[Federal Register Volume 60, Number 25 (Tuesday, February 7, 1995)]
[Rules and Regulations]
[Pages 7130-7131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2960]



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FEDERAL EMERGENCY MANAGEMENT AGENCY

44 CFR Part 206

RIN 3067-AC28


Individual and Family Grant Program

AGENCY: Federal Emergency Management Agency (FEMA).

ACTION: Interim final rule.

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SUMMARY: This interim final rule changes flood insurance regulations 
for recipients of Federal disaster assistance from the Individual and 
Family Grant Program.

DATES: This interim final rule is retroactive to September 23, 1994. We 
invite comments on this interim final rule, which should be received by 
April 10, 1995.

ADDRESSES: Please send any comments to the Rules Docket Clerk, Office 
of the General Counsel, Federal Emergency Management Agency, 500 C 
Street SW., room 840, Washington, DC 20472, (facsimile) (202) 646-4536.

FOR FURTHER INFORMATION CONTACT: Laurence W. Zensinger, Response and 
Recovery Directorate, Federal Emergency Management Agency, 500 C Street 
SW., Washington, DC 20472, (202) 646-4262, (facsimile) (202) 646-2730.

SUPPLEMENTARY INFORMATION: On September 23, 1994, the President signed 
Public Law 103-325, the National Flood Insurance Reform Act of 1994 
(NFIRA). Section 582(c) of the NFIRA amends section 102(a) of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a(a)): ``(1) By striking 
`* * * during the anticipated economic or useful life of the project,'; 
and (2) by adding at the end the following: The requirement of 
maintaining flood insurance shall apply during the life of the 
property, regardless of transfer of ownership of such property.''
    FEMA interprets this section as a requirement that all Individual 
and Family Grant (IFG) applicants who receive Federal disaster 
assistance for flood damage to real or personal property, or to both, 
must purchase and maintain flood insurance on the property until the 
time they move to another address. If not, then no IFG grant under 
section 411(a) for real or personal property damage or loss may be 
awarded in any subsequent flood disasters. This maintenance provision 
also applies to individuals who bought, or otherwise had transferred to 
them, any real estate for which the flood insurance maintenance 
requirement was previously (after September 23, 1994) levied.
    The minimum amount of coverage required will be equivalent to the 
maximum IFG grant amount each fiscal year. This amount is $12,600 in 
Fiscal Year 1995 and is adjusted annually based on the Consumer Price 
Index for All Urban Consumers. Renters must be covered for at least 
$12,600 for personal property only, whereas homeowners must be covered 
for at least $7,000 for real property and $5,600 for personal property.
    Section 582 and amendments made by that section apply to disasters 
declared after September 23, 1994, which include the following flood 
disasters:
    1. FEMA-1041-DR, Texas--declared October 18, 1994;
    2. FEMA-1042-DR, Georgia--declared October 19, 1994;
    3. FEMA-1043-DR, Florida--declared November 28, 1994; and
    4. FEMA-1044-DR, California--declared January 10, 1995; and any 
subsequent flood disasters declared by the President.
    FEMA is publishing this interim final rule in order to implement 
the mandate of the National Flood Insurance Reform Act of 1994 that the 
flood insurance purchase requirement be in effect as of the date of 
enactment, September 23, 1994. While the interim final rule is 
retroactively effective from September 23, 1994, FEMA invites your 
written comments on the rule and asks that you send them to the Rules 
Docket Clerk at the ADDRESSES caption set out above.

National Environmental Policy Act

    This rule is categorically excluded from the requirements of 44 CFR 
part 10, Environmental Consideration. No environmental impact 
assessment has been prepared.

Executive Order 12866, Regulatory Planning and Review

    This interim rule is not a significant regulatory action within the 
meaning of Sec. 2(f) of E.O. 12866 of September 30, 1993, 58 FR 51735, 
and has not been reviewed by the Office of Management and Budget. 
Nevertheless, this interim rule adheres to the regulatory principles 
set forth in E.O. 12866.

Paperwork Reduction Act

    This rule does not contain a collection of information requirement 
as described in section 3504(h) of the Paperwork Reduction Act.

Executive Order 12612, Federalism

    This rule involves no policies that have federalism implications 
under E.O. 12612, Federalism, dated October 26, 1987.

Executive Order 12778, Civil Justice Reform

    This rule meets the applicable standards of section 2(b)(2) of E.O. 
12778.

List of Subjects in 44 CFR Part 206

    Administrative practice and procedure, Disaster assistance, Grant 
programs--housing and community development, Insurance. Accordingly, 44 
CFR part 206 is amended as follows:

PART 206--[AMENDED]

Subpart E--Individual and Family Grant Programs

    1. The authority citation for part 206 continues to read as 
follows:

    Authority: The Robert T. Stafford Disaster Relief and Emergency 
Assistance Act, 42 U.S.C. 5121 et seq.; Reorganization Plan No. 3 of 
1978, 5 U.S.C. App. 1; E.O. 12148, 3 CFR, 1979 Comp., p. 412; and 
E.O. 12673, 3 CFR, 1989 Comp., p. 214.

    2. Section 206.131(d)(1)(iii), paragraphs (C)(1) and (D), is 
revised to read as follows:


Sec. 206.131  Individual and Family Grant Programs.

* * * * *
    (d) * * *
    (l) * * *
    (iii) * * *
    (C) (1) The State may not make a grant for acquisition or 
construction purposes in a designated special flood hazard area in 
which the sale of flood insurance is available under the NFIP unless 
the individual or family agrees to purchase adequate flood insurance 
and to maintain such insurance for as long as they live at that 
property address. The coverage shall be for a full $12,600 (to be 
adjusted annually based on the Consumer Price Index for all Urban 
Consumers). If the grantee is a homeowner, flood insurance coverage 
must be maintained on the residence at the flood-damaged property 
address for as long as the structure exists if the grantee, or any 
subsequent owner of that real estate, ever wishes to be assisted by the 
Federal government with any subsequent flood losses to real or 
[[Page 7131]] personal property, or both. If the grantee is a renter, 
flood insurance coverage must be maintained on the contents for as long 
as the renter resides at the flood-damaged property address. The 
restriction is lifted once the renter moves from the rental unit.
* * * * *
    (D) A State may not make a grant to any individual or family who 
received Federal disaster assistance for flood damage occurring after 
September 23, 1994, if the individual or family received flood disaster 
assistance and was required, but failed, to purchase and maintain flood 
insurance as a condition of receiving that Federal flood disaster 
assistance.
* * * * *
    Dated: January 31, 1995.
Richard W. Krimm,
Associate Director, Response and Recovery.
[FR Doc. 95-2960 Filed 2-6-95; 8:45 am]
BILLING CODE 6718-02-P