IB 

Union Calendar No. 155 

115TH CONGRESS 

1ST SESSION H. R. 1422 

[Report No. 115–220] 

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 

MARCH 8, 2017 

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

bill; which was referred to the Committee on Financial Services 

JULY 14, 2017 

Additional sponsors: Mr. HOLLINGSWORTH, Mr. MOONEY of West Virginia, 

Mr. POSEY, Mr. LOUDERMILK, Mr. PALAZZO, Mr. KIND, Mr. THOMAS J. 

ROONEY of Florida, Mr. HASTINGS, Mr. ROKITA, Mr. DIAZ-BALART, Mr. 

BILIRAKIS, Mr. BUDD, Mr. FITZPATRICK, Mr. COFFMAN, Mrs. DEMINGS, 

Mr. LUETKEMEYER, Mr. SMITH of Missouri, Mr. HIMES, Mr. WILLIAMS, 

and Mr. RENACCI

JULY 14, 2017 

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 March 8, 2017] 


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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 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Private Flood Insurance 

3 Market Development Act of 2017’’. 

4 SEC. 2. PRIVATE FLOOD INSURANCE. 

5 (a) MANDATORY PURCHASE REQUIREMENT.— 

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

7 102 of the Flood Disaster Protection Act of 1973 (42 

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

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

10 and inserting the following: 

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

12 After the expiration of sixty days following the date of the 

13 enactment of this Act, no Federal officer or agency shall 

14 approve any financial assistance for acquisition or con15 struction purposes for use in any area that has been identi16 fied by the Administrator as an area having special flood 

17 hazards and in which the sale of flood insurance has been 

18 made available under the National Flood Insurance Act of 

19 1968, unless the building or mobile home and any personal 

20 property to which such financial assistance relates is cov21 ered by flood insurance: Provided, That the amount of flood 

22 insurance (1) in the case of Federal flood insurance, is at 

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

24 mobile home, or personal property (less estimated land 

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

26 maximum limit of Federal flood insurance coverage made 


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1 available with respect to the particular type of property, 

2 whichever is less; or (2) in the case of private flood insur3 ance, is at least equal to the development or project cost 

4 of the building, mobile home, or personal property (less esti5 mated land cost), the outstanding principal balance of the 

6 loan, or the maximum limit of Federal flood insurance cov7 erage made available with respect to the particular type of 

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

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

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

11 insurance required need not exceed the outstanding prin12 cipal balance of the loan and need not be required beyond 

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

14 insurance shall apply during the life of the property, re15 gardless of transfer of ownership of such property.’’. 

16 (2) REQUIREMENT FOR MORTGAGE LOANS.— 

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

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

19 amended— 

20 (A) by striking paragraph (7); 

21 (B) by redesignating paragraph (6) as 

22 paragraph (7); 

23 (C) 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 AND MORTGAGE

4 INSURANCE AND GUARANTEE AGENCIES.— 

5 ‘‘(A) FEDERAL AGENCY LENDERS.—A Fed6 eral agency lender may not make, increase, ex7 tend, or renew any loan secured by improved 

8 real estate or a mobile home located or to be lo9 cated in an area that has been identified by the 

10 Administrator as an area having special flood 

11 hazards and in which flood insurance has been 

12 made available under the National Flood Insur13 ance Act of 1968, unless the building or mobile 

14 home and any personal property securing such 

15 loan is covered for the term of the loan by flood 

16 insurance in accordance with paragraph (1). 

17 Each Federal agency lender may issue any regu18 lations necessary to carry out this paragraph. 

19 Such regulations shall be consistent with and 

20 substantially identical to the regulations issued 

21 under paragraph (1). 

22 ‘‘(B) OTHER FEDERAL MORTGAGE ENTI23 TIES.— 

24 ‘‘(i) COVERAGE REQUIREMENTS.— 

25 Each covered Federal mortgage entity shall 


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1 implement procedures reasonably designed 

2 to ensure that, for any loan that— 

3 ‘‘(I) is secured by improved real 

4 estate or a mobile home located in an 

5 area that has been identified, at the 

6 time of the origination of the loan or 

7 at any time during the term of the 

8 loan, by the Administrator as an area 

9 having special flood hazards and in 

10 which flood insurance is available 

11 under the National Flood Insurance 

12 Act of 1968, and 

13 ‘‘(II) is made, insured, held, or 

14 guaranteed by such entity, or backs or 

15 on which is based any trust certificate 

16 or other security for which such entity 

17 guarantees the timely payment of prin18 cipal and interest, 

19 the building or mobile home and any per20 sonal property securing the loan is covered 

21 for the term of the loan by flood insurance 

22 in the amount provided in paragraph (1). 

23 ‘‘(ii) DEFINITION.—For purposes of 

24 this subparagraph, the term ‘covered Fed25 eral mortgage entity’ means— 


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1 ‘‘(I) the Secretary of Housing and 

2 Urban Development, with respect to 

3 mortgages insured under the National 

4 Housing Act; 

5 ‘‘(II) the Secretary of Agriculture, 

6 with respect to loans made, insured, or 

7 guaranteed under title V of the Hous8 ing Act of 1949; and 

9 ‘‘(III) the Government National 

10 Mortgage Association. 

11 ‘‘(C) REQUIREMENT TO ACCEPT FLOOD IN12 SURANCE.—Each Federal agency lender and 

13 each covered Federal mortgage entity shall accept 

14 flood insurance as satisfaction of the flood insur15 ance coverage requirement under subparagraph 

16 (A) or (B), respectively, if the flood insurance 

17 coverage meets the requirements for coverage 

18 under such subparagraph and the requirements 

19 relating to financial strength issued pursuant to 

20 paragraph (4). 

21 ‘‘(3) GOVERNMENT-SPONSORED ENTERPRISES

22 FOR HOUSING.—The Federal National Mortgage Asso23 ciation and the Federal Home Loan Mortgage Cor24 poration shall implement procedures reasonably de25 signed to ensure that, for any loan that is— 


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

2 mobile home located in an area that has been 

3 identified, at the time of the origination of the 

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

5 by the Administrator as an area having special 

6 flood hazards and in which flood insurance is 

7 available under the National Flood Insurance 

8 Act of 1968, and 

9 ‘‘(B) purchased or guaranteed by such enti10 ty, 

11 the building or mobile home and any personal prop12 erty securing the loan is covered for the term of the 

13 loan by flood insurance in the amount provided in 

14 paragraph (1). The Federal National Mortgage Asso15 ciation and the Federal Home Loan Mortgage Cor16 poration shall accept flood insurance as satisfaction 

17 of the flood insurance coverage requirement under 

18 paragraph (1) if the flood insurance coverage pro19 vided meets the requirements for coverage under that 

20 paragraph and the requirements relating to financial 

21 strength issued pursuant to paragraph (4). 

22 ‘‘(4) REQUIREMENTS REGARDING FINANCIAL

23 STRENGTH.—The Director of the Federal Housing Fi24 nance Agency, in consultation with the Federal Na25 tional Mortgage Association, the Federal Home Loan 


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1 Mortgage Corporation, the Secretary of Housing and 

2 Urban Development, the Government National Mort3 gage Association, and the Secretary of Agriculture 

4 shall develop and implement requirements relating to 

5 the financial strength of private insurance companies 

6 from which such entities and agencies will accept pri7 vate flood insurance, provided that such requirements 

8 shall not affect or conflict with any State law, regula9 tion, or procedure concerning the regulation of the 

10 business of insurance. 

11 ‘‘(5) APPLICABILITY.— 

12 ‘‘(A) EXISTING COVERAGE.—Except as pro13 vided in subparagraph (B), paragraph (1) shall 

14 apply on the date of enactment of the Riegle 

15 Community Development and Regulatory Im16 provement Act of 1994. 

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

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

19 made, increased, extended, or renewed after the 

20 expiration of the 1-year period beginning on the 

21 date of enactment of the Riegle Community De22 velopment and Regulatory Improvement Act of 

23 1994. Paragraph (1) shall apply with respect to 

24 any loan made, increased, extended, or renewed 

25 by any lender supervised by the Farm Credit 


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1 Administration only after the expiration of the 

2 period under this subparagraph. 

3 ‘‘(C) CONTINUED EFFECT OF REGULA4 TIONS.—Notwithstanding any other provision of 

5 this subsection, the regulations to carry out 

6 paragraph (1), as in effect immediately before 

7 the date of enactment of the Riegle Community 

8 Development and Regulatory Improvement Act 

9 of 1994, shall continue to apply until the regula10 tions issued to carry out paragraph (1) as 

11 amended by section 522(a) of such Act take ef12 fect. 

13 ‘‘(6) RULE OF CONSTRUCTION.—Except as other14 wise specified, any reference to flood insurance in this 

15 section shall be considered to include Federal flood in16 surance and private flood insurance. Nothing in this 

17 subsection shall be construed to supersede or limit the 

18 authority of a Federal entity for lending regulation, 

19 the Federal Housing Finance Agency, a Federal agen20 cy lender, a covered Federal mortgage entity (as such 

21 term is defined in paragraph (2)(B)(ii)), the Federal 

22 National Mortgage Association, or the Federal Home 

23 Loan Mortgage Corporation to establish requirements 

24 relating to the financial strength of private insurance 

25 companies from which the entity or agency will acVerDate Sep 11 2014 22:13 Jul 14, 2017 Jkt 069200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\H1422.RH H1422

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1 cept private flood insurance, provided that such re2 quirements shall not affect or conflict with any State 

3 law, regulation, or procedure concerning the regula4 tion of the business of insurance.’’; and 

5 (D) by adding at the end the following new 

6 paragraphs: 

7 ‘‘(8) 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 22:13 Jul 14, 2017 Jkt 069200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6203 E:\BILLS\H1422.RH H1422

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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)(8) of 

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

11 4012a(b)(8))) to be a period of continuous coverage.’’. 


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asabaliauskas on DSKBBXCHB2PROD with BILLS
Union Calendar No. 155 

115TH CONGRESS 

1ST SESSION H. R. 1422 

[Report No. 115–220] 

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 perJULY 14, 2017 

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


asabaliauskas on DSKBBXCHB2PROD with BILLS