PUBLIC LAW 113–89—MAR. 21, 2014 

HOMEOWNER FLOOD INSURANCE 

AFFORDABILITY ACT OF 2014 


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128 STAT. 1020 PUBLIC LAW 113–89—MAR. 21, 2014 

Public Law 113–89 

113th Congress 

An Act 

To delay the implementation of certain provisions of the Biggert-Waters Flood 

Insurance Reform Act of 2012, and for other purposes. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Homeowner 

Flood Insurance Affordability Act of 2014’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act 

is as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. Definitions. 

Sec. 3. Repeal of certain rate increases. 

Sec. 4. Restoration of grandfathered rates. 

Sec. 5. Requirements regarding annual rate increases. 

Sec. 6. Clarification of rates for properties newly mapped into areas with special 

flood hazards. 

Sec. 7. Premiums and reports. 

Sec. 8. Annual premium surcharge. 

Sec. 9. Draft affordability framework. 

Sec. 10. Risk transfer. 

Sec. 11. Monthly installment payment for premiums. 

Sec. 12. Optional high-deductible policies for residential properties. 

Sec. 13. Exclusion of detached structures from mandatory purchase requirement. 

Sec. 14. Accounting for flood mitigation activities in estimates of premium rates. 

Sec. 15. Home improvement fairness. 

Sec. 16. Affordability study and report. 

Sec. 17. Flood insurance rate map certification. 

Sec. 18. Funds to reimburse homeowners for successful map appeals. 

Sec. 19. Flood protection systems. 

Sec. 20. Quarterly reports regarding Reserve Fund ratio. 

Sec. 21. Treatment of floodproofed residential basements. 

Sec. 22. Exemption from fees for certain map change requests. 

Sec. 23. Study of voluntary community-based flood insurance options. 

Sec. 24. Designation of flood insurance advocate. 

Sec. 25. Exceptions to escrow requirement for flood insurance payments. 

Sec. 26. Flood mitigation methods for buildings. 

Sec. 27. Mapping of non-structural flood mitigation features. 

Sec. 28. Clear communications. 

Sec. 29. Protection of small businesses, non-profits, houses of worship, and residences. 

Sec. 30. Mapping. 

Sec. 31. Disclosure. 

SEC. 2. DEFINITIONS. 

For purposes of this title, the following definitions shall apply: 

(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 

Administrator of the Federal Emergency Management Agency. 

(2) NATIONAL FLOOD INSURANCE PROGRAM.—The term 

‘‘National Flood Insurance Program’’ means the program established under the National Flood Insurance Act of 1968 (42 

U.S.C. 4001 et seq.). 

42 USC 4005. 

42 USC 4001 

note. 

Homeowner 

Flood Insurance 

Affordability Act 

of 2014. 

Mar. 21, 2014 

[H.R. 3370] 


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PUBLIC LAW 113–89—MAR. 21, 2014 128 STAT. 1021 

SEC. 3. REPEAL OF CERTAIN RATE INCREASES. 

(a) REPEAL.— (1) IN GENERAL.—Section 1307(g) of the National Flood 

Insurance Act of 1968 (42 U.S.C. 4014(g)) is amended— 

(A) by striking paragraphs (1) and (2); 

(B) in paragraph (3), by striking ‘‘as a result of the 

deliberate choice of the holder of such policy’’ and inserting 

‘‘, 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’’; and 

(C) by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively. 

(2) EFFECTIVE DATE.—The Administrator shall make available such rate tables, as necessary to implement the amendments made by paragraph (1) as if it were enacted as part 

of the Biggert-Waters Flood Insurance Reform Act of 2012 

(Public Law 112–141; 126 Stat. 957). 

(3) IMPLEMENTATION, COORDINATION, AND GUIDANCE.— (A) FACILITATION OF TIMELY REFUNDS.—To ensure the 

participation of Write Your Own companies (as such term 

is defined in section 100202(a) of the Biggert-Waters Flood 

Insurance Reform Act of 2012 (42 U.S.C. 4004(a)), the 

Administrator and the Federal Emergency Management 

Agency shall consult with Write Your Own companies 

throughout the development of guidance and rate tables 

necessary to implement the provisions of and the amendments made by this Act. 

(B) IMPLEMENTATION AND GUIDANCE.—The Administrator shall issue final guidance and rate tables necessary 

to implement the provisions of and the amendments made 

by this Act not later than eight months following the date 

of the enactment of this Act. Write Your Own companies, 

in coordination with the Federal Emergency Management 

Agency, shall have not less than six months but not more 

than eight months following the issuance of such final 

guidance and rate tables to implement the changes required 

by such final guidance and rate tables. 

(4) REFUND OF EXCESS PREMIUM CHARGES COLLECTED.— 

The Administrator shall refund directly to insureds any premiums for flood insurance coverage under the National Flood 

Insurance Program collected in excess of the rates required 

under the provisions of and amendments made by this section. 

To allow for necessary and appropriate implementation of such 

provisions and amendments, any premium changes necessary 

to implement such provisions and amendments, including any 

such premium refund due to policy holders, which shall be 

paid directly by the National Flood Insurance Program, shall 

not be charged or paid to policyholders by the National Flood 

Insurance Program until after the Administrator issues guidance and makes available such rate tables to implement the 

provisions of and amendments made by this Act. 

(b) ASSUMPTION OF POLICIES AT EXISTING PREMIUM RATES.— 

The Administrator shall provide that the purchaser of a property 

that, as of the date of such purchase, is covered under an existing 

flood insurance policy under this title may assume such existing 

policy and coverage for the remainder of the term of the policy 

Time period. 

Deadline. 

Consultation. 

42 USC 4014 

note. 


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128 STAT. 1022 PUBLIC LAW 113–89—MAR. 21, 2014 

at the chargeable premium rates under such existing policy. Such 

rates shall continue with respect to such property until the 

implementation of subsection (a). 

SEC. 4. RESTORATION OF GRANDFATHERED RATES. 

(a) IN GENERAL.—Section 1308 of the National Flood Insurance 

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

(1) by striking subsection (h); and 

(2) by redesignating subsection (i) as subsection (h). 

(b) EFFECTIVE DATE.—The amendments made by subsection 

(a) shall take effect as if enacted as part of the Biggert-Waters 

Flood Insurance Reform Act of 2012 (Public Law 112–141; 126 

Stat. 957). 

SEC. 5. REQUIREMENTS REGARDING ANNUAL RATE INCREASES. 

Section 1308(e) of the National Flood Insurance Act of 1968 

(42 U.S.C. 4015(e)) is amended— 

(1) in the matter preceding paragraph (1), by striking ‘‘, 

the chargeable risk premium rates for flood insurance under 

this title for any properties’’; 

(2) in paragraph (1), by inserting ‘‘the chargeable risk premium rates for flood insurance under this title for any properties’’ before ‘‘within any’’; 

(3) in paragraph (2), by inserting ‘‘the chargeable risk premium rates for flood insurance under this title for any properties’’ before ‘‘described in’’; 

(4) by redesignating paragraphs (1) and (2), as so amended, 

as paragraphs (3) and (4), respectively; and 

(5) by inserting before paragraph (3), as so redesignated, 

the following new paragraphs: 

‘‘(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;’’; 

Time period. 

42 USC 4015 

note. 


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PUBLIC LAW 113–89—MAR. 21, 2014 128 STAT. 1023 

(6) in paragraph (3) (as so redesignated by paragraph (4) 

of this section), by striking ‘‘20 percent’’ and inserting ‘‘15 

percent’’; and 

(7) in paragraph (4) (as so redesignated) by paragraph 

(4) of this section), by striking ‘‘paragraph (1)’’ and inserting 

‘‘paragraph (3)’’. 

SEC. 6. CLARIFICATION OF RATES FOR PROPERTIES NEWLY MAPPED 

INTO AREAS WITH SPECIAL FLOOD HAZARDS. 

Section 1308 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4015), as amended by the preceding provisions of this Act, 

is further amended by adding at the end the following new subsection: 

‘‘(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.’’. 

SEC. 7. PREMIUMS AND REPORTS. 

Section 1308 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4015), as amended by the preceding provisions of this Act, 

is further amended by adding at the end the following new subsection: 

‘‘(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.’’. 

SEC. 8. ANNUAL PREMIUM SURCHARGE. 

(a) PREMIUM SURCHARGE.—Chapter I of the National Flood 

Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amended by 

inserting after section 1308 the following new section: 

‘‘SEC. 1308A. PREMIUM SURCHARGE. 

‘‘(a) IMPOSITION AND COLLECTION.—The Administrator shall 

impose and collect an annual surcharge, in the amount provided 

in subsection (b), on all policies for flood insurance coverage under 

the National Flood Insurance Program that are newly issued or 

renewed after the date of the enactment of this section. Such 

surcharge shall be in addition to the surcharge under section 

1304(b) and any other assessments and surcharges applied to such 

coverage. 

42 USC 4015a. 


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128 STAT. 1024 PUBLIC LAW 113–89—MAR. 21, 2014 

‘‘(b) AMOUNT.—The amount of the surcharge under subsection 

(a) shall be— 

‘‘(1) $25, except as provided in paragraph (2); and 

‘‘(2) $250, in the case of a policy for any property that 

is— 

‘‘(A) a non-residential property; or 

‘‘(B) a residential property that is not the primary 

residence of an individual. 

‘‘(c) TERMINATION.—Subsections (a) and (b) shall cease to apply 

on the date on which the chargeable risk premium rate for flood 

insurance under this title for each property covered by flood insurance under this title, other than properties for which premiums 

are calculated under subsection (e) or (f) of section 1307 or section 

1336 of this Act (42 U.S.C. 4014, 4056) or under section 100230 

of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 

U.S.C. 4014 note), is not less than the applicable estimated risk 

premium rate under section 1307(a)(1) for such property.’’. 

(b) DEPOSIT IN RESERVE FUND.—Subsection (c) of section 1310A 

of the National Flood Insurance Act of 1968 (42 U.S.C. 4017a) 

is amended by adding at the end the following new paragraph: 

‘‘(4) DEPOSIT OF PREMIUM SURCHARGES.—The Administrator 

shall deposit in the Reserve Fund any surcharges collected 

pursuant to section 1308A.’’. 

SEC. 9. DRAFT AFFORDABILITY FRAMEWORK. 

(a) IN GENERAL.—The Administrator shall prepare a draft 

affordability framework that proposes to address, via programmatic 

and regulatory changes, the issues of affordability of flood insurance 

sold under the National Flood Insurance Program, including issues 

identified in the affordability study required under section 100236 

of the Bigger-Waters Flood Insurance Reform Act of 2012 (Public 

Law 112–141; 126 Stat. 957). 

(b) CRITERIA.—In carrying out the requirements under subsection (a), the Administrator shall consider the following criteria: 

(1) Accurate communication to consumers of the flood risk 

associated with their properties. 

(2) Targeted assistance to flood insurance policy holders 

based on their financial ability to continue to participate in 

the National Flood Insurance Program. 

(3) Individual or community actions to mitigate the risk 

of flood or lower the cost of flood insurance. 

(4) The impact of increases in risk premium rates on 

participation in the National Flood Insurance Program. 

(5) The impact flood insurance rate map updates have 

on the affordability of flood insurance. 

(c) DEADLINE FOR SUBMISSION.—Not later than 18 months after 

the date on which the Administrator submits the affordability study 

referred to in subsection (a), the Administrator shall submit to 

the full Committee on Banking, Housing, and Urban Affairs and 

the full Committee on Appropriations of the Senate and the full 

Committee on Financial Services and the full Committee on Appropriations of the House of Representatives the draft affordability 

framework required under subsection (a). 

(d) INTERAGENCY AGREEMENTS.—The Administrator may enter 

into an agreement with another Federal agency to— 

(1) complete the affordability study referred to in subsection 

(a); or 


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PUBLIC LAW 113–89—MAR. 21, 2014 128 STAT. 1025 

(2) prepare the draft affordability framework required 

under subsection (a). 

(e) RULE OF CONSTRUCTION.—Nothing in this section shall be 

construed to provide the Administrator with the authority to provide 

assistance to homeowners based on affordability that was not available prior to the enactment of the Biggert-Waters Flood Insurance 

Reform Act of 2012 (Public Law 112–141; 126 Stat. 916). 

SEC. 10. RISK TRANSFER. 

Section 1345 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4081) is amended by adding at the end the following new 

subsection: 

‘‘(e) RISK TRANSFER.—The Administrator may secure reinsurance of coverage provided by the flood insurance program from 

the private reinsurance and capital markets at rates and on terms 

determined by the Administrator to be reasonable and appropriate, 

in an amount sufficient to maintain the ability of the program 

to pay claims.’’. 

SEC. 11. MONTHLY INSTALLMENT PAYMENT FOR PREMIUMS. 

(a) IN GENERAL.—Subsection (g) of section 1308 of the National 

Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended by 

striking ‘‘either annually or in more frequent installments’’ and 

inserting ‘‘annually or monthly’’. 

(b) IMPLEMENTATION.—The Administrator shall implement the 

requirement under section 1308(g) of the National Flood Insurance 

Act of 1968, as amended by subsection (a), not later than the 

expiration of the 18-month period beginning on the date of the 

enactment of this Act. 

SEC. 12. OPTIONAL HIGH-DEDUCTIBLE POLICIES FOR RESIDENTIAL 

PROPERTIES. 

Section 1306 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4013) is amended by adding at the end the following new 

subsection: 

‘‘(d) OPTIONAL HIGH-DEDUCTIBLE POLICIES FOR RESIDENTIAL

PROPERTIES.— 

‘‘(1) AVAILABILITY.—In the case of residential properties, 

the Administrator shall make flood insurance coverage available, at the option of the insured, that provides for a lossdeductible for damage to the covered property in various 

amounts, up to and including $10,000. 

‘‘(2) DISCLOSURE.— 

‘‘(A) FORM.—The Administrator shall provide the 

information described in subparagraph (B) clearly and 

conspicuously on the application form for flood insurance 

coverage or on a separate form, segregated from all unrelated information and other required disclosures. 

‘‘(B) INFORMATION.—The information described in this 

subparagraph is— 

‘‘(i) information sufficient to inform the applicant 

of the availability of the coverage option required by 

paragraph (1) to applicants for flood insurance coverage; and 

‘‘(ii) a statement explaining the effect of a lossdeductible and that, in the event of an insured loss, 

the insured is responsible out-of-pocket for losses to 

the extent of the deductible selected.’’. 

42 USC 4015 

note. 


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128 STAT. 1026 PUBLIC LAW 113–89—MAR. 21, 2014 

SEC. 13. EXCLUSION OF DETACHED STRUCTURES FROM MANDATORY 

PURCHASE REQUIREMENT. 

(a) EXCLUSION.—Subsection (c) of section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(c)) is amended by 

adding at the end the following new paragraph: 

‘‘(3) DETACHED STRUCTURES.—Notwithstanding any other 

provision of this section, flood insurance shall not be required, 

in the case of any residential property, for any structure that 

is a part of such property but is detached from the primary 

residential structure of such property and does not serve as 

a residence.’’. 

(b) RESPA STATEMENT.—Section 5(b) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)) is amended— 

(1) in paragraph (14), by inserting before the period at 

the end the following: ‘‘, and the following statement: ‘Although 

you may not be required to maintain flood insurance on all 

structures, you may still wish to do so, and your mortgage 

lender may still require you to do so to protect the collateral 

securing the mortgage. If you choose to not maintain flood 

insurance on a structure, and it floods, you are responsible 

for all flood losses relating to that structure.’ ’’; and 

(2) by transferring and inserting paragraph (14), as so 

amended, after paragraph (13). 

SEC. 14. ACCOUNTING FOR FLOOD MITIGATION ACTIVITIES IN ESTIMATES OF PREMIUM RATES. 

Subparagraph (A) of section 1307(a)(1) of the National Flood 

Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(A)) is amended to 

read as follows: 

‘‘(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’’. 

SEC. 15. HOME IMPROVEMENT FAIRNESS. 

Section 1307(a)(2)(E)(ii) of the National Flood Insurance Act 

of 1968 (42 U.S.C. 4014(a)(2)(E)(ii)) is amended by striking ‘‘30 

percent’’ and inserting ‘‘50 percent’’. 

SEC. 16. AFFORDABILITY STUDY AND REPORT. 

(a) STUDY ISSUES.—Subsection (a) of section 100236 of the 

Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law 

112–141; 126 Stat. 957) is amended— 

(1) in paragraph (3), by striking ‘‘and’’ at the end; 

(2) in paragraph (4), by striking the period at the end 

and inserting a semicolon; and 

(3) by adding at the end the following new paragraphs: 

‘‘(5) options for maintaining affordability if annual premiums for flood insurance coverage were to increase to an 

amount greater than 2 percent of the liability coverage amount 

under the policy, including options for enhanced mitigation 

assistance and means-tested assistance; 


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PUBLIC LAW 113–89—MAR. 21, 2014 128 STAT. 1027 

‘‘(6) the effects that the establishment of catastrophe 

savings accounts would have regarding long-term affordability 

of flood insurance coverage; and 

‘‘(7) options for modifying the surcharge under 1308A, 

including based on homeowner income, property value or risk 

of loss.’’. 

(b) TIMING OF SUBMISSION.—Notwithstanding the deadline 

under section 100236(c) of the Biggert-Waters Flood Insurance 

Reform Act of 2012 (Public Law 112–141; 126 Stat. 957), not later 

than 18 months after the date of enactment of this Act, the Administrator shall submit to the full Committee on Banking, Housing, 

and Urban Affairs and the full Committee on Appropriations of 

the Senate and the full Committee on Financial Services and the 

full Committee on Appropriations of the House of Representatives 

the affordability study and report required under such section 

100236. 

(c) AFFORDABILITY STUDY FUNDING.—Section 100236(d) of the 

Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law 

112–141; 126 Stat. 957) is amended by striking ‘‘$750,000’’ and 

inserting ‘‘$2,500,000’’. 

SEC. 17. FLOOD INSURANCE RATE MAP CERTIFICATION. 

The Administrator shall implement a flood mapping program 

for the National Flood Insurance Program, only after review by 

the Technical Mapping Advisory Council, that, when applied, results 

in technically credible flood hazard data in all areas where Flood 

Insurance Rate Maps are prepared or updated, shall certify in 

writing to the Congress when such a program has been implemented, and shall provide to the Congress the Technical Mapping 

Advisory Council review report. 

SEC. 18. FUNDS TO REIMBURSE HOMEOWNERS FOR SUCCESSFUL MAP 

APPEALS. 

(a) IN GENERAL.—Section 1363(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 4104(f)) is amended— 

(1) in the first sentence, by inserting after ‘‘as the case 

may be,’’ the following: ‘‘or, in the case of an appeal that 

is resolved by submission of conflicting data to the Scientific 

Resolution Panel provided for in section 1363A, the community,’’; and 

(2) by striking the second sentence and inserting the following: ‘‘The Administrator may use such amounts from the 

National Flood Insurance Fund established under section 1310 

as may be necessary to carry out this subsection.’’. 

(b) CONFORMING AMENDMENTS.—Section 1310(a) of the 

National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is 

amended— 

(1) in paragraph (6), by striking ‘‘and’’ at the end; 

(2) in paragraph (7), by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(8) for carrying out section 1363(f).’’. 

SEC. 19. FLOOD PROTECTION SYSTEMS. 

(a) ADEQUATE PROGRESS ON CONSTRUCTION OF FLOOD PROTEC- TION SYSTEMS.—Section 1307(e) of the National Flood Insurance 

Act of 1968 (42 U.S.C. 4014(e)) is amended— 

Reports. 

42 USC 4101d. 

Deadline. 


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128 STAT. 1028 PUBLIC LAW 113–89—MAR. 21, 2014 

(1) in the first sentence, by inserting ‘‘or reconstruction’’ 

after ‘‘construction’’; 

(2) by amending the second sentence to read as follows: 

‘‘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.’’; and 

(3) by adding at the end the following: ‘‘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.’’. 

(b) COMMUNITIES RESTORING DISACCREDITED FLOOD PROTECTION SYSTEMS.—Section 1307(f) of the National Flood Insurance 

Act of 1968 (42 U.S.C. 4014(f)) is amended by amending the first 

sentence to read as follows: ‘‘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.’’. 

SEC. 20. QUARTERLY REPORTS REGARDING RESERVE FUND RATIO. 

Subsection (e) of section 1310A of the National Flood Insurance 

Act of 1968 (42 U.S.C. 4017a) is amended, in the matter preceding 

paragraph (1), by inserting ‘‘, on a calendar quarterly basis,’’ after 

‘‘submit’’. 

SEC. 21. TREATMENT OF FLOODPROOFED RESIDENTIAL BASEMENTS. 

The Administrator shall continue to extend exceptions and 

variances for flood-proofed basements consistent with section 60.6 

of title 44, Code of Federal Regulations, which are effective April 

3, 2009; and section 60.3 of such title, which are effective April 

3, 2009. 

SEC. 22. EXEMPTION FROM FEES FOR CERTAIN MAP CHANGE 

REQUESTS. 

Notwithstanding any other provision of law, a requester shall 

be exempt from submitting a review or processing fee for a request 

for a flood insurance rate map change based on a habitat restoration 

project that is funded in whole or in part with Federal or State 

funds, including dam removal, culvert redesign or installation, or 

the installation of fish passage. 

SEC. 23. STUDY OF VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE OPTIONS. 

(a) STUDY.— (1) STUDY REQUIRED.—The Administrator shall conduct a 

study to assess options, methods, and strategies for making 

42 USC 4101e. 

42 USC 4012a 

note. 

Applicability. 


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PUBLIC LAW 113–89—MAR. 21, 2014 128 STAT. 1029 

available voluntary community-based flood insurance policies 

through the National Flood Insurance Program. 

(2) CONSIDERATIONS.—The study conducted under paragraph (1) shall— 

(A) take into consideration and analyze how voluntary 

community-based flood insurance policies— 

(i) would affect communities having varying economic bases, geographic locations, flood hazard 

characteristics or classifications, and flood management approaches; and 

(ii) could satisfy the applicable requirements under 

section 102 of the Flood Disaster Protection Act of 

1973 (42 U.S.C. 4012a); and 

(B) evaluate the advisability of making available voluntary community-based flood insurance policies to communities, subdivisions of communities, and areas of residual 

risk. 

(3) CONSULTATION.—In conducting the study required 

under paragraph (1), the Administrator may consult with the 

Comptroller General of the United States, as the Administrator 

determines is appropriate. 

(b) REPORT BY THE ADMINISTRATOR.— 

(1) REPORT REQUIRED.—Not later than 18 months after 

the date of enactment of this Act, the Administrator shall 

submit to the Committee on Banking, Housing, and Urban 

Affairs of the Senate and the Committee on Financial Services 

of the House of Representatives a report that contains the 

results and conclusions of the study conducted under subsection 

(a). 

(2) CONTENTS.—The report submitted under paragraph (1) 

shall include recommendations for— 

(A) the best manner to incorporate voluntary community-based flood insurance policies into the National Flood 

Insurance Program; and 

(B) a strategy to implement voluntary communitybased flood insurance policies that would encourage 

communities to undertake flood mitigation activities, 

including the construction, reconstruction, or improvement 

of levees, dams, or other flood control structures. 

(c) REPORT BY COMPTROLLER GENERAL.—Not later than 6 

months after the date on which the Administrator submits the 

report required under subsection (b), the Comptroller General of 

the United States shall— 

(1) review the report submitted by the Administrator; and 

(2) submit to the Committee on Banking, Housing, and 

Urban Affairs of the Senate and the Committee on Financial 

Services of the House of Representatives a report that contains— 

(A) an analysis of the report submitted by the Administrator; 

(B) any comments or recommendations of the Comptroller General relating to the report submitted by the 

Administrator; and 

(C) any other recommendations of the Comptroller General relating to community-based flood insurance policies. 


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128 STAT. 1030 PUBLIC LAW 113–89—MAR. 21, 2014 

SEC. 24. DESIGNATION OF FLOOD INSURANCE ADVOCATE. 

(a) IN GENERAL.—The Administrator shall designate a Flood 

Insurance Advocate to advocate for the fair treatment of policy 

holders under the National Flood Insurance Program and property 

owners in the mapping of flood hazards, the identification of risks 

from flood, and the implementation of measures to minimize the 

risk of flood. 

(b) DUTIES AND RESPONSIBILITIES.—The duties and responsibilities of the Flood Insurance Advocate designated under subsection 

(a) shall be to— 

(1) educate property owners and policyholders under the 

National Flood Insurance Program on— 

(A) individual flood risks; 

(B) flood mitigation; 

(C) measures to reduce flood insurance rates through 

effective mitigation; 

(D) the flood insurance rate map review and amendment process; and 

(E) any changes in the flood insurance program as 

a result of any newly enacted laws (including this Act); 

(2) assist policy holders under the National Flood Insurance 

Program and property owners to understand the procedural 

requirements related to appealing preliminary flood insurance 

rate maps and implementing measures to mitigate evolving 

flood risks; 

(3) assist in the development of regional capacity to respond 

to individual constituent concerns about flood insurance rate 

map amendments and revisions; 

(4) coordinate outreach and education with local officials 

and community leaders in areas impacted by proposed flood 

insurance rate map amendments and revisions; and 

(5) aid potential policy holders under the National Flood 

Insurance Program in obtaining and verifying accurate and 

reliable flood insurance rate information when purchasing or 

renewing a flood insurance policy. 

SEC. 25. EXCEPTIONS TO ESCROW REQUIREMENT FOR FLOOD INSURANCE PAYMENTS. 

(a) IN GENERAL.—Section 102(d)(1) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) is amended— 

(1) in subparagraph (A), in the second sentence, by striking 

‘‘subparagraph (C)’’ and inserting ‘‘subparagraph (B)’’; and 

(2) in subparagraph (B)— 

(A) in clause (ii), by redesignating subclauses (I) and 

(II) as items (aa) and (bb), respectively, and adjusting the 

margins accordingly; 

(B) by redesignating clauses (i) and (ii) as subclauses 

(I) and (II), respectively, and adjusting the margins accordingly; 

(C) in the matter preceding subclause (I), as redesignated by subparagraph (B), by striking ‘‘(A) or (B), if— 

’’ and inserting the following: ‘‘(A)— 

‘‘(i) if—’’; 

(D) by striking the period at the end and inserting 

‘‘; or’’; and 

(E) by adding at the end the following: 

‘‘(ii) in the case of a loan that— 

42 USC 4033. 


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PUBLIC LAW 113–89—MAR. 21, 2014 128 STAT. 1031 

‘‘(I) is in a junior or subordinate position to 

a senior lien secured by the same residential 

improved real estate or mobile home for which 

flood insurance is being provided at the time of 

the origination of the loan; 

‘‘(II) is secured by residential improved real 

estate or a mobile home that is part of a condominium, cooperative, or other project development, 

if the residential improved real estate or mobile 

home is covered by a flood insurance policy that— 

‘‘(aa) meets the requirements that the 

regulated lending institution is required to 

enforce under subsection (b)(1); 

‘‘(bb) is provided by the condominium 

association, cooperative, homeowners association, or other applicable group; and 

‘‘(cc) the premium for which is paid by 

the condominium association, cooperative, 

homeowners association, or other applicable 

group as a common expense; 

‘‘(III) is secured by residential improved real 

estate or a mobile home that is used as collateral 

for a business purpose; 

‘‘(IV) is a home equity line of credit; 

‘‘(V) is a nonperforming loan; or 

‘‘(VI) has a term of not longer than 12 

months.’’. 

(b) APPLICABILITY.— 

(1) IN GENERAL.— 

(A) REQUIRED APPLICATION.—The amendments to section 102(d)(1) of the Flood Disaster Protection Act of 1973 

(42 U.S.C. 4012a(d)(1)) made by section 100209(a) of the 

Biggert-Waters Flood Insurance Reform Act of 2012 (Public 

Law 112–141; 126 Stat. 920) and by subsection (a) of this 

section shall apply to any loan that is originated, 

refinanced, increased, extended, or renewed on or after 

January 1, 2016. 

(B) OPTIONAL APPLICATION.— 

(i) DEFINITIONS.—In this subparagraph— 

(I) the terms ‘‘Federal entity for lending regulation’’, ‘‘improved real estate’’, ‘‘regulated lending 

institution’’, and ‘‘servicer’’ have the meanings 

given the terms in section 3 of the Flood Disaster 

Protection Act of 1973 (42 U.S.C. 4003); 

(II) the term ‘‘outstanding loan’’ means a loan 

that— 

(aa) is outstanding as of January 1, 2016; 

(bb) is not subject to the requirement to 

escrow premiums and fees for flood insurance 

under section 102(d)(1) of the Flood Disaster 

Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) 

as in effect on July 5, 2012; and 

(cc) would, if the loan had been originated, 

refinanced, increased, extended, or renewed 

on or after January 1, 2016, be subject to 

the requirements under section 102(d)(1)(A) 

42 USC 4012a 

note. 


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128 STAT. 1032 PUBLIC LAW 113–89—MAR. 21, 2014 

of the Flood Disaster Protection Act of 1973, 

as amended; and 

(III) the term ‘‘section 102(d)(1)(A) of the Flood 

Disaster Protection Act of 1973, as amended’’ 

means section 102(d)(1)(A) of the Flood Disaster 

Protection Act of 1973 (42 U.S.C. 4012a(d)(1)(A)), 

as amended by— 

(aa) section 100209(a) of the BiggertWaters Flood Insurance Reform Act of 2012 

(Public Law 112–141; 126 Stat. 920); and 

(bb) subsection (a) of this section. 

(ii) OPTION TO ESCROW FLOOD INSURANCE PAYMENTS.—Each Federal entity for lending regulation 

(after consultation and coordination with the Federal 

Financial Institutions Examination Council) shall, by 

regulation, direct that each regulated lending institution or servicer of an outstanding loan shall offer and 

make available to a borrower the option to have the 

borrower’s payment of premiums and fees for flood 

insurance under the National Flood Insurance Act of 

1968 (42 U.S.C. 4001 et seq.), including the escrow 

of such payments, be treated in the same manner 

provided under section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as amended. 

(2) REPEAL OF 2-YEAR DELAY ON APPLICABILITY.—Subsection 

(b) of section 100209 of the Biggert-Waters Flood Insurance 

Reform Act of 2012 (Public Law 112–141; 126 Stat. 920) is 

repealed. 

(3) RULE OF CONSTRUCTION.—Nothing in this section or 

the amendments made by this section shall be construed to 

supersede, during the period beginning on July 6, 2012 and 

ending on December 31, 2015, the requirements under section 

102(d)(1) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 

4012a(d)(1)), as in effect on July 5, 2012. 

SEC. 26. FLOOD MITIGATION METHODS FOR BUILDINGS. 

(a) GUIDELINES.— 

(1) 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: 

‘‘(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.’’. 

(2) ISSUANCE.—The Administrator shall issue the guidelines required under section 1361(d) of the National Flood 

Insurance Act of 1968 (42 U.S.C. 4102(d)), as added by the 

amendment made by paragraph (1) of this subsection, not later 

Deadline. 

Time period. 

42 USC 4102 

note. 

42 USC 4012a 

note. 

42 USC 4012a 

note. 

Consultation. 

Coordination. 

Regulation. 


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PUBLIC LAW 113–89—MAR. 21, 2014 128 STAT. 1033 

than the expiration of the 1-year period beginning on the date 

of the enactment of this Act. 

(b) CALCULATION OF RISK PREMIUM RATES.—Section 1308 of 

the National Flood Insurance Act of 1968 (42 U.S.C. 4015), as 

amended by the preceding provisions of this Act, is further amended 

by adding at the end the following new subsection: 

‘‘(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)).’’. 

SEC. 27. MAPPING OF NON-STRUCTURAL FLOOD MITIGATION FEATURES. 

Section 100216 of the Biggert-Waters Flood Insurance Reform 

Act of 2012 (42 U.S.C. 4101b) is amended— 

(1) in subsection (b)(1)(A)— 

(A) in clause (iv), by striking ‘‘and’’ at the end; 

(B) by redesignating clause (v) as clause (vi); 

(C) by inserting after clause (iv) the following new 

clause: 

‘‘(v) areas that are protected by non-structural 

flood mitigation features; and’’; and 

(D) in clause (vi) (as so redesignated), by inserting 

before the semicolon at the end the following: ‘‘and by 

non-structural flood mitigation features’’; and 

(2) in subsection (d)(1)— 

(A) by redesignating subparagraphs (A) through (C) 

as subparagraphs (B) through (D), respectively; 

(B) in subparagraph (C) (as so redesignated), by 

striking ‘‘subparagraph (A)’’ and inserting ‘‘subparagraph 

(B)’’; and 

(C) by inserting before subparagraph (B) (as so redesignated) the following new subparagraph: 

‘‘(A) work with States, local communities, and property 

owners to identify areas and features described in subsection (b)(1)(A)(v);’’. 

SEC. 28. CLEAR COMMUNICATIONS. 

Section 1308 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4015), as amended by the preceding provisions of this Act, 

is further amended by adding at the end the following new subsection: 

‘‘(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.’’. 

SEC. 29. PROTECTION OF SMALL BUSINESSES, NON-PROFITS, HOUSES 

OF WORSHIP, AND RESIDENCES. 

Section 1308 of the National Flood Insurance Act of 1968 (42 

U.S.C. 4015), as amended by the preceding provisions of this Act, 

is further amended by adding at the end the following new subsection: 

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

OF WORSHIP, AND RESIDENCES.— 


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128 STAT. 1034 PUBLIC LAW 113–89—MAR. 21, 2014 

‘‘(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.’’. 

SEC. 30. MAPPING. 

Section 100216(d)(1) of the Biggert-Waters Flood Insurance 

Reform Act of 2012 (42 U.S.C. 4101b(d)(1)), as amended by section 

27 of this Act, is further amended— 

(1) in subparagraph (C)— 

(A) by striking ‘‘subparagraph (B)’’ and inserting 

‘‘subparagraph (E)’’; and 

(B) by striking ‘‘and’’ at the end; 

(2) by redesignating subparagraphs (A), (B), (C), and (D) 

as subparagraphs (D), (E), (F), and (H), respectively; 

(3) by inserting before subparagraph (D), as so redesignated, the following new subparagraphs: 

‘‘(A) before commencement of any mapping or map 

updating process, notify each community affected of the 

model or models that the Administrator plans to use in 

such process and provide an explanation of why such model 

or models are appropriate; 

‘‘(B) provide each community affected a 30-day period 

beginning upon notification under subparagraph (A) to consult with the Administrator regarding the appropriateness, 

with respect to such community, of the mapping model 

or models to be used; provided that consultation by a 

community pursuant to this subparagraph shall not waive 

or otherwise affect any right of the community to appeal 

any flood hazard determinations; 

‘‘(C) upon completion of the first Independent Data 

Submission, transmit a copy of such Submission to the 

affected community, provide the affected community a 30- 

day period during which the community may provide data 

Records. 

Time period. 

Time period. 

Consultation. 

Notification. 

Determination. 

Deadline. 


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PUBLIC LAW 113–89—MAR. 21, 2014 128 STAT. 1035 

to Administrator that can be used to supplement or modify 

the existing data, and incorporate any data that is consistent with prevailing engineering principles;’’; and 

(4) by inserting after subparagraph (F), as so redesignated, 

the following new subparagraph: 

‘‘(G) not less than 30 days before issuance of any 

preliminary map, notify the Senators for each State affected 

and each Member of the House of Representatives for each 

congressional district affected by the preliminary map in 

writing of— 

‘‘(i) the estimated schedule for— 

‘‘(I) community meetings regarding the 

preliminary map; 

‘‘(II) publication of notices regarding the 

preliminary map in local newspapers; and 

‘‘(III) the commencement of the appeals 

process regarding the map; and 

‘‘(ii) the estimated number of homes and businesses 

that will be affected by changes contained in the 

preliminary map, including how many structures will 

be that were not previously located in an area having 

special flood hazards will be located within such an 

area under the preliminary map; and’’. 

SEC. 31. DISCLOSURE. 

(a) CHANGES IN RATES RESULTING FROM THIS ACT.—Not later 

than the date that is 6 months before the date on which any 

change in risk premium rates for flood insurance coverage under 

the National Flood Insurance Program resulting from this Act or 

any amendment made by this Act is implemented, the Administrator shall make publicly available the rate tables and underwriting guidelines that provide the basis for the change. 

(b) REPORT ON POLICY AND CLAIMS DATA.— 

(1) IN GENERAL.—Not later than 90 days after the date 

of enactment of this Act, the Administrator shall submit to 

the Congress a report on the feasibility of— 

(A) releasing property-level policy and claims data for 

flood insurance coverage under the National Flood Insurance Program; and 

(B) establishing guidelines for releasing property-level 

policy and claims data for flood insurance coverage under 

the National Flood Insurance Program in accordance with 

section 552a of title 5, United States Code (commonly 

known as the Privacy Act of 1974). 

(2) CONTENTS.—The report submitted under paragraph (1) 

shall include— 

(A) an analysis and assessment of how releasing property-level policy and claims data for flood insurance coverage under the National Flood Insurance Program will 

aid policy holders and insurers to understand how the 

Administration determines actuarial premium rates and 

assesses flood risks; and 

Deadline. 

Public 

information. 

42 USC 4014 

note. 

Deadline. 

Notification. 


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128 STAT. 1036 PUBLIC LAW 113–89—MAR. 21, 2014 

LEGISLATIVE HISTORY—H.R. 3370: 

CONGRESSIONAL RECORD, Vol. 160 (2014): 

Mar. 4, considered and passed House. 

Mar. 13, considered and passed Senate. 

Æ 

(B) recommendations for protecting personal information in accordance with section 552a of title 5, United 

States Code (commonly known as the Privacy Act of 1974). 

Approved March 21, 2014. 


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