To revise the National Flood Insurance Program to more fairly treat homeowners who purchase insurance under the program.

Summary: Flood Insurance Fairness Act of 2010 - Amends the Flood Disaster Protection Act of 1973 to delay, for certain areas not previously designated as having special flood hazards, the effective date for the mandatory purchase of flood insurance until the expiration of the five-year period beginning upon the date that revisions to certain flood insurance maps become available.

Prohibits this Act from being construed to authorize or require any payment or refund for flood insurance coverage purchases that covered any period during which such coverage is not required for the insured property.

Amends the National Flood Insurance Act of 1968 to prescribe a five-year phase-in schedule for flood insurance rates for areas newly mapped as having special flood hazards.

Requires the Administrator of the Federal Emergency Management Agency (FEMA) to reimburse property owners for costs incurred in requests to remove property from base flood elevations.

Instructs the FEMA Administrator to submit to Congress a community outreach plan updating floodplain areas and flood-risk zones.

Instructs the FEMA Administrator to notify the appropriate Members of Congress of actions taken regarding any modernization of a floodplain area or flood-risk zone in their respective states or districts.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flood Insurance Fairness Act of 
2010''.

SEC. 2. 5-YEAR DELAY IN EFFECTIVE DATE OF MANDATORY PURCHASE 
              REQUIREMENT FOR NEW FLOOD HAZARD AREAS.

    (a) In General.--Section 102 of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4012a) is amended by adding at the end the following 
new subsection:
    ``(i) Delayed Effective Date of Mandatory Purchase Requirement for 
New Flood Hazard Areas.--
            ``(1) In general.--In the case of any area that was not 
        previously designated as an area having special flood hazards 
        and that, pursuant to any issuance, revision, updating, or 
        other change in flood insurance maps that takes effect on or 
        after September 1, 2008, becomes designated as an area having 
        special flood hazards, such designation shall not take effect 
        for purposes of subsection (a), (b), or (e) of this section, or 
        section 202(a) of this Act, until the expiration of the 5-year 
        period beginning upon the date that such maps, as issued, 
        revised, update, or otherwise changed, become effective.
            ``(2) Rule of construction.--Nothing in paragraph (1) may 
        be construed to affect the applicability of a designation of 
        any area as an area having special flood hazards for purposes 
        of the availability of flood insurance coverage, criteria for 
        land management and use, notification of flood hazards, 
        eligibility for mitigation assistance, or any other purpose or 
        provision not specifically referred to in paragraph (1).''.
    (b) Conforming Amendment.--The second sentence of subsection (h) of 
section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101(h)) is amended by striking ``Such'' and inserting ``Except for 
notice regarding a change described in section 102(i)(1) of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a(i)(1)), such''.
    (c) No Refunds.--Nothing in this section or the amendments made by 
this section may be construed to authorize or require any payment or 
refund for flood insurance coverage purchased for any property that 
covered any period during which such coverage is not required for the 
property pursuant to the applicability of the amendment made by 
subsection (a).

SEC. 3. 5-YEAR PHASE-IN OF FLOOD INSURANCE RATES FOR NEWLY MAPPED 
              AREAS.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015) is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by inserting ``or notice'' after ``prescribe by 
        regulation'';
            (2) in subsection (c), by inserting ``and subsection (g)'' 
        before the first comma; and
            (3) by adding at the end the following new subsection:
    ``(g) 5-Year Phase-In of Flood Insurance Rates for Newly Mapped 
Areas.--Notwithstanding any other provision of law relating to 
chargeable risk premium rates for flood insurance coverage under this 
title, in the case of any property that is located within any area that 
was not previously designated as an area having special flood hazards 
and that, pursuant to any issuance, revision, updating, or other change 
in flood insurance maps, becomes designated as such an area, during the 
5-year period that begins upon the earlier of (A) the expiration of the 
period referred to in section 102(i)(1) of the Flood Disaster 
Protection Act of 1973 with respect to such area, or (B) the first date 
during such period referred to in such section 102(i)(1) with respect 
to such area that flood insurance coverage under this title is in 
effect for such property, the chargeable premium rate for flood 
insurance under this title with respect to such shall be--
            ``(1) for the first year of such 5-year period, 20 percent 
        of the chargeable risk premium rate otherwise applicable under 
        this title to the property;
            ``(2) for the second year of such 5-year period, 40 percent 
        of the chargeable risk premium rate otherwise applicable under 
        this title to the property;
            ``(3) for the third year of such 5-year period, 60 percent 
        of the chargeable risk premium rate otherwise applicable under 
        this title to the property;
            ``(4) for the fourth year of such 5-year period, 80 percent 
        of the chargeable risk premium rate otherwise applicable under 
        this title to the property; and
            ``(5) for the fifth year of such 5-year period, 100 percent 
        of the chargeable risk premium rate otherwise applicable under 
        this title to the property.''.

SEC. 4. REIMBURSEMENT OF PROPERTY OWNERS FOR COSTS INCURRED IN REQUESTS 
              TO REMOVE PROPERTY FROM BASE FLOOD ELEVATIONS.

    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) Reimbursement of Property Owners for Costs Incurred in 
Requests To Remove Property From Base Flood Elevations.--If an owner of 
a real property incurs expense in connection with the services of 
surveyors, engineers, or similar services, but not including legal 
services, in effecting any request to the Director to remove the 
property from inclusion within the base flood elevations established 
under flood insurance map panels, and the Director grants such request 
in whole or in part, the Director shall reimburse such individual for 
such expense. The amount of such reimbursement shall be determined by 
the Director, based on the ratio of the successful portion of the 
request as compared to the entire request. The Director shall apply 
such ratio to the average cost of such services in the community for 
jobs of a similar size.''.

SEC. 5. COMMUNITY OUTREACH PLAN FOR UPDATING FLOODPLAIN AREAS AND 
              FLOOD-RISK ZONES.

    The Administrator of the Federal Emergency Management Agency--
            (1) shall, not later than the expiration of the 60-day 
        period beginning upon the date of the enactment of this Act, 
        submit to the Congress a community outreach plan for the 
        updating of floodplain areas and flood-risk zones under section 
        1360(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 
        4101(f)); and
            (2) may not revise and update any floodplain area or flood-
        risk zone under such section 1360(f) of the National Flood 
        Insurance Act of 1968 until the date on which the Administrator 
        submits such community outreach plan.

SEC. 6. NOTIFICATION OF ESTABLISHMENT OF FLOOD ELEVATIONS.

    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 new subsection:
    ``(l) Notification to Members of Congress of Map Modernization.--
Upon any revision or update of any floodplain area or flood-risk zone 
pursuant to subsection (f), any decision pursuant to subsection (f)(1) 
that such revision or update is necessary, any issuance of preliminary 
maps for such revision or updating, or any other significant action 
relating to any such revision or update, the Director shall notify the 
Senators for each State affected, and each Member of the House of 
Representatives for each congressional district affected, by such 
revision or update in writing of the action taken.''.