I 

112TH CONGRESS 

1ST SESSION H. R. 1026 

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

identify priorities essential to reform and ongoing stable functioning 

of the program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 10, 2011 

Ms. WATERS (for herself, Mr. FRANK of Massachusetts, Mr. GUTIERREZ, Mr. 

AL GREEN of Texas, Mr. COSTELLO, Ms. MATSUI, and Mr. CARDOZA) 

introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To extend the authorization for the national flood insurance 

program, to identify priorities essential to reform and 

ongoing stable functioning of the program, and for other 

purposes. 

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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

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

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

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

7 this Act is as follows: 


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Sec. 1. Short title and table of contents. 

Sec. 2. Findings and purposes. 

Sec. 3. Extension of national flood insurance program. 

Sec. 4. Maximum coverage limits. 

Sec. 5. Phase-in of actuarial rates for nonresidential properties, non-primary 

residences, severe repetitive loss properties, and properties substantially damaged or improved. 

Sec. 6. 5-year delay in effective date of mandatory purchase requirement for 

new flood hazard areas. 

Sec. 7. 5-year phase-in of flood insurance rates for newly mapped areas. 

Sec. 8. Increase in annual limitation on premium increases. 

Sec. 9. Consideration of construction, reconstruction, and improvement of flood 

protection systems in determination of flood insurance rates. 

Sec. 10. Discounted flood insurance rates for properties protected by a floodprotection system from less than a 100-year frequency flood. 

Sec. 11. Treatment of certain flood protection projects. 

Sec. 12. Prohibition of extension of subsidized rates to lapsed policies. 

Sec. 13. Notification to homeowners regarding mandatory purchase requirement applicability and rate phase-ins. 

Sec. 14. Community outreach plan for updating floodplain areas and flood-risk 

zones. 

Sec. 15. Notification of establishment of flood elevations. 

Sec. 16. Coverage for additional living expenses and business interruption. 

Sec. 17. Exception to waiting period for effective date of policies. 

Sec. 18. Minimum deductibles for claims. 

Sec. 19. Payment of premiums in installments for residential properties. 

Sec. 20. Termination of force-placed insurance. 

Sec. 21. Enforcement. 

Sec. 22. Notification to tenants of availability of contents insurance. 

Sec. 23. Grants for direct funding of mitigation activities for individual repetitive claims properties. 

Sec. 24. Flood insurance outreach. 

Sec. 25. Treatment of swimming pool enclosures outside of hurricane season. 

Sec. 26. Requirements relating to windstorm and flood. 

Sec. 27. Notice of availability of flood insurance and escrow in RESPA good 

faith estimate. 

Sec. 28. Authorization of additional FEMA staff. 

Sec. 29. Plan to verify maintenance of flood insurance on Mississippi and Louisiana properties receiving emergency supplemental funds. 

Sec. 30. Flood insurance advocate. 

Sec. 31. Treatment of previously mapped areas. 

Sec. 32. Remapping of areas with improved levees. 

Sec. 33. Appeals. 

Sec. 34. Eligibility of property demolition and rebuilding under flood mitigation 

assistance program. 

Sec. 35. Study regarding mandatory purchase requirement for non-federally related loans. 

Sec. 36. Study of methods to increase flood insurance program participation by 

low-income families and families in rural communities and on 

Indian reservations. 

Sec. 37. Report on inclusion of building codes in floodplain management criteria. 

Sec. 38. Study on repaying flood insurance debt. 

Sec. 39. Study regarding certain harbor areas. 

Sec. 40. Study regarding hazard modeling. 


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Sec. 41. Study regarding impact of rate increases on pre-FIRM properties. 

Sec. 42. Study of effects of Act. 

Sec. 43. Reimbursement for costs incurred by homeowners obtaining letters of 

map amendment. 

Sec. 44. Interim final rulemaking. 

Sec. 45. Study on private insurance market, community participation in the 

National Flood Insurance Program, and the regionalization of 

the National Flood Insurance Program. 

Sec. 46. Ethics compliance. 

1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) FINDINGS.—The Congress finds that— 

3 (1) since the enactment of National Flood In4 surance Act of 1968, the national flood insurance 

5 program has been the primary source of reliable, 

6 reasonably priced, flood insurance coverage for mil7 lions of American homes and businesses; 

8 (2) today over 5,500,000 homes and businesses 

9 in the United States rely on the national flood insur10 ance program to provide a degree of financial secu11 rity; 

12 (3) although participation in the national flood 

13 insurance program has, in the past, largely been lim14 ited to properties required to participate in the pro15 gram because of the program’s mandatory purchase 

16 requirement for properties in special flood hazard 

17 areas with loans from federally regulated lenders, re18 cent annual and extraordinary flooding has resulted 

19 in the program enjoying its highest voluntary par20 ticipation since the establishment of the mandatory 

21 flood insurance purchase requirement; 


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1 (4) several years of below-average flood claims 

2 losses and increased voluntary participation in the 

3 national flood insurance program have allowed the 

4 program to fully service the debt incurred following 

5 Hurricanes Katrina and Rita and allowed the pro6 gram to pay $598,000,000 of the principal of that 

7 outstanding debt; 

8 (5) though significant reforms are needed to 

9 further improve the financial outlook of the national 

10 flood insurance program, long-term and reliable au11 thorization of the program is an essential element to 

12 stabilizing the already fragile United States housing 

13 market; 

14 (6) increased flooding in areas outside des15 ignated special flood hazard areas prompted the Ex16 ecutive and the Congress in 2002 to begin calling for 

17 the national flood insurance program to develop and 

18 disseminate revised, updated flood insurance rate 

19 maps that reflect the real risk of flooding for prop20 erties not previously identified as being located with21 in a special flood hazard area; 

22 (7) dissemination of accurate, up-to-date, flood23 risk information remains a primary goal of the na24 tional flood insurance program and such information 


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1 should be disseminated as soon as such information 

2 is collected and available; 

3 (8) communities should be encouraged to make 

4 their residents aware of updated flood-risk data 

5 while communities are assessing and incorporating 

6 updated flood-risk data into long-term community 

7 planning; 

8 (9) the maximum coverage limits for flood in9 surance policies should be increased to reflect infla10 tion and the increased cost of housing; and 

11 (10) phasing out flood insurance premium sub12 sidies currently extended to vacation homes, second 

13 homes, and commercial properties would result in 

14 significant average annual savings to the national 

15 flood insurance program. 

16 (b) PURPOSES.—The purposes of this Act are— 

17 (1) to identify priorities essential to the reform 

18 and ongoing stable functioning of the national flood 

19 insurance program; 

20 (2) to increase incentives for homeowners and 

21 communities to participate in the national flood in22 surance program and to improve oversight to ensure 

23 better accountability of the national flood insurance 

24 program and the Federal Emergency Management 

25 Agency; and 


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1 (3) to increase awareness of homeowners of 

2 flood risks and improve the information regarding 

3 such risks provided to homeowners. 

4 SEC. 3. EXTENSION OF NATIONAL FLOOD INSURANCE PRO5 GRAM. 

6 (a) PROGRAM EXTENSION.—Section 1319 of the Na7 tional Flood Insurance Act of 1968 (42 U.S.C. 4026) is 

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

9 ‘‘September 30, 2016’’. 

10 (b) FINANCING.—Section 1309(a) of such Act (42 

11 U.S.C. 4016(a)) is amended by striking ‘‘September 30, 

12 2011’’ and inserting ‘‘September 30, 2016’’. 

13 (c) EXTENSION OF PILOT PROGRAM FOR MITIGA14 TION OF SEVERE REPETITIVE LOSS PROPERTIES.—Sec15 tion 1361A of the National Flood Insurance Act of 1968 

16 (42 U.S.C. 4102a) is amended— 

17 (1) in subsection (k)(1), by striking ‘‘2005, 

18 2006, 2007, 2008, and 2009’’ and inserting ‘‘2012, 

19 2013, 2014, 2015, and 2016’’; and 

20 (2) by striking subsection (l). 

21 SEC. 4. MAXIMUM COVERAGE LIMITS. 

22 Subsection (b) of section 1306 of the National Flood 

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

24 (1) in paragraph (2), by striking ‘‘$250,000’’ 

25 and inserting ‘‘$335,000’’; 


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1 (2) in paragraph (3), by striking ‘‘$100,000’’ 

2 and inserting ‘‘$135,000’’; and 

3 (3) in paragraph (4)— 

4 (A) by striking ‘‘$500,000’’ each place 

5 such term appears and inserting ‘‘$670,000’’; 

6 and 

7 (B) by inserting before ‘‘; and’’ the fol8 lowing: ‘‘; except that, in the case of any non9 residential property that is a structure con10 taining more than one dwelling unit that is 

11 made available for occupancy by rental (not12 withstanding the provisions applicable to the 

13 determination of the risk premium rate for such 

14 property), additional flood insurance in excess 

15 of such limits shall be made available to every 

16 insured upon renewal and every applicant for 

17 insurance so as to enable any such insured or 

18 applicant to receive coverage up to a total 

19 amount that is equal to the product of the total 

20 number of such rental dwelling units in such 

21 property and the maximum coverage limit per 

22 dwelling unit specified in paragraph (2); except 

23 that in the case of any such multi-unit, nonresi24 dential rental property that is a pre-FIRM 

25 structure (as such term is defined in section 


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1 578(b) of the National Flood Insurance Reform 

2 Act of 1994 (42 U.S.C. 4014 note)), the risk 

3 premium rate for the first $500,000 of coverage 

4 shall be determined in accordance with section 

5 1307(a)(2) and the risk premium rate for any 

6 coverage in excess of such amount shall be de7 termined in accordance with section 

8 1307(a)(1)’’. 

9 SEC. 5. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDEN10 TIAL PROPERTIES, NON-PRIMARY RESI11 DENCES, SEVERE REPETITIVE LOSS PROP12 ERTIES, AND PROPERTIES SUBSTANTIALLY 

13 DAMAGED OR IMPROVED. 

14 (a) IN GENERAL.—Section 1308(c) of the National 

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

16 amended— 

17 (1) by redesignating paragraph (2) as para18 graph (6); and 

19 (2) by inserting after paragraph (1) the fol20 lowing new paragraphs: 

21 ‘‘(2) NONRESIDENTIAL PROPERTIES.—Any non22 residential property, which term shall not include 

23 any multifamily rental property that consists of four 

24 or more dwelling units. 


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1 ‘‘(3) NON-PRIMARY RESIDENCES.—Any residen2 tial property that is not the primary residence of any 

3 individual, including the owner of the property or 

4 any other individual who resides in the property as 

5 a tenant. 

6 ‘‘(4) SEVERE REPETITIVE LOSS PROPERTIES.— 

7 Any severe repetitive loss property, as such term is 

8 defined in section 1361A(b), that is so designated as 

9 such as a result of losses occurring on or after the 

10 date of the enactment of the Flood Insurance Re11 form Priorities Act of 2011. 

12 ‘‘(5) PROPERTIES SUBSTANTIALLY DAMAGED

13 OR SUBSTANTIALLY IMPROVED.—Any property that, 

14 on or after the date of the enactment of the Flood 

15 Insurance Reform and Priorities Act of 2011, has 

16 experienced or sustained— 

17 ‘‘(A) substantial damage exceeding 50 per18 cent of the fair market value of such property; 

19 or 

20 ‘‘(B) substantial improvement exceeding 

21 30 percent of the fair market value of such 

22 property.’’. 

23 (b) TECHNICAL AMENDMENTS.—Section 1308 of the 

24 National Flood Insurance Act of 1968 (42 U.S.C. 4015) 

25 is amended— 


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1 (1) in subsection (c)— 

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

3 by striking ‘‘the limitations provided under 

4 paragraphs (1) and (2)’’ and inserting ‘‘sub5 section (e)’’; and 

6 (B) in paragraph (1), by striking ‘‘, ex7 cept’’ and all that follows through ‘‘subsection 

8 (e)’’; and 

9 (2) in subsection (e), by striking ‘‘paragraph 

10 (2) or (3)’’ and inserting ‘‘paragraph (6)’’. 

11 (c) EFFECTIVE DATE AND TRANSITION.— 

12 (1) EFFECTIVE DATE.—The amendments made 

13 by subsections (a) and (b) shall apply beginning 

14 upon the expiration of the 3-year period that begins 

15 on the date of the enactment of this Act, except as 

16 provided in paragraph (2) of this subsection. 

17 (2) TRANSITION FOR PROPERTIES COVERED BY

18 FLOOD INSURANCE UPON EFFECTIVE DATE.— 

19 (A) INCREASE OF RATES OVER TIME.—In 

20 the case of any property described in paragraph 

21 (2), (3), (4), or (5) of section 1308(c) of the 

22 National Flood Insurance Act of 1968, as 

23 amended by subsection (a) of this section, that, 

24 as of the effective date under paragraph (1) of 

25 this subsection, is covered under a policy for 


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1 flood insurance made available under the na2 tional flood insurance program for which the 

3 chargeable premium rates are less than the ap4 plicable estimated risk premium rate under sec5 tion 1307(a)(1) for the area in which the prop6 erty is located, the Director of the Federal 

7 Emergency Management Agency shall increase 

8 the chargeable premium rates for such property 

9 over time to such applicable estimated risk pre10 mium rate under section 1307(a)(1). 

11 (B) ANNUAL INCREASE.—Such increase 

12 shall be made by increasing the chargeable pre13 mium rates for the property (after application 

14 of any increase in the premium rates otherwise 

15 applicable to such property), once during the 

16 12-month period that begins upon the effective 

17 date under paragraph (1) of this subsection and 

18 once every 12 months thereafter until such in19 crease is accomplished, by 20 percent (or such 

20 lesser amount as may be necessary so that the 

21 chargeable rate does not exceed such applicable 

22 estimated risk premium rate or to comply with 

23 subparagraph (C)). 

24 (C) PROPERTIES SUBJECT TO PHASE-IN

25 AND ANNUAL INCREASES.—In the case of any 


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1 pre-FIRM property (as such term is defined in 

2 section 578(b) of the National Flood Insurance 

3 Reform Act of 1974), the aggregate increase, 

4 during any 12-month period, in the chargeable 

5 premium rate for the property that is attrib6 utable to this paragraph or to an increase de7 scribed in section 1308(e) of the National Flood 

8 Insurance Act of 1968 may not exceed 20 per9 cent. 

10 (D) FULL ACTUARIAL RATES.—The provi11 sions of paragraphs (2), (3), (4), and (5) of 

12 such section 1308(c) shall apply to such a prop13 erty upon the accomplishment of the increase 

14 under this paragraph and thereafter. 

15 SEC. 6. 5-YEAR DELAY IN EFFECTIVE DATE OF MANDATORY 

16 PURCHASE REQUIREMENT FOR NEW FLOOD 

17 HAZARD AREAS. 

18 (a) IN GENERAL.—Section 102 of the Flood Disaster 

19 Protection Act of 1973 (42 U.S.C. 4012a) is amended by 

20 adding at the end the following new subsections: 

21 ‘‘(i) DELAYED EFFECTIVE DATE OF MANDATORY

22 PURCHASE REQUIREMENT FOR NEW FLOOD HAZARD

23 AREAS.— 

24 ‘‘(1) IN GENERAL.—In the case of any area 

25 that was not previously designated as an area having 


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1 special flood hazards and that, pursuant to any 

2 issuance, revision, updating, or other change in flood 

3 insurance maps that takes effect on or after Sep4 tember 30, 2007, becomes designated as an area 

5 having special flood hazards, if each State and local 

6 government having jurisdiction over any portion of 

7 the geographic area has complied with paragraph 

8 (2), such designation shall not take effect for pur9 poses of subsection (a), (b), or (e) of this section, or 

10 section 202(a) of this Act, until the expiration of the 

11 5-year period beginning upon the date that such 

12 maps, as issued, revised, update, or otherwise 

13 changed, become effective. 

14 ‘‘(2) NOTICE REQUIREMENTS.—A State or local 

15 government shall be considered to have complied 

16 with this paragraph with respect to any geographic 

17 area described in paragraph (1) only if the State or 

18 local government has, before the effective date of the 

19 issued, revised, updated, or changed maps, and in 

20 accordance with such standards as shall be estab21 lished by the Director— 

22 ‘‘(A) developed an evacuation plan to be 

23 implemented in the event of flooding in such 

24 portion of the geographic area; and 


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1 ‘‘(B) developed and implemented an out2 reach and communication plan to advise occu3 pants in such portion of the geographic area of 

4 potential flood risks, appropriate evacuation 

5 routes under the evacuation plan referred to in 

6 subparagraph (A), the opportunity to purchase 

7 flood insurance, and the consequences of failure 

8 to purchase flood insurance. 

9 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

10 paragraph (1) may be construed to affect the appli11 cability of a designation of any area as an area hav12 ing special flood hazards for purposes of the avail13 ability of flood insurance coverage, criteria for land 

14 management and use, notification of flood hazards, 

15 eligibility for mitigation assistance, or any other pur16 pose or provision not specifically referred to in para17 graph (1). 

18 ‘‘(j) AVAILABILITY OF PREFERRED RISK RATING

19 METHOD PREMIUMS.—The preferred risk rate method 

20 premium shall be available for flood insurance coverage 

21 for properties located in areas referred to in subsection 

22 (i)(1) and during the time period referred to in subsection 

23 (i)(1).’’. 

24 (b) CONFORMING AMENDMENT.—The second sen25 tence of subsection (h) of section 1360 of the National 


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1 Flood Insurance Act of 1968 (42 U.S.C. 4101(h)) is 

2 amended by striking ‘‘Such’’ and inserting ‘‘Except for no3 tice regarding a change described in section 102(i)(1) of 

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

5 4012a(i)(1)), such’’. 

6 (c) NO REFUNDS.—Nothing in this section or the 

7 amendments made by this section may be construed to au8 thorize or require any payment or refund for flood insur9 ance coverage purchased for any property that covered any 

10 period during which such coverage is not required for the 

11 property pursuant to the applicability of the amendment 

12 made by subsection (a). 

13 SEC. 7. 5-YEAR PHASE-IN OF FLOOD INSURANCE RATES 

14 FOR NEWLY MAPPED AREAS. 

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

16 Flood Insurance Act of 1968 (42 U.S.C. 4015), as amend17 ed by the preceding provisions of this Act, is further 

18 amended— 

19 (1) in subsection (a), in the matter preceding 

20 paragraph (1), by inserting ‘‘or notice’’ after ‘‘pre21 scribe by regulation’’; 

22 (2) in subsection (c), by inserting ‘‘and sub23 section (g)’’ before the first comma; and 

24 (3) by adding at the end the following new sub25 section: 


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

2 RATES FOR NEWLY MAPPED AREAS.—Notwithstanding 

3 any other provision of law relating to chargeable risk pre4 mium rates for flood insurance coverage under this title, 

5 in the case of any area that was not previously designated 

6 as an area having special flood hazards and that, pursuant 

7 to any issuance, revision, updating, or other change in 

8 flood insurance maps, becomes designated as such an 

9 area, during the 5-year period that begins upon the later 

10 of (A) the expiration of the period referred to in section 

11 102(i)(1) of the Flood Disaster Protection Act of 1973 

12 with respect to such area, or (B) the expiration of any 

13 period during which such area is eligible for any reason 

14 for preferred risk rate method premiums for flood insur15 ance coverage, the chargeable premium rate for flood in16 surance under this title with respect to any property that 

17 is located within such area shall be— 

18 ‘‘(1) for the first year of such 5-year period, 20 

19 percent of the chargeable risk premium rate other20 wise applicable under this title to the property; 

21 ‘‘(2) for the second year of such 5-year period, 

22 40 percent of the chargeable risk premium rate oth23 erwise applicable under this title to the property; 


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1 ‘‘(3) for the third year of such 5-year period, 60 

2 percent of the chargeable risk premium rate other3 wise applicable under this title to the property; 

4 ‘‘(4) for the fourth year of such 5-year period, 

5 80 percent of the chargeable risk premium rate oth6 erwise applicable under this title to the property; 

7 and 

8 ‘‘(5) for the fifth year of such 5-year period, 

9 100 percent of the chargeable risk premium rate 

10 otherwise applicable under this title to the prop11 erty.’’. 

12 (b) REGULATION OR NOTICE.—The Administrator of 

13 the Federal Emergency Management Agency shall issue 

14 an interim final rule or notice to implement this section 

15 and the amendments made by this section as soon as prac16 ticable after the date of the enactment of this Act. 

17 SEC. 8. INCREASE IN ANNUAL LIMITATION ON PREMIUM IN18 CREASES. 

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

20 of 1968 (42 U.S.C. 4015(e)) is amended by striking ‘‘10 

21 percent’’ and inserting ‘‘20 percent’’. 


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1 SEC. 9. CONSIDERATION OF CONSTRUCTION, RECON2 STRUCTION, AND IMPROVEMENT OF FLOOD 

3 PROTECTION SYSTEMS IN DETERMINATION 

4 OF FLOOD INSURANCE RATES. 

5 (a) IN GENERAL.—Section 1307 of the National 

6 Flood Insurance Act of 1968 (42 U.S.C. 4014) is amend7 ed— 

8 (1) in subsection (e)— 

9 (A) in the first sentence, by striking ‘‘con10 struction of a flood protection system’’ and in11 serting ‘‘construction, reconstruction, or im12 provement of a flood protection system (without 

13 respect to the level of Federal investment or 

14 participation)’’; and 

15 (B) in the second sentence— 

16 (i) by striking ‘‘construction of a flood 

17 protection system’’ and inserting ‘‘con18 struction, reconstruction, or improvement 

19 of a flood protection system’’; and 

20 (ii) by inserting ‘‘based on the present 

21 value of the completed system’’ after ‘‘has 

22 been expended’’; and 

23 (2) in subsection (f)— 

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1 spect to the level of Federal investment or par2 ticipation)’’ before the period at the end; 

3 (B) in the third sentence in the matter 

4 preceding paragraph (1), by inserting ‘‘, wheth5 er coastal or riverine,’’ after ‘‘special flood haz6 ard’’; and 

7 (C) in paragraph (1), by striking ‘‘a Fed8 eral agency in consultation with the local 

9 project sponsor’’ and inserting ‘‘the entity or 

10 entities that own, operate, maintain, or repair 

11 such system’’. 

12 (b) REGULATIONS.—The Administrator of the Fed13 eral Emergency Management Agency shall promulgate 

14 regulations to implement this section and the amendments 

15 made by this section as soon as practicable, but not more 

16 than 18 months after the date of the enactment of this 

17 Act. Subsection (c) may not be construed to annul, alter, 

18 affect, authorize any waiver of, or establish any exception 

19 to, the requirement under the preceding sentence. 

20 (c) IMPLEMENTATION.—The Administrator of the 

21 Federal Emergency Management Agency shall implement 

22 this section and the amendments made by this section in 

23 a manner that will not materially weaken the financial po24 sition of the national flood insurance program or increase 

25 the risk of financial liability to Federal taxpayers. 


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1 SEC. 10. DISCOUNTED FLOOD INSURANCE RATES FOR 

2 PROPERTIES PROTECTED BY A FLOOD-PRO3 TECTION SYSTEM FROM LESS THAN A 100- 

4 YEAR FREQUENCY FLOOD. 

5 Section 1307 of the National Flood Insurance Act of 

6 1968 (42 U.S.C. 4014) is amended by adding at the end 

7 the following new subsection: 

8 ‘‘(g) Except as provided in subsection (f) and not9 withstanding any other provision of law, flood insurance 

10 coverage shall be made available for a property that the 

11 Director determines is protected by a flood-protection sys12 tem that does not provide protection against a 100-year 

13 frequency flood at premium rates that reflect a discount 

14 for the actual protection against flood risk afforded by 

15 such flood-protection system.’’. 

16 SEC. 11. TREATMENT OF CERTAIN FLOOD PROTECTION 

17 PROJECTS. 

18 Section 1308 of the National Flood Insurance Act of 

19 1968 (42 U.S.C. 4015), as amended by the preceding pro20 visions of this Act, is further amended by adding at the 

21 end the following new subsection: 

22 ‘‘(h) TREATMENT OF CERTAIN FLOOD PROTECTION

23 PROJECTS.— 

24 ‘‘(1) INAPPLICABILITY OF MANDATORY PUR25 CHASE REQUIREMENT; PREMIUM RATES.—Notwith26 standing any other provision of law, upon full comVerDate Mar 15 2010 01:36 Mar 12, 2011 Jkt 099200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H1026.IH H1026

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1 pletion, as designed, of a flood protection system 

2 that was intended to provide flood protection with 

3 respect to a covered area, such covered area— 

4 ‘‘(A) shall not be considered to be an area 

5 having special flood hazards for purposes of this 

6 Act or subsections (a), (b), or (e) of section 

7 102, or section 202(a) of the Flood Disaster 

8 Protection Act of 1973; and 

9 ‘‘(B) shall be eligible for flood insurance 

10 under this Act, if and to the extent that such 

11 area is eligible for such insurance under the 

12 other provisions of this Act, at premium rates 

13 not exceeding those that would be applicable 

14 under this section if the flood protection system 

15 referred to in paragraph (2) for such area had 

16 been completed and accredited as providing pro17 tection from floods at the level that the system 

18 was designed to provide (before construction, 

19 reconstruction, or improvement of the system, 

20 as applicable, began). 

21 The flood insurance rate maps shall indicate, for 

22 each covered area, the status of the area under sub23 paragraphs (A) and (B). 

24 ‘‘(2) COVERED AREA.—For purposes of this 

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1 tended to be protected by a flood protection sys2 tem— 

3 ‘‘(A)(i) for which, as of April 15, 2010— 

4 ‘‘(I) construction, reconstruction, or 

5 improvement has not been completed; 

6 ‘‘(II) adequate progress, within the 

7 meaning of section 1307(e), has been made 

8 on such construction, reconstruction, or 

9 improvement; and 

10 ‘‘(III) is in an area having special 

11 flood hazards; or 

12 ‘‘(ii) for which, as of such date— 

13 ‘‘(I) construction, reconstruction, or 

14 improvement has been completed; 

15 ‘‘(II) a determination regarding ac16 creditation has not been made; and 

17 ‘‘(III) is in an area having special 

18 flood hazards; 

19 ‘‘(B) that was designed to provide protec20 tion for at least the 100-year frequency flood; 

21 and 

22 ‘‘(C) that has been determined, pursuant 

23 to waterflow data or other scientific information 

24 of a Federal agency obtained after, or that has 

25 changed since, commencement of construction, 


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1 reconstruction, or improvement, will not provide 

2 protection from floods at the level referred to in 

3 subparagraph (B).’’. 

4 SEC. 12. PROHIBITION OF EXTENSION OF SUBSIDIZED 

5 RATES TO LAPSED POLICIES. 

6 Section 1308 of the National Flood Insurance Act of 

7 1968 (42 U.S.C. 4015), as amended by the preceding pro8 visions of this Act, is further amended by adding at the 

9 end the following new subsection: 

10 ‘‘(i) PROHIBITION OF EXTENSION OF SUBSIDIZED

11 RATES TO LAPSED POLICIES.—The Director shall not 

12 provide flood insurance coverage under this title to any 

13 prospective insured at a rate less than the applicable esti14 mated risk premium rates for the area (or subdivision 

15 thereof) for any policy under the flood insurance program 

16 that has lapsed in coverage, as a result of the deliberate 

17 choice of the holder of such policy.’’. 

18 SEC. 13. NOTIFICATION TO HOMEOWNERS REGARDING 

19 MANDATORY PURCHASE REQUIREMENT AP20 PLICABILITY AND RATE PHASE-INS. 

21 Section 201 of the Flood Disaster Protection Act of 

22 1973 (42 U.S.C. 4105) is amended by adding at the end 

23 the following new subsection: 

24 ‘‘(f) ANNUAL NOTIFICATION.—The Director, in con25 sultation with affected communities, shall establish and 


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

2 flood hazards, on an annual basis— 

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

4 ‘‘(2) of the geographical boundaries of such 

5 area; 

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

7 Flood Insurance Act of 1968 applies to properties 

8 within such area; 

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

10 purchase of flood insurance coverage for properties 

11 located in such an area, including the date on which 

12 such provisions apply with respect to such area, tak13 ing into consideration section 102(i); and 

14 ‘‘(5) of a general estimate of what similar 

15 homeowners in similar areas typically pay for flood 

16 insurance coverage, taking into consideration section 

17 1308(g) of the National Flood Insurance Act of 

18 1968.’’. 

19 SEC. 14. COMMUNITY OUTREACH PLAN FOR UPDATING 

20 FLOODPLAIN AREAS AND FLOOD-RISK 

21 ZONES. 

22 The Administrator of the Federal Emergency Man23 agement Agency shall, not later than the expiration of the 

24 60-day period beginning upon the date of the enactment 

25 of this Act, submit to the Congress a community outreach 


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1 plan for the updating of floodplain areas and flood-risk 

2 zones under section 1360(f) of the National Flood Insur3 ance Act of 1968 (42 U.S.C. 4101(f)). 

4 SEC. 15. NOTIFICATION OF ESTABLISHMENT OF FLOOD 

5 ELEVATIONS. 

6 Section 1360 of the National Flood Insurance Act of 

7 1968 (42 U.S.C. 4101) is amended by adding at the end 

8 the following new subsection: 

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

10 MAP MODERNIZATION.—Upon any revision or update of 

11 any floodplain area or flood-risk zone pursuant to sub12 section (f), any decision pursuant to subsection (f)(1) that 

13 such revision or update is necessary, any issuance of pre14 liminary maps for such revision or updating, or any other 

15 significant action relating to any such revision or update, 

16 the Director shall notify the Senators for each State af17 fected, and each Member of the House of Representatives 

18 for each congressional district affected, by such revision 

19 or update in writing of the action taken.’’. 

20 SEC. 16. COVERAGE FOR ADDITIONAL LIVING EXPENSES 

21 AND BUSINESS INTERRUPTION. 

22 Subsection (b) of section 1306 of the National Flood 

23 Insurance Act of 1968 (42 U.S.C. 4013) is amended— 

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

25 end; 


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1 (2) in paragraph (5)— 

2 (A) by inserting ‘‘pursuant to paragraph 

3 (2), (3), or (4)’’ after ‘‘any flood insurance cov4 erage’’; and 

5 (B) by striking the period at the end and 

6 inserting a semicolon; and 

7 (3) by adding at the end the following new 

8 paragraphs: 

9 ‘‘(6) in the case of any residential property, 

10 each renewal or new contract for flood insurance 

11 coverage shall provide not less than $1,000 aggre12 gate liability per dwelling unit for any necessary in13 creases in living expenses incurred by the insured 

14 when losses from a flood make the residence unfit to 

15 live in, which coverage shall be available only at 

16 chargeable rates that are not less than the estimated 

17 premium rates for such coverage determined in ac18 cordance with section 1307(a)(1); 

19 ‘‘(7) in the case of any residential property, op20 tional coverage for additional living expenses de21 scribed in paragraph (6) shall be made available to 

22 every insured upon renewal and every applicant in 

23 excess of the limits provided in paragraph (6) in 

24 such amounts and at such rates as the Director 

25 shall establish, except that such chargeable rates 


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1 shall not be less than the estimated premium rates 

2 for such coverage determined in accordance with sec3 tion 1307(a)(1); and 

4 ‘‘(8) in the case of any commercial property or 

5 other residential property, including multifamily 

6 rental property, optional coverage for losses result7 ing from any partial or total interruption of the in8 sured’s business caused by damage to, or loss of, 

9 such property from a flood shall be made available 

10 to every insured upon renewal and every applicant, 

11 except that— 

12 ‘‘(A) the Director may provide such cov13 erage under such terms, conditions, and re14 quirements as the Director considers appro15 priate to meet the needs of small businesses 

16 while complying with the requirement under 

17 subparagraph (C); and 

18 ‘‘(B) any such coverage shall be made 

19 available only at chargeable rates that are not 

20 less than the estimated premium rates for such 

21 coverage determined in accordance with section 

22 1307(a)(1).’’. 


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1 SEC. 17. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE 

2 DATE OF POLICIES. 

3 Section 1306(c)(2)(A) of the National Flood Insur4 ance Act of 1968 (42 U.S.C. 4013(c)(2)(A)) is amended 

5 by inserting before the semicolon the following: ‘‘or is in 

6 connection with the purchase or other transfer of the prop7 erty for which the coverage is provided (regardless of 

8 whether a loan is involved in the purchase or transfer 

9 transaction), but only when such initial purchase of cov10 erage is made not later 30 days after such making, in11 creasing, extension, or renewal of the loan or not later 

12 than 30 days after such purchase or other transfer of the 

13 property, as applicable’’. 

14 SEC. 18. MINIMUM DEDUCTIBLES FOR CLAIMS. 

15 Section 1312 of the National Flood Insurance Act of 

16 1968 (42 U.S.C. 4019) is amended— 

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

18 the following: ‘‘(a) IN GENERAL.—The Director is’’; 

19 and 

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

21 ‘‘(b) MINIMUM ANNUAL DEDUCTIBLES.— 

22 ‘‘(1) PRE-FIRM PROPERTIES.—For any struc23 ture that is covered by flood insurance under this 

24 title, and on which construction or substantial im25 provement occurred on or before December 31, 

26 1974, or before the effective date of an initial flood 


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1 insurance rate map published by the Director under 

2 section 1360 for the area in which such structure is 

3 located, the minimum annual deductible for damage 

4 to or loss of such structure shall be— 

5 ‘‘(A) $1,500, if the flood insurance cov6 erage for such structure covers loss of, or phys7 ical damage to, such structure in an amount 

8 equal to or less than $100,000; and 

9 ‘‘(B) $2,000, if the flood insurance cov10 erage for such structure covers loss of, or phys11 ical damage to, such structure in an amount 

12 greater than $100,000. 

13 ‘‘(2) POST-FIRM PROPERTIES.—For any struc14 ture that is covered by flood insurance under this 

15 title, and on which construction or substantial im16 provement occurred after December 31, 1974, or 

17 after the effective date of an initial flood insurance 

18 rate map published by the Director under section 

19 1360 for the area in which such structure is located, 

20 the minimum annual deductible for damage to or 

21 loss of such structure shall be— 

22 ‘‘(A) $750, if the flood insurance coverage 

23 for such structure covers loss of, or physical 

24 damage to, such structure in an amount equal 

25 to or less than $100,000; and 


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1 ‘‘(B) $1,000, if the flood insurance cov2 erage for such structure covers loss of, or phys3 ical damage to, such structure in an amount 

4 greater than $100,000.’’. 

5 SEC. 19. PAYMENT OF PREMIUMS IN INSTALLMENTS FOR 

6 RESIDENTIAL PROPERTIES. 

7 Section 1306 of the National Flood Insurance Act of 

8 1968 (42 U.S.C. 4013) is amended by adding at the end 

9 the following new subsection: 

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

11 RESIDENTIAL PROPERTIES.—In addition to any other 

12 terms and conditions under subsection (a), such regula13 tions shall provide that, in the case of any residential prop14 erty, premiums for flood insurance coverage for such prop15 erty may be paid in installments.’’. 

16 SEC. 20. TERMINATION OF FORCE-PLACED INSURANCE. 

17 Section 102(e) of the Flood Disaster Protection Act 

18 of 1973 (42 U.S.C. 4012a(e)) is amended— 

19 (1) by redesignating paragraphs (3) and (4) as 

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

21 (2) by adding inserting after paragraph (2) the 

22 following new paragraphs: 

23 ‘‘(3) TERMINATION OF FORCE-PLACED INSUR24 ANCE.—Within 15 days of receipt by the lender or 

25 servicer of a confirmation of a borrower’s existing 


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1 flood insurance coverage, the lender or servicer 

2 shall— 

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

4 and 

5 ‘‘(B) refund to the borrower all force6 placed insurance premiums paid by the bor7 rower during any period during which the bor8 rower’s flood insurance coverage and the force9 placed flood insurance coverage were each in ef10 fect, and any related fees charged to the bor11 rower with respect to the force-placed insurance 

12 during such period. 

13 ‘‘(4) SUFFICIENCY OF DEMONSTRATION.—A 

14 lender or servicer for a loan shall accept any reason15 able form of written confirmation from a borrower 

16 of existing flood insurance coverage, which shall in17 clude the existing flood insurance policy number 

18 along with the identity of, and contact information 

19 for, the insurance company or agent.’’. 

20 SEC. 21. ENFORCEMENT. 

21 Section 102(f) of the Flood Disaster Protection Act 

22 of 1973 (42 U.S.C. 4012a(f)) is amended— 

23 (1) in paragraph (2)— 

24 (A) in subparagraph (A)(iii), by striking 

25 ‘‘or’’ at the end; 


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1 (B) in subparagraph (B), by striking the 

2 period at the end and inserting ‘‘; or’’; and 

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

4 subparagraph: 

5 ‘‘(C) in connection with the making, in6 creasing, extending, servicing, or renewing of 

7 any loan, requiring the purchase of flood insur8 ance coverage under the National Flood Insur9 ance Act of 1968, or purchasing such coverage 

10 pursuant to subsection (e)(2), in an amount in 

11 excess of the minimum amount required under 

12 subsections (a) and (b) of this section.’’; 

13 (2) in paragraph (5)— 

14 (A) in the first sentence, by striking 

15 ‘‘$350’’ and inserting ‘‘$2,000’’; and 

16 (B) in the last sentence, by striking 

17 ‘‘$100,000’’ and inserting ‘‘$1,000,000; except 

18 that such limitation shall not apply to a regu19 lated lending institution or enterprise for a cal20 endar year if, in any three (or more) of the five 

21 calendar years immediately preceding such cal22 endar year, the total amount of penalties as23 sessed under this subsection against such lend24 ing institution or enterprise was $1,000,000’’; 

25 and 


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1 (3) in paragraph (6), by adding after the period 

2 at the end the following: ‘‘No penalty may be im3 posed under this subsection on a regulated lending 

4 institution or enterprise that has made a good faith 

5 effort to comply with the requirements of the provi6 sions referred to in paragraph (2) or for any non7 material violation of such requirements.’’. 

8 SEC. 22. NOTIFICATION TO TENANTS OF AVAILABILITY OF 

9 CONTENTS INSURANCE. 

10 The National Flood Insurance Act of 1968 is amend11 ed by inserting after section 1308 (42 U.S.C. 4015) the 

12 following new section: 

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

14 OF CONTENTS INSURANCE. 

15 ‘‘(a) IN GENERAL.—The Director shall, upon enter16 ing into a contract for flood insurance coverage under this 

17 title for any property— 

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

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

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

21 the notice, or otherwise provide notification of the 

22 information under subsection (b) in the manner that 

23 the manager or landlord deems most appropriate, to 

24 each such tenant and to each new tenant upon com25 mencement of such a tenancy. 


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1 ‘‘(b) NOTICE.—Notice to a tenant of a property in 

2 accordance with this subsection is written notice that 

3 clearly informs a tenant— 

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

5 having special flood hazards; 

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

7 under the national flood insurance program under 

8 this title for contents of the unit or structure leased 

9 by the tenant; 

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

11 for contents available under this title at that time; 

12 and 

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

14 how to obtain such coverage, including a telephone 

15 number, mailing address, and Internet site of the 

16 Director where such information is available.’’. 

17 SEC. 23. GRANTS FOR DIRECT FUNDING OF MITIGATION 

18 ACTIVITIES FOR INDIVIDUAL REPETITIVE 

19 CLAIMS PROPERTIES. 

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

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

22 4030) is amended— 

23 (1) in the section heading, by inserting ‘‘DI24 RECT’’ before ‘‘GRANTS’’; and 


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1 (2) in the matter in subsection (a) that pre2 cedes paragraph (1)— 

3 (A) by inserting ‘‘, to owners of such prop4 erties,’’ before ‘‘for mitigation actions’’; and 

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

6 (b) AVAILABILITY OF FUNDS.—Paragraph (9) of sec7 tion 1310(a) of the National Flood Insurance Act of 1968 

8 (42 U.S.C. 4017(a)) is amended by inserting ‘‘which shall 

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

10 SEC. 24. FLOOD INSURANCE OUTREACH. 

11 Chapter I of the National Flood Insurance Act of 

12 1968 (42 U.S.C. 4011 et seq.), as amended by the pre13 ceding provisions of this Act, is further amended by add14 ing at the end the following new section: 

15 ‘‘SEC. 1326. GRANTS FOR OUTREACH TO PROPERTY OWN16 ERS AND RENTERS. 

17 ‘‘(a) IN GENERAL.—The Director may, to the extent 

18 amounts are made available pursuant to subsection (i), 

19 make grants to local governmental agencies responsible for 

20 floodplain management activities (including such agencies 

21 of Indians tribes, as such term is defined in section 4 of 

22 the Native American Housing Assistance and Self-Deter23 mination Act of 1996 (25 U.S.C. 4103)) in communities 

24 that participate in the national flood insurance program 

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1 reach activities to encourage and facilitate the purchase 

2 of flood insurance protection under this Act by owners and 

3 renters of properties in such communities and to promote 

4 educational activities that increase awareness of flood risk 

5 reduction. 

6 ‘‘(b) OUTREACH ACTIVITIES.—Amounts from a grant 

7 under this section shall be used only for activities designed 

8 to— 

9 ‘‘(1) identify owners and renters of properties 

10 in communities that participate in the national flood 

11 insurance program, including owners of residential 

12 and commercial properties; 

13 ‘‘(2) notify such owners and renters when their 

14 properties become included in, or when they are ex15 cluded from, an area having special flood hazards 

16 and the effect of such inclusion or exclusion on the 

17 applicability of the mandatory flood insurance pur18 chase requirement under section 102 of the Flood 

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

20 to such properties; 

21 ‘‘(3) educate such owners and renters regarding 

22 the flood risk and reduction of this risk in their 

23 community, including the continued flood risks to 

24 areas that are no longer subject to the flood insur25 ance mandatory purchase requirement; 


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1 ‘‘(4) educate such owners and renters regarding 

2 the benefits and costs of maintaining or acquiring 

3 flood insurance, including, where applicable, lower4 cost preferred risk policies under this title for such 

5 properties and the contents of such properties; 

6 ‘‘(5) encouraging such owners and renters to 

7 maintain or acquire such coverage; 

8 ‘‘(6) notify such owners of where to obtain in9 formation regarding how to obtain such coverage, in10 cluding a telephone number, mailing address, and 

11 Internet site of the Director where such information 

12 is available; and 

13 ‘‘(7) educate local real estate agents in commu14 nities participating in the national flood insurance 

15 program regarding the program and the availability 

16 of coverage under the program for owners and rent17 ers of properties in such communities, and establish 

18 coordination and liaisons with such real estate 

19 agents to facilitate purchase of coverage under this 

20 Act and increase awareness of flood risk reduction. 

21 ‘‘(c) COST SHARING REQUIREMENT.— 

22 ‘‘(1) IN GENERAL.—In any fiscal year, the Di23 rector may not provide a grant under this section to 

24 a local governmental agency in an amount exceeding 

25 3 times the amount that the agency certifies, as the 


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1 Director shall require, that the agency will con2 tribute from non-Federal funds to be used with 

3 grant amounts only for carrying out activities de4 scribed in subsection (b). 

5 ‘‘(2) NON-FEDERAL FUNDS.—For purposes of 

6 this subsection, the term ‘non-Federal funds’ in7 cludes State or local government agency amounts, 

8 in-kind contributions, any salary paid to staff to 

9 carry out the eligible activities of the grant recipient, 

10 the value of the time and services contributed by vol11 unteers to carry out such services (at a rate deter12 mined by the Director), and the value of any do13 nated material or building and the value of any lease 

14 on a building. 

15 ‘‘(d) ADMINISTRATIVE COST LIMITATION.—Notwith16 standing subsection (b), the Director may use not more 

17 than 5 percent of amounts made available under sub18 section (i) to cover salaries, expenses, and other adminis19 trative costs incurred by the Director in making grants 

20 and provide assistance under this section. 

21 ‘‘(e) APPLICATION AND SELECTION.— 

22 ‘‘(1) IN GENERAL.—The Director shall provide 

23 for local governmental agencies described in sub24 section (a) to submit applications for grants under 

25 this section and for competitive selection, based on 


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1 criteria established by the Director, of agencies sub2 mitting such applications to receive such grants. 

3 ‘‘(2) SELECTION CONSIDERATIONS.—In select4 ing applications of local government agencies to re5 ceive grants under paragraph (1), the Director shall 

6 consider— 

7 ‘‘(A) the existence of a cooperative tech8 nical partner agreement between the local gov9 ernmental agency and the Federal Emergency 

10 Management Agency; 

11 ‘‘(B) the history of flood losses in the rel12 evant area that have occurred to properties, 

13 both inside and outside the special flood haz14 ards zones, which are not covered by flood in15 surance coverage; 

16 ‘‘(C) the estimated percentage of high-risk 

17 properties located in the relevant area that are 

18 not covered by flood insurance; 

19 ‘‘(D) demonstrated success of the local 

20 governmental agency in generating voluntary 

21 purchase of flood insurance; 

22 ‘‘(E) demonstrated technical capacity of 

23 the local governmental agency for outreach to 

24 individual property owners; and 


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1 ‘‘(F) the number of flood-related major 

2 disaster or emergency declarations made by the 

3 President with respect to the relevant area 

4 under the Robert T. Stafford Disaster Relief 

5 and Emergency Assistance Act (42 U.S.C. 5121 

6 et seq.) during the preceding five years. 

7 ‘‘(f) DIRECT OUTREACH BY FEMA.—In each fiscal 

8 year that amounts for grants are made available pursuant 

9 to subsection (i), the Director may use not more than 50 

10 percent of such amounts to carry out, and to enter into 

11 contracts with other entities to carry out, activities de12 scribed in subsection (b) in areas that the Director deter13 mines have the most immediate need for such activities. 

14 ‘‘(g) COORDINATION WITH OTHER AGENCIES.—A 

15 local governmental agency that receives a grant under this 

16 section, and an entity that receives amounts pursuant to 

17 subsection (f), may coordinate or contract with other 

18 agencies and entities having particular capacities, special19 ties, or experience with respect to certain populations or 

20 constituencies, including elderly or disabled families or 

21 persons, to carry out activities described in subsection (b) 

22 with respect to such populations or constituencies. 

23 ‘‘(h) REPORTING.— 

24 ‘‘(1) LOCAL GOVERNMENTS.—Each local gov25 ernment agency that receives a grant under this secVerDate Mar 15 2010 01:36 Mar 12, 2011 Jkt 099200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\H1026.IH H1026

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1 tion, and each entity that receives amounts pursuant 

2 to subsection (f), shall submit a report to the Direc3 tor, not later than 12 months after such amounts 

4 are first received, which shall include such informa5 tion as the Director considers appropriate to de6 scribe the activities conducted using such amounts 

7 and the effect of such activities on the retention or 

8 acquisition of flood insurance coverage. 

9 ‘‘(2) DIRECTOR.—The Director shall submit an 

10 annual report, not later than December 31 of each 

11 year, to the Committee on Financial Services of the 

12 House of Representatives and the Committee on 

13 Banking, Housing, and Urban Affairs of the Senate 

14 on the effectiveness of grants awarded under this 

15 section to local government agencies, the activities 

16 conducted using such grant amounts, and the effect 

17 of such activities on the retention or acquisition of 

18 flood insurance coverage. 

19 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 

20 authorized to be appropriated for grants under this section 

21 $50,000,000 for each of fiscal years 2012 through 2016. 

22 ‘‘(j) PROHIBITION ON EARMARKS.—No amounts 

23 made available for grants under this section may be used 

24 for a Congressional earmark as defined in clause 9(e) of 

25 Rule XXI of the Rules of the House of Representatives.’’. 


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1 SEC. 25. TREATMENT OF SWIMMING POOL ENCLOSURES 

2 OUTSIDE OF HURRICANE SEASON. 

3 Chapter I of the National Flood Insurance Act of 

4 1968 (42 U.S.C. 4001 et seq.), as amended by the pre5 ceding provisions of this Act, is further amended by add6 ing at the end the following new section: 

7 ‘‘SEC. 1327. TREATMENT OF SWIMMING POOL ENCLOSURES 

8 OUTSIDE OF HURRICANE SEASON. 

9 ‘‘In the case of any property that is otherwise in com10 pliance with the coverage and building requirements of the 

11 national flood insurance program, the presence of an en12 closed swimming pool located at ground level or in the 

13 space below the lowest floor of a building after November 

14 30 and before June 1 of any year shall have no effect on 

15 the terms of coverage or the ability to receive coverage 

16 for such building under the national flood insurance pro17 gram established pursuant to this title, if the pool is en18 closed with non-supporting breakaway walls.’’. 

19 SEC. 26. REQUIREMENTS RELATING TO WINDSTORM AND 

20 FLOOD. 

21 Section 1345 of the National Flood Insurance Act of 

22 1968 (42 U.S.C. 4081) is amended by adding at the end 

23 the following new subsection: 

24 ‘‘(d) REQUIREMENTS FOR WRITE-YOUR-OWN INSUR25 ERS RELATING TO WINDSTORM AND FLOOD.— 


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1 ‘‘(1) WRITTEN AGREEMENT.—The Director 

2 may not utilize the facilities or services of any insur3 ance company or other insurer or entity to offer 

4 flood insurance coverage under this title unless such 

5 company, insurer, or entity enters into a written 

6 agreement with the Director that provides as fol7 lows: 

8 ‘‘(A) PROHIBITION ON EXCLUSION OF

9 WIND DAMAGE COVERAGE.—The agreement 

10 shall prohibit the company, insurer, or entity 

11 from including, in any policy provided by the 

12 company or insurer for homeowners’ insurance 

13 coverage or coverage for damage from wind14 storms, any provision that excludes coverage for 

15 wind or other damage solely because flooding 

16 also contributed to damage to the insured prop17 erty. 

18 ‘‘(B) FIDUCIARY RESPONSIBILITY.—The 

19 agreement shall provide that the company, in20 surer, or entity— 

21 ‘‘(i) has a fiduciary duty with respect 

22 to the Federal taxpayers; 

23 ‘‘(ii) in selling and servicing policies 

24 for flood insurance coverage under this 

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1 erage, will act in the best interests the na2 tional flood insurance program rather than 

3 in the interests of the company, insurer, or 

4 entity; and 

5 ‘‘(iii) will provide written guidance to 

6 each insurance agent and claims adjuster 

7 for the company, insurer, or entity that 

8 sets forth the terms of the agreement pur9 suant to subparagraph (A) and this sub10 paragraph. 

11 ‘‘(2) REQUIREMENTS FOR ADJUSTMENT OF

12 CLAIMS.—The Director shall, in utilizing the facili13 ties of any insurance company or other insurer or 

14 entity pursuant to this section to offer flood insur15 ance coverage under this title, the Director shall 

16 provide as follows: 

17 ‘‘(A) APPROVAL OF ADJUSTMENT PROCE18 DURES.—No such insurance company, other in19 surer, or entity may offer flood insurance cov20 erage under this title unless the Director has 

21 approved, as meeting standards as the Director 

22 shall establish, the procedures, protocols, guide23 lines, standards, or instructions used by the 

24 company, insurer, or entity in adjusting claims 

25 for identifying, apportioning, quantifying, and 


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1 differentiating damage caused by flooding and 

2 damage caused by wind. 

3 ‘‘(B) TREATMENT OF WIND AND FLOOD

4 CLAIMS FROM SAME EVENT.—The Director 

5 shall require any insurance company or other 

6 insurer or entity that, pursuant to this section, 

7 provides flood insurance coverage under this 

8 title for a property and that also provides insur9 ance coverage for the same property for losses 

10 resulting from wind, when claims are made both 

11 for damage resulting from flood and for damage 

12 resulting from wind involved in a single event, 

13 to comply with the following requirements: 

14 ‘‘(i) CONTEMPORANEOUS ADJUST15 MENT.—The claims for damage to the 

16 property under the coverage under this 

17 title for losses from flood and under the 

18 coverage for losses from wind shall be ad19 justed contemporaneously. 

20 ‘‘(ii) INCLUSIONS IN FLOOD CLAIM

21 FILE.—The insurance company, other in22 surer, or entity shall obtain and include in 

23 the file maintained with respect to any 

24 claim under the flood insurance coverage 

25 under this title, and make available to the 


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1 Director upon request, the following infor2 mation relating to the wind claim: 

3 ‘‘(I) The amount paid on the 

4 claim and the date of such payment. 

5 ‘‘(II) An explanation of rationale 

6 used by the company, insurer, or enti7 ty in determining which damage re8 sulted from flood and which damage 

9 resulted from wind. 

10 ‘‘(III) Copies of any photographs, 

11 witness statements, and other evi12 dence related to the wind or flood 

13 claim. 

14 ‘‘(iii) REVIEW.—The Director shall re15 view the information obtained pursuant to 

16 clause (ii) to ensure that— 

17 ‘‘(I) claims are paid under cov18 erage under this title only for losses 

19 resulting from flood; and 

20 ‘‘(II) in the adjusting the claims, 

21 the insurance company or other in22 surer or entity complied with proce23 dures, protocols, guidelines, stand24 ards, or instructions for identifying, 

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1 ferentiating damage caused by flood2 ing and damage caused by wind that 

3 have been approved by the Director as 

4 meeting the standards established by 

5 the Director pursuant to subpara6 graph (A). 

7 ‘‘(iv) PAYMENT UNDER FLOOD COV8 ERAGE WHEN CAUSE OF LOSS CANNOT BE

9 DETERMINED.—If the insurance company 

10 or other insurer or entity determines that 

11 the loss claimed was caused by flooding or 

12 wind, but that the evidence is insufficient 

13 to differentiate the losses caused by flood14 ing from those caused by wind, the com15 pany, insurer, or entity shall pay the claim 

16 under the flood insurance coverage for the 

17 property as if the entire loss were caused 

18 by flooding, and shall submit all informa19 tion regarding the claim to the Director. 

20 ‘‘(v) FEMA DETERMINATION AND RE21 COVERY.—In the case of any claim paid 

22 pursuant to clause (iv), the Director shall 

23 review the information related to the claim 

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1 garding such claims as the Director shall 

2 establish, the losses caused by wind. The 

3 Director shall seek to recover any portion 

4 of the losses that the Director determines 

5 were caused by wind from the insurance 

6 company or other insurer or entity that, 

7 pursuant to clause (iv), paid such losses as 

8 flood losses.’’. 

9 SEC. 27. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 

10 AND ESCROW IN RESPA GOOD FAITH ESTI11 MATE. 

12 Subsection (c) of section 5 of the Real Estate Settle13 ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is 

14 amended by adding at the end the following new sentence: 

15 ‘‘Each such good faith estimate shall include the following 

16 conspicuous statements and information: (1) that flood in17 surance coverage for residential real estate is generally 

18 available under the national flood insurance program 

19 whether or not the real estate is located in an area having 

20 special flood hazards and that, to obtain such coverage, 

21 a home owner or purchaser should contact the national 

22 flood insurance program; (2) a telephone number and a 

23 location on the Internet by which a home owner or pur24 chaser can contact the national flood insurance program; 

25 and (3) that the escrowing of flood insurance payments 


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1 is required for many loans under section 102(d) of the 

2 Flood Disaster Protection Act of 1973, and may be a con3 venient and available option with respect to other loans.’’. 

4 SEC. 28. AUTHORIZATION OF ADDITIONAL FEMA STAFF. 

5 Notwithstanding any other provision of law, the Di6 rector of the Federal Emergency Management Agency 

7 may employ such additional staff as may be necessary to 

8 carry out all of the responsibilities of the Director pursu9 ant to this Act, the amendments made by this Act, and 

10 the national flood insurance program. There are author11 ized to be appropriated to Director such sums as may be 

12 necessary for costs of employing such additional staff. 

13 SEC. 29. PLAN TO VERIFY MAINTENANCE OF FLOOD INSUR14 ANCE ON MISSISSIPPI AND LOUISIANA PROP15 ERTIES RECEIVING EMERGENCY SUPPLE16 MENTAL FUNDS. 

17 The Secretary of Housing and Urban Development 

18 and the Director of the Federal Emergency Management 

19 Agency shall jointly develop and implement a plan to 

20 verify that persons receiving funds under the Homeowner 

21 Grant Assistance Program of the State of Mississippi or 

22 the Road Home Program of the State of Louisiana from 

23 amounts allocated to the State of Mississippi or the State 

24 of Louisiana, respectively, from the Community develop25 ment fund under the Emergency Supplemental AppropriaVerDate Mar 15 2010 01:36 Mar 12, 2011 Jkt 099200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\H1026.IH H1026

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1 tions Act to Address Hurricanes in the Gulf of Mexico and 

2 Pandemic Influenza, 2006 (Public Law 109–148) are 

3 maintaining flood insurance on the property for which 

4 such persons receive such funds as required by each such 

5 Program. 

6 SEC. 30. FLOOD INSURANCE ADVOCATE. 

7 Chapter II of the National Flood Insurance Act of 

8 1968 is amended by inserting after section 1330 (42 

9 U.S.C. 4041) the following new section: 

10 ‘‘SEC. 1330A. OFFICE OF THE FLOOD INSURANCE ADVO11 CATE. 

12 ‘‘(a) ESTABLISHMENT OF POSITION.— 

13 ‘‘(1) IN GENERAL.—There shall be in the Fed14 eral Emergency Management Agency an Office of 

15 the Flood Insurance Advocate which shall be headed 

16 by the National Flood Insurance Advocate. The Na17 tional Flood Insurance Advocate shall report directly 

18 to the Director and shall, to the extent amounts are 

19 provided pursuant to subsection (f), be compensated 

20 at the same rate as the highest rate of basic pay es21 tablished for the Senior Executive Service under sec22 tion 5382 of title 5, United States Code, or, if the 

23 Director so determines, at a rate fixed under section 

24 9503 of such title. 


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1 ‘‘(2) APPOINTMENT.—The National Flood In2 surance Advocate shall be appointed by the Director, 

3 and without regard to the provisions of title 5, 

4 United States Code, relating to appointments in the 

5 competitive service or the Senior Executive Service. 

6 ‘‘(3) QUALIFICATIONS.—An individual ap7 pointed under paragraph (2) shall have a back8 ground in customer service as well as insurance. 

9 ‘‘(4) STAFF.—To the extent amounts are pro10 vided pursuant to subsection (f), the National Flood 

11 Insurance Advocate may employ such personnel as 

12 may be necessary to carry out the duties of the Of13 fice. 

14 ‘‘(b) FUNCTIONS OF OFFICE.— 

15 ‘‘(1) IN GENERAL.—It shall be the function of 

16 the Office of the Flood Insurance Advocate to— 

17 ‘‘(A) assist insureds under the national 

18 flood insurance program in resolving problems 

19 with the Federal Emergency Management 

20 Agency relating to such program; 

21 ‘‘(B) identify areas in which such insureds 

22 have problems in dealings with the Agency re23 lating to such program; 


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1 ‘‘(C) identify potential legislative, adminis2 trative, or regulatory changes which may be ap3 propriate to mitigate such problems; 

4 ‘‘(D) assist communities and homeowners 

5 with interpreting, implementing, and appealing 

6 floodplain maps and floodplain map determina7 tions; 

8 ‘‘(E) facilitate the sharing of the best-prac9 tices of the Federal Emergency Management 

10 Agency amongst all offices of the Agency with 

11 respect to the creation and updating of flood12 plain maps; 

13 ‘‘(F) not less than one year after receipt of 

14 a request from a community, perform an eco15 nomic impact analysis for such community on 

16 the economic impact of floodplain maps and 

17 floodplain map determinations on small busi18 nesses, lending, real estate development, and 

19 other economic indicators within such commu20 nity; 

21 ‘‘(G) establish a national arbitration panel 

22 regarding flood map modernization, with panel 

23 members consisting of experts in flood insur24 ance, flood map determination, real estate de25 velopment, structural engineering, and other 


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1 such experts, including a representative from 

2 the Federal Emergency Management Adminis3 tration, to allow individuals or communities im4 pacted by a flood map revision to challenge 

5 such a revision; such panel may, under such 

6 terms and conditions it may establish, tempo7 rarily suspend implementation of a floodplain 

8 map pending such panel’s review of evidence 

9 submitted by such individuals or communities 

10 as part of such challenge; 

11 ‘‘(H) establish a process under which sci12 entific and engineering data, including maps 

13 and an explanation of how the Director makes 

14 a determination regarding a map revision, will 

15 be made publicly available to any interested in16 dividuals to be impacted by a flood map revi17 sion; 

18 ‘‘(I) establish a process under which each 

19 community to be impacted by a flood map revi20 sion will be provided an open community forum 

21 to consult with and ask questions of representa22 tives of the Federal Emergency Management 

23 Administration; and 


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1 ‘‘(J) identify ways to assist communities in 

2 efforts to fund the accreditation of flood protec3 tion systems. 

4 ‘‘(2) ANNUAL REPORTS.— 

5 ‘‘(A) ACTIVITIES.—Not later than Decem6 ber 31 of each calendar year, the National 

7 Flood Insurance Advocate shall report to the 

8 Committee on Financial Services of the House 

9 of Representatives and the Committee on Bank10 ing, Housing, and Urban Affairs of the Senate 

11 on the activities of the Office of the Flood In12 surance Advocate during the fiscal year ending 

13 during such calendar year. Any such report 

14 shall contain full and substantive analysis, in 

15 addition to statistical information, and shall— 

16 ‘‘(i) identify the initiatives the Office 

17 of the Flood Insurance Advocate has taken 

18 on improving services for insureds under 

19 the national flood insurance program and 

20 responsiveness of the Federal Emergency 

21 Management Agency with respect to such 

22 program; 

23 ‘‘(ii) identify areas of the law or regu24 lations relating to the national flood insur25 ance program that impose significant comVerDate Mar 15 2010 01:36 Mar 12, 2011 Jkt 099200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H1026.IH H1026

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1 pliance burdens on such insureds or the 

2 Federal Emergency Management Agency, 

3 including specific recommendations for 

4 remedying these problems; and 

5 ‘‘(iii) include such other information 

6 as the National Flood Insurance Advocate 

7 may deem advisable. 

8 ‘‘(B) DIRECT SUBMISSION OF REPORT.— 

9 Each report required under this paragraph 

10 shall be provided directly to the committees 

11 identified in subparagraph (A) without any 

12 prior review or comment from the Director, the 

13 Secretary of Homeland Security, or any other 

14 officer or employee of the Federal Emergency 

15 Management Agency or the Department of 

16 Homeland Security, or the Office of Manage17 ment and Budget. 

18 ‘‘(c) FUNDING.—Pursuant to section 1310(a)(4), the 

19 Director may use amounts from the National Flood Insur20 ance Fund to fund the activities of the Office of the Flood 

21 Advocate in each of fiscal years 2012 through 2017, ex22 cept that the amount so used in each such fiscal year may 

23 not exceed $5,000,000 and shall remain available until ex24 pended. Notwithstanding any other provision of this title, 

25 amounts made available pursuant to this subsection shall 


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1 not be subject to offsetting collections through premium 

2 rates for flood insurance coverage under this title.’’. 

3 SEC. 31. TREATMENT OF PREVIOUSLY MAPPED AREAS. 

4 Section 1360 of the National Flood Insurance Act of 

5 1968 (42 U.S.C. 4101) is amended by adding at the end 

6 the following new subsection: 

7 ‘‘(k) TREATMENT OF PREVIOUSLY MAPPED

8 AREAS.—If the Director issues a letter of map revision 

9 for an area or a portion of an area to correct an error 

10 in a recently issued flood insurance rate map and such 

11 letter results in the designation of such area as not having 

12 special flood hazards, the Director shall reexamine the 

13 designation of any areas bordering or abutting the area 

14 that was the subject of such letter if such areas are located 

15 within a special flood hazard area. The Director shall in16 form the community and residents within such area of the 

17 results of such examination no later than one year after 

18 the date of the initial letter of map revision.’’. 

19 SEC. 32. REMAPPING OF AREAS WITH IMPROVED LEVEES. 

20 Section 1360 of the National Flood Insurance Act of 

21 1968 (42 U.S.C. 4101) is amended by adding at the end 

22 the following new subsection: 

23 ‘‘(l) REMAPPING OF AREAS WITH IMPROVED LEV24 EES.—If at any time any community, any State, the Army 

25 Corps of Engineers, or any other entity improves any levee 


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1 system that protects any area that is located in an area 

2 having special flood hazards and the Director determines 

3 that such improvement mitigates flood risk in a manner 

4 that eliminates the risk of flooding in the area, the Direc5 tor shall— 

6 ‘‘(1) revise and update the floodplain areas and 

7 flood risk zones, and the flood insurance maps re8 flecting such areas and zones, for the areas pro9 tected by such levee system so that any requirement 

10 under the Flood Disaster Protection Act of 1973 for 

11 mandatory purchase of flood insurance does not 

12 apply to such area; and 

13 ‘‘(2) make the updated maps and any informa14 tion regarding such updating available to the af15 fected communities.’’. 

16 SEC. 33. APPEALS. 

17 (a) TELEVISION AND RADIO ANNOUNCEMENT.—Sec18 tion 1363 of the National Flood Insurance Act of 1968 

19 (42 U.S.C. 4104) is amended— 

20 (1) in subsection (a), by inserting after ‘‘deter21 minations’’ by inserting the following: ‘‘by notifying 

22 a local television and radio station,’’; and 

23 (2) in the first sentence of subsection (b), by in24 serting before the period at the end the following: 


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1 ‘‘and shall notify a local television and radio station 

2 at least once during the same 10-day period’’. 

3 (b) APPLICABILITY.—The amendments made by sub4 section (a) shall apply with respect to any flood elevation 

5 determination for any area in a community that has not, 

6 as of the date of the enactment of this Act, been issued 

7 a Letter of Final Determination for such determination 

8 under the flood insurance map modernization process. 

9 SEC. 34. ELIGIBILITY OF PROPERTY DEMOLITION AND RE10 BUILDING UNDER FLOOD MITIGATION AS11 SISTANCE PROGRAM. 

12 (a) FLOOD MITIGATION ASSISTANCE PROGRAM.— 

13 Section 1366(e)(5)(B) of the National Flood Insurance 

14 Act of 1968 (42 U.S.C. 4104c(e)(5)(B)) is amended by 

15 striking ‘‘or floodproofing’’ and inserting ‘‘floodproofing, 

16 or demolition and rebuilding of properties to at least base 

17 flood elevation or greater, if required by any local ordi18 nance’’. 

19 (b) SENSE OF CONGRESS.—It is the sense of Con20 gress that section 1366 of the Flood Insurance Act of 

21 1968 (42 U.S.C. 4104c), as in effect on the day before 

22 the date of enactment of this Act, authorized the Adminis23 trator of the Federal Emergency Management Agency to 

24 consider property demolition and rebuilding as eligible ac25 tivities under the Flood Mitigation Assistance Program. 


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1 The purpose of the amendment made by subsection (a) 

2 is to clarify that such authority exists. 

3 SEC. 35. STUDY REGARDING MANDATORY PURCHASE RE4 QUIREMENT FOR NON-FEDERALLY RELATED 

5 LOANS. 

6 (a) IN GENERAL.—The Comptroller General shall 

7 conduct a study to assess the impact, effectiveness, and 

8 feasibility of, and basis under the Constitution of the 

9 United States for, amending the provisions of the Flood 

10 Disaster Protection Act of 1973 regarding the properties 

11 that are subject to the mandatory flood insurance coverage 

12 purchase requirements under such Act to extend such re13 quirements to any property that is located in any area hav14 ing special flood hazards and which secures the repayment 

15 of a loan that is not described in paragraph (1), (2), or 

16 (3) of section 102(b) of such Act, and shall determine how 

17 best to administer and enforce such a requirement, taking 

18 into consideration other insurance purchase requirements 

19 under Federal and State law. 

20 (b) REPORT.—The Comptroller General shall submit 

21 a report to the Congress regarding the results and conclu22 sions of the study under subsection (a) not later than the 

23 expiration of the 6-month period beginning on the date 

24 of the enactment of this Act. 


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1 SEC. 36. STUDY OF METHODS TO INCREASE FLOOD INSUR2 ANCE PROGRAM PARTICIPATION BY LOW-IN3 COME FAMILIES AND FAMILIES IN RURAL 

4 COMMUNITIES AND ON INDIAN RESERVA5 TIONS. 

6 (a) IN GENERAL.—The Comptroller General of the 

7 United States shall conduct a study to identify and ana8 lyze potential methods, practices, and incentives that 

9 would increase the extent to which low-income families (as 

10 such term is defined in section 3(b) of the United States 

11 Housing Act of 1937 (42 U.S.C. 1437a(b))), families re12 siding in rural communities, and families who reside on 

13 Indian reservations, that own residential properties lo14 cated within areas having special flood hazards purchase 

15 flood insurance coverage for such properties under the na16 tional flood insurance program. In conducting the study, 

17 the Comptroller General shall analyze the effectiveness 

18 and costs of the various methods, practices, and incentives 

19 identified, including their effects on the national flood in20 surance program. 

21 (b) REPORT.—The Comptroller General shall submit 

22 to the Congress a report setting forth the conclusions of 

23 the study under this section not later than 12 months 

24 after the date of the enactment of this Act. 


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1 SEC. 37. REPORT ON INCLUSION OF BUILDING CODES IN 

2 FLOODPLAIN MANAGEMENT CRITERIA. 

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

4 beginning on the date of the enactment of this Act, the 

5 Administrator of the Federal Emergency Management 

6 Agency shall conduct a study and submit a report to the 

7 Committee on Financial Services of the House of Rep8 resentatives and the Committee on Banking, Housing, and 

9 Urban Affairs of the Senate regarding the impact, effec10 tiveness, and feasibility of amending section 1361 of the 

11 National Flood Insurance Act of 1968 (42 U.S.C. 4102) 

12 to include widely used and nationally recognized building 

13 codes as part of the floodplain management criteria devel14 oped under such section, and shall determine— 

15 (1) the regulatory, financial, and economic im16 pacts of such a building code requirement on home17 owners, States and local communities, local land use 

18 policies, and the Federal Emergency Management 

19 Agency; 

20 (2) the resources required of State and local 

21 communities to administer and enforce such a build22 ing code requirement; 

23 (3) the effectiveness of such a building code re24 quirement in reducing flood-related damage to build25 ings and contents; 


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1 (4) the impact of such a building code require2 ment on the actuarial soundness of the National 

3 Flood Insurance Program; 

4 (5) the effectiveness of nationally recognized 

5 codes in allowing innovative materials and systems 

6 for flood-resistant construction; 

7 (6) the feasibility and effectiveness of providing 

8 an incentive in lower premium rates for flood insur9 ance coverage under such Act for structures meeting 

10 whichever of such widely used and nationally recog11 nized building code or any applicable local building 

12 code provides greater protection from flood damage; 

13 (7) the impact of such a building code require14 ment on rural communities with different building 

15 code challenges than more urban environments; and 

16 (8) the impact of such a building code require17 ment on Indian reservations. 

18 SEC. 38. STUDY ON REPAYING FLOOD INSURANCE DEBT. 

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

20 beginning on the date of the enactment of this Act, the 

21 Administrator of the Federal Emergency Management 

22 Agency shall submit a report to the Congress setting forth 

23 a plan for repaying within 10 years all amounts, including 

24 any amounts previously borrowed but not yet repaid, owed 

25 pursuant to clause (2) of subsection (a) of section 1309 


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

2 4016(a)(2)). 

3 SEC. 39. STUDY REGARDING CERTAIN HARBOR AREAS. 

4 (a) STUDY.—The Administrator of the Federal 

5 Emergency Management Agency shall carry out a study 

6 to identify the impacts of the National Flood Insurance 

7 Program on harbor areas that are working waterfronts, 

8 which shall— 

9 (1) identify the models and assumptions used 

10 under such program with respect to wave action in 

11 working waterfronts and harbors; 

12 (2) determine whether these are the same mod13 els and assumptions used for open or unprotected 

14 coast lines; 

15 (3) identify the assumptions used under such 

16 program in modeling V-zones; 

17 (4) identify the underlying basis for projected 

18 impact of waves on working waterfronts; 

19 (5) identify the frequency with which individual 

20 working waterfronts receive revised flood-risk based 

21 on the data they provide; 

22 (6) determine the feasibility of basing flood 

23 maps for such working waterfronts on actual histor24 ical flood and damage data; 


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1 (7) identify the standards for construction and 

2 design of working waterfront infrastructure that 

3 would be needed to safely develop commercial build4 ings in the V-zone; 

5 (8) determine the economic impacts of the Na6 tional Flood Insurance Program on working water7 fronts and working waterfront dependant businesses; 

8 (9) identify any new or alternative models that 

9 may be used to more accurately reflect the risk of 

10 flooding in working waterfronts and harbor environ11 ments; 

12 (10) review the current coastal flood insurance 

13 study guidelines and recommended methodologies; 

14 (11) determine whether methodologies other 

15 than those referred to in paragraph (10) should be 

16 applied with respect to complicated harbors and 

17 open shorelines; 

18 (12) review where 2–D ST Wave methodology 

19 should be applied and where other methodologies 

20 should be applied; 

21 (13) review available data on wave attenuation 

22 through pilings and piers and determine whether a 

23 physical model for the attenuation of waves in that 

24 environment can be undertaken to derive such data; 

25 and 


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1 (14) include any other information the Adminis2 trator considers relevant to evaluating the flood risk 

3 and insurance challenges facing working waterfronts. 

4 (b) REPORT.—Not later than 180 days after the date 

5 of the enactment of this Act, the Administrator shall sub6 mit to the Congress a report setting forth the results and 

7 conclusions of the study, including— 

8 (1) a description of all of the matters identified 

9 and determined pursuant to subsection (a); and 

10 (2) an analysis of the feasibility of developing 

11 a sheltered harbor flood zone for purposes of the 

12 National Flood Insurance Program that specifically 

13 recognizes the unique challenges faced by working 

14 waterfronts and built-up harbors. 

15 (c) DEFINITION.—In this section, the term ‘‘working 

16 waterfront’’ means real property (including support struc17 tures over water and other facilities) that provides access 

18 to coastal waters to persons engaged in commercial fish19 ing, recreational fishing business, boatbuilding, aqua20 culture, or other water-dependent coastal-related business 

21 and is used for, or that supports, commercial fishing, rec22 reational fishing, boatbuilding, aquaculture, or other 

23 water-dependent coastal-related business. 


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1 SEC. 40. STUDY REGARDING HAZARD MODELING. 

2 The Administrator of the Federal Emergency Man3 agement Agency shall conduct a study to identify and as4 sess the impacts, including short-term and long-term im5 pacts, of significant flooding events and subsequent revi6 sions of hazard modeling and mapping since January 1, 

7 2000, on the financial soundness of the national flood in8 surance program. The Administrator may enter into an 

9 agreement with Water Resources Research Institutes to 

10 conduct the study under this section. The Administrator 

11 shall provide for a final report regarding the study to be 

12 submitted to the Congress not later than the expiration 

13 of the 16-month period beginning on the date of the enact14 ment of this Act. The report may include recommenda15 tions of the Administrator with respect to revising hazard 

16 modeling and mapping. 

17 SEC. 41. STUDY REGARDING IMPACT OF RATE INCREASES 

18 ON PRE-FIRM PROPERTIES. 

19 (a) IN GENERAL.—The Comptroller General of the 

20 United States shall conduct a study to assess the impacts 

21 of implementing provisions regarding pre-FIRM prop22 erties (as such term is defined in section 578(b) of the 

23 National Flood Insurance Reform Act of 1994 (42 U.S.C. 

24 4014)), including the impact on the program participation 

25 rate among owners, renters, and tenants of non-primary 

26 residences or commercial nonresidential properties. In 


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1 conducting the study, the Comptroller General shall ana2 lyze the cost effectiveness and effect on local government 

3 tax base of various options, including an option of imple4 menting such provisions on the severe repetitive loss prop5 erties only. 

6 (b) REPORT.—The Comptroller General shall submit 

7 a report to Congress regarding the results and conclusions 

8 of the study under subsection (a) not later than the expi9 ration of the 9-month period beginning on the date of en10 actment of this Act. 

11 SEC. 42. STUDY OF EFFECTS OF ACT. 

12 (a) STUDY.—The Administrator of the Federal 

13 Emergency Management Agency shall conduct a study to 

14 identify and assess the impacts, including short-term and 

15 long-term impacts, of this Act and the amendments made 

16 by this Act on the financial soundness of the national flood 

17 insurance program. 

18 (b) REPORT.—Not later than 12 months after the 

19 date of the enactment of this Act, the Administrator shall 

20 submit a report to the Congress setting forth the results 

21 and conclusions of study under subsection (a), which shall 

22 include specific recommendations for actions to mitigate 

23 against any negative financial impacts resulting from this 

24 Act and the amendments made by this Act that could in25 crease the debt of the national flood insurance program. 


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1 SEC. 43. REIMBURSEMENT FOR COSTS INCURRED BY 

2 HOMEOWNERS OBTAINING LETTERS OF MAP 

3 AMENDMENT. 

4 If the owner of any property located in an area de5 scribed in section 102(i)(1) of the Flood Disaster Protec6 tion Act of 1973 (as added by the preceding provisions 

7 of this Act) obtains a letter of map amendment during 

8 the 5-year period for such area referred to in such section, 

9 the Administrator of the Federal Emergency Management 

10 Agency shall reimburse such owner, or such entity or ju11 risdiction acting on such owner’s behalf, for any costs in12 curred in obtaining such letter. 

13 SEC. 44. INTERIM FINAL RULEMAKING. 

14 The Administrator of the Federal Emergency Man15 agement Agency shall issue an interim final rule to imple16 ment the amendments made by this Act as soon as prac17 ticable, but not more than 18 months after the date of 

18 the enactment of this Act. The Administrator of the Fed19 eral Emergency Management Agency shall issue a final 

20 rule within one year after the effective date of the interim 

21 final rule. In the event that the deadlines in this section 

22 are not met, the Administrator shall report to the Con23 gress monthly on the status of the rulemakings and the 

24 reasons for the failure to comply with the statutory dead25 lines. 


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1 SEC. 45. STUDY ON PRIVATE INSURANCE MARKET, COMMU2 NITY PARTICIPATION IN THE NATIONAL 

3 FLOOD INSURANCE PROGRAM, AND THE RE4 GIONALIZATION OF THE NATIONAL FLOOD 

5 INSURANCE PROGRAM. 

6 (a) STUDY.—The Comptroller General shall conduct 

7 a study on— 

8 (1) ways that the private insurance market can 

9 contribute to insuring against flood damage; 

10 (2) the impact on the National Flood Insurance 

11 Program if communities decide not to participate in 

12 the Program; and 

13 (3) the feasibility of regionalizing the National 

14 Flood Insurance Program and ensuring that there is 

15 no cross-subsidization between regions under such 

16 Program. 

17 (b) REPORT.—Not later than one year after the date 

18 of the enactment of this Act, the Comptroller General shall 

19 submit to Congress a report containing the results of the 

20 study conducted under subsection (a). 

21 SEC. 46. ETHICS COMPLIANCE. 

22 All funds authorized under this Act or any amend23 ment made by this Act shall be expended in a manner 

24 that is consistent with the manual on Standards of Ethical 

25 Conduct for Employees of the Executive Branch. 

Æ 


pwalker on DSKD5P82C1PROD with BILLS