A bill to allow individuals to opt-out of the National Flood Insurance Program, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flood Insurance Choice Act of 
2007''.

SEC. 2. RIGHT TO OPT-OUT.

    Section 102(c) of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a(c)) is amended by adding at the end the following:
            ``(3) Individual opt-out.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this Act, or the National Flood Insurance 
                Act of 1968, any individual homeowner who satisfies the 
                requirements under subparagraph (B) shall not be 
                required to purchase flood insurance on any property, 
                including any property in an area that has been 
                identified by the Administrator as an area having 
                special flood hazards.
                    ``(B) Requirements.--The requirements referred to 
                in subparagraph (A) are as follows:
                            ``(i) Written certification to the 
                        administrator and community.--The individual 
                        homeowner shall certify, in writing, to the 
                        Administrator and the State, community, or 
                        local official responsible for zoning and 
                        building codes over the area in which such 
                        property is located that the individual--
                                    ``(I) elects not to participate in 
                                the flood insurance program under the 
                                National Flood Insurance Act of 1968; 
                                and
                                    ``(II) understands and willfully 
                                accepts any and all adverse consequence 
                                that attach to such an election, 
                                including--
                                            ``(aa) denial of any 
                                        Federal financial assistance 
                                        under this Act or the National 
                                        Flood Insurance Act of 1968;
                                            ``(bb) denial of any 
                                        Federal financial assistance 
                                        for acquisition or construction 
                                        purposes under this Act or the 
                                        National Flood Insurance Act of 
                                        1968;
                                            ``(cc) denial of any 
                                        Federal financial assistance 
                                        under sections 404, 408, and 
                                        425 of the Robert T. Stafford 
                                        Disaster Relief and Emergency 
                                        Assistance Act for damage as a 
                                        result, in whole or in part, of 
                                        a flood; or
                                            ``(dd) loss of value to the 
                                        property.
                            ``(ii) Recording of certification.--
                                    ``(I) In general.--The individual 
                                homeowner shall file the certification 
                                required under clause (i) with the 
                                appropriate State or local agency 
                                responsible for recording deeds, liens, 
                                or mortgages of real property in which 
                                the property that is the subject of 
                                such certification is located.
                                    ``(II) Effect of recording.--The 
                                recording of the certification under 
                                clause (i) shall--
                                            ``(aa) attach to the 
                                        property that is the subject of 
                                        such certification; and
                                            ``(bb) bind the current 
                                        owner of the property and all 
                                        future owners of the property, 
                                        including successor in 
                                        interests, assigns, or heirs, 
                                        who at any time hold title to 
                                        all or any portion of such 
                                        property.
                                    ``(III) Voluntary release.--
                                            ``(aa) In general.--The 
                                        current owner and any future 
                                        owner, the personal 
                                        representative of any such 
                                        owner, the estate of any 
                                        deceased owner, or any 
                                        qualified heir of a deceased 
                                        owner (as such term is defined 
                                        in section 2032A(e) of the 
                                        Internal Revenue Code) may 
                                        voluntarily file a document 
                                        terminating the effect of the 
                                        certification required under 
                                        clause (i) with the appropriate 
                                        State or local agency 
                                        responsible for recording, 
                                        deeds, liens, or mortgages of 
                                        real property in which the 
                                        affected real property interest 
                                        is located.
                                            ``(bb) Effect.--The effect 
                                        of filing any termination under 
                                        item (aa) shall be to void the 
                                        certification under clause (i).
                    ``(C) Base flood elevation requirements.--An 
                individual homeowner that has elected not to purchase 
                flood insurance under this paragraph with respect to 
                property owned by such individual shall not be required 
                to comply with any base flood elevation requirements 
                under this Act or the National Flood Insurance Act of 
                1968 for such property.''.

SEC. 3. ENSURING THAT COMMUNITIES ARE NOT ADVERSELY AFFECTED BY 
              INDIVIDUALS WHO OPT-OUT.

    (a) Land Use Controls.--Section 1315(a) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4022(a)) is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) No penalty for areas where individuals opt-out.--The 
        prohibition described under paragraph (1) shall not be 
        construed to apply to any area that has complied with 
        requirements under that paragraph but for those individuals 
        that have elected to opt-out of the flood insurance program 
        under section 102(c)(3) of the Flood Disaster Protection Act of 
        1973.''.
    (b) Financial Assistance.--Section 202 of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4106) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) No Penalty for Areas Where Individuals Opt-Out.--
            ``(1) In general.--The prohibition described under 
        subsection (a) shall not be construed to apply to any community 
        that has complied with requirements under that subsection but 
        for those individuals that have elected to opt-out of the flood 
        insurance program under section 102(c)(3).
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to require any Federal agency or officer to 
        provide any financial assistance for acquisition or 
        construction purposes to any individuals that have elected to 
        opt-out of the flood insurance program under section 
        102(c)(3).''.
    (c) Mitigation Assistance.--Section 1366(c) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4104c(c)) is amended by adding at the 
end the following new sentence: ``A State or community shall not be 
considered ineligible to receive financial assistance under this 
section for mitigation activities solely because individuals in that 
State or community have elected to opt-out of the flood insurance 
program under section 102(c)(3) of the Flood Disaster Protection Act of 
1973.''.

SEC. 4. DENIAL OF RELIEF UNDER STAFFORD ACT.

    Title IV of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170 et seq.) is amended by adding at the end 
the following:

``SEC. 427. DENIAL OF ASSISTANCE FOR INDIVIDUALS WHO HAVE OPTED-OUT OF 
              THE FLOOD INSURANCE PROGRAM.

    ``(a) In General.--No individual or household shall receive any 
assistance under section 404, 408, or 425, with respect to property 
owned by that individual or household, if such assistance is needed as 
a result, in whole or in part, of a flood, and such individual or 
household has elected with respect to such property to opt-out of the 
flood insurance program under section 102(c)(3) of the Flood Disaster 
Protection Act of 1973.
    ``(b) Definition of Flood.--As used in this section, the term 
`flood' has the same meaning as in section 1370 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4121).''

Summary: Flood Insurance Choice Act of 2007 - Amends the Flood Disaster Protection Act of 1973 to permit an individual homeowner not to purchase property flood insurance, even for property in a special flood hazard area, if he or she submits certain written certifications to the Administrator of the Federal Emergency Management Agency (FEMA) and the state, community, or local official responsible for zoning and building codes. Declares that such homeowner shall not be required to comply with certain base flood elevation requirements. Amends the National Flood Insurance Act of 1968, with respect to land use controls, financial assistance and mitigation assistance, to shield from penalties for non-compliance those areas that have complied with its requirements but where individuals have opted out pursuant to this Act. Amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act to deny assistance for individuals who have opted-out of the flood insurance program.