    [United States Statutes at Large, Volume 128, 113th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 113-89
    113th Congress

    An Act

    To delay the implementation of certain provisions of the Biggert-Waters
    Flood Insurance Reform Act of 2012, and for other purposes. <>

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <>
    SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short <>  Title.--This Act may be cited
    as the ``Homeowner Flood Insurance Affordability Act of 2014''.

    (b) Table of Contents.--The table of contents for this Act is as
    follows:

    Sec. 1. Short title and table of contents.
    Sec. 2. Definitions.
    Sec. 3. Repeal of certain rate increases.
    Sec. 4. Restoration of grandfathered rates.
    Sec. 5. Requirements regarding annual rate increases.
    Sec. 6. Clarification of rates for properties newly mapped into areas
    with special flood hazards.
    Sec. 7. Premiums and reports.
    Sec. 8. Annual premium surcharge.
    Sec. 9. Draft affordability framework.
    Sec. 10. Risk transfer.
    Sec. 11. Monthly installment payment for premiums.
    Sec. 12. Optional high-deductible policies for residential properties.
    Sec. 13. Exclusion of detached structures from mandatory purchase
    requirement.
    Sec. 14. Accounting for flood mitigation activities in estimates of
    premium rates.
    Sec. 15. Home improvement fairness.
    Sec. 16. Affordability study and report.
    Sec. 17. Flood insurance rate map certification.
    Sec. 18. Funds to reimburse homeowners for successful map appeals.
    Sec. 19. Flood protection systems.
    Sec. 20. Quarterly reports regarding Reserve Fund ratio.
    Sec. 21. Treatment of floodproofed residential basements.
    Sec. 22. Exemption from fees for certain map change requests.
    Sec. 23. Study of voluntary community-based flood insurance options.
    Sec. 24. Designation of flood insurance advocate.
    Sec. 25. Exceptions to escrow requirement for flood insurance payments.
    Sec. 26. Flood mitigation methods for buildings.
    Sec. 27. Mapping of non-structural flood mitigation features.
    Sec. 28. Clear communications.
    Sec. 29. Protection of small businesses, non-profits, houses of worship,
    and residences.
    Sec. 30. Mapping.
    Sec. 31. Disclosure.

    SEC. 2. <>  DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
    (1) Administrator.--The term ``Administrator'' means the
    Administrator of the Federal Emergency Management Agency.
    (2) National flood insurance program.--The term ``National
    Flood Insurance Program'' means the program established under
    the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
    seq.).

    [[Page 1021]]

    SEC. 3. <> REPEAL OF CERTAIN RATE
    INCREASES.

    (a) Repeal.--
    (1) In general.--Section 1307(g) of the National Flood
    Insurance Act of 1968 (42 U.S.C. 4014(g)) is amended--
    (A) by striking paragraphs (1) and (2);
    (B) in paragraph (3), by striking ``as a result of
    the deliberate choice of the holder of such policy'' and
    inserting ``, 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''; and
    (C) by redesignating paragraphs (3) and (4) as
    paragraphs (1) and (2), respectively.
    (2) Effective date.--The Administrator shall make available
    such rate tables, as necessary to implement the amendments made
    by paragraph (1) as if it were enacted as part of the Biggert-
    Waters Flood Insurance Reform Act of 2012 (Public Law 112-141;
    126 Stat. 957).
    (3) Implementation, coordination, and guidance.--
    (A) Facilitation <>  of timely
    refunds.--To ensure the participation of Write Your Own
    companies (as such term is defined in section 100202(a)
    of the Biggert-Waters Flood Insurance Reform Act of 2012
    (42 U.S.C. 4004(a)), the Administrator and the Federal
    Emergency Management Agency shall consult with Write
    Your Own companies throughout the development of
    guidance and rate tables necessary to implement the
    provisions of and the amendments made by this Act.
    (B) Implementation <>  and
    guidance.--The Administrator shall issue final guidance
    and rate tables necessary to implement the provisions of
    and the amendments made by this Act not later than eight
    months following the date of the enactment of
    this <> Act. Write Your Own
    companies, in coordination with the Federal Emergency
    Management Agency, shall have not less than six months
    but not more than eight months following the issuance of
    such final guidance and rate tables to implement the
    changes required by such final guidance and rate tables.
    (4) Refund of excess premium charges collected.--The
    Administrator shall refund directly to insureds any premiums for
    flood insurance coverage under the National Flood Insurance
    Program collected in excess of the rates required under the
    provisions of and amendments made by this section. To allow for
    necessary and appropriate implementation of such provisions and
    amendments, any premium changes necessary to implement such
    provisions and amendments, including any such premium refund due
    to policy holders, which shall be paid directly by the National
    Flood Insurance Program, shall not be charged or paid to
    policyholders by the National Flood Insurance Program until
    after the Administrator issues guidance and makes available such
    rate tables to implement the provisions of and amendments made
    by this Act.

    (b) Assumption of Policies at Existing Premium Rates.--The
    Administrator shall provide that the purchaser of a property that, as of
    the date of such purchase, is covered under an existing flood insurance
    policy under this title may assume such existing policy and coverage for
    the remainder of the term of the policy

    [[Page 1022]]

    at the chargeable premium rates under such existing policy. Such rates
    shall continue with respect to such property until the implementation of
    subsection (a).
    SEC. 4. RESTORATION OF GRANDFATHERED RATES.

    (a) In General.--Section 1308 of the National Flood Insurance Act of
    1968 (42 U.S.C. 4015) is amended--
    (1) by striking subsection (h); and
    (2) by redesignating subsection (i) as subsection (h).

    (b) <>  Effective Date.--The amendments
    made by subsection (a) shall take effect as if enacted as part of the
    Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law 112-141;
    126 Stat. 957).
    SEC. 5. REQUIREMENTS REGARDING ANNUAL RATE INCREASES.

    Section 1308(e) of the National Flood Insurance Act of 1968 (42
    U.S.C. 4015(e)) is amended--
    (1) in the matter preceding paragraph (1), by striking ``,
    the chargeable risk premium rates for flood insurance under this
    title for any properties'';
    (2) in paragraph (1), by inserting ``the chargeable risk
    premium rates for flood insurance under this title for any
    properties'' before ``within any'';
    (3) in paragraph (2), by inserting ``the chargeable risk
    premium rates for flood insurance under this title for any
    properties'' before ``described in'';
    (4) by redesignating paragraphs (1) and (2), as so amended,
    as paragraphs (3) and (4), respectively; and
    (5) by inserting before paragraph (3), as so redesignated,
    the following new paragraphs:
    ``(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;'';

    [[Page 1023]]

    (6) in paragraph (3) (as so redesignated by paragraph (4) of
    this section), by striking ``20 percent'' and inserting ``15
    percent''; and
    (7) in paragraph (4) (as so redesignated) by paragraph (4)
    of this section), by striking ``paragraph (1)'' and inserting
    ``paragraph (3)''.
    SEC. 6. CLARIFICATION OF RATES FOR PROPERTIES NEWLY MAPPED INTO
    AREAS WITH SPECIAL FLOOD HAZARDS.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4015), as amended by the preceding provisions of this Act, is further
    amended by adding at the end the following new subsection:
    ``(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.''.
    SEC. 7. PREMIUMS AND REPORTS.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4015), as amended by the preceding provisions of this Act, is further
    amended by adding at the end the following new subsection:
    ``(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.''.
    SEC. 8. ANNUAL PREMIUM SURCHARGE.

    (a) Premium Surcharge.--Chapter I of the National Flood Insurance
    Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting after
    section 1308 the following new section:
    ``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.

    [[Page 1024]]

    ``(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.''.
    (b) Deposit in Reserve Fund.--Subsection (c) of section 1310A of the
    National Flood Insurance Act of 1968 (42 U.S.C. 4017a) is amended by
    adding at the end the following new paragraph:
    ``(4) Deposit of premium surcharges.--The Administrator
    shall deposit in the Reserve Fund any surcharges collected
    pursuant to section 1308A.''.
    SEC. 9. DRAFT AFFORDABILITY FRAMEWORK.

    (a) In General.--The Administrator shall prepare a draft
    affordability framework that proposes to address, via programmatic and
    regulatory changes, the issues of affordability of flood insurance sold
    under the National Flood Insurance Program, including issues identified
    in the affordability study required under section 100236 of the Bigger-
    Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 126 Stat.
    957).
    (b) Criteria.--In carrying out the requirements under subsection
    (a), the Administrator shall consider the following criteria:
    (1) Accurate communication to consumers of the flood risk
    associated with their properties.
    (2) Targeted assistance to flood insurance policy holders
    based on their financial ability to continue to participate in
    the National Flood Insurance Program.
    (3) Individual or community actions to mitigate the risk of
    flood or lower the cost of flood insurance.
    (4) The impact of increases in risk premium rates on
    participation in the National Flood Insurance Program.
    (5) The impact flood insurance rate map updates have on the
    affordability of flood insurance.

    (c) Deadline for Submission.--Not later than 18 months after the
    date on which the Administrator submits the affordability study referred
    to in subsection (a), the Administrator shall submit to the full
    Committee on Banking, Housing, and Urban Affairs and the full Committee
    on Appropriations of the Senate and the full Committee on Financial
    Services and the full Committee on Appropriations of the House of
    Representatives the draft affordability framework required under
    subsection (a).
    (d) Interagency Agreements.--The Administrator may enter into an
    agreement with another Federal agency to--
    (1) complete the affordability study referred to in
    subsection (a); or

    [[Page 1025]]

    (2) prepare the draft affordability framework required under
    subsection (a).

    (e) Rule of Construction.--Nothing in this section shall be
    construed to provide the Administrator with the authority to provide
    assistance to homeowners based on affordability that was not available
    prior to the enactment of the Biggert-Waters Flood Insurance Reform Act
    of 2012 (Public Law 112-141; 126 Stat. 916).
    SEC. 10. RISK TRANSFER.

    Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4081) is amended by adding at the end the following new subsection:
    ``(e) Risk Transfer.--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.''.
    SEC. 11. MONTHLY INSTALLMENT PAYMENT FOR PREMIUMS.

    (a) In General.--Subsection (g) of section 1308 of the National
    Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended by striking
    ``either annually or in more frequent installments'' and inserting
    ``annually or monthly''.
    (b) <>  Implementation.--The Administrator
    shall implement the requirement under section 1308(g) of the National
    Flood Insurance Act of 1968, as amended by subsection (a), not later
    than the expiration of the 18-month period beginning on the date of the
    enactment of this Act.
    SEC. 12. OPTIONAL HIGH-DEDUCTIBLE POLICIES FOR RESIDENTIAL
    PROPERTIES.

    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:
    ``(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.''.

    [[Page 1026]]

    SEC. 13. EXCLUSION OF DETACHED STRUCTURES FROM MANDATORY PURCHASE
    REQUIREMENT.

    (a) Exclusion.--Subsection (c) of section 102 of the Flood Disaster
    Protection Act of 1973 (42 U.S.C. 4012a(c)) is amended by adding at the
    end the following new paragraph:
    ``(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.''.

    (b) RESPA Statement.--Section 5(b) of the Real Estate Settlement
    Procedures Act of 1974 (12 U.S.C. 2604(b)) is amended--
    (1) in paragraph (14), by inserting before the period at the
    end the following: ``, and the following statement: `Although
    you may not be required to maintain flood insurance on all
    structures, you may still wish to do so, and your mortgage
    lender may still require you to do so to protect the collateral
    securing the mortgage. If you choose to not maintain flood
    insurance on a structure, and it floods, you are responsible for
    all flood losses relating to that structure.' ''; and
    (2) by transferring and inserting paragraph (14), as so
    amended, after paragraph (13).
    SEC. 14. ACCOUNTING FOR FLOOD MITIGATION ACTIVITIES IN ESTIMATES
    OF PREMIUM RATES.

    Subparagraph (A) of section 1307(a)(1) of the National Flood
    Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(A)) is amended to read as
    follows:
    ``(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''.
    SEC. 15. HOME IMPROVEMENT FAIRNESS.

    Section 1307(a)(2)(E)(ii) of the National Flood Insurance Act of
    1968 (42 U.S.C. 4014(a)(2)(E)(ii)) is amended by striking ``30 percent''
    and inserting ``50 percent''.
    SEC. 16. AFFORDABILITY STUDY AND REPORT.

    (a) Study Issues.--Subsection (a) of section 100236 of the Biggert-
    Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 126 Stat.
    957) is amended--
    (1) in paragraph (3), by striking ``and'' at the end;
    (2) in paragraph (4), by striking the period at the end and
    inserting a semicolon; and
    (3) by adding at the end the following new paragraphs:
    ``(5) options for maintaining affordability if annual
    premiums for flood insurance coverage were to increase to an
    amount greater than 2 percent of the liability coverage amount
    under the policy, including options for enhanced mitigation
    assistance and means-tested assistance;

    [[Page 1027]]

    ``(6) the effects that the establishment of catastrophe
    savings accounts would have regarding long-term affordability of
    flood insurance coverage; and
    ``(7) options for modifying the surcharge under 1308A,
    including based on homeowner income, property value or risk of
    loss.''.

    (b) <>  Timing of Submission.--Notwithstanding the
    deadline under section 100236(c) of the Biggert-Waters Flood Insurance
    Reform Act of 2012 (Public Law 112-141; 126 Stat. 957), not later than
    18 months after the date of enactment of this Act, the Administrator
    shall submit to the full Committee on Banking, Housing, and Urban
    Affairs and the full Committee on Appropriations of the Senate and the
    full Committee on Financial Services and the full Committee on
    Appropriations of the House of Representatives the affordability study
    and report required under such section 100236.

    (c) Affordability Study Funding.--Section 100236(d) of the Biggert-
    Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 126 Stat.
    957) is amended by striking ``$750,000'' and inserting ``$2,500,000''.
    SEC. 17. <> FLOOD INSURANCE RATE MAP
    CERTIFICATION.

    The <> Administrator shall implement a flood mapping
    program for the National Flood Insurance Program, only after review by
    the Technical Mapping Advisory Council, that, when applied, results in
    technically credible flood hazard data in all areas where Flood
    Insurance Rate Maps are prepared or updated, shall certify in writing to
    the Congress when such a program has been implemented, and shall provide
    to the Congress the Technical Mapping Advisory Council review report.
    SEC. 18. FUNDS TO REIMBURSE HOMEOWNERS FOR SUCCESSFUL MAP APPEALS.

    (a) In General.--Section 1363(f) of the National Flood Insurance Act
    of 1968 (42 U.S.C. 4104(f)) is amended--
    (1) in the first sentence, by inserting after ``as the case
    may be,'' the following: ``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,''; and
    (2) by striking the second sentence and inserting the
    following: ``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.''.

    (b) Conforming Amendments.--Section 1310(a) of the National Flood
    Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
    (1) in paragraph (6), by striking ``and'' at the end;
    (2) in paragraph (7), by striking the period at the end and
    inserting ``; and''; and
    (3) by adding at the end the following:
    ``(8) for carrying out section 1363(f).''.
    SEC. 19. FLOOD PROTECTION SYSTEMS.

    (a) Adequate Progress on Construction of Flood Protection Systems.--
    Section 1307(e) of the National Flood Insurance Act of 1968 (42 U.S.C.
    4014(e)) is amended--

    [[Page 1028]]

    (1) in the first sentence, by inserting ``or
    reconstruction'' after ``construction'';
    (2) by amending the second sentence to read as follows:
    ``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.''; and
    (3) by adding at the end the following: ``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.''.

    (b) Communities Restoring Disaccredited Flood Protection Systems.--
    Section 1307(f) of the National Flood Insurance Act of 1968 (42 U.S.C.
    4014(f)) is amended by amending the first sentence to read
    as <> follows: ``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.''.
    SEC. 20. QUARTERLY REPORTS REGARDING RESERVE FUND RATIO.

    Subsection (e) of section 1310A of the National Flood Insurance Act
    of 1968 (42 U.S.C. 4017a) is amended, in the matter preceding paragraph
    (1), by inserting ``, on a calendar quarterly basis,'' after ``submit''.
    SEC. 21. <> TREATMENT OF FLOODPROOFED
    RESIDENTIAL BASEMENTS.

    The Administrator shall continue to extend exceptions and variances
    for flood-proofed basements consistent with section 60.6 of title 44,
    Code of Federal Regulations, which are effective April 3, 2009; and
    section 60.3 of such title, which are effective April 3, 2009.
    SEC. 22. <> EXEMPTION FROM FEES FOR CERTAIN
    MAP CHANGE REQUESTS.

    Notwithstanding any other provision of law, a requester shall be
    exempt from submitting a review or processing fee for a request for a
    flood insurance rate map change based on a habitat restoration project
    that is funded in whole or in part with Federal or State funds,
    including dam removal, culvert redesign or installation, or the
    installation of fish passage.
    SEC. 23. STUDY OF VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE
    OPTIONS.

    (a) Study.--
    (1) Study required.--The Administrator shall conduct a study
    to assess options, methods, and strategies for making

    [[Page 1029]]

    available voluntary community-based flood insurance policies
    through the National Flood Insurance Program.
    (2) Considerations.--The study conducted under paragraph (1)
    shall--
    (A) take into consideration and analyze how
    voluntary community-based flood insurance policies--
    (i) would affect communities having varying
    economic bases, geographic locations, flood hazard
    characteristics or classifications, and flood
    management approaches; and
    (ii) could satisfy the applicable requirements
    under section 102 of the Flood Disaster Protection
    Act of 1973 (42 U.S.C. 4012a); and
    (B) evaluate the advisability of making available
    voluntary community-based flood insurance policies to
    communities, subdivisions of communities, and areas of
    residual risk.
    (3) Consultation.--In conducting the study required under
    paragraph (1), the Administrator may consult with the
    Comptroller General of the United States, as the Administrator
    determines is appropriate.

    (b) Report by the Administrator.--
    (1) Report required.--Not later than 18 months after the
    date of enactment of this Act, the Administrator shall submit to
    the Committee on Banking, Housing, and Urban Affairs of the
    Senate and the Committee on Financial Services of the House of
    Representatives a report that contains the results and
    conclusions of the study conducted under subsection (a).
    (2) <>  Contents.--The report
    submitted under paragraph (1) shall include recommendations
    for--
    (A) the best manner to incorporate voluntary
    community-based flood insurance policies into the
    National Flood Insurance Program; and
    (B) <>  a strategy to implement
    voluntary community-based flood insurance policies that
    would encourage communities to undertake flood
    mitigation activities, including the construction,
    reconstruction, or improvement of levees, dams, or other
    flood control structures.

    (c) Report by Comptroller General.--Not later than 6 months after
    the date on which the Administrator submits the report required under
    subsection (b), the Comptroller General of the United States shall--
    (1) <>  review the report submitted by the
    Administrator; and
    (2) <>  submit to the Committee on
    Banking, Housing, and Urban Affairs of the Senate and the
    Committee on Financial Services of the House of Representatives
    a report that contains--
    (A) <>  an analysis of the report
    submitted by the Administrator;
    (B) any comments or recommendations of the
    Comptroller General relating to the report submitted by
    the Administrator; and
    (C) any other recommendations of the Comptroller
    General relating to community-based flood insurance
    policies.

    [[Page 1030]]

    SEC. 24. <> DESIGNATION OF FLOOD INSURANCE
    ADVOCATE.

    (a) In General.--The Administrator shall designate a Flood Insurance
    Advocate to advocate for the fair treatment of policy holders under the
    National Flood Insurance Program and property owners in the mapping of
    flood hazards, the identification of risks from flood, and the
    implementation of measures to minimize the risk of flood.
    (b) Duties and Responsibilities.--The duties and responsibilities of
    the Flood Insurance Advocate designated under subsection (a) shall be
    to--
    (1) educate property owners and policyholders under the
    National Flood Insurance Program on--
    (A) individual flood risks;
    (B) flood mitigation;
    (C) measures to reduce flood insurance rates through
    effective mitigation;
    (D) the flood insurance rate map review and
    amendment process; and
    (E) any changes in the flood insurance program as a
    result of any newly enacted laws (including this Act);
    (2) assist policy holders under the National Flood Insurance
    Program and property owners to understand the procedural
    requirements related to appealing preliminary flood insurance
    rate maps and implementing measures to mitigate evolving flood
    risks;
    (3) assist in the development of regional capacity to
    respond to individual constituent concerns about flood insurance
    rate map amendments and revisions;
    (4) coordinate outreach and education with local officials
    and community leaders in areas impacted by proposed flood
    insurance rate map amendments and revisions; and
    (5) aid potential policy holders under the National Flood
    Insurance Program in obtaining and verifying accurate and
    reliable flood insurance rate information when purchasing or
    renewing a flood insurance policy.
    SEC. 25. EXCEPTIONS TO ESCROW REQUIREMENT FOR FLOOD INSURANCE
    PAYMENTS.

    (a) In General.--Section 102(d)(1) of the Flood Disaster Protection
    Act of 1973 (42 U.S.C. 4012a(d)(1)) is amended--
    (1) in subparagraph (A), in the second sentence, by striking
    ``subparagraph (C)'' and inserting ``subparagraph (B)''; and
    (2) in subparagraph (B)--
    (A) in clause (ii), by redesignating subclauses (I)
    and (II) as items (aa) and (bb), respectively, and
    adjusting the margins accordingly;
    (B) by redesignating clauses (i) and (ii) as
    subclauses (I) and (II), respectively, and adjusting the
    margins accordingly;
    (C) in the matter preceding subclause (I), as
    redesignated by subparagraph (B), by striking ``(A) or
    (B), if--'' and inserting the following: ``(A)--
    ``(i) if--'';
    (D) by striking the period at the end and inserting
    ``; or''; and
    (E) by adding at the end the following:
    ``(ii) in the case of a loan that--

    [[Page 1031]]

    ``(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.''.

    (b) <>  Applicability.--
    (1) In general.--
    (A) Required application.--The amendments to section
    102(d)(1) of the Flood Disaster Protection Act of 1973
    (42 U.S.C. 4012a(d)(1)) made by section 100209(a) of the
    Biggert-Waters Flood Insurance Reform Act of 2012
    (Public Law 112-141; 126 Stat. 920) and by subsection
    (a) of this section shall apply to any loan that is
    originated, refinanced, increased, extended, or renewed
    on or after January 1, 2016.
    (B) Optional application.--
    (i) Definitions.--In this subparagraph--
    (I) the terms ``Federal entity for
    lending regulation'', ``improved real
    estate'', ``regulated lending
    institution'', and ``servicer'' have the
    meanings given the terms in section 3 of
    the Flood Disaster Protection Act of
    1973 (42 U.S.C. 4003);
    (II) the term ``outstanding loan''
    means a loan that--
    (aa) is outstanding as of
    January 1, 2016;
    (bb) is not subject to the
    requirement to escrow premiums
    and fees for flood insurance
    under section 102(d)(1) of the
    Flood Disaster Protection Act of
    1973 (42 U.S.C. 4012a(d)(1)) as
    in effect on July 5, 2012; and
    (cc) would, if the loan had
    been originated, refinanced,
    increased, extended, or renewed
    on or after January 1, 2016, be
    subject to the requirements
    under section 102(d)(1)(A)

    [[Page 1032]]

    of the Flood Disaster Protection
    Act of 1973, as amended; and
    (III) the term ``section
    102(d)(1)(A) of the Flood Disaster
    Protection Act of 1973, as amended''
    means section 102(d)(1)(A) of the Flood
    Disaster Protection Act of 1973 (42
    U.S.C. 4012a(d)(1)(A)), as amended by--
    (aa) section 100209(a) of
    the Biggert-Waters Flood
    Insurance Reform Act of 2012
    (Public Law 112-141; 126 Stat.
    920); and
    (bb) subsection (a) of this
    section.
    (ii) Option to escrow flood insurance
    payments.--
    Each <>  Federal entity for lending regulation (after
    consultation and coordination with the Federal
    Financial Institutions Examination Council) shall,
    by regulation, direct that each regulated lending
    institution or servicer of an outstanding loan
    shall offer and make available to a borrower the
    option to have the borrower's payment of premiums
    and fees for flood insurance under the National
    Flood Insurance Act of 1968 (42 U.S.C. 4001 et
    seq.), including the escrow of such payments, be
    treated in the same manner provided under section
    102(d)(1)(A) of the Flood Disaster Protection Act
    of 1973, as amended.
    (2) Repeal of 2-year delay on applicability.--Subsection (b)
    of section 100209 of the Biggert-Waters Flood Insurance Reform
    Act of 2012 <>  (Public Law 112-141;
    126 Stat. 920) is repealed.
    (3) <>  Rule of construction.--
    Nothing in this section or the amendments made by this section
    shall be construed to supersede, during the period beginning on
    July 6, 2012 and ending on December 31, 2015, the requirements
    under section 102(d)(1) of the Flood Disaster Protection Act of
    1973 (42 U.S.C. 4012a(d)(1)), as in effect on July 5, 2012.
    SEC. 26. FLOOD MITIGATION METHODS FOR BUILDINGS.

    (a) Guidelines.--
    (1) In general.--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:

    ``(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
    ``(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.''.
    (2) <>
    Issuance.--The Administrator shall issue the guidelines required
    under section 1361(d) of the National Flood Insurance Act of
    1968 (42 U.S.C. 4102(d)), as added by the amendment made by
    paragraph (1) of this subsection, not later

    [[Page 1033]]

    than the expiration of the 1-year period beginning on the date
    of the enactment of this Act.

    (b) Calculation of Risk Premium Rates.--Section 1308 of the National
    Flood Insurance Act of 1968 (42 U.S.C. 4015), as amended by the
    preceding provisions of this Act, is further amended by adding at the
    end the following new subsection:
    ``(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 the implementation of
    any mitigation method identified by the Administrator in the guidance
    issued under section 1361(d) (42 U.S.C. 4102(d)).''.
    SEC. 27. MAPPING OF NON-STRUCTURAL FLOOD MITIGATION FEATURES.

    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)--
    (A) in clause (iv), by striking ``and'' at the end;
    (B) by redesignating clause (v) as clause (vi);
    (C) by inserting after clause (iv) the following new
    clause:
    ``(v) areas that are protected by non-
    structural flood mitigation features; and''; and
    (D) in clause (vi) (as so redesignated), by
    inserting before the semicolon at the end the following:
    ``and by non-structural flood mitigation features''; and
    (2) in subsection (d)(1)--
    (A) by redesignating subparagraphs (A) through (C)
    as subparagraphs (B) through (D), respectively;
    (B) in subparagraph (C) (as so redesignated), by
    striking ``subparagraph (A)'' and inserting
    ``subparagraph (B)''; and
    (C) by inserting before subparagraph (B) (as so
    redesignated) the following new subparagraph:
    ``(A) work with States, local communities, and
    property owners to identify areas and features described
    in subsection (b)(1)(A)(v);''.
    SEC. 28. CLEAR COMMUNICATIONS.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4015), as amended by the preceding provisions of this Act, is further
    amended by adding at the end the following new subsection:
    ``(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.''.
    SEC. 29. PROTECTION OF SMALL BUSINESSES, NON-PROFITS, HOUSES OF
    WORSHIP, AND RESIDENCES.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4015), as amended by the preceding provisions of this Act, is further
    amended by adding at the end the following new subsection:
    ``(m) Protection of Small Businesses, Non-Profits, Houses of
    Worship, and Residences.--

    [[Page 1034]]

    ``(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.''.
    SEC. 30. MAPPING.

    Section 100216(d)(1) of the Biggert-Waters Flood Insurance Reform
    Act of 2012 (42 U.S.C. 4101b(d)(1)), as amended by section 27 of this
    Act, is further amended--
    (1) in subparagraph (C)--
    (A) by striking ``subparagraph (B)'' and inserting
    ``subparagraph (E)''; and
    (B) by striking ``and'' at the end;
    (2) by redesignating subparagraphs (A), (B), (C), and (D) as
    subparagraphs (D), (E), (F), and (H), respectively;
    (3) by inserting before subparagraph (D), as so
    redesignated, the following new subparagraphs:
    ``(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 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 30-day
    period during which the community may provide data

    [[Page 1035]]

    to Administrator that can be used to supplement or
    modify the existing data, and incorporate any data that
    is consistent with prevailing engineering principles;'';
    and
    (4) by inserting after subparagraph (F), as so redesignated,
    the following new subparagraph:
    ``(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''.
    SEC. 31. DISCLOSURE.

    (a) <>
    Changes in Rates Resulting From This Act.--Not later than the date that
    is 6 months before the date on which any change in risk premium rates
    for flood insurance coverage under the National Flood Insurance Program
    resulting from this Act or any amendment made by this Act is
    implemented, the Administrator shall make publicly available the rate
    tables and underwriting guidelines that provide the basis for the
    change.

    (b) Report on Policy and Claims Data.--
    (1) In general.--Not later than 90 days after the date of
    enactment of this Act, the Administrator shall submit to the
    Congress a report on the feasibility of--
    (A) releasing property-level policy and claims data
    for flood insurance coverage under the National Flood
    Insurance Program; and
    (B) establishing guidelines for releasing property-
    level policy and claims data for flood insurance
    coverage under the National Flood Insurance Program in
    accordance with section 552a of title 5, United States
    Code (commonly known as the Privacy Act of 1974).
    (2) Contents.--The report submitted under paragraph (1)
    shall include--
    (A) <>  an analysis and
    assessment of how releasing property-level policy and
    claims data for flood insurance coverage under the
    National Flood Insurance Program will aid policy holders
    and insurers to understand how the Administration
    determines actuarial premium rates and assesses flood
    risks; and

    [[Page 1036]]

    (B) <>  recommendations
    for protecting personal information in accordance with
    section 552a of title 5, United States Code (commonly
    known as the Privacy Act of 1974).

    Approved March 21, 2014.

    LEGISLATIVE HISTORY--H.R. 3370:
    ---------------------------------------------------------------------------

    CONGRESSIONAL RECORD, Vol. 160 (2014):
    Mar. 4, considered and passed House.
    Mar. 13, considered and passed Senate.