SHORE Act of 2013

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Saving Homeowners from Onerous Rate 
Escalations Act of 2013'' or the ``SHORE Act of 2013''.

SEC. 2. EXTENSION OF PHASE-IN OF ACTUARIAL RATES FOR FLOOD INSURANCE 
              FOR CERTAIN PROPERTIES.

    (a) New Policies and Lapsed Policies.--Section 1307(g) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4014(g)) is amended--
            (1) in paragraph (4)--
                    (A) in subparagraph (B), by redesignating clauses 
                (i) and (ii) as subclauses (I) and (II), respectively, 
                and adjusting the margins accordingly; and
                    (B) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively, and adjusting the 
                margins accordingly;
            (2) by redesignating paragraphs (1) through (4) as 
        subparagraphs (A) through (D), respectively, and adjusting the 
        margins accordingly;
            (3) in the matter preceding subparagraph (A), as 
        redesignated, by striking ``The Administrator'' and inserting 
        the following:
            ``(1) In general.--The Administrator''; and
            (4) by adding at the end the following:
            ``(2) Phase-in of actuarial rates.--
                    ``(A) In general.--Any increase in the risk premium 
                rate charged for flood insurance for a property or 
                policy described in subparagraph (A), (B), or (C) of 
                paragraph (1) that is a result of the prohibition set 
                forth under such paragraph shall be phased in over an 
                8-year period at the rate of--
                            ``(i) 5 percent for each of the first 5 
                        years after the applicable effective date 
                        established under subparagraph (B) of this 
                        paragraph; and
                            ``(ii) 25 percent for each of the 
                        subsequent 3 years.
                    ``(B) Effective date of phase-in.--The applicable 
                effective date under this subparagraph is the later 
                of--
                            ``(i) the date of enactment of the SHORE 
                        Act of 2013; or
                            ``(ii) the date on which--
                                    ``(I) a property described in 
                                paragraph (1)(A) becomes insured by the 
                                national flood insurance program;
                                    ``(II) a property described in 
                                paragraph (1)(B) is purchased; or
                                    ``(III) coverage for a policy 
                                described in paragraph (1)(C) is 
                                renewed.''.
    (b) Certain Other Properties.--Section 1308(e)(2) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(e)(2)) is amended by 
striking ``by 25 percent each year, until'' and inserting the 
following: ``by 5 percent each year for 5 years and by 25 percent each 
year thereafter, until''.
    (c) Premium Adjustments To Reflect Current Risk of Flood.--
            (1) In general.--Section 1308(h) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4015(h)) is amended--
                    (A) in the second sentence, by striking ``over a 5-
                year period, at the rate of 20 percent for each year 
                following such effective date.'' and inserting the 
                following: ``over a 10-year period, at the rate of 5 
                percent for each of the first 5 years after such 
                effective date and 15 percent for each of the 5 years 
                thereafter.''; and
                    (B) in the third sentence, by striking ``over a 5-
                year period, at the rate of 20 percent for each year 
                following the effective date of such issuance, 
                revision, updating, or change.'' and inserting the 
                following: ``over a 10-year period, at the rate of 5 
                percent for each of the first 5 years following the 
                effective date of such issuance, revision, updating, or 
                change, and 15 percent for each of the 5 years 
                thereafter.''.
            (2) Applicability.--For purposes of determining the amounts 
        and schedule for phasing in any increase in the risk premium 
        rate charged for flood insurance under the National Flood 
        Insurance Program under section 1308(h) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4015(h)), as amended by 
        paragraph (1), based on the issuance, revision, updating, or 
        other change with respect to a flood insurance map that took 
        effect during the period beginning on July 6, 2012 and ending 
        on the date of enactment of this Act, the effective date of the 
        issuance, revision, updating, or other change shall be deemed 
        to be the date of enactment of this Act.

Summary: Saving Homeowners from Onerous Rate Escalations Act of 2013 or SHORE Act of 2013 - Amends the National Flood Insurance Act of 1968 to direct the Administrator of the Federal Emergency Management Agency (FEMA) to phase in, over an eight-year period, any increase in the flood insurance risk premium rate caused by the prohibition against extending subsidies to new or lapsed policies. Extends from a 5-year to a 10-year period the phase-in period for premium adjustment increases in the flood insurance risk rate. Prescribes a phase-in rate of: (1) 5 for each of the first 5 years after the effective date of an update, and 15 for each of the 5 ensuing years. And (2) 5 for each of the first 5 years following the effective date of designation as a special flood area of any area not previously so designated, and 15 for each of the 5 ensuing years.