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[House Report 115-276]
[From the U.S. Government Publishing Office]

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 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:
  ``(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.
    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 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 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:

                                     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-you-go 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 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 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.

                         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 
flood-damaged 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 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

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TITLE XIII--NATIONAL FLOOD INSURANCE

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CHAPTER I--THE NATIONAL FLOOD INSURANCE PROGRAM

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                       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 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 premium 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 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 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, flood-proofing, 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.
  (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.
  [(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 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 premium 
rate for flood insurance under this title that is purchased on 
or after the date of the enactment of this subsection--
          (1) on a property located in an area not previously 
        designated as having special flood hazards and that, 
        pursuant to any issuance, revision, updating, or other 
        change in a flood insurance map, becomes designated as 
        such an area; and
          (2) where such flood insurance premium rate is 
        calculated under subsection (a)(1) of section 1307 (42 
        U.S.C. 4014(a)(1)),
shall for the first policy year be the preferred risk premium 
for the property and upon renewal shall be calculated in 
accordance with subsection (e) of this section until the rate 
reaches the rate calculated under subsection (a)(1) of section 
1307.
  (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 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.

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   CHAPTER III--COORDINATION OF FLOOD INSURANCE WITH LAND-MANAGEMENT 
PROGRAMS IN FLOOD-PRONE AREAS

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                  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 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.
                  (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).

           *       *       *       *       *       *       *

                                  [all]
```