II 

115TH CONGRESS 

1ST SESSION S. 1507 

To amend the National Flood Insurance Act of 1968 to allow the Administrator of the Federal Emergency Management Agency to provide capitalization grants to States to establish revolving funds to provide funding 

assistance to reduce flood risks, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 29, 2017 

Mr. REED (for himself, Mr. KENNEDY, and Mr. MENENDEZ) introduced the 

following bill; which was read twice and referred to the Committee on 

Banking, Housing, and Urban Affairs 

A BILL 

To amend the National Flood Insurance Act of 1968 to 

allow the Administrator of the Federal Emergency Management Agency to provide capitalization grants to 

States to establish revolving funds to provide funding 

assistance to reduce flood risks, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘State Flood Mitigation 

5 Revolving Fund Act of 2017’’. 


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1 SEC. 2. STATE REVOLVING LOAN FUNDS FOR FLOOD MITI2 GATION. 

3 Chapter I of the National Flood Insurance Act of 

4 1968 (42 U.S.C. 4011 et seq.) is amended by adding at 

5 the end the following: 

6 ‘‘SEC. 1326. STATE REVOLVING LOAN FUNDS FOR FLOOD 

7 MITIGATION. 

8 ‘‘(a) DEFINITIONS.—In this section— 

9 ‘‘(1) the term ‘Community Rating System’ 

10 means the community rating system carried out 

11 under section 1315(b); 

12 ‘‘(2) the term ‘eligible State’ means a State, the 

13 District of Columbia, and the Commonwealth of 

14 Puerto Rico; 

15 ‘‘(3) the term ‘insular area’ means— 

16 ‘‘(A) Guam; 

17 ‘‘(B) American Samoa; 

18 ‘‘(C) the Commonwealth of the Northern 

19 Mariana Islands; 

20 ‘‘(D) the Federated States of Micronesia; 

21 ‘‘(E) the Republic of the Marshall Islands; 

22 ‘‘(F) the Republic of Palau; and 

23 ‘‘(G) the United States Virgin Islands; 

24 ‘‘(4) the term ‘intended use plan’ means a plan 

25 prepared under subsection (d)(1); 


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1 ‘‘(5) the term ‘low-income geographic area’ 

2 means an area described in paragraph (1) or (2) of 

3 section 301(a) of the Public Works and Economic 

4 Development Act of 1965 (42 U.S.C. 3161(a)); 

5 ‘‘(6) the term ‘low-income homeowner’ means 

6 the owner of a primary residence, the household in7 come of which in a taxable year is not more than 

8 150 percent of the national median household in9 come; 

10 ‘‘(7) the term ‘participating State’ means an el11 igible State that— 

12 ‘‘(A) has entered into an agreement under 

13 subsection (b)(1); and 

14 ‘‘(B) agrees to comply with the require15 ments of this section; 

16 ‘‘(8) the term ‘pre-FIRM building’ means a 

17 building for which construction or substantial im18 provement occurred before the effective date of the 

19 initial Flood Insurance Rate Map published by the 

20 Administrator under section 1360 for the area in 

21 which the building is located; 

22 ‘‘(9) the term ‘repetitive loss structure’ has the 

23 meaning given the term in section 1370(a); 

24 ‘‘(10) the term ‘severe repetitive loss property’ 

25 has the meaning given the term in section 1307(h); 


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1 ‘‘(11) the term ‘State loan fund’ means a flood 

2 mitigation assistance revolving loan fund established 

3 by an eligible State under this section; and 

4 ‘‘(12) the term ‘tribal government’ means the 

5 recognized government of an Indian tribe, or the 

6 governing body of an Alaska Native regional or vil7 lage corporation, that has been determined eligible 

8 to receive services from the Bureau of Indian Af9 fairs. 

10 ‘‘(b) GENERAL AUTHORITY.— 

11 ‘‘(1) IN GENERAL.—The Administrator may 

12 enter into an agreement with an eligible State to 

13 provide a capitalization grant for the eligible State 

14 to establish a revolving fund that will provide fund15 ing assistance to help homeowners, businesses, non16 profit organizations, and communities reduce flood 

17 risk in order to decrease— 

18 ‘‘(A) the loss of life and property; 

19 ‘‘(B) the cost of flood insurance; and 

20 ‘‘(C) Federal disaster payments. 

21 ‘‘(2) TIMING OF DEPOSIT AND AGREEMENTS

22 FOR DISTRIBUTION OF FUNDS.— 

23 ‘‘(A) IN GENERAL.—Not later than the 

24 last day of the fiscal year following the fiscal 

25 year in which a capitalization grant is made to 


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1 a participating State under paragraph (1), the 

2 participating State shall— 

3 ‘‘(i) deposit the grant in the State 

4 loan fund of the State; and 

5 ‘‘(ii) enter into one or more agree6 ments to distribute the grant funds for 

7 purposes authorized under subsection (c). 

8 ‘‘(B) NONCOMPLIANCE.—Except as pro9 vided in subparagraph (C), if a participating 

10 State does not comply with subparagraph (A) 

11 with respect to a grant, the Administrator shall 

12 reallocate the grant in accordance with para13 graph (3)(B). 

14 ‘‘(C) EXCEPTION.—The Administrator 

15 may not reallocate any funds under subpara16 graph (B) to a participating State that violated 

17 subparagraph (A) with respect to a grant made 

18 during the same fiscal year in which the funds 

19 to be reallocated were originally made available. 

20 ‘‘(3) ALLOCATION.— 

21 ‘‘(A) IN GENERAL.—The Administrator 

22 shall allocate amounts made available to carry 

23 out this section to participating States— 


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1 ‘‘(i) for the participating States to de2 posit in the State loan funds established by 

3 the participating States; and 

4 ‘‘(ii) except as provided in paragraph 

5 (6), in accordance with the requirements 

6 described in subparagraph (B). 

7 ‘‘(B) REQUIREMENTS.—The requirements 

8 described in this subparagraph are as follows: 

9 ‘‘(i) Fifty percent of the total amount 

10 made available under subparagraph (A) 

11 shall be allocated so that each partici12 pating State receives the percentage 

13 amount that is obtained by dividing the 

14 number of properties that were insured 

15 under the national flood insurance pro16 gram in that State in the fiscal year pre17 ceding the fiscal year in which the amount 

18 is allocated by the total number of prop19 erties that were insured under the national 

20 flood insurance program in the fiscal year 

21 preceding the fiscal year in which the 

22 amount is allocated. 

23 ‘‘(ii) Fifty percent of the total amount 

24 made available under subparagraph (A) 

25 shall be allocated so that each particiVerDate Sep 11 2014 02:17 Jul 12, 2017 Jkt 069200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1507.IS S1507

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1 pating State receives a percentage of funds 

2 that is equal to the product obtained under 

3 clause (iii)(IV) with respect to that partici4 pating State after following the procedures 

5 described in clause (iii). 

6 ‘‘(iii) The procedures described in this 

7 clause are as follows: 

8 ‘‘(I) Divide the total amount col9 lected in premiums for properties in10 sured under the national flood insur11 ance program in each participating 

12 State during the previous fiscal year 

13 by the number of properties insured 

14 under the national flood insurance 

15 program in that State for that fiscal 

16 year. 

17 ‘‘(II) Add together each quotient 

18 obtained under subclause (I). 

19 ‘‘(III) For each participating 

20 State, divide the quotient obtained 

21 under subclause (I) with respect to 

22 that State by the sum obtained under 

23 subclause (II). 

24 ‘‘(IV) For each participating 

25 State, multiply the amount that is 50 


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1 percent of the total amount made 

2 available under subparagraph (A) by 

3 the quotient obtained under subclause 

4 (III). 

5 ‘‘(iv) Except as provided in paragraph 

6 (5), in a fiscal year— 

7 ‘‘(I) a participating State may 

8 not receive more than 15 percent of 

9 the total amount that is made avail10 able under subparagraph (A) in that 

11 fiscal year; and 

12 ‘‘(II) if a participating State, 

13 based on the requirements under 

14 clauses (i) through (iii), would, but 

15 for the limit under subclause (I) of 

16 this clause, receive an amount that is 

17 greater than the amount the State is 

18 authorized to receive under that sub19 clause, the difference between the au20 thorized amount and the amount oth21 erwise due to the State under clauses 

22 (i) through (iii) shall be allocated to 

23 other participating States— 

24 ‘‘(aa) that, in that fiscal 

25 year, have not received an 


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1 amount under subparagraph (A) 

2 that is more than the authorized 

3 amount under subclause (I) of 

4 this clause; and 

5 ‘‘(bb) by using the require6 ments under clauses (i) through 

7 (iii), except that a participating 

8 State may receive an allocation 

9 under this subclause only if the 

10 allocation does not result in the 

11 State receiving a total amount 

12 for the fiscal year under subpara13 graph (A) that is greater than 

14 the authorized amount under 

15 subclause (I). 

16 ‘‘(4) NO REVOLVING FUND REQUIRED.— 

17 ‘‘(A) IN GENERAL.—Notwithstanding any 

18 other provision of this section, and subject to 

19 subparagraph (B), a participating State that 

20 receives less than $4,000,000 under paragraph 

21 (3)(B) in a fiscal year may distribute the funds 

22 directly in the form of grants or technical as23 sistance for a purpose described in subsection 

24 (c)(2), without regard to whether the State has 

25 established a State loan fund. 


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1 ‘‘(B) STATE MATCHING.—A participating 

2 State that exercises the authority under sub3 paragraph (A) in a fiscal year shall provide 

4 matching funds from non-Federal sources in an 

5 amount that is equal to 25 percent of the 

6 amount that the State receives under paragraph 

7 (3)(B) in that fiscal year for purposes described 

8 in subparagraph (A). 

9 ‘‘(5) ALLOCATION OF REMAINING FUNDS.— 

10 After allocating amounts made available to carry out 

11 this section for a fiscal year in accordance with 

12 paragraph (3), the Administrator shall allocate any 

13 remaining amounts made available for that fiscal 

14 year to participating States, using the procedures 

15 described in clauses (i) through (iii) of paragraph 

16 (3)(B). 

17 ‘‘(6) RESERVATION OF FUNDS.—The Adminis18 trator shall reserve not more than 1.5 percent of the 

19 amount made available to carry out this section in 

20 a fiscal year— 

21 ‘‘(A) for administrative costs incurred in 

22 carrying out this section; 

23 ‘‘(B) to provide technical assistance to re24 cipients of grants under this section; and 


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1 ‘‘(C) to enter into grant agreements with 

2 tribal governments and insular areas, with the 

3 grant funds to be distributed— 

4 ‘‘(i) according to criteria established 

5 by the Administrator; and 

6 ‘‘(ii) for a purpose described in sub7 section (c)(2). 

8 ‘‘(c) USE OF FUNDS.— 

9 ‘‘(1) IN GENERAL.—Amounts deposited in a 

10 State loan fund, including repayments of loans made 

11 from the fund and interest earned on the amounts 

12 in the fund, shall be used— 

13 ‘‘(A) consistent with paragraphs (2) and 

14 (3) and subsection (g), to provide financial as15 sistance for— 

16 ‘‘(i) homeowners, businesses, and non17 profit organizations that are eligible to 

18 participate in the national flood insurance 

19 program; and 

20 ‘‘(ii) any local government that par21 ticipates in the national flood insurance 

22 program; 

23 ‘‘(B) as a source of revenue and security 

24 for leveraged loans, the proceeds of which shall 

25 be deposited in the State loan fund; or 


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1 ‘‘(C) for the sale of bonds as security for 

2 payment of the principal and interest on rev3 enue or general obligation bonds issued by the 

4 participating State to provide matching funds 

5 under subsection (g), if the proceeds from the 

6 sale of the bonds are deposited in the State 

7 loan fund. 

8 ‘‘(2) PURPOSES.—A recipient of financial as9 sistance provided through amounts from a State 

10 loan fund— 

11 ‘‘(A) shall use the amounts to reduce— 

12 ‘‘(i) flood risk; or 

13 ‘‘(ii) potential Federal disaster assist14 ance or claims submitted under the na15 tional flood insurance program; 

16 ‘‘(B) shall use the amounts in a cost-effec17 tive manner under requirements established by 

18 the State, which may require an applicant for 

19 financial assistance to submit a cost-benefit 

20 analysis before the date on which the applicant 

21 receives the assistance; 

22 ‘‘(C) shall use the amounts for projects 

23 that— 

24 ‘‘(i) are located in communities that— 


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1 ‘‘(I) participate in the national 

2 flood insurance program; and 

3 ‘‘(II) have developed a local haz4 ard mitigation plan that has been ap5 proved by the Administrator under 

6 section 1366; 

7 ‘‘(ii)(I) address a repetitive loss struc8 ture or a severe repetitive loss property; or 

9 ‘‘(II) address flood risk in the 500- 

10 year floodplain, areas of residual flood risk, 

11 or other areas of potential flood risk, as 

12 identified by the Administrator; and 

13 ‘‘(iii) address current risk and antici14 pate future risk, such as sea-level rise; 

15 ‘‘(D) may use the amounts— 

16 ‘‘(i) for projects relating to— 

17 ‘‘(I) structural elevation; 

18 ‘‘(II) floodproofing; 

19 ‘‘(III) the relocation or removal 

20 of buildings from the 100-year flood21 plain or other areas of flood risk, in22 cluding the acquisition of properties 

23 for such a purpose; 


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1 ‘‘(IV) environmental restoration 

2 activities that directly reduce flood 

3 risk; 

4 ‘‘(V) any eligible activity de5 scribed in subparagraphs (A) through 

6 (G) of section 1366(c)(3); or 

7 ‘‘(VI) other activities determined 

8 appropriate by the Administrator; 

9 ‘‘(ii) with respect to a project de10 scribed in clause (i), only for expenditures 

11 directly related to a project described in 

12 that clause, including expenditures for 

13 planning, design, and associated pre-con14 struction activities; and 

15 ‘‘(iii) to acquire, for the purposes of 

16 permanent protection, land, buildings, or a 

17 conservation easement from a willing seller 

18 or grantor; and 

19 ‘‘(E) may not use the amounts— 

20 ‘‘(i) to construct buildings or expand 

21 existing buildings; 

22 ‘‘(ii) to improve any structure without 

23 a commitment by the recipient to maintain 

24 flood insurance coverage for the structure, 

25 regardless of any change in ownership; 


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1 ‘‘(iii) to improve a residential property 

2 with an appraised value that is not less 

3 than 125 percent of the limitation on the 

4 maximum original principal obligation of a 

5 conventional mortgage that may be pur6 chased by the Federal National Mortgage 

7 Association or the Federal Home Loan 

8 Mortgage Corporation in the area in which 

9 the property is located, as established 

10 under section 302(b)(2) of the Federal Na11 tional Mortgage Association Charter Act 

12 (12 U.S.C. 1717(b)(2)) and section 

13 305(a)(2) of the Federal Home Loan 

14 Mortgage Corporation Act (12 U.S.C. 

15 1454(a)(2)); 

16 ‘‘(iv) for the benefit of a homeowner if 

17 the annual household adjusted gross in18 come of the homeowner during the pre19 vious fiscal year was not less than 

20 $200,000, as annually adjusted by the Ad21 ministrator to reflect changes in the Con22 sumer Price Index for All Urban Con23 sumers, as published by the Bureau of 

24 Labor Statistics of the Department of 

25 Labor and rounded to the nearest $25; or 


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1 ‘‘(v) to acquire real property or an in2 terest in real property unless the property 

3 is purchased from a willing seller. 

4 ‘‘(d) INTENDED USE PLANS.— 

5 ‘‘(1) IN GENERAL.—After providing the oppor6 tunity for public review and comment, each partici7 pating State shall annually prepare a plan that iden8 tifies, for the year following the date of issuance of 

9 the intended use plan, the intended uses of the 

10 amounts available in the State loan fund of the par11 ticipating State. 

12 ‘‘(2) CONSULTATION DURING PREPARATION.— 

13 Each participating State, in preparing an intended 

14 use plan, shall ensure that the State agency with 

15 primary responsibility for floodplain management— 

16 ‘‘(A) provides oversight with respect to the 

17 preparation of the intended use plan; and 

18 ‘‘(B) consults with any other appropriate 

19 State agency, including agencies responsible for 

20 coastal and environmental management. 

21 ‘‘(3) CONTENTS.—A participating State shall, 

22 in each intended use plan— 

23 ‘‘(A) include— 


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1 ‘‘(i) an explanation of the mitigation 

2 and resiliency benefits the State intends to 

3 achieve, including by— 

4 ‘‘(I) reducing future damage and 

5 loss associated with flooding; 

6 ‘‘(II) reducing the number of se7 vere repetitive loss properties and re8 petitive loss structures in the State; 

9 ‘‘(III) decreasing the number of 

10 flood insurance claims in the State; 

11 and 

12 ‘‘(IV) increasing the rating under 

13 the Community Rating System for 

14 communities in the State; 

15 ‘‘(ii) information with respect to the 

16 availability of, and the application process 

17 for receiving, financial assistance from the 

18 State loan fund of the State; 

19 ‘‘(iii) the criteria and methods estab20 lished for the distribution of amounts from 

21 the State loan fund of the State; 

22 ‘‘(iv) the amount of financial assist23 ance that the State anticipates allocating 

24 to— 


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1 ‘‘(I) local government projects; 

2 and 

3 ‘‘(II) projects for homeowners, 

4 business, or nonprofit organizations; 

5 ‘‘(v) the expected terms of the assist6 ance provided under clause (iv); and 

7 ‘‘(vi) a description of the financial sta8 tus of the State loan fund and the short9 term and long-term goals of the State loan 

10 fund; and 

11 ‘‘(B) provide, to the maximum extent prac12 ticable, that priority for the use of amounts 

13 from the State loan fund shall be given to 

14 projects that— 

15 ‘‘(i) address severe repetitive loss 

16 properties and repetitive loss structures; 

17 ‘‘(ii) assist low-income homeowners 

18 and low-income geographic areas; and 

19 ‘‘(iii) address flood risk for pre-FIRM 

20 buildings. 

21 ‘‘(4) PUBLICATION.—Each participating State 

22 shall publish and periodically update a list of all 

23 projects receiving funding from the State loan fund 

24 of the State, which shall include— 

25 ‘‘(A) the location of each project; 


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1 ‘‘(B) the type and amount of assistance 

2 provided for each project; and 

3 ‘‘(C) the expected funding schedule and 

4 date of completion of each project. 

5 ‘‘(e) FUND MANAGEMENT.—Amounts in a State loan 

6 fund shall— 

7 ‘‘(1) remain available for providing financial as8 sistance under this section until distributed; 

9 ‘‘(2) if the amounts are not required for imme10 diate distribution or expenditure, be invested in in11 terest-bearing obligations; and 

12 ‘‘(3) except as provided in subsection (i), in13 clude only— 

14 ‘‘(A) amounts received from capitalization 

15 grants made under this section; 

16 ‘‘(B) repayments of loans made from the 

17 fund; and 

18 ‘‘(C) interest earned on amounts in the 

19 fund. 

20 ‘‘(f) MATCHING FUNDS.—On or before the date on 

21 which a participating State receives a capitalization grant, 

22 the State shall deposit into the State loan fund of the 

23 State, in addition to the amount of the capitalization 

24 grant, an amount from non-Federal sources that is not 


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1 less than 20 percent of the total amount of the capitaliza2 tion grant. 

3 ‘‘(g) TYPES OF ASSISTANCE.—Unless otherwise pro4 hibited by State law, a participating State may use the 

5 amounts deposited into a State loan fund under this sec6 tion only— 

7 ‘‘(1) to make a loan, on the condition that— 

8 ‘‘(A) the interest rate for the loan is not 

9 more than the market interest rate; 

10 ‘‘(B) the recipient of the loan will begin 

11 making principal and interest payments on the 

12 loan not later than 1 year after the date on 

13 which the project for which the loan was made 

14 is completed; 

15 ‘‘(C) the loan will be fully amortized not 

16 later than 20 years after the date on which the 

17 project for which the loan was made is com18 pleted, except that, in the case of a loan made 

19 for a project in a low-income geographic area or 

20 to a low-income homeowner, the State may pro21 vide a longer amortization period for the loan if 

22 that longer period— 

23 ‘‘(i) ends on a date that is not later 

24 than 30 years after the date on which the 

25 project is completed; and 


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1 ‘‘(ii) is not longer than the expected 

2 design life of the project; 

3 ‘‘(D) the recipient of the loan dem4 onstrates that there is a dedicated source of 

5 revenue or adequate income to repay the loan; 

6 and 

7 ‘‘(E) payments of principal and interest 

8 with respect to the loan will be deposited into 

9 the State loan fund; 

10 ‘‘(2) to buy or refinance the debt obligation of 

11 a local government at an interest rate that is not 

12 more than the market interest rate; 

13 ‘‘(3) to guarantee, or purchase insurance for, a 

14 local obligation, the proceeds of which finance a 

15 project eligible for assistance under this section, if 

16 the guarantee or purchase, as applicable, would— 

17 ‘‘(A) improve credit market access; or 

18 ‘‘(B) reduce the interest rate with respect 

19 to the obligation; 

20 ‘‘(4) as a source of revenue or as security for 

21 the payment of principal and interest on revenue or 

22 general obligation bonds issued by the State if the 

23 proceeds of the sale of the bonds will be deposited 

24 into the State loan fund; or 

25 ‘‘(5) to earn interest on those amounts. 


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1 ‘‘(h) ASSISTANCE FOR LOW-INCOME HOMEOWNERS

2 AND LOW-INCOME GEOGRAPHIC AREAS.— 

3 ‘‘(1) IN GENERAL.—Notwithstanding any other 

4 provision of this section, if a participating State uses 

5 amounts from a State loan fund to provide financial 

6 assistance under subsection (c) in a low-income geo7 graphic area or to a low-income homeowner, the 

8 State may provide additional subsidization to the re9 cipient of the assistance, including forgiveness of the 

10 principal of a loan. 

11 ‘‘(2) LIMITATION.—For each fiscal year, the 

12 total amount of additional subsidization provided by 

13 a participating State under paragraph (1) may not 

14 exceed 30 percent of the amount of the capitaliza15 tion grant allocated to the State for that fiscal year. 

16 ‘‘(i) ADMINISTRATION OF FUND.— 

17 ‘‘(1) IN GENERAL.—A participating State may 

18 combine the financial administration of a State loan 

19 fund with the financial administration of any other 

20 revolving fund established by the State if— 

21 ‘‘(A) combining the administration of the 

22 funds would— 

23 ‘‘(i) be convenient and avoid adminis24 trative costs; and 


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1 ‘‘(ii) not violate the law of the State; 

2 and 

3 ‘‘(B) the Administrator determines that— 

4 ‘‘(i) amounts obtained from a grant 

5 made under this section, amounts obtained 

6 from the repayment of a loan made from 

7 a State loan fund, and interest earned on 

8 amounts in a State loan fund will be— 

9 ‘‘(I) accounted for separately 

10 from amounts from other revolving 

11 funds; and 

12 ‘‘(II) used only for purposes au13 thorized under this section; and 

14 ‘‘(ii) after consulting with the appro15 priate State agencies, the authority to es16 tablish assistance priorities and carry out 

17 oversight and related activities, other than 

18 financial administration, with respect to 

19 flood assistance remains with the State 

20 agency with primary responsibility for 

21 floodplain management. 

22 ‘‘(2) ADMINISTRATIVE AND TECHNICAL

23 COSTS.— 


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1 ‘‘(A) IN GENERAL.—For each fiscal year, a 

2 participating State may use the amount de3 scribed in subparagraph (B) to— 

4 ‘‘(i) pay the reasonable costs of ad5 ministration of the programs under this 

6 section, including the recovery of reason7 able costs incurred in establishing a State 

8 loan fund; 

9 ‘‘(ii) provide appropriate oversight of 

10 projects authorized under this section; and 

11 ‘‘(iii) provide technical assistance and 

12 outreach to recipients in the State of 

13 amounts under this section, including with 

14 respect to updating hazard mitigation 

15 plans and participating in the Community 

16 Rating System, in an amount that is not 

17 more than 4 percent of the funds made 

18 available to the State under this section. 

19 ‘‘(B) DESCRIPTION.—The amount de20 scribed in this subparagraph is an amount 

21 equal to the sum of— 

22 ‘‘(i) any fees collected by a partici23 pating State to recover the costs described 

24 in subparagraph (A)(i), regardless of the 

25 source; and 


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1 ‘‘(ii) the greatest of— 

2 ‘‘(I) $400,000; 

‘‘(II) 1 3 ⁄5 of 1 percent of the value 

4 of the State loan fund of a State, as 

5 of the date on which the valuation is 

6 made; and 

7 ‘‘(III) an amount equal to 7 per8 cent of all grant awards made to a 

9 participating State for the State loan 

10 fund of the State under this section 

11 for the fiscal year. 

12 ‘‘(3) AUDIT AND REPORT.— 

13 ‘‘(A) AUDIT REQUIREMENT.—Not less fre14 quently than biennially, each participating State 

15 shall conduct an audit of the State loan fund of 

16 the State. 

17 ‘‘(B) REPORT.—Each participating State 

18 shall submit to the Administrator a biennial re19 port regarding the activities of the State under 

20 this section during the period covered by the re21 port, including— 

22 ‘‘(i) the result of any audit conducted 

23 by the State under subparagraph (A); and 


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1 ‘‘(ii) a review of the effectiveness of 

2 the State loan fund of the State with re3 spect to— 

4 ‘‘(I) the intended use plans of the 

5 State; and 

6 ‘‘(II) meeting the objectives de7 scribed in subsection (b)(1). 

8 ‘‘(4) OVERSIGHT.—In conducting oversight with 

9 respect to State loan funds established under this 

10 section, the Administrator— 

11 ‘‘(A) shall— 

12 ‘‘(i) periodically audit the funds in ac13 cordance with procedures established by 

14 the Comptroller General of the United 

15 States; and 

16 ‘‘(ii) not less frequently than once 

17 every 4 years, review each State loan fund 

18 to determine the effectiveness of the fund 

19 in reducing flood risk; and 

20 ‘‘(B) may, at any time— 

21 ‘‘(i) make recommendations to a par22 ticipating State with respect to the admin23 istration of the State loan fund of the 

24 State; or 


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1 ‘‘(ii) require specific changes with re2 spect to a State loan fund in order to im3 prove the effectiveness of the fund. 

4 ‘‘(j) REGULATIONS.—The Administrator shall pro5 mulgate such guidance or regulations as may be necessary 

6 to carry out this section, including guidance or regulations 

7 that— 

8 ‘‘(1) ensure that each participating State to 

9 which funds are allocated under this section uses the 

10 funds as efficiently as possible; 

11 ‘‘(2) reduce, to the maximum extent prac12 ticable, waste, fraud, and abuse with respect to the 

13 implementation of this section; and 

14 ‘‘(3) require any party that receives funds di15 rectly or indirectly under this section, including a 

16 participating State and a recipient of amounts from 

17 a State loan fund, to use procedures with respect to 

18 the management of the funds that conform to gen19 erally accepted accounting standards. 

20 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated such sums as may be 

22 necessary to carry out this section for fiscal years 2018 

23 through 2027.’’. 

Æ 


lotter on DSKBCFDHB2PROD with BILLS