``(iii) Land Surveying, including property
and boundary surveys, monumentation, marking
and posting, and preparation of tract
descriptions, using conventional, electronic
instrumentation, photogrammetric, inertial,
satellite, and other survey methods, as
applicable.
``(iv) Geodetic Surveying, including first,
second, and third order horizontal and vertical
control surveys, geodetic astronomy, gravity
and magnetic surveys using conventional,
electronic instrumentation, photogrammetric,
inertial, satellite, and other survey methods,
as applicable.
``(v) Cartographic Surveying, including
acquisition of topographic and hydrographic
oriented surveying and mapping data for
construction of maps, charts, and similar
products for planning, flood analysis, and
general use purposes using conventional and
electronic instrumentation, photogrammetric,
inertial, satellite, mobile, terrestrial, and
other survey methods, as applicable.
``(vi) Mapping, charting, and related
geospatial database development, including the
design, compilation, digitizing, attributing,
scribing, drafting, printing and dissemination
of printed or digital map, chart, and related
geospatial database products associated with
planning, engineering, operations, and related
real estate activities using photogrammetric,
geographic information systems, and other
manual and computer assisted methods, as
applicable.
``(k) Definitions.--In this section:
``(1) Cadastral feature.--The term `cadastral feature' means
the geographic elements and features--
``(A) that are independent of elevation, such as
roads, structure footprints, and rivers and lakes;
``(B) which are represented on maps to show the true
location and size of the elements in relationship to
each other, as they are seen from the air; and
``(C) that are mapped from LiDAR or aerial
photography by employing basic photogrammetry.
``(2) Parcel identification data.--The term `parcel
identification data' means the information associated with a
parcel of land, including the geographic location, unique
parcel identifier, boundaries, structures contained within the
parcel, zoning classification, and owner.''.
SEC. 203. FLOOD MAPPING MODERNIZATION AND HOMEOWNER EMPOWERMENT PILOT
PROGRAM.
(a) In General.--The Administrator of the Federal Emergency
Management Agency shall carry out a pilot program to make grants to
units of local government to enhance the mapping of urban flooding and
associated property damage and the availability of such mapped data to
homeowners, businesses, and units of local government to enable them to
minimize the risk of such flooding.
(b) Objectives.--Amounts from grants made under the pilot program
under this section may be used only to carry out activities to meet the
following objectives:
(1) To develop a methodology for assessing urban flood risk
through the deployment of technology-based mapping tools that
are easily understandable by the public and effectively convey
information regarding the level of flood risk.
(2) To provide structure-specific projections of annual
chance flood frequency.
(3) To provide structure-based flood-risk assessments.
(4) To provide urban flood-risk mitigation program design.
(5) To incorporate information regarding climate trends into
urban flooding risk assessments.
(6) To make the information described in this subsection
publicly available on the internet through a web-based portal
so as to increase transparency regarding homeowner flood risks,
except that the Administrator may not disclose such information
to the public or to a private company in a manner that violates
section 552a of title 5, United States Code, or any regulation
implementing that section.
(c) Eligible Recipients.--
(1) In general.--Grants under the pilot program under this
section may be made only to units of general local government
located in urbanized areas, as such term is used by the Bureau
of the Census of the Department of Commerce, having populations
exceeding 50,000 or to stormwater management authorities of
such units of general local government.
(2) One-time grants.--A grant under the pilot program under
this section may not be made to--
(A) any unit of general local governmental, or
stormwater management authority of a unit of general
government, that has previously received a grant under
the pilot program;
(B) any unit of general local government if the
stormwater management agency for such unit has
previously received a grant under the pilot program; or
(C) any stormwater management agency of a unit of
general local government if such unit has previously
received a grant under the pilot program.
(3) Treatment of stormwater management authorities.--In the
case of a stormwater management authority that operates with
respect to more than one unit of general local government, the
application of such authority shall be considered for purposes
of paragraph (2) of this subsection and subsections (e), (f),
and (g)(1) to be made for the largest unit of general local
government for which such authority operates. The preceding
sentence shall not limit the ability of such authority to carry
out activities under the demonstration project in any other
jurisdictions or unit of local government with respect to which
the authority operates.
(d) Applications.--To be eligible for a grant under this section a
unit of general local government or stormwater management agency shall
submit to the Administrator an application in such form and containing
such information as the Administrator shall require.
(e) Selection of Recipients.--
(1) Annual selection.--Subject to paragraph (2) and to the
submission of approvable applications, in each fiscal year for
which amounts are made available for grants under the pilot
program under this section the Administrator shall select, from
among applications submitted under subsection (d) for such
fiscal year, 3 units of general government or stormwater
management authorities to receive grants under the pilot
program under this section.
(2) Aggregate limit.--Subject only to the submission of
approvable applications, the Administrator shall select, in the
aggregate over the entire duration of the pilot program under
this section, 12 units of general government or stormwater
management authorities to receive grants under the pilot
program, as follows:
(A) Tier 1.--Three of the applicants selected shall
be units of general local government, or stormwater
management authorities for such units, having a
population exceeding 800,000, as follows:
(i) Pelagic coastal city.--One shall be a
unit of general local government, or stormwater
authority for such a unit, that is a pelagic
unit.
(ii) Non-pelagic coastal city.--One shall be
unit of general local government, or stormwater
authority for such a unit, that is a coastal
unit, but not a pelagic unit.
(iii) Non-coastal city.--One shall be unit of
general local government, or stormwater
authority for such a unit, that is not a
coastal unit.
(B) Tier 2.--Six of the applicants selected shall be
units of general local government, or stormwater
management authorities for such units, having a
population exceeding 200,000 but not exceeding 800,000,
as follows:
(i) Coastal cities.--Three shall be units of
general local government, or stormwater
management authorities for such units, that are
coastal units.
(ii) Non-coastal cities.--Three shall be
units of general local government, or
stormwater management authorities for such
units, that are not coastal units.
(C) Tier 3.--Three of the applicants selected shall
be units of general local government, or stormwater
management authorities for such units, having a
population exceeding 50,000 but not exceeding 200,000.
(f) Priority.--
(1) In general.--The Administrator shall select applicants
for grants under the pilot program under this section based on
the extent to which their applications will achieve the
objectives set forth in subsection (b).
(2) Tiers 2 and 3.--In selecting applicants to receive grants
under the pilot program under this section pursuant to
subparagraphs (B) and (C) of subsection (e)(2), the
Administrator shall give priority to applicants--
(A) that are highly vulnerable to sea level rise;
(B) within which are located a military installation
or other facility relating to national security
concerns; or
(C) that have a population that is highly vulnerable
to urban flooding and have an uneven capacity for flood
mitigation and response efforts resulting from
socioeconomic factors.
(g) Amount.--
(1) Considerations.--In determining the amount of grant under
the pilot program under this section, the Administrator shall
consider the population of the grant recipient, which may be
considered in terms of the tier under subsection (e)(2) of the
recipient.
(2) Federal share.--The amount of a grant under the pilot
program under this section may not exceed 75 percent of the
total cost of the activities under subsection (b) to be carried
out using the grant amounts.
(h) Duration.--The Administrator shall require each recipient of a
grant under the pilot program under this section to complete the
activities under subsection (b) to be carried out using the grant
amounts before the expiration of the 18-month period beginning upon the
initial receipt of grant amounts under the pilot program.
(i) Use of Census Data.--The Administrator shall make all
determinations under the pilot program regarding population using the
most recent available data from the decennial census.
(j) Grantee Reports to FEMA.--Each recipient of a grant under the
pilot program under this section shall, not later than the expiration
of the 30-month period beginning upon the initial receipt of any such
grant amounts, submit to the Administrator a report that describes--
(1) the activities carried out with amounts from the grant;
(2) how the activities carried out with such grant amounts
have met the objectives described in subsection (b); and
(3) any lessons learned in carrying out such activities and
any recommendations for future mapping modernization efforts by
the Federal Emergency Management Agency.
(k) Biennial Reports by FEMA.--Not later than the expiration of the
24-month period beginning on the date of the enactment of this Act, and
not later than the expiration of each successive 24-month period
thereafter until the completion of all activities carried out with
amounts from grants under the pilot program under this section, the
Administrator shall submit to the Congress and make available to the
public on an internet website a report that--
(1) describes--
(A) the progress of the activities carried out with
amounts from such grants; and
(B) the effectiveness of technology-based mapping
tools used in carrying out the activities described in
subparagraph (A); and
(2) with respect to the final report that the Administrator
is required to submit under this subsection, includes
recommendations to the Congress and the executive branch of the
Federal Government for implementing strategies, practices, and
technologies to mitigate the effects of urban flooding.
(l) Sense of Congress.--It is the sense of the Congress that, because
the pilot program is limited with respect to scope and resources,
communities that participate in the pilot program should acknowledge
that the most successful efforts to mitigate the effects of urban
flooding--
(1) take a structural-based mitigation approach with respect
to construction, which includes--
(A) recognizing any post-storm damage that may occur;
and
(B) pursuing designs that proactively minimize future
flood damage;
(2) make individuals in the community aware, through any
cost-effective and available means of education, of the best
approaches regarding the construction of properties that are
able to survive floods, which reduces the cost of future
repairs; and
(3) encourage home and property owners to consider the
measures described in paragraphs (1) and (2), which are the
most cost-effective and prudent ways to reduce the impact of
flooding, when constructing or renovating building components.
(m) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Federal Emergency Management Agency.
(2) Coastal.--The term ``coastal'' means, with respect to a
unit of general local government, that the unit borders a body
of water that--
(A) exceeds 2,000 square miles in size; and
(B) is not a river.
(3) Pelagic.--The term ``pelagic'' means, with respect to a
unit of general local government, that the unit is a coastal
unit and the body of water that the unit borders is an ocean or
other large, open body of water (including bays and gulfs) that
empties into an ocean.
(4) Urban flooding.--
(A) In general.--The term ``urban flooding'' means
the inundation of property in a built environment,
particularly in more densely populated areas, caused
either by falling rain collecting on impervious
surfaces or increasing the levels of nearby water
bodies and overwhelming the capacity of drainage
systems, such as storm sewers, including--
(i) situations in which stormwater enters
buildings through windows, doors, or other
openings;
(ii) water backup through sewer pipes,
showers, toilets, sinks, and floor drains;
(iii) seepage through walls and floors;
(iv) the accumulation of water on property or
public rights-of-way; and
(v) the overflow from water bodies, such as
rivers, lakes, and oceans.
(B) Exclusion.--Such term does not include flooding
in undeveloped or agricultural areas.
(n) Funding.--There is authorized to be appropriated for grants under
the pilot program under this section--
(1) $1,200,000 for fiscal year 2020; and
(2) $4,300,000 for fiscal year 2021, to remain available
through 2023.
SEC. 204. MAPPING IMPROVEMENTS AND REACH.
(a) Expanding Mapping to All Areas of the United States.--
Subparagraph (A) of section 100216(b)(1) of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)(1)(A)) is amended--
(1) in clause (v), by striking ``and'' at the end;
(2) by redesignating clause (vi) as clause (vii); and
(3) by inserting after clause (v) the following:
``(vi) all areas of the United States; and''.
(b) Use of Other Federal Agencies and LIDAR.--Section 100216 of the
Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b) is
amended--
(1) in subsection (b)(1)--
(A) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively;
(B) by inserting after subparagraph (A) the
following:
``(B) as soon as practicable--
``(i) modernize the flood mapping inventory
for communities for which the National Flood
Insurance Program rate maps have not been
modernized; and
``(ii) in coordination with communities,
utilize the digital display environment
established under subsection (f)(1)(A) to
produce, store, and disseminate any flood
hazard data, models, and maps generated under
clause (i) while ensuring that the flood
mapping inventory described in that clause may
be printed in order to carry out--
``(I) floodplain management programs
under the National Flood Insurance Act
of 1968 (42 U.S.C. 4001 et seq.); and
``(II) other purposes of the National
Flood Insurance Program;'';
(C) in subparagraph (C), as so redesignated, by
striking ``and'' at the end;
(D) in subparagraph (D), as so redesignated, by
striking the period at the end and inserting ``, and
including the most current and most appropriate remote
sensing or other geospatial mapping technology;'';
(E) by adding at the end the following:
``(E) when appropriate, partner with other Federal
agencies, States, communities, and private entities in
order to meet the objectives of the program; and
``(F) when appropriate, consult and coordinate with
the Secretary of Defense, the Director of the United
States Geological Survey, and the Administrator of the
National Oceanic and Atmospheric Administration to
obtain the most up-to-date maps and other information
of those agencies, including information relating to
topography, water flow, watershed characteristics, and
any other issues that are relevant to identifying,
reviewing, updating, maintaining, and publishing
National Flood Insurance Program rate maps.'';
(2) by inserting after subsection (e) the following new
subsection:
``(f) Digital Display Environment and Building-specific Flood Hazard
and Risk Information.--
``(1) Establishment.--
``(A) In general.--Not later than 5 years after the
date of enactment of the National Flood Insurance
Program Reauthorization Act of 2019, the Administrator,
in consultation with the Technical Mapping Advisory
Council, shall establish, as part of a national
structure inventory, a dynamic, database-derived
digital display environment for flood hazard and risk
data, models, maps, and assessments.
``(B) Consultation with states and communities.--In
designing and constructing the digital display
environment under subparagraph (A), the Administrator
shall--
``(i) leverage and partner with States and
communities that have successfully implemented
the same approach; and
``(ii) consider adopting the techniques and
technologies used by the States and communities
described in clause (i) and applying those
techniques and technologies nationwide.
``(2) Digital display system.--
``(A) In general.--In carrying out paragraph (1), the
Administrator, in consultation with the Technical
Mapping Advisory Council, shall establish a national
digital display system that shall--
``(i) be prompted through dynamic querying of
a spatial, relational flood hazard and risk
database;
``(ii) as permissible under law, be made
available to the public;
``(iii) to the extent feasible, and where
sufficient data is available, provide
information, with respect to individual
structures, regarding--
``(I) flood hazard and risk
assessment determinations;
``(II) flood insurance; and
``(III) flood risk mitigation
efforts;
``(iv) be constructed in a manner that
facilitates coordination with digital display
systems that--
``(I) have been developed by State
and community partners; and
``(II) the Administrator finds are
acceptable;
``(v) include the capability to print
physical copies of maps; and
``(vi) where feasible, allow for the
maintenance and storage of elevation
certificates.
``(B) Privacy requirements.--The Administrator may
not disseminate the database described in subparagraph
(A)(i), including any data used to create that
database, to the public or to a private company in a
manner that violates section 552a of title 5, United
States Code, or any regulation implementing that
section.'';
(3) by inserting after subsection (k), as added by the
preceding provisions of this Act, the following:
``(l) Annual Report.--The Administrator, in coordination with the
Technical Mapping Advisory Council established under section 100215 of
this Act, shall submit to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate an annual report regarding progress
achieved in the mapping program under this section, including the
digital display and structure-specific information required under
subsection (f), which shall include recommendations to reduce the cost
and improve the implementation of that subsection.''.
(c) Future Flood Risk.--Section 100216(d) of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4101b) is amended by adding at
the end the following:
``(3) Future flood risk.--The Administrator shall, in
consultation with the Technical Mapping Council established
under section 100215, provide financial and technical
assistance to communities to incorporate future flood hazard
conditions as an informational layer on their Flood Insurance
Rate Maps.''.
SEC. 205. 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.--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) 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)(6) 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. 206. 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''.
SEC. 207. 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''.
SEC. 208. ADOPTION OF PARTIAL FLOOD MAPS.
Subsection (f) of section 1360 of the National Flood Insurance Act of
1968 (42 U.S.C. 4101(f)) is amended by adding at the end the following
new flush matter:
``Panels of the revised flood insurance rate maps for which no appeal
has been submitted during the 90-day period referred to in subsection
(b) shall be considered final.''.
SEC. 209. NEW ZONE FOR LEVEE-IMPACTED AREAS.
Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C.
4101), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following:
``(l) Levee-Impacted Areas.--
``(1) In general.--Subject to full implementation of
subparagraphs (A)(iii) and (B) of section 100216(b)(1) of the
Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C.
4101b(b)(1)) and notwithstanding any other provision of law, if
a community applies to the Administrator for the remapping of a
levee-impacted area in which the pertinent levee system fails
to meet the minimum design, operation, and maintenance
standards of the National Flood Insurance Program required for
levee accreditation on a flood insurance rate map in accordance
with the Levee Analysis Mapping Procedure initiated by the
Administrator to replace the `without levees' approach to a
Flood Insurance Study, the Administrator shall--
``(A) establish flood risk zones for those levee-
impacted areas on such maps, to be known as `AL-E
zones', that have an established elevation for
community floodplain management; and
``(B) make flood insurance available to properties
located within those levee-impacted areas.
``(2) Transition.--During the period beginning on the date of
enactment of this subsection and ending on the date on which
the Administrator develops rates for the various AL-E zones, a
structure located in a portion of a community that is located
within a levee-impacted area described in paragraph (1) shall
be eligible for rates associated with areas of moderate flood
hazards.''.
SEC. 210. AGRICULTURAL STRUCTURES IN SPECIAL FLOOD HAZARD ZONES.
(a) Requirements for State and Local Land Use Controls.--Subsection
(a) of section 1315 of the National Flood Insurance Act of 1968 (42
U.S.C. 4022(a)) is amended by adding at the end the following new
paragraph:
``(3) Allowable local variances for certain agricultural
structures.--
``(A) Requirement.--Notwithstanding any other
provision of this Act--
``(i) the land use and control measures
adopted pursuant to paragraph (1) may not, for
purposes of such paragraph, be considered to be
inadequate or inconsistent with the
comprehensive criteria for land management and
use under section 1361 because such measures
provide that, in the case of any agricultural
structure that is located in an area having
special flood hazards, a variance from
compliance with the requirements to elevate or
floodproof such a structure and meeting the
requirements of subparagraph (B) may be
granted; and
``(ii) the Administrator may not suspend a
community from participation in the national
flood insurance program, or place such a
community on probation under such program,
because such land use and control measures
provide for such a variance.
This subparagraph shall not limit the ability of the
Administrator to take enforcement action against a
community that does not adopt adequate variance
criteria or establish proper enforcement mechanisms.
``(B) Variance; considerations.--The requirements of
this subparagraph with respect to a variance are as
follows:
``(i) The variance is granted by an official
from a duly constituted State or local zoning
authority, or other authorized public body
responsible for regulating land development or
occupancy in flood-prone areas.
``(ii) In the case of new construction, such
official has determined--
``(I) that neither floodproofing nor
elevation of the new structure to the
base flood elevation is practicable;
and
``(II) that the structure is not
located in--
``(aa) a designated
regulatory floodway;
``(bb) an area riverward of a
levee or other flood control
structure; or
``(cc) an area subject to
high velocity wave action or
seaward of flood control
structures.
``(iii) In the case of existing structures--
``(I) if such structure is
substantially damaged or in need of
substantial repairs or improvements,
such official has determined that
neither floodproofing nor elevation to
the base flood elevation is
practicable; and
``(II) if such structure is located
within a designated regulatory
floodway, such official has determined
that the repair or improvement does not
result in any increase in base flood
levels during the base flood discharge.
``(iv) Such official has determined that the
variance will not result in increased flood
heights, additional threats to public safety,
extraordinary public expense, create nuisances,
cause fraud on or victimization of the public,
or conflict with existing local laws or
ordinances.
``(v) Not more than one claim payment
exceeding $1,000 has been made for the
structure under flood insurance coverage under
this title within any period of 10 consecutive
years at any time prior to the granting of the
variance.
``(C) Definitions.--For purposes of this paragraph,
the following definitions shall apply:
``(i) Agricultural structure.--The term
`agricultural structure' has the meaning given
such term in paragraph (2)(D).
``(ii) Floodproofing.--The term
`floodproofing' means, with respect to a
structure, any combination of structural and
non-structural additions, changes, or
adjustments to the structure, including
attendant utilities and equipment, that reduce
or eliminate potential flood damage to real
estate or improved real property, water and
sanitary facilities, structures, or their
contents.''.
(b) Premium Rates.--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) Premium Rates for Certain Agricultural Structures With
Variances.--Notwithstanding any other provision of this Act, the
chargeable premium rate for coverage under this title for any structure
provided a variance pursuant to section 1315(a)(3) shall be the same as
the rate that otherwise would apply to such structure if the structure
had been dry floodproofed or a comparable actuarial rate based upon the
risk associated with structures within the applicable AL-E zone
established under section 1360(l).''.
SEC. 211. TECHNICAL MAPPING ADVISORY COUNCIL.
Paragraph (1) of section 100215(b) of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4101a(b)(1)) is amended--
(1) by redesignating subparagraphs (A) through (E) as
subparagraphs (B) through (F), respectively;
(2) by inserting before subparagraph (B), as so redesignated
by subparagraph (A) of this paragraph, the following new
subparagraph:
``(A) the Director of the United States Geological
Survey;''; and
(3) in subparagraph (F), as so redesignated by paragraph (1)
of this section--
(A) in the matter preceding clause (i), by striking
``16'' and inserting ``17'';
(B) in clause (xiii), by striking ``and'' at the end;
(C) in clause (xiv), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following new clause:
``(xv) a member of a recognized professional
real estate brokerage association.''.
TITLE III--MITIGATION
SEC. 301. INCREASED COST OF COMPLIANCE COVERAGE.
Section 1304(b) of the National Flood Insurance Act of 1968 (42
U.S.C. 4011(b)) is amended--
(1) in paragraph (4), by redesignating subparagraphs (A)
through (D) as clauses (i) through (iv), respectively;
(2) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively (and by adjusting
the margins accordingly);
(3) in subparagraph (C) as so redesignated, by striking the
period at the end and inserting a semicolon;
(4) by redesignating paragraph (4) as subparagraph (E) (and
by adjusting the margin accordingly);
(5) by inserting after subparagraph (C), as so redesignated,
the following:
``(D) properties identified by the Administrator as
priorities for mitigation activities before the
occurrence of damage to or loss of property which is
covered by flood insurance; and'';
(6) by inserting before ``The national flood insurance
program'' the following:;
``(1) In general.--''.
(7) by striking ``The Administrator'' and inserting the
following:
``(2) Premium.--The Administrator''; and
(8) by adding at the end the following new paragraphs:
``(3) Amount of coverage.--Each policy for flood insurance
coverage made available under this title shall provide coverage
under this subsection having an aggregate liability for any
single property of $60,000.
``(4) Eligible mitigation activities.--
``(A) In general.--Eligible mitigation methods the
cost of which is covered by coverage provided under
this subsection shall include--
``(i) alternative methods of mitigation
identified in the guidelines issued pursuant to
section 1361(d);
``(ii) pre-disaster mitigation projects for
eligible structures (as such term is defined in
subparagraph (C)); and
``(iii) costs associated with the purchase,
clearing, and stabilization of property that is
part of an acquisition or relocation program
that complies with subparagraph (B).
``(B) Acquisition and relocation project eligibility
and requirements.--
``(i) In general.--An acquisition or
relocation project shall be eligible to receive
assistance pursuant to subparagraph (A)(iii)
only if--
``(I) any property acquired,
accepted, or from which a structure
will be removed shall be dedicated and
maintained in perpetuity for a use that
is compatible with open space,
recreational, or wetlands management
practices; and
``(II) any new structure erected on
such property will be--
``(aa) a public facility that
is open on all sides and
functionally related to a
designated open space;
``(bb) a restroom; or
``(cc) a structure that the
Administrator approves in
writing before the commencement
of the construction of the
structure.
``(ii) Further assistance.--If an acquisition
or relocation project is assisted pursuant to
subparagraph (A)(iii)--
``(I) no person may apply to a
Federal entity for disaster assistance
with regard to any property acquired,
accepted, or from which a structure was
removed as part of such acquisition or
relocation project; and
``(II) no Federal entity may provide
disaster assistance for such property.
``(iii) Requirement to maintain flood
insurance coverage.--
``(I) In general.--Notwithstanding
any other provision of law, any
assisted structure (as such term is
defined in subclause (III)) shall, at
all times, maintain insurance against
flood damage, in accordance with
Federal law, for the life of such
structure.
``(II) Transfer of property.--
``(aa) Duty to notify.--If
any part of a property on which
an assisted structure is
located is transferred, the
transferor shall, not later
than the date on which such
transfer occurs, notify the
transferee in writing,
including in all documents
evidencing the transfer of
ownership of the property of
the requirements, that such
transferee is required to--
``(AA) obtain flood
insurance in accordance
with applicable Federal
law with respect to
such assisted
structure, if such
structure is not so
insured on the date on
which the structure is
transferred; and
``(BB) maintain flood
insurance in accordance
with applicable Federal
law with respect to
such structure.
``(bb) Failure to notify.--If
a transferor fails to make a
notification in accordance with
item (aa) and such assisted
structure is damaged by a flood
disaster, the transferor shall
pay the Federal Government an
amount equal to the amount of
any disaster relief provided by
the Federal government with
respect to such assisted
structure.
``(III) Assisted structure defined.--
For the purposes of this clause, the
term `assisted structure' means a
structure on property that is part of
an acquisition or relocation project
assisted pursuant to subparagraph (A)
that was, as part of such acquisition
or relocation project--
``(aa) altered;
``(bb) improved;
``(cc) replaced;
``(dd) repaired; or
``(ee) restored.
``(C) Eligible structure defined.--For purposes of
this paragraph, the term `eligible structure' means any
structure that--
``(i) was constructed in compliance with the
Flood Insurance Rate Map and local building and
zoning codes in effect at the date of
construction of the structure; and
``(ii) has not previously been altered,
improved, replaced, or repaired using
assistance provided under this subsection.
``(5) Treatment of coverage limits.--Any amount of coverage
for a property provided pursuant to this subsection shall not
be considered or counted for purposes of any limitation on
coverage applicable to such property under section 1306(b) (42
U.S.C. 4013(b)) and any claim on such coverage shall not be
considered a claim for purposes of section 1307(h) or
subsection (a)(3) or (h)(3) of section 1366.
``(6) Implementation.--Notwithstanding any other provision of
law, the Administrator may implement this subsection by
adopting one or more standard endorsements to the Standard
Flood Insurance Policy by publication of such standards in the
Federal Register, or by comparable means.''.
SEC. 302. MULTIPLE-LOSS PROPERTIES.
(a) Financial Assistance.--Section 1361 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4102) is amended by adding at the end
the following new subsection:
``(e) Multiple-loss Properties.--In making determinations regarding
financial assistance under the authorities of this Act, the
Administrator may consider the extent to which a community is working
to remedy problems with addressing multiple-loss properties.''.
(b) Definitions.--Subsection (a) of section 1370 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4121) is amended--
(1) by redesignating paragraphs (8) through (15) as
paragraphs (11) through (18), respectively; and
(2) by striking paragraph (7) and inserting the following new
paragraphs:
``(7) 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.
``(8) Repetitive-loss property.--The term `repetitive-loss
property' means a structure that has incurred flood-related
damage for which 2 or more separate claims payments of any
amount in excess of the loss-deductible for damage to the
covered structure have been made under flood insurance coverage
under this title.
``(9) Severe repetitive-loss property.--The term `severe
repetitive-loss property' means a structure that has incurred
flood-related damage for which--
``(A) 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
``(B) 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.
``(10) Extreme repetitive-loss property.--The term `extreme
repetitive-loss property' means a structure that has incurred
flood-related 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.''.
(c) Conforming Amendments.--The National Flood Insurance Act of 1968
is amended--
(1) in section 1304(b)(1)(A) (42 U.S.C. 4011(b)(1)(A)), as
amended by section 301 of this Act, by striking ``repetitive
loss structures'' and inserting ``repetitive-loss properties'';
(2) in section 1307 (42 U.S.C. 4014)--
(A) in subsection (a)(2)(B), by striking ``repetitive
loss property'' and inserting ``repetitive-loss
property'';
(B) in subsection (g)(2)(B), by striking clauses (i)
and (ii) and inserting the following:
``(i) an extreme repetitive-loss property; or
``(ii) a severe repetitive-loss property.'';
(C) by striking subsection (h); and
(D) by redesignating subsection (i), as added by the
preceding provisions of this Act, as subsection (h);
(3) in section 1315(a)(2)(A)(i) (42 U.S.C. 4022(a)(2)(A)(i)),
by striking ``repetitive loss structure'' and inserting
``repetitive-loss property''; and
(4) in section 1366 (42 U.S.C. 4104c)--
(A) in subsection (a)(2), by striking ``repetitive
loss structures'' and inserting ``repetitive-loss
properties'';
(B) in subsection (c)(2)(A)(ii), by striking
``repetitive loss structures'' and inserting
``multiple-loss properties'';
(C) in subsection (d)--
(i) in paragraph (1)--
(I) in the paragraph heading, by
striking ``repetitive loss structures''
and inserting ``repetitive-loss and
extreme repetitive loss properties'';
and
(II) in the matter preceding
subparagraph (A), by striking
``repetitive loss structures'' and
inserting ``repetitive-loss properties
or extreme repetitive-loss
properties''; and
(ii) in paragraph (2)--
(I) in the paragraph heading, by
striking ``Repetitive loss structures''
and inserting ``Repetitive-loss
properties''; and
(II) by striking ``repetitive loss
structures'' and inserting
``repetitive-loss properties''; and
(D) in subsection (h), by striking paragraphs (2) and
(3).
SEC. 303. PREMIUM RATES FOR CERTAIN MITIGATED PROPERTIES.
(a) Mitigation Strategies.--Paragraph (1) of section 1361(d) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4102(d)(1)) is
amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking ``and'' at the end; and
(3) by inserting after subparagraph (B) the following new
subparagraphs:
``(C) with respect to buildings in dense urban
environments, methods that can be deployed on a block
or neighborhood scale; and
``(D) elevation of mechanical or other critical
systems; and''.
(b) Mitigation Credit.--Subsection (k) of section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(k)) is amended--
(1) by striking ``shall take into account'' and inserting the
following: ``shall--
``(1) take into account'';
(2) in paragraph (1), as so designated by the amendment made
by paragraph (1) of this subsection, by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(2) offer a reduction of the risk premium rate charged to a
policyholder, as determined by the Administrator, if the
policyholder implements any mitigation method described in
paragraph (1).''.
SEC. 304. COVERAGE FOR COOPERATIVES.
(a) Equal Treatment With Condominiums.--Section 1306 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4013), as amended by the
preceding provisions of this Act is further amended by adding at the
end the following:
``(f) Cooperative Buildings.--Notwithstanding any other provision of
law, the Administrator shall make flood insurance coverage available to
any individual with a membership interest and occupancy agreement in a
cooperative housing project on the same terms as any owner of a
condominium.''.
(b) Payment of Claims.--Section 1312 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4019) is amended--
(1) in subsection (c)--
(A) by striking ``flood insurance to condominium
owners'' and inserting the following: ``flood
insurance--
``(1) to condominium owners''; and
(B) by striking the period at the end and inserting
``; or''; and
(C) by adding at the end the following:
``(2) to individuals with a membership interest and occupancy
agreement in a cooperative housing project who purchased such
flood insurance separate and apart from the flood insurance
purchased by the cooperative association in which such
individual is a member, based solely, or in any part, on the
flood insurance coverage of the cooperative association or
others on the overall property owned by the cooperative
association.''; and
(2) by adding at the end the following:
``(d) Definitions.--For purposes of this section and section 1306(e),
the terms `cooperative association' and `cooperative housing project'
shall have such meaning as the Secretary shall provide.''.
SEC. 305. VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE PILOT PROGRAM.
(a) Establishment.--The Administrator of the Federal Emergency
Management Agency (in this section referred to as the
``Administrator'') shall carry out a community-based flood insurance
pilot program to make available, for purchase by participating
communities, a single, community-wide flood insurance policy under the
National Flood Insurance Program that--
(1) covers all residential and non-residential properties
within the community; and
(2) satisfies, for all such properties within the community,
the mandatory purchase requirements under section 102 of the
Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a).
(b) Participation.--Participation by a community in the pilot program
under this section shall be at the sole discretion of the community.
(c) Requirements For Community-Wide Policies.--The Administrator
shall ensure that a community-wide flood insurance policy made
available under the pilot program under this section incorporates the
following requirements:
(1) A mapping requirement for properties covered by the
policy.
(2) A deductible.
(3) Certification or accreditation of mitigation
infrastructure when available and appropriate.
(4) A community audit.
(5) A method of preventing redundant claims payments by the
National Flood Insurance Program in the case of a claim by an
individual property owner who is covered by a community-wide
flood insurance policy and an individual policy obtained
through the Program.
(6) Coverage for damage arising from flooding that complies
with the standards under the National Flood Insurance Program
appropriate to the nature and type of property covered.
(d) Timing.--The Administrator shall establish the demonstration
program under this section not later than the expiration of the 180-day
period beginning on the date of the enactment of this Act and the
program shall terminate on September 30, 2022.
(e) Definition of Community.--For purposes of this section, the term
``community'' means any unit of local government, within the meaning
given such term under the laws of the applicable State.
SEC. 306. MITIGATION FUNDING.
For each of the first 5 fiscal years beginning after following the
date of the enactment of this Act, there is authorized to be
appropriated $200,000,000 to carry out the flood mitigation assistance
grant program under section 1366 of the National Flood Insurance Act of
1968 (42 U.S.C. 4104c).
SEC. 307. COMMUNITY RATING SYSTEM IMPROVEMENTS.
(a) 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''.
(b) Grants for Community Rating System Program Coordinators.--Section
1315 of the National Flood Insurance Act of 1968 (42 U.S.C. 4022) is
amended by adding at the end the following new subsection:
``(c) Grants for Community Rating System Program Coordinators.--
``(1) Authority.--The Administrator shall carry out a program
to make grants to consortia of States and communities for use
only for costs of employing or otherwise retaining an
individual or individuals to coordinate and carry out
responsibilities relating to participation in the community
rating system program under subsection (b) for States and
communities that are members of such consortia.
``(2) Eligibility.--The Administrator shall establish such
criteria as the Administrator considers appropriate for a
consortium of States and communities to be eligible for grants
under this subsection, which shall include requiring a
consortium to provide evidence to the Administrator that the
consortium has sufficient authority and administrative
capability to use grant amounts in accordance with this
subsection on behalf of its member jurisdictions.
``(3) Timing.--A consortium receiving a grant under this
section shall establish the position or positions described in
paragraph (1), and employ or otherwise retain an individual or
individuals to fill such position or positions, not later than
the date that all such grant amounts are expended.
``(4) Applications.--The Administrator shall provide for
consortia of States and communities to submit applications for
grants under this subsection, which shall include--
``(A) the evidence referred to in paragraph (2);
``(B) such assurances as the Administrator shall
require to ensure compliance with the requirement under
paragraph (3);
``(C) such assurances as the Administrator shall
require to ensure that the consortia will provide
funding sufficient to continue the position or
positions funded with the grant amounts, in the same
annual amount as under such grant funding, after such
grant funds are expended; and
``(D) such other information as the Administrator may
require.
``(5) Selection.--From among eligible consortia of States and
communities submitting applications pursuant to paragraph (3),
the Administrator shall select consortia to receive grants
under this subsection in accordance with such competitive
criteria for such section as the Administrator shall establish.
``(6) Definition of community.--For purposes of this section,
the term `community' has the meaning given such term in section
1366(h) (42 U.S.C. 4104c(h)), except that such term includes
counties and regional planning authorities that do not have
zoning and building code jurisdiction.
``(7) Authorization of appropriations.--There is authorized
to be appropriated for grants under this subsection--
``(A) $7,000,000 for the first fiscal year commencing
after the expiration of the 4-month period beginning on
the date of the enactment of this Act; and
``(B) $7,000,000 for each of the four consecutive
fiscal years thereafter.''.
SEC. 308. COMMUNITY ASSISTANCE PROGRAM FOR EFFECTIVE FLOODPLAIN
MANAGEMENT.
(a) In General.--Chapter I of the National Flood Insurance Act of
1968 (42 U.S.C. 4011 et seq.), as amended by the preceding provisions
of this Act, is further amended by adding at the end the following:
``SEC. 1327. COMMUNITY ASSISTANCE PROGRAM FOR EFFECTIVE FLOODPLAIN
MANAGEMENT.
``(a) In General.--The Administrator shall establish a community
assistance program under this section to increase the capacity and
capability of States, Indian tribes, and communities to effectively
manage flood risk and participate in the national flood insurance
program, including the community rating system program under section
1315(b), by providing financial and technical assistance to States,
tribes and communities.
``(b) Components.--The community assistance program under this
program shall include--
``(1) making community assistance grants under subsection (c)
to States;
``(2) conducting periodic assessments, not less often than
once every 5 years, of the technical assistance and training
needs of States, Indian tribes, and communities;
``(3) providing technical assistance and training to States,
Indian tribes, and communities in accordance with the needs
identified by such assessments;
``(4) conducting periodic reviews of State, Indian tribe, and
community floodplain management standards by the Administrator
to promote continuous improvement in building and maintaining
effective State floodplain management programs (as such term is
defined in subsection (d));
``(5) conducting periodic estimates of the losses avoided
nationally due to the adoption of qualifying floodplain
management standards by States, Indian tribes and communities;
``(6) in coordination with each State receiving a grant under
subsection (c), developing and executing a strategy to--
``(A) provide technical and financial assistance to
communities, including small and rural communities, and
Indian tribes within the State; and
``(B) encourage greater participation in the
community rating system program; and
``(7) establishing goals for States participating in the
program and incentives for exceeding such goals.
``(c) Community Assistance Grants to States.--
``(1) In general.--Under the program under this section the
Administrator may award grants to States, which shall be used
only--
``(A) to increase the capacity and capability of the
State and communities and Indian tribes in the State to
effectively manage flood risk and to fully participate
in the national flood insurance program, including the
community rating system program; and
``(B) for activities related to implementation,
administration, oversight, and enforcement of the
national flood insurance program at the State and local
and tribal levels.
``(2) Guidelines.--The Administrator shall establish
guidelines governing the use of grant funds under this
subsection, including setting forth activities eligible to be
funded with such amounts.
``(3) Eligibility.--To be eligible to receive a grant under
this subsection, a State shall--
``(A) demonstrate, to the satisfaction of the
Administrator, that the State has in effect qualifying
State floodplain management standards for the State;
``(B) agree to submit such reports, certifications,
and information to the Administrator as the
Administrator shall require, including those required
under paragraph (5); and
``(C) meet any additional eligibility requirements as
the Administrator may require.
``(4) Application; selection criteria.--The Administrator
shall provide for States to submit applications for grants
under this subsection, which shall include such information,
assurances, and certifications as the Administrator may
require, and may establish criteria for selection of qualifying
applications to be selected for grants under this subsection.
``(5) Ongoing review of floodplain management standards.--
Each State that is awarded funds under this section shall
provide periodic reports, certifications, and information
regarding the floodplain management standards of such State as
the Administrator may require for the duration of the use of
grant amounts.
``(d) Definitions.--For purposes of this section:
``(1) Indian tribe.--The term `Indian tribe' has the meaning
given such term in section 4 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).
``(2) Qualifying state floodplain management standards.--The
term `qualifying State floodplain management standards' means
the floodplain management standards of a State that--
``(A) are specifically authorized under State law and
do not conflict with or inhibit the implementation of
the National Flood Insurance Act of 1968;
``(B) designate an entity responsible for
coordinating the national flood insurance program in
the State;
``(C) identify State resources and programs to manage
floodplains and reduce flood risk;
``(D) address on a long-term basis--
``(i) integration of floodplain management
activities with other State functions and
activities;
``(ii) identification of flood hazards;
``(iii) management of natural floodplain
functions and resources;
``(iv) elimination of adverse impacts of
development on the floodplain;
``(v) flood mitigation and recovery
strategies for the State;
``(vi) strategies for informing communities
and citizens about flood risk and mitigation
options; and
``(vii) measures for evaluating the
effectiveness of State floodplain management
efforts;
``(E) include a long-term plan that will facilitate
the prioritization and provision of training and
technical assistance to communities and Indian tribes
in the State to increase local and tribal capacity and
capability for floodplain management, including the
capacity and capability to participate in the national
flood insurance program and the community rating system
program;
``(F) provide for oversight, administration and
enforcement of the national flood insurance program at
the State and community levels; and
``(G) meet such other requirements as the
Administrator may establish.
``(e) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated $20,000,000 for each of fiscal years 2019
through 2024 for the National Flood Insurance Fund for carrying
out this section. Any amounts appropriated pursuant to this
subsection shall remain available until expended.
``(2) Set-asides.--From any amounts made available for grants
under this section, the Administrator may reserve such amount
as the Administrator considers appropriate--
``(A) for community assistance grants under
subsection (c) to States; and
``(B) for additional assistance only for States
exceeding the goals established pursuant to subsection
(b)(8).''.
(b) Use of National Flood Insurance Fund Amounts.--Subsection (a) of
section 1310 of the National Flood Insurance Act of 1968 (42 U.S.C.
4017(a)) is amended--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(9) for carrying out the community assistance program for
effective floodplain management under section 1327.''.
TITLE IV--MODERNIZATION
SEC. 401. 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), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following:
``(o) 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 a flood
insurance policy, either offered through the national flood insurance
program or private market, that was used to satisfy the requirements
under section 102(a) of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(a)) to be a period of continuous coverage.''.
SEC. 402. OPTIONAL COVERAGE FOR UMBRELLA POLICIES.
Subsection (b) of section 1306 of the National Flood Insurance Act of
1968 (42 U.S.C. 4013(b)), is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(6) the Administrator may provide that, in the case of any
commercial property or other residential property, including
multifamily rental property and agricultural property, one
umbrella policy be made available to every insured upon renewal
and every applicant with multiple structures on the same
property, except that--
``(A) purchase of such coverage shall be at the
option of the insured; and
``(B) any such coverage shall be made available only
at chargeable rates that are not less than the
estimated premium rates for such coverage determined in
accordance with section 1307(a)(1).''.
SEC. 403. ANNUAL INDEPENDENT ACTUARIAL STUDY.
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. 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. The Administrator
shall submit a report annually to the Congress describing the results
of such study and assessing the financial status of the Program. The
report shall recommend adjustments to underwriting standards, program
participation, or premiums, if necessary, to ensure that the Program
remains financially sound. The report shall also include an evaluation
of the quality control procedures and accuracy of information utilized
in the process of underwriting National Flood Insurance Program
policies. Such evaluation shall include a review of the risk
characteristics of policies.''.
SEC. 404. SHARING OF AND ACCESS TO INFORMATION.
(a) In General.--Section 1313 of the National Flood Insurance Act of
1968 (42 U.S.C. 4020) is amended--
(1) by inserting after the section enumerator the following:
``(a) Availability to Public and State Agencies.--''; and
(2) by adding at the end the following new subsections:
``(b) Exchange of NFIP and Private Flood Insurance Policy and Claims
Information.--The Administrator may provide to each private insurer
that sells coverage that meets, at a minimum, the definition of private
flood insurance under section 102(b) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a(b)), current and historical property-
specific information that is available to the Administration on flood
insurance program coverage, flood damage assessments, and payment of
claims, but only if the following conditions are met:
``(1) Each private insurer receiving such data shall provide
to the Administrator current and historical property-specific
information, generated through the sale of the flood insurance
that meets such definition of private flood insurance, by the
private insurer on flood insurance coverage, flood damage
assessments, and payment of claims.
``(2) Such information obtained under paragraph shall be made
available as required by subsections (c) and (d).
``(c) Homeowner Access to NFIP and Private Policy and Claims
Information.--Upon request by the current owner of a property, the
Administrator shall provide to the owner any current and historical
information available to the Administrator, including information
obtained under subsection (b)(1), on insurance coverage, damage
assessments, and payment of claims concerning such property of the
owner. In addition, the Administrator shall provide information the
Administrator may have on whether the property owner may be required to
purchase flood insurance coverage due to previous receipt of federal
disaster assistance, including assistance provided by the Small
Business Administration, the Department of Housing and Urban
Development, the Federal Emergency Management Agency, or any other type
of assistance subject to the mandatory purchase requirement under
section 102 of the Flood Disaster Protection Act of 1973.
``(d) Homebuyer Access to Flood Insurance Information.--
Notwithstanding section 552a(b) of title 5, United States Code, not
later than 14 days after a request for such information by a buyer
under contract for purchase of a property, the Administrator shall
provide to the buyer the following information:
``(1) 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 this title.
``(2) Such other available information about the property as
determined by the Administrator to accurately and adequately
characterize the true flood risk to the property.
``(3) A notice to the recipient of the information that the
information provided may only be utilized by the recipient
alone and only for the purposes of homebuying.''.
(b) Effective Date.--Subsection (d) of section 1313 of the National
Flood Insurance Act of 1968, as added by the amendment made by
subsection (a)(2) 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.
SEC. 405. ELEVATION CERTIFICATES.
Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011
et seq.), as amended by the preceding provisions of this Act, is
further amended by adding at the end the following:
``SEC. 1328. ELEVATION CERTIFICATES.
``Surveyed elevation data and other information relating to a
building that is recorded on a National Flood Insurance Program
Elevation Certificate by an individual licensed to record that
information shall continue to be in effect, and the Elevation
Certificate shall not expire, until the date on which there is an
alteration in the building.''.
SEC. 406. LEVERAGING RISK TRANSFER OPPORTUNITIES FOR A SOUND FINANCIAL
FRAMEWORK.
(a) In General.--Subsection (e) of section 1345 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4081(e)) is amended--
(1) by striking ``(e) Risk Transfer.--The Administrator'' and
inserting the following:
``(e) Leveraging Risk Transfer Opportunities for a Sound Financial
Framework.--
``(1) Authority.--The Administrator''; and
(2) by adding at the end the following:
``(2) Leveraging risk transfer opportunities.--On an annual
basis, the Administrator shall evaluate ceding a portion of the
risk of the flood insurance program under this title to the
private reinsurance or capital markets, or any combination
thereof, if the Administrator determines--
``(A) the rates and terms are reasonable and
appropriate; and
``(B) doing so would further the development and
maintenance of a sound financial framework for the
National Flood Insurance Program.''.
(b) Effective Date.--The amendments made by subsection (a) shall
become effective upon the expiration of the 18-month period that begins
upon the date of the enactment of this Act.
SEC. 407. WRITE-YOUR-OWN ARRANGEMENTS.
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 subsections:
``(f) Authority to Terminate Write Your Own Arrangements.--The
Administrator may cancel any Write Your Own (as such term is defined in
section 100202(a) of the Biggert-Waters Flood Insurance Reform Act of
2012 (42 U.S.C. 4004)) arrangement in its entirety upon 30 days written
notice to the Write Your Own company involved by certified mail stating
one of the following reasons for such cancellation:
``(1) Fraud or misrepresentation by the company after the
inception of the arrangement.
``(2) Nonpayment to the Administrator of any amount due.
``(3) Material failure to comply with the requirements of the
arrangement or with the written standards, procedures, or
guidance issued by the Administrator relating to the National
Flood Insurance Program and applicable to the company.
``(g) Standardized Fee Authority.--The Administrator may establish
and implement a standardized fee schedule for all engineering services
provided in connection with flood insurance coverage provided under
this title by means of a Write Your Own arrangement.''.
SEC. 408. STUDY ON INCREASING PARTICIPATION.
(a) In General.--The Comptroller General of the United States shall
conduct a study that proposes to address, through programmatic and
regulatory changes, how to increase participation in flood insurance
coverage.
(b) Issues.--In conducting the study under subsection (a), the
Comptroller General shall consider the following:
(1) Expanding participation in flood insurance coverage,
beyond areas having special flood hazards, to areas of moderate
or minimal flood hazard risk.
(2) Automatically enrolling consumers in flood insurance
while providing consumers the opportunity to decline
enrollment.
(3) Bundling flood insurance coverage that diversifies risk
across all or multiple-peril forms.
(c) Determinations.--In conducting the study under subsection (a),
the Comptroller General shall determine the following:
(1) The percentage of properties with federally backed
mortgages located in an area having special flood hazards that
are covered by flood insurance that satisfies the requirement
under section 102(b) of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a(b)).
(2) The percentage of properties with federally backed
mortgages located in the 500-year floodplain that are covered
by flood insurance that would satisfy the requirement described
in paragraph (1) if that requirement applied to such
properties.
(d) Report.--Not later than 18 months after the date of enactment of
this Act, the Comptroller General of the United States shall submit a
report on the study conducted under subsection (a) to the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(e) Definitions.--For purposes of this section--
(1) the term ``500-year floodplain'' has the meaning given
the term in section 100202(a) of the Biggert-Waters Flood
Insurance Reform Act of 2012 (40 U.S.C. 4004(a));
(2) the terms ``Federal agency lender'', ``improved real
estate'', and ``regulated lending institution'' have the
meanings given such terms in section 3(a) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4003(a)); and
(3) the term ``property with a federally backed mortgage''
means improved real estate or a mobile home securing a loan
that was--
(A) made by a regulated lending institution or
Federal agency lender; or
(B) purchased by the Federal National Mortgage
Association or the Federal Home Loan Mortgage
Corporation.
Purpose and Summary
On June 10, 2019, Chairwoman Maxine Waters introduced H.R.
3167, the ``National Flood Insurance Program Reauthorization
Act of 2019,'' which reauthorizes the National Flood Insurance
Program (NFIP) for five years and would make several reforms to
address affordability, mapping, floodplain management and
mitigation, among other things. This bill would address
affordability of premiums by: 1) creating a 5-year
demonstration program for means-tested assistance to low-income
policyholders; 2) repealing surcharges; 3) enabling
policyholders to pay premiums in monthly installments; and 4)
creating a state revolving loan fund. H.R. 3167 would also make
several improvements to floodplain management and mitigation
by: 1) raising the amount of funds made available under the
Increased Cost of Compliance program and expanding the eligible
mitigation activities under ICC; 2) helping to target
mitigation funding for repeatedly flooded communities; 3)
granting credits for alternative forms of mitigation when
elevation is not feasible, 4) allowing NFIP coverage for
cooperatives and community-based policies; and 5) authorizing
floodplain management activities. Lastly, H.R. 3167 authorizes
funding for flood mapping, requires up-to-date technology and
more advanced and granular maps, improves the process for
policyholders and communities to appeal FEMA's mapping
decisions, and creates new flood map zones for levee-impacted
and agricultural areas.
Background and Need for Legislation
NFIP is the principal provider of primary flood insurance
in the U.S., covering over 5 million households and businesses
across the country for a total of over $1.3 trillion in flood
insurance coverage.\1\ As of the end of FY 2018, 22,324
communities participate in the NFIP, covering an estimated 93
percent of the U.S. population. According to FEMA, the NFIP
saves the nation an estimated $1.9 billion annually in flood
losses avoided because of the NFIP's building and floodplain
management regulations.
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\1\See Policy Statistics, National Flood Insurance Program, current
as of September 30, 2018, available at: http://bsa.nfipstat.fema.gov/
reports/1011.htm.
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The NFIP is largely self-funded through insurance premiums
collected from policy holders. Policyholders are also assessed
a number of surcharges and other fees. In FY 2018,
policyholders paid $382 million in surcharges, $188 million in
federal policy fees, and $497 million in reserve fund
assessments.\2\
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\2\Federal Insurance and Mitigation Administration report, The
Watermark, FY18 Volume 4.
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Since FY2017, the NFIP has been extended by 13 short-term
reauthorizations, causing uncertainty and instability in the
market, and is now set to expire on November 21, 2019. In the
event of a lapse, the NFIP would be unable to enter into new
flood insurance contracts and could stall mortgage processing
for homes that are statutorily required to have flood
insurance. According to the National Association of Realtors,
an estimated 40,000 home sales are not finalized or are
interrupted every month that the NFIP's authority lapses. H.R.
3167 would reauthorize the NFIP for five years.
Policyholder costs and affordability
In response to sharp rate increases in 2013, Congress
enacted the Homeowner Flood Insurance Affordability Act
(HFIAA), which mandated that FEMA develop an affordability
framework aimed at providing targeted assistance for
policyholders. In 2018, FEMA submitted the Framework finding,
among other things, that, ``generally, incomes are higher
outside the Special Flood Hazard Area (SFHA) than they are
inside the SFHA. The median household income for residential
policyholders is $82,000, although it is substantially lower in
the SFHA than outside the SFHA.''\3\ Further, FEMA found that
``the combination of higher premiums and lower incomes in the
SFHA creates affordability pressure on households.''\4\ In
response, H.R. 3167 would create a five-year demonstration
program that would provide means-tested assistance to
policyholders at or below 80 percent of area median income
(AMI) whose premiums exceed 2 percent of annual AMI. FEMA
estimates that the demonstration program would cost $47 million
and provide premium relief for 62,000 policyholders.
---------------------------------------------------------------------------
\3\An Affordability Framework for the National Flood Insurance
Program, Department of Homeland Security, April 2018, available at:
https://www.fema.gov/media-library-data/1524056945852-
e8db76c696cf3b7f6209e1adc4211af4/Affordability.pdf.
\4\Id.
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HFIAA also slowed the glide path for reaching actuarial
rates and caps premium increases in a rate class at 15%
annually. H.R. 3167 maintains these premium protections. HFIAA
also mandated surcharges on policyholders that are outside of
actuarial risk. Recently, in its report entitled, ``Options for
Reducing the Deficit: 2019 to 2028,'' CBO recommended
eliminating this surcharge. H.R. 3167 would repeal the
surcharges.
Other provisions in H.R. 3167 that assist policyholders
with payments include: 1) allowing for monthly installment
payments, which is similar to an amendment to H.R. 2874 from
the 115th Congress offered by David Scott; 2) raising the
minimum mandatory coverage amount from $5,000 to $25,000 to
assist small businesses with small-dollar mortgages; and 3)
allowing states to partner with FEMA to create revolving loan
funds to provide low-interest loans to communities for
mitigation investments, which is similar to H.R. 1610 sponsored
by Reps. Crist and Williams.
Mapping
H.R. 3167 reauthorizes the NFIP's flood mapping program for
five years, authorizes $500 million in flood mapping funding
each year for five years, expands mapping to all areas of the
United States, and calls for FEMA to make improvements to
mapping of future flood risk. H.R. 3167 also requires FEMA to
utilize up-to-date technology, improve coordination with USGS,
states, and communities, and create more advanced and granular
maps, which are provisions similar to H.R. 4905 from the 115th
Congress, sponsored by Reps. Gonzalez and Mooney. H.R. 3167
also creates a pilot program to enhance mapping of urban
flooding, make improvements to the appeals for communities and
policyholders, and allow for the adoption of parts of flood
maps while other parts are being finalized to bring certainty
to communities.
H.R. 3167 also creates two new flood map zones: 1) for
levee-impacted areas that provides partial protection even if
it does not meet the minimum standards of the NFIP and 2) for
agricultural structures in SFHAs. In many farm communities,
meeting the current requirement to raise new, expanded, or
repaired structures in the SFHA would require raising barns and
silos upwards of 10 feet, which is cost prohibitive or simply
inconsistent with continued agricultural land use. To address
these issues, H.R. 3167 also enables local jurisdictions to
provide variances from federal elevation and floodproofing
requirements where compliance with such standards is
impracticable, where a variance would not threaten public
safety, require extraordinary public expense, create nuisances,
or conflict with existing laws and ordinances, and where no
more than one claim over $1,000 has been paid in the preceding
10 years. This language is similar to H.R. 830 sponsored by
Reps. Garamendi and LaMalfa.
Mitigation
Increased Cost of Compliance (ICC) coverage is one of
several resources available to policyholders to assist with the
rebuilding process after a flood. Currently, eligible NFIP
policyholders can receive up to $30,000 in ICC funds to
rebuild, relocate, or elevate a structure. H.R. 3167 increases
the amount of (ICC) policyholder funds available by directing
FEMA to maximize ICC fee revenue, and expands the eligible uses
of such funds to include pre-disaster mitigation and buyouts.
H.R. 3167 also makes a number of improvements to address
properties that repeatedly flood. Although repetitive loss
properties make up just one percent of NFIP policies, they
account for 25-30 percent of claims.\5\ H.R. 3167 establishes
clear definitions for varying degrees of repetitive loss
properties and allows the Administrator to consider the extent
to which a community is working to remedy such repetitive loss
properties when allocating mitigation assistance. This will
help to better target mitigation assistance to the properties
and communities that are the highest risk.
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\5\See, PEW Charitable Trusts, ``Repeatedly Flooded Properties Cost
Billions'', available at https://www.pewtrusts.org/ /media/assets/2016/
10/repeatedly_flooded_properties_cost_billions. pdf?la=en.
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H.R. 3167 also provides mitigation credits for alternative
forms of mitigation that may be necessary in dense, urban
environments where elevation is not possible. H.R. 3167 would
also enable the NFIP to provide coverage for cooperatives,
similar to H.R. 2868 from the 115th Congress sponsored by Reps.
Zeldin and Maloney, and create a three-year community-based
flood insurance pilot program to make single, community-wide
policies available for purchase.
H.R. 3167 authorizes $200,000,000 each year for five years
for purposes of flood mitigation assistance, provides grants to
communities for community rating system coordinators, and
authorizes a technical assistance program for floodplain
management.
Private sector and NFIP modernization
In February of 2019, the federal financial regulators
promulgated a final rule implementing a provision of the
Biggert-Waters Act to allow for the acceptance of certain
private flood insurance policies to satisfy the mandatory
purchase requirement.\6\ However, the regulators did not
address the issue of ``continuous coverage.'' As a result,
policyholders that leave the NFIP to purchase a private policy
would lose their subsidies or grandfathered status with their
NFIP policy if they ever decided to return. H.R. 3167 ensures
that a policyholder does not lose their subsidies or
grandfathered status if they leave and return to the NFIP after
purchasing a private policy. This language is similar to H.R.
1666 sponsored by Reps. Castor and Luetkemeyer. H.R. 3167 also
ensures that an NFIP policyholder who would like to switch to a
private policy but has paid their annual premiums up front can
receive a prorated refund from the NFIP when they make the
switch.
---------------------------------------------------------------------------
\6\Under the Flood Disaster Protection Act of 1973 regulated
lending institutions are prohibited from making, increasing, extending
or renewing a loan secured by improved real estate or a mobile home
located or to be located in an SFHA in a community participating in the
NFIP unless the property securing the loan is covered by flood
insurance. Flood insurance may be provided through the NFIP or through
a private insurance carrier.
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H.R. 3167 requires the NFIP to modernize its policies for
multifamily and commercial structures by allowing for
``umbrella policies'' that provide coverage for multiple
structures in a single policy. Currently, umbrella policies are
not offered by the NFIP and private umbrella policies do not
satisfy the federal mandatory purchase requirement, which means
that many businesses are forced to purchase separate NFIP
policies for each individual structure, and if the maximum
coverage allowed under the NFIP is insufficient, they are then
forced to purchase a separate private policy that covers losses
beyond the NFIP's maximum coverage limits. H.R. 3167 would
provide relief for these business owners by allowing them to
obtain a single policy to cover their structures.
Section-by-Section Analysis
Sec. 1. Short title
National Flood Insurance Program Reauthorization Act of
2019.
Sec. 2. Congressional findings
This section includes several findings related to disaster
costs and impacts in the United States, the role of the
National Flood Insurance Program (NFIP), and the affordability
challenges that policyholders face.
TITLE I--REAUTHORIZATION AND AFFORDABILITY
Sec. 101. Program extension
This section amends sections 1309 and 1319 of the National
Flood Insurance Act of 1968 to reauthorize the NFIP for five
years through September 30, 2024 and allows for a retroactive
effective date in the event of a lapse.
Sec. 102. Demonstration program for policy affordability
This section creates a five-year demonstration program to
provide targeted financial assistance to low-income
policyholders. The assistance would be made available to
policyholders earning 80 percent or less of the area median
income, which will be determined by the FEMA Administrator in
consultation with the Secretary of Housing and Urban
Development. The discount will cover the chargeable premium
rate in excess of two percent of the annual area median income
for the area in which the property is located. However, all
policyholders will be provided a written statement detailing
the full actuarial premium rate for the coverage so that the
policyholder knows the full-risk rate. The section also
requires that the FEMA Administrator report to Congress on the
demonstration.
Sec. 103. Premium and fees relief for families and small businesses
This section repeals section 1308A of the National Flood
Insurance Act of 1968, ending surcharges currently assessed on
policyholders, which in FY 2018, would have saved policyholders
$380 million. The CBO previously recommended repealing these
surcharges in its report entitled, ``Options for Reducing the
Deficit: 2019 to 2028.'' Further, this section also amends
section 102(c) of the Flood Disaster Protection Act of 1973 to
raise the minimum loan amount that triggers the mandatory
purchase requirement from/$5,000 to $25,000.
Sec. 104. Monthly installment payment of premiums
This section amends sections 1307 and 1308(g) of the
National Flood Insurance Act of 1968 to include language
similar to an amendment to H.R. 2874 from the 115th Congress
offered by Rep. David Scott to authorize monthly payments
instead of the current annual payment for flood insurance
premiums.
Sec. 105. State revolving loan funds for flood mitigation
This section adds a new section 1326 to the National Flood
Insurance Act of 1968, which authorizes FEMA to enter into
agreements with eligible States to establish a flood mitigation
assistance revolving loan fund to decrease flood risk. States
can use the funding for a number of eligible activities such as
elevation or relocation of the home but cannot use the funds
for other activities such as new construction or to assist
high-income homeowners. This section is similar to H.R. 1610
sponsored, by Reps. Crist and Williams.
Sec. 106. Use of replacement cost value
This section further amends section 1307 of the National
Flood Insurance Act of 1968 by adding a new subsection (i),
which restates FEMA's existing authority to consider the
replacement cost value of the home in determining the
affordability of insurance premiums.
Sec. 107. Refund of premiums upon cancellation
This section amends section 1306 of the National Flood
Insurance Act of 1968 by adding a new subsection (e), which
ensures that if an NFIP policyholder decides to switch to a
private flood insurance, but they have already paid their NFIP
premiums for the entirety of the year up front, the
policyholder would receive a prorated refund of their NFIP
premiums for the remainder of the year.
TITLE II--MAPPING
Sec. 201. Reauthorization of appropriations for national flood mapping
program
This section amends subsection (f) of section 100216 of the
Biggert-Waters Flood Insurance Reform Act of 2012 to authorize
$500 million for each year over five years for flood mapping.
Sec. 202. National flood mapping program
This section further amends section 100216 of the Biggert-
Waters Flood Insurance Reform Act of 2012, including by adding
several new subsections at the end. The amendments made by this
section expand flood mapping to all areas of the United States.
The amendments made by this subsection also requires FEMA to
utilize updated mapping technology, such as LiDAR, and provides
for digital displays, and property specific mapping. The
amendments made by this subsection require FEMA to submit an
annual report to Congress on the progress achieved in the
mapping program under this section including recommendations to
reduce the cost and improve implementation. Lastly, the
amendments made by this subsection require that in updating and
maintaining maps, the FEMA Administrator shall ensure that maps
are adequate for identifying future flood risks. Parts of this
section are similar to H.R. 4905 from the 115th Congress,
sponsored by Representatives Gonzalez and Mooney.
Sec. 203. Flood mapping modernization and homeowner empowerment pilot
program
This section creates a pilot program to enhance mapping of
urban flooding and better assessing urban flood risk, including
authorizing funds for this pilot program. This section is
similar to H.R. 2462, sponsored by Reps. Quigley and Rooney.
Sec. 204. Mapping improvements and reach
This section further amends section 100216 of the Biggert-
Waters Flood Insurance Reform Act of 2012 to expand flood
mapping to all areas of the United States and calls for mapping
of future flood risk.
Sec. 205. Appeals regarding existing flood maps
This section amends section 1360 of the National Flood
Insurance Act of 1968 by adding a new subsection (k), which
provides a State, local government, or property owner, the
right to appeal a denial for a map update if the entity or
individual possesses knowledge or information that the flood
elevation or an aspect of the map is inaccurate, or factors
exist that mitigate the risk of flooding. The entity or
individual can further appeal an adverse decision to the
Scientific Resolution Panel, which shall recommend a non-
binding decision to the FEMA Administrator. In the case of a
successful or partially successful appeal, the Administrator is
required to provide a refund of excess premiums paid.
Sec. 206. Appeals and publication of projected special flood hazard
areas
This section amends section 1363 of the National Flood
Insurance Act of 1968 to grant homeowners 90 days after the
date of the second publication of a proposed flood insurance
rate map to appeal the determination and provides that if no
such appeal is received, that the proposed rate map is final.
Sec. 207. Communication and outreach regarding map changes
This section further amends section 100216 of the Biggert-
Waters Flood Insurance Reform Act of 2012 to make a technical
change to clarify that communities have a maximum of 30 days
after being notified of a new map or map update to consult with
the FEMA Administrator.
Sec. 208. Adoption of partial flood maps
This section amends section 1360(f) of the National Flood
Insurance Act of 1968 to allow for portions of flood insurance
rate maps for which no appeal has been submitted within the
allowed for 90-day period to become final even if other
portions are under appeal.
Sec. 209. New zone for levee-impacted areas
This section further amends section 1360 of the National
Flood Insurance Act of 1968 to add a new subsection (l), which
creates a new flood zone, known as the AL-E zone, that accounts
for levee-impacted areas on flood maps, and provide for flood
insurance rates in accordance with the protection afforded by
the levee.
Sec. 210. Agricultural structures in special flood hazard areas
This section amends sections 1308 and 1315(a) of the
National Flood Insurance Act of 1968 to grant local variances
for certain agricultural structures so that elevation or flood
proofing of such a structure is not required if elevation or
flood proofing would not be practicable and if it would not
result in increased flood heights or threats to public safety
and provided that not more than one claim payment exceeding
$1,000 has been made for the structure within a ten-year
period. This section is similar to H.R. 830, sponsored by Reps.
Garamendi and LaMalfa.
Sec. 211. Technical mapping advisory council
This section amends section 100215 of the Biggert-Waters
Flood Insurance Reform Act of 2012 to add members to the
Technical Mapping Advisory Council (TMAC) including a member of
a recognized professional real estate brokerage association.
TITLE III--MITIGATION
Sec. 301. Increased Cost of Compliance
This section amends section 1304(b) of the National Flood
Insurance Act of 1968 to authorize the FEMA Administrator to
supplement its existing Increased Cost of Compliance (ICC)
program by raising the maximum amount available from $30,000 to
$60,000. The amendments made by this section also expands the
eligible uses of ICC funds to include alternative methods of
mitigation, pre-disaster mitigation, and the costs of property
acquisition.
Sec. 302. Multiple-loss properties
This section amends section 1361 of the National Flood
Insurance Act of 1968 by adding a new subsection (e), which
grants the FEMA Administrator discretion to take into account
when making determinations regarding mitigation assistance the
extent to which communities are working to remedy problems with
addressing multiple loss properties. The section also amends
section 1370 of the Act to include definitions of multiple loss
properties which includes repetitive loss, severe repetitive
loss, and extreme repetitive loss. This section also makes
amendments to the National Flood Insurance Act of 1968 to
conform the Act to these modifications.
Sec. 303. Premium rates for certain mitigated properties
This section amends sections 1308 and 1361 of the National
Flood Insurance Act of 1968 to allow for premium credits for
alternative methods of mitigation that are more appropriate for
dense urban environments where elevation is not practicable.
This section is similar to H.R. 2868 from the 115th Congress
sponsored by Reps. Zeldin and Maloney.
Sec. 304. Coverage for cooperatives
This section amends sections 1306 and 1312 of the National
Flood Insurance Act of 1968 to require the FEMA Administrator
to make NFIP coverage available to co-op and condo owners. This
section is similar to H.R. 2868 from the 115th Congress,
sponsored by Reps. Zeldin and Maloney.
Sec. 305. Voluntary community-based flood insurance pilot program
This section authorizes the FEMA Administrator to create a
pilot program that makes available community-wide policies that
cover all residential and non-residential properties in the
community. The authority for the pilot program sunsets on
September 30, 2022.
Sec. 306. Mitigation funding
This section provides $200 million each year for five years
for the Flood Mitigation Assistance program.
Sec. 307. Community rating system improvements
This section amends section 1315 of the National Flood
Insurance Act of 1968 to make improvements to the Community
Rating System (CRS) by requiring that credits be issued to the
maximum number of communities practicable and by authorizing
grants to consortia of States and communities for the costs of
employing individuals to coordinate and carry out the
responsibilities of participation in the CRS program. This
section is similar to H.R. 3135 from the 115th Congress,
sponsored by Rep. Keating.
Sec. 308. Community assistance program for effective floodplain
management
This section amends the National Flood Insurance Act of
1968 to add a new section 1327, which authorizes, for the first
time, a community assistance program for floodplain management
by providing community assistance grants, conducing periodic
assessments of technical assistance and training needs of
States, Indian tribes, and communities, providing such
technical assistance and training, and periodically assess the
losses avoided nationally due to the adoption of qualifying
floodplain management standards. In addition, this section
requires States that receive grant funding to develop and
execute a strategy to provide technical and financial
assistance to communities, including small and rural
communities, and to encourage greater participation in the CRS
program. The new section 1327 also authorizes $20 million each
year for five years to carry out this program. This section
also makes certain conforming changes.
TITLE IV--MODERNIZATION
Sec. 401. Effect of private flood insurance coverage on continuous
coverage requirements
This section further amends section 1308 of the National
Flood Insurance Act of 1968 to allow NFIP policyholders who
leave the program to purchase a private policy to return to the
NFIP without penalty.
Sec. 402. Optional coverage for umbrella policies
This section further amends section 1306 of the National
Flood Insurance Act of 1968 to authorize the FEMA Administrator
to offer umbrella policies for commercial properties, including
multifamily and agricultural properties.
Sec. 403. Annual independent actuarial study
This section adds a new section 1349 to the National Flood
Insurance Act of 1968 to require an annual independent
actuarial study of the NFIP to analyze the financial status of
the NFIP. The Administrator is required to submit a report to
Congress describing the results of the study.
Sec. 404. Sharing of and access to claims history data
This section amends section 1313 of the National Flood
Insurance Act of 1968 to ensure that homeowners and homebuyers
can obtain property-specific information about prior flooding
from FEMA in order to make more informed decisions about
mitigation investments or home purchases.
Sec. 405. Elevation certificates
This section amends the National Flood Insurance Act of
1968 by adding a new section 1328, which codifies existing FEMA
guidance that provides that elevation certificates do not
expire until the date on which there is an alteration in the
building.
Sec. 406. Leveraging risk transfer opportunities
This section amends section 1345 of the National Flood
Insurance Act of 1968 to direct FEMA to evaluate ceding a
portion of risk to private reinsurance or capital markets on an
annual basis.
Sec. 407. Write-Your-Own arrangements
This section further amends section 1345 of the National
Flood Insurance Act of 1968 to add two new subsections, which
codify FEMA's existing authority to terminate WYO companies
that engage in fraud or otherwise fail to comply with FEMA's
requirements.
Sec. 408. Study on participation rates
This section requires the GAO to study and submit a report
to Congress on participation rates.
Hearings
For the purposes of section 103(i) of H. Res. 6 for the
116th Congress, the Committee on Financial Services held a
hearing to consider H.R. 3167 entitled ``Preparing for the
Storm: Reauthorization of the National Flood Insurance
Program'' on March 13, 2019. Testifying before the Committee
was Maria Cox Lamm, South Carolina Department of Natural
Resources, on behalf of the Association of State Flood Plain
Managers; Christopher Heidrick, Heidrick & Company Insurance
and Risk Management Services, LLC, on behalf of the Independent
Insurance Agents and Brokers of America; Velma Smith, Senior
Officer, The Pew Charitable Trusts; Mabel Guzman, Broker,
@properties, on behalf of the National Association of Realtors;
Collin O'Mara, President and CEO, National Wildlife Federation,
on behalf of the SmarterSafer Coalition; Raymond J. Lehmann,
Director of Finance, Insurance and Trade Policy, R Street
Institute. A number of members of the House of Representatives
also testified, including The Honorable Sean P. Duffy, Member
of Congress; The Honorable Garret Graves, Member of Congress;
The Honorable Blaine Luetkemeyer, Member of Congress; The
Honorable Frank Pallone, Member of Congress; The Honorable Bill
Pascrell, Member of Congress; and The Honorable Steve Scalise,
Member of Congress.
Committee Consideration
The Committee on Financial Services met in open session on
June 12, 2019, and ordered H.R. 3167 to be reported favorably
to the House with an amendment in the nature of a substitute by
a vote of 59 yeas and zero nays, a quorum being present.
Committee Votes and Roll Call Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
following roll call vote occurred during the Committee's
consideration of H.R. 3167:
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
House of Representatives, the goals of H.R. 3167 are to
reauthorize the NFIP and address affordability, mapping,
floodplain management and mitigation reforms, among other
things.
New Budget Authority and CBO Cost Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a) of the
Congressional Budget Act of 1974, and pursuant to clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 402 of the Congressional Budget Act
of 1974, the Committee has received the following estimate for
H.R. 3167 from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 4, 2019.
Hon. Maxine Waters,
Chairwoman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Madam Chairwoman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3167, the National
Flood Insurance Program Reauthorization Act of 2019.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jon Sperl.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
The bill would
Extend the authority of the National Flood
Insurance Program (NFIP) to operate through fiscal year
2024
Change premium amounts for some
policyholders
Authorize appropriations for several grant
programs related to mapping flood zones and mitigating
flood risks
Estimated budgetary effects would primarily stem from
Changing policyholders' premiums and
coverage
Changes in the number of people who choose
to purchase NFIP policies
Amounts appropriated for various NFIP grant
programs
Areas of significant uncertainty include
Estimating the number of affected
policyholders and properties
Estimating policyholders' responses to
changes in incentives to purchase or drop insurance
coverage
Estimating how many policyholders and
communities would appeal changes to flood maps and how
the results of those appeals would affect premiums.
Bill summary: H.R. 3167 would authorize the National Flood
Insurance Program, which is administered by the Federal
Emergency Management Agency (FEMA), to enter into and renew
flood insurance policies through fiscal year 2024. Under
current law, that authority expires on November 21, 2019.
The bill also would change the program to reduce the cost
of flood insurance for some policyholders. CBO estimates that
enacting H.R. 3167 would reduce some premiums and would affect,
in different ways, the number of property owners who purchase
insurance through the NFIP.
Finally, H.R. 3167 would authorize FEMA to perform other
activities, such as funding grants for flood mitigation,
improving the quality and use of flood zone maps, and changing
administrative processes.
Estimated Federal cost: The estimated budgetary effect of
H.R. 3167 is shown in Table 1. The costs of the legislation
fall within budget function 450 (community and regional
development).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3167
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-----------------------------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2020-2024 2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increases in Direct Spending
Estimated Budget Authority........................ 15 32 71 83 101 74 74 76 76 76 302 678
Estimated Outlays................................. 15 32 71 83 101 74 74 76 76 76 302 678
Decreases in Revenues
Estimated Revenues................................ 0 0 -1 -2 -2 -3 -4 -5 -5 -5 -5 -27
Net Increase in the Deficit From Changes in Direct Spending and Revenues
Effect on the Deficit............................. 15 32 72 85 103 77 78 81 81 81 307 705
Increases in Spending Subject to Appropriation
Estimated Authorization........................... 784 794 791 792 292 16 9 9 9 9 3,454 3,506
Estimated Outlays................................. 141 423 619 794 692 566 220 33 9 9 2,669 3,506
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sources: Congressional Budget Office; staff of the Joint Committee on Taxation.
Components may not sum to totals because of rounding.
Basis of estimate: CBO assumes that the legislation will be
enacted by the end of 2019, that changes in NFIP premiums would
take effect gradually for new and renewed policies beginning in
the spring of 2020, and that the authorized and necessary
amounts will be appropriated for each fiscal year.
Background: The NFIP was established to encourage property
owners to purchase flood insurance in the communities that have
adopted minimum guidelines for floodplain management and that
enforce building codes designed to mitigate flood damage.
Terms of Coverage. If a property is in a special flood
hazard area (SFHA, a location estimated to have at least a 1
percent chance of being flooded in any year) and is financed by
a federally regulated lending institution, a government-
sponsored enterprise for housing, or a federal lender, it must
be covered by flood insurance. That coverage mandate is known
as the mandatory purchase requirement (MPR). Property that does
not meet those criteria may be covered by an NFIP policy at the
owners' discretion.
Premiums. Property owners who buy coverage through the NFIP
pay annual premiums that are deposited into the National Flood
Insurance Fund and used to pay damage claims submitted by
policyholders. Owners of most covered properties--about 80
percent--are charged a premium based on FEMA's estimate of the
expected cost to insure those properties against damage that
the property will incur, in an average year, from flooding
(known as actuarial premiums).
Premiums for the remaining 20 percent of properties are
subsidized, and policyholders pay less than the expected
cost.\1\ Throughout the program's history, the Congress has
directed FEMA to set premiums below full-risk rates for
properties built before a community's flood insurance rate map
(FIRM) was completed, or before 1975, whichever is later. FEMA
estimates that, on average, premiums for those pre-FIRM
properties are set at about 55 percent to 60 percent of the
expected cost. Pre-FIRM properties constitute the majority of
subsidized properties. A few post-FIRM properties also are
eligible for discounted premiums. Some properties that have
been newly mapped into SFHAs are charged lower rates for one
year. In other cases, premiums are reduced for properties close
to levees or other structures that, although originally built
to mitigate flooding, are not functional.
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\1\For details about subsidized premiums, see Congressional Budget
Office, The National Flood Insurance Program: Financial Soundness and
Affordability (September 2017), www.cbo.gov/publication/53028, and The
National Flood Insurance Program: Factors Affecting Actuarial Soundness
(November 2009), www.cbo.gov/publication/41313.
---------------------------------------------------------------------------
FEMA is gradually increasing premiums for properties with
explicit subsidies, aiming to phase out those subsidies
eventually. For most policies, such as those for primary
residences, increases are capped at 18 percent per year. In
fiscal year 2018, FEMA collected about $3.5 billion in premiums
from roughly 5 million policyholders.
Additional Collections From Policyholders. All
policyholders pay two extra fees: an NFIP Reserve Fund
assessment set at 15 percent of the premium (or $115 per
policy, on average), and a surcharge of $25 for primary
residences or $250 for nonprimary residences and commercial
properties.\2\ In 2018, $880 million from those fees was
deposited into the NFIP Reserve Fund to pay claims.
---------------------------------------------------------------------------
\2\A primary residence is a single-family dwelling, condominium
unit, apartment, or unit within a cooperative building in which the
policyholder resides for more than half of the days in a calendar year,
or for less than half of the year if the policyholder has one residence
and does not lease it to another party. Nonprimary residences typically
are vacation homes or rental properties.
---------------------------------------------------------------------------
The NFIP's Ability to Pay Claims and Other Expenses. In
addition to receipts from premiums and fees, the National Flood
Insurance Fund and the NFIP Reserve Fund may be credited with
annual appropriations, interest earned on fund balances, and
amounts borrowed from the Treasury. For 2018, the Congress
appropriated $204 million to the National Flood Insurance Fund,
and the NFIP borrowed and spent $6.1 billion in 2018, mostly to
cover claims from Hurricanes Harvey, Irma, and Maria, which
made landfall in 2017.
In 2018, the NFIP also spent $400 million to secure private
reinsurance. If an individual flood generates losses above a
specified amount, the reinsurer pays a claim to the NFIP, which
reduces borrowing from the Treasury. In 2018, the program
recovered more than $1.0 billion in reinsurance claims to pay
NFIP policyholders' claims after Hurricane Harvey.
Most of the NFIP's expenses consist of claims resulting
from coverage in force. In 2018, the program spent $9.7 billion
on claims and $2.6 billion on other expenses--for administering
maps of flood zones, securing reinsurance, and paying
commissions to private insurance companies that administer NFIP
policies, for example. In 2018, the program's costs totaled 220
percent of premiums and other receipts.
Historically, actual expenses for claims (not including
other program expenses) have varied widely from year to year,
ranging from less than 10 percent to almost 900 percent of the
premiums collected. CBO estimates that annual expenses will, on
average, exceed annual income.
Direct spending: Section 101 would authorize FEMA to
continue selling and renewing policies through September 2024;
under current law that authority is set to expire on November
21, 2019. The cost of extending the program through 2024 would
total $2.1 billion but those costs are already included in
CBO's baseline projections of spending (consistent with the
rules governing baseline projections as specified in the
Balanced Budget and Emergency Deficit Control Act of 1985).
Thus, extending the NFIP's authority to continue operations
would have no effect on direct spending, relative to CBO's
baseline projections. CBO estimates that enacting the changes
in H.R. 3167 that are not related to extending the program
would, on net, increase direct spending by $678 million over
the 2020-2029 period as shown in Table 2. Over the next 10
years, the total cost of continuing to operate the NFIP under
the bill would be $4.0 billion--$3.3 billion assumed in CBO's
baseline and $0.7 billion stemming from changes in the bill.
TABLE 2.--ESTIMATED CHANGES IN DIRECT SPENDING AND REVENUES UNDER H.R. 3167
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-----------------------------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2020-2024 2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increases or Decreases (-) in Direct Spending
Increased Cost of Compliance:
Estimated Budget Authority.................... 15 30 30 30 31 31 31 31 31 31 136 291
Estimated Outlays............................. 15 30 30 30 31 31 31 31 31 31 136 291
New Zone for Areas with Levees:
Estimated Budget Authority.................... 0 0 3 11 24 42 43 44 45 45 38 257
Estimated Outlays............................. 0 0 3 11 24 42 43 44 45 45 38 257
Low-Income Pilot Program:
Estimated Budget Authority.................... 0 0 35 40 45 0 0 0 0 0 120 120
Estimated Outlays............................. 0 0 35 40 45 0 0 0 0 0 120 120
Adoption of Partial Flood Maps and Appeals of
Existing Maps:
Estimated Budget Authority.................... 0 2 3 3 3 3 3 4 4 4 11 29
Estimated Outlays............................. 0 2 3 3 3 3 3 4 4 4 11 29
Coverage for Cooperatives:
Estimated Budget Authority.................... * * -1 -2 -3 -3 -4 -4 -5 -5 -6 -27
Estimated Outlays............................. * * -1 -2 -3 -3 -4 -4 -5 -5 -6 -27
Small-Loan Exception to Purchase Requirement:
Estimated Budget Authority.................... * * 1 1 1 1 1 1 1 1 3 8
Estimated Outlays............................. * * 1 1 1 1 1 1 1 1 3 8
Total Changes:
Estimated Budget Authority................ 15 32 71 83 101 74 74 76 76 76 302 678
Estimated Outlays......................... 15 32 71 83 101 74 74 76 76 76 302 678
Decreases in Revenues
Estimated Revenues................................ 0 0 -1 -2 -2 -3 -4 -5 -5 -5 -5 -27
Net Increase in the Deficit From Changes in Direct Spending and Revenues
Total Changes..................................... 15 32 72 85 103 77 78 81 81 81 307 705
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sources: Congressional Budget Office; staff of the Joint Committee on Taxation.
* = between -$500,000 and $500,000.
National Flood Insurance Program Premiums. H.R. 3167 also
would affect direct spending by adjusting premiums or by
changing the number of policies purchased. Most of the changes
would decrease premiums; two would affect the number of NFIP
policies purchased by property owners. The estimates for the
following provisions are made under the assumption that all of
the policies proposed in H.R. 3167 would be enacted together.
Repeal Surcharges. Section 103 would repeal the annual $25
surcharge for coverage of a primary residence and the $250
surcharge for a nonprimary residence or commercial property.
Those amounts are deposited into the NFIP Reserve Fund, along
with the additional assessments for that fund--currently 15
percent of a policy's premium. In 2018, FEMA collected $383
million in surcharges and $497 million in assessments and thus
deposited $880 million into the reserve fund.
Under current law, FEMA must build up the fund's balances
by depositing specified amounts from surcharges and
assessments.\3\ H.R. 3167 would repeal the surcharge, but it
would not change that mandate to contribute the minimum amount
necessary each year. Based on information from FEMA officials,
CBO expects that to compensate for the elimination of the
surcharge under H.R. 3167, FEMA would administratively increase
the assessment from 15 percent to about 26 percent, on average.
As a result, CBO estimates, the cost of the provision would be
fully offset over the 2020-2029 period through collections of
larger assessments, but there would be no net change in total
receipts collected by the program.
---------------------------------------------------------------------------
\3\The Biggert-Waters Flood Insurance Reform Act of 2012 requires
FEMA to deposit those collections to build a financial reserve that
will meet the program's expected future obligations. Each year, the
agency deposits at least 7.5 percent of its reserve ratio--equal to 1
percent of the program's total potential loss exposure for all
outstanding policies in force in the prior fiscal year. Coverage in
force is currently about $1.3 trillion; the reserve ratio is
approximately $13 billion. FEMA must deposit at least 7.5 percent of
that amount each year until the balance reaches the reserve ratio. See
42 U.S.C. 4017a(d).
---------------------------------------------------------------------------
Increased Cost of Compliance. Section 301 would allow NFIP
policyholders to purchase coverage under the Increased Cost of
Compliance (ICC) program, which helps defray the cost of
mitigation projects that reduce a property's risk of flood
damage. Under current law, if a building covered by an NFIP
policy sustains a flood loss and is declared substantially
damaged or has been flooded repeatedly, ICC coverage provides
up to $30,000 to bring the building into compliance with state
or community floodplain management laws or ordinances. Spending
for the ICC program is offset by premiums collected from
policyholders. The annual ICC premium is currently capped at
$75.
Under H.R. 3167, policyholders could purchase additional
coverage up to $30,000, bringing the maximum coverage to
$60,000 for a single property. The bill also would expand the
list of permissible uses of ICC funds to include new methods of
mitigation, such as retrofitting property with flood-proof
materials or relocating vulnerable structures. CBO expects that
those changes would increase both the demand for ICC policies
and the amount of the average ICC claim. Using information
provided by FEMA, CBO estimates that the cost per ICC policy
would increase by 150 percent under H.R. 3167.
Because the bill would not authorize FEMA to increase ICC
premiums, CBO estimates that the provision would increase net
direct spending for that extra coverage. Using information from
FEMA, CBO estimates that enacting that provision would increase
direct spending by about $30 million annually and by $291
million over the 2020-2029 period.
New Zone for Areas with Levees. Section 209 would require
FEMA to establish and map new flood zones (termed AL-E zones)
for areas affected by the presence of levees. According to
FEMA, 625,000 policyholders now reside in zones with levees;
about 190,000 of those policies are in places where the levee
system does not meet minimum standards for accreditation.
Under the bill, communities with levee systems could apply
to FEMA to remap their areas into AL-E zones. If FEMA
determines that levees in those communities cannot be
accredited, policyholders would be eligible for reduced rates
associated with areas of moderate flood risk and would pay
those lower rates until FEMA sets actuarially sound rates that
account for the level of flood risk reduction provided by a
particular levee system. Accordingly, CBO expects that enacting
the provision initially would result in policyholders in AL-E
zones paying lower premiums than under current law. The
associated cost would increase over time, as more communities
apply for AL-E designation, fail to achieve accreditation, and
the policyholders thus begin to pay lower premiums.
Using information from FEMA, CBO expects that the agency's
levee review process would identify the first unaccredited
levees two years after enactment. Beginning in 2022, CBO
estimates, about 10,000 policies each year would become
eligible for subsidized rates, and each year's cohort of AL-E
applicants would pay those rates for an average of four years--
the period that CBO estimates that FEMA would need to set new
AL-E rates for each zone. That estimate is based on information
from the agency's Technical Mapping Advisory Council, which
reported in 2015 that the production of a new or revised flood
map typically takes three to five years. CBO estimates that the
cost of the subsidized premiums would compound each year
because more policyholders would become eligible and their
properties would otherwise have been subject to a 15 percent
annual premium increase. CBO estimates that enacting the
provision would increase direct spending by $257 million over
the 2020-2029 period.
Low-Income Pilot Program. Section 102 would direct FEMA to
implement a five-year demonstration project (ending on May 31,
2024) that would offer discounted premiums to policyholders in
residential households with income below 80 percent of the
median income in the area. Under the bill, FEMA would consult
with the Department of Housing and Urban Development to
determine eligibility and offer qualifying policyholders annual
premiums that did not exceed 2 percent of that area's median
income. CBO expects that FEMA would require two years to set up
the program so that the agency could establish data collection
agreements with other agencies and develop new information
systems to identify eligible households and verify incomes.
Using information from FEMA, CBO estimates that
approximately 60,000 current policyholders would meet the
income requirement and we assume that the premium for eligible
households would be set at a flat rate of 2 percent of an
area's median income. On that basis, CBO estimates that
enacting the provision would cost about $35 million in 2022 and
that those costs would increase in 2023 and 2024 as more
policyholders apply for and receive the discounted premium. The
pilot program would terminate in 2024. CBO estimates that
enacting the provision would reduce premiums and therefore
increase direct spending by $120 million over the 2020-2029
period.
Adoption of Partial Flood Maps and Appeals of Existing
Maps. Section 208 would allow local governments to delay the
finalization of portions of flood maps in areas where the
special flood hazard area expands and to expedite the
finalization of changes in areas where the SFHA decreases. If
communities delay adoption of flood maps with expanded SFHAs,
some property owners would not be subject to the mandatory
purchase requirement for flood insurance despite being in a
high-risk flood zone. Furthermore, premiums in those areas
would not be commensurate with actual flood risk, thus
increasing the number of subsidized policies insured by the
program. As a result, enacting section 208 would increase
direct spending.
The cost of enacting section 208 would depend on
administrative decisions in the thousands of communities that
participate in the NFIP and on the resulting differences in
risks and premiums that would be created for particular
portions of each community's flood map. Using information from
FEMA, CBO expects that relatively few communities--roughly 10
to 20 per year--would pursue partial appeals of flood maps and
that those appeals would delay finalization of map changes by
1.5 years, on average. CBO estimates that forgone premiums from
5,000 to 10,000 policies each year would increase direct
spending by $20 million over the 2020-2029 period. There is
significant uncertainty surrounding that estimate. Spending
could be higher or lower depending on how many communities
appeal map changes and on how long those subsidized premiums
are in place.
Section 205 of the legislation also would increase costs by
making the program's mapping update process more favorable to
those seeking a revision. The provision would allow a state or
local government, or a property owner, to appeal a denial for a
formal map update if that entity has information that the flood
elevation or some other aspect of the map is technically
inaccurate or if the appellant can prove that factors exist
that mitigate the risk of flooding. In the case of a successful
appeal, the provision would require FEMA to refund excess
premiums. Under current law, FEMA receives appeals for about 5
percent of all flood map studies before they take effect.
Refunds, in a limited set of cases, average about $3,100 per
policy. Using information from FEMA, CBO estimates that the
changes to the appeals process would result in several hundred
additional policyholders receiving refunds each year and would
increase direct spending by $9 million over the 2020-2029
period.
Changes That Would Affect the Number of NFIP Policies
Purchased. Two provisions of H.R. 3167 would directly affect
the number of policies purchased through the NFIP. All
policies--whether actuarial or subsidized--generate income for
the program in the form of surcharges and reserve fund
assessments. Thus, changes to the program that reduce the
number of policies purchased reduce income from those fees,
effectively increasing the program's reliance on existing
balances (or borrowing) to pay claims and therefore increasing
direct spending. Simultaneously, any reduction in the number of
subsidized policies would contribute to the actuarial soundness
of the program because the expected costs of those policies are
greater than the premiums paid for them.
Coverage for Cooperatives. Under current law, individual
owners of condominiums may purchase flood insurance under the
program but residents who own shares in housing cooperatives--
called co-ops--cannot. Instead, a cooperative can purchase a
master policy for a shared building. Section 304 would require
FEMA to make flood insurance available to co-op members at
terms that match those for condominium owners. CBO expects that
enacting the provision would increase the number of NFIP
policies.
Using information from the Census Bureau, CBO estimates
that the number of condominium units nationwide is more than
seven times the number of co-op units. The NFIP currently
insures about 86,000 individual condominium units. Assuming
that a similar percentage of co-op owners would purchase
insurance, CBO estimates that, under H.R. 3167, about 12,000
co-op owners would purchase NFIP policies over the next few
years, of which 20 percent would be subsidized. Using
information from FEMA, CBO estimates that, on average,
condominium owners pay more on premiums than the expected cost
of their policies. On that basis, CBO estimates the provision
would reduce direct spending by about $27 million over the
2020-2029 period.
Small-Loan Exception to Purchase Requirement. Under current
law, owners must carry flood insurance if their properties are
within an SFHA and financed by a federally regulated lending
institution, government-sponsored enterprise for housing, or
federal lender. Insurance coverage under those policies must at
least equal either the outstanding principal balance of the
loan (usually a home mortgage) or the maximum limit of coverage
made available for the particular type of property, whichever
is less. An exception is made for small loans: Flood insurance
is not required for properties with an outstanding principal
balance of $5,000 or less and a repayment term of one year or
less.
Section 103 would exempt property owners with an
outstanding principal balance of $25,000 or less from the MPR.
Using a database of NFIP policy information, CBO estimates that
roughly 63,000 policyholders have outstanding mortgages between
$5,000 and $25,000. CBO estimates that about 39,000 own
properties in SFHAs that are subject to the MPR.
CBO anticipates that some of those policyholders would drop
their coverage. In 2014, the Government Accountability Office
reported that many property owners underestimate both the risk
of a flood and the amount of damage a flood might cause.\4\ On
average, affected policyholders' premiums total about $170
annually to cover the remaining mortgage principal owed on
their properties. CBO is unaware of any data about the
propensity of policyholders to drop insurance when given the
opportunity. However, we expect that a significant number of
people would drop coverage if the requirement changed. In the
absence of more specific information, CBO assumes that under
the bill about half of that group of roughly 39,000
policyholders would drop their coverage within a few years.
---------------------------------------------------------------------------
\4\See Government Accountability Office, Overview of GAO's Past
Work on the National Flood Insurance Programs, GAO-14-297R (May 2014),
www.gao.gov/products/GAO-14-297R.
---------------------------------------------------------------------------
Using information from FEMA on premiums and assessments
paid by those policyholders, and on the expected cost to insure
them, CBO estimates that enacting section 103 would increase
net direct spending by $8 million over the 2020-2029 period.
The lost premiums and fees would be partially offset by a
reduction in claims; in particular, property owners with
subsidized policies who dropped coverage would reduce net
spending because their expected cost to the NFIP exceeds
premiums paid for the coverage. CBO's estimates of those costs
are uncertain and could be significantly greater or smaller,
depending on the number of dropped policies and whether those
policies are subsidized.
Revenues: Section 105 of the bill would authorize the
appropriation of $250 million over the 2020-2024 period for
FEMA to make grants to capitalize state revolving loan funds,
from which states would in turn make loans and grants to
finance flood mitigation projects. The staff of the Joint
Committee on Taxation (JCT) expects that states would use a
portion of those grants to leverage additional funds by issuing
tax-exempt bonds. JCT estimates that issuing additional tax-
exempt bonds would reduce federal revenues by $27 million over
the 2020-2029 period (see Table 2 on page 5).
Spending subject to appropriation: H.R. 3167 would
authorize appropriations totaling $3.5 billion over the 2020-
2024 period for FEMA to administer several grant programs, to
modernize the agency's process for producing flood maps, and to
make other changes to the program (see Table 3). CBO estimates
that implementing those provisions would increase spending by
$2.7 billion over the 2020-2024 period, assuming appropriation
of the authorized and necessary amounts.
TABLE 3.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 3167
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
--------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2020-2024
----------------------------------------------------------------------------------------------------------------
Flood Mapping and Floodplain
Management:
Authorization.............. 501 504 500 500 0 2,006
Estimated Outlays.......... 101 201 352 502 400 1,556
Flood Mitigation Funding:
Authorization.............. 270 277 277 277 277 1,378
Estimated Outlays.......... 27 209 253 277 277 1,043
Administrative and Other Costs:
Estimated Authorization.... 13 13 14 15 15 70
Estimated Outlays.......... 13 13 14 15 15 70
Total Changes:
Estimated Authorization 784 794 791 792 292 3,454
Estimated Outlays...... 141 423 619 794 692 2,669
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.
Flood Mapping and Modernization of Floodplain Management.
Section 201 would authorize the appropriation of $500 million a
year over the 2020-2023 period for FEMA's Risk MAP (Mapping,
Assessment and Planning) program. Based on historic patterns of
outlays for that program, CBO estimates that implementing those
provisions would increase spending on flood mapping and
floodplain management by $1.6 billion over the 2020-2024 period
and by $450 million after 2024. Section 203 would authorize the
appropriation of specific amounts for 2020 and 2021 that would
total $6 million for a new program to improve mapping of urban
flood risks.
Flood Mitigation Funding. Several provisions in H.R. 3167
would authorize appropriations for efforts to mitigate flood
damage. Section 306 would authorize the appropriation of $200
million a year over the 2020-2024 period for FEMA's Flood
Mitigation Assistance grant program. In fiscal year 2018, that
program received appropriations of $175 million to make grants
to state and tribal governments and to NFIP communities for
mitigation projects and planning.
Section 105 would authorize the appropriation of $50
million a year over the 2020-2024 period for FEMA to make
grants to capitalize new revolving funds administered by
states. From those revolving funds, states would make loans and
grants to local governments, homeowners, and other property
owners for flood mitigation projects, such as elevating or
relocating buildings.
Section 308 would authorize the appropriation of $20
million a year over the 2020-2024 period for FEMA to carry out
a floodplain management grant program. In addition, section 307
would authorize the appropriation of $7 million a year over the
2021-2024 period for the agency to make grants to facilitate
participation in the program's Community Rating System--a
voluntary program that offers communities incentives to exceed
the minimum requirements for floodplain management.
Based on historical patterns of outlays for those or
similar grant programs, CBO estimates that implementing those
provisions would increase spending by about $1.0 billion over
the 2020-2024 period and by about $300 million after 2024.
Administrative Changes and Other Costs. In addition to
amounts specifically authorized in H.R. 3167 for updates to the
mapping program and for mitigation grants, CBO estimates that
FEMA would require $70 million over the 2020-2024 period to
implement several other provisions in the bill.
Most of the estimated amounts would cover the costs of
hiring additional employees (assuming an average cost of
$150,000 per employee), making necessary investments in
information management systems, and providing for contract
support. Specifically, over the 2020-2024 period, CBO estimates
the following costs:
$30 million to implement the pilot program
for low-income households authorized by section 102 and
the new grant programs under sections 203 and 307;
$18 million under section 404 to create and
administer an electronic system for sharing property-
specific information with private flood insurance
companies and with policyholders;
$11 million under sections 205 and 206 to
respond to appeals of rate map changes and under
section 208 to oversee a new process to allow partial
adoption of flood maps;
$6 million to pay independent actuaries for
annual studies of program finances and for the
Government Accountability Office to study ways to
increase participation in the NFIP;
$3 million to develop guidance and processes
for administering umbrella insurance policies; and
$2 million for a pilot program that offers
communitywide flood insurance.
Uncertainty: CBO's cost estimate for H.R. 3167 reflects
uncertainty in several areas:
Estimating the number of policyholders and
properties that would be affected by changes in the
bill, including what flood zones and policy types apply
to each;
Estimating policyholders' responses to
incentives to purchase insurance if it becomes
available or drop insurance if it is no longer
required; and
Estimating the effect of changes in the bill
on the amount of premiums paid and on the amount of
risk that drives the cost of providing coverage.
For this estimate, there is substantial additional
uncertainty concerning the effects of sections 205, 206, and
208, which would amend administrative processes to allow
policyholders and NFIP communities to appeal changes to flood
maps. In particular, section 208 would allow interested parties
to delay finalizing map panels in areas where a special flood
hazard area expands and to speed up finalizing maps in areas
where an SFHA decreases.
The effect of those provisions would vary widely across the
country and would depend on the administrative decisions of
thousands of individual policyholders and their participating
communities. CBO's estimates of costs are therefore uncertain
and could be significantly different, depending on the extent
to which individual policyholders and communities appeal
decisions, how many policyholders receive premium reductions,
and on how long those gaps between premiums and risk are
sustained.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays and revenues that are
subject to those pay-as-you-go procedures are shown in Table 4.
TABLE 4.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 3167
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-----------------------------------------------------------------------------------------------------
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2020-2024 2020-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
Net Increase in the Deficit
Pay-As-You-Go Effect.............................. 15 32 72 85 103 77 78 81 81 81 307 705
Memorandum:
Changes in Outlays............................ 15 32 71 83 101 74 74 76 76 76 302 678
Changes in Revenues........................... 0 0 -1 -2 -2 -3 -4 -5 -5 -5 -5 -27
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increase in long-term deficits: CBO estimates that enacting
H.R. 3167 would not increase on-budget deficits by more than $5
billion in any of the four consecutive 10-year periods
beginning in 2030.
Mandates: None.
Estimate prepared by: Federal Costs: Jon Sperl; Federal
Revenues: Staff of the Joint Committee on Taxation; Mandates:
Rachel Austin.
Estimate reviewed by: Kim Cawley, Chief, Natural and
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 3167.
However, clause 3(d)(2)(B) of that rule provides that this
requirement does not apply when the committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act.
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act (as amended by Section 101(a)(2) of the
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee
adopts as its own the estimate of federal mandates regarding
H.R. 3167 as amended, prepared by the Director of the
Congressional Budget Office.
Advisory Committee
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation. Section 211 does make certain modifications to an
existing advisory Committee.
Application of Law to the Legislative Branch
Pursuant to section 102(b)(3) of the Congressional
Accountability Act, Pub. L. No. 104-1, H.R. 3167, as amended,
does not apply to terms and conditions of employment or to
access to public services or accommodations within the
legislative branch.
Earmark Statement
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 3167 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as described in clauses 9(e), 9(f), and 9(g) of rule
XXI.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of H.R. 3167 establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Changes to Existing Law
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, H.R. 3167 as reported, are shown as follows:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
NATIONAL FLOOD INSURANCE ACT OF 1968
* * * * * * *
TITLE XIII--NATIONAL FLOOD INSURANCE
* * * * * * *
CHAPTER I--THE NATIONAL FLOOD INSURANCE PROGRAM
basic authority
Sec. 1304. (a) To carry out the purposes of this title, the
Administrator of the Federal Emergency Management Agency is
authorized to establish and carry out a national flood
insurance program which will enable interested persons to
purchase insurance against loss resulting from physical damage
to or loss of real property or personal property related
thereto arising from any flood occurring in the United States.
(b) Additional Coverage for Compliance With Land Use and
Control Measures.--
(1) In general.--The national flood insurance program
established pursuant to subsection (a) shall enable the
purchase of insurance to cover the cost of implementing
measures that are consistent with land use and control
measures established by the community under section
1361 for--
[(1)] (A) properties that are [repetitive
loss structures] repetitive-loss properties;
[(2)] (B) properties that are substantially
damaged structures;
[(3)] (C) properties that have sustained
flood damage on multiple occasions, if the
Administrator determines that it is cost-
effective and in the best interests of the
National Flood Insurance Fund to require
compliance with the land use and control
measures[.];
(D) properties identified by the
Administrator as priorities for mitigation
activities before the occurrence of damage to
or loss of property which is covered by flood
insurance; and
[(4)] (E) properties for which an offer of
mitigation assistance is made under--
[(A)] (i) section 1366 (Flood
Mitigation Assistance Program);
[(B)] (ii) the Hazard Mitigation
Grant Program authorized under section
404 of the Robert T. Stafford Disaster
Assistance and Emergency Relief Act (42
U.S.C. 5170c);
[(C)] (iii) the Predisaster Hazard
Mitigation Program under section 203 of
the Robert T. Stafford Disaster
Assistance and Emergency Relief Act (42
U.S.C. 5133); and
[(D)] (iv) any programs authorized or
for which funds are appropriated to
address any unmet needs or for which
supplemental funds are made available.
[The Administrator]
(2) Premium._The Administrator shall impose a
surcharge on each insured of not more than $75 per
policy to provide cost of compliance coverage in
accordance with the provisions of this subsection.
(3) Amount of coverage.--Each policy for flood
insurance coverage made available under this title
shall provide coverage under this subsection having an
aggregate liability for any single property of $60,000.
(4) Eligible mitigation activities.--
(A) In general.--Eligible mitigation methods
the cost of which is covered by coverage
provided under this subsection shall include--
(i) alternative methods of mitigation
identified in the guidelines issued
pursuant to section 1361(d);
(ii) pre-disaster mitigation projects
for eligible structures (as such term
is defined in subparagraph (C)); and
(iii) costs associated with the
purchase, clearing, and stabilization
of property that is part of an
acquisition or relocation program that
complies with subparagraph (B).
(B) Acquisition and relocation project
eligibility and requirements.--
(i) In general.--An acquisition or
relocation project shall be eligible to
receive assistance pursuant to
subparagraph (A)(iii) only if--
(I) any property acquired,
accepted, or from which a
structure will be removed shall
be dedicated and maintained in
perpetuity for a use that is
compatible with open space,
recreational, or wetlands
management practices; and
(II) any new structure
erected on such property will
be--
(aa) a public
facility that is open
on all sides and
functionally related to
a designated open
space;
(bb) a restroom; or
(cc) a structure that
the Administrator
approves in writing
before the commencement
of the construction of
the structure.
(ii) Further assistance.--If an
acquisition or relocation project is
assisted pursuant to subparagraph
(A)(iii)--
(I) no person may apply to a
Federal entity for disaster
assistance with regard to any
property acquired, accepted, or
from which a structure was
removed as part of such
acquisition or relocation
project; and
(II) no Federal entity may
provide disaster assistance for
such property.
(iii) Requirement to maintain flood
insurance coverage.--
(I) In general.--
Notwithstanding any other
provision of law, any assisted
structure (as such term is
defined in subclause (III))
shall, at all times, maintain
insurance against flood damage,
in accordance with Federal law,
for the life of such structure.
(II) Transfer of property.--
(aa) Duty to
notify.--If any part of
a property on which an
assisted structure is
located is transferred,
the transferor shall,
not later than the date
on which such transfer
occurs, notify the
transferee in writing,
including in all
documents evidencing
the transfer of
ownership of the
property of the
requirements, that such
transferee is required
to--
(AA) obtain
flood insurance
in accordance
with applicable
Federal law
with respect to
such assisted
structure, if
such structure
is not so
insured on the
date on which
the structure
is transferred;
and
(BB) maintain
flood insurance
in accordance
with applicable
Federal law
with respect to
such structure.
(bb) Failure to
notify.--If a
transferor fails to
make a notification in
accordance with item
(aa) and such assisted
structure is damaged by
a flood disaster, the
transferor shall pay
the Federal Government
an amount equal to the
amount of any disaster
relief provided by the
Federal government with
respect to such
assisted structure.
(III) Assisted structure
defined.--For the purposes of
this clause, the term
``assisted structure'' means a
structure on property that is
part of an acquisition or
relocation project assisted
pursuant to subparagraph (A)
that was, as part of such
acquisition or relocation
project--
(aa) altered;
(bb) improved;
(cc) replaced;
(dd) repaired; or
(ee) restored.
(C) Eligible structure defined.--For purposes
of this paragraph, the term ``eligible
structure'' means any structure that--
(i) was constructed in compliance
with the Flood Insurance Rate Map and
local building and zoning codes in
effect at the date of construction of
the structure; and
(ii) has not previously been altered,
improved, replaced, or repaired using
assistance provided under this
subsection.
(5) Treatment of coverage limits.--Any amount of
coverage for a property provided pursuant to this
subsection shall not be considered or counted for
purposes of any limitation on coverage applicable to
such property under section 1306(b) (42 U.S.C. 4013(b))
and any claim on such coverage shall not be considered
a claim for purposes of section 1307(h) or subsection
(a)(3) or (h)(3) of section 1366.
(6) Implementation.--Notwithstanding any other
provision of law, the Administrator may implement this
subsection by adopting one or more standard
endorsements to the Standard Flood Insurance Policy by
publication of such standards in the Federal Register,
or by comparable means.
(c) In carrying out the flood insurance program the
Administrator shall, to the maxmium extent practicable,
encourage and arrange for--
(1) appropriate financial participation and risk
sharing in the program by insurance companies and other
insurers, and
(2) other appropriate participation on other than a
risk-sharing basis, by insurance companies and other
insurers, insurance agents and brokers, and insurance
adjustment organizations, in accordance with the
provisions of chapter II.
* * * * * * *
nature and limitation of insurance coverage
Sec. 1306. (a) The Administrator shall from time to time,
after consultation with the advisory committee authorized under
section 1318, appropriate representatives of the pool formed or
otherwise created under section 1331, and appropriate
representatives of the insurance authorities of the respective
States, provide by regulation for general terms and conditions
of insurability which shall be applicable to properties
eligible for flood insurance coverage under section 1305,
including--
(1) the types, classes, and locations of any such
properties which shall be eligible for flood insurance;
(2) the nature and limits of loss or damage in any
areas (or subdivisions thereof) which may be covered by
such insurance;
(3) the classification, limitation, and rejection of
any risks which may be advisable;
(4) appropriate minimum premiums;
(5) appropriate loss-deductibles; and
(6) any other terms and conditions relating to
insurance coverage or exclusion which may be necessary
to carry out the purposes of this title.
(b) In addition to any other terms and conditions under
subsection (a), such regulations shall provide that--
(1) any flood insurance coverage based on chargeable
premium rates under section 1308 which are less than
the estimated premium rates under section 1307(a)(1)
shall not exceed--
(A) in the case of residential properties--
(i) $35,000 aggregate liability for
any single-family dwelling, and
$100,000 for any residential structure
containing more than one dwelling unit,
(ii) $10,000 aggregate liability per
dwelling unit for any contents related
to such unit, and
(iii) in the States of Alaska and
Hawaii, and in the Virgin Islands and
Guam, the limits provided in clause (i)
of this sentence shall be: $50,000
aggregate liability for any single-
family dwelling, and $150,000 for any
residential structure containing more
than one dwelling unit;
(B) in the case of business properties which
are owned or leased and operated by small
business concerns, an aggregate liability with
respect to any single structure, including any
contents thereof related to premises of small
business occupants (as term is defined by the
Administrator), which shall be equal to (i)
$100,000 plus (ii) $100,000 multiplied by the
number of such occupants and shall be allocated
among such occupants (or among the occupant or
occupants and the owner) under regulations
prescribed by the Administrator; except that
the aggregate liability for the structure
itself may in no case exceed $100,000; and
(C) in the case of church properties which
may become eligible for flood insurance under
section 1305--
(i) $100,000 aggregate liability for
any single structure, and
(ii) $100,000 aggregate liability per
unit for any contents related to such
unit; and
(2) in the case of any residential building designed
for the occupancy of from 1 to 4 families for which the
risk premium rate is determined in accordance with the
provisions of section 1307(a)(1), additional flood
insurance in excess of the limits specified in clause
(i) of subparagraph (A) of paragraph (1) shall be made
available, with respect to any single such building, up
to an aggregate liability (including such limits
specified in paragraph (1)(A)(i)) of $250,000;
(3) in the case of any residential property for which
the risk premium rate is determined in accordance with
the provisions of section 1307(a)(1), additional flood
insurance in excess of the limits specified in clause
(ii) of subparagraph (A) of paragraph (1) shall be made
available to every insured upon renewal and every
applicant for insurance so as to enable any such
insured or applicant to receive coverage up to a total
amount (including such limits specified in paragraph
(1)(A)(ii)) of $100,000;
(4) in the case of any nonresidential building,
including a church, for which the risk premium rate is
determined in accordance with the provisions of section
1307(a)(1), additional flood insurance in excess of the
limits specified in subparagraphs (B) and (C) of
paragraph (1) shall be made available with respect to
any single such building, up to an aggregate liability
(including such limits specified in subparagraph (B) or
(C) of paragraph (1), as applicable) of $500,000, and
coverage shall be made available up to a total of
$500,000 aggregate liability for contents owned by the
building owner and $500,000 aggregate liability for
each unit within the building for contents owned by the
tenant; [and]
(5) any flood insurance coverage which may be made
available in excess of the limits specified in
subparagraph (A), (B), or (C) of paragraph (1), shall
be based only on chargeable premium rates under section
1308 which are not less than the estimated premium
rates under section 1307(a)(1), and the amount of such
excess coverage shall not in any case exceed an amount
equal to the applicable limit so specified (or
allocated) under paragraph (1)(C), (2), (3), or (4), as
applicable[.]; and
(6) the Administrator may provide that, in the case
of any commercial property or other residential
property, including multifamily rental property and
agricultural property, one umbrella policy be made
available to every insured upon renewal and every
applicant with multiple structures on the same
property, except that--
(A) purchase of such coverage shall be at the
option of the insured; and
(B) any such coverage shall be made available
only at chargeable rates that are not less than
the estimated premium rates for such coverage
determined in accordance with section
1307(a)(1).
(c) Effective Date of Policies.--
(1) Waiting period.--Except as provided in paragraph
(2), coverage under a new contract for flood insurance
coverage under this title entered into after the date
of enactment of the Riegle Community Development and
Regulatory Improvement Act of 1994, and any
modification to coverage under an existing flood
insurance contract made after such date, shall become
effective upon the expiration of the 30-day period
beginning on the date that all obligations for such
coverage (including completion of the application and
payment of any initial premiums owed) are
satisfactorily completed.
(2) Exception.--The provisions of paragraph (1) shall
not apply to--
(A) the initial purchase of flood insurance
coverage under this title when the purchase of
insurance is in connection with the making,
increasing, extension, or renewal of a loan;
(B) the initial purchase of flood insurance
coverage pursuant to a revision or updating of
floodplain areas or flood-risk zones under
section 1360(f), if such purchase occurs during
the 1-year period beginning upon publication of
notice of the revision or updating under
section 1360(h); or
(C) the initial purchase of flood insurance
coverage for private property if--
(i) the Administrator determines that
the property is affected by flooding on
Federal land that is a result of, or is
exacerbated by, post-wildfire
conditions, after consultation with an
authorized employee of the Federal
agency that has jurisdiction of the
land on which the wildfire that caused
the post-wildfire conditions occurred;
and
(ii) the flood insurance coverage was
purchased not later than 60 days after
the fire containment date, as
determined by the appropriate Federal
employee, relating to the wildfire that
caused the post-wildfire conditions
described in clause (i).
(d) Optional High-Deductible Policies for Residential
Properties.--
(1) Availability.--In the case of residential
properties, the Administrator shall make flood
insurance coverage available, at the option of the
insured, that provides for a loss-deductible for damage
to the covered property in various amounts, up to and
including $10,000.
(2) Disclosure.--
(A) Form.--The Administrator shall provide
the information described in subparagraph (B)
clearly and conspicuously on the application
form for flood insurance coverage or on a
separate form, segregated from all unrelated
information and other required disclosures.
(B) Information.--The information described
in this subparagraph is--
(i) information sufficient to inform
the applicant of the availability of
the coverage option required by
paragraph (1) to applicants for flood
insurance coverage; and
(ii) a statement explaining the
effect of a loss-deductible and that,
in the event of an insured loss, the
insured is responsible out-of-pocket
for losses to the extent of the
deductible selected.
(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.
(f) Cooperative Buildings.--Notwithstanding any other
provision of law, the Administrator shall make flood insurance
coverage available to any individual with a membership interest
and occupancy agreement in a cooperative housing project on the
same terms as any owner of a condominium.
estimates of premium rates
Sec. 1307. (a) The Administrator is authorized to undertake
and carry out such studies and investigations and receive or
exchange such information as may be necessary to estimate, and
shall from time to time estimate, on an area, subdivision, or
other appropriate basis--
(1) the risk premium rates for flood insurance
which--
(A) based on consideration of--
(i) the risk involved and accepted
actuarial principles; and
(ii) the flood mitigation activities
that an owner or lessee has undertaken
on a property, including differences in
the risk involved due to land use
measures, floodproofing, flood
forecasting, and similar measures, and
(B) including--
(i) the applicable operating costs
and allowances set forth in the
schedules prescribed under section 1311
and reflected in such rates,
(ii) the costs associated with the
monthly collection of premiums provided
for in section 1308(g) (42 U.S.C.
4015(g)), but only if such costs exceed
the operating costs and allowances set
forth in clause (i) of this
subparagraph, and any administrative
expenses (or portion of such expenses)
of carrying out the flood insurance
program which, in his discretion,
should properly be reflected in such
rates,
(iii) any remaining administrative
expenses incurred in carrying out the
flood insurance and floodplain
management programs (including the
costs of mapping activities under
section 1360) not included under clause
(ii), which shall be recovered by a fee
charged to policyholders and such fee
shall not be subject to any agents'
commissions, company expense
allowances, or State or local premium
taxes, and
(iv) all costs, as prescribed by
principles and standards of practice in
ratemaking adopted by the American
Academy of Actuaries and the Casualty
Actuarial Society, including--
(I) an estimate of the
expected value of future costs,
(II) all costs associated
with the transfer of risk, and
(III) the costs associated
with an individual risk
transfer with respect to risk
classes, as defined by the
Administrator,
would be required in order to make such insurance
available on an actuarial basis for any types and
classes of properties for which insurance coverage is
available under section 1305(a) (or is recommended to
the Congress under section 1305(b));
(2) the rates, if less than the rates estimated under
paragraph (1), which would be reasonable, would
encourage prospective insureds to purchase flood
insurance, and would be consistent with the purposes of
this title, and which, together with a fee charged to
policyholders that shall not be not subject to any
agents' commission, company expenses allowances, or
State or local premium taxes, shall include any
administrative expenses incurred in carrying out the
flood insurance and floodplain management programs
(including the costs of mapping activities under
section 1360), except that the Administrator shall not
estimate rates under this paragraph for--
(A) any residential property which is not the
primary residence of an individual;
(B) any severe [repetitive loss property]
repetitive-loss property;
(C) any property that has incurred flood-
related damage in which the cumulative amounts
of payments under this title equaled or
exceeded the fair market value of such
property;
(D) any business property; or
(E) any property which on or after the date
of enactment of the Biggert-Waters Flood
Insurance Reform Act of 2012 has experienced or
sustained--
(i) substantial damage exceeding 50
percent of the fair market value of
such property; or
(ii) substantial improvement
exceeding 50 percent of the fair market
value of such property; and
(3) the extent, if any, to which federally assisted
or other flood protection measures initiated after the
date of the enactment of this title affect such rates.
(b) In carrying out subsection (a), the Administrator shall,
to the maximum extent feasible and on a reimbursable basis,
utilize the services of the Department of the Army, the
Department of the Interior, The Department of Agriculture, the
Department of Commerce, and the Tennessee Valley Authority,
and, as appropriate, other Federal departments or agencies, and
for such purposes may enter into agreements or other
appropriate arrangements with any persons.
(c) The Administrator shall give priority to conducting
studies and investigations and making estimates under this
section in those States or areas (or subdivisions thereof)
which he has determined have evidenced a positive interest in
securing flood insurance coverage under the flood insurance
program.
(d) Notwithstanding any other provision of law, any structure
existing on the date of enactment of the Flood Disaster
Protection Act of 1973 and located within Avoyelles,
Evangeline, Rapides, or Saint Landry Parish in the State of
Louisiana, which the Administrator determines is subject to
additional flood hazards as a result of the construction or
operation of the Atchafalaya Basin Levee System, shall be
eligible for flood insurance under this title (if and to the
extent it is eligible for such insurance under the other
provisions of this title) at premium rates that shall not
exceed those which would be applicable if such additional
hazards did not exist.
(e) Notwithstanding any other provision of law, any community
that has made adequate progress, acceptable to the
Administrator, on the construction or reconstruction of a flood
protection system which will afford flood protection for the
one-hundred-year frequency flood as determined by the
Administrator, shall be eligible for flood insurance under this
title (if and to the extent it is eligible for such insurance
under the other provisions of this title) at premium rates not
exceeding those which would be applicable under this section if
such flood protection system had been completed. The
Administrator shall find that adequate progress on the
construction or reconstruction of a flood protection system,
based on the present value of the completed flood protection
system, has been made only if: (1) 100 percent of the cost of
the system has been authorized; (2) at least 60 percent of the
cost of the system has been appropriated; (3) at least 50
percent of the cost of the system has been expended; and (4)
the system is at least 50 percent completed.Notwithstanding any
other provision of law, in determining whether a community has
made adequate progress on the construction, reconstruction, or
improvement of a flood protection system, the Administrator
shall consider all sources of funding, including Federal,
State, and local funds.
(f) Notwithstanding any other provision of law, this
subsection shall apply to riverine and coastal levees that are
located in a community which has been determined by the
Administrator of the Federal Emergency Management Agency to be
in the process of restoring flood protection afforded by a
flood protection system that had been previously accredited on
a Flood Insurance Rate Map as providing 100-year frequency
flood protection but no longer does so, and shall apply without
regard to the level of Federal funding of or participation in
the construction, reconstruction, or improvement of the flood
protection system. Except as provided in this subsection, in
such a community, flood insurance shall be made available to
those properties impacted by the disaccreditation of the flood
protection system at premium rates that do not exceed those
which would be applicable to any property located in an area of
special flood hazard, the construction of which was started
prior to the effective date of the initial Flood Insurance Rate
Map published by the Administrator for the community in which
such property is located. A revised Flood Insurance Rate Map
shall be prepared for the community to delineate as Zone AR the
areas of special flood hazard that result from the
disaccreditation of the flood protection system. A community
will be considered to be in the process of restoration if--
(1) the flood protection system has been deemed
restorable by a Federal agency in consultation with the
local project sponsor;
(2) a minimum level of flood protection is still
provided to the community by the disaccredited system;
and
(3) restoration of the flood protection system is
scheduled to occur within a designated time period and
in accordance with a progress plan negotiated between
the community and the Federal Emergency Management
Agency.
Communities that the Administrator of the Federal Emergency
Management Agency determines to meet the criteria set forth in
paragraphs (1) and (2) as of January 1, 1992, shall not be
subject to revised Flood Insurance Rate Maps that contravene
the intent of this subsection. Such communities shall remain
eligible for C zone rates for properties located in zone AR for
any policy written prior to promulgation of final regulations
for this section. Floodplain management criteria for such
communities shall not require the elevation of improvements to
existing structures and shall not exceed 3 feet above existing
grade for new construction, provided the base flood elevation
based on the disaccredited flood control system does not exceed
five feet above existing grade, or the remaining new
construction in such communities is limited to infill sites,
rehabilitation of existing structures, or redevelopment of
previously developed areas.
The Administrator of the Federal Emergency Management Agency
shall develop and promulgate regulations to implement this
subsection, including minimum floodplain management criteria,
within 24 months after the date of enactment of this
subsection.
(g) No Extension of Subsidy to New Policies or Lapsed
Policies.--The Administrator shall not provide flood insurance
to prospective insureds at rates less than those estimated
under subsection (a)(1), as required by paragraph (2) of that
subsection, for--
(1) any policy under the flood insurance program that
has lapsed in coverage,, unless the decision of the
policy holder to permit a lapse in flood insurance
coverage was as a result of the property covered by the
policy no longer being required to retain such
coverage; or
(2) any prospective insured who refuses to accept any
offer for mitigation assistance by the Administrator
(including an offer to relocate), including an offer of
mitigation assistance--
(A) following a major disaster, as defined in
section 102 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C.
5122); or
(B) in connection with--
[(i) a repetitive loss property; or
[(ii) a severe repetitive loss
property.]
(i) an extreme repetitive-loss
property; or
(ii) a severe repetitive-loss
property.
[(h) Definition.--In this section, the term ``severe
repetitive loss property'' has the following meaning:
[(1) Single-family properties.--In the case of a
property consisting of 1 to 4 residences, such term
means a property that--
[(A) is covered under a contract for flood
insurance made available under this title; and
[(B) has incurred flood-related damage--
[(i) for which 4 or more separate
claims payments have been made under
flood insurance coverage under this
chapter, with the amount of each such
claim exceeding $5,000, and with the
cumulative amount of such claims
payments exceeding $20,000; or
[(ii) for which at least 2 separate
claims payments have been made under
such coverage, with the cumulative
amount of such claims exceeding the
value of the property.
[(2) Multifamily properties.--In the case of a
property consisting of 5 or more residences, such term
shall have such meaning as the Director shall by
regulation provide.]
(h) Use of Replacement Cost Value.--In determining
affordability for insurance provided under this title, the
Administrator may consider, where appropriate, the impact of
the inclusion of the replacement cost or other settlement basis
of the structure.
establishment of chargeable premium rates
Sec. 1308. (a) On the basis of estimates made under section
1307 and such other information as may be necessary, the
Administrator shall from time to time prescribe, after
providing notice--
(1) chargeable premium rates for any types and
classes of properties for which insurance coverage
shall be available under section 1305 (at less than the
estimated risk premium rates under section 1307(a)(1),
where necessary), and
(2) the terms and conditions under which, and the
areas (including subdivisions thereof) within which
such rates shall apply.
(b) Such rates shall, insofar as practicable, be--
(1) based on a consideration of the respective risks
involved, including differences in risks due to land
use measures, flood-proofing, flood forecasting, and
similar measures;
(2) adequate, on the basis of accepted actuarial
principles, to provide reserves for anticipated losses,
or if less than such amount consistent with the
objective of making flood insurance available where
necessary at reasonable rates so as to encourage
prospective insureds to purchase such insurance and
with the purposes of this title;
(3) adequate, together with the fee under paragraph
(1)(B)(iii) or (2) of section 1307(a), to provide for
any administrative expenses of the flood insurance and
floodplain management programs (including the costs of
mapping activities under section 1360);
(4) stated so as to reflect the basis for such rates,
including the differences (if any) between the
estimated risk premium rates under section 1307(a)(1)
and the estimated rates under section 1307(a)(2); and
(5) adequate, on the basis of accepted actuarial
principles, to cover the average historical loss year
obligations incurred by the National Flood Insurance
Fund.
(c) Actuarial Rate Properties.--Subject only to the
limitations provided under paragraphs (1) and (2), the
chargeable rate shall not be less than the applicable estimated
risk premium rate for such area (or subdivision thereof) under
section 1307(a)(1) with respect to the following properties:
(1) Post-firm properties.--Any property the
construction or substantial improvement of which the
Administrator determines has been started after
December 31, 1974, or started after the effective date
of the initial rate map published by the Administrator
under paragraph (2) of section 1360 for the area in
which such property is located, whichever is later,
except that the chargeable rate for properties under
this paragraph shall be subject to the limitation under
subsection (e).
(2) Certain leased coastal and river properties.--Any
property leased from the Federal Government (including
residential and nonresidential properties) that the
Administrator determines is located on the river-facing
side of any dike, levee, or other riverine flood
control structure, or seaward of any seawall or other
coastal flood control structure.
(d) With respect to any chargeable premium rate prescribed
under this section, a sum equal to the portion of the rate that
covers any administrative expenses of carrying out the flood
insurance and floodplain management programs which have been
estimated under paragraphs (1)(B)(ii) and (1)(B)(iii) of
section 1307(a) or paragraph (2) of such section (including the
fees under such paragraphs), shall be paid to the
Administrator. The Administrator shall deposit the sum in the
National Flood Insurance Fund established under section 1310.
(e) Annual Limitation on Premium Increases.--Except with
respect to properties described under paragraph (2) of
subsection (c), and notwithstanding any other provision of this
title--
(1) the chargeable risk premium rate for flood
insurance under this title for any property may not be
increased by more than 18 percent each year, except--
(A) as provided in paragraph (4);
(B) in the case of property identified under
section 1307(g); or
(C) in the case of a property that--
(i) is located in a community that
has experienced a rating downgrade
under the community rating system
program carried out under section
1315(b);
(ii) is covered by a policy with
respect to which the policyholder has--
(I) decreased the amount of
the deductible; or
(II) increased the amount of
coverage; or
(iii) was misrated;
(2) the chargeable risk premium rates for flood
insurance under this title for any properties initially
rated under section 1307(a)(2) within any single risk
classification, excluding properties for which the
chargeable risk premium rate is not less than the
applicable estimated risk premium rate under section
1307(a)(1), shall be increased by an amount that
results in an average of such rate increases for
properties within the risk classification during any
12-month period of not less than 5 percent of the
average of the risk premium rates for such properties
within the risk classification upon the commencement of
such 12-month period;
(3) the chargeable risk premium rates for flood
insurance under this title for any properties within
any single risk classification may not be increased by
an amount that would result in the average of such rate
increases for properties within the risk classification
during any 12-month period exceeding 15 percent of the
average of the risk premium rates for properties within
the risk classification upon the commencement of such
12-month period; and
(4) the chargeable risk premium rates for flood
insurance under this title for any properties described
in subparagraphs (A) through (E) of section 1307(a)(2)
shall be increased by 25 percent each year, until the
average risk premium rate for such properties is equal
to the average of the risk premium rates for properties
described under paragraph (3).
(f) Adjustment of Premium.--Notwithstanding any other
provision of law, if the Administrator determines that the
holder of a flood insurance policy issued under this Act is
paying a lower premium than is required under this section due
to an error in the flood plain determination, the Administrator
may only prospectively charge the higher premium rate.
(g) Frequency of Premium Collection.--
(1) Options.--With respect to any chargeable premium
rate prescribed under this section, the Administrator
shall provide policyholders that are not required to
escrow their premiums and fees for flood insurance as
set forth under section 102 of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a) with the
option of paying their premiums annually or monthly.
(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) 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.
(C) Policyholder protection.--The
Administrator may--
(i) during the 12-month period
beginning on the date of the enactment
of this subparagraph, charge
policyholders choosing to pay premiums
in monthly installments a fee for the
total cost of the monthly collection of
premiums not to exceed $25 annually;
and
(ii) after the expiration of the 12-
month period referred to in clause (i),
adjust the fee charged annually to
cover the total cost of the monthly
collection of premiums as determined by
the report submitted pursuant to
subparagraph (D).
(D) Annual reports.--On an annual basis, the
Administrator shall report to the Committee on
Financial Services of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate the
ongoing costs associated with the monthly
payment of premiums.
(h) Rule of Construction.--For purposes of this section, the
calculation of an ``average historical loss year''--
(1) includes catastrophic loss years; and
(2) shall be computed in accordance with generally
accepted actuarial principles.
(i) Rates for Properties Newly Mapped into Areas with Special
Flood Hazards.--Notwithstanding subsection (f), the premium
rate for flood insurance under this title that is purchased on
or after the date of the enactment of this subsection--
(1) on a property located in an area not previously
designated as having special flood hazards and that,
pursuant to any issuance, revision, updating, or other
change in a flood insurance map, becomes designated as
such an area; and
(2) where such flood insurance premium rate is
calculated under subsection (a)(1) of section 1307 (42
U.S.C. 4014(a)(1)),
shall for the first policy year be the preferred risk premium
for the property and upon renewal shall be calculated in
accordance with subsection (e) of this section until the rate
reaches the rate calculated under subsection (a)(1) of section
1307.
(j) Premiums and Reports.--In setting premium risk rates, in
addition to striving to achieve the objectives of this title
the Administrator shall also strive to minimize the number of
policies with annual premiums that exceed one percent of the
total coverage provided by the policy. For any policies
premiums that exceed this one percent threshold, the
Administrator shall report such exceptions to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate.
(k) Consideration of Mitigation Methods.--In calculating the
risk premium rate charged for flood insurance for a property
under this section, the Administrator [shall take into account]
shall--
(1) take into account the implementation of any
mitigation method identified by the Administrator in
the guidance issued under section 1361(d) (42 U.S.C.
4102(d))[.]; and
(2) offer a reduction of the risk premium rate
charged to a policyholder, as determined by the
Administrator, if the policyholder implements any
mitigation method described in paragraph (1).
(l) Clear Communications.--The Administrator shall clearly
communicate full flood risk determinations to individual
property owners regardless of whether their premium rates are
full actuarial rates.
(m) Protection of Small Businesses, Non-Profits, Houses of
Worship, and Residences.--
(1) Report.--Not later than 18 months after the date
of the enactment of this section and semiannually
thereafter, the Administrator shall monitor and report
to Committee on Financial Services of the House
Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate, the Administrator's
assessment of the impact, if any, of the rate increases
required under subparagraphs (A) and (D) of section
1307(a)(2) [and the surcharges required under section
1308A] on the affordability of flood insurance for--
(A) small businesses with less than 100
employees;
(B) non-profit entities;
(C) houses of worship; and
(D) residences with a value equal to or less
than 25 percent of the median home value of
properties in the State in which the property
is located.
(2) Recommendations.--If the Administrator determines
that the rate increases [or surcharges] described in
paragraph (1) are having a detrimental effect on
affordability, including resulting in lapsed policies,
late payments, or other criteria related to
affordability as identified by the Administrator, for
any of the properties identified in subparagraphs (A)
through (D) of such paragraph, the Administrator shall,
not later than 3 months after making such a
determination, make such recommendations as the
Administrator considers appropriate to improve
affordability to the Committee on Financial Services of
the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(n) Premium Rates for Certain Agricultural Structures With
Variances.--Notwithstanding any other provision of this Act,
the chargeable premium rate for coverage under this title for
any structure provided a variance pursuant to section
1315(a)(3) shall be the same as the rate that otherwise would
apply to such structure if the structure had been dry
floodproofed or a comparable actuarial rate based upon the risk
associated with structures within the applicable AL-E zone
established under section 1360(l).
(o) 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 a flood insurance policy, either offered through the
national flood insurance program or private market, that was
used to satisfy the requirements under section 102(a) of the
Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(a)) to
be a period of continuous coverage.
[SEC. 1308A. PREMIUM SURCHARGE.
[(a) Imposition and Collection.--The Administrator shall
impose and collect an annual surcharge, in the amount provided
in subsection (b), on all policies for flood insurance coverage
under the National Flood Insurance Program that are newly
issued or renewed after the date of the enactment of this
section. Such surcharge shall be in addition to the surcharge
under section 1304(b) and any other assessments and surcharges
applied to such coverage.
[(b) Amount.--The amount of the surcharge under subsection
(a) shall be--
[(1) $25, except as provided in paragraph (2); and
[(2) $250, in the case of a policy for any property
that is--
[(A) a non-residential property; or
[(B) a residential property that is not the
primary residence of an individual.
[(c) Termination.--Subsections (a) and (b) shall cease to
apply on the date on which the chargeable risk premium rate for
flood insurance under this title for each property covered by
flood insurance under this title, other than properties for
which premiums are calculated under subsection (e) or (f) of
section 1307 or section 1336 of this Act (42 U.S.C. 4014, 4056)
or under section 100230 of the Biggert-Waters Flood Insurance
Reform Act of 2012 (42 U.S.C. 4014 note), is not less than the
applicable estimated risk premium rate under section 1307(a)(1)
for such property.]
financing
Sec. 1309. (a) All authority which was vested in the Housing
and Home Finance Administrator by virtue of section 15(e) of
the Federal Flood Insurance Act of 1956 (70 Stat. 1084)
(pertaining to the issue of notes or other obligations or the
Secretary of the Treasury), as amended by subsections (a) and
(b) of section 1303 of this Act, shall be available to the
Administrator for the purpose of carrying out the flood
insurance program under this title; except that the total
amount of notes and obligations which may be issued by the
Administrator pursuant to such authority (1) without the
approval of the President, may not exceed $500,000,000, and (2)
with the approval of the President, may not exceed
$1,500,000,000 through the date specified in section 1319, and
$1,000,000,000 thereafter; except that, through [September 30,
2019] September 30, 2024, clause (2) of this sentence shall be
applied by substituting ``$30,425,000,000'' for
``$1,500,000,000''. The Administrator shall report to the
Committee on Banking, Finance and Urban Affairs of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate at any time when he requests the
approval of the President in accordance with the preceding
sentence.
(b) Any funds borrowed by the Administrator under this
authority shall, from time to time, be deposited in the
National Flood Insurance Fund established under section 1310.
(c) Upon the exercise of the authority established under
subsection (a), the Administrator shall transmit a schedule for
repayment of such amounts to--
(1) the Secretary of the Treasury;
(2) the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
(3) the Committee on Financial Services of the House
of Representatives.
(d) In connection with any funds borrowed by the
Administrator under the authority established in subsection
(a), the Administrator, beginning 6 months after the date on
which such funds are borrowed, and continuing every 6 months
thereafter until such borrowed funds are fully repaid, shall
submit a report on the progress of such repayment to--
(1) the Secretary of the Treasury;
(2) the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
(3) the Committee on Financial Services of the House
of Representatives.
national flood insurance fund
Sec. 1310. (a) To carry out the flood insurance program
authorized by this title, the Administrator shall establish in
the Treasury of the United States a National Flood Insurance
Fund (hereinafter referred to as the ``fund'') which shall be
an account separate from any other accounts or funds available
to the Administrator and shall be available as described in
subsection (f), without fiscal year limitation (except as
otherwise provided in this section)--
(1) for making such payments as may, from time to
time, be required under section 1334;
(2) to pay reinsurance claims under the excess loss
reinsurance coverage provided under section 1335;
(3) to repay to the Secretary of the Treasury such
sums as may be borrowed from him (together with
interest) in accordance with the authority provided in
section 1309;
(4) to the extent approved in appropriations Acts, to
pay any administrative expenses of the flood insurance
and floodplain management programs (including the costs
of mapping activities under section 1360);
(5) for the purposes specified in subsection (d)
under the conditions provided therein;
(6) for carrying out the program under section
1315(b);
(7) for transfers to the National Flood Mitigation
Fund, but only to the extent provided in section
1367(b)(1); [and]
(8) for carrying out section 1363(f)[.]; and
(9) for carrying out the community assistance program
for effective floodplain management under section 1327.
(b) The fund shall be credited with--
(1) such funds borrowed in accordance with the
authority provided in section 1309 as may from time to
time be deposited in the fund;
(2) premiums, fees, or other charges which may be
paid or collected in connection with the excess loss
reinsurance coverage provided under section 1335;
(3) such amounts as may be advanced to the fund from
appropriations in order to maintain the fund in an
operative condition adequate to meet its liabilities;
(4) interest which may be earned on investments of
the fund pursuant to subsection (c);
(5) such sums as are required to be paid to the
Administrator under section 1308(d); and
(6) receipts from any other operations under this
title (including premiums under the conditions
specified in subsection (d), and salvage proceeds, if
any, resulting from reinsurance coverage).
(c) If, after--
(1) all outstanding obligations of the fund have been
liquidated, and
(2) any outstanding amounts which may have been
advanced to the fund from appropriations authorized
under section 1376(a)(2)(B) have been credited to the
appropriation from which advanced, with interest
accrued at the rate, prescribed under section 15(e) of
the Federal Flood Insurance Act of 1956, as in effect
immediately prior to the enactment of this title,
the Administrator determines that the moneys of the fund are in
excess of current needs, he may request the investment of such
amounts as he deems advisable by the Secretary of the Treasury
in obligations issued or guaranteed by the United States.
(d) In the event the Administrator makes a determination in
accordance with the provisions of section 1340 that operation
of the flood insurance program, in whole or in part, should be
carried out through the facilities of the Federal Government,
the fund shall be available for all purposes incident thereto,
including--
(1) cost incurred in the adjustment and payment of
any claims for losses, and
(2) payment of applicable operating costs set forth
in the schedules prescribed under section 1311,
for so long as the program is so carried out, and in such event
any premiums paid shall be deposited by the Administrator to
the credit of the fund.
(e) An annual business-type budget for the fund shall be
prepared, transmitted to the Congress, considered, and enacted
in the manner prescribed by sections 9103 and 9104 of title 31,
United States Code, for wholly-owned Government corporations.
(f) The Fund shall be available, with respect to any fiscal
year beginning on or after October 1, 1981, only to the extent
approved in appropriation Acts; except that the fund shall be
available for the purpose described in subsection (d)(1)
without such approval.
SEC. 1310A. RESERVE FUND.
(a) Establishment of Reserve Fund.--In carrying out the flood
insurance program authorized by this chapter, the Administrator
shall establish in the Treasury of the United States a National
Flood Insurance Reserve Fund (in this section referred to as
the ``Reserve Fund'') which shall--
(1) be an account separate from any other accounts or
funds available to the Administrator; and
(2) be available for meeting the expected future
obligations of the flood insurance program, including--
(A) the payment of claims;
(B) claims adjustment expenses; and
(C) the repayment of amounts outstanding
under any note or other obligation issued by
the Administrator under section 1309(a).
(b) Reserve Ratio.--Subject to the phase-in requirements
under subsection (d), the Reserve Fund shall maintain a balance
equal to--
(1) 1 percent of the sum of the total potential loss
exposure of all outstanding flood insurance policies in
force in the prior fiscal year; or
(2) such higher percentage as the Administrator
determines to be appropriate, taking into consideration
any circumstance that may raise a significant risk of
substantial future losses to the Reserve Fund.
(c) Maintenance of Reserve Ratio.--
(1) In general.--The Administrator shall have the
authority to establish, increase, or decrease the
amount of aggregate annual insurance premiums to be
collected for any fiscal year necessary--
(A) to maintain the reserve ratio required
under subsection (b); and
(B) to achieve such reserve ratio, if the
actual balance of such reserve is below the
amount required under subsection (b).
(2) Considerations.--In exercising the authority
granted under paragraph (1), the Administrator shall
consider--
(A) the expected operating expenses of the
Reserve Fund;
(B) the insurance loss expenditures under the
flood insurance program;
(C) any investment income generated under the
flood insurance program; and
(D) any other factor that the Administrator
determines appropriate.
(3) Limitations.--
(A) Rates.--In exercising the authority
granted under paragraph (1), the Administrator
shall be subject to all other provisions of
this Act, including any provisions relating to
chargeable premium rates or annual increases of
such rates.
(B) Use of additional annual insurance
premiums.--Notwithstanding any other provision
of law or any agreement entered into by the
Administrator, the Administrator shall ensure
that all amounts attributable to the
establishment or increase of annual insurance
premiums under paragraph (1) are transferred to
the Administrator for deposit into the Reserve
Fund, to be available for meeting the expected
future obligations of the flood insurance
program as described in subsection (a)(2).
[(4) Deposit of premium surcharges.--The
Administrator shall deposit in the Reserve Fund any
surcharges collected pursuant to section 1308A.]
(d) Phase-in Requirements.--The phase-in requirements under
this subsection are as follows:
(1) In general.--Beginning in fiscal year 2013 and
not ending until the fiscal year in which the ratio
required under subsection (b) is achieved, in each such
fiscal year the Administrator shall place in the
Reserve Fund an amount equal to not less than 7.5
percent of the reserve ratio required under subsection
(b).
(2) Amount satisfied.--As soon as the ratio required
under subsection (b) is achieved, and except as
provided in paragraph (3), the Administrator shall not
be required to set aside any amounts for the Reserve
Fund.
(3) Exception.--If at any time after the ratio
required under subsection (b) is achieved, the Reserve
Fund falls below the required ratio under subsection
(b), the Administrator shall place in the Reserve Fund
for that fiscal year an amount equal to not less than
7.5 percent of the reserve ratio required under
subsection (b).
(e) Limitation on Reserve Ratio.--In any given fiscal year,
if the Administrator determines that the reserve ratio required
under subsection (b) cannot be achieved, the Administrator
shall submit, on a calendar quarterly basis, a report to
Congress that--
(1) describes and details the specific concerns of
the Administrator regarding the consequences of the
reserve ratio not being achieved;
(2) demonstrates how such consequences would harm the
long-term financial soundness of the flood insurance
program; and
(3) indicates the maximum attainable reserve ratio
for that particular fiscal year.
(f) Investment.--The Secretary of the Treasury shall invest
such amounts of the Reserve Fund as the Secretary determines
advisable in obligations issued or guaranteed by the United
States.
* * * * * * *
payment of claims
Sec. 1312. (a) In General.--The Administrator is authorized
to prescribe regulations establishing the general method or
methods by which proved and approved claims for losses may be
adjusted and paid for any damage to or loss of property which
is covered by flood insurance made available under the
provisions of this title.
(b) Minimum Annual Deductible.--
(1) Pre-firm properties.--For any structure which is
covered by flood insurance under this title, and on
which construction or substantial improvement occurred
on or before December 31, 1974, or before the effective
date of an initial flood insurance rate map published
by the Administrator under section 1360 for the area in
which such structure is located, the minimum annual
deductible for damage to such structure shall be--
(A) $1,500, if the flood insurance coverage
for such structure covers loss of, or physical
damage to, such structure in an amount equal to
or less than $100,000; and
(B) $2,000, if the flood insurance coverage
for such structure covers loss of, or physical
damage to, such structure in an amount greater
than $100,000.
(2) Post-firm properties.--For any structure which is
covered by flood insurance under this title, and on
which construction or substantial improvement occurred
after December 31, 1974, or after the effective date of
an initial flood insurance rate map published by the
Administrator under section 1360 for the area in which
such structure is located, the minimum annual
deductible for damage to such structure shall be--
(A) $1,000, if the flood insurance coverage
for such structure covers loss of, or physical
damage to, such structure in an amount equal to
or less than $100,000; and
(B) $1,250, if the flood insurance coverage
for such structure covers loss of, or physical
damage to, such structure in an amount greater
than $100,000.
(c) Payment of Claims to Condominium Owners.--The
Administrator may not deny payment for any damage to or loss of
property which is covered by [flood insurance to condominium
owners] flood insurance--
(1) to condominium owners who purchased such flood
insurance separate and apart from the flood insurance
purchased by the condominium association in which such
owner is a member, based solely, or in any part, on the
flood insurance coverage of the condominium association
or others on the overall property owned by the
condominium association[.]; or
(2) to individuals with a membership interest and
occupancy agreement in a cooperative housing project
who purchased such flood insurance separate and apart
from the flood insurance purchased by the cooperative
association in which such individual is a member, based
solely, or in any part, on the flood insurance coverage
of the cooperative association or others on the overall
property owned by the cooperative association.
(d) Definitions.--For purposes of this section and section
1306(e), the terms ``cooperative association'' and
``cooperative housing project'' shall have such meaning as the
Secretary shall provide.
dissemination of flood insurance information
Sec. 1313. (a) Availability to Public and State Agencies.--
The Administrator shall from time to time take such action as
may be necessary in order to make information and data
available to the public, and to any State or local agency or
official, with regard to--
(1) the flood insurance program, its coverage and
objectives, and
(2) estimated and chargeable flood insurance premium
rates, including the basis for and differences between
such rates in accordance with the provisions of section
1308.
(b) Exchange of NFIP and Private Flood Insurance Policy and
Claims Information.--The Administrator may provide to each
private insurer that sells coverage that meets, at a minimum,
the definition of private flood insurance under section 102(b)
of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a(b)), current and historical property-specific information
that is available to the Administration on flood insurance
program coverage, flood damage assessments, and payment of
claims, but only if the following conditions are met:
(1) Each private insurer receiving such data shall
provide to the Administrator current and historical
property-specific information, generated through the
sale of the flood insurance that meets such definition
of private flood insurance, by the private insurer on
flood insurance coverage, flood damage assessments, and
payment of claims.
(2) Such information obtained under paragraph shall
be made available as required by subsections (c) and
(d).
(c) Homeowner Access to NFIP and Private Policy and Claims
Information.--Upon request by the current owner of a property,
the Administrator shall provide to the owner any current and
historical information available to the Administrator,
including information obtained under subsection (b)(1), on
insurance coverage, damage assessments, and payment of claims
concerning such property of the owner. In addition, the
Administrator shall provide information the Administrator may
have on whether the property owner may be required to purchase
flood insurance coverage due to previous receipt of federal
disaster assistance, including assistance provided by the Small
Business Administration, the Department of Housing and Urban
Development, the Federal Emergency Management Agency, or any
other type of assistance subject to the mandatory purchase
requirement under section 102 of the Flood Disaster Protection
Act of 1973.
(d) Homebuyer Access to Flood Insurance Information.--
Notwithstanding section 552a(b) of title 5, United States Code,
not later than 14 days after a request for such information by
a buyer under contract for purchase of a property, the
Administrator shall provide to the buyer the following
information:
(1) 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 this title.
(2) Such other available information about the
property as determined by the Administrator to
accurately and adequately characterize the true flood
risk to the property.
(3) A notice to the recipient of the information that
the information provided may only be utilized by the
recipient alone and only for the purposes of
homebuying.
* * * * * * *
state and local land use controls
Sec. 1315. (a) Requirement for Participation in Flood
Insurance Program.--
(1) In general.--After December 31, 1971, no new
flood insurance coverage shall be provided under this
title in any area (or subdivision thereof) unless an
appropriate public body shall have adopted adequate
land use and control measures (with effective
enforcement provisions) which the Administrator finds
are consistent with the comprehensive criteria for land
management and use under section 1361.
(2) Agricultural structures.--
(A) Activity restrictions.--Notwithstanding
any other provision of law, the adequate land
use and control measures required to be adopted
in an area (or subdivision thereof) pursuant to
paragraph (1) may provide, at the discretion of
the appropriate State or local authority, for
the repair and restoration to predamaged
conditions of an agricultural structure that--
(i) is a [repetitive loss structure]
repetitive-loss property; or
(ii) has incurred flood-related
damage to the extent that the cost of
restoring the structure to its
predamaged condition would equal or
exceed 50 percent of the market value
of the structure before the damage
occurred.
(B) Premium rates and coverage.--To the
extent applicable, an agricultural structure
repaired or restored pursuant to subparagraph
(A) shall pay chargeable premium rates
established under section 1308 at the estimated
risk premium rates under section 1307(a)(1). If
resources are available, the Administrator
shall provide technical assistance and
counseling, upon request of the owner of the
structure, regarding wet flood-proofing and
other flood damage reduction measures for
agricultural structures. The Administrator
shall not be required to make flood insurance
coverage available for such an agricultural
structure unless the structure is wet flood-
proofed through permanent or contingent
measures applied to the structure or its
contents that prevent or provide resistance to
damage from flooding by allowing flood waters
to pass through the structure, as determined by
the Administrator.
(C) Prohibition on disaster relief.--
Notwithstanding any other provision of law, any
agricultural structure repaired or restored
pursuant to subparagraph (A) shall not be
eligible for disaster relief assistance under
any program administered by the Administrator
or any other Federal agency.
(D) Definitions.--For purposes of this
paragraph--
(i) the term ``agricultural
structure'' means any structure used
exclusively in connection with the
production, harvesting, storage,
raising, or drying of agricultural
commodities; and
(ii) the term ``agricultural
commodities'' means agricultural
commodities and livestock.
(3) Allowable local variances for certain
agricultural structures.--
(A) Requirement.--Notwithstanding any other
provision of this Act--
(i) the land use and control measures
adopted pursuant to paragraph (1) may
not, for purposes of such paragraph, be
considered to be inadequate or
inconsistent with the comprehensive
criteria for land management and use
under section 1361 because such
measures provide that, in the case of
any agricultural structure that is
located in an area having special flood
hazards, a variance from compliance
with the requirements to elevate or
floodproof such a structure and meeting
the requirements of subparagraph (B)
may be granted; and
(ii) the Administrator may not
suspend a community from participation
in the national flood insurance
program, or place such a community on
probation under such program, because
such land use and control measures
provide for such a variance.
This subparagraph shall not limit the ability
of the Administrator to take enforcement action
against a community that does not adopt
adequate variance criteria or establish proper
enforcement mechanisms.
(B) Variance; considerations.--The
requirements of this subparagraph with respect
to a variance are as follows:
(i) The variance is granted by an
official from a duly constituted State
or local zoning authority, or other
authorized public body responsible for
regulating land development or
occupancy in flood-prone areas.
(ii) In the case of new construction,
such official has determined--
(I) that neither
floodproofing nor elevation of
the new structure to the base
flood elevation is practicable;
and
(II) that the structure is
not located in--
(aa) a designated
regulatory floodway;
(bb) an area
riverward of a levee or
other flood control
structure; or
(cc) an area subject
to high velocity wave
action or seaward of
flood control
structures.
(iii) In the case of existing
structures--
(I) if such structure is
substantially damaged or in
need of substantial repairs or
improvements, such official has
determined that neither
floodproofing nor elevation to
the base flood elevation is
practicable; and
(II) if such structure is
located within a designated
regulatory flood-way, such
official has determined that
the repair or improvement does
not result in any increase in
base flood levels during the
base flood discharge.
(iv) Such official has determined
that the variance will not result in
increased flood heights, additional
threats to public safety, extraordinary
public expense, create nuisances, cause
fraud on or victimization of the
public, or conflict with existing local
laws or ordinances.
(v) Not more than one claim payment
exceeding $1,000 has been made for the
structure under flood insurance
coverage under this title within any
period of 10 consecutive years at any
time prior to the granting of the
variance.
(C) Definitions.--For purposes of this
paragraph, the following definitions shall
apply:
(i) Agricultural structure.--The term
``agricultural structure'' has the
meaning given such term in paragraph
(2)(D).
(ii) Floodproofing.--The term
``floodproofing'' means, with respect
to a structure, any combination of
structural and non-structural
additions, changes, or adjustments to
the structure, including attendant
utilities and equipment, that reduce or
eliminate potential flood damage to
real estate or improved real property,
water and sanitary facilities,
structures, or their contents.
(b) Community Rating System and Incentives for Community
Floodplain Management.--
(1) Authority and goals.--The Administrator shall
carry out a community rating system program, under
which communities participate voluntarily--
(A) to provide incentives for measures that
reduce the risk of flood or erosion damage that
exceed the criteria set forth in section 1361
and evaluate such measures;
(B) to encourage adoption of more effective
measures that protect natural and beneficial
floodplain functions;
(C) to encourage floodplain and erosion
management; and
(D) to promote the reduction of Federal flood
insurance losses.
(2) Incentives.--The program shall provide incentives
in the form of credits on premium rates for flood
insurance coverage in communities that the
Administrator determines have adopted and enforced
measures that reduce the risk of flood and erosion
damage that exceed the criteria set forth in section
1361. In providing incentives under this paragraph, the
Administrator [may] shall provide for credits to flood
insurance premium rates in communities that the
Administrator determines have implemented measures that
protect natural and beneficial floodplain functions.
(3) Credits.--The credits on premium rates for flood
insurance coverage shall be based on the estimated
reduction in flood and erosion damage risks resulting
from the measures adopted by the community under this
program, and the Administrator shall provide credits to
the maximum number of communities practicable. If a
community has received mitigation assistance under
section 1366, the credits shall be phased in a manner,
determined by the Administrator, to recover the amount
of such assistance provided for the community.
(4) Reports.--Not later than 2 years after the date
of enactment of the Riegle Community Development and
Regulatory Improvement Act of 1994 and not less than
every 2 years thereafter, the Administrator shall
submit a report to the Congress regarding the program
under this subsection. Each report shall include an
analysis of the cost-effectiveness of the program, any
other accomplishments or shortcomings of the program,
and any recommendations of the Administrator for
legislation regarding the program.
(c) Grants for Community Rating System Program
Coordinators.--
(1) Authority.--The Administrator shall carry out a
program to make grants to consortia of States and
communities for use only for costs of employing or
otherwise retaining an individual or individuals to
coordinate and carry out responsibilities relating to
participation in the community rating system program
under subsection (b) for States and communities that
are members of such consortia.
(2) Eligibility.--The Administrator shall establish
such criteria as the Administrator considers
appropriate for a consortium of States and communities
to be eligible for grants under this subsection, which
shall include requiring a consortium to provide
evidence to the Administrator that the consortium has
sufficient authority and administrative capability to
use grant amounts in accordance with this subsection on
behalf of its member jurisdictions.
(3) Timing.--A consortium receiving a grant under
this section shall establish the position or positions
described in paragraph (1), and employ or otherwise
retain an individual or individuals to fill such
position or positions, not later than the date that all
such grant amounts are expended.
(4) Applications.--The Administrator shall provide
for consortia of States and communities to submit
applications for grants under this subsection, which
shall include--
(A) the evidence referred to in paragraph
(2);
(B) such assurances as the Administrator
shall require to ensure compliance with the
requirement under paragraph (3);
(C) such assurances as the Administrator
shall require to ensure that the consortia will
provide funding sufficient to continue the
position or positions funded with the grant
amounts, in the same annual amount as under
such grant funding, after such grant funds are
expended; and
(D) such other information as the
Administrator may require.
(5) Selection.--From among eligible consortia of
States and communities submitting applications pursuant
to paragraph (3), the Administrator shall select
consortia to receive grants under this subsection in
accordance with such competitive criteria for such
section as the Administrator shall establish.
(6) Definition of community.--For purposes of this
section, the term ``community'' has the meaning given
such term in section 1366(h) (42 U.S.C. 4104c(h)),
except that such term includes counties and regional
planning authorities that do not have zoning and
building code jurisdiction.
(7) Authorization of appropriations.--There is
authorized to be appropriated for grants under this
subsection--
(A) $7,000,000 for the first fiscal year
commencing after the expiration of the 4-month
period beginning on the date of the enactment
of this Act; and
(B) $7,000,000 for each of the four
consecutive fiscal years thereafter.
* * * * * * *
program expiration
Sec. 1319. No new contract for flood insurance under this
title shall be entered into after [September 30, 2019]
September 30, 2024.
* * * * * * *
SEC. 1326. STATE REVOLVING LOAN FUNDS FOR LOW-INTEREST LOANS.
(a) Definitions.--In this section--
(1) the term ``Community Rating System'' means the
community rating system carried out under section
1315(b);
(2) the term ``eligible State'' means a State, the
District of Columbia, and the Commonwealth of Puerto
Rico;
(3) the term ``insular area'' means--
(A) Guam;
(B) American Samoa;
(C) the Commonwealth of the Northern Mariana
Islands;
(D) the Federated States of Micronesia;
(E) the Republic of the Marshall Islands;
(F) the Republic of Palau; and
(G) the United States Virgin Islands;
(4) the term ``intended use plan'' means a plan
prepared under subsection (d)(1);
(5) the term ``low-income geographic area'' means an
area described in paragraph (1) or (2) of section
301(a) of the Public Works and Economic Development Act
of 1965 (42 U.S.C. 3161(a));
(6) the term ``low-income homeowner'' means the owner
of a primary residence, the household income of which
in a taxable year is not more than 80 percent of the
median income for the area in which the residence is
located;
(7) the term ``participating State'' means an
eligible State that--
(A) has entered into an agreement under
subsection (b)(1); and
(B) agrees to comply with the requirements of
this section;
(8) the term ``pre-FIRM building'' means a building
for which construction or substantial improvement
occurred before the effective date of the initial Flood
Insurance Rate Map published by the Administrator under
section 1360 for the area in which the building is
located;
(9) the term ``repetitive-loss property'' has the
meaning given the term in section 1370(a);
(10) the term ``severe repetitive-loss property'' has
the meaning given the term in section 1370(a);
(11) the term ``State loan fund'' means a flood
mitigation assistance revolving loan fund established
by an eligible State under this section; and
(12) the term ``tribal government'' means the
recognized government of an Indian tribe, or the
governing body of an Alaska Native regional or village
corporation, that has been determined eligible to
receive services from the Bureau of Indian Affairs.
(b) General Authority.--
(1) In general.--The Administrator may enter into an
agreement with an eligible State to provide a
capitalization grant for the eligible State to
establish a revolving fund that will provide funding
assistance to help homeowners, businesses, nonprofit
organizations, and communities reduce flood risk in
order to decrease--
(A) the loss of life and property;
(B) the cost of flood insurance; and
(C) Federal disaster payments.
(2) Timing of deposit and agreements for distribution
of funds.--
(A) In general.--Not later than the last day
of the fiscal year following the fiscal year in
which a capitalization grant is made to a
participating State under paragraph (1), the
participating State shall--
(i) deposit the grant in the State
loan fund of the State; and
(ii) enter into one or more binding
agreements that provide for the State
to distribute the grant funds for
purposes authorized under subsection
(c) such that--
(I) in the case of the
initial grant made under this
section to a State, not less
than 75 percent of the amount
of the grant funds shall be
distributed before the
expiration of the 24-month
period beginning upon deposit
of such funds in the State loan
fund of the State; and
(II) in the case of any
subsequent grant made under
this section to a State, not
less than 90 percent of the
amount of the grant funds made
under the capitalization grant
shall be distributed before the
expiration of the 12-month
period beginning upon deposit
of such funds in the State loan
fund of the State.
(B) Noncompliance.--Except as provided in
subparagraph (C), if a participating State does
not comply with subparagraph (A) with respect
to a grant, the Administrator shall reallocate
the grant in accordance with paragraph (3)(B).
(C) Exception.--The Administrator may not
reallocate any funds under subparagraph (B) to
a participating State that violated
subparagraph (A) with respect to a grant made
during the same fiscal year in which the funds
to be reallocated were originally made
available.
(3) Allocation.--
(A) In general.--The Administrator shall
allocate amounts made available to carry out
this section to participating States--
(i) for the participating States to
deposit in the State loan funds
established by the participating
States; and
(ii) except as provided in paragraph
(6), in accordance with the
requirements described in subparagraph
(B).
(B) Requirements.--The requirements described
in this subparagraph are as follows:
(i) Fifty percent of the total amount
made available under subparagraph (A)
shall be allocated so that each
participating State receives the
percentage amount that is obtained by
dividing the number of properties that
were insured under the national flood
insurance program in that State in the
fiscal year preceding the fiscal year
in which the amount is allocated by the
total number of properties that were
insured under the national flood
insurance program in the fiscal year
preceding the fiscal year in which the
amount is allocated.
(ii) Fifty percent of the total
amount made available under
subparagraph (A) shall be allocated so
that each participating State receives
a percentage of funds that is equal to
the product obtained under clause
(iii)(IV) with respect to that
participating State after following the
procedures described in clause (iii).
(iii) The procedures described in
this clause are as follows:
(I) Divide the total amount
collected in premiums for
properties insured under the
national flood insurance
program in each participating
State during the previous
fiscal year by the number of
properties insured under the
national flood insurance
program in that State for that
fiscal year.
(II) Add together each
quotient obtained under
subclause (I).
(III) For each participating
State, divide the quotient
obtained under subclause (I)
with respect to that State by
the sum obtained under
subclause (II).
(IV) For each participating
State, multiply the amount that
is 50 percent of the total
amount made available under
subparagraph (A) by the
quotient obtained under
subclause (III).
(iv) Except as provided in paragraph
(5), in a fiscal year--
(I) a participating State may
not receive more than 15
percent of the total amount
that is made available under
subparagraph (A) in that fiscal
year; and
(II) if a participating
State, based on the
requirements under clauses (i)
through (iii), would, but for
the limit under subclause (I)
of this clause, receive an
amount that is greater than the
amount the State is authorized
to receive under that
subclause, the difference
between the authorized amount
and the amount otherwise due to
the State under clauses (i)
through (iii) shall be
allocated to other
participating States--
(aa) that, in that
fiscal year, have not
received an amount
under subparagraph (A)
that is more than the
authorized amount under
subclause (I) of this
clause; and
(bb) by using the
requirements under
clauses (i) through
(iii), except that a
participating State may
receive an allocation
under this subclause
only if the allocation
does not result in the
State receiving a total
amount for the fiscal
year under subparagraph
(A) that is greater
than the authorized
amount under subclause
(I).
(4) No revolving fund required.--
(A) In general.--Notwithstanding any other
provision of this section, and subject to
subparagraph (B), a participating State that
receives less than $4,000,000 under paragraph
(3)(B) in a fiscal year may distribute the
funds directly in the form of grants or
technical assistance for a purpose described in
subsection (c)(2), without regard to whether
the State has established a State loan fund.
(B) State matching.--A participating State
that exercises the authority under subparagraph
(A) in a fiscal year shall provide matching
funds from non-Federal sources in an amount
that is equal to 15 percent of the amount that
the State receives under paragraph (3)(B) in
that fiscal year for purposes described in
subparagraph (A).
(5) Allocation of remaining funds.--After allocating
amounts made available to carry out this section for a
fiscal year in accordance with paragraph (3), the
Administrator shall allocate any remaining amounts made
available for that fiscal year to participating States,
using the procedures described in clauses (i) through
(iii) of paragraph (3)(B).
(6) Allocation for tribal governments and insular
areas.--The Administrator shall reserve not less than
5.0 percent of the amount made available to carry out
this section in a fiscal year to enter into grant
agreements with tribal governments and insular areas,
with the grant funds to be distributed--
(A) according to criteria established by the
Administrator; and
(B) for a purpose described in subsection
(c)(2).
(7) Administrative costs; technical assistance.--The
Administrator shall reserve not more than 2.5 percent
of the amount made available to carry out this section
in a fiscal year--
(A) for administrative costs incurred in
carrying out this section; and
(B) to provide technical assistance to
recipients of grants under this section.
(c) Use of Funds.--
(1) In general.--Amounts deposited in a State loan
fund, including repayments of loans made from the fund
and interest earned on the amounts in the fund, shall
be used--
(A) consistent with paragraphs (2) and (3)
and subsection (g), to provide financial
assistance for--
(i) homeowners, businesses, and
nonprofit organizations that are
eligible to participate in the national
flood insurance program;
(ii) any local government that
participates in the national flood
insurance program; and
(iii) any State government agencies
or subdivisions of any State government
that engage in floodplain management
activities;
(B) as a source of revenue and security for
leveraged loans, the proceeds of which shall be
deposited in the State loan fund; or
(C) for the sale of bonds as security for
payment of the principal and interest on
revenue or general obligation bonds issued by
the participating State to provide matching
funds under subsection (g), if the proceeds
from the sale of the bonds are deposited in the
State loan fund.
(2) Purposes.--A recipient of financial assistance
provided through amounts from a State loan fund--
(A) shall use the amounts to reduce--
(i) flood risk; or
(ii) potential flood claims submitted
under the national flood insurance
program;
(B) shall use the amounts in a cost-effective
manner under requirements established by the
State, which may require an applicant for
financial assistance to submit any information
that the State considers relevant or necessary
before the date on which the applicant receives
the assistance;
(C) shall use the amounts for projects that--
(i) meet design and construction
standards established by the
Administrator;
(ii) are located in communities
that--
(I) participate in the
national flood insurance
program; and
(II) have developed a State,
local, or tribal government
hazard mitigation plan that has
been approved by the
Administrator under section
1366;
(iii)(I) address a repetitive-loss
property or a severe repetitive-loss
property; or
(II) address flood risk in the 500-
year floodplain, areas of residual
flood risk, or other areas of potential
flood risk, as identified by the
Administrator; and
(iv) address current risk and
anticipate future risk, such as sea-
level rise;
(D) may use the amounts--
(i) for projects relating to--
(I) structural elevation;
(II) floodproofing;
(III) the relocation or
removal of buildings from the
100-year floodplain or other
areas of flood risk, including
the acquisition of properties
for such a purpose;
(IV) environmental
restoration activities that
directly reduce flood risk;
(V) any eligible activity
described in subparagraphs (A)
through (G) of section
1366(c)(3); or
(VI) other activities
determined appropriate by the
Administrator;
(ii) with respect to a project
described in clause (i), only for
expenditures directly related to a
project described in that clause,
including expenditures for planning,
design, and associated pre-construction
activities; and
(iii) to acquire, for the purposes of
permanent protection, land, buildings,
or a conservation easement from a
willing seller or grantor;
(E) may not use the amounts--
(i) to construct buildings or expand
existing buildings unless the activity
is for the purpose of flood mitigation;
(ii) to improve any structure, unless
the recipient has obtained flood
insurance coverage in an amount at
least equal to the lesser of the
eligible project costs or the maximum
insurable limit for the structure under
the national flood insurance program
coverage for the structure, which
coverage shall be maintained for the
useful life of the structure;
(iii) to improve a residential
property with an appraised value that
is not less than 125 percent of the
limitation on the maximum original
principal obligation of a conventional
mortgage that may be purchased by the
Federal National Mortgage Association
or the Federal Home Loan Mortgage
Corporation in the area in which the
property is located, as established
under section 302(b)(2) of the Federal
National Mortgage Association Charter
Act (12 U.S.C. 1717(b)(2)) and section
305(a)(2) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C.
1454(a)(2));
(iv) for the direct benefit of a
homeowner if the annual household
adjusted gross income of the homeowner
during the previous fiscal year was not
less than $200,000, as annually
adjusted by the Administrator to
reflect changes in the Consumer Price
Index for All Urban Consumers, as
published by the Bureau of Labor
Statistics of the Department of Labor
and rounded to the nearest $25; or
(v) to acquire real property or an
interest in real property unless the
property is purchased from a willing
seller; and
(F) shall, in the use of such amounts, give
priority to the maximum extent practicable to
projects that assist low-income homeowners and
low-income geographical areas.
(d) Intended Use Plans.--
(1) In general.--After providing the opportunity for
public review and comment, each participating State
shall annually prepare a plan that identifies, for the
year following the date of issuance of the intended use
plan, the intended uses of the amounts available in the
State loan fund of the participating State.
(2) Consultation during preparation.--Each
participating State, in preparing an intended use plan,
shall ensure that the State agency with primary
responsibility for floodplain management--
(A) provides oversight with respect to the
preparation of the intended use plan; and
(B) consults with any other appropriate State
agency, including agencies responsible for
coastal and environmental management.
(3) Contents.--A participating State shall, in each
intended use plan--
(A) include--
(i) an explanation of the mitigation
and resiliency benefits the State
intends to achieve, including by--
(I) reducing future damage
and loss associated with
flooding;
(II) reducing the number of
severe repetitive-loss
properties and repetitive-loss
properties in the State;
(III) decreasing the number
of flood insurance claims in
the State; and
(IV) increasing the rating
under the Community Rating
System for communities in the
State;
(ii) information with respect to the
availability of, and the application
process for receiving, financial
assistance from the State loan fund of
the State;
(iii) the criteria and methods
established for the distribution of
amounts from the State loan fund of the
State;
(iv) the amount of financial
assistance that the State anticipates
allocating to--
(I) local government
projects; and
(II) projects for homeowners,
business, or nonprofit
organizations;
(v) the expected terms of the
assistance provided under clause (iv);
and
(vi) a description of the financial
status of the State loan fund and the
short-term and long-term goals of the
State loan fund; and
(B) provide, to the maximum extent
practicable, that priority for the use of
amounts from the State loan fund shall be given
to projects that--
(i) address severe repetitive-loss
properties and repetitive-loss
properties;
(ii) assist low-income homeowners and
low-income geographic areas; and
(iii) address flood risk for pre-FIRM
buildings.
(4) Publication.--Each participating State shall
publish and periodically update a list of all projects
receiving funding from the State loan fund of the
State, which shall include identification of--
(A) the community in which the project is
located;
(B) the type and amount of assistance
provided for each project; and
(C) the expected funding schedule and date of
completion of each project.
(e) Fund Management.--Amounts in a State loan fund shall--
(1) remain available for providing financial
assistance under this section until distributed;
(2) if the amounts are not required for immediate
distribution or expenditure, be invested in interest-
bearing obligations; and
(3) except as provided in subsection (i), include
only--
(A) amounts received from capitalization
grants made under this section;
(B) repayments of loans made from the fund;
and
(C) interest earned on amounts in the fund.
(f) Matching Funds.--
(1) Full grant.--On or before the date on which a
participating State receives a capitalization grant,
the State shall deposit into the State loan fund of the
State, in addition to the amount of the capitalization
grant, an amount from non-Federal sources that is not
less than 10 percent of the total amount of the
capitalization grant.
(2) Reduced grant.--Notwithstanding paragraph (1), if
a State deposits in the State loan fund of the State in
connection a capitalization grant an amount from non-
Federal sources that is less than 10 percent of the
total amount of the capitalization grant that would
otherwise be received by the State, the Administrator
shall reduce the amount of the capitalization grant
received by the State to the amount that is 10 times
the amount so deposited and shall allocate such
remaining grant amounts under subsection (b)(5)
together with the amounts allocated under such
subsection.
(g) Types of Assistance.--Unless otherwise prohibited by
State law, a participating State may use the amounts deposited
into a State loan fund under this section only--
(1) to make a loan, on the condition that--
(A) the interest rate for the loan is not
more than the market interest rate;
(B) the recipient of the loan will begin
making principal and interest payments on the
loan not later than 1 year after the date on
which the project for which the loan was made
is completed;
(C) the loan will be fully amortized not
later than 20 years after the date on which the
project for which the loan was made is
completed, except that, in the case of a loan
made for a project in a low-income geographic
area or to a low-income homeowner, the State
may provide a longer amortization period for
the loan if that longer period--
(i) ends on a date that is not later
than 30 years after the date on which
the project is completed; and
(ii) is not longer than the expected
design life of the project;
(D) the recipient of the loan demonstrates,
based on verified and documented information
that, at the time the loan is consummated, that
the recipient has a reasonable ability to repay
the loan, according to its terms, except that
this subparagraph may not be construed to
authorize any reduction or limitation in
efforts to comply with the requirements of
subsection (c)(2)(E) (relating to priority for
assistance for low-income homeowners and low-
income geographical areas); and
(E) payments of principal and interest with
respect to the loan will be deposited into the
State loan fund;
(2) to buy or refinance the debt obligation of a
local government related to flood mitigation or
resiliency activities, at an interest rate that is not
more than the market interest rate;
(3) to guarantee, or purchase insurance for, a local
obligation, the proceeds of which finance a project
eligible for assistance under this section, if the
guarantee or purchase, as applicable, would--
(A) improve credit market access; or
(B) reduce the interest rate with respect to
the obligation;
(4) as a source of revenue or as security for the
payment of principal and interest on revenue or general
obligation bonds issued by the State if the proceeds of
the sale of the bonds will be deposited into the State
loan fund; or
(5) to earn interest on those amounts.
(h) Assistance for Low-Income Homeowners and Low-Income
Geographic Areas.--
(1) In general.--Notwithstanding any other provision
of this section, if a participating State uses amounts
from a State loan fund to provide financial assistance
under subsection (c) in a low-income geographic area or
to a low-income homeowner, the State may provide
additional subsidization to the recipient of the
assistance, including forgiveness of the principal of a
loan.
(2) Limitation.--For each fiscal year, the total
amount of additional subsidization provided by a
participating State under paragraph (1) may not exceed
30 percent of the amount of the capitalization grant
allocated to the State for that fiscal year.
(i) Administration of Fund.--
(1) In general.--A participating State may combine
the financial administration of a State loan fund with
the financial administration of any other revolving
fund established by the State if--
(A) combining the administration of the funds
would--
(i) be convenient and avoid
administrative costs; and
(ii) not violate the law of the
State; and
(B) the Administrator determines that--
(i) amounts obtained from a grant
made under this section, amounts
obtained from the repayment of a loan
made from a State loan fund, and
interest earned on amounts in a State
loan fund will be--
(I) accounted for separately
from amounts from other
revolving funds; and
(II) used only for purposes
authorized under this section;
and
(ii) after consulting with the
appropriate State agencies, the
authority to establish assistance
priorities and carry out oversight and
related activities, other than
financial administration, with respect
to flood assistance remains with the
State agency with primary
responsibility for floodplain
management.
(2) Administrative and technical costs.--
(A) In general.--For each fiscal year, a
participating State may use the amount
described in subparagraph (B) to--
(i) pay the reasonable costs of
administration of the programs under
this section, including the recovery of
reasonable costs incurred in
establishing a State loan fund;
(ii) provide appropriate oversight of
projects authorized under this section;
and
(iii) provide technical assistance
and outreach to recipients in the State
of amounts under this section,
including with respect to updating
hazard mitigation plans and
participating in the Community Rating
System, in an amount that is not more
than 4 percent of the funds made
available to the State under this
section.
(B) Description.--The amount described in
this subparagraph is an amount equal to the sum
of--
(i) any fees collected by a
participating State to recover the
costs described in subparagraph (A)(i),
regardless of the source; and
(ii) the greatest of--
(I) $400,000;
(II) 0.2 percent of the value
of the State loan fund of a
State, as of the date on which
the valuation is made; and
(III) an amount equal to 7
percent of all grant awards
made to a participating State
for the State loan fund of the
State under this section for
the fiscal year.
(3) Audit and report.--
(A) Audit requirement.--Not less frequently
than biennially, each participating State shall
conduct an audit of the State loan fund of the
State.
(B) Report.--Each participating State shall
submit to the Administrator a biennial report
regarding the activities of the State under
this section during the period covered by the
report, including--
(i) the result of any audit conducted
by the State under subparagraph (A);
and
(ii) a review of the effectiveness of
the State loan fund of the State with
respect to--
(I) the intended use plans of
the State; and
(II) meeting the objectives
described in subsection (b)(1).
(4) Oversight.--In conducting oversight with respect
to State loan funds established under this section, the
Administrator--
(A) shall--
(i) periodically audit the funds in
accordance with procedures established
by the Comptroller General of the
United States; and
(ii) not less frequently than once
every 4 years, review each State loan
fund to determine the effectiveness of
the fund in reducing flood risk; and
(B) may, at any time--
(i) make recommendations to a
participating State with respect to the
administration of the State loan fund
of the State; or
(ii) require specific changes with
respect to a State loan fund in order
to improve the effectiveness of the
fund.
(j) Liability Protections.--The Federal Government shall not
be liable for any claim based upon the exercise or performance
of, or the failure to exercise or perform, a discretionary
function or duty on the part of the Federal agency, or an
employee of the Federal Government, in carrying out the
provision of this section.
(k) Regulations.--The Administrator shall promulgate such
guidance or regulations as may be necessary to carry out this
section, including guidance or regulations that--
(1) ensure that each participating State to which
funds are allocated under this section uses the funds
as efficiently as possible;
(2) reduce, to the maximum extent practicable, waste,
fraud, and abuse with respect to the implementation of
this section; and
(3) require any party that receives funds directly or
indirectly under this section, including a
participating State and a recipient of amounts from a
State loan fund, to use procedures with respect to the
management of the funds that conform to generally
accepted accounting standards.
(l) Authorization of Appropriations.--There ia authorized to
be appropriated to carry out this section $50,000,000 for each
of fiscal years 2020 through 2024.
SEC. 1327. COMMUNITY ASSISTANCE PROGRAM FOR EFFECTIVE FLOODPLAIN
MANAGEMENT.
(a) In General.--The Administrator shall establish a
community assistance program under this section to increase the
capacity and capability of States, Indian tribes, and
communities to effectively manage flood risk and participate in
the national flood insurance program, including the community
rating system program under section 1315(b), by providing
financial and technical assistance to States, tribes and
communities.
(b) Components.--The community assistance program under this
program shall include--
(1) making community assistance grants under
subsection (c) to States;
(2) conducting periodic assessments, not less often
than once every 5 years, of the technical assistance
and training needs of States, Indian tribes, and
communities;
(3) providing technical assistance and training to
States, Indian tribes, and communities in accordance
with the needs identified by such assessments;
(4) conducting periodic reviews of State, Indian
tribe, and community floodplain management standards by
the Administrator to promote continuous improvement in
building and maintaining effective State floodplain
management programs (as such term is defined in
subsection (d));
(5) conducting periodic estimates of the losses
avoided nationally due to the adoption of qualifying
floodplain management standards by States, Indian
tribes and communities;
(6) in coordination with each State receiving a grant
under subsection (c), developing and executing a
strategy to--
(A) provide technical and financial
assistance to communities, including small and
rural communities, and Indian tribes within the
State; and
(B) encourage greater participation in the
community rating system program; and
(7) establishing goals for States participating in
the program and incentives for exceeding such goals.
(c) Community Assistance Grants to States.--
(1) In general.--Under the program under this section
the Administrator may award grants to States, which
shall be used only--
(A) to increase the capacity and capability
of the State and communities and Indian tribes
in the State to effectively manage flood risk
and to fully participate in the national flood
insurance program, including the community
rating system program; and
(B) for activities related to implementation,
administration, oversight, and enforcement of
the national flood insurance program at the
State and local and tribal levels.
(2) Guidelines.--The Administrator shall establish
guidelines governing the use of grant funds under this
subsection, including setting forth activities eligible
to be funded with such amounts.
(3) Eligibility.--To be eligible to receive a grant
under this subsection, a State shall--
(A) demonstrate, to the satisfaction of the
Administrator, that the State has in effect
qualifying State floodplain management
standards for the State;
(B) agree to submit such reports,
certifications, and information to the
Administrator as the Administrator shall
require, including those required under
paragraph (5); and
(C) meet any additional eligibility
requirements as the Administrator may require.
(4) Application; selection criteria.--The
Administrator shall provide for States to submit
applications for grants under this subsection, which
shall include such information, assurances, and
certifications as the Administrator may require, and
may establish criteria for selection of qualifying
applications to be selected for grants under this
subsection.
(5) Ongoing review of floodplain management
standards.--Each State that is awarded funds under this
section shall provide periodic reports, certifications,
and information regarding the floodplain management
standards of such State as the Administrator may
require for the duration of the use of grant amounts.
(d) Definitions.--For purposes of this section:
(1) Indian tribe.--The term ``Indian tribe'' has the
meaning given such term in section 4 of the Native
American Housing Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4103).
(2) Qualifying state floodplain management
standards.--The term ``qualifying State floodplain
management standards'' means the floodplain management
standards of a State that--
(A) are specifically authorized under State
law and do not conflict with or inhibit the
implementation of the National Flood Insurance
Act of 1968;
(B) designate an entity responsible for
coordinating the national flood insurance
program in the State;
(C) identify State resources and programs to
manage floodplains and reduce flood risk;
(D) address on a long-term basis--
(i) integration of floodplain
management activities with other State
functions and activities;
(ii) identification of flood hazards;
(iii) management of natural
floodplain functions and resources;
(iv) elimination of adverse impacts
of development on the floodplain;
(v) flood mitigation and recovery
strategies for the State;
(vi) strategies for informing
communities and citizens about flood
risk and mitigation options; and
(vii) measures for evaluating the
effectiveness of State floodplain
management efforts;
(E) include a long-term plan that will
facilitate the prioritization and provision of
training and technical assistance to
communities and Indian tribes in the State to
increase local and tribal capacity and
capability for floodplain management, including
the capacity and capability to participate in
the national flood insurance program and the
community rating system program;
(F) provide for oversight, administration and
enforcement of the national flood insurance
program at the State and community levels; and
(G) meet such other requirements as the
Administrator may establish.
(e) Funding.--
(1) Authorization of appropriations.--There is
authorized to be appropriated $20,000,000 for each of
fiscal years 2019 through 2024 for the National Flood
Insurance Fund for carrying out this section. Any
amounts appropriated pursuant to this subsection shall
remain available until expended.
(2) Set-asides.--From any amounts made available for
grants under this section, the Administrator may
reserve such amount as the Administrator considers
appropriate--
(A) for community assistance grants under
subsection (c) to States; and
(B) for additional assistance only for States
exceeding the goals established pursuant to
subsection (b)(8).
SEC. 1328. ELEVATION CERTIFICATES.
Surveyed elevation data and other information relating to a
building that is recorded on a National Flood Insurance Program
Elevation Certificate by an individual licensed to record that
information shall continue to be in effect, and the Elevation
Certificate shall not expire, until the date on which there is
an alteration in the building.
CHAPTER II--ORGANIZATION AND ADMINISTRATION OF THE FLOOD INSURANCE
PROGRAM
* * * * * * *
Part C--Provisions of General Applicability
services by insurance industry
Sec. 1345. (a) In administering the flood insurance program
under this chapter, the Administrator is authorized to enter
into any contracts, agreements, or other appropriate
arrangements which may, from time to time, be necessary for the
purpose of utilizing, on such terms and conditions as may be
agreed upon, the facilities and services of any insurance
companies or other insurers, insurance agents and brokers, or
insurance adjustment organizations; and such contracts,
agreements, or arrangements may include provision for payment
of applicable operating costs and allowances for such
facilities and services as set forth in the schedules
prescribed under section 1311.
(b) Any such contracts, agreements, or other arrangements may
be entered into without regard to the provisions of section
3709 of the Revised Statutes (41 U.S.C. 5) or any other
provisions of law requiring competitive bidding and without
regard to the provisions of the Federal Advisory Committee Act
(5 U.S.C. App.).
(c) The Administrator of the Federal Emergency Management
Agency shall hold any agent or broker selling or undertaking to
sell flood insurance under this title harmless from any
judgment for damages against such agent or broker as a result
of any court action by a policyholder or applicant arising out
of an error or omission on the part of the Federal Emergency
Management Agency, and shall provide any such agent or broker
with indemnification, including court costs and reasonable
attorney fees, arising out of and caused by an error or
omission on the part of the Federal Emergency Management Agency
and its contractors. The Administrator of the Federal Emergency
Management Agency may not hold harmless or indemnify an agent
or broker for his or her error or omission.
(d) FEMA Authority on Transfer of Policies.--Notwithstanding
any other provision of this title, the Administrator may, at
the discretion of the Administrator, refuse to accept the
transfer of the administration of policies for coverage under
the flood insurance program under this title that are written
and administered by any insurance company or other insurer, or
any insurance agent or broker.
[(e) Risk Transfer.--The Administrator] (e) Leveraging Risk
Transfer Opportunities for a Sound Financial Framework._
(1) Authority._The Administrator may secure
reinsurance of coverage provided by the flood insurance
program from the private reinsurance and capital
markets at rates and on terms determined by the
Administrator to be reasonable and appropriate, in an
amount sufficient to maintain the ability of the
program to pay claims.
(2) Leveraging risk transfer opportunities.--On an
annual basis, the Administrator shall evaluate ceding a
portion of the risk of the flood insurance program
under this title to the private reinsurance or capital
markets, or any combination thereof, if the
Administrator determines--
(A) the rates and terms are reasonable and
appropriate; and
(B) doing so would further the development
and maintenance of a sound financial framework
for the National Flood Insurance Program.
(f) Authority to Terminate Write Your Own Arrangements.--The
Administrator may cancel any Write Your Own (as such term is
defined in section 100202(a) of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4004)) arrangement in
its entirety upon 30 days written notice to the Write Your Own
company involved by certified mail stating one of the following
reasons for such cancellation:
(1) Fraud or misrepresentation by the company after
the inception of the arrangement.
(2) Nonpayment to the Administrator of any amount
due.
(3) Material failure to comply with the requirements
of the arrangement or with the written standards,
procedures, or guidance issued by the Administrator
relating to the National Flood Insurance Program and
applicable to the company.
(g) Standardized Fee Authority.--The Administrator may
establish and implement a standardized fee schedule for all
engineering services provided in connection with flood
insurance coverage provided under this title by means of a
Write Your Own arrangement.
* * * * * * *
SEC. 1349. 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. The Administrator shall submit a report annually to
the Congress describing the results of such study and assessing
the financial status of the Program. The report shall recommend
adjustments to underwriting standards, program participation,
or premiums, if necessary, to ensure that the Program remains
financially sound. The report shall also include an evaluation
of the quality control procedures and accuracy of information
utilized in the process of underwriting National Flood
Insurance Program policies. Such evaluation shall include a
review of the risk characteristics of policies.
CHAPTER III--COORDINATION OF FLOOD INSURANCE WITH LAND-MANAGEMENT
PROGRAMS IN FLOOD-PRONE AREAS
identification of flood-prone areas
Sec. 1360. (a) The Administrator is authorized to consult
with, receive information from, and enter into any agreements
or other arrangements with the Secretaries of the Army, the
Interior, Agriculture, and Commerce, the Tennessee Valley
Authority, and the heads of other Federal departments or
agencies, on a reimbursement basis, or with the head of any
State or local agency, or enter into contracts with any persons
or private firms, in order that he may--
(1) identify and publish information with respect to
all flood plain areas, including coastal areas located
in the United States, which have special flood hazards,
within five years following the date of the enactment
of this Act, and
(2) establish or update flood-risk zone data in all
such areas, and make estimates with respect to the
rates of probable flood caused loss for the various
flood risk zones for each of these areas until the date
specified in section 1319.
(b) The Administrator is directed to accelerate the
identification of risk zones within flood-prone and mudslide-
prone areas, as provided by subsection (a)(2) of this section,
in order to make known the degree of hazard within each such
zone at the earliest possible date. To accomplish this
objective, the Administrator is authorized, without regard to
subsections (a) and (b) of section 3324 of title 31, United
States Code, and section 3709 of the Revised Statutes (41
U.S.C. 5), to make grants, provide technical assistance, and
enter into contracts, cooperative agreements, or other
transactions, on such terms as he may deem appropriate, or
consent to modifications thereof, and to make advance or
progress payments in connection therewith.
(c) The Secretary of Defense (through the Army Corps of
Engineers), the Secretary of the Interior (through the United
States Geological Survey), the Secretary of Agriculture
(through the Soil Conservation Service), the Secretary of
Commerce (through the National Oceanic and Atmospheric
Administration), the head of the Tennessee Valley Authority,
and the heads of all other Federal agencies engaged in the
identification or delineation of flood-risk zones within the
several States shall, in consultation with the Administrator,
give the highest practicable priority in the allocation of
available manpower and other available resources to the
identification and mapping of flood hazard areas and flood-risk
zones, in order to assist the Administrator to meet the
deadline established by this section.
(d) The Administrator shall, not later than September 30,
1984, submit to the Congress a plan for bringing all
communities containing flood-risk zones into full program
status by September 30, 1987.
(e) Review of Flood Maps.--Once during each 5-year period
(the 1st such period beginning on the date of enactment of the
Riegle Community Development and Regulatory Improvement Act of
1994) or more often as the Administrator determines necessary,
the Administrator shall assess the need to revise and update
all floodplain areas and flood risk zones identified,
delineated, or established under this section, based on an
analysis of all natural hazards affecting flood risks.
(f) Updating Flood Maps.--The Administrator shall revise and
update any floodplain areas and flood-risk zones--
(1) upon the determination of the Administrator,
according to the assessment under subsection (e), that
revision and updating are necessary for the areas and
zones; or
(2) upon the request from any State or local
government stating that specific floodplain areas or
flood-risk zones in the State or locality need revision
or updating, if sufficient technical data justifying
the request is submitted and the unit of government
making the request agrees to provide funds in an amount
determined by the Administrator.
Panels of the revised flood insurance rate maps for which no
appeal has been submitted during the 90-day period referred to
in subsection (b) shall be considered final.
(g) Availability of Flood Maps.--To promote compliance with
the requirements of this title, the Administrator shall make
flood insurance rate maps and related information available
free of charge to the Federal entities for lending regulation,
Federal agency lenders, State agencies directly responsible for
coordinating the national flood insurance program, and
appropriate representatives of communities participating in the
national flood insurance program, and at a reasonable cost to
all other persons. Any receipts resulting from this subsection
shall be deposited in the National Flood Insurance Fund,
pursuant to section 1310(b)(6).
(h) Notification of Flood Map Changes.--The Administrator
shall cause notice to be published in the Federal Register (or
shall provide notice by another comparable method) of any
change to flood insurance map panels and any change to flood
insurance map panels issued in the form of a letter of map
amendment or a letter of map revision. Such notice shall be
published or otherwise provided not later than 30 days after
the map change or revision becomes effective. Notice by any
method other than publication in the Federal Register shall
include all pertinent information, provide for regular and
frequent distribution, and be at least as accessible to map
users as notice in the Federal Register. All notices under this
subsection shall include information on how to obtain copies of
the changes or revisions.
(i) Compendia of Flood Map Changes.--Every 6 months, the
Administrator shall publish separately in their entirety within
a compendium, all changes and revisions to flood insurance map
panels and all letters of map amendment and letters of map
revision for which notice was published in the Federal Register
or otherwise provided during the preceding 6 months. The
Administrator shall make such compendia available, free of
charge, to Federal entities for lending regulation, Federal
agency lenders, and States and communities participating in the
national flood insurance program pursuant to section 1310 and
at cost to all other parties. Any receipts resulting from this
subsection shall be deposited in the National Flood Insurance
Fund, pursuant to section 1310(b)(6).
(j) Provision of Information.--In the implementation of
revisions to and updates of flood insurance rate maps, the
Administrator shall share information, to the extent
appropriate, with the Under Secretary of Commerce for Oceans
and Atmosphere and representatives from State coastal zone
management programs.
(k) Appeals of Existing Maps.--
(1) Right to appeal.--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) 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.
(l) Levee-Impacted Areas.--
(1) In general.--Subject to full implementation of
subparagraphs (A)(iii) and (B) of section 100216(b)(1)
of the Biggert-Waters Flood Insurance Reform Act of
2012 (42 U.S.C. 4101b(b)(1)) and notwithstanding any
other provision of law, if a community applies to the
Administrator for the remapping of a levee-impacted
area in which the pertinent levee system fails to meet
the minimum design, operation, and maintenance
standards of the National Flood Insurance Program
required for levee accreditation on a flood insurance
rate map in accordance with the Levee Analysis Mapping
Procedure initiated by the Administrator to replace the
``without levees'' approach to a Flood Insurance Study,
the Administrator shall--
(A) establish flood risk zones for those
levee-impacted areas on such maps, to be known
as ``AL-E zones'', that have an established
elevation for community floodplain management;
and
(B) make flood insurance available to
properties located within those levee-impacted
areas.
(2) Transition.--During the period beginning on the
date of enactment of this subsection and ending on the
date on which the Administrator develops rates for the
various AL-E zones, a structure located in a portion of
a community that is located within a levee-impacted
area described in paragraph (1) shall be eligible for
rates associated with areas of moderate flood hazards.
criteria for land management and use
Sec. 1361. (a) The Administrator is authorized to carry out
studies and investigations, utilizing to the maximum extent
practicable the existing facilities and services of other
Federal departments or agencies, and State and local
governmental agencies, and any other organizations, with
respect to the adequacy of State and local measures in flood-
prone areas as to land management and use, flood control, flood
zoning, and flood damage prevention, and may enter into any
contracts, agreements or other appropriate arrangements to
carry out such authority.
(b) Such studies and investigations shall include, but not be
limited to, laws, regulations or ordinances relating to
encroachments and obstructions on stream channels and
floodways, the orderly development and use of flood plains of
rivers or streams, floodway encroachment lines, and flood plain
zoning, building codes, building permits, and subdivision or
other building restrictions.
(c) On the basis of such studies and investigations, and such
other information as he deems necessary, the Administrator
shall from time to time develop comprehensive critera designed
to encourage, where necessary, the adoption of adequate State
and local measures which, to the maximum extent feasible,
will--
(1) construct the development of land which is
exposed to flood damage where appropriate,
(2) guide the development of proposed construction
away from locations which are threatened by flood
hazards,
(3) assist in reducing damage caused by floods, and
(4) otherwise improve the long-range land management
and use of flood prone areas,
and he shall work closely with and provide any necessary
technical assistance to State, interstate, and local
governmental agencies, to encourage the application of such
criteria and the adoption and enforcement of such measures.
(d) Flood Mitigation Methods for Buildings.--The
Administrator shall establish guidelines for property owners
that--
(1) provide alternative methods of mitigation, other
than building elevation, to reduce flood risk to
residential buildings that cannot be elevated due to
their structural characteristics, including--
(A) types of building materials; [and]
(B) types of floodproofing; [and]
(C) with respect to buildings in dense urban
environments, methods that can be deployed on a
block or neighborhood scale; and
(D) elevation of mechanical or other critical
systems; and
(2) inform property owners about how the
implementation of mitigation methods described in
paragraph (1) may affect risk premium rates for flood
insurance coverage under the National Flood Insurance
Program.
(e) Multiple-loss Properties.--In making determinations
regarding financial assistance under the authorities of this
Act, the Administrator may consider the extent to which a
community is working to remedy problems with addressing
multiple-loss properties.
* * * * * * *
appeals
Sec. 1363. (a) In establishing projected flood elevations and
designating areas having special flood hazards for land use
purposes with respect to any community pursuant to section
1361, the Administrator shall first propose such determinations
and designations by publication for comment [in the Federal
Register], by direct notification to the chief executive
officer of the community, and by publication in a prominent
local newspaper.
(b) The Administrator shall publish notification of flood
elevation determinations and designations of areas having
special flood hazards in a prominent local newspaper at least
twice during the ten-day period following notification to the
local government. [During the ninety-day period following the
second publication, any owner or lessee of real property within
the community who believes his property rights to be adversely
affected by the Administrator's proposed determination may
appeal such determination to the local government.] 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. The sole grounds for
appeal shall be the possession of knowledge or information
indicating that (1) the elevations being proposed by the
Administrator with respect to an identified area having special
flood hazards are scientifically or technically incorrect, or
(2) the designation of an identified special flood hazard area
is scientifically or technically incorrect.
(c) Appeals by private persons shall be made to the chief
executive officer of the community, or to such agency as he
shall publicly designate, and shall set forth the data that
tend to negate or contradict the Administrator's finding in
such form as the chief executive officer may specify. The
community shall review and consolidate all such appeals and
issue a written opinion stating whether the evidence presented
is sufficient to justify an appeal on behalf of such persions
by the community in its own name. Whether or not the community
decides to appeal the Administrator's determination, copies of
individual appeals shall be sent to the Administrator as they
are received by the community, and the community's appeal or a
copy of its decision not to appeal shall be filed with the
Administrator not later than ninety days after the date of the
second newspaper publication of the Administrator's
notification.
(d) In the event the Administrator does not receive an appeal
from the community within the ninety days provided he shall
consolidate and review on their own merits, in accordance with
the procedures set forth in [subsection (e)] subsection (f),
the appeals filed within the community by private persons and
shall make such modifications of his proposed determinations as
may be appropriate, taking into account the written opinion, if
any, issued by the community in not supporting such appeals.
The Administrator's decision shall be in written form, and
copies thereof shall be sent both to the chief executive
officer of the community and to each individual appellant.
(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.
[(e)] (f) Upon appeal by any community, as provided by this
section, the Administrator shall review and take fully into
account any technical or scientific data submitted by the
community that tend to negate or contradict the information
upon which his proposed determination is based. The
Administrator shall resolve such appeal by consultation with
officials of the local government involved, by administrative
hearing, or by submission of the conflicting data to the
Scientific Resolution Panel provided for in section 1363A.
Until the conflict in data is resolved, and the Administrator
makes a final determination on the basis of his findings in the
Federal Register, and so notifies the governing body of the
community, flood insurance previously available within the
community shall continue to be available, and no person shall
be denied the right to purchase such insurance at chargeable
rates. The Administrator shall make his determination within a
reasonable time. 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. The reports and other
information used by the Administrator in making his final
determination shall be made available for public inspection and
shall be admissible in a court of law in the event the
community seeks judicial review as provided by this section.
[(f)] (g) Reimbursement of Certain Expenses.--When, incident
to any appeal under subsection (b) or (c) of this section, the
owner or lessee of real property or the community, as the case
may be, or, in the case of an appeal that is resolved by
submission of conflicting data to the Scientific Resolution
Panel provided for in section 1363A, the community, incurs
expense in connection with the services of surveyors,
engineers, or similar services, 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, which is successful in whole or part, the
Administrator shall reimburse such individual or community to
an extent measured by the ratio of the successful portion of
the appeal as compared to the entire appeal and applying such
ratio to the reasonable value of all such services, but 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 subsection. The Administrator shall promulgate regulations
to carry out this subsection.
[(g)] (h) Except as provided in section 1363A, any appellant
aggrieved by any final determination of the Administrator upon
administrative appeal, as provided by this section, may appeal
such determination to the United States district court for the
district within which the community is located not more than
sixty days after receipt of notice of such determination. The
scope of review by the court shall be as provided by chapter 7
of title 5, United States Code. During the pendency of any such
litigation, all final determinations of the Administrator shall
be effective for the purposes of this title unless stayed by
the court for good cause shown.
* * * * * * *
mitigation assistance
Sec. 1366. (a) Authority.--The Administrator shall carry out
a program to provide financial assistance to States and
communities, using amounts made available from the National
Flood Mitigation Fund under section 1367, for planning and
carrying out activities designed to reduce the risk of flood
damage to structures covered under contracts for flood
insurance under this title. Such financial assistance shall be
made available--
(1) to States and communities in the form of grants
under this section for carrying out mitigation
activities;
(2) to States and communities in the form of grants
under this section for carrying out mitigation
activities that reduce flood damage to severe
[repetitive loss structures] repetitive-loss
properties; and
(3) to property owners in the form of direct grants
under this section for carrying out mitigation
activities that reduce flood damage to individual
structures for which 2 or more claim payments for
losses have been made under flood insurance coverage
under this title if the Administrator, after
consultation with the State and community, determines
that neither the State nor community in which such a
structure is located has the capacity to manage such
grants.
(b) Eligibility for Mitigation Assistance.--To be eligible to
receive financial assistance under this section for mitigation
activities, a State or community shall develop, and have
approved by the Administrator, a flood risk mitigation plan (in
this section referred to as a ``mitigation plan''), that
describes the mitigation activities to be carried out with
assistance provided under this section, is consistent with the
criteria established by the Administrator under section 1361,
provides for reduction of flood losses to structures for which
contracts for flood insurance are available under this title,
and may be included in a multihazard mitigation plan. The
mitigation plan shall be consistent with a comprehensive
strategy for mitigation activities for the area affected by the
mitigation plan, that has been adopted by the State or
community following a public hearing.
(c) Eligible Mitigation Activities.--
(1) Requirement of consistency with approved
mitigation plan.--Amounts provided under this section
may be used only for mitigation activities that are
consistent with mitigation plans that are approved by
the Administrator and identified under paragraph (4).
The Administrator shall provide assistance under this
section to the extent amounts are available in the
National Flood Mitigation Fund pursuant to
appropriation Acts, subject only to the absence of
approvable mitigation plans.
(2) Requirements of technical feasibility, cost
effectiveness, and interest of national flood insurance
fund.--
(A) In general.--The Administrator may
approve only mitigation activities that the
Administrator determines--
(i) are technically feasible and
cost-effective; or
(ii) will eliminate future payments
from the National Flood Insurance Fund
for severe [repetitive loss structures]
multiple-loss properties through an
acquisition or relocation activity.
(B) Considerations.--In making a
determination under subparagraph (A), the
Administrator shall take into consideration
recognized ancillary benefits.
(3) Eligible activities.--Eligible activities under a
mitigation plan may include--
(A) demolition or relocation of any structure
located on land that is along the shore of a
lake or other body of water and is certified by
an appropriate State or local land use
authority to be subject to imminent collapse or
subsidence as a result of erosion or flooding;
(B) elevation, relocation, demolition, or
floodproofing of structures (including public
structures) located in areas having special
flood hazards or other areas of flood risk;
(C) acquisition by States and communities of
properties (including public properties)
located in areas having special flood hazards
or other areas of flood risk and properties
substantially damaged by flood, for public use,
as the Administrator determines is consistent
with sound land management and use in such
area;
(D) elevation, relocation, or floodproofing
of utilities (including equipment that serves
structures);
(E) minor physical mitigation efforts that do
not duplicate the flood prevention activities
of other Federal agencies and that lessen the
frequency or severity of flooding and decrease
predicted flood damages, which shall not
include major flood control projects such as
dikes, levees, seawalls, groins, and jetties
unless the Administrator specifically
determines in approving a mitigation plan that
such activities are the most cost-effective
mitigation activities for the National Flood
Mitigation Fund;
(F) the development or update of mitigation
plans by a State or community which meet the
planning criteria established by the
Administrator, except that the amount from
grants under this section that may be used
under this subparagraph may not exceed $50,000
for any mitigation plan of a State or $25,000
for any mitigation plan of a community;
(G) the provision of technical assistance by
States to communities and individuals to
conduct eligible mitigation activities;
(H) other activities that the Administrator
considers appropriate and specifies in
regulation;
(I) other mitigation activities not described
in subparagraphs (A) through (G) or the
regulations issued under subparagraph (H), that
are described in the mitigation plan of a State
or community; and
(J) without regard to the requirements under
paragraphs (1) and (2) of subsection (d), and
if the State applied for and was awarded at
least $1,000,000 in grants available under this
section in the prior fiscal year, technical
assistance to communities to identify eligible
activities, to develop grant applications, and
to implement grants awarded under this section,
not to exceed $50,000 to any 1 State in any
fiscal year.
(4) Eligibility of demolition and rebuilding of
properties.--The Administrator shall consider as an
eligible activity the demolition and rebuilding of
properties to at least base flood elevation or greater,
if required by the Administrator or if required by any
State regulation or local ordinance, and in accordance
with criteria established by the Administrator.
(d) Matching Requirement.--The Administrator may provide
grants for eligible mitigation activities as follows:
(1) Severe [repetitive loss structures] repetitive-
loss and extreme repetitive loss properties.--In the
case of mitigation activities to severe [repetitive
loss structures] repetitive-loss properties or extreme
repetitive-loss properties, in an amount up to--
(A) 100 percent of all eligible costs, if the
activities are approved under subsection
(c)(2)(A)(i); or
(A) the expected savings to the National
Flood Insurance Fund from expected avoided
damages through acquisition or relocation
activities, if the activities are approved
under subsection (c)(2)(A)(ii).
(2) [Repetitive loss structures] Repetitive-loss
properties.--In the case of mitigation activities to
[repetitive loss structures] repetitive-loss
properties, in an amount up to 90 percent of all
eligible costs.
(3) Other mitigation activities.--In the case of all
other mitigation activities, in an amount up to 75
percent of all eligible costs
(e) Recapture.--
(1) Noncompliance with plan.--If the Administrator
determines that a State or community that has received
mitigation assistance under this section has not
carried out the mitigation activities as set forth in
the mitigation plan, the Administrator shall recapture
any unexpended amounts and deposit the amounts in the
National Flood Mitigation Fund under section 1367.
(2) Failure to provide matching funds.--If the
Administrator determines that a State or community that
has received mitigation assistance under this section
has not provided matching funds in the amount required
under subsection (d), the Administrator shall recapture
any unexpended amounts of mitigation assistance
exceeding the amount of such matching funds actually
provided and deposit the amounts in the National Flood
Mitigation Fund under section 1367.
(f) Reports.--Not later than 1 year after the date of
enactment of the Biggert-Waters Flood Insurance Reform Act of
2012 and biennially thereafter, the Administrator shall submit
a report to the Congress describing the status of mitigation
activities carried out with assistance provided under this
section.
(g) Failure To Make Grant Award Within 5 Years.--For any
application for a grant under this section for which the
Administrator fails to make a grant award within 5 years of the
date of the application, the grant application shall be
considered to be denied and any funding amounts allocated for
such grant applications shall remain in the National Flood
Mitigation Fund under section 1367 of this title and shall be
made available for grants under this section.
(h) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Community.--The term ``community'' means--
(A) a political subdivision that--
(i) has zoning and building code
jurisdiction over a particular area
having special flood hazards; and
(ii) is participating in the national
flood insurance program; or
(B) a political subdivision of a State, or
other authority, that is designated by
political subdivisions, all of which meet the
requirements of subparagraph (A), to administer
grants for mitigation activities for such
political subdivisions.
[(2) Repetitive loss structure.--The term
``repetitive loss structure'' has the meaning given
such term in section 1370.
[(3) Severe repetitive loss structure.--The term
``severe repetitive loss structure'' means a structure
that--
[(A) is covered under a contract for flood
insurance made available under this title; and
[(B) has incurred flood-related damage--
[(i) for which 4 or more separate
claims payments have been made under
flood insurance coverage under this
title, with the amount of each such
claim exceeding $5,000, and with the
cumulative amount of such claims
payments exceeding $20,000; or
[(ii) for which at least 2 separate
claims payments have been made under
such coverage, with the cumulative
amount of such claims exceeding the
value of the insured structure.]
* * * * * * *
CHAPTER IV--APPROPRIATIONS AND MISCELLANEOUS PROVISIONS
definitions
Sec. 1370. (a) As used in this title--
(1) the term ``flood'' shall have such meaning as may
be prescribed in regulations of the Administrator, and
may include inundation from rising waters or from the
overflow of streams, rivers, or other bodies of water,
or from tidal surges, abnormally high tidal water,
tidal waves, tsunamis, hurricanes, or other severe
storms or deluge;
(2) the terms ``United States'' (when used in a
geographic sense) and ``State'' includes the several
States, the District of Columbia, the territories and
possessions, the Commonwealth of Puerto Rico, and the
Trust Territory of the Pacific Islands;
(3) the terms ``insurance company'', ``other
insurer'' and ``insurance agent or broker'' include any
organization or person that is authorized to engage in
the business of insurance under the laws of any State,
subject to the reporting requirements of the Securities
Exchange Act of 1934 pursuant to section 13(a) or 15(d)
of such Act (15 U.S.C. 78m(a) and 78o(d)), or
authorized by the Administrator to assume reinsurance
on risks insured by the flood insurance program;
(4) the term ``insurance adjustment organization''
includes any organizations and persons engaged in the
business of adjusting loss claims arising under
insurance policies issued by any insurance company or
other insurer;
(5) the term ``person'' includes any individual or
group of individuals, corporation, partnership,
association, or any other organized group of persons,
including State and local governments and agencies
thereof;
(6) the term ``Administrator'' means the
Administrator of the Federal Emergency Management
Agency;
[(7) the term ``repetitive loss structure'' means a
structure covered by a contract for flood insurance
that--
[(A) has incurred flood-related damage on 2
occasions, in which the cost of repair, on the
average, equaled or exceeded 25 percent of the
value of the structure at the time of each such
flood event; and
[(B) at the time of the second incidence of
flood-related damage, the contract for flood
insurance contains increased cost of compliance
coverage.]
(7) 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.
(8) Repetitive-loss property.--The term ``repetitive-
loss property'' means a structure that has incurred
flood-related damage for which 2 or more separate
claims payments of any amount in excess of the loss-
deductible for damage to the covered structure have
been made under flood insurance coverage under this
title.
(9) Severe repetitive-loss property.--The term
``severe repetitive-loss property'' means a structure
that has incurred flood-related damage for which--
(A) 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
(B) 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.
(10) Extreme repetitive-loss property.--The term
``extreme repetitive-loss property'' means a structure
that has incurred flood-related 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.
[(8)] (11) the term ``Federal agency lender'' means a
Federal agency that makes direct loans secured by
improved real estate or a mobile home, to the extent
such agency acts in such capacity;
[(9)] (12) the term ``Federal entity for lending
regulation'' means the Board of Governors of the
Federal Reserve System, the Federal Deposit Insurance
Corporation, the Comptroller of the Currency, the
National Credit Union Administration, and the Farm
Credit Administration, and with respect to a particular
regulated lending institution means the entity
primarily responsible for the supervision of the
institution;
[(10)] (13) the term ``improved real estate'' means
real estate upon which a building is located;
[(11)] (14) the term ``lender'' means a regulated
lending institution or Federal agency lender;
[(12)] (15) the term ``natural and beneficial
floodplain functions'' means--
(A) the functions associated with the natural
or relatively undisturbed floodplain that (i)
moderate flooding, retain flood waters, reduce
erosion and sedimentation, and mitigate the
effect of waves and storm surge from storms,
and (ii) reduce flood related damage; and
(B) ancillary beneficial functions, including
maintenance of water quality and recharge of
ground water, that reduce flood related damage;
[(13)] (16) the term ``regulated lending
institution'' means any bank, savings and loan
association, credit union, farm credit bank, Federal
land bank association, production credit association,
or similar institution subject to the supervision of a
Federal entity for lending regulation;
[(14)] (17) the term ``servicer'' means the person
responsible for receiving any scheduled periodic
payments from a borrower pursuant to the terms of a
loan, including amounts for taxes, insurance premiums,
and other charges with respect to the property securing
the loan, and making the payments of principal and
interest and such other payments with respect to the
amounts received from the borrower as may be required
pursuant to the terms of the loan; and
[(15)] (18) the term ``substantially damaged
structure'' means a structure covered by a contract for
flood insurance that has incurred damage for which the
cost of repair exceeds an amount specified in any
regulation promulgated by the Administrator, or by a
community ordinance, whichever is lower.
(b) The term ``flood'' shall also include inundation from
mudslides which are proximately caused by accumulations of
water on or under the ground; and all of the provisions of this
title shall apply with respect to such mudslides in the same
manner and to the same extent as with respect to floods
described in subsection (a)(1), subject to and in accordance
with such regulations, modifying the provisions of this title
(including the provisions relating to land management and use)
to the extent necessary to insure that they can be effectively
so applied, as the Administrator may prescribe to achieve (with
respect to such mudslides) the purposes of this title and the
objectives of the program.
(c) The term ``flood'' shall also include the collapse or
subsidence of land along the shore of a lake or other body of
water as a result of erosion or undermining caused by waves or
currents of water exceeding anticipated cyclical levels, and
all of the provisions of this title shall apply with respect to
such collapse or subsidence in the same manner and to the same
extent as with respect to floods described in subsection
(a)(1), subject to and in accordance with such regulations,
modifying the provisions of this title (including the
provisions relating to land management and use) to the extent
necessary to insure that they can be effectively so applied, as
the Administrator may prescribe to achieve (with respect to
such collapse or subsidence) the purposes of this title and the
objectives of the program.
* * * * * * *
----------
FLOOD DISASTER PROTECTION ACT OF 1973
* * * * * * *
TITLE I--EXPANSION OF NATIONAL FLOOD INSURANCE PROGRAM
* * * * * * *
flood insurance purchase and compliance requirements and escrow
accounts
Sec. 102. (a) 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,
unless the building or mobile home and any personal property to
which such financial assistance relates is covered by flood
insurance in an amount at least equal to its development or
project cost (less estimated land cost) or to the maximum limit
of coverage made available with respect to the particular type
of property under the National Flood Insurance Act of 1968,
whichever is less: Provided, 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.
(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)
shall by regulation direct regulated lending
institutions--
(A) 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,
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
an amount at least equal to the outstanding
principal balance of the loan or the maximum
limit of coverage made available under the Act
with respect to the particular type of
property, whichever is less; and
(B) to accept private flood insurance as
satisfaction of the flood insurance coverage
requirement under subparagraph (A) if the
coverage provided by such private flood
insurance meets the requirements for coverage
under such subparagraph.
(2) Federal agency lenders.--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, 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 the amount
provided in paragraph (1)(A). Each Federal agency
lender shall accept private flood insurance as
satisfaction of the flood insurance coverage
requirement under the preceding sentence if the flood
insurance coverage provided by such private flood
insurance meets the requirements for coverage under
such sentence. Each Federal agency lender shall 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)(A).
(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, and
(B) purchased 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)(A). The Federal National Mortgage Association and
the Federal Home Loan Mortgage Corporation shall accept
private flood insurance as satisfaction of the flood
insurance coverage requirement under paragraph (1)(A)
if the flood insurance coverage provided by such
private flood insurance meets the requirements for
coverage under such paragraph and any requirements
established by the Federal National Mortgage
Association or the Federal Home Loan Mortgage
Corporation, respectively, relating to the financial
solvency, strength, or claims-paying ability of private
insurance companies from which the Federal National
Mortgage Association or the Federal Home Loan Mortgage
Corporation will accept private flood 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.
(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. 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, 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.--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 solvency,
strength, or claims-paying ability of private insurance
companies from which the entity or agency will accept
private flood insurance.
(6) Notice.--
(A) In general.--Each lender shall disclose
to a borrower that is subject to this
subsection that--
(i) flood insurance is available from
private insurance companies that issue
standard flood insurance policies on
behalf of the national flood insurance
program or directly from the national
flood insurance program;
(ii) flood insurance that provides
the same level of coverage as a
standard flood insurance policy under
the national flood insurance program
may be available from a private
insurance company that issues policies
on behalf of the company; and
(iii) the borrower is encouraged to
compare the flood insurance coverage,
deductibles, exclusions, conditions and
premiums associated with flood
insurance policies issued on behalf of
the national flood insurance program
and policies issued on behalf of
private insurance companies and to
direct inquiries regarding the
availability, cost, and comparisons of
flood insurance coverage to an
insurance agent.
(B) Rule of construction.--Nothing in this
paragraph shall be construed as affecting or
otherwise limiting the authority of a Federal
entity for lending regulation to approve any
disclosure made by a regulated lending
institution for purposes of complying with
subparagraph (A).
(7) Private flood insurance defined.--In this
subsection, the term ``private flood insurance'' means
an insurance policy that--
(A) is issued by an insurance company that
is--
(i) licensed, admitted, or otherwise
approved to engage in the business of
insurance in the State or jurisdiction
in which the insured building is
located, by the insurance regulator of
that State or jurisdiction; or
(ii) in the case of a policy of
difference in conditions, multiple
peril, all risk, or other blanket
coverage insuring nonresidential
commercial property, is recognized, or
not disapproved, as a surplus lines
insurer by the insurance regulator of
the State or jurisdiction where the
property to be insured is located;
(B) provides flood insurance coverage which
is at least as broad as the coverage provided
under a standard flood insurance policy under
the national flood insurance program, including
when considering deductibles, exclusions, and
conditions offered by the insurer;
(C) includes--
(i) a requirement for the insurer to
give 45 days' written notice of
cancellation or non-renewal of flood
insurance coverage to--
(I) the insured; and
(II) the regulated lending
institution or Federal agency
lender;
(ii) information about the
availability of flood insurance
coverage under the national flood
insurance program;
(iii) a mortgage interest clause
similar to the clause contained in a
standard flood insurance policy under
the national flood insurance program;
and
(iv) a provision requiring an insured
to file suit not later than 1 year
after date of a written denial of all
or part of a claim under the policy;
and
(D) contains cancellation provisions that are
as restrictive as the provisions contained in a
standard flood insurance policy under the
national flood insurance program.
(c) Exceptions to Purchase Requirements.--
(1) State-owned property.--Notwithstanding the other
provisions of this section, flood insurance shall not
be required on any State-owned property that is covered
under an adequate State policy of self-insurance
satisfactory to the Administrator. The Administrator
shall publish and periodically revise the list of
States to which this subsection applies.
(2) Small loans.--Notwithstanding any other provision
of this section, subsections (a) and (b) shall not
apply to any loan having--
(A) an original outstanding principal balance
of [$5,000] $25,000 or less; and
(B) a repayment term of 1 year or less.
(3) Detached structures.--Notwithstanding any other
provision of this section, flood insurance shall not be
required, in the case of any residential property, for
any structure that is a part of such property but is
detached from the primary residential structure of such
property and does not serve as a residence.
(d) Escrow of Flood Insurance Payments.--
(1) Regulated lending institutions.--
(A) Federal entities responsible for lending
regulations.--Each Federal entity for lending
regulation (after consultation and coordination
with the Federal Financial Institutions
Examination Council) shall, by regulation,
direct that all premiums and fees for flood
insurance under the National Flood Insurance
Act of 1968, for residential improved real
estate or a mobile home, shall be paid to the
regulated lending institution or servicer for
any loan secured by the residential improved
real estate or mobile home, with the same
frequency as payments on the loan are made, for
the duration of the loan. Except as provided in
subparagraph (B), upon receipt of any premiums
or fees, the regulated lending institution or
servicer shall deposit such premiums and fees
in an escrow account on behalf of the borrower.
Upon receipt of a notice from the Administrator
or the provider of the flood insurance that
insurance premiums are due, the premiums
deposited in the escrow account shall be paid
to the provider of the flood insurance.
(B) Limitation.--Except as may be required
under applicable State law, a Federal entity
for lending regulation may not direct or
require a regulated lending institution to
deposit premiums or fees for flood insurance
under the National Flood Insurance Act of 1968
in an escrow account on behalf of a borrower
under subparagraph (A)--
(i) if--
(I) the regulated lending
institution has total assets of
less than $1,000,000,000; and
(II) on or before the date of
enactment of the Biggert-Waters
Flood Insurance Reform Act of
2012, the regulated lending
institution--
(aa) in the case of a
loan secured by
residential improved
real estate or a mobile
home, was not required
under Federal or State
law to deposit taxes,
insurance premiums,
fees, or any other
charges in an escrow
account for the entire
term of the loan; and
(bb) did not have a
policy of consistently
and uniformly requiring
the deposit of taxes,
insurance premiums,
fees, or any other
charges in an escrow
account for loans
secured by residential
improved real estate or
a mobile home; or
(ii) in the case of a loan that--
(I) is in a junior or
subordinate position to a
senior lien secured by the same
residential improved real
estate or mobile home for which
flood insurance is being
provided at the time of the
origination of the loan;
(II) is secured by
residential improved real
estate or a mobile home that is
part of a condominium,
cooperative, or other project
development, if the residential
improved real estate or mobile
home is covered by a flood
insurance policy that--
(aa) meets the
requirements that the
regulated lending
institution is required
to enforce under
subsection (b)(1);
(bb) is provided by
the condominium
association,
cooperative, homeowners
association, or other
applicable group; and
(cc) the premium for
which is paid by the
condominium
association,
cooperative, homeowners
association, or other
applicable group as a
common expense;
(III) is secured by
residential improved real
estate or a mobile home that is
used as collateral for a
business purpose;
(IV) is a home equity line of
credit;
(V) is a nonperforming loan;
or
(VI) has a term of not longer
than 12 months.
(2) Federal agency lenders.--Each Federal agency
lender shall by regulation require and provide for
escrow and payment of any flood insurance premiums and
fees relating to residential improved real estate and
mobile homes securing loans made by the Federal agency
lender under the circumstances and in the manner
provided under paragraph (1). Any regulations issued
under this paragraph shall be consistent with and
substantially identical to the regulations issued under
paragraph (1).
(3) Applicability of respa.--Escrow accounts
established pursuant to this subsection shall be
subject to the provisions of section 10 of the Real
Estate Settlement Procedures Act of 1974.
(4) Definition.--For purposes of this subsection, the
term ``residential improved real estate'' means
improved real estate for which the improvement is a
residential building.
(5) Applicability.--This subsection 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.
(e) Placement of Flood Insurance by Lender.--
(1) Notification to borrower of lack of coverage.--
If, at the time of origination or at any time during
the term of a loan secured by improved real estate or
by a mobile home located in an area that has been
identified by the Administrator (at the time of the
origination of the loan or at any time during the term
of the loan) as an area having special flood hazards
and in which flood insurance is available under the
National Flood Insurance Act of 1968, the lender or
servicer for the loan determines that the building or
mobile home and any personal property securing the loan
is not covered by flood insurance or is covered by such
insurance in an amount less than the amount required
for the property pursuant to paragraph (1), (2), or (3)
of subsection (b), the lender or servicer shall notify
the borrower under the loan that the borrower should
obtain, at the borrower's expense, an amount of flood
insurance for the building or mobile home and such
personal property that is not less than the amount
under subsection (b)(1), for the term of the loan.
(2) Purchase of coverage on behalf of borrower.--If
the borrower fails to purchase such flood insurance
within 45 days after notification under paragraph (1),
the lender or servicer for the loan shall purchase the
insurance on behalf of the borrower and may charge the
borrower for the cost of premiums and fees incurred by
the lender or servicer for the loan in purchasing the
insurance, including premiums or fees incurred for
coverage beginning on the date on which flood insurance
coverage lapsed or did not provide a sufficient
coverage amount.
(3) Termination of force-placed insurance.--Within 30
days of receipt by the lender or servicer of a
confirmation of a borrower's existing flood insurance
coverage, the lender or servicer shall--
(A) terminate any insurance purchased by the
lender or servicer under paragraph (2); and
(B) refund to the borrower all premiums paid
by the borrower for any insurance purchased by
the lender or servicer under paragraph (2)
during any period during which the borrower's
flood insurance coverage and the insurance
coverage purchased by the lender or servicer
were each in effect, and any related fees
charged to the borrower with respect to the
insurance purchased by the lender or servicer
during such period.
(4) Sufficiency of demonstration.--For purposes of
confirming a borrower's existing flood insurance
coverage, a lender or servicer for a loan shall accept
from the borrower an insurance policy declarations page
that includes the existing flood insurance policy
number and the identity of, and contact information
for, the insurance company or agent.
(5) Review of determination regarding required
purchase.--
(A) In general.--The borrower and lender for
a loan secured by improved real estate or a
mobile home may jointly request the
Administrator to review a determination of
whether the building or mobile home is located
in an area having special flood hazards. Such
request shall be supported by technical
information relating to the improved real
estate or mobile home. Not later than 45 days
after the Administrator receives the request,
the Administrator shall review the
determination and provide to the borrower and
the lender with a letter stating whether or not
the building or mobile home is in an area
having special flood hazards. The determination
of the Administrator shall be final.
(B) Effect of determination.--Any person to
whom a borrower provides a letter issued by the
Administrator pursuant to subparagraph (A),
stating that the building or mobile home
securing the loan of the borrower is not in an
area having special flood hazards, shall have
no obligation under this title to require the
purchase of flood insurance for such building
or mobile home during the period determined by
the Administratorwhich shall be specified in
the letter and shall begin on the date on which
such letter is provided.
(C) Effect of failure to respond.--If a
request under subparagraph (A) is made in
connection with the origination of a loan and
the Administrator fails to provide a letter
under subparagraph (A) before the later of (i)
the expiration of the 45-day period under such
subparagraph, or (ii) the closing of the loan,
no person shall have an obligation under this
title to require the purchase of flood
insurance for the building or mobile home
securing the loan until such letter is
provided.
(6) Applicability.--This subsection shall apply to
all loans outstanding on or after the date of enactment
of the Riegle Community Development and Regulatory
Improvement Act of 1994.
(f) Civil Monetary Penalties for Failure To Require Flood
Insurance or Notify.--
(1) Civil monetary penalties against regulated
lenders.--Any regulated lending institution that is
found to have a pattern or practice of committing
violations under paragraph (2) shall be assessed a
civil penalty by the appropriate Federal entity for
lending regulation in the amount provided under
paragraph (5).
(2) Lender violations.--The violations referred to in
paragraph (1) shall include--
(A) making, increasing, extending, or
renewing loans in violation of--
(i) the regulations issued pursuant
to subsection (b) of this section;
(ii) the escrow requirements under
subsection (d) of this section; or
(iii) the notice requirements under
section 1364 of the National Flood
Insurance Act of 1968; or
(B) failure to provide notice or purchase
flood insurance coverage in violation of
subsection (e) of this section.
(3) Civil monetary penalties against gse's.--
(A) In general.--If the Federal National
Mortgage Association or the Federal Home Loan
Mortgage Corporation is found by the Director
of the Federal Housing Finance Agency to have a
pattern or practice of purchasing loans in
violation of the procedures established
pursuant to subsection (b)(3), the Director of
such Office shall assess a civil penalty
against such enterprise in the amount provided
under paragraph (5) of this subsection.
(B) Definition.--For purposes of this
subsection, the term ``enterprise'' means the
Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation.
(4) Notice and hearing.--A penalty under this
subsection may be issued only after notice and an
opportunity for a hearing on the record.
(5) Amount.--A civil monetary penalty under this
subsection may not exceed $2,000 for each violation
under paragraph (2) or paragraph (3).
(6) Lender compliance.--Notwithstanding any State or
local law, for purposes of this subsection, any
regulated lending institution that purchases flood
insurance or renews a contract for flood insurance on
behalf of or as an agent of a borrower of a loan for
which flood insurance is required shall be considered
to have complied with the regulations issued under
subsection (b).
(7) Effect of transfer on liability.--Any sale or
other transfer of a loan by a regulated lending
institution that has committed a violation under
paragraph (1), that occurs subsequent to the violation,
shall not affect the liability of the transferring
lender with respect to any penalty under this
subsection. A lender shall not be liable for any
violations relating to a loan committed by another
regulated lending institution that previously held the
loan.
(8) Deposit of penalties.--Any penalties collected
under this subsection shall be paid into the National
Flood Mitigation Fund under section 1367 of the
National Flood Insurance Act of 1968.
(9) Additional penalties.--Any penalty under this
subsection shall be in addition to any civil remedy or
criminal penalty otherwise available.
(10) Statute of limitations.--No penalty may be
imposed under this subsection after the expiration of
the 4-year period beginning on the date of the
occurrence of the violation for which the penalty is
authorized under this subsection.
(g) Other Actions To Remedy Pattern of Noncompliance.--
(1) Authority of federal entities for lending
regulation.--A Federal entity for lending regulation
may require a regulated lending institution to take
such remedial actions as are necessary to ensure that
the regulated lending institution complies with the
requirements of the national flood insurance program if
the Federal agency for lending regulation makes a
determination under paragraph (2) regarding the
regulated lending institution.
(2) Determination of violations.--A determination
under this paragraph shall be a finding that--
(A) the regulated lending institution has
engaged in a pattern and practice of
noncompliance in violation of the regulations
issued pursuant to subsection (b), (d), or (e)
or the notice requirements under section 1364
of the National Flood Insurance Act of 1968;
and
(B) the regulated lending institution has not
demonstrated measurable improvement in
compliance despite the assessment of civil
monetary penalties under subsection (f).
(h) Fee for Determining Location.--Notwithstanding any other
Federal or State law, any person who makes a loan secured by
improved real estate or a mobile home or any servicer for such
a loan may charge a reasonable fee for the costs of determining
whether the building or mobile home securing the loan is
located in an area having special flood hazards, but only in
accordance with the following requirements:
(1) Borrower fee.--The borrower under such a loan may
be charged the fee, but only if the determination--
(A) is made pursuant to the making,
increasing, extending, or renewing of the loan
that is initiated by the borrower;
(B) is made pursuant to a revision or
updating under section 1360(f) of the
floodplain areas and flood-risk zones or
publication of a notice or compendia under
subsection (h) or (i) of section 1360 that
affects the area in which the improved real
estate or mobile home securing the loan is
located or that, in the determination of the
Administrator, may reasonably be considered to
require a determination under this subsection;
or
(C) results in the purchase of flood
insurance coverage pursuant to the requirement
under subsection (e)(2).
(2) Purchaser or transferee fee.--The purchaser or
transferee of such a loan may be charged the fee in the
case of sale or transfer of the loan.
* * * * * * *
----------
BIGGERT-WATERS FLOOD INSURANCE REFORM ACT OF 2012
* * * * * * *
DIVISION F--MISCELLANEOUS
* * * * * * *
TITLE II--FLOOD INSURANCE
Subtitle A--Flood Insurance Reform and Modernization
* * * * * * *
SEC. 100215. TECHNICAL MAPPING ADVISORY COUNCIL.
(a) Establishment.--There is established a council to be
known as the Technical Mapping Advisory Council (in this
section referred to as the ``Council'').
(b) Membership.--
(1) In general.--The Council shall consist of--
(A) the Director of the United States
Geological Survey;
[(A)] (B) the Administrator (or the designee
thereof);
[(B)] (C) the Secretary of the Interior (or
the designee thereof);
[(C)] (D) the Secretary of Agriculture (or
the designee thereof);
[(D)] (E) the Under Secretary of Commerce for
Oceans and Atmosphere (or the designee
thereof); and
[(E) 16] (F) 17 additional members appointed
by the Administrator or the designee of the
Administrator, who shall be--
(i) a member of a recognized
professional surveying association or
organization;
(ii) a member of a recognized
professional mapping association or
organization;
(iii) a member of a recognized
professional engineering association or
organization;
(iv) a member of a recognized
professional association or
organization representing flood hazard
determination firms;
(v) a representative of the United
States Geological Survey;
(vi) a representative of a recognized
professional association or
organization representing State
geographic information;
(vii) a representative of State
national flood insurance coordination
offices;
(viii) a representative of the Corps
of Engineers;
(ix) a member of a recognized
regional flood and storm water
management organization;
(x) 2 representatives of different
State government agencies that have
entered into cooperating technical
partnerships with the Administrator and
have demonstrated the capability to
produce flood insurance rate maps;
(xi) 2 representatives of different
local government agencies that have
entered into cooperating technical
partnerships with the Administrator and
have demonstrated the capability to
produce flood insurance maps;
(xii) a member of a recognized
floodplain management association or
organization;
(xiii) a member of a recognized risk
management association or organization;
[and]
(xiv) a State mitigation officer[.];
and
(xv) a member of a recognized
professional real estate brokerage
association.
(2) Qualifications.--Members of the Council shall be
appointed based on their demonstrated knowledge and
competence regarding surveying, cartography, remote
sensing, geographic information systems, or the
technical aspects of preparing and using flood
insurance rate maps. In appointing members under
paragraph (1)(E), the Administrator shall, to the
maximum extent practicable, ensure that the membership
of the Council has a balance of Federal, State, local,
tribal, and private members, and includes geographic
diversity, including representation from areas with
coastline on the Gulf of Mexico and other States
containing areas identified by the Administrator as at
high risk for flooding or as areas having special flood
hazards.
(c) Duties.--The Council shall--
(1) recommend to the Administrator how to improve in
a cost-effective manner the--
(A) accuracy, general quality, ease of use,
and distribution and dissemination of flood
insurance rate maps and risk data; and
(B) performance metrics and milestones
required to effectively and efficiently map
flood risk areas in the United States;
(2) recommend to the Administrator mapping standards
and guidelines for--
(A) flood insurance rate maps; and
(B) data accuracy, data quality, data
currency, and data eligibility;
(3) recommend to the Administrator how to maintain,
on an ongoing basis, flood insurance rate maps and
flood risk identification;
(4) recommend procedures for delegating mapping
activities to State and local mapping partners;
(5) recommend to the Administrator and other Federal
agencies participating in the Council--
(A) methods for improving interagency and
intergovernmental coordination on flood mapping
and flood risk determination; and
(B) a funding strategy to leverage and
coordinate budgets and expenditures across
Federal agencies; and
(6) submit an annual report to the Administrator that
contains--
(A) a description of the activities of the
Council;
(B) an evaluation of the status and
performance of flood insurance rate maps and
mapping activities to revise and update flood
insurance rate maps, as required under section
100216; and
(C) a summary of recommendations made by the
Council to the Administrator.
(d) Future Conditions Risk Assessment and Modeling Report.--
(1) In general.--The Council shall consult with
scientists and technical experts, other Federal
agencies, States, and local communities to--
(A) develop recommendations on how to--
(i) ensure that flood insurance rate
maps incorporate the best available
climate science to assess flood risks;
and
(ii) ensure that the Federal
Emergency Management Agency uses the
best available methodology to consider
the impact of--
(I) the rise in the sea
level; and
(II) future development on
flood risk; and
(B) not later than 1 year after the date of
enactment of this Act, prepare written
recommendations in a future conditions risk
assessment and modeling report and to submit
such recommendations to the Administrator.
(2) Responsibility of the administrator.--The
Administrator, as part of the ongoing program to review
and update National Flood Insurance Program rate maps
under section 100216, shall incorporate any future risk
assessment submitted under paragraph (1)(B) in any such
revision or update.
(e) Chairperson.--The members of the Council shall elect 1
member to serve as the chairperson of the Council (in this
section referred to as the ``Chairperson'').
(f) Coordination.--To ensure that the Council's
recommendations are consistent, to the maximum extent
practicable, with national digital spatial data collection and
management standards, the Chairperson shall consult with the
Chairperson of the Federal Geographic Data Committee
(established pursuant to Office of Management and Budget
Circular A-16).
(g) Compensation.--Members of the Council shall receive no
additional compensation by reason of their service on the
Council.
(h) Meetings and Actions.--
(1) In general.--The Council shall meet not less
frequently than twice each year at the request of the
Chairperson or a majority of its members, and may take
action by a vote of the majority of the members.
(2) Initial meeting.--The Administrator, or a person
designated by the Administrator, shall request and
coordinate the initial meeting of the Council.
(i) Officers.--The Chairperson may appoint officers to assist
in carrying out the duties of the Council under subsection (c).
(j) Staff.--
(1) Staff of fema.--Upon the request of the
Chairperson, the Administrator may detail, on a
nonreimbursable basis, personnel of the Federal
Emergency Management Agency to assist the Council in
carrying out its duties.
(2) Staff of other federal agencies.--Upon request of
the Chairperson, any other Federal agency that is a
member of the Council may detail, on a nonreimbursable
basis, personnel to assist the Council in carrying out
its duties.
(k) Powers.--In carrying out this section, the Council may
hold hearings, receive evidence and assistance, provide
information, and conduct research, as it considers appropriate.
(l) Report to Congress.--The Administrator, on an annual
basis, shall report to the Committee on Banking, Housing, and
Urban Affairs of the Senate, the Committee on Financial
Services of the House of Representatives, and the Office of
Management and Budget on the--
(1) recommendations made by the Council;
(2) actions taken by the Federal Emergency Management
Agency to address such recommendations to improve flood
insurance rate maps and flood risk data; and
(3) any recommendations made by the Council that have
been deferred or not acted upon, together with an
explanatory statement.
SEC. 100216. NATIONAL FLOOD MAPPING PROGRAM.
(a) Reviewing, Updating, and Maintaining Maps.--The
Administrator, in coordination with the Technical Mapping
Advisory Council established under section 100215, shall
establish an ongoing program under which the Administrator
shall review, update, and maintain National Flood Insurance
Program rate maps in accordance with this section.
(b) Mapping.--
(1) In general.--In carrying out the program
established under subsection (a), the Administrator
shall--
(A) identify, review, update, maintain, and
publish National Flood Insurance Program rate
maps with respect to--
(i) all populated areas and areas of
possible population growth located
within the 100-year floodplain;
(ii) all populated areas and areas of
possible population growth located
within the 500-year floodplain;
(iii) areas of residual risk,
including areas that are protected by
levees, dams, and other flood control
structures;
(iv) areas that could be inundated as
a result of the failure of a levee,
dam, or other flood control structure;
(v) areas that are protected by non-
structural flood mitigation features;
[and]
(vi) all areas of the United States;
and
[(vi)] (vii) the level of protection
provided by flood control structures
and by non-structural flood mitigation
features;
(B) as soon as practicable--
(i) modernize the flood mapping
inventory for communities for which the
National Flood Insurance Program rate
maps have not been modernized; and
(ii) in coordination with
communities, utilize the digital
display environment established under
subsection (f)(1)(A) to produce, store,
and disseminate any flood hazard data,
models, and maps generated under clause
(i) while ensuring that the flood
mapping inventory described in that
clause may be printed in order to carry
out--
(I) floodplain management
programs under the National
Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.); and
(II) other purposes of the
National Flood Insurance
Program;
[(B)] (C) establish or update flood-risk zone
data in all such areas, and make estimates with
respect to the rates of probable flood caused
loss for the various flood risk zones for each
such area; [and]
[(C)] (D) use, in identifying, reviewing,
updating, maintaining, or publishing any
National Flood Insurance Program rate map
required under this section or under the
National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.), the most accurate topography
[and] elevation data available[.], and
including the most current and most appropriate
remote sensing or other geospatial mapping
technology;
(E) when appropriate, partner with other
Federal agencies, States, communities, and
private entities in order to meet the
objectives of the program; and
(F) when appropriate, consult and coordinate
with the Secretary of Defense, the Director of
the United States Geological Survey, and the
Administrator of the National Oceanic and
Atmospheric Administration to obtain the most
up-to-date maps and other information of those
agencies, including information relating to
topography, water flow, watershed
characteristics, and any other issues that are
relevant to identifying, reviewing, updating,
maintaining, and publishing National Flood
Insurance Program rate maps.
(2) Mapping elements.--Each map updated under this
section shall--
(A) assess the accuracy of current ground
elevation data used for hydrologic and
hydraulic modeling of flooding sources and
mapping of the flood hazard and wherever
necessary acquire new ground elevation data
utilizing the most up-to-date geospatial
technologies in accordance with guidelines and
specifications of the Federal Emergency
Management Agency; and
(B) develop National Flood Insurance Program
flood data on a watershed basis--
(i) to provide the most technically
effective and efficient studies and
hydrologic and hydraulic modeling; and
(ii) to eliminate, to the maximum
extent possible, discrepancies in base
flood elevations between adjacent
political subdivisions.
(3) Other inclusions.--In updating maps under this
section, the Administrator shall include--
(A) any relevant information on coastal
inundation from--
(i) an applicable inundation map of
the Corps of Engineers; and
(ii) data of the National Oceanic and
Atmospheric Administration relating to
storm surge modeling;
(B) any relevant information of the United
States Geological Survey on stream flows,
watershed characteristics, and topography that
is useful in the identification of flood hazard
areas, as determined by the Administrator;
(C) any relevant information on land
subsidence, coastal erosion areas, changing
lake levels, and other flood-related hazards;
(D) any relevant information or data of the
National Oceanic and Atmospheric Administration
and the United States Geological Survey
relating to the best available science
regarding future changes in sea levels,
precipitation, and intensity of hurricanes;
[and]
(E) any other relevant information as may be
recommended by the Technical Mapping Advisory
Committee[.]; and
(F) cadastral features, including, for each
cadastral feature--
(i) the associated parcel
identification data for such cadastral
feature; and
(ii) to the maximum extent
practicable, using public and private
sector address data, the address of
such cadastral feature.
(c) Standards.--In updating and maintaining maps under this
section, the Administrator shall--
(1) establish standards to--
(A) ensure that maps are adequate for--
(i) flood risk determinations; and
(ii) use by State and local
governments in managing development to
reduce the risk of flooding; and
(B) facilitate identification and use of
consistent methods of data collection and
analysis by the Administrator, in conjunction
with State and local governments, in developing
maps for communities with similar flood risks,
as determined by the Administrator; and
(2) publish maps in a format that is--
(A) digital geospatial data compliant;
(B) compliant with the open publishing and
data exchange standards established by the Open
Geospatial Consortium; [and]
(C) aligned with official data defined by the
National Geodetic Survey[.]; and
(D) spatially accurate in accordance with the
common protocols for geospatial data under
section 757 of the Geospatial Data Act of 2018
(43 U.S.C. 2806).
(d) Communication and Outreach.--
(1) In general.--The Administrator shall--
(A) before commencement of any mapping or map
updating process, notify each community
affected of the model or models that the
Administrator plans to use in such process and
provide an explanation of why such model or
models are appropriate;
(B) provide each community affected a maximum
30-day period beginning upon notification under
subparagraph (A) to consult with the
Administrator regarding the appropriateness,
with respect to such community, of the mapping
model or models to be used; provided that
consultation by a community pursuant to this
subparagraph shall not waive or otherwise
affect any right of the community to appeal any
flood hazard determinations;
(C) upon completion of the first Independent
Data Submission, transmit a copy of such
Submission to the affected community, provide
the affected community a maximum 30-day period
during which the community may provide data to
Administrator that can be used to supplement or
modify the existing data, and incorporate any
data that is consistent with prevailing
engineering principles;
(D) work with States, local communities, and
property owners to identify areas and features
described in subsection (b)(1)(A)(v);
(E) work to enhance communication and
outreach to States, local communities, and
property owners about the effects--
(i) of any potential changes to
National Flood Insurance Program rate
maps that may result from the mapping
program required under this section;
and
(ii) that any such changes may have
on flood insurance purchase
requirements;
(F) engage with local communities to enhance
communication and outreach to the residents of
such communities, including tenants (with
regard to contents insurance), on the matters
described under subparagraph (E); and
(G) not less than 30 days before issuance of
any preliminary map, notify the Senators for
each State affected and each Member of the
House of Representatives for each congressional
district affected by the preliminary map in
writing of--
(i) the estimated schedule for--
(I) community meetings
regarding the preliminary map;
(II) publication of notices
regarding the preliminary map
in local newspapers; and
(III) the commencement of the
appeals process regarding the
map; and
(ii) the estimated number of homes
and businesses that will be affected by
changes contained in the preliminary
map, including how many structures will
be that were not previously located in
an area having special flood hazards
will be located within such an area
under the preliminary map; and
(H) upon the issuance of any proposed map and
any notice of an opportunity to make an appeal
relating to the proposed map, notify the
Senators for each State affected each Member of
the House of Representatives for each
congressional district affected by the proposed
map of any action taken by the Administrator
with respect to the proposed map or an appeal
relating to the proposed map.
(2) Required activities.--The communication and
outreach activities required under paragraph (1) shall
include--
(A) notifying property owners when their
properties become included in, or when they are
excluded from, an area covered by the mandatory
flood insurance purchase requirement under
section 102 of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a);
(B) educating property owners regarding the
flood risk and reduction of this risk in their
community, including the continued flood risks
to areas that are no longer subject to the
flood insurance mandatory purchase requirement;
(C) educating property owners regarding the
benefits and costs of maintaining or acquiring
flood insurance, including, where applicable,
lower-cost preferred risk policies under the
National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.) for such properties and the
contents of such properties;
(D) educating property owners about flood map
revisions and the process available to such
owners to appeal proposed changes in flood
elevations through their community, including
by notifying local radio and television
stations; and
(E) encouraging property owners to maintain
or acquire flood insurance coverage.
(3) Future flood risk.--The Administrator shall, in
consultation with the Technical Mapping Council
established under section 100215, provide financial and
technical assistance to communities to incorporate
future flood hazard conditions as an informational
layer on their Flood Insurance Rate Maps.
(e) Community Remapping Request.--Upon the adoption by the
Administrator of any recommendation by the Technical Mapping
Advisory Council for reviewing, updating, or maintaining
National Flood Insurance Program rate maps in accordance with
this section, a community that believes that its flood
insurance rates in effect prior to adoption would be affected
by the adoption of such recommendation may submit a request for
an update of its rate maps, which may be considered at the
Administrator's sole discretion. The Administrator shall
establish a protocol for the evaluation of such community map
update requests.
(f) Digital Display Environment and Building-specific Flood
Hazard and Risk Information.--
(1) Establishment.--
(A) In general.--Not later than 5 years after
the date of enactment of the National Flood
Insurance Program Reauthorization Act of 2019,
the Administrator, in consultation with the
Technical Mapping Advisory Council, shall
establish, as part of a national structure
inventory, a dynamic, database-derived digital
display environment for flood hazard and risk
data, models, maps, and assessments.
(B) Consultation with states and
communities.--In designing and constructing the
digital display environment under subparagraph
(A), the Administrator shall--
(i) leverage and partner with States
and communities that have successfully
implemented the same approach; and
(ii) consider adopting the techniques
and technologies used by the States and
communities described in clause (i) and
applying those techniques and
technologies nationwide.
(2) Digital display system.--
(A) In general.--In carrying out paragraph
(1), the Administrator, in consultation with
the Technical Mapping Advisory Council, shall
establish a national digital display system
that shall--
(i) be prompted through dynamic
querying of a spatial, relational flood
hazard and risk database;
(ii) as permissible under law, be
made available to the public;
(iii) to the extent feasible, and
where sufficient data is available,
provide information, with respect to
individual structures, regarding--
(I) flood hazard and risk
assessment determinations;
(II) flood insurance; and
(III) flood risk mitigation
efforts;
(iv) be constructed in a manner that
facilitates coordination with digital
display systems that--
(I) have been developed by
State and community partners;
and
(II) the Administrator finds
are acceptable;
(v) include the capability to print
physical copies of maps; and
(vi) where feasible, allow for the
maintenance and storage of elevation
certificates.
(B) Privacy requirements.--The Administrator
may not disseminate the database described in
subparagraph (A)(i), including any data used to
create that database, to the public or to a
private company in a manner that violates
section 552a of title 5, United States Code, or
any regulation implementing that section.
(g) Stream Flow Networks.--
(1) In general.--The Administrator shall coordinate
with the United States Geological Survey for the
sharing of data from stream flow networks critical to
the National Flood Insurance Program, flood risk
mapping, and flood risk assessments, to ensure that--
(A) the stream gage stations in such stream
flow networks are operational and use modern
hardware;
(B) such stream flow networks are
sufficiently densified by adding new stream
gage stations in high-risk areas;
(C) inactive critical stream gage stations in
such stream flow networks are reactivated; and
(D) the speed of the geospatial real-time
data feeds from such stream gage stations is
increased.
(2) Definitions.--In this subsection:
(A) Stream flow network.--The term ``stream
flow network'' means a network of stream flow
gages maintained under the direction of the
United States Geological Survey and its
partners that is used to measure or record the
flow of water down a stream or river, or
through an entire watershed system, and
transmit such information using a geospatial
real-time data feed.
(B) Stream gage station.--The term ``stream
gage station'' means a device installed at the
edge of a river or stream that measures or
records the flow of water down the stream and
additional information such as water height,
water chemistry, and water temperature.
(3) Rule of construction.--The purpose of this
subsection is to require cooperation between the
Federal Emergency Management Agency and United States
Geological Survey and nothing in this subsection may be
construed to require or obligate funding expenditures.
(h) Availability of Data to Public.--The Administrator shall
make available to the public on the website of the Federal
Emergency Management Agency a national geospatial data
repository that--
(1) provides access to the raw data used to include
the cadastral features and parcel identification data
in National Flood Insurance Program rate maps;
(2) to the extent that such data is available, allows
users to view, query, and obtain such data at multiple
levels of detail, including down to the property level;
(3) allows users to view flood risks, flood insurance
zones, and flood elevations;
(4) provides access to flood mapping and related
information such as--
(A) hydrologic and hydraulic models used in
determining flood risk;
(B) structure footprints where available as
part of a national structure inventory;
(C) flood depth grids;
(D) flood risk reports;
(E) flood risk assessments (Hazus analyses);
(F) hazard mitigation plans; and
(G) other flood risk products at the
discretion of the Administrator; and
(5) maintains and disseminates such data in a
consistent manner.
(i) Ensuring Current Data.--Not less frequently than once
every 5 years, the Administrator shall verify that each
National Flood Insurance Program rate map contains data that is
current and credible.
(j) Qualifications-Based Selection Contracting.--
(1) In general.--With respect to a contract awarded
by the Administrator under this Act, or by an entity
receiving a grant under this Act, for program
management, architectural and engineering services, or
surveying and mapping, such a contract shall be awarded
to a contractor selected in accordance with the
procedures described in section 1103 of title 40,
United States Code (or an applicable equivalent State
qualifications-based statute). The Administrator, or
entity, as the case may be, shall require such
contractor, as a condition of such contract, to award
any subcontract for program management, architectural
and engineering services, or surveying and mapping in
accordance with the procedures described in the
previous sentence, or the applicable equivalent State
statute.
(2) Relationship to state law.--Nothing in this
subsection shall supersede any applicable State
licensing law governing professional licensure.
(3) Definitions.--In this subsection:
(A) Architectural and engineering services.--
The term ``architectural and engineering
services'' has the meaning given that term in
section 1102 of title 40, United States Code.
(B) Surveying and mapping.--The term
``surveying and mapping'' includes geospatial
activities associated with measuring, locating,
and preparing maps, charts, or other graphical
or digital presentations depicting natural and
man-made physical features, phenomena, and
legal boundaries of the earth, including the
following:
(i) Topographic Engineering
Surveying, including acquisition of
topographic oriented surveying and
mapping data for design, construction,
master planning, operations, as-built
conditions, precise structure stability
studies using conventional and
electronic instrumentation,
photogrammetric, LiDAR, remote sensing,
inertial, satellite, and other manned
and unmanned survey methods as
applicable.
(ii) Hydrographic Engineering
Surveying, including acquisition of
hydrographic oriented surveying and
mapping data for design, construction,
dredging, master planning, operations,
and as-built conditions using
conventional and electronic
instrumentation, and photogrammetric,
remote sensing, inertial, satellite,
side scan sonar, subbottom profiling,
and other surveying methods, as
applicable.
(iii) Land Surveying, including
property and boundary surveys,
monumentation, marking and posting, and
preparation of tract descriptions,
using conventional, electronic
instrumentation, photogrammetric,
inertial, satellite, and other survey
methods, as applicable.
(iv) Geodetic Surveying, including
first, second, and third order
horizontal and vertical control
surveys, geodetic astronomy, gravity
and magnetic surveys using
conventional, electronic
instrumentation, photogrammetric,
inertial, satellite, and other survey
methods, as applicable.
(v) Cartographic Surveying, including
acquisition of topographic and
hydrographic oriented surveying and
mapping data for construction of maps,
charts, and similar products for
planning, flood analysis, and general
use purposes using conventional and
electronic instrumentation,
photogrammetric, inertial, satellite,
mobile, terrestrial, and other survey
methods, as applicable.
(vi) Mapping, charting, and related
geospatial database development,
including the design, compilation,
digitizing, attributing, scribing,
drafting, printing and dissemination of
printed or digital map, chart, and
related geospatial database products
associated with planning, engineering,
operations, and related real estate
activities using photogrammetric,
geographic information systems, and
other manual and computer assisted
methods, as applicable.
(k) Definitions.--In this section:
(1) Cadastral feature.--The term ``cadastral
feature'' means the geographic elements and features--
(A) that are independent of elevation, such
as roads, structure footprints, and rivers and
lakes;
(B) which are represented on maps to show the
true location and size of the elements in
relationship to each other, as they are seen
from the air; and
(C) that are mapped from LiDAR or aerial
photography by employing basic photogrammetry.
(2) Parcel identification data.--The term ``parcel
identification data'' means the information associated
with a parcel of land, including the geographic
location, unique parcel identifier, boundaries,
structures contained within the parcel, zoning
classification, and owner.
(l) Annual Report.--The Administrator, in coordination with
the Technical Mapping Advisory Council established under
section 100215 of this Act, shall submit to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate
an annual report regarding progress achieved in the mapping
program under this section, including the digital display and
structure-specific information required under subsection (f),
which shall include recommendations to reduce the cost and
improve the implementation of that subsection.
[(f)] (m) Authorization of Appropriations.--There is
authorized to be appropriated to the Administrator to carry out
this section [$400,000,000 for each of fiscal years 2013
through 2017] $500,000,000 for each of fiscal years 2019
through 2023.
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