69–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 115–276 

REPEATEDLY FLOODED COMMUNITIES PREPARATION 

ACT 

AUGUST 15, 2017.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. HENSARLING, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

[To accompany H.R. 1558] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 1558) to amend the National Flood Insurance Act of 1968 

to ensure community accountability for areas repetitively damaged 

by floods, and for other purposes, having considered the same, report favorably thereon with an amendment and recommend that 

the bill as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Repeatedly Flooded Communities Preparation Act’’. 

SEC. 2. COMMUNITY ACCOUNTABILITY FOR REPETITIVELY FLOODED AREAS. 

(a) 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: 

‘‘(e) COMMUNITY ACCOUNTABILITY FOR REPETITIVELY DAMAGED AREAS.— ‘‘(1) IN GENERAL.—The Administrator shall, by regulation, require any covered 

community (as such term is defined in paragraph (5))— 

‘‘(A) to identify the areas within the community where properties described in paragraph (5)(B) or flood-damaged facilities are located to determine areas repeatedly damaged by floods and to assess, with assistance 

from the Administrator, the continuing risks to such areas; 

‘‘(B) to develop a community-specific plan for mitigating continuing flood 

risks to such repetitively flooded areas and to submit such plan and plan 

updates to the Administrator at appropriate intervals; 

‘‘(C) to implement such plans; 

‘‘(D) to make such plan, plan updates, and reports on progress in reducing 

flood risk available to the public, subject to section 552a of title 5, United 

States Code. 

‘‘(2) INCORPORATION INTO EXISTING PLANS.—Plans developed pursuant to paragraph (1) may be incorporated into mitigation plans developed under section 

2 

1366 of this Act (42 U.S.C. 4104c) and hazard mitigation plans developed under 

section 322 of the Robert T. Stafford Disaster Relief and Emergency Assistance 

Act (42 U.S.C. 5165). 

‘‘(3) ASSISTANCE TO COMMUNITIES.— 

‘‘(A) DATA.—To assist communities in preparation of plans required under 

paragraph (1), the Administrator shall, upon request, provide covered communities with appropriate data regarding the property addresses and dates 

of claims associated with insured properties within the community. 

‘‘(B) MITIGATION GRANTS.—In making determinations regarding financial 

assistance under the authorities of this Act, the Administrator may consider the extent to which a community has complied with this subsection 

and is working to remedy problems with addressing repeatedly flooded 

areas. 

‘‘(4) SANCTIONS.— 

‘‘(A) IN GENERAL.—The Administrator shall, by regulations issued in accordance with the procedures established under section 553 of title 5, 

United States Code, regarding substantive rules, provide appropriate sanctions for covered communities that fail to comply with the requirements 

under this subsection or to make sufficient progress in reducing the flood 

risks to areas in the community that are repeatedly damaged by floods. 

‘‘(B) NOTICE.—Before imposing any sanction pursuant to this paragraph, 

the Administrator shall provide the covered community involved with notice 

of the non-compliance that could result in the imposition of sanctions, 

which shall include recommendations for actions to bring the covered community into compliance. 

‘‘(C) CONSIDERATIONS.—In determining appropriate sanctions to impose 

under this paragraph, the Administrator shall consider the resources available to the covered community involved, including Federal funding, the portion of the covered community that lies within an area having special flood 

hazards, and other factors that make it difficult for the covered community 

to conduct mitigation activities for existing flood-prone structures. 

‘‘(5) COVERED COMMUNITY.—For purposes of this subsection, the term ‘covered 

community’ means a community— 

‘‘(A) that is participating, pursuant to section 1315, in the national flood 

insurance program; and 

‘‘(B) within which are located— 

‘‘(i) 50 or more repetitive loss structures for each of which, during any 

10-year period, two or more claims for payments under flood insurance 

coverage have been made with a cumulative amount exceeding $1,000; 

‘‘(ii) 5 or more severe repetitive loss structures (as such term is defined in section 1366(h)) for which mitigation activities meeting the 

standards for approval under section 1366(c)(2)(A) have not been conducted; or 

‘‘(iii) a public facility or a private nonprofit facility (as such terms are 

as defined in section 102 of the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5122)), that has received assistance for repair, restoration, reconstruction, or replacement under section 406 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5172) in connection with more than one flooding 

event in the most recent 10-year period. 

‘‘(6) REPETITIVE-LOSS STRUCTURE.—For purposes of this subsection, the term 

‘repetitive loss structure’ has the meaning given such term in section 1370 (42 

U.S.C. 4121). 

‘‘(7) REPORTS TO CONGRESS.—Not later than the expiration of the 6-year period beginning upon the date of the enactment of this subsection, and not less 

than every 2 years thereafter, the Administrator shall submit a report to the 

Congress regarding the progress in implementing plans developed pursuant to 

paragraph (1)(B).’’. 

(b) REGULATIONS.—The Administrator of the Federal Emergency Management 

Agency shall issue regulations necessary to carry out subsection (e) of section 1361 

of the National Flood Insurance Act of 1968, as added by the amendment made by 

subsection (a) of this section, not later than the expiration of the 12-month period 

that begins on the date of the enactment of this Act. 

SEC. 3. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS. 

(a) AUTHORITY.—Subsection (g) of section 1308 of the National Flood Insurance 

Act of 1968 (42 U.S.C. 4015(g)) is amended— 

(1) by striking the subsection designation and all that follows through ‘‘With 

respect’’ and inserting the following: 

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‘‘(g) FREQUENCY OF PREMIUM COLLECTION.— 

‘‘(1) OPTIONS.—With respect’’; and 

(2) by adding at the end the following: 

‘‘(2) MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.— 

‘‘(A) EXEMPTION FROM RULEMAKING.—Until such time as the Administrator promulgates regulations implementing paragraph (1) of this subsection, the Administrator may adopt policies and procedures, notwithstanding any other provisions of law and in alignment and consistent with 

existing industry escrow and servicing standards, necessary to implement 

such paragraph without undergoing notice and comment rulemaking and 

without conducting regulatory analyses otherwise required by statute, regulation, or Executive order. 

‘‘(B) PILOT PROGRAM.—The Administrator may initially implement paragraph (1) of this subsection as a pilot program that provides for a gradual 

phase-in of implementation. 

‘‘(C) POLICYHOLDER PROTECTION.—The Administrator may— 

‘‘(i) during the 12-month period beginning on the date of the enactment of this subparagraph, charge policyholders choosing to pay premiums in monthly installments a fee for the total cost of the monthly 

collection of premiums not to exceed $25 annually; and 

‘‘(ii) after the expiration of the 12-month period referred to in clause 

(i), adjust the fee charged annually to cover the total cost of the monthly collection of premiums as determined by the report submitted pursuant to subparagraph (D). 

‘‘(D) REPORT.—Not later than six months after the date of the enactment 

of this Act, the Comptroller General shall submit a report to the Committee 

on Financial Services of the House of Representatives and the Committee 

on Banking, Housing, and Urban Affairs of the Senate, that sets forth all 

of the costs associated with the monthly payment of premiums, including 

any up-front costs associated with infrastructure development, the impact 

on all policyholders including those that exercise the option to pay monthly 

and those that do not, options for minimizing the costs, particularly the 

costs to policyholders, and the feasibility of adopting practices that serve to 

minimize costs to policyholders such as automatic payments and electronic 

payments. 

‘‘(E) ANNUAL REPORTS.—On an annual basis, the Administrator shall report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the 

Senate the ongoing costs associated with the monthly payment of premiums.’’. 

(b) IMPLEMENTATION.—Clause (ii) of section 1307(a)(1)(B) of the National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(B)(ii)) is amended by inserting before ‘‘any 

administrative expenses’’ the following: ‘‘the costs associated with the monthly collection of premiums provided for in section 1308(g) (42 U.S.C. 4015(g)), but only if 

such costs exceed the operating costs and allowances set forth in clause (i) of this 

subparagraph, and’’. 

PURPOSE AND SUMMARY

Introduced by Representative Ed Royce on March 16, 2017, H.R. 

1558, the ‘‘Repeatedly Flooded Communities Preparation Act,’’ 

amends the National Flood Insurance Act of 1968 to ensure community accountability for areas repetitively damaged by floods. 

BACKGROUND AND NEED FOR LEGISLATION

Floods are among the most frequently occurring and costly natural disasters. Most declarations of federal disasters by the Federal 

Emergency Management Agency (FEMA) are related to flooding. 

Yet despite the frequency and severity of losses that result from 

flooding, the private insurance market generally did not provide insurance for flooding; when it did, insurance for flood-related damage can be expensive because the properties most at-risk tend to 

be highly concentrated geographically and the potential risk of economic losses is extremely high. 

4 

To supplement the availability of flood insurance in the private 

market, Congress, in 1968, created the National Flood Insurance 

Program (NFIP), which is administered by FEMA and provides 

flood insurance to approximately 5.1 million policyholders across 

the country. In exchange for premiums paid by policyholders, NFIP 

makes federally backed flood insurance available to homeowners 

and other property owners (for example, businesses, churches, and 

farmers) in these communities. 

Homeowners with mortgages held by federally regulated lenders 

on property in participating communities identified by FEMA to be 

in Special Flood Hazard Areas are required to purchase flood insurance (mandatory purchase requirement). NFIP coverage limits vary 

by program (regular or emergency) and property type (for example, 

residential or nonresidential). In NFIP’s regular program, the maximum coverage limits for residential policyholders are $250,000 for 

buildings and $100,000 for contents. For commercial policyholders 

(that is, those with policies for nonresidential properties), the maximum coverage limit is $500,000 per building and $500,000 for contents owned by the building owner. There is additional coverage for 

contents owned by the tenants. 

Residents and business owners in over 22,000 participating communities across the United States and its territories are able to 

buy NFIP flood insurance policies through insurance agents and 

companies that participate as third-party administrators in the 

‘‘Write Your Own’’ (WYO) program. The WYO program allows private insurance carriers to issue and service government underwritten and taxpayer backed NFIP policies with no private financial liability from the insurer. Insurance companies that participate 

in the WYO program receive an expense allowance for policies they 

write and the claims they process. In addition, their agents earn 

a commission for the policies they sell. The federal government, 

however, retains responsibility for managing the risk and paying 

claims, as well as covering any litigation costs should a WYO insurer be sued in court. 

Property owners can purchase flood insurance through the NFIP 

only if their communities participate in the NFIP. To participate in 

the NFIP, a community must agree to abide by certain statutory 

provisions intended to mitigate the risk of flooding, such as building codes that require new structures built in floodplains (high-risk 

areas) to be protected against flooding or to be elevated above the 

100-year floodplain. 

As of June 5, 2017, the NFIP has an outstanding debt of $24.6 

billion borrowed from taxpayers, with roughly $1.1 billion available 

cash-on-hand and $5.825 billion remaining of its total temporary 

$30.425 billion Treasury borrowing authority. The NFIP’s debt results primarily from its borrowing to pay claims relating to the 

Gulf Coast hurricanes in 2005 and Superstorm Sandy in October 

2012. This borrowing stems from a structural imbalance in how the 

NFIP measures and prices for risk, resulting in only 46 percent of 

premium dollars collected in 2016 being available for the payments 

of claims. With such a low portion of premiums available to pay 

claims, the pressure on the NFIP to borrow from taxpayers increases. The NFIP’s structural budget crisis has required periodic 

legislation to increase its borrowing authority, the most recent example of which occurred in January 2013 when Congress increased 

5 

the NFIP’s borrowing authority by $9.7 billion—from $20.725 billion to its current $30.425 billion level. 

The ‘‘Repeatedly Flooded Communities Preparation Act’’ addresses a long-standing and serious problem with the NFIP: the growing 

number of properties that are repeatedly flooded. As of January 

2016, there were more than 150,000 structures around the country 

classified as ‘‘Repeat Loss Properties’’ (RLP) by FEMA. FEMA estimates that these properties comprise just one percent of those insured by NFIP, but represent 25 to 30 percent of all flood claims. 

The NFIP has $24.6 billion in debt and according to a 2009 report by the Department of Homeland Security’s Inspector General, 

the number of repeatedly flooded properties increases by nearly 

5,000 each year and efforts to mitigate are being outpaced by a factor of 10 to 1. From 1978 through 2011, RLP losses added up to 

more than $12 billion—or approximately half of the NFIP’s debt. 

H.R. 1558, the ‘‘Repeatedly Flooded Communities Preparation 

Act’’ will help to proactively reduce flood risk rather than simply 

repeatedly rebuilding properties. Specifically, H.R. 1558 would require communities with a significant number of properties that 

have repeatedly flooded to: (1) review and analyze data on local 

properties and public infrastructure that flood repeatedly to determine the specific areas that should be priorities for voluntary 

buyouts, drainage improvements, or other mitigation efforts; (2) develop and implement plans for lowering flood risk in these problem 

areas; (3) share plans and reports with the public; and (4) submit 

these plans as well as reports on progress to FEMA. 

Additionally, the ‘‘Repeatedly Flooded Communities Preparation 

Act’’ sets deadlines for FEMA to develop criteria to govern these repeat loss plans and determine any appropriate sanctions for failure 

to act. It requires FEMA to report to Congress every two years on 

implementation progress. 

H.R. 1558 also includes a provision to expedite FEMA’s implementation of a policyholder monthly payment option. The Homeowner Flood Insurance Affordability Act of 2014 (P.L. 113–89) required FEMA to offer monthly installment payments for premiums 

and provided the agency 18 months to implement the requirement. 

This provision will accelerate an implementation process that is behind schedule and provide that policyholders be charged no more 

than $25 during the first year after enactment; after the 12 month 

period, policyholders will be charged an administrative fee that reflects actual costs, pursuant to a Government Accountability Office 

study. 

HEARINGS

The Committee on Financial Services’ Subcommittee on Housing 

& Insurance held two hearings examining matters relating to H.R. 

1558 on March 9, 2017 and March 16, 2017. The Committee on Financial Services held a hearing examining matters relating to H.R. 

1558 on June 7, 2017. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

June 15, 2017 to consider H.R. 1558. The Committee ordered H.R. 

1558 to be reported favorably to the House, as amended, by voice 

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vote, a quorum being present. Before the motion to report was offered, the Committee adopted an amendment offered by Mr. Royce, 

as amended by an amendment offered by Mrs. Maloney, by voice 

vote and adopted an amendment offered by Mr. David Scott of 

Georgia by voice vote, a quorum being present. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. There were no recorded votes for H.R. 1558. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the findings and recommendations of the Committee based on oversight activities under clause 2(b)(1) of rule X 

of the Rules of the House of Representatives, are incorporated in 

the descriptive portions of this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee states that H.R. 1558 will protect taxpayers and policyholders by encouraging communities to 

mitigate properties that are at risk of flooding. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

7 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, August 9, 2017. 

Hon. JEB HENSARLING, 

Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 1558, the Repeatedly 

Flooded Communities Preparation Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Robert Reese. 

Sincerely, 

MARK P. HADLEY

(For Keith Hall). 

Enclosure. 

H.R. 1558—Repeatedly Flooded Communities Preparation Act 

Summary: The Federal Emergency Management Agency (FEMA) 

provides flood insurance coverage to property owners through the 

National Flood Insurance Program (NFIP). Property owners who 

buy coverage through the NFIP pay annual premiums, which are 

credited to the National Flood Insurance Fund and used to pay 

flood damage claims submitted by policyholders. Those collections 

and payments are not subject to annual appropriation. 

H.R. 1558 would direct FEMA to require certain communities 

that participate in the NFIP to implement community-wide plans 

for flood mitigation. H.R. 1558 also would require FEMA to allow 

certain NFIP policyholders to pay their annual premiums in 

monthly installments. 

CBO estimates that implementing the bill would have no significant effect on spending subject to appropriation in any year. Enacting H.R. 1558 would affect direct spending; therefore, pay-as-yougo procedures apply. However, CBO estimates that, on net, those 

effects would not be significant. Enacting the bill would not affect 

revenues. 

CBO estimates that enacting H.R. 1558 would not significantly 

increase net direct spending or on-budget deficits in any of the four 

consecutive 10-year periods beginning in 2028. 

H.R. 1558 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no costs on state, local, or tribal governments. 

Estimated cost to the Federal Government: The costs of this legislation fall within budget function 450 (community and regional 

development). Enacting the bill could affect claims and premiums 

but any such effects would be offset by changes in collections or 

costs, so that the net effect would not be significant. 

Basis of estimate: For this estimate, CBO assumes that H.R. 

1558 will be enacted near the end of fiscal year 2017. 

Community accountability for repetitively flooded areas 

H.R. 1558 would direct FEMA to create regulations that requires 

communities that choose to participate in the NFIP to implement 

mitigation plans designed to reduce the risk and cost of potential 

8 

damage from floods in future years. The regulations would be 

aimed at communities that have: • 50 or more repetitive loss structures, • 5 or more severe repetitive loss structures, or • A public or private nonprofit facility that has been damaged by flooding and received federal assistance to repair it in 

the past 10 years. 

H.R. 1558 would define a ‘‘repetitive loss structure’’ as a structure that has had, within a 10-year period, two or more flood 

claims totaling over $1,000 each. A severe repetitive loss structure 

is currently defined as: • A structure that has received four or more separate NFIP 

claims payments, with the amount of each such payment exceeding $5,000, or • A structure that has received two separate NFIP claims 

payments with the cumulative amount surpassing the value of 

the structure. 

Under the bill, regulations would include appropriate sanctions 

for communities that do not adequately implement a mitigation 

plan. Such sanctions would be left to the discretion of FEMA. 

Based on the cost to FEMA of implementing similar regulations 

and on the types of sanctions likely to be adopted, CBO estimates 

that increased administrative costs under this section would total 

less than $500,000 in any year. Such spending would be subject to 

the availability of appropriated funds. 

CBO has no basis to evaluate the extent or the effectiveness of 

any mitigation measures that may be adopted by communities as 

a result of the proposed regulations. Depending on the level of state 

and local community spending on the targeted properties, such 

mitigation measures could significantly reduce the cost of future 

NFIP claims. However, adopting measures to make individual 

structures more resilient to flood damage also would reduce the 

risk-based premiums that policyholders pay to FEMA for insurance. Furthermore, because implementing flood-mitigation measures for individual properties is costly for local communities, 

whether or not those communities would devote significant resources to this effort is unclear. Therefore, CBO expects that the 

program’s net costs would be little changed by this provision. 

Monthly installment payment of premiums 

Under current law, FEMA must provide certain NFIP policyholders who are not required to escrow their premiums and fees for 

flood insurance the option to pay premiums on either an annual or 

monthly basis. Because FEMA has not issued regulations implementing that requirement, all NFIP policyholders not subject to escrow requirements currently pay their premiums annually. CBO 

estimates that under current law only a small number of policies 

could pay premiums on a monthly basis because most properties 

are subject to mortgages with a lending institution that require 

them to escrow their insurance payments. The institutions remit 

those premiums directly to FEMA on the homeowners’ behalf, usually on an annual basis. 

H.R. 1558 would direct FEMA to implement a pilot program to 

allow eligible policyholders to pay premiums in monthly installments without first implementing the relevant regulations. The 

9 

pilot program would last for one year before phasing into a regular 

program. 

During the pilot program FEMA would be authorized to charge 

policyholders who opt to pay their premiums on a monthly basis a 

fee of up to $25 a year. That fee would be used to offset any administrative costs associated with collecting, storing, and processing 

payments on a monthly basis. After the first year, FEMA would be 

authorized to adjust the fee to cover the total added cost of collecting premiums on a monthly basis for all eligible policyholders 

who choose to pay on such a schedule. 

If large numbers of eligible policyholders elected to pay their premiums on a monthly basis the timing of when insurance premiums 

are collected would change, but there would otherwise be no significant effect on the cost of insurance claims or purchase of insurance. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. NFIP collections are classified as offsetting receipts (a reduction in direct 

spending). Enacting H.R. 1558 could change collections from policyholders, but any such collections would be offset by additional administrative costs. Therefore, CBO estimates that the bill’s net effect on direct spending would be insignificant in 2018 and negligible each year thereafter. Enacting H.R. 1558 would not affect 

revenues. 

Increase in long-term direct spending and deficits: CBO estimates that enacting the bill would not significantly increase net direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2028. 

Intergovernmental and private-sector impact: H.R. 1558 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would impose no costs on state, local, or tribal governments. 

Estimate prepared by: Federal costs: Robert Reese; Impact on 

state, local, and tribal governments: Rachel Austin; Impact on the 

private sector: Logan Smith. 

Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of the section 102(b)(3) of the 

Congressional Accountability Act. 

10 

EARMARK IDENTIFICATION

H.R. 1558 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to section 3(c)(5) of rule XIII, the Committee states 

that no provision of H.R. 1558 establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included in any report 

from the Government Accountability Office to Congress pursuant to 

section 21 of Public Law 111–139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017), the 

Committee states that H.R. 1558 contains no directed rulemaking. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Sec. 1 Short title 

This section cites H.R. 1558 as the ‘‘Repeatedly Flooded Communities Preparation Act.’’ 

Sec. 2 Community accountability for repetitively flooded areas 

The Administrator shall require any covered community to (1) 

identify the areas within the community where properties or flooddamaged facilities are located to determine areas repeatedly damaged by floods and to assess the continuing risks to such areas; (2) 

develop a community-specific plan for mitigating continuing flood 

risks to such repetitively flooded areas and to submit such plan 

and plan updates to the Administrator; (3) implement the plan; 

and (4) make such plan and plan updates in reducing flood risk 

available to the public. 

Any plans developed may be incorporated into flood and hazard 

mitigation plans developed by the community. 

To assist communities under this bill, the Administrator shall, 

upon request provide covered communities with appropriate data 

regarding the property addresses and dates of claims associated 

with insured properties within the community. In making determinations regarding financial assistance, the Administrator may 

consider the extent to which a community has complied with this 

bill and is working to remedy problems with addressing repeatedly 

flooded areas. 

Communities that fail to develop or make sufficient progress in 

executing their plan would be subject to appropriate sanctions, as 

determined by FEMA. Before imposing any sanctions, the Administrator shall provide the covered community involved with notice of 

the non-compliance that could result in the imposition of sanctions, 

and the notice shall include recommendations for actions to bring 

the covered community into compliance. In determining appropriate sanctions to impose, the Administrator shall consider the resources available to the covered community, including Federal 

11 

funding, the portion of the covered community that lies within an 

area having special flood hazards, and other factors that make it 

difficult for the covered community to conduct mitigation activities 

for existing flood-prone structures. 

A covered community is defined as a community that is participating in the National Flood Insurance Program and (1) has 50 or 

more repetitive loss structures for each of which, during any 10 

year period, two or more claims for payments under flood insurance 

coverage have been made with a cumulative amount exceeding 

$1,000; (2) has 5 or more severe repetitive loss structures for which 

mitigation activities have not been conducted; or (3) has a public 

facility or a private non-profit facility that has received federal disaster assistance for repair, restoration, reconstruction, or replacement in connection with more than one flooding event in the most 

recent 10-year period. 

No later than the expiration of the six (6) year period after enactment, and not less than every two (2) years thereafter, the Administrator shall submit a report to Congress regarding the progress 

of implement plans developed pursuant to this bill. 

Sec. 3 Monthly installment payment of premiums 

Until the Administrator promulgates regulation, the Administrator may adopt policies and procedures to finalize the implementation of the monthly installment payment of premiums provision, 

initially required by the Homeowner Flood Insurance Affordability 

Act of 2014. For the first year after enactment of this section, the 

Administrator may charge policyholders who choose to make 

monthly installment payments a fee not to exceed $25 annually. No 

later than 6 months after the date of enactment, the Comptroller 

General shall submit a report to Congress that sets forth all of the 

costs associated with the monthly payment premiums. Twelve 

months after the bill’s enactment, the Administrator may adjust 

the fee charged annually to cover the total cost of the monthly collection of premiums as determined by the report. On an annual 

basis, the Administrator shall report to Congress the ongoing costs 

associated with the monthly payment of premiums. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

NATIONAL FLOOD INSURANCE ACT OF 1968 

* * * * * * * 

TITLE XIII—NATIONAL FLOOD INSURANCE 

* * * * * * * 

CHAPTER I—THE NATIONAL FLOOD INSURANCE PROGRAM 

* * * * * * * 

12 

ESTIMATES OF PREMIUM RATES

SEC. 1307. (a) The Administrator is authorized to undertake and 

carry out such studies and investigations and receive or exchange 

such information as may be necessary to estimate, and shall from 

time to time estimate, on an area, subdivision, or other appropriate 

basis— 

(1) the risk premium rates for flood insurance which— 

(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 

(B) including— 

(i) the applicable operating costs and allowances set 

forth in the schedules prescribed under section 1311 

and reflected in such rates, 

(ii) the costs associated with the monthly collection of 

premiums provided for in section 1308(g) (42 U.S.C. 

4015(g)), but only if such costs exceed the operating 

costs and allowances set forth in clause (i) of this subparagraph, and any administrative expenses (or portion of such expenses) of carrying out the flood insurance program which, in his discretion, should properly 

be reflected in such rates, 

(iii) any remaining administrative expenses incurred 

in carrying out the flood insurance and floodplain 

management programs (including the costs of mapping 

activities under section 1360) not included under 

clause (ii), which shall be recovered by a fee charged 

to policyholders and such fee shall not be subject to 

any agents’ commissions, company expense allowances, or State or local premium taxes, and 

(iv) all costs, as prescribed by principles and standards of practice in ratemaking adopted by the American Academy of Actuaries and the Casualty Actuarial 

Society, including— 

(I) an estimate of the expected value of future 

costs, 

(II) all costs associated with the transfer of risk, 

and 

(III) the costs associated with an individual risk 

transfer with respect to risk classes, as defined by 

the Administrator, 

would be required in order to make such insurance available 

on an actuarial basis for any types and classes of properties for 

which insurance coverage is available under section 1305(a) (or 

is recommended to the Congress under section 1305(b)); 

(2) the rates, if less than the rates estimated under paragraph (1), which would be reasonable, would encourage prospective insureds to purchase flood insurance, and would be 

consistent with the purposes of this title, and which, together 

13 

with a fee charged to policyholders that shall not be not subject 

to any agents’ commission, company expenses allowances, or 

State or local premium taxes, shall include any administrative 

expenses incurred in carrying out the flood insurance and 

floodplain management programs (including the costs of mapping activities under section 1360), except that the Administrator shall not estimate rates under this paragraph for— 

(A) any residential property which is not the primary 

residence of an individual; 

(B) any severe repetitive loss property; 

(C) any property that has incurred flood-related damage 

in which the cumulative amounts of payments under this 

title equaled or exceeded the fair market value of such 

property; 

(D) any business property; or 

(E) any property which on or after the date of enactment 

of the Biggert-Waters Flood Insurance Reform Act of 2012 

has experienced or sustained— 

(i) substantial damage exceeding 50 percent of the 

fair market value of such property; or 

(ii) substantial improvement exceeding 50 percent of 

the fair market value of such property; and 

(3) the extent, if any, to which federally assisted or other 

flood protection measures initiated after the date of the enactment of this title affect such rates. 

(b) In carrying out subsection (a), the Administrator shall, to the 

maximum extent feasible and on a reimbursable basis, utilize the 

services of the Department of the Army, the Department of the Interior, The Department of Agriculture, the Department of Commerce, and the Tennessee Valley Authority, and, as appropriate, 

other Federal departments or agencies, and for such purposes may 

enter into agreements or other appropriate arrangements with any 

persons. 

(c) The Administrator shall give priority to conducting studies 

and investigations and making estimates under this section in 

those States or areas (or subdivisions thereof) which he has determined have evidenced a positive interest in securing flood insurance coverage under the flood insurance program. 

(d) Notwithstanding any other provision of law, any structure existing on the date of enactment of the Flood Disaster Protection Act 

of 1973 and located within Avoyelles, Evangeline, Rapides, or Saint 

Landry Parish in the State of Louisiana, which the Administrator 

determines is subject to additional flood hazards as a result of the 

construction or operation of the Atchafalaya Basin Levee System, 

shall be eligible for flood insurance under this title (if and to the 

extent it is eligible for such insurance under the other provisions 

of this title) at premium rates that shall not exceed those which 

would be applicable if such additional hazards did not exist. 

(e) Notwithstanding any other provision of law, any community 

that has made adequate progress, acceptable to the Administrator, 

on the construction or reconstruction of a flood protection system 

which will afford flood protection for the one-hundred-year frequency flood as determined by the Administrator, shall be eligible 

for flood insurance under this title (if and to the extent it is eligible 

for such insurance under the other provisions of this title) at preVerDate Sep 11 2014 03:18 Aug 16, 2017 Jkt 069006 PO 00000 Frm 00013 Fmt 6659 Sfmt 6601 E:\HR\OC\HR276.XXX HR276
14 

mium rates not exceeding those which would be applicable under 

this section if such flood protection system had been completed. 

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.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. 

(f) 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. Except as provided in this subsection, in such a community, flood insurance shall be made available to those properties impacted by the disaccreditation of the 

flood protection system at premium rates that do not exceed those 

which would be applicable to any property located in an area of 

special flood hazard, the construction of which was started prior to 

the effective date of the initial Flood Insurance Rate Map published 

by the Administrator for the community in which such property is 

located. A revised Flood Insurance Rate Map shall be prepared for 

the community to delineate as Zone AR the areas of special flood 

hazard that result from the disaccreditation of the flood protection 

system. A community will be considered to be in the process of restoration if— 

(1) the flood protection system has been deemed restorable 

by a Federal agency in consultation with the local project sponsor; 

(2) a minimum level of flood protection is still provided to the 

community by the disaccredited system; and 

(3) restoration of the flood protection system is scheduled to 

occur within a designated time period and in accordance with 

a progress plan negotiated between the community and the 

Federal Emergency Management Agency. 

Communities that the Administrator of the Federal Emergency 

Management Agency determines to meet the criteria set forth in 

paragraphs (1) and (2) as of January 1, 1992, shall not be subject 

to revised Flood Insurance Rate Maps that contravene the intent 

of this subsection. Such communities shall remain eligible for C 

zone rates for properties located in zone AR for any policy written 

prior to promulgation of final regulations for this section. Floodplain management criteria for such communities shall not require 

the elevation of improvements to existing structures and shall not 

exceed 3 feet above existing grade for new construction, provided 

15 

the base flood elevation based on the disaccredited flood control 

system does not exceed five feet above existing grade, or the remaining new construction in such communities is limited to infill 

sites, rehabilitation of existing structures, or redevelopment of previously developed areas. 

The Administrator of the Federal Emergency Management Agency 

shall develop and promulgate regulations to implement this subsection, including minimum floodplain management criteria, within 

24 months after the date of enactment of this subsection. 

(g) NO EXTENSION OF SUBSIDY TO NEW POLICIES OR LAPSED POLICIES.—The Administrator shall not provide flood insurance to prospective insureds at rates less than those estimated under subsection (a)(1), as required by paragraph (2) of that subsection, for— 

(1) any policy under the flood insurance program that has 

lapsed in coverage,, 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; or 

(2) any prospective insured who refuses to accept any offer 

for mitigation assistance by the Administrator (including an 

offer to relocate), including an offer of mitigation assistance— 

(A) following a major disaster, as defined in section 102 

of the Robert T. Stafford Disaster Relief and Emergency 

Assistance Act (42 U.S.C. 5122); or 

(B) in connection with— 

(i) a repetitive loss property; or 

(ii) a severe repetitive loss property. 

(h) DEFINITION.—In this section, the term ‘‘severe repetitive loss 

property’’ has the following meaning: 

(1) SINGLE-FAMILY PROPERTIES.—In the case of a property 

consisting of 1 to 4 residences, such term means a property 

that— 

(A) is covered under a contract for flood insurance made 

available under this title; and 

(B) has incurred flood-related damage— 

(i) for which 4 or more separate claims payments 

have been made under flood insurance coverage under 

this chapter, with the amount of each such claim exceeding $5,000, and with the cumulative amount of 

such claims payments exceeding $20,000; or 

(ii) for which at least 2 separate claims payments 

have been made under such coverage, with the cumulative amount of such claims exceeding the value of 

the property. 

(2) MULTIFAMILY PROPERTIES.—In the case of a property consisting of 5 or more residences, such term shall have such 

meaning as the Director shall by regulation provide. 

ESTABLISHMENT OF CHARGEABLE PREMIUM RATES

SEC. 1308. (a) On the basis of estimates made under section 1307 

and such other information as may be necessary, the Administrator 

shall from time to time prescribe, after providing notice— 

(1) chargeable premium rates for any types and classes of 

properties for which insurance coverage shall be available 

16 

under section 1305 (at less than the estimated risk premium 

rates under section 1307(a)(1), where necessary), and 

(2) the terms and conditions under which, and the areas (including subdivisions thereof) within which such rates shall 

apply. 

(b) Such rates shall, insofar as practicable, be— 

(1) based on a consideration of the respective risks involved, 

including differences in risks due to land use measures, floodproofing, flood forecasting, and similar measures; 

(2) adequate, on the basis of accepted actuarial principles, to 

provide reserves for anticipated losses, or if less than such 

amount consistent with the objective of making flood insurance 

available where necessary at reasonable rates so as to encourage prospective insureds to purchase such insurance and with 

the purposes of this title; 

(3) adequate, together with the fee under paragraph 

(1)(B)(iii) or (2) of section 1307(a), to provide for any administrative expenses of the flood insurance and floodplain management programs (including the costs of mapping activities under 

section 1360); 

(4) stated so as to reflect the basis for such rates, including 

the differences (if any) between the estimated risk premium 

rates under section 1307(a)(1) and the estimated rates under 

section 1307(a)(2); and 

(5) adequate, on the basis of accepted actuarial principles, to 

cover the average historical loss year obligations incurred by 

the National Flood Insurance Fund. 

(c) ACTUARIAL RATE PROPERTIES.—Subject only to the limitations 

provided under paragraphs (1) and (2), the chargeable rate shall 

not be less than the applicable estimated risk premium rate for 

such area (or subdivision thereof) under section 1307(a)(1) with respect to the following properties: 

(1) POST-FIRM PROPERTIES.—Any property the construction or 

substantial improvement of which the Administrator determines has been started after December 31, 1974, or started 

after the effective date of the initial rate map published by the 

Administrator under paragraph (2) of section 1360 for the area 

in which such property is located, whichever is later, except 

that the chargeable rate for properties under this paragraph 

shall be subject to the limitation under subsection (e). 

(2) CERTAIN LEASED COASTAL AND RIVER PROPERTIES.—Any 

property leased from the Federal Government (including residential and nonresidential properties) that the Administrator 

determines is located on the river-facing side of any dike, levee, 

or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure. 

(d) With respect to any chargeable premium rate prescribed 

under this section, a sum equal to the portion of the rate that covers any administrative expenses of carrying out the flood insurance 

and floodplain management programs which have been estimated 

under paragraphs (1)(B)(ii) and (1)(B)(iii) of section 1307(a) or paragraph (2) of such section (including the fees under such paragraphs), shall be paid to the Administrator. The Administrator 

shall deposit the sum in the National Flood Insurance Fund established under section 1310. 

17 

(e) ANNUAL LIMITATION ON PREMIUM INCREASES.—Except with 

respect to properties described under paragraph (2) of subsection 

(c), and notwithstanding any other provision of this title— 

(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; 

(3) the chargeable risk premium rates for flood insurance 

under this title for any properties within any single risk classification may not be increased by an amount that would result 

in the average of such rate increases for properties within the 

risk classification during any 12-month period exceeding 15 

percent of the average of the risk premium rates for properties 

within the risk classification upon the commencement of such 

12-month period; and 

(4) the chargeable risk premium rates for flood insurance 

under this title for any properties described in subparagraphs 

(A) through (E) of section 1307(a)(2) shall be increased by 25 

percent each year, until the average risk premium rate for 

such properties is equal to the average of the risk premium 

rates for properties described under paragraph (3). 

(f) ADJUSTMENT OF PREMIUM.—Notwithstanding any other provision of law, if the Administrator determines that the holder of a 

flood insurance policy issued under this Act is paying a lower premium than is required under this section due to an error in the 

flood plain determination, the Administrator may only prospectively charge the higher premium rate. 

ø(g) FREQUENCY OF PREMIUM COLLECTION.—With respect¿ (g) 

FREQUENCY OF PREMIUM COLLECTION.— (1) OPTIONS.—With respect to any chargeable premium rate 

prescribed under this section, the Administrator shall provide 

policyholders that are not required to escrow their premiums 

and fees for flood insurance as set forth under section 102 of 

18 

the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) 

with the option of paying their premiums annually or monthly. 

(2) MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.— (A) EXEMPTION FROM RULEMAKING.—Until such time as 

the Administrator promulgates regulations implementing 

paragraph (1) of this subsection, the Administrator may 

adopt policies and procedures, notwithstanding any other 

provisions of law and in alignment and consistent with existing industry escrow and servicing standards, necessary 

to implement such paragraph without undergoing notice 

and comment rulemaking and without conducting regulatory analyses otherwise required by statute, regulation, or 

Executive order. 

(B) PILOT PROGRAM.—The Administrator may initially 

implement paragraph (1) of this subsection as a pilot program that provides for a gradual phase-in of implementation. 

(C) POLICYHOLDER PROTECTION.—The Administrator 

may— 

(i) during the 12-month period beginning on the date 

of the enactment of this subparagraph, charge policyholders choosing to pay premiums in monthly installments a fee for the total cost of the monthly collection 

of premiums not to exceed $25 annually; and 

(ii) after the expiration of the 12-month period referred to in clause (i), adjust the fee charged annually 

to cover the total cost of the monthly collection of premiums as determined by the report submitted pursuant 

to subparagraph (D). 

(D) REPORT.—Not later than six months after the date of 

the enactment of this Act, the Comptroller General shall 

submit a report to the Committee on Financial Services of 

the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, that sets 

forth all of the costs associated with the monthly payment 

of premiums, including any up-front costs associated with 

infrastructure development, the impact on all policyholders 

including those that exercise the option to pay monthly and 

those that do not, options for minimizing the costs, particularly the costs to policyholders, and the feasibility of adopting practices that serve to minimize costs to policyholders 

such as automatic payments and electronic payments. 

(E) ANNUAL REPORTS.—On an annual basis, the Administrator shall report to the Committee on Financial Services 

of the House of Representatives and the Committee on 

Banking, Housing, and Urban Affairs of the Senate the ongoing costs associated with the monthly payment of premiums. 

(h) RULE OF CONSTRUCTION.—For purposes of this section, the 

calculation of an ‘‘average historical loss year’’— 

(1) includes catastrophic loss years; and 

(2) shall be computed in accordance with generally accepted 

actuarial principles. 

(i) RATES FOR PROPERTIES NEWLY MAPPED INTO AREAS WITH SPECIAL FLOOD HAZARDS.—Notwithstanding subsection (f), the preVerDate Sep 11 2014 03:18 Aug 16, 2017 Jkt 069006 PO 00000 Frm 00018 Fmt 6659 Sfmt 6601 E:\HR\OC\HR276.XXX HR276
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mium 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. 

(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. 

(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)). 

(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. 

(m) PROTECTION OF SMALL BUSINESSES, NON-PROFITS, HOUSES

OF WORSHIP, AND RESIDENCES.— (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 

20 

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. 

* * * * * * * 

CHAPTER III—COORDINATION OF FLOOD INSURANCE WITH 

LAND-MANAGEMENT PROGRAMS IN FLOOD-PRONE AREAS 

* * * * * * * 

CRITERIA FOR LAND MANAGEMENT AND USE

SEC. 1361. (a) The Administrator is authorized to carry out studies and investigations, utilizing to the maximum extent practicable 

the existing facilities and services of other Federal departments or 

agencies, and State and local governmental agencies, and any other 

organizations, with respect to the adequacy of State and local 

measures in flood-prone areas as to land management and use, 

flood control, flood zoning, and flood damage prevention, and may 

enter into any contracts, agreements or other appropriate arrangements to carry out such authority. 

(b) Such studies and investigations shall include, but not be limited to, laws, regulations or ordinances relating to encroachments 

and obstructions on stream channels and floodways, the orderly development and use of flood plains of rivers or streams, floodway encroachment lines, and flood plain zoning, building codes, building 

permits, and subdivision or other building restrictions. 

(c) On the basis of such studies and investigations, and such 

other information as he deems necessary, the Administrator shall 

from time to time develop comprehensive critera designed to encourage, where necessary, the adoption of adequate State and local 

measures which, to the maximum extent feasible, will— 

(1) construct the development of land which is exposed to 

flood damage where appropriate, 

(2) guide the development of proposed construction away 

from locations which are threatened by flood hazards, 

(3) assist in reducing damage caused by floods, and 

(4) otherwise improve the long-range land management and 

use of flood prone areas, 

and he shall work closely with and provide any necessary technical 

assistance to State, interstate, and local governmental agencies, to 

encourage the application of such criteria and the adoption and enforcement of such measures. 

(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 

21 

premium rates for flood insurance coverage under the National 

Flood Insurance Program. 

(e) COMMUNITY ACCOUNTABILITY FOR REPETITIVELY DAMAGED

AREAS.— 

(1) IN GENERAL.—The Administrator shall, by regulation, require any covered community (as such term is defined in paragraph (5))— 

(A) to identify the areas within the community where 

properties described in paragraph (5)(B) or flood-damaged 

facilities are located to determine areas repeatedly damaged by floods and to assess, with assistance from the Administrator, the continuing risks to such areas; 

(B) to develop a community-specific plan for mitigating 

continuing flood risks to such repetitively flooded areas and 

to submit such plan and plan updates to the Administrator 

at appropriate intervals; 

(C) to implement such plans; 

(D) to make such plan, plan updates, and reports on 

progress in reducing flood risk available to the public, subject to section 552a of title 5, United States Code. 

(2) INCORPORATION INTO EXISTING PLANS.—Plans developed 

pursuant to paragraph (1) may be incorporated into mitigation 

plans developed under section 1366 of this Act (42 U.S.C. 

4104c) and hazard mitigation plans developed under section 

322 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5165). 

(3) ASSISTANCE TO COMMUNITIES.— 

(A) DATA.—To assist communities in preparation of plans 

required under paragraph (1), the Administrator shall, 

upon request, provide covered communities with appropriate data regarding the property addresses and dates of 

claims associated with insured properties within the community. 

(B) MITIGATION GRANTS.—In making determinations regarding financial assistance under the authorities of this 

Act, the Administrator may consider the extent to which a 

community has complied with this subsection and is working to remedy problems with addressing repeatedly flooded 

areas. 

(4) SANCTIONS.— 

(A) IN GENERAL.—The Administrator shall, by regulations issued in accordance with the procedures established 

under section 553 of title 5, United States Code, regarding 

substantive rules, provide appropriate sanctions for covered 

communities that fail to comply with the requirements 

under this subsection or to make sufficient progress in reducing the flood risks to areas in the community that are 

repeatedly damaged by floods. 

(B) NOTICE.—Before imposing any sanction pursuant to 

this paragraph, the Administrator shall provide the covered 

community involved with notice of the non-compliance that 

could result in the imposition of sanctions, which shall include recommendations for actions to bring the covered 

community into compliance. 

22 

(C) CONSIDERATIONS.—In determining appropriate sanctions to impose under this paragraph, the Administrator 

shall consider the resources available to the covered community involved, including Federal funding, the portion of 

the covered community that lies within an area having special flood hazards, and other factors that make it difficult 

for the covered community to conduct mitigation activities 

for existing flood-prone structures. 

(5) COVERED COMMUNITY.—For purposes of this subsection, 

the term ‘‘covered community’’ means a community— 

(A) that is participating, pursuant to section 1315, in the 

national flood insurance program; and 

(B) within which are located— 

(i) 50 or more repetitive loss structures for each of 

which, during any 10-year period, two or more claims 

for payments under flood insurance coverage have been 

made with a cumulative amount exceeding $1,000; 

(ii) 5 or more severe repetitive loss structures (as 

such term is defined in section 1366(h)) for which mitigation activities meeting the standards for approval 

under section 1366(c)(2)(A) have not been conducted; or 

(iii) a public facility or a private nonprofit facility 

(as such terms are as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), that has received assistance 

for repair, restoration, reconstruction, or replacement 

under section 406 of the Robert T. Stafford Disaster 

Relief and Emergency Assistance Act (42 U.S.C. 5172) 

in connection with more than one flooding event in the 

most recent 10-year period. 

(6) REPETITIVE-LOSS STRUCTURE.—For purposes of this subsection, the term ‘‘repetitive loss structure’’ has the meaning 

given such term in section 1370 (42 U.S.C. 4121). 

(7) REPORTS TO CONGRESS.—Not later than the expiration of 

the 6-year period beginning upon the date of the enactment of 

this subsection, and not less than every 2 years thereafter, the 

Administrator shall submit a report to the Congress regarding 

the progress in implementing plans developed pursuant to paragraph (1)(B). 

* * * * * * * 

Æ