IB 

Union Calendar No. 404 

114TH CONGRESS 

2D SESSION H. R. 2901 

[Report No. 114–524] 

To amend the Flood Disaster Protection Act of 1973 to require that certain 

buildings and personal property be covered by flood insurance, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 25, 2015 

Mr. ROSS (for himself and Mr. MURPHY of Florida) introduced the following 

bill; which was referred to the Committee on Financial Services 

APRIL 26, 2016 

Additional sponsors: Mr. JOLLY, Mr. EMMER of Minnesota, Mr. POSEY, Mr. 

NEUGEBAUER, Mr. PITTENGER, Mr. MULVANEY, Mr. HILL, Mrs. WAGNER, Mr. HUIZENGA of Michigan, Mr. BARR, Mr. KING of New York, Mr. 

LUCAS, Mr. MARINO, Mr. ZINKE, Mr. FORTENBERRY, Mr. MACARTHUR, 

Mr. PALAZZO, Mr. WILLIAMS, Mr. SCALISE, Mr. SMITH of Texas, Mr. 

COFFMAN, Mr. ROYCE, Mr. MESSER, Mr. SHERMAN, Mr. BILIRAKIS, Mr. 

HULTGREN, Mr. ROTHFUS, Mr. ASHFORD, Mr. JOHNSON of Ohio, Mr. 

PERLMUTTER, Mr. RICE of South Carolina, Mr. ROKITA, Mr. 

MOOLENAAR, Ms. MOORE, Mr. HECK of Washington, Mr. VARGAS, Mrs. 

CAROLYN B. MALONEY of New York, Mrs. BUSTOS, Ms. CASTOR of Florida, Mr. BRENDAN F. BOYLE of Pennsylvania, Mr. CAPUANO, Mr. KILDEE, and Mr. BOUSTANY

APRIL 26, 2016 

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 June 25, 2015] 


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A BILL 

To amend the Flood Disaster Protection Act of 1973 to 

require that certain buildings and personal property be 

covered by flood insurance, 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. 

4 This Act may be cited as the ‘‘Flood Insurance Market 

5 Parity and Modernization Act’’. 

6 SEC. 2. PRIVATE FLOOD INSURANCE. 

7 (a) MANDATORY PURCHASE REQUIREMENT.— 

8 (1) AMOUNT AND TERM OF COVERAGE.—Section 

9 102 of the Flood Disaster Protection Act of 1973 (42 

10 U.S.C. 4012a) is amended by striking ‘‘Sec. 102. (a)’’ 

11 and all that follows through the end of subsection (a) 

12 and inserting the following: 

13 ‘‘SEC. 102. (a) AMOUNT AND TERM OF COVERAGE.— 

14 After the expiration of sixty days following the date of en15 actment of this Act, no Federal officer or agency shall ap16 prove any financial assistance for acquisition or construc17 tion purposes for use in any area that has been identified 

18 by the Administrator as an area having special flood haz19 ards and in which the sale of flood insurance has been made 

20 available under the National Flood Insurance Act of 1968, 

21 unless the building or mobile home and any personal prop22 erty to which such financial assistance relates is covered 

23 by flood insurance: Provided, That the amount of flood in24 surance (1) in the case of Federal flood insurance, is at 

25 least equal to the development or project cost of the building, 


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1 mobile home, or personal property (less estimated land 

2 cost), the outstanding principal balance of the loan, or the 

3 maximum limit of Federal flood insurance coverage made 

4 available with respect to the particular type of property, 

5 whichever is less; or (2) in the case of private flood insur6 ance, is at least equal to the development or project cost 

7 of the building, mobile home, or personal property (less esti8 mated land cost), the outstanding principal balance of the 

9 loan, or the maximum limit of Federal flood insurance cov10 erage made available with respect to the particular type of 

11 property, whichever is less: Provided further, That if the 

12 financial assistance provided is in the form of a loan or 

13 an insurance or guaranty of a loan, the amount of flood 

14 insurance required need not exceed the outstanding prin15 cipal balance of the loan and need not be required beyond 

16 the term of the loan. The requirement of maintaining flood 

17 insurance shall apply during the life of the property, re18 gardless of transfer of ownership of such property.’’. 

19 (2) REQUIREMENT FOR MORTGAGE LOANS.— 

20 Subsection (b) of section 102 of the Flood Disaster 

21 Protection Act of 1973 (42 U.S.C. 4012a(b)) is 

22 amended— 

23 (A) by striking the subsection designation 

24 and all that follows through the end of para25 graph (5) and inserting the following: 


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1 ‘‘(b) REQUIREMENT FOR MORTGAGE LOANS.— 

2 ‘‘(1) REGULATED LENDING INSTITUTIONS.—Each 

3 Federal entity for lending regulation (after consulta4 tion and coordination with the Financial Institutions 

5 Examination Council established under the Federal 

6 Financial Institutions Examination Council Act of 

7 1974) shall by regulation direct regulated lending in8 stitutions not to make, increase, extend, or renew any 

9 loan secured by improved real estate or a mobile home 

10 located or to be located in an area that has been iden11 tified by the Administrator as an area having special 

12 flood hazards and in which flood insurance has been 

13 made available under the National Flood Insurance 

14 Act of 1968, unless the building or mobile home and 

15 any personal property securing such loan is covered 

16 for the term of the loan by flood insurance: Provided, 

17 That the amount of flood insurance (A) in the case 

18 of Federal flood insurance, is at least equal to the out19 standing principal balance of the loan or the max20 imum limit of Federal flood insurance coverage made 

21 available with respect to the particular type of prop22 erty, whichever is less; or (B) in the case of private 

23 flood insurance, is at least equal to the outstanding 

24 principal balance of the loan or the maximum limit 

25 of Federal flood insurance coverage made available 


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1 with respect to the particular type of property, which2 ever is less. 

3 ‘‘(2) FEDERAL AGENCY LENDERS.— 

4 ‘‘(A) IN GENERAL.—A Federal agency lend5 er may not make, increase, extend, or renew any 

6 loan secured by improved real estate or a mobile 

7 home located or to be located in an area that has 

8 been identified by the Administrator as an area 

9 having special flood hazards and in which flood 

10 insurance has been made available under the Na11 tional Flood Insurance Act of 1968, unless the 

12 building or mobile home and any personal prop13 erty securing such loan is covered for the term of 

14 the loan by flood insurance in accordance with 

15 paragraph (1). Each Federal agency lender may 

16 issue any regulations necessary to carry out this 

17 paragraph. Such regulations shall be consistent 

18 with and substantially identical to the regula19 tions issued under paragraph (1). 

20 ‘‘(B) REQUIREMENT TO ACCEPT FLOOD IN21 SURANCE.—Each Federal agency lender shall ac22 cept flood insurance as satisfaction of the flood 

23 insurance coverage requirement under subpara24 graph (A) if the flood insurance coverage meets 


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1 the requirements for coverage under that sub2 paragraph. 

3 ‘‘(3) GOVERNMENT-SPONSORED ENTERPRISES

4 FOR HOUSING.—The Federal National Mortgage Asso5 ciation and the Federal Home Loan Mortgage Cor6 poration shall implement procedures reasonably de7 signed to ensure that, for any loan that is— 

8 ‘‘(A) secured by improved real estate or a 

9 mobile home located in an area that has been 

10 identified, at the time of the origination of the 

11 loan or at any time during the term of the loan, 

12 by the Administrator as an area having special 

13 flood hazards and in which flood insurance is 

14 available under the National Flood Insurance 

15 Act of 1968, and 

16 ‘‘(B) purchased or guaranteed by such enti17 ty, 

18 the building or mobile home and any personal prop19 erty securing the loan is covered for the term of the 

20 loan by flood insurance in the amount provided in 

21 paragraph (1). The Federal National Mortgage Asso22 ciation and the Federal Home Loan Mortgage Cor23 poration shall accept flood insurance as satisfaction 

24 of the flood insurance coverage requirement under 

25 paragraph (1) if the flood insurance coverage proVerDate Sep 11 2014 21:56 Apr 26, 2016 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H2901.RH H2901

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1 vided meets the requirements for coverage under that 

2 paragraph and any requirements established by the 

3 Federal National Mortgage Association or the Federal 

4 Home Loan Corporation, respectively, relating to the 

5 financial strength of private insurance companies 

6 from which the Federal National Mortgage Associa7 tion or the Federal Home Loan Mortgage Corporation 

8 will accept private flood insurance, provided that 

9 such requirements shall not affect or conflict with any 

10 State law, regulation, or procedure concerning the 

11 regulation of the business of insurance. 

12 ‘‘(4) APPLICABILITY.— 

13 ‘‘(A) EXISTING COVERAGE.—Except as pro14 vided in subparagraph (B), paragraph (1) shall 

15 apply on the date of enactment of the Riegle 

16 Community Development and Regulatory Im17 provement Act of 1994. 

18 ‘‘(B) NEW COVERAGE.—Paragraphs (2) and 

19 (3) shall apply only with respect to any loan 

20 made, increased, extended, or renewed after the 

21 expiration of the 1-year period beginning on the 

22 date of enactment of the Riegle Community De23 velopment and Regulatory Improvement Act of 

24 1994. Paragraph (1) shall apply with respect to 

25 any loan made, increased, extended, or renewed 


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1 by any lender supervised by the Farm Credit 

2 Administration only after the expiration of the 

3 period under this subparagraph. 

4 ‘‘(C) CONTINUED EFFECT OF REGULA5 TIONS.—Notwithstanding any other provision of 

6 this subsection, the regulations to carry out 

7 paragraph (1), as in effect immediately before 

8 the date of enactment of the Riegle Community 

9 Development and Regulatory Improvement Act 

10 of 1994, shall continue to apply until the regula11 tions issued to carry out paragraph (1) as 

12 amended by section 522(a) of such Act take ef13 fect. 

14 ‘‘(5) RULE OF CONSTRUCTION.—Except as other15 wise specified, any reference to flood insurance in this 

16 section shall be considered to include Federal flood in17 surance and private flood insurance. Nothing in this 

18 subsection shall be construed to supersede or limit the 

19 authority of a Federal entity for lending regulation, 

20 the Federal Housing Finance Agency, a Federal agen21 cy lender, the Federal National Mortgage Association, 

22 or the Federal Home Loan Mortgage Corporation to 

23 establish requirements relating to the financial 

24 strength of private insurance companies from which 

25 the entity or agency will accept private flood insurVerDate Sep 11 2014 21:56 Apr 26, 2016 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H2901.RH H2901

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1 ance, provided that such requirements shall not affect 

2 or conflict with any State law, regulation, or proce3 dure concerning the regulation of the business of in4 surance.’’; and 

5 (B) by striking paragraph (7) and inserting 

6 the following new paragraph: 

7 ‘‘(7) DEFINITIONS.—In this section: 

8 ‘‘(A) FLOOD INSURANCE.—The term ‘flood 

9 insurance’ means— 

10 ‘‘(i) Federal flood insurance; and 

11 ‘‘(ii) private flood insurance. 

12 ‘‘(B) FEDERAL FLOOD INSURANCE.—the 

13 term ‘Federal flood insurance’ means an insur14 ance policy made available under the National 

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

16 seq.). 

17 ‘‘(C) PRIVATE FLOOD INSURANCE.—The 

18 term ‘private flood insurance’ means an insur19 ance policy that— 

20 ‘‘(i) is issued by an insurance com21 pany that is— 

22 ‘‘(I) licensed, admitted, or other23 wise approved to engage in the busi24 ness of insurance in the State in which 


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1 the insured building is located, by the 

2 insurance regulator of that State; or 

3 ‘‘(II) eligible as a nonadmitted 

4 insurer to provide insurance in the 

5 home State of the insured, in accord6 ance with sections 521 through 527 of 

7 the Dodd-Frank Wall Street Reform 

8 and Consumer Protection Act (15 

9 U.S.C. 8201 through 8206); 

10 ‘‘(ii) is issued by an insurance com11 pany that is not otherwise disapproved as a 

12 surplus lines insurer by the insurance regu13 lator of the State in which the property to 

14 be insured is located; and 

15 ‘‘(iii) provides flood insurance coverage 

16 that complies with the laws and regulations 

17 of that State. 

18 ‘‘(D) STATE.—The term ‘State’ means any 

19 State of the United States, the District of Colum20 bia, the Commonwealth of Puerto Rico, Guam, 

21 the Northern Mariana Islands, the Virgin Is22 lands, and American Samoa.’’. 

23 (b) EFFECT OF PRIVATE FLOOD INSURANCE COV24 ERAGE ON CONTINUOUS COVERAGE REQUIREMENTS.—SecVerDate Sep 11 2014 21:56 Apr 26, 2016 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\H2901.RH H2901

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1 tion 1308 of the National Flood Insurance Act of 1968 (42 

2 U.S.C. 4015) is amended by adding at the end the following: 

3 ‘‘(n) EFFECT OF PRIVATE FLOOD INSURANCE COV4 ERAGE ON CONTINUOUS COVERAGE REQUIREMENTS.—For 

5 purposes of applying any statutory, regulatory, or adminis6 trative continuous coverage requirement, including under 

7 section 1307(g)(1), the Administrator shall consider any pe8 riod during which a property was continuously covered by 

9 private flood insurance (as defined in section 102(b)(7) of 

10 the Flood Disaster Protection Act of 1973 (42 U.S.C. 

11 4012a(b)(7))) to be a period of continuous coverage.’’. 


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srobinson on DSK5SPTVN1PROD with BILLS
Union Calendar No. 404 

114TH CONGRESS 

2D SESSION H. R. 2901 

[Report No. 114–524] 

A BILL 

To amend the Flood Disaster Protection Act of 

for other purposes. sonal property be covered by flood insurance, and 1973 to require that certain buildings and perAPRIL 26, 2016 

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


srobinson on DSK5SPTVN1PROD with BILLS