IB 

Union Calendar No. 57 

112TH CONGRESS 

1ST SESSION H. R. 1309 

[Report No. 112–102] 

To extend the authorization of the national flood insurance program, to 

achieve reforms to improve the financial integrity and stability of the 

program, and to increase the role of private markets in the management 

of flood insurance risk, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2011 

Mrs. BIGGERT (for herself, Ms. WATERS, Mr. DOLD, Mr. GARRETT, Mr. STIVERS, and Mrs. CAPITO) introduced the following bill; which was referred 

to the Committee on Financial Services 

JUNE 9, 2011 

Additional sponsors: Mr. HINOJOSA, Mr. RAHALL, Mr. MCKINLEY, Mr. BILIRAKIS, Mr. HARPER, Mr. BISHOP of Georgia, Mr. SIRES, Mr. AL GREEN

of Texas, Ms. ESHOO, Mr. SESSIONS, Mr. HULTGREN, Mr. DOGGETT, 

Mr. HOLDEN, and Mrs. MCCARTHY of New York 

JUNE 9, 2011 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on April 1, 2011] 


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A BILL 

To extend the authorization of the national flood insurance 

program, to achieve reforms to improve the financial 

integrity and stability of the program, and to increase 

the role of private markets in the management of flood 

insurance risk, and for other purposes. 


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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 AND TABLE OF CONTENTS. 

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

5 ‘‘Flood Insurance Reform Act of 2011’’. 

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

7 this Act is as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. Extensions. 

Sec. 3. Mandatory purchase. 

Sec. 4. Reforms of coverage terms. 

Sec. 5. Reforms of premium rates. 

Sec. 6. Technical Mapping Advisory Council. 

Sec. 7. FEMA incorporation of new mapping protocols. 

Sec. 8. Treatment of levees. 

Sec. 9. Privatization initiatives. 

Sec. 10. FEMA annual report on insurance program. 

Sec. 11. Actuarial rates for severe repetitive loss properties refusing mitigation or 

purchase offers. 

Sec. 12. Mitigation assistance. 

Sec. 13. Grants for direct funding of mitigation activities for individual repetitive claims properties. 

Sec. 14. Notification to homeowners regarding mandatory purchase requirement 

applicability and rate phase-ins. 

Sec. 15. Notification of establishment of flood elevations. 

Sec. 16. Notification to tenants of availability of contents insurance. 

Sec. 17. Notification to policy holders regarding direct management of policy by 

FEMA. 

Sec. 18. Notice of availability of flood insurance and escrow in RESPA good 

faith estimate. 

Sec. 19. Reimbursement for costs incurred by homeowners obtaining letters of 

map amendment. 

Sec. 20. Treatment of swimming pool enclosures outside of hurricane season. 

Sec. 21. CDBG eligibility for flood insurance outreach activities and community 

building code administration grants. 

Sec. 22. Technical corrections. 

Sec. 23. Report on Write-Your-Own Program. 

Sec. 24. Studies of voluntary community-based flood insurance options. 

Sec. 25. Report on inclusion of building codes in floodplain management criteria. 

Sec. 26. Study on graduated risk. 

Sec. 27. No cause of action. 


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1 SEC. 2. EXTENSIONS. 

2 (a) EXTENSION OF PROGRAM.—Section 1319 of the 

3 National Flood Insurance Act of 1968 (42 U.S.C. 4026) is 

4 amended by striking ‘‘September 30, 2011’’ and inserting 

5 ‘‘September 30, 2016’’. 

6 (b) EXTENSION OF FINANCING.—Section 1309(a) of 

7 such Act (42 U.S.C. 4016(a)) is amended by striking ‘‘Sep8 tember 30, 2011’’ and inserting ‘‘September 30, 2016’’. 

9 SEC. 3. MANDATORY PURCHASE. 

10 (a) AUTHORITY TO TEMPORARILY SUSPEND MANDA11 TORY PURCHASE REQUIREMENT.— 

12 (1) IN GENERAL.—Section 102 of the Flood Dis13 aster Protection Act of 1973 (42 U.S.C. 4012a) is 

14 amended by adding at the end the following new sub15 section: 

16 ‘‘(i) AUTHORITY TO TEMPORARILY SUSPEND MANDA17 TORY PURCHASE REQUIREMENT.— 

18 ‘‘(1) FINDING BY ADMINISTRATOR THAT AREA IS

19 AN ELIGIBLE AREA.—For any area, upon a request 

20 submitted to the Administrator by a local government 

21 authority having jurisdiction over any portion of the 

22 area, the Administrator shall make a finding of 

23 whether the area is an eligible area under paragraph 

24 (3). If the Administrator finds that such area is an 

25 eligible area, the Administrator shall, in the discre26 tion of the Administrator, designate a period during 


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1 which such finding shall be effective, which shall not 

2 be longer in duration than 12 months. 

3 ‘‘(2) SUSPENSION OF MANDATORY PURCHASE RE4 QUIREMENT.—If the Administrator makes a finding 

5 under paragraph (1) that an area is an eligible area 

6 under paragraph (3), during the period specified in 

7 the finding, the designation of such eligible area as an 

8 area having special flood hazards shall not be effective 

9 for purposes of subsection (a), (b), and (e) of this sec10 tion, and section 202(a) of this Act. Nothing in this 

11 paragraph may be construed to prevent any lender, 

12 servicer, regulated lending institution, Federal agency 

13 lender, the Federal National Mortgage Association, or 

14 the Federal Home Loan Mortgage Corporation, at the 

15 discretion of such entity, from requiring the purchase 

16 of flood insurance coverage in connection with the 

17 making, increasing, extending, or renewing of a loan 

18 secured by improved real estate or a mobile home lo19 cated or to be located in such eligible area during 

20 such period or a lender or servicer from purchasing 

21 coverage on behalf of a borrower pursuant to sub22 section (e). 

23 ‘‘(3) ELIGIBLE AREAS.—An eligible area under 

24 this paragraph is an area that is designated or will, 

25 pursuant to any issuance, revision, updating, or other 


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1 change in flood insurance maps that takes effect on or 

2 after the date of the enactment of the Flood Insurance 

3 Reform Act of 2011, become designated as an area 

4 having special flood hazards and that meets any one 

5 of the following 3 requirements: 

6 ‘‘(A) AREAS WITH NO HISTORY OF SPECIAL

7 FLOOD HAZARDS.—The area does not include 

8 any area that has ever previously been des9 ignated as an area having special flood hazards. 

10 ‘‘(B) AREAS WITH FLOOD PROTECTION SYS11 TEMS UNDER IMPROVEMENTS.—The area was in12 tended to be protected by a flood protection sys13 tem— 

14 ‘‘(i) that has been decertified, or is re15 quired to be certified, as providing protec16 tion for the 100-year frequency flood stand17 ard; 

18 ‘‘(ii) that is being improved, con19 structed, or reconstructed; and 

20 ‘‘(iii) for which the Administrator has 

21 determined measurable progress toward 

22 completion of such improvement, construc23 tion, reconstruction is being made and to24 ward securing financial commitments suffi25 cient to fund such completion. 


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1 ‘‘(C) AREAS FOR WHICH APPEAL HAS BEEN

2 FILED.—An area for which a community has 

3 appealed— 

4 ‘‘(i) designation of the area as having 

5 special flood hazards in a timely manner 

6 under section 1363; or 

7 ‘‘(ii) any decertification or 

8 deaccreditation of a dam, levee, or other 

9 flood protection system or the level of pro10 tection afforded by a dam, levee, or system. 

11 ‘‘(4) EXTENSION OF DELAY.—Upon a request 

12 submitted by a local government authority having ju13 risdiction over any portion of the eligible area, the 

14 Administrator may extend the period during which a 

15 finding under paragraph (1) shall be effective, except 

16 that— 

17 ‘‘(A) each such extension under this para18 graph shall not be for a period exceeding 12 

19 months; and 

20 ‘‘(B) for any area, the cumulative number 

21 of such extensions may not exceed 2. 

22 ‘‘(5) RULE OF CONSTRUCTION.—Nothing in this 

23 subsection may be construed to affect the applicability 

24 of a designation of any area as an area having spe25 cial flood hazards for purposes of the availability of 


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1 flood insurance coverage, criteria for land manage2 ment and use, notification of flood hazards, eligibility 

3 for mitigation assistance, or any other purpose or 

4 provision not specifically referred to in paragraph 

5 (2). 

6 ‘‘(6) REPORTS.—The Administrator shall, in 

7 each annual report submitted pursuant to section 

8 1320, include information identifying each finding 

9 under paragraph (1) by the Administrator during the 

10 preceding year that an area is an area having special 

11 flood hazards, the basis for each such finding, any ex12 tensions pursuant to paragraph (4) of the periods of 

13 effectiveness of such findings, and the reasons for such 

14 extensions.’’. 

15 (2) NO REFUNDS.—Nothing in this subsection or 

16 the amendments made by this subsection may be con17 strued to authorize or require any payment or refund 

18 for flood insurance coverage purchased for any prop19 erty that covered any period during which such cov20 erage is not required for the property pursuant to the 

21 applicability of the amendment made by paragraph 

22 (1). 

23 (b) TERMINATION OF FORCE-PLACED INSURANCE.— 

24 Section 102(e) of the Flood Disaster Protection Act of 1973 

25 (42 U.S.C. 4012a(e)) is amended— 


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1 (1) in paragraph (2), by striking ‘‘insurance.’’ 

2 and inserting ‘‘insurance, including premiums or fees 

3 incurred for coverage beginning on the date on which 

4 flood insurance coverage lapsed or did not provide a 

5 sufficient coverage amount.’’; 

6 (2) by redesignating paragraphs (3) and (4) as 

7 paragraphs (5) and 6), respectively; and 

8 (3) by inserting after paragraph (2) the fol9 lowing new paragraphs: 

10 ‘‘(3) TERMINATION OF FORCE-PLACED INSUR11 ANCE.—Within 30 days of receipt by the lender or 

12 servicer of a confirmation of a borrower’s existing 

13 flood insurance coverage, the lender or servicer shall— 

14 ‘‘(A) terminate the force-placed insurance; 

15 and 

16 ‘‘(B) refund to the borrower all force-placed 

17 insurance premiums paid by the borrower dur18 ing any period during which the borrower’s flood 

19 insurance coverage and the force-placed flood in20 surance coverage were each in effect, and any re21 lated fees charged to the borrower with respect to 

22 the force-placed insurance during such period. 

23 ‘‘(4) SUFFICIENCY OF DEMONSTRATION.—For 

24 purposes of confirming a borrower’s existing flood in25 surance coverage, a lender or servicer for a loan shall 


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1 accept from the borrower an insurance policy declara2 tions page that includes the existing flood insurance 

3 policy number and the identity of, and contact infor4 mation for, the insurance company or agent.’’. 

5 (c) USE OF PRIVATE INSURANCE TO SATISFY MANDA6 TORY PURCHASE REQUIREMENT.—Section 102(b) of the 

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

8 is amended— 

9 (1) in paragraph (1)— 

10 (A) by striking ‘‘lending institutions not to 

11 make’’ and inserting ‘‘lending institutions— 

12 ‘‘(A) not to make’’; 

13 (B) in subparagraph (A), as designated by 

14 subparagraph (A) of this paragraph, by striking 

15 ‘‘less.’’ and inserting ‘‘less; and’’; and 

16 (C) by adding at the end the following new 

17 subparagraph: 

18 ‘‘(B) to accept private flood insurance as 

19 satisfaction of the flood insurance coverage re20 quirement under subparagraph (A) if the cov21 erage provided by such private flood insurance 

22 meets the requirements for coverage under such 

23 subparagraph.’’; 

24 (2) in paragraph (2), by inserting after ‘‘pro25 vided in paragraph (1).’’ the following new sentence: 


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1 ‘‘Each Federal agency lender shall accept private 

2 flood insurance as satisfaction of the flood insurance 

3 coverage requirement under the preceding sentence if 

4 the flood insurance coverage provided by such private 

5 flood insurance meets the requirements for coverage 

6 under such sentence.’’; 

7 (3) in paragraph (3), in the matter following 

8 subparagraph (B), by adding at the end the following 

9 new sentence: ‘‘The Federal National Mortgage Asso10 ciation and the Federal Home Loan Mortgage Cor11 poration shall accept private flood insurance as satis12 faction of the flood insurance coverage requirement 

13 under the preceding sentence if the flood insurance 

14 coverage provided by such private flood insurance 

15 meets the requirements for coverage under such sen16 tence.’’; and 

17 (4) by adding at the end the following new para18 graph: 

19 ‘‘(5) PRIVATE FLOOD INSURANCE DEFINED.—In 

20 this subsection, the term ‘private flood insurance’ 

21 means a contract for flood insurance coverage allowed 

22 for sale under the laws of any State.’’. 


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1 SEC. 4. REFORMS OF COVERAGE TERMS. 

2 (a) MINIMUM DEDUCTIBLES FOR CLAIMS.—Section 

3 1312 of the National Flood Insurance Act of 1968 (42 

4 U.S.C. 4019) is amended— 

5 (1) by striking ‘‘The Director is’’ and inserting 

6 the following: ‘‘(a) IN GENERAL.—The Administrator 

7 is’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(b) MINIMUM ANNUAL DEDUCTIBLES.— 

10 ‘‘(1) SUBSIDIZED RATE PROPERTIES.—For any 

11 structure that is covered by flood insurance under this 

12 title, and for which the chargeable rate for such cov13 erage is less than the applicable estimated risk pre14 mium rate under section 1307(a)(1) for the area (or 

15 subdivision thereof) in which such structure is lo16 cated, the minimum annual deductible for damage to 

17 or loss of such structure shall be $2,000. 

18 ‘‘(2) ACTUARIAL RATE PROPERTIES.—For any 

19 structure that is covered by flood insurance under this 

20 title, for which the chargeable rate for such coverage 

21 is not less than the applicable estimated risk pre22 mium rate under section 1307(a)(1) for the area (or 

23 subdivision thereof) in which such structure is lo24 cated, the minimum annual deductible for damage to 

25 or loss of such structure shall be $1,000.’’. 


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1 (b) CLARIFICATION OF RESIDENTIAL AND COMMER2 CIAL COVERAGE LIMITS.—Section 1306(b) of the National 

3 Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) is amend4 ed— 

5 (1) in paragraph (2)— 

6 (A) by striking ‘‘in the case of any residen7 tial property’’ and inserting ‘‘in the case of any 

8 residential building designed for the occupancy 

9 of from one to four families’’; and 

10 (B) by striking ‘‘shall be made available to 

11 every insured upon renewal and every applicant 

12 for insurance so as to enable such insured or ap13 plicant to receive coverage up to a total amount 

14 (including such limits specified in paragraph 

15 (1)(A)(i)) of $250,000’’ and inserting ‘‘shall be 

16 made available, with respect to any single such 

17 building, up to an aggregate liability (including 

18 such limits specified in paragraph (1)(A)(i)) of 

19 $250,000’’; and 

20 (2) in paragraph (4)— 

21 (A) by striking ‘‘in the case of any nonresi22 dential property, including churches,’’ and in23 serting ‘‘in the case of any nonresidential build24 ing, including a church,’’; and 


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1 (B) by striking ‘‘shall be made available to 

2 every insured upon renewal and every applicant 

3 for insurance, in respect to any single structure, 

4 up to a total amount (including such limit spec5 ified in subparagraph (B) or (C) of paragraph 

6 (1), as applicable) of $500,000 for each structure 

7 and $500,000 for any contents related to each 

8 structure’’ and inserting ‘‘shall be made avail9 able with respect to any single such building, up 

10 to an aggregate liability (including such limits 

11 specified in subparagraph (B) or (C) of para12 graph (1), as applicable) of $500,000, and cov13 erage shall be made available up to a total of 

14 $500,000 aggregate liability for contents owned 

15 by the building owner and $500,000 aggregate li16 ability for each unit within the building for con17 tents owned by the tenant’’. 

18 (c) INDEXING OF MAXIMUM COVERAGE LIMITS.—Sub19 section (b) of section 1306 of the National Flood Insurance 

20 Act of 1968 (42 U.S.C. 4013(b)) is amended— 

21 (1) in paragraph (4), by striking ‘‘and’’ at the 

22 end; 

23 (2) in paragraph (5), by striking the period at 

24 the end and inserting ‘‘; and’’; 


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1 (3) by redesignating paragraph (5) as para2 graph (7); and 

3 (4) by adding at the end the following new para4 graph: 

5 ‘‘(8) each of the dollar amount limitations under 

6 paragraphs (2), (3), (4), (5), and (6) shall be adjusted 

7 effective on the date of the enactment of the Flood In8 surance Reform Act of 2011, such adjustments shall 

9 be calculated using the percentage change, over the pe10 riod beginning on September 30, 1994, and ending on 

11 such date of enactment, in such inflationary index as 

12 the Administrator shall, by regulation, specify, and 

13 the dollar amount of such adjustment shall be round14 ed to the next lower dollar; and the Administrator 

15 shall cause to be published in the Federal Register the 

16 adjustments under this paragraph to such dollar 

17 amount limitations; except that in the case of cov18 erage for a property that is made available, pursuant 

19 to this paragraph, in an amount that exceeds the lim20 itation otherwise applicable to such coverage as speci21 fied in paragraph (2), (3), (4), (5), or (6), the total 

22 of such coverage shall be made available only at 

23 chargeable rates that are not less than the estimated 

24 premium rates for such coverage determined in ac25 cordance with section 1307(a)(1).’’. 


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1 (d) OPTIONAL COVERAGE FOR LOSS OF USE OF PER2 SONAL RESIDENCE AND BUSINESS INTERRUPTION.—Sub3 section (b) of section 1306 of the National Flood Insurance 

4 Act of 1968 (42 U.S.C. 4013(b)), as amended by the pre5 ceding provisions of this section, is further amended by in6 serting after paragraph (4) the following new paragraphs: 

7 ‘‘(5) the Administrator may provide that, in the 

8 case of any residential property, each renewal or new 

9 contract for flood insurance coverage may provide not 

10 more than $5,000 aggregate liability per dwelling 

11 unit for any necessary increases in living expenses in12 curred by the insured when losses from a flood make 

13 the residence unfit to live in, except that— 

14 ‘‘(A) purchase of such coverage shall be at 

15 the option of the insured; 

16 ‘‘(B) any such coverage shall be made avail17 able only at chargeable rates that are not less 

18 than the estimated premium rates for such cov19 erage determined in accordance with section 

20 1307(a)(1); and 

21 ‘‘(C) the Administrator may make such cov22 erage available only if the Administrator makes 

23 a determination and causes notice of such deter24 mination to be published in the Federal Register 

25 that— 


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1 ‘‘(i) a competitive private insurance 

2 market for such coverage does not exist; and 

3 ‘‘(ii) the national flood insurance pro4 gram has the capacity to make such cov5 erage available without borrowing funds 

6 from the Secretary of the Treasury under 

7 section 1309 or otherwise; 

8 ‘‘(6) the Administrator may provide that, in the 

9 case of any commercial property or other residential 

10 property, including multifamily rental property, cov11 erage for losses resulting from any partial or total 

12 interruption of the insured’s business caused by dam13 age to, or loss of, such property from a flood may be 

14 made available to every insured upon renewal and 

15 every applicant, up to a total amount of $20,000 per 

16 property, except that— 

17 ‘‘(A) purchase of such coverage shall be at 

18 the option of the insured; 

19 ‘‘(B) any such coverage shall be made avail20 able only at chargeable rates that are not less 

21 than the estimated premium rates for such cov22 erage determined in accordance with section 

23 1307(a)(1); and 

24 ‘‘(C) the Administrator may make such cov25 erage available only if the Administrator makes 


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1 a determination and causes notice of such deter2 mination to be published in the Federal Register 

3 that— 

4 ‘‘(i) a competitive private insurance 

5 market for such coverage does not exist; and 

6 ‘‘(ii) the national flood insurance pro7 gram has the capacity to make such cov8 erage available without borrowing funds 

9 from the Secretary of the Treasury under 

10 section 1309 or otherwise;’’. 

11 (e) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR

12 RESIDENTIAL PROPERTIES.—Section 1306 of the National 

13 Flood Insurance Act of 1968 (42 U.S.C. 4013) is amended 

14 by adding at the end the following new subsection: 

15 ‘‘(d) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR

16 RESIDENTIAL PROPERTIES.— 

17 ‘‘(1) AUTHORITY.—In addition to any other 

18 terms and conditions under subsection (a), such regu19 lations shall provide that, in the case of any residen20 tial property, premiums for flood insurance coverage 

21 made available under this title for such property may 

22 be paid in installments. 

23 ‘‘(2) LIMITATIONS.—In implementing the au24 thority under paragraph (1), the Administrator may 

25 establish increased chargeable premium rates and surVerDate Mar 15 2010 20:34 Jun 09, 2011 Jkt 099200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6203 E:\BILLS\H1309.RH H1309

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1 charges, and deny coverage and establish such other 

2 sanctions, as the Administrator considers necessary to 

3 ensure that insureds purchase, pay for, and maintain 

4 coverage for the full term of a contract for flood insur5 ance coverage or to prevent insureds from purchasing 

6 coverage only for periods during a year when risk of 

7 flooding is comparatively higher or canceling coverage 

8 for periods when such risk is comparatively lower.’’. 

9 SEC. 5. REFORMS OF PREMIUM RATES. 

10 (a) INCREASE IN ANNUAL LIMITATION ON PREMIUM

11 INCREASES.—Section 1308(e) of the National Flood Insur12 ance Act of 1968 (42 U.S.C. 4015(e)) is amended by strik13 ing ‘‘10 percent’’ and inserting ‘‘20 percent’’. 

14 (b) PHASE-IN OF RATES FOR CERTAIN PROPERTIES

15 IN NEWLY MAPPED AREAS.— 

16 (1) IN GENERAL.—Section 1308 of the National 

17 Flood Insurance Act of 1968 (42 U.S.C. 4015) is 

18 amended— 

19 (A) in subsection (a), in the matter pre20 ceding paragraph (1), by inserting ‘‘or notice’’ 

21 after ‘‘prescribe by regulation’’; 

22 (B) in subsection (c), by inserting ‘‘and 

23 subsection (g)’’ before the first comma; and 

24 (C) by adding at the end the following new 

25 subsection: 


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1 ‘‘(g) 5-YEAR PHASE-IN OF FLOOD INSURANCE RATES

2 FOR CERTAIN PROPERTIES IN NEWLY MAPPED AREAS.— 

3 ‘‘(1) 50 PERCENT RATE FOR INITIAL YEAR.—Not4 withstanding subsection (c) or any other provision of 

5 law relating to chargeable risk premium rates for 

6 flood insurance coverage under this title, in the case 

7 of any area that was not previously designated as an 

8 area having special flood hazards and that, pursuant 

9 to any issuance, revision, updating, or other change 

10 in flood insurance maps, becomes designated as such 

11 an area, during the 12-month period that begins, ex12 cept as provided in paragraph (2), upon the date that 

13 such maps, as issued, revised, updated, or otherwise 

14 changed, become effective, the chargeable premium 

15 rate for flood insurance under this title with respect 

16 to any covered property that is located within such 

17 area shall be 50 percent of the chargeable risk pre18 mium rate otherwise applicable under this title to the 

19 property. 

20 ‘‘(2) APPLICABILITY TO PREFERRED RISK RATE

21 AREAS.—In the case of any area described in para22 graph (1) that consists of or includes an area that, 

23 as of date of the effectiveness of the flood insurance 

24 maps for such area referred to in paragraph (1) as 

25 so issued, revised, updated, or changed, is eligible for 


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1 any reason for preferred risk rate method premiums 

2 for flood insurance coverage and was eligible for such 

3 premiums as of the enactment of the Flood Insurance 

4 Reform Act of 2011, the 12-month period referred to 

5 in paragraph (1) for such area eligible for preferred 

6 risk rate method premiums shall begin upon the expi7 ration of the period during which such area is eligible 

8 for such preferred risk rate method premiums. 

9 ‘‘(3) PHASE-IN OF FULL ACTUARIAL RATES.— 

10 With respect to any area described in paragraph (1), 

11 upon the expiration of the 12-month period under 

12 paragraph (1) or (2), as applicable, for such area, the 

13 Administrator shall increase the chargeable risk pre14 mium rates for flood insurance under this title for 

15 covered properties in such area by 20 percent, and by 

16 20 percent upon the expiration of each successive 12- 

17 month period thereafter until the chargeable risk pre18 mium rates comply with subsection (c). 

19 ‘‘(4) COVERED PROPERTIES.—For purposes of 

20 the subsection, the term ‘covered property’ means any 

21 residential property occupied by its owner or a bona 

22 fide tenant as a primary residence.’’. 

23 (2) REGULATION OR NOTICE.—The Adminis24 trator of the Federal Emergency Management Agency 

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1 ment this subsection and the amendments made by 

2 this subsection as soon as practicable after the date of 

3 the enactment of this Act. 

4 (c) PHASE-IN OF ACTUARIAL RATES FOR CERTAIN

5 PROPERTIES.— 

6 (1) IN GENERAL.—Section 1308(c) of the Na7 tional Flood Insurance Act of 1968 (42 U.S.C. 

8 4015(c)) is amended— 

9 (A) by redesignating paragraph (2) as 

10 paragraph (7); and 

11 (B) by inserting after paragraph (1) the fol12 lowing new paragraphs: 

13 ‘‘(2) COMMERCIAL PROPERTIES.—Any nonresi14 dential property. 

15 ‘‘(3) SECOND HOMES AND VACATION HOMES.— 

16 Any residential property that is not the primary resi17 dence of any individual. 

18 ‘‘(4) HOMES SOLD TO NEW OWNERS.—Any single 

19 family property that— 

20 ‘‘(A) has been constructed or substantially 

21 improved and for which such construction or im22 provement was started, as determined by the Ad23 ministrator, before December 31, 1974, or before 

24 the effective date of the initial rate map pub25 lished by the Administrator under paragraph (2) 


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1 of section 1360(a) for the area in which such 

2 property is located, whichever is later; and 

3 ‘‘(B) is purchased after the effective date of 

4 this paragraph, pursuant to section 5(c)(3)(A) of 

5 the Flood Insurance Reform Act of 2011. 

6 ‘‘(5) HOMES DAMAGED OR IMPROVED.—Any 

7 property that, on or after the date of the enactment 

8 of the Flood Insurance Reform Act of 2011, has expe9 rienced or sustained— 

10 ‘‘(A) substantial flood damage exceeding 50 

11 percent of the fair market value of such property; 

12 or 

13 ‘‘(B) substantial improvement exceeding 30 

14 percent of the fair market value of such property. 

15 ‘‘(6) HOMES WITH MULTIPLE CLAIMS.—Any se16 vere repetitive loss property (as such term is defined 

17 in section 1361A(b)).’’. 

18 (2) TECHNICAL AMENDMENTS.—Section 1308 of 

19 the National Flood Insurance Act of 1968 (42 U.S.C. 

20 4015) is amended— 

21 (A) in subsection (c)— 

22 (i) in the matter preceding paragraph 

23 (1), by striking ‘‘the limitations provided 

24 under paragraphs (1) and (2)’’ and insert25 ing ‘‘subsection (e)’’; and 


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1 (ii) in paragraph (1), by striking ‘‘, 

2 except’’ and all that follows through ‘‘sub3 section (e)’’; and 

4 (B) in subsection (e), by striking ‘‘para5 graph (2) or (3)’’ and inserting ‘‘paragraph 

6 (7)’’. 

7 (3) EFFECTIVE DATE AND TRANSITION.— 

8 (A) EFFECTIVE DATE.—The amendments 

9 made by paragraphs (1) and (2) shall apply be10 ginning upon the expiration of the 12-month pe11 riod that begins on the date of the enactment of 

12 this Act, except as provided in subparagraph (B) 

13 of this paragraph. 

14 (B) TRANSITION FOR PROPERTIES COVERED

15 BY FLOOD INSURANCE UPON EFFECTIVE DATE.— 

16 (i) INCREASE OF RATES OVER TIME.— 

17 In the case of any property described in 

18 paragraph (2), (3), (4), (5), or (6) of section 

19 1308(c) of the National Flood Insurance Act 

20 of 1968, as amended by paragraph (1) of 

21 this subsection, that, as of the effective date 

22 under subparagraph (A) of this paragraph, 

23 is covered under a policy for flood insurance 

24 made available under the national flood in25 surance program for which the chargeable 


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1 premium rates are less than the applicable 

2 estimated risk premium rate under section 

3 1307(a)(1) of such Act for the area in which 

4 the property is located, the Administrator of 

5 the Federal Emergency Management Agency 

6 shall increase the chargeable premium rates 

7 for such property over time to such applica8 ble estimated risk premium rate under sec9 tion 1307(a)(1). 

10 (ii) AMOUNT OF ANNUAL INCREASE.— 

11 Such increase shall be made by increasing 

12 the chargeable premium rates for the prop13 erty (after application of any increase in 

14 the premium rates otherwise applicable to 

15 such property), once during the 12-month 

16 period that begins upon the effective date 

17 under subparagraph (A) of this paragraph 

18 and once every 12 months thereafter until 

19 such increase is accomplished, by 20 percent 

20 (or such lesser amount as may be necessary 

21 so that the chargeable rate does not exceed 

22 such applicable estimated risk premium 

23 rate or to comply with clause (iii)). 

24 (iii) PROPERTIES SUBJECT TO PHASE25 IN AND ANNUAL INCREASES.—In the case of 


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1 any pre-FIRM property (as such term is 

2 defined in section 578(b) of the National 

3 Flood Insurance Reform Act of 1974), the 

4 aggregate increase, during any 12-month 

5 period, in the chargeable premium rate for 

6 the property that is attributable to this sub7 paragraph or to an increase described in 

8 section 1308(e) of the National Flood Insur9 ance Act of 1968 may not exceed 20 percent. 

10 (iv) FULL ACTUARIAL RATES.—The 

11 provisions of paragraphs (2), (3), (4), (5), 

12 and (6) of such section 1308(c) shall apply 

13 to such a property upon the accomplishment 

14 of the increase under this subparagraph and 

15 thereafter. 

16 (d) PROHIBITION OF EXTENSION OF SUBSIDIZED

17 RATES TO LAPSED POLICIES.—Section 1308 of the Na18 tional Flood Insurance Act of 1968 (42 U.S.C. 4015), as 

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

20 amended— 

21 (1) in subsection (e), by inserting ‘‘or subsection 

22 (h)’’ after ‘‘subsection (c)’’; 

23 (2) by adding at the end the following new sub24 section: 


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1 ‘‘(h) PROHIBITION OF EXTENSION OF SUBSIDIZED

2 RATES TO LAPSED POLICIES.—Notwithstanding any other 

3 provision of law relating to chargeable risk premium rates 

4 for flood insurance coverage under this title, the Adminis5 trator shall not provide flood insurance coverage under this 

6 title for any property for which a policy for such coverage 

7 for the property has previously lapsed in coverage as a re8 sult of the deliberate choice of the holder of such policy, at 

9 a rate less than the applicable estimated risk premium rates 

10 for the area (or subdivision thereof) in which such property 

11 is located.’’. 

12 (e) RECOGNITION OF STATE AND LOCAL FUNDING FOR

13 CONSTRUCTION, RECONSTRUCTION, AND IMPROVEMENT OF

14 FLOOD PROTECTION SYSTEMS IN DETERMINATION OF

15 RATES.— 

16 (1) IN GENERAL.—Section 1307 of the National 

17 Flood Insurance Act of 1968 (42 U.S.C. 4014) is 

18 amended— 

19 (A) in subsection (e)— 

20 (i) in the first sentence, by striking 

21 ‘‘construction of a flood protection system’’ 

22 and inserting ‘‘construction, reconstruction, 

23 or improvement of a flood protection system 

24 (without respect to the level of Federal in25 vestment or participation)’’; and 


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1 (ii) in the second sentence— 

2 (I) by striking ‘‘construction of a 

3 flood protection system’’ and inserting 

4 ‘‘construction, reconstruction, or im5 provement of a flood protection sys6 tem’’; and 

7 (II) by inserting ‘‘based on the 

8 present value of the completed system’’ 

9 after ‘‘has been expended’’; and 

10 (B) in subsection (f)— 

11 (i) in the first sentence in the matter 

12 preceding paragraph (1), by inserting 

13 ‘‘(without respect to the level of Federal in14 vestment or participation)’’ before the pe15 riod at the end; 

16 (ii) in the third sentence in the matter 

17 preceding paragraph (1), by inserting ‘‘, 

18 whether coastal or riverine,’’ after ‘‘special 

19 flood hazard’’; and 

20 (iii) in paragraph (1), by striking ‘‘a 

21 Federal agency in consultation with the 

22 local project sponsor’’ and inserting ‘‘the en23 tity or entities that own, operate, maintain, 

24 or repair such system’’. 


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1 (2) REGULATIONS.—The Administrator of the 

2 Federal Emergency Management Agency shall pro3 mulgate regulations to implement this subsection and 

4 the amendments made by this subsection as soon as 

5 practicable, but not more than 18 months after the 

6 date of the enactment of this Act. Paragraph (3) may 

7 not be construed to annul, alter, affect, authorize any 

8 waiver of, or establish any exception to, the require9 ment under the preceding sentence. 

10 SEC. 6. TECHNICAL MAPPING ADVISORY COUNCIL. 

11 (a) ESTABLISHMENT.—There is established a council 

12 to be known as the Technical Mapping Advisory Council 

13 (in this section referred to as the ‘‘Council’’). 

14 (b) MEMBERSHIP.— 

15 (1) IN GENERAL.—The Council shall consist of— 

16 (A) the Administrator of the Federal Emer17 gency Management Agency (in this section re18 ferred to as the ‘‘Administrator’’), or the designee 

19 thereof; 

20 (B) the Director of the United States Geo21 logical Survey of the Department of the Interior, 

22 or the designee thereof; 

23 (C) the Under Secretary of Commerce for 

24 Oceans and Atmosphere, or the designee thereof; 


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1 (D) the commanding officer of the United 

2 States Army Corps of Engineers, or the designee 

3 thereof; 

4 (E) the chief of the Natural Resources Con5 servation Service of the Department of Agri6 culture, or the designee thereof; 

7 (F) the Director of the United States Fish 

8 and Wildlife Service of the Department of the In9 terior, or the designee thereof; 

10 (G) the Assistant Administrator for Fish11 eries of the National Oceanic and Atmospheric 

12 Administration of the Department of Commerce, 

13 or the designee thereof; and 

14 (H) 14 additional members to be appointed 

15 by the Administrator of the Federal Emergency 

16 Management Agency, who shall be— 

17 (i) an expert in data management; 

18 (ii) an expert in real estate; 

19 (iii) an expert in insurance; 

20 (iv) a member of a recognized regional 

21 flood and storm water management organi22 zation; 

23 (v) a representative of a State emer24 gency management agency or association or 

25 organization for such agencies; 


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1 (vi) a member of a recognized profes2 sional surveying association or organiza3 tion; 

4 (vii) a member of a recognized profes5 sional mapping association or organization; 

6 (viii) a member of a recognized profes7 sional engineering association or organiza8 tion; 

9 (ix) a member of a recognized profes10 sional association or organization rep11 resenting flood hazard determination firms; 

12 (x) a representative of State national 

13 flood insurance coordination offices; 

14 (xi) representatives of two local govern15 ments, at least one of whom is a local levee 

16 flood manager or executive, designated by 

17 the Federal Emergency Management Agency 

18 as Cooperating Technical Partners; and 

19 (xii) representatives of two State gov20 ernments designated by the Federal Emer21 gency Management Agency as Cooperating 

22 Technical States. 

23 (2) QUALIFICATIONS.—Members of the Council 

24 shall be appointed based on their demonstrated knowl25 edge and competence regarding surveying, cartogVerDate Mar 15 2010 20:34 Jun 09, 2011 Jkt 099200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6203 E:\BILLS\H1309.RH H1309

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1 raphy, remote sensing, geographic information sys2 tems, or the technical aspects of preparing and using 

3 flood insurance rate maps. In appointing members 

4 under paragraph (1)(I), the Administrator shall en5 sure that the membership of the Council has a balance 

6 of Federal, State, local, and private members. 

7 (c) DUTIES.— 

8 (1) NEW MAPPING STANDARDS.—Not later than 

9 the expiration of the 12-month period beginning upon 

10 the date of the enactment of this Act, the Council shall 

11 develop and submit to the Administrator and the 

12 Congress proposed new mapping standards for 100- 

13 year flood insurance rate maps used under the na14 tional flood insurance program under the National 

15 Flood Insurance Act of 1968. In developing such pro16 posed standards the Council shall— 

17 (A) ensure that the flood insurance rate 

18 maps reflect true risk, including graduated risk 

19 that better reflects the financial risk to each 

20 property; such reflection of risk should be at the 

21 smallest geographic level possible (but not nec22 essarily property-by-property) to ensure that 

23 communities are mapped in a manner that takes 

24 into consideration different risk levels within the 

25 community; 


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1 (B) ensure the most efficient generation, 

2 display, and distribution of flood risk data, mod3 els, and maps where practicable through dy4 namic digital environments using spatial data5 base technology and the Internet; 

6 (C) ensure that flood insurance rate maps 

7 reflect current hydrologic and hydraulic data, 

8 current land use, and topography, incorporating 

9 the most current and accurate ground and bath10 ymetric elevation data; 

11 (D) determine the best ways to include in 

12 such flood insurance rate maps levees, decertified 

13 levees, and areas located below dams, including 

14 determining a methodology for ensuring that de15 certified levees and other protections are included 

16 in flood insurance rate maps and their cor17 responding flood zones reflect the level of protec18 tion conferred; 

19 (E) consider how to incorporate restored 

20 wetlands and other natural buffers into flood in21 surance rate maps, which may include wetlands, 

22 groundwater recharge areas, erosion zones, mean23 der belts, endangered species habitat, barrier is24 lands and shoreline buffer features, riparian for25 ests, and other features; 


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1 (F) consider whether to use vertical posi2 tioning (as defined by the Administrator) for 

3 flood insurance rate maps; 

4 (G) ensure that flood insurance rate maps 

5 differentiate between a property that is located 

6 in a flood zone and a structure located on such 

7 property that is not at the same risk level for 

8 flooding as such property due to the elevation of 

9 the structure; 

10 (H) ensure that flood insurance rate maps 

11 take into consideration the best scientific data 

12 and potential future conditions (including pro13 jections for sea level rise); and 

14 (I) consider how to incorporate the new 

15 standards proposed pursuant to this paragraph 

16 in existing mapping efforts. 

17 (2) ONGOING DUTIES.—The Council shall, on an 

18 ongoing basis, review the mapping protocols developed 

19 pursuant to paragraph (1), and make recommenda20 tions to the Administrator when the Council deter21 mines that mapping protocols should be altered. 

22 (3) MEETINGS.—In carrying out its duties under 

23 this section, the Council shall consult with stake24 holders through at least 4 public meetings annually, 

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1 cluding State and local representatives, environ2 mental and conservation organizations, insurance in3 dustry representatives, advocacy groups, planning or4 ganizations, and mapping organizations. 

5 (d) PROHIBITION ON COMPENSATION.—Members of the 

6 Council shall receive no additional compensation by reason 

7 of their service on the Council. 

8 (e) CHAIRPERSON.—The Administrator shall serve as 

9 the Chairperson of the Council. 

10 (f) STAFF.— 

11 (1) FEMA.—Upon the request of the Council, the 

12 Administrator may detail, on a nonreimbursable 

13 basis, personnel of the Federal Emergency Manage14 ment Agency to assist the Council in carrying out its 

15 duties. 

16 (2) OTHER FEDERAL AGENCIES.—Upon request 

17 of the Council, any other Federal agency that is a 

18 member of the Council may detail, on a non-reim19 bursable basis, personnel to assist the Council in car20 rying out its duties. 

21 (g) POWERS.—In carrying out this section, the Coun22 cil may hold hearings, receive evidence and assistance, pro23 vide information, and conduct research, as the Council con24 siders appropriate. 


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1 (h) TERMINATION.—The Council shall terminate upon 

2 the expiration of the 5-year period beginning on the date 

3 of the enactment of this Act. 

4 SEC. 7. FEMA INCORPORATION OF NEW MAPPING PROTO5 COLS. 

6 (a) NEW RATE MAPPING STANDARDS.—Not later than 

7 the expiration of the 6-month period beginning upon sub8 mission by the Technical Mapping Advisory Council under 

9 section 6 of the proposed new mapping standards for flood 

10 insurance rate maps used under the national flood insur11 ance program developed by the Council pursuant to section 

12 6(c), the Administrator of the Federal Emergency Manage13 ment Agency (in this section referred to as the ‘‘Adminis14 trator’’) shall establish new standards for such rate maps 

15 based on such proposed new standards and the rec16 ommendations of the Council. 

17 (b) REQUIREMENTS.—The new standards for flood in18 surance rate maps established by the Administrator pursu19 ant to subsection (a) shall— 

20 (1) delineate and include in any such rate 

21 maps— 

22 (A) all areas located within the 100-year 

23 flood plain; 


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1 (B) areas of residual risk, including areas 

2 behind levees, dams, and other man-made struc3 tures; and 

4 (C) areas subject to graduated and other 

5 risk levels, to the maximum extent possible; 

6 (2) ensure that any such rate maps— 

7 (A) include levees, including decertified lev8 ees, and the level of protection they confer; 

9 (B) reflect current land use and topography 

10 and incorporate the most current and accurate 

11 ground level data; 

12 (C) take into consideration the impacts and 

13 use of fill and the flood risks associated with al14 tered hydrology; 

15 (D) differentiate between a property that is 

16 located in a flood zone and a structure located 

17 on such property that is not at the same risk 

18 level for flooding as such property due to the ele19 vation of the structure; 

20 (E) identify and incorporate natural fea21 tures and their associated flood protection bene22 fits into mapping and rates; and 

23 (F) identify, analyze, and incorporate the 

24 impact of significant changes to building and de25 velopment throughout any river or costal water 


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1 system, including all tributaries, which may im2 pact flooding in areas downstream; and 

3 (3) provide that such rate maps are developed on 

4 a watershed basis. 

5 (c) REPORT.—If, in establishing new standards for 

6 flood insurance rate maps pursuant to subsection (a) of this 

7 section, the Administrator does not implement all of the rec8 ommendations of the Council made under the proposed new 

9 mapping standards developed by the Council pursuant to 

10 section 6(c), upon establishment of the new standards the 

11 Administrator shall submit a report to the Committee on 

12 Financial Services of the House of Representatives and the 

13 Committee on Banking, Housing, and Urban Affairs of the 

14 Senate specifying which such recommendations were not 

15 adopted and explaining the reasons such recommendations 

16 were not adopted. 

17 (d) IMPLEMENTATION.—The Administrator shall, not 

18 later than the expiration of the 6-month period beginning 

19 upon establishment of the new standards for flood insurance 

20 rate maps pursuant to subsection (a) of this section, com21 mence use of the new standards and updating of flood insur22 ance rate maps in accordance with the new standards. Not 

23 later than the expiration of the 5-year period beginning 

24 upon the establishment of such new standards, the Adminis25 trator shall complete updating of all flood insurance rate 


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1 maps in accordance with the new standards, subject to the 

2 availability of sufficient amounts for such activities pro3 vided in appropriation Acts. 

4 (e) TEMPORARY SUSPENSION OF MANDATORY PUR5 CHASE REQUIREMENT FOR CERTAIN PROPERTIES.— 

6 (1) SUBMISSION OF ELEVATION CERTIFICATE.— 

7 Subject to paragraphs (2) and (3) of this subsection, 

8 subsections (a), (b), and (e) of section 102 of the Flood 

9 Disaster Protection Act of 1973 (42 U.S.C. 4012a), 

10 and section 202(a) of such Act, shall not apply to a 

11 property located in an area designated as having a 

12 special flood hazard if the owner of such property sub13 mits to the Administrator an elevation certificate for 

14 such property showing that the lowest level of the pri15 mary residence on such property is at an elevation 

16 that is at least three feet higher than the elevation of 

17 the 100-year flood plain. 

18 (2) REVIEW OF SURVEY.—The Administrator 

19 shall accept as conclusive each elevation survey sub20 mitted under paragraph (1) unless the Administrator 

21 conducts a subsequent elevation survey and deter22 mines that the lowest level of the primary residence 

23 on the property in question is not at an elevation that 

24 is at least three feet higher than the elevation of the 

25 100-year flood plain. The Administrator shall provide 


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1 any such subsequent elevation survey to the owner of 

2 such property. 

3 (3) DETERMINATIONS FOR PROPERTIES ON BOR4 DERS OF SPECIAL FLOOD HAZARD AREAS.— 

5 (A) EXPEDITED DETERMINATION.—In the 

6 case of any survey for a property submitted to 

7 the Administrator pursuant to paragraph (1) 

8 showing that a portion of the property is located 

9 within an area having special flood hazards and 

10 that a structure located on the property is not lo11 cated within such area having special flood haz12 ards, the Administrator shall expeditiously proc13 ess any request made by an owner of the prop14 erty for a determination pursuant to paragraph 

15 (2) or a determination of whether the structure 

16 is located within the area having special flood 

17 hazards. 

18 (B) PROHIBITION OF FEE.—If the Adminis19 trator determines pursuant to subparagraph (A) 

20 that the structure on the property is not located 

21 within the area having special flood hazards, the 

22 Administrator shall not charge a fee for review23 ing the flood hazard data and shall not require 

24 the owner to provide any additional elevation 

25 data. 


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1 (C) SIMPLIFICATION OF REVIEW PROC2 ESS.—The Administrator shall collaborate with 

3 private sector flood insurers to simplify the re4 view process for properties described in subpara5 graph (A) and to ensure that the review process 

6 provides for accurate determinations. 

7 (4) TERMINATION OF AUTHORITY.—This sub8 section shall cease to apply to a property on the date 

9 on which the Administrator updates the flood insur10 ance rate map that applies to such property in ac11 cordance with the requirements of subsection (d). 

12 SEC. 8. TREATMENT OF LEVEES. 

13 Section 1360 of the National Flood Insurance Act of 

14 1968 (42 U.S.C. 4101) is amended by adding at the end 

15 the following new subsection: 

16 ‘‘(k) TREATMENT OF LEVEES.—The Administrator 

17 may not issue flood insurance maps, or make effective up18 dated flood insurance maps, that omit or disregard the ac19 tual protection afforded by an existing levee, floodwall, 

20 pump or other flood protection feature, regardless of the ac21 creditation status of such feature.’’. 

22 SEC. 9. PRIVATIZATION INITIATIVES. 

23 (a) FEMA AND GAO REPORTS.—Not later than the 

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

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1 eral Emergency Management Agency and the Comptroller 

2 General of the United States shall each conduct a separate 

3 study to assess a broad range of options, methods, and strat4 egies for privatizing the national flood insurance program 

5 and shall each submit a report to the Committee on Finan6 cial Services of the House of Representatives and the Com7 mittee on Banking, Housing, and Urban Affairs of the Sen8 ate with recommendations for the best manner to accom9 plish such privatization. 

10 (b) PRIVATE RISK-MANAGEMENT INITIATIVES.— 

11 (1) AUTHORITY.—The Administrator of the Fed12 eral Emergency Management Agency may carry out 

13 such private risk-management initiatives under the 

14 national flood insurance program as the Adminis15 trator considers appropriate to determine the capac16 ity of private insurers, reinsurers, and financial mar17 kets to assist communities, on a voluntary basis only, 

18 in managing the full range of financial risks associ19 ated with flooding. 

20 (2) ASSESSMENT.—Not later than the expiration 

21 of the 12-month period beginning on the date of the 

22 enactment of this Act, the Administrator shall assess 

23 the capacity of the private reinsurance, capital, and 

24 financial markets by seeking proposals to assume a 

25 portion of the program’s insurance risk and submit to 


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1 the Congress a report describing the response to such 

2 request for proposals and the results of such assess3 ment. 

4 (3) PROTOCOL FOR RELEASE OF DATA.—The Ad5 ministrator shall develop a protocol to provide for the 

6 release of data sufficient to conduct the assessment re7 quired under paragraph (2). 

8 (c) REINSURANCE.—The National Flood Insurance Act 

9 of 1968 is amended— 

10 (1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), 

11 by inserting ‘‘, including as reinsurance of insurance 

12 coverage provided by the flood insurance program’’ 

13 before ‘‘, on such terms’’; 

14 (2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), 

15 by inserting ‘‘or reinsurance’’ after ‘‘flood insurance 

16 coverage’’; 

17 (3) in section 1335(a) (42 U.S.C. 4055(a))— 

18 (A) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 

19 (B) by adding at the end the following new 

20 paragraph: 

21 ‘‘(2) The Administrator is authorized to secure rein22 surance coverage of coverage provided by the flood insurance 

23 program from private market insurance, reinsurance, and 

24 capital market sources at rates and on terms determined 

25 by the Administrator to be reasonable and appropriate in 


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1 an amount sufficient to maintain the ability of the program 

2 to pay claims and that minimizes the likelihood that the 

3 program will utilize the borrowing authority provided 

4 under section 1309.’’; 

5 (4) in section 1346(a) (12 U.S.C. 4082(a))— 

6 (A) in the matter preceding paragraph (1), 

7 by inserting ‘‘, or for purposes of securing rein8 surance of insurance coverage provided by the 

9 program,’’ before ‘‘of any or all of’’; 

10 (B) in paragraph (1)— 

11 (i) by striking ‘‘estimating’’ and in12 serting ‘‘Estimating’’; and 

13 (ii) by striking the semicolon at the 

14 end and inserting a period; 

15 (C) in paragraph (2)— 

16 (i) by striking ‘‘receiving’’ and insert17 ing ‘‘Receiving’’; and 

18 (ii) by striking the semicolon at the 

19 end and inserting a period; 

20 (D) in paragraph (3)— 

21 (i) by striking ‘‘making’’ and inserting 

22 ‘‘Making’’; and 

23 (ii) by striking ‘‘; and’’ and inserting 

24 a period; 

25 (E) in paragraph (4)— 


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1 (i) by striking ‘‘otherwise’’ and insert2 ing ‘‘Otherwise’’; and 

3 (ii) by redesignating such paragraph 

4 as paragraph (5); and 

5 (F) by inserting after paragraph (3) the fol6 lowing new paragraph: 

7 ‘‘(4) Placing reinsurance coverage on insurance 

8 provided by such program.’’; and 

9 (5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), 

10 by inserting before the semicolon at the end the fol11 lowing: ‘‘, is subject to the reporting requirements of 

12 the Securities Exchange Act of 1934, pursuant to sec13 tion 13(a) or 15(d) of such Act (15 U.S.C. 78m(a), 

14 78o(d)), or is authorized by the Administrator to as15 sume reinsurance on risks insured by the flood insur16 ance program’’. 

17 (d) ASSESSMENT OF CLAIMS-PAYING ABILITY.— 

18 (1) ASSESSMENT.—Not later than September 30 

19 of each year, the Administrator of the Federal Emer20 gency Management Agency shall conduct an assess21 ment of the claims-paying ability of the national 

22 flood insurance program, including the program’s uti23 lization of private sector reinsurance and reinsurance 

24 equivalents, with and without reliance on borrowing 

25 authority under section 1309 of the National Flood 


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1 Insurance Act of 1968 (42 U.S.C. 4016). In con2 ducting the assessment, the Administrator shall take 

3 into consideration regional concentrations of coverage 

4 written by the program, peak flood zones, and rel5 evant mitigation measures. 

6 (2) REPORT.—The Administrator shall submit a 

7 report to the Congress of the results of each such as8 sessment, and make such report available to the pub9 lic, not later than 30 days after completion of the as10 sessment. 

11 SEC. 10. FEMA ANNUAL REPORT ON INSURANCE PROGRAM. 

12 Section 1320 of the National Flood Insurance Act of 

13 1968 (42 U.S.C. 4027) is amended— 

14 (1) in the section heading, by striking ‘‘REPORT

15 TO THE PRESIDENT’’ and inserting ‘‘ANNUAL REPORT

16 TO CONGRESS’’; 

17 (2) in subsection (a)— 

18 (A) by striking ‘‘biennially’’; 

19 (B) by striking ‘‘the President for submis20 sion to’’; and 

21 (C) by inserting ‘‘not later than June 30 of 

22 each year’’ before the period at the end; 

23 (3) in subsection (b), by striking ‘‘biennial’’ and 

24 inserting ‘‘annual’’; and 


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1 (4) by adding at the end the following new sub2 section: 

3 ‘‘(c) FINANCIAL STATUS OF PROGRAM.—The report 

4 under this section for each year shall include information 

5 regarding the financial status of the national flood insur6 ance program under this title, including a description of 

7 the financial status of the National Flood Insurance Fund 

8 and current and projected levels of claims, premium re9 ceipts, expenses, and borrowing under the program.’’. 

10 SEC. 11. ACTUARIAL RATES FOR SEVERE REPETITIVE LOSS 

11 PROPERTIES REFUSING MITIGATION OR PUR12 CHASE OFFERS. 

13 Subsection (h) of section 1361A of the National Flood 

14 Insurance Act of 1968 (42 U.S.C. 4102a(h)) is amended— 

15 (1) in paragraph (1)— 

16 (A) in subparagraph (B), by striking ‘‘150 

17 percent’’ and all that follows through ‘‘para18 graph (3)’’ and inserting ‘‘the applicable esti19 mated risk premium rate for such coverage for 

20 the area (or subdivision thereof) determined in 

21 accordance with section 1307(a), subject to 

22 phase-in of such rates in the same manner pro23 vided under paragraph (2) of section 1308(g) for 

24 properties described in paragraph (1) of such 

25 section’’; and 


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1 (B) by inserting after and below subpara2 graph (B) the following: 

3 ‘‘An offer to take action under paragraph (1) or (2) 

4 of subsection (c) shall be considered to be made for 

5 purposes of this paragraph with respect to a severe re6 petitive loss property regardless of the time that the 

7 offer was made and regardless of whether the Admin8 istrator has transferred financial assistance under 

9 this section to the State or community making the 

10 offer for funding such action, but only if the owner 

11 of the property is provided a reasonable period of 

12 time, not to exceed 15 days, to respond to the offer.’’; 

13 (2) by striking paragraphs (2) and (3); and 

14 (3) by redesignating paragraphs (4) through (6) 

15 as paragraphs (2) through (4), respectively. 

16 SEC. 12. MITIGATION ASSISTANCE. 

17 Subsection (e) of section 1366 of the National Flood 

18 Insurance Act of 1968 (42 U.S.C. 4104c(e)) is amended by 

19 adding at the end the following new paragraph: 

20 ‘‘(6) ELIGIBILITY OF DEMOLITION AND REBUILD21 ING OF PROPERTIES.—The Administrator shall con22 sider as an eligible activity the demolition and re23 building of properties to at least base flood levels or 

24 higher, if required by the Administrator or if required 

25 by any State or local ordinance, and in accordance 


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1 with project implementation criteria established by 

2 the Administrator.’’. 

3 SEC. 13. GRANTS FOR DIRECT FUNDING OF MITIGATION AC4 TIVITIES FOR INDIVIDUAL REPETITIVE 

5 CLAIMS PROPERTIES. 

6 (a) DIRECT GRANTS TO OWNERS.—Section 1323 of the 

7 National Flood Insurance Act of 1968 (42 U.S.C. 4030) is 

8 amended— 

9 (1) in the section heading, by inserting ‘‘DI10 RECT’’ before ‘‘GRANTS’’; and 

11 (2) in subsection (a), in the the matter preceding 

12 paragraph (1)— 

13 (A) by inserting ‘‘, to owners of such prop14 erties,’’ before ‘‘for mitigation actions’’; and 

15 (B) by striking ‘‘1’’ and inserting ‘‘two’’. 

16 (b) AVAILABILITY OF FUNDS.—Paragraph (9) of sec17 tion 1310(a) of the National Flood Insurance Act of 1968 

18 (42 U.S.C. 4017(a)) is amended by inserting ‘‘which shall 

19 remain available until expended,’’ after ‘‘any fiscal year,’’. 

20 SEC. 14. NOTIFICATION TO HOMEOWNERS REGARDING 

21 MANDATORY PURCHASE REQUIREMENT AP22 PLICABILITY AND RATE PHASE-INS. 

23 Section 201 of the Flood Disaster Protection Act of 

24 1973 (42 U.S.C. 4105) is amended by adding at the end 

25 the following new subsection: 


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1 ‘‘(f) ANNUAL NOTIFICATION.—The Administrator, in 

2 consultation with affected communities, shall establish and 

3 carry out a plan to notify residents of areas having special 

4 flood hazards, on an annual basis— 

5 ‘‘(1) that they reside in such an area; 

6 ‘‘(2) of the geographical boundaries of such area; 

7 ‘‘(3) of whether section 1308(h) of the National 

8 Flood Insurance Act of 1968 applies to properties 

9 within such area; 

10 ‘‘(4) of the provisions of section 102 requiring 

11 purchase of flood insurance coverage for properties lo12 cated in such an area, including the date on which 

13 such provisions apply with respect to such area, tak14 ing into consideration section 102(i); and 

15 ‘‘(5) of a general estimate of what similar home16 owners in similar areas typically pay for flood insur17 ance coverage, taking into consideration section 

18 1308(g) of the National Flood Insurance Act of 

19 1968.’’. 

20 SEC. 15. NOTIFICATION OF ESTABLISHMENT OF FLOOD 

21 ELEVATIONS. 

22 Section 1360 of the National Flood Insurance Act of 

23 1968 (42 U.S.C. 4101), as amended by the preceding provi24 sions of this Act, is further amended by adding at the end 

25 the following new subsection: 


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1 ‘‘(l) NOTIFICATION TO MEMBERS OF CONGRESS OF

2 MAP MODERNIZATION.—Upon any revision or update of 

3 any floodplain area or flood-risk zone pursuant to sub4 section (f), any decision pursuant to subsection (f)(1) that 

5 such revision or update is necessary, any issuance of pre6 liminary maps for such revision or updating, or any other 

7 significant action relating to any such revision or update, 

8 the Administrator shall notify the Senators for each State 

9 affected, and each Member of the House of Representatives 

10 for each congressional district affected, by such revision or 

11 update in writing of the action taken.’’. 

12 SEC. 16. NOTIFICATION TO TENANTS OF AVAILABILITY OF 

13 CONTENTS INSURANCE. 

14 The National Flood Insurance Act of 1968 is amended 

15 by inserting after section 1308 (42 U.S.C. 4015) the fol16 lowing new section: 

17 ‘‘SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY 

18 OF CONTENTS INSURANCE. 

19 ‘‘(a) IN GENERAL.—The Administrator shall, upon en20 tering into a contract for flood insurance coverage under 

21 this title for any property— 

22 ‘‘(1) provide to the insured sufficient copies of 

23 the notice developed pursuant to subsection (b); and 

24 ‘‘(2) require the insured to provide a copy of the 

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1 mation under subsection (b) in the manner that the 

2 manager or landlord deems most appropriate, to each 

3 such tenant and to each new tenant upon commence4 ment of such a tenancy. 

5 ‘‘(b) NOTICE.—Notice to a tenant of a property in ac6 cordance with this subsection is written notice that clearly 

7 informs a tenant— 

8 ‘‘(1) whether the property is located in an area 

9 having special flood hazards; 

10 ‘‘(2) that flood insurance coverage is available 

11 under the national flood insurance program under 

12 this title for contents of the unit or structure leased 

13 by the tenant; 

14 ‘‘(3) of the maximum amount of such coverage 

15 for contents available under this title at that time; 

16 and 

17 ‘‘(4) of where to obtain information regarding 

18 how to obtain such coverage, including a telephone 

19 number, mailing address, and Internet site of the Ad20 ministrator where such information is available.’’. 

21 SEC. 17. NOTIFICATION TO POLICY HOLDERS REGARDING 

22 DIRECT MANAGEMENT OF POLICY BY FEMA. 

23 Part C of chapter II of the National Flood Insurance 

24 Act of 1968 (42 U.S.C. 4081 et seq.) is amended by adding 

25 at the end the following new section: 


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1 ‘‘SEC. 1349. NOTIFICATION TO POLICY HOLDERS REGARD2 ING DIRECT MANAGEMENT OF POLICY BY 

3 FEMA. 

4 ‘‘(a) NOTIFICATION.—Not later than 60 days before the 

5 date on which a transferred flood insurance policy expires, 

6 and annually thereafter until such time as the Federal 

7 Emergency Management Agency is no longer directly ad8 ministering such policy, the Administrator shall notify the 

9 holder of such policy that— 

10 ‘‘(1) the Federal Emergency Management Agency 

11 is directly administering the policy; 

12 ‘‘(2) such holder may purchase flood insurance 

13 that is directly administered by an insurance com14 pany; and 

15 ‘‘(3) purchasing flood insurance offered under the 

16 National Flood Insurance Program that is directly 

17 administered by an insurance company will not alter 

18 the coverage provided or the premiums charged to 

19 such holder that otherwise would be provided or 

20 charged if the policy was directly administered by the 

21 Federal Emergency Management Agency. 

22 ‘‘(b) DEFINITION.—In this section, the term ‘trans23 ferred flood insurance policy’ means a flood insurance pol24 icy that— 


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1 ‘‘(1) was directly administered by an insurance 

2 company at the time the policy was originally pur3 chased by the policy holder; and 

4 ‘‘(2) at the time of renewal of the policy, direct 

5 administration of the policy was or will be trans6 ferred to the Federal Emergency Management Agen7 cy.’’. 

8 SEC. 18. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 

9 AND ESCROW IN RESPA GOOD FAITH ESTI10 MATE. 

11 Subsection (c) of section 5 of the Real Estate Settle12 ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is amend13 ed by adding at the end the following new sentence: ‘‘Each 

14 such good faith estimate shall include the following con15 spicuous statements and information: (1) that flood insur16 ance coverage for residential real estate is generally avail17 able under the national flood insurance program whether 

18 or not the real estate is located in an area having special 

19 flood hazards and that, to obtain such coverage, a home 

20 owner or purchaser should contact the national flood insur21 ance program; (2) a telephone number and a location on 

22 the Internet by which a home owner or purchaser can con23 tact the national flood insurance program; and (3) that the 

24 escrowing of flood insurance payments is required for many 

25 loans under section 102(d) of the Flood Disaster Protection 


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1 Act of 1973, and may be a convenient and available option 

2 with respect to other loans.’’. 

3 SEC. 19. REIMBURSEMENT FOR COSTS INCURRED BY HOME4 OWNERS OBTAINING LETTERS OF MAP 

5 AMENDMENT. 

6 (a) IN GENERAL.—Section 1360 of the National Flood 

7 Insurance Act of 1968 (42 U.S.C. 4101), as amended by 

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

9 adding at the end the following new subsection: 

10 ‘‘(m) REIMBURSEMENT.— 

11 ‘‘(1) REQUIREMENT UPON BONA FIDE OFFER.— 

12 If an owner of any property located in an area de13 scribed in section 102(i)(3) of the Flood Disaster Pro14 tection Act of 1973 obtains a letter of map amend15 ment due to a bona fide error on the part of the Ad16 ministrator of the Federal Emergency Management 

17 Agency, the Administrator shall reimburse such 

18 owner, or such entity or jurisdiction acting on such 

19 owner’s behalf, for any reasonable costs incurred in 

20 obtaining such letter. 

21 ‘‘(2) REASONABLE COSTS.—The Administrator 

22 shall, by regulation or notice, determine a reasonable 

23 amount of costs to be reimbursed under paragraph 

24 (1), except that such costs shall not include legal or 

25 attorneys fees. In determining the reasonableness of 


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1 costs, the Administrator shall only consider the actual 

2 costs to the owner of utilizing the services of an engi3 neer, surveyor, or similar services.’’. 

4 (b) REGULATIONS.—Not later than 90 days after the 

5 date of the enactment of this Act, the Administrator of the 

6 Federal Emergency Management Agency shall issue the reg7 ulations or notice required under section 1360(m)(2) of the 

8 National Flood Insurance Act of 1968, as added by the 

9 amendment made by subsection (a) of this section. 

10 SEC. 20. TREATMENT OF SWIMMING POOL ENCLOSURES 

11 OUTSIDE OF HURRICANE SEASON. 

12 Chapter I of the National Flood Insurance Act of 1968 

13 (42 U.S.C. 4001 et seq.) is amended by adding at the end 

14 the following new section: 

15 ‘‘SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES 

16 OUTSIDE OF HURRICANE SEASON. 

17 ‘‘In the case of any property that is otherwise in com18 pliance with the coverage and building requirements of the 

19 national flood insurance program, the presence of an en20 closed swimming pool located at ground level or in the space 

21 below the lowest floor of a building after November 30 and 

22 before June 1 of any year shall have no effect on the terms 

23 of coverage or the ability to receive coverage for such build24 ing under the national flood insurance program established 


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1 pursuant to this title, if the pool is enclosed with non-sup2 porting breakaway walls.’’. 

3 SEC. 21. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUT4 REACH ACTIVITIES AND COMMUNITY BUILD5 ING CODE ADMINISTRATION GRANTS. 

6 Section 105(a) of the Housing and Community Devel7 opment Act of 1974 (42 U.S.C. 5305(a)) is amended— 

8 (1) in paragraph (24), by striking ‘‘and’’ at the 

9 end; 

10 (2) in paragraph (25), by striking the period at 

11 the end and inserting a semicolon; and 

12 (3) by adding at the end the following new para13 graphs: 

14 ‘‘(26) supplementing existing State or local fund15 ing for administration of building code enforcement 

16 by local building code enforcement departments, in17 cluding for increasing staffing, providing staff train18 ing, increasing staff competence and professional 

19 qualifications, and supporting individual certifi20 cation or departmental accreditation, and for capital 

21 expenditures specifically dedicated to the administra22 tion of the building code enforcement department, ex23 cept that, to be eligible to use amounts as provided in 

24 this paragraph— 


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1 ‘‘(A) a building code enforcement depart2 ment shall provide matching, non-Federal funds 

3 to be used in conjunction with amounts used 

4 under this paragraph in an amount— 

5 ‘‘(i) in the case of a building code en6 forcement department serving an area with 

7 a population of more than 50,000, equal to 

8 not less than 50 percent of the total amount 

9 of any funds made available under this title 

10 that are used under this paragraph; 

11 ‘‘(ii) in the case of a building code en12 forcement department serving an area with 

13 a population of between 20,001 and 50,000, 

14 equal to not less than 25 percent of the total 

15 amount of any funds made available under 

16 this title that are used under this para17 graph; and 

18 ‘‘(iii) in the case of a building code en19 forcement department serving an area with 

20 a population of less than 20,000, equal to 

21 not less than 12.5 percent of the total 

22 amount of any funds made available under 

23 this title that are used under this para24 graph; 


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1 except that the Secretary may waive the match2 ing fund requirements under this subparagraph, 

3 in whole or in part, based upon the level of eco4 nomic distress of the jurisdiction in which is lo5 cated the local building code enforcement depart6 ment that is using amounts for purposes under 

7 this paragraph, and shall waive such matching 

8 fund requirements in whole for any recipient ju9 risdiction that has dedicated all building code 

10 permitting fees to the conduct of local building 

11 code enforcement; and 

12 ‘‘(B) any building code enforcement depart13 ment using funds made available under this title 

14 for purposes under this paragraph shall empanel 

15 a code administration and enforcement team 

16 consisting of at least 1 full-time building code 

17 enforcement officer, a city planner, and a health 

18 planner or similar officer; and 

19 ‘‘(27) provision of assistance to local govern20 mental agencies responsible for floodplain manage21 ment activities (including such agencies of Indians 

22 tribes, as such term is defined in section 4 of the Na23 tive American Housing Assistance and Self-Deter24 mination Act of 1996 (25 U.S.C. 4103)) in commu25 nities that participate in the national flood insurance 


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1 program under the National Flood Insurance Act of 

2 1968 (42 U.S.C. 4001 et seq.), only for carrying out 

3 outreach activities to encourage and facilitate the 

4 purchase of flood insurance protection under such Act 

5 by owners and renters of properties in such commu6 nities and to promote educational activities that in7 crease awareness of flood risk reduction; except that— 

8 ‘‘(A) amounts used as provided under this 

9 paragraph shall be used only for activities de10 signed to— 

11 ‘‘(i) identify owners and renters of 

12 properties in communities that participate 

13 in the national flood insurance program, 

14 including owners of residential and com15 mercial properties; 

16 ‘‘(ii) notify such owners and renters 

17 when their properties become included in, or 

18 when they are excluded from, an area hav19 ing special flood hazards and the effect of 

20 such inclusion or exclusion on the applica21 bility of the mandatory flood insurance 

22 purchase requirement under section 102 of 

23 the Flood Disaster Protection Act of 1973 

24 (42 U.S.C. 4012a) to such properties; 


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1 ‘‘(iii) educate such owners and renters 

2 regarding the flood risk and reduction of 

3 this risk in their community, including the 

4 continued flood risks to areas that are no 

5 longer subject to the flood insurance manda6 tory purchase requirement; 

7 ‘‘(iv) educate such owners and renters 

8 regarding the benefits and costs of main9 taining or acquiring flood insurance, in10 cluding, where applicable, lower-cost pre11 ferred risk policies under this title for such 

12 properties and the contents of such prop13 erties; 

14 ‘‘(v) encourage such owners and renters 

15 to maintain or acquire such coverage; 

16 ‘‘(vi) notify such owners of where to 

17 obtain information regarding how to obtain 

18 such coverage, including a telephone num19 ber, mailing address, and Internet site of 

20 the Administrator of the Federal Emergency 

21 Management Agency (in this paragraph re22 ferred to as the ‘Administrator’) where such 

23 information is available; and 

24 ‘‘(vii) educate local real estate agents 

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1 tional flood insurance program regarding 

2 the program and the availability of cov3 erage under the program for owners and 

4 renters of properties in such communities, 

5 and establish coordination and liaisons 

6 with such real estate agents to facilitate 

7 purchase of coverage under the National 

8 Flood Insurance Act of 1968 and increase 

9 awareness of flood risk reduction; 

10 ‘‘(B) in any fiscal year, a local govern11 mental agency may not use an amount under 

12 this paragraph that exceeds 3 times the amount 

13 that the agency certifies, as the Secretary, in 

14 consultation with the Administrator, shall re15 quire, that the agency will contribute from non16 Federal funds to be used with such amounts used 

17 under this paragraph only for carrying out ac18 tivities described in subparagraph (A); and for 

19 purposes of this subparagraph, the term ‘non20 Federal funds’ includes State or local govern21 ment agency amounts, in-kind contributions, 

22 any salary paid to staff to carry out the eligible 

23 activities of the local governmental agency in24 volved, the value of the time and services contrib25 uted by volunteers to carry out such services (at 


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1 a rate determined by the Secretary), and the 

2 value of any donated material or building and 

3 the value of any lease on a building; 

4 ‘‘(C) a local governmental agency that uses 

5 amounts as provided under this paragraph may 

6 coordinate or contract with other agencies and 

7 entities having particular capacities, specialties, 

8 or experience with respect to certain populations 

9 or constituencies, including elderly or disabled 

10 families or persons, to carry out activities de11 scribed in subparagraph (A) with respect to such 

12 populations or constituencies; and 

13 ‘‘(D) each local government agency that uses 

14 amounts as provided under this paragraph shall 

15 submit a report to the Secretary and the Admin16 istrator, not later than 12 months after such 

17 amounts are first received, which shall include 

18 such information as the Secretary and the Ad19 ministrator jointly consider appropriate to de20 scribe the activities conducted using such 

21 amounts and the effect of such activities on the 

22 retention or acquisition of flood insurance cov23 erage.’’. 


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1 SEC. 22. TECHNICAL CORRECTIONS. 

2 (a) FLOOD DISASTER PROTECTION ACT OF 1973.— 

3 The Flood Disaster Protection Act of 1973 (42 U.S.C. 4002 

4 et seq.) is amended— 

5 (1) by striking ‘‘Director’’ each place such term 

6 appears, except in section 102(f)(3) (42 U.S.C. 

7 4012a(f)(3)), and inserting ‘‘Administrator’’; and 

8 (2) in section 201(b) (42 U.S.C. 4105(b)), by 

9 striking ‘‘Director’s’’ and inserting ‘‘Administra10 tor’s’’. 

11 (b) NATIONAL FLOOD INSURANCE ACT OF 1968.—The 

12 National Flood Insurance Act of 1968 (42 U.S.C. 4001 et 

13 seq.) is amended— 

14 (1) by striking ‘‘Director’’ each place such term 

15 appears and inserting ‘‘Administrator’’; and 

16 (2) in sections 1363 (42 U.S.C. 4104), by strik17 ing ‘‘Director’s’’ each place such term appears and 

18 inserting ‘‘Administrator’s’’. 

19 (c) FEDERAL FLOOD INSURANCE ACT OF 1956.—Sec20 tion 15(e) of the Federal Flood Insurance Act of 1956 (42 

21 U.S.C. 2414(e)) is amended by striking ‘‘Director’’ each 

22 place such term appears and inserting ‘‘Administrator’’. 

23 SEC. 23. REPORT ON WRITE-YOUR-OWN PROGRAM. 

24 Not later than one year after the date of the enactment 

25 of this Act, the Administrator of the Federal Emergency 

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1 scribing procedures and policies that the Administrator can 

2 implement to limit the percentage of flood insurance polices 

3 directly managed by the Agency to not more than 10 per4 cent, if possible, of all flood insurance policies issued in ac5 cordance with the National Flood Insurance Program. 

6 SEC. 24. STUDIES OF VOLUNTARY COMMUNITY-BASED 

7 FLOOD INSURANCE OPTIONS. 

8 (a) STUDIES.—The Administrator of the Federal 

9 Emergency Management Agency and the Comptroller Gen10 eral of the United States shall each conduct a separate study 

11 to assess options, methods, and strategies for offering vol12 untary community-based flood insurance policy options 

13 and incorporating such options into the national flood in14 surance program. Such studies shall take into consideration 

15 and analyze how the policy options would affect commu16 nities having varying economic bases, geographic locations, 

17 flood hazard characteristics or classifications, and flood 

18 management approaches. 

19 (b) REPORTS.—Not later than the expiration of the 18- 

20 month period beginning on the date of the enactment of this 

21 Act, the Administrator of the Federal Emergency Manage22 ment Agency and the Comptroller General of the United 

23 States shall each submit a report to the Committee on Fi24 nancial Services of the House of Representatives and the 

25 Committee on Banking, Housing, and Urban Affairs of the 


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1 Senate on the results and conclusions of the study such 

2 agency conducted under subsection (a), and each such re3 port shall include recommendations for the best manner to 

4 incorporate voluntary community-based flood insurance op5 tions into the national flood insurance program and for a 

6 strategy to implement such options that would encourage 

7 communities to undertake flood mitigation activities. 

8 SEC. 25. REPORT ON INCLUSION OF BUILDING CODES IN 

9 FLOODPLAIN MANAGEMENT CRITERIA. 

10 Not later than the expiration of the 6-month period 

11 beginning on the date of the enactment of this Act, the Ad12 ministrator of the Federal Emergency Management Agency 

13 shall conduct a study and submit a report to the Committee 

14 on Financial Services of the House of Representatives and 

15 the Committee on Banking, Housing, and Urban Affairs 

16 of the Senate regarding the impact, effectiveness, and feasi17 bility of amending section 1361 of the National Flood In18 surance Act of 1968 (42 U.S.C. 4102) to include widely used 

19 and nationally recognized building codes as part of the 

20 floodplain management criteria developed under such sec21 tion, and shall determine— 

22 (1) the regulatory, financial, and economic im23 pacts of such a building code requirement on home24 owners, States and local communities, local land use 


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1 policies, and the Federal Emergency Management 

2 Agency; 

3 (2) the resources required of State and local com4 munities to administer and enforce such a building 

5 code requirement; 

6 (3) the effectiveness of such a building code re7 quirement in reducing flood-related damage to build8 ings and contents; 

9 (4) the impact of such a building code require10 ment on the actuarial soundness of the National 

11 Flood Insurance Program; 

12 (5) the effectiveness of nationally recognized 

13 codes in allowing innovative materials and systems 

14 for flood-resistant construction; 

15 (6) the feasibility and effectiveness of providing 

16 an incentive in lower premium rates for flood insur17 ance coverage under such Act for structures meeting 

18 whichever of such widely used and nationally recog19 nized building code or any applicable local building 

20 code provides greater protection from flood damage; 

21 (7) the impact of such a building code require22 ment on rural communities with different building 

23 code challenges than more urban environments; and 

24 (8) the impact of such a building code require25 ment on Indian reservations. 


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1 SEC. 26. STUDY ON GRADUATED RISK. 

2 (a) STUDY.—The National Academy of Sciences shall 

3 conduct a study exploring methods for understanding grad4 uated risk behind levees and the associated land develop5 ment, insurance, and risk communication dimensions, 

6 which shall— 

7 (1) research, review, and recommend current best 

8 practices for estimating direct annualized flood losses 

9 behind levees for residential and commercial struc10 tures; 

11 (2) rank such practices based on their best value, 

12 balancing cost, scientific integrity, and the inherent 

13 uncertainties associated with all aspects of the loss es14 timate, including geotechnical engineering, flood fre15 quency estimates, economic value, and direct dam16 ages; 

17 (3) research, review, and identify current best 

18 floodplain management and land use practices behind 

19 levees that effectively balance social, economic, and 

20 environmental considerations as part of an overall 

21 flood risk management strategy; 

22 (4) identify examples where such practices have 

23 proven effective and recommend methods and proc24 esses by which they could be applied more broadly 

25 across the United States, given the variety of different 


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1 flood risks, State and local legal frameworks, and 

2 evolving judicial opinions; 

3 (5) research, review, and identify a variety of 

4 flood insurance pricing options for flood hazards be5 hind levees which are actuarially sound and based on 

6 the flood risk data developed using the top three best 

7 value approaches identified pursuant to paragraph 

8 (1); 

9 (6) evaluate and recommend methods to reduce 

10 insurance costs through creative arrangements be11 tween insureds and insurers while keeping a clear ac12 counting of how much financial risk is being borne by 

13 various parties such that the entire risk is accounted 

14 for, including establishment of explicit limits on dis15 aster aid or other assistance in the event of a flood; 

16 and 

17 (7) taking into consideration the recommenda18 tions pursuant to paragraphs (1) through (3), rec19 ommend approaches to communicating the associated 

20 risks to community officials, homeowners, and other 

21 residents. 

22 (b) REPORT.—Not later than the expiration of the 12- 

23 month period beginning on the date of the enactment of this 

24 Act, the National Academy of Sciences shall submit a report 

25 to the Committees on Financial Services and Science, 


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1 Space, and Technology of the House of Representatives and 

2 the Committees on Banking, Housing, and Urban Affairs 

3 and Commerce, Science and Transportation of the Senate 

4 on the study under subsection (a) including the information 

5 and recommendations required under such subsection. 

6 SEC. 27. NO CAUSE OF ACTION. 

7 No cause of action shall exist and no claim may be 

8 brought against the United States for violation of any noti9 fication requirement imposed upon the United States by 

10 this Act or any amendment made by this Act. 


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Union Calendar No. 57 

112TH CONGRESS 

1ST SESSION H. R. 1309 

[Report No. 112–102] 

A BILL 

To extend the authorization of the national flood 

for other purposes. in the management of flood insurance risk, and gram, and to increase the role of private markets the financial integrity and stability of the proinsurance program, to achieve reforms to improve 

JUNE 9, 2011 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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