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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1026 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Flood Insurance 
Reform Priorities Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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 
                            flood-protection 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.
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.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) since the enactment of National Flood Insurance Act of 
        1968, the national flood insurance program has been the primary 
        source of reliable, reasonably priced, flood insurance coverage 
        for millions of American homes and businesses;
            (2) today over 5,500,000 homes and businesses in the United 
        States rely on the national flood insurance program to provide 
        a degree of financial security;
            (3) although participation in the national flood insurance 
        program has, in the past, largely been limited to properties 
        required to participate in the program because of the program's 
        mandatory purchase requirement for properties in special flood 
        hazard areas with loans from federally regulated lenders, 
        recent annual and extraordinary flooding has resulted in the 
        program enjoying its highest voluntary participation since the 
        establishment of the mandatory flood insurance purchase 
        requirement;
            (4) several years of below-average flood claims losses and 
        increased voluntary participation in the national flood 
        insurance program have allowed the program to fully service the 
        debt incurred following Hurricanes Katrina and Rita and allowed 
        the program to pay $598,000,000 of the principal of that 
        outstanding debt;
            (5) though significant reforms are needed to further 
        improve the financial outlook of the national flood insurance 
        program, long-term and reliable authorization of the program is 
        an essential element to stabilizing the already fragile United 
        States housing market;
            (6) increased flooding in areas outside designated special 
        flood hazard areas prompted the Executive and the Congress in 
        2002 to begin calling for the national flood insurance program 
        to develop and disseminate revised, updated flood insurance 
        rate maps that reflect the real risk of flooding for properties 
        not previously identified as being located within a special 
        flood hazard area;
            (7) dissemination of accurate, up-to-date, flood-risk 
        information remains a primary goal of the national flood 
        insurance program and such information should be disseminated 
        as soon as such information is collected and available;
            (8) communities should be encouraged to make their 
        residents aware of updated flood-risk data while communities 
        are assessing and incorporating updated flood-risk data into 
        long-term community planning;
            (9) the maximum coverage limits for flood insurance 
        policies should be increased to reflect inflation and the 
        increased cost of housing; and
            (10) phasing out flood insurance premium subsidies 
        currently extended to vacation homes, second homes, and 
        commercial properties would result in significant average 
        annual savings to the national flood insurance program.
    (b) Purposes.--The purposes of this Act are--
            (1) to identify priorities essential to the reform and 
        ongoing stable functioning of the national flood insurance 
        program;
            (2) to increase incentives for homeowners and communities 
        to participate in the national flood insurance program and to 
        improve oversight to ensure better accountability of the 
        national flood insurance program and the Federal Emergency 
        Management Agency; and
            (3) to increase awareness of homeowners of flood risks and 
        improve the information regarding such risks provided to 
        homeowners.

SEC. 3. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

    (a) Program Extension.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
``September 30, 2011'' and inserting ``September 30, 2016''.
    (b) Financing.--Section 1309(a) of such Act (42 U.S.C. 4016(a)) is 
amended by striking ``September 30, 2011'' and inserting ``September 
30, 2016''.
    (c) Extension of Pilot Program for Mitigation of Severe Repetitive 
Loss Properties.--Section 1361A of the National Flood Insurance Act of 
1968 (42 U.S.C. 4102a) is amended--
            (1) in subsection (k)(1), by striking ``2005, 2006, 2007, 
        2008, and 2009'' and inserting ``2012, 2013, 2014, 2015, and 
        2016''; and
            (2) by striking subsection (l).

SEC. 4. MAXIMUM COVERAGE LIMITS.

    Subsection (b) of section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013(b)) is amended--
            (1) in paragraph (2), by striking ``$250,000'' and 
        inserting ``$335,000'';
            (2) in paragraph (3), by striking ``$100,000'' and 
        inserting ``$135,000''; and
            (3) in paragraph (4)--
                    (A) by striking ``$500,000'' each place such term 
                appears and inserting ``$670,000''; and
                    (B) by inserting before ``; and'' the following: 
                ``; except that, in the case of any nonresidential 
                property that is a structure containing more than one 
                dwelling unit that is made available for occupancy by 
                rental (notwithstanding the provisions applicable to 
                the determination of the risk premium rate for such 
                property), additional flood insurance in excess of such 
                limits shall be made available to every insured upon 
                renewal and every applicant for insurance so as to 
                enable any such insured or applicant to receive 
                coverage up to a total amount that is equal to the 
                product of the total number of such rental dwelling 
                units in such property and the maximum coverage limit 
                per dwelling unit specified in paragraph (2); except 
                that in the case of any such multi-unit, nonresidential 
                rental property that is a pre-FIRM structure (as such 
                term is defined in section 578(b) of the National Flood 
                Insurance Reform Act of 1994 (42 U.S.C. 4014 note)), 
                the risk premium rate for the first $500,000 of 
                coverage shall be determined in accordance with section 
                1307(a)(2) and the risk premium rate for any coverage 
                in excess of such amount shall be determined in 
                accordance with section 1307(a)(1)''.

SEC. 5. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDENTIAL PROPERTIES, NON-
              PRIMARY RESIDENCES, SEVERE REPETITIVE LOSS PROPERTIES, 
              AND PROPERTIES SUBSTANTIALLY DAMAGED OR IMPROVED.

    (a) In General.--Section 1308(c) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4015(c)) is amended--
            (1) by redesignating paragraph (2) as paragraph (6); and
            (2) by inserting after paragraph (1) the following new 
        paragraphs:
            ``(2) Nonresidential properties.--Any nonresidential 
        property, which term shall not include any multifamily rental 
        property that consists of four or more dwelling units.
            ``(3) Non-primary residences.--Any residential property 
        that is not the primary residence of any individual, including 
        the owner of the property or any other individual who resides 
        in the property as a tenant.
            ``(4) Severe repetitive loss properties.--Any severe 
        repetitive loss property, as such term is defined in section 
        1361A(b), that is so designated as such as a result of losses 
        occurring on or after the date of the enactment of the Flood 
        Insurance Reform Priorities Act of 2011.
            ``(5) Properties substantially damaged or substantially 
        improved.--Any property that, on or after the date of the 
        enactment of the Flood Insurance Reform and Priorities Act of 
        2011, has experienced or sustained--
                    ``(A) substantial damage exceeding 50 percent of 
                the fair market value of such property; or
                    ``(B) substantial improvement exceeding 30 percent 
                of the fair market value of such property.''.
    (b) Technical Amendments.--Section 1308 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015) is amended--
            (1) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``the limitations provided under paragraphs 
                (1) and (2)'' and inserting ``subsection (e)''; and
                    (B) in paragraph (1), by striking ``, except'' and 
                all that follows through ``subsection (e)''; and
            (2) in subsection (e), by striking ``paragraph (2) or (3)'' 
        and inserting ``paragraph (6)''.
    (c) Effective Date and Transition.--
            (1) Effective date.--The amendments made by subsections (a) 
        and (b) shall apply beginning upon the expiration of the 3-year 
        period that begins on the date of the enactment of this Act, 
        except as provided in paragraph (2) of this subsection.
            (2) Transition for properties covered by flood insurance 
        upon effective date.--
                    (A) Increase of rates over time.--In the case of 
                any property described in paragraph (2), (3), (4), or 
                (5) of section 1308(c) of the National Flood Insurance 
                Act of 1968, as amended by subsection (a) of this 
                section, that, as of the effective date under paragraph 
                (1) of this subsection, is covered under a policy for 
                flood insurance made available under the national flood 
                insurance program for which the chargeable premium 
                rates are less than the applicable estimated risk 
                premium rate under section 1307(a)(1) for the area in 
                which the property is located, the Director of the 
                Federal Emergency Management Agency shall increase the 
                chargeable premium rates for such property over time to 
                such applicable estimated risk premium rate under 
                section 1307(a)(1).
                    (B) Annual increase.--Such increase shall be made 
                by increasing the chargeable premium rates for the 
                property (after application of any increase in the 
                premium rates otherwise applicable to such property), 
                once during the 12-month period that begins upon the 
                effective date under paragraph (1) of this subsection 
                and once every 12 months thereafter until such increase 
                is accomplished, by 20 percent (or such lesser amount 
                as may be necessary so that the chargeable rate does 
                not exceed such applicable estimated risk premium rate 
                or to comply with subparagraph (C)).
                    (C) Properties subject to phase-in and annual 
                increases.--In the case of any pre-FIRM property (as 
                such term is defined in section 578(b) of the National 
                Flood Insurance Reform Act of 1974), the aggregate 
                increase, during any 12-month period, in the chargeable 
                premium rate for the property that is attributable to 
                this paragraph or to an increase described in section 
                1308(e) of the National Flood Insurance Act of 1968 may 
                not exceed 20 percent.
                    (D) Full actuarial rates.--The provisions of 
                paragraphs (2), (3), (4), and (5) of such section 
                1308(c) shall apply to such a property upon the 
                accomplishment of the increase under this paragraph and 
                thereafter.

SEC. 6. 5-YEAR DELAY IN EFFECTIVE DATE OF MANDATORY PURCHASE 
              REQUIREMENT FOR NEW FLOOD HAZARD AREAS.

    (a) In General.--Section 102 of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4012a) is amended by adding at the end the following 
new subsections:
    ``(i) Delayed Effective Date of Mandatory Purchase Requirement for 
New Flood Hazard Areas.--
            ``(1) In general.--In the case of any area that was not 
        previously designated as an area having special flood hazards 
        and that, pursuant to any issuance, revision, updating, or 
        other change in flood insurance maps that takes effect on or 
        after September 30, 2007, becomes designated as an area having 
        special flood hazards, if each State and local government 
        having jurisdiction over any portion of the geographic area has 
        complied with paragraph (2), such designation shall not take 
        effect for purposes of subsection (a), (b), or (e) of this 
        section, or section 202(a) of this Act, until the expiration of 
        the 5-year period beginning upon the date that such maps, as 
        issued, revised, update, or otherwise changed, become 
        effective.
            ``(2) Notice requirements.--A State or local government 
        shall be considered to have complied with this paragraph with 
        respect to any geographic area described in paragraph (1) only 
        if the State or local government has, before the effective date 
        of the issued, revised, updated, or changed maps, and in 
        accordance with such standards as shall be established by the 
        Director--
                    ``(A) developed an evacuation plan to be 
                implemented in the event of flooding in such portion of 
                the geographic area; and
                    ``(B) developed and implemented an outreach and 
                communication plan to advise occupants in such portion 
                of the geographic area of potential flood risks, 
                appropriate evacuation routes under the evacuation plan 
                referred to in subparagraph (A), the opportunity to 
                purchase flood insurance, and the consequences of 
                failure to purchase flood insurance.
            ``(3) Rule of construction.--Nothing in paragraph (1) may 
        be construed to affect the applicability of a designation of 
        any area as an area having special flood hazards for purposes 
        of the availability of flood insurance coverage, criteria for 
        land management and use, notification of flood hazards, 
        eligibility for mitigation assistance, or any other purpose or 
        provision not specifically referred to in paragraph (1).
    ``(j) Availability of Preferred Risk Rating Method Premiums.--The 
preferred risk rate method premium shall be available for flood 
insurance coverage for properties located in areas referred to in 
subsection (i)(1) and during the time period referred to in subsection 
(i)(1).''.
    (b) Conforming Amendment.--The second sentence of subsection (h) of 
section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101(h)) is amended by striking ``Such'' and inserting ``Except for 
notice regarding a change described in section 102(i)(1) of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a(i)(1)), such''.
    (c) No Refunds.--Nothing in this section or the amendments made by 
this section may be construed to authorize or require any payment or 
refund for flood insurance coverage purchased for any property that 
covered any period during which such coverage is not required for the 
property pursuant to the applicability of the amendment made by 
subsection (a).

SEC. 7. 5-YEAR PHASE-IN OF FLOOD INSURANCE RATES FOR NEWLY MAPPED 
              AREAS.

    (a) In General.--Section 1308 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015), as amended by the preceding provisions of 
this Act, is further amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), by inserting ``or notice'' after ``prescribe by 
        regulation'';
            (2) in subsection (c), by inserting ``and subsection (g)'' 
        before the first comma; and
            (3) by adding at the end the following new subsection:
    ``(g) 5-Year Phase-In of Flood Insurance Rates for Newly Mapped 
Areas.--Notwithstanding any other provision of law relating to 
chargeable risk premium rates for flood insurance coverage under this 
title, in the case of any area that was not previously designated as an 
area having special flood hazards and that, pursuant to any issuance, 
revision, updating, or other change in flood insurance maps, becomes 
designated as such an area, during the 5-year period that begins upon 
the later of (A) the expiration of the period referred to in section 
102(i)(1) of the Flood Disaster Protection Act of 1973 with respect to 
such area, or (B) the expiration of any period during which such area 
is eligible for any reason for preferred risk rate method premiums for 
flood insurance coverage, the chargeable premium rate for flood 
insurance under this title with respect to any property that is located 
within such area shall be--
            ``(1) for the first year of such 5-year period, 20 percent 
        of the chargeable risk premium rate otherwise applicable under 
        this title to the property;
            ``(2) for the second year of such 5-year period, 40 percent 
        of the chargeable risk premium rate otherwise applicable under 
        this title to the property;
            ``(3) for the third year of such 5-year period, 60 percent 
        of the chargeable risk premium rate otherwise applicable under 
        this title to the property;
            ``(4) for the fourth year of such 5-year period, 80 percent 
        of the chargeable risk premium rate otherwise applicable under 
        this title to the property; and
            ``(5) for the fifth year of such 5-year period, 100 percent 
        of the chargeable risk premium rate otherwise applicable under 
        this title to the property.''.
    (b) Regulation or Notice.--The Administrator of the Federal 
Emergency Management Agency shall issue an interim final rule or notice 
to implement this section and the amendments made by this section as 
soon as practicable after the date of the enactment of this Act.

SEC. 8. INCREASE IN ANNUAL LIMITATION ON PREMIUM INCREASES.

    Section 1308(e) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(e)) is amended by striking ``10 percent'' and inserting 
``20 percent''.

SEC. 9. CONSIDERATION OF CONSTRUCTION, RECONSTRUCTION, AND IMPROVEMENT 
              OF FLOOD PROTECTION SYSTEMS IN DETERMINATION OF FLOOD 
              INSURANCE RATES.

    (a) In General.--Section 1307 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4014) is amended--
            (1) in subsection (e)--
                    (A) in the first sentence, by striking 
                ``construction of a flood protection system'' and 
                inserting ``construction, reconstruction, or 
                improvement of a flood protection system (without 
                respect to the level of Federal investment or 
                participation)''; and
                    (B) in the second sentence--
                            (i) by striking ``construction of a flood 
                        protection system'' and inserting 
                        ``construction, reconstruction, or improvement 
                        of a flood protection system''; and
                            (ii) by inserting ``based on the present 
                        value of the completed system'' after ``has 
                        been expended''; and
            (2) in subsection (f)--
                    (A) in the first sentence in the matter preceding 
                paragraph (1), by inserting ``(without respect to the 
                level of Federal investment or participation)'' before 
                the period at the end;
                    (B) in the third sentence in the matter preceding 
                paragraph (1), by inserting ``, whether coastal or 
                riverine,'' after ``special flood hazard''; and
                    (C) in paragraph (1), by striking ``a Federal 
                agency in consultation with the local project sponsor'' 
                and inserting ``the entity or entities that own, 
                operate, maintain, or repair such system''.
    (b) Regulations.--The Administrator of the Federal Emergency 
Management Agency shall promulgate regulations to implement this 
section and the amendments made by this section as soon as practicable, 
but not more than 18 months after the date of the enactment of this 
Act. Subsection (c) may not be construed to annul, alter, affect, 
authorize any waiver of, or establish any exception to, the requirement 
under the preceding sentence.
    (c) Implementation.--The Administrator of the Federal Emergency 
Management Agency shall implement this section and the amendments made 
by this section in a manner that will not materially weaken the 
financial position of the national flood insurance program or increase 
the risk of financial liability to Federal taxpayers.

SEC. 10. DISCOUNTED FLOOD INSURANCE RATES FOR PROPERTIES PROTECTED BY A 
              FLOOD-PROTECTION SYSTEM FROM LESS THAN A 100-YEAR 
              FREQUENCY FLOOD.

    Section 1307 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4014) is amended by adding at the end the following new subsection:
    ``(g) Except as provided in subsection (f) and notwithstanding any 
other provision of law, flood insurance coverage shall be made 
available for a property that the Director determines is protected by a 
flood-protection system that does not provide protection against a 100-
year frequency flood at premium rates that reflect a discount for the 
actual protection against flood risk afforded by such flood-protection 
system.''.

SEC. 11. TREATMENT OF CERTAIN FLOOD PROTECTION PROJECTS.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new subsection:
    ``(h) Treatment of Certain Flood Protection Projects.--
            ``(1) Inapplicability of mandatory purchase requirement; 
        premium rates.--Notwithstanding any other provision of law, 
        upon full completion, as designed, of a flood protection system 
        that was intended to provide flood protection with respect to a 
        covered area, such covered area--
                    ``(A) shall not be considered to be an area having 
                special flood hazards for purposes of this Act or 
                subsections (a), (b), or (e) of section 102, or section 
                202(a) of the Flood Disaster Protection Act of 1973; 
                and
                    ``(B) shall be eligible for flood insurance under 
                this Act, if and to the extent that such area is 
                eligible for such insurance under the other provisions 
                of this Act, at premium rates not exceeding those that 
                would be applicable under this section if the flood 
                protection system referred to in paragraph (2) for such 
                area had been completed and accredited as providing 
                protection from floods at the level that the system was 
                designed to provide (before construction, 
                reconstruction, or improvement of the system, as 
                applicable, began).
        The flood insurance rate maps shall indicate, for each covered 
        area, the status of the area under subparagraphs (A) and (B).
            ``(2) Covered area.--For purposes of this subsection, a 
        covered area is an area that was intended to be protected by a 
        flood protection system--
                    ``(A)(i) for which, as of April 15, 2010--
                            ``(I) construction, reconstruction, or 
                        improvement has not been completed;
                            ``(II) adequate progress, within the 
                        meaning of section 1307(e), has been made on 
                        such construction, reconstruction, or 
                        improvement; and
                            ``(III) is in an area having special flood 
                        hazards; or
                    ``(ii) for which, as of such date--
                            ``(I) construction, reconstruction, or 
                        improvement has been completed;
                            ``(II) a determination regarding 
                        accreditation has not been made; and
                            ``(III) is in an area having special flood 
                        hazards;
                    ``(B) that was designed to provide protection for 
                at least the 100-year frequency flood; and
                    ``(C) that has been determined, pursuant to 
                waterflow data or other scientific information of a 
                Federal agency obtained after, or that has changed 
                since, commencement of construction, reconstruction, or 
                improvement, will not provide protection from floods at 
                the level referred to in subparagraph (B).''.

SEC. 12. PROHIBITION OF EXTENSION OF SUBSIDIZED RATES TO LAPSED 
              POLICIES.

    Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4015), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new subsection:
    ``(i) Prohibition of Extension of Subsidized Rates to Lapsed 
Policies.--The Director shall not provide flood insurance coverage 
under this title to any prospective insured at a rate less than the 
applicable estimated risk premium rates for the area (or subdivision 
thereof) for any policy under the flood insurance program that has 
lapsed in coverage, as a result of the deliberate choice of the holder 
of such policy.''.

SEC. 13. NOTIFICATION TO HOMEOWNERS REGARDING MANDATORY PURCHASE 
              REQUIREMENT APPLICABILITY AND RATE PHASE-INS.

    Section 201 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4105) is amended by adding at the end the following new subsection:
    ``(f) Annual Notification.--The Director, in consultation with 
affected communities, shall establish and carry out a plan to notify 
residents of areas having special flood hazards, on an annual basis--
            ``(1) that they reside in such an area;
            ``(2) of the geographical boundaries of such area;
            ``(3) of whether section 1308(h) of the National Flood 
        Insurance Act of 1968 applies to properties within such area;
            ``(4) of the provisions of section 102 requiring purchase 
        of flood insurance coverage for properties located in such an 
        area, including the date on which such provisions apply with 
        respect to such area, taking into consideration section 102(i); 
        and
            ``(5) of a general estimate of what similar homeowners in 
        similar areas typically pay for flood insurance coverage, 
        taking into consideration section 1308(g) of the National Flood 
        Insurance Act of 1968.''.

SEC. 14. COMMUNITY OUTREACH PLAN FOR UPDATING FLOODPLAIN AREAS AND 
              FLOOD-RISK ZONES.

    The Administrator of the Federal Emergency Management Agency shall, 
not later than the expiration of the 60-day period beginning upon the 
date of the enactment of this Act, submit to the Congress a community 
outreach plan for the updating of floodplain areas and flood-risk zones 
under section 1360(f) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4101(f)).

SEC. 15. NOTIFICATION OF ESTABLISHMENT OF FLOOD ELEVATIONS.

    Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101) is amended by adding at the end the following new subsection:
    ``(l) Notification to Members of Congress of Map Modernization.--
Upon any revision or update of any floodplain area or flood-risk zone 
pursuant to subsection (f), any decision pursuant to subsection (f)(1) 
that such revision or update is necessary, any issuance of preliminary 
maps for such revision or updating, or any other significant action 
relating to any such revision or update, the Director shall notify the 
Senators for each State affected, and each Member of the House of 
Representatives for each congressional district affected, by such 
revision or update in writing of the action taken.''.

SEC. 16. COVERAGE FOR ADDITIONAL LIVING EXPENSES AND BUSINESS 
              INTERRUPTION.

    Subsection (b) of section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013) is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5)--
                    (A) by inserting ``pursuant to paragraph (2), (3), 
                or (4)'' after ``any flood insurance coverage''; and
                    (B) by striking the period at the end and inserting 
                a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(6) in the case of any residential property, each renewal 
        or new contract for flood insurance coverage shall provide not 
        less than $1,000 aggregate liability per dwelling unit for any 
        necessary increases in living expenses incurred by the insured 
        when losses from a flood make the residence unfit to live in, 
        which coverage shall be available only at chargeable rates that 
        are not less than the estimated premium rates for such coverage 
        determined in accordance with section 1307(a)(1);
            ``(7) in the case of any residential property, optional 
        coverage for additional living expenses described in paragraph 
        (6) shall be made available to every insured upon renewal and 
        every applicant in excess of the limits provided in paragraph 
        (6) in such amounts and at such rates as the Director shall 
        establish, except that such chargeable rates shall not be less 
        than the estimated premium rates for such coverage determined 
        in accordance with section 1307(a)(1); and
            ``(8) in the case of any commercial property or other 
        residential property, including multifamily rental property, 
        optional coverage for losses resulting from any partial or 
        total interruption of the insured's business caused by damage 
        to, or loss of, such property from a flood shall be made 
        available to every insured upon renewal and every applicant, 
        except that--
                    ``(A) the Director may provide such coverage under 
                such terms, conditions, and requirements as the 
                Director considers appropriate to meet the needs of 
                small businesses while complying with the requirement 
                under subparagraph (C); and
                    ``(B) any such coverage shall be made available 
                only at chargeable rates that are not less than the 
                estimated premium rates for such coverage determined in 
                accordance with section 1307(a)(1).''.

SEC. 17. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE DATE OF POLICIES.

    Section 1306(c)(2)(A) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4013(c)(2)(A)) is amended by inserting before the semicolon 
the following: ``or is in connection with the purchase or other 
transfer of the property for which the coverage is provided (regardless 
of whether a loan is involved in the purchase or transfer transaction), 
but only when such initial purchase of coverage is made not later 30 
days after such making, increasing, extension, or renewal of the loan 
or not later than 30 days after such purchase or other transfer of the 
property, as applicable''.

SEC. 18. MINIMUM DEDUCTIBLES FOR CLAIMS.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019) is amended--
            (1) by striking ``The Director is'' and inserting the 
        following: ``(a) In General.--The Director is''; and
            (2) by adding at the end the following:
    ``(b) Minimum Annual Deductibles.--
            ``(1) Pre-FIRM properties.--For any structure that is 
        covered by flood insurance under this title, and on which 
        construction or substantial improvement occurred on or before 
        December 31, 1974, or before the effective date of an initial 
        flood insurance rate map published by the Director under 
        section 1360 for the area in which such structure is located, 
        the minimum annual deductible for damage to or loss of such 
        structure shall be--
                    ``(A) $1,500, if the flood insurance coverage for 
                such structure covers loss of, or physical damage to, 
                such structure in an amount equal to or less than 
                $100,000; and
                    ``(B) $2,000, if the flood insurance coverage for 
                such structure covers loss of, or physical damage to, 
                such structure in an amount greater than $100,000.
            ``(2) Post-FIRM properties.--For any structure that is 
        covered by flood insurance under this title, and on which 
        construction or substantial improvement occurred after December 
        31, 1974, or after the effective date of an initial flood 
        insurance rate map published by the Director under section 1360 
        for the area in which such structure is located, the minimum 
        annual deductible for damage to or loss of such structure shall 
        be--
                    ``(A) $750, if the flood insurance coverage for 
                such structure covers loss of, or physical damage to, 
                such structure in an amount equal to or less than 
                $100,000; and
                    ``(B) $1,000, if the flood insurance coverage for 
                such structure covers loss of, or physical damage to, 
                such structure in an amount greater than $100,000.''.

SEC. 19. PAYMENT OF PREMIUMS IN INSTALLMENTS FOR RESIDENTIAL 
              PROPERTIES.

    Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4013) is amended by adding at the end the following new subsection:
    ``(d) Payment of Premiums in Installments for Residential 
Properties.--In addition to any other terms and conditions under 
subsection (a), such regulations shall provide that, in the case of any 
residential property, premiums for flood insurance coverage for such 
property may be paid in installments.''.

SEC. 20. TERMINATION OF FORCE-PLACED INSURANCE.

    Section 102(e) of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a(e)) is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (5) and 6), respectively; and
            (2) by adding inserting after paragraph (2) the following 
        new paragraphs:
            ``(3) Termination of force-placed insurance.--Within 15 
        days of receipt by the lender or servicer of a confirmation of 
        a borrower's existing flood insurance coverage, the lender or 
        servicer shall--
                    ``(A) terminate the force-placed insurance; and
                    ``(B) refund to the borrower all force-placed 
                insurance premiums paid by the borrower during any 
                period during which the borrower's flood insurance 
                coverage and the force-placed flood insurance coverage 
                were each in effect, and any related fees charged to 
                the borrower with respect to the force-placed insurance 
                during such period.
            ``(4) Sufficiency of demonstration.--A lender or servicer 
        for a loan shall accept any reasonable form of written 
        confirmation from a borrower of existing flood insurance 
        coverage, which shall include the existing flood insurance 
        policy number along with the identity of, and contact 
        information for, the insurance company or agent.''.

SEC. 21. ENFORCEMENT.

    Section 102(f) of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a(f)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)(iii), by striking ``or'' at 
                the end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) in connection with the making, increasing, 
                extending, servicing, or renewing of any loan, 
                requiring the purchase of flood insurance coverage 
                under the National Flood Insurance Act of 1968, or 
                purchasing such coverage pursuant to subsection (e)(2), 
                in an amount in excess of the minimum amount required 
                under subsections (a) and (b) of this section.'';
            (2) in paragraph (5)--
                    (A) in the first sentence, by striking ``$350'' and 
                inserting ``$2,000''; and
                    (B) in the last sentence, by striking ``$100,000'' 
                and inserting ``$1,000,000; except that such limitation 
                shall not apply to a regulated lending institution or 
                enterprise for a calendar year if, in any three (or 
                more) of the five calendar years immediately preceding 
                such calendar year, the total amount of penalties 
                assessed under this subsection against such lending 
                institution or enterprise was $1,000,000''; and
            (3) in paragraph (6), by adding after the period at the end 
        the following: ``No penalty may be imposed under this 
        subsection on a regulated lending institution or enterprise 
        that has made a good faith effort to comply with the 
        requirements of the provisions referred to in paragraph (2) or 
        for any non-material violation of such requirements.''.

SEC. 22. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS INSURANCE.

    The National Flood Insurance Act of 1968 is amended by inserting 
after section 1308 (42 U.S.C. 4015) the following new section:

``SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS 
              INSURANCE.

    ``(a) In General.--The Director shall, upon entering into a 
contract for flood insurance coverage under this title for any 
property--
            ``(1) provide to the insured sufficient copies of the 
        notice developed pursuant to subsection (b); and
            ``(2) require the insured to provide a copy of the notice, 
        or otherwise provide notification of the information under 
        subsection (b) in the manner that the manager or landlord deems 
        most appropriate, to each such tenant and to each new tenant 
        upon commencement of such a tenancy.
    ``(b) Notice.--Notice to a tenant of a property in accordance with 
this subsection is written notice that clearly informs a tenant--
            ``(1) whether the property is located in an area having 
        special flood hazards;
            ``(2) that flood insurance coverage is available under the 
        national flood insurance program under this title for contents 
        of the unit or structure leased by the tenant;
            ``(3) of the maximum amount of such coverage for contents 
        available under this title at that time; and
            ``(4) of where to obtain information regarding how to 
        obtain such coverage, including a telephone number, mailing 
        address, and Internet site of the Director where such 
        information is available.''.

SEC. 23. GRANTS FOR DIRECT FUNDING OF MITIGATION ACTIVITIES FOR 
              INDIVIDUAL REPETITIVE CLAIMS PROPERTIES.

    (a) Direct Grants to Owners.--Section 1323 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4030) is amended--
            (1) in the section heading, by inserting ``direct'' before 
        ``grants''; and
            (2) in the matter in subsection (a) that precedes paragraph 
        (1)--
                    (A) by inserting ``, to owners of such 
                properties,'' before ``for mitigation actions''; and
                    (B) by striking ``1'' and inserting ``two''.
    (b) Availability of Funds.--Paragraph (9) of section 1310(a) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended by 
inserting ``which shall remain available until expended,'' after ``any 
fiscal year,''.

SEC. 24. FLOOD INSURANCE OUTREACH.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.), as amended by the preceding provisions of this Act, is 
further amended by adding at the end the following new section:

``SEC. 1326. GRANTS FOR OUTREACH TO PROPERTY OWNERS AND RENTERS.

    ``(a) In General.--The Director may, to the extent amounts are made 
available pursuant to subsection (i), make grants to local governmental 
agencies responsible for floodplain management activities (including 
such agencies of Indians tribes, as such term is defined in section 4 
of the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4103)) in communities that participate in the national 
flood insurance program under this title, for use by such agencies to 
carry out outreach activities to encourage and facilitate the purchase 
of flood insurance protection under this Act by owners and renters of 
properties in such communities and to promote educational activities 
that increase awareness of flood risk reduction.
    ``(b) Outreach Activities.--Amounts from a grant under this section 
shall be used only for activities designed to--
            ``(1) identify owners and renters of properties in 
        communities that participate in the national flood insurance 
        program, including owners of residential and commercial 
        properties;
            ``(2) notify such owners and renters when their properties 
        become included in, or when they are excluded from, an area 
        having special flood hazards and the effect of such inclusion 
        or exclusion on the applicability of the mandatory flood 
        insurance purchase requirement under section 102 of the Flood 
        Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such 
        properties;
            ``(3) educate such owners and renters regarding the flood 
        risk and reduction of this risk in their community, including 
        the continued flood risks to areas that are no longer subject 
        to the flood insurance mandatory purchase requirement;
            ``(4) educate such owners and renters regarding the 
        benefits and costs of maintaining or acquiring flood insurance, 
        including, where applicable, lower-cost preferred risk policies 
        under this title for such properties and the contents of such 
        properties;
            ``(5) encouraging such owners and renters to maintain or 
        acquire such coverage;
            ``(6) notify such owners of where to obtain information 
        regarding how to obtain such coverage, including a telephone 
        number, mailing address, and Internet site of the Director 
        where such information is available; and
            ``(7) educate local real estate agents in communities 
        participating in the national flood insurance program regarding 
        the program and the availability of coverage under the program 
        for owners and renters of properties in such communities, and 
        establish coordination and liaisons with such real estate 
        agents to facilitate purchase of coverage under this Act and 
        increase awareness of flood risk reduction.
    ``(c) Cost Sharing Requirement.--
            ``(1) In general.--In any fiscal year, the Director may not 
        provide a grant under this section to a local governmental 
        agency in an amount exceeding 3 times the amount that the 
        agency certifies, as the Director shall require, that the 
        agency will contribute from non-Federal funds to be used with 
        grant amounts only for carrying out activities described in 
        subsection (b).
            ``(2) Non-federal funds.--For purposes of this subsection, 
        the term `non-Federal funds' includes State or local government 
        agency amounts, in-kind contributions, any salary paid to staff 
        to carry out the eligible activities of the grant recipient, 
        the value of the time and services contributed by volunteers to 
        carry out such services (at a rate determined by the Director), 
        and the value of any donated material or building and the value 
        of any lease on a building.
    ``(d) Administrative Cost Limitation.--Notwithstanding subsection 
(b), the Director may use not more than 5 percent of amounts made 
available under subsection (i) to cover salaries, expenses, and other 
administrative costs incurred by the Director in making grants and 
provide assistance under this section.
    ``(e) Application and Selection.--
            ``(1) In general.--The Director shall provide for local 
        governmental agencies described in subsection (a) to submit 
        applications for grants under this section and for competitive 
        selection, based on criteria established by the Director, of 
        agencies submitting such applications to receive such grants.
            ``(2) Selection considerations.--In selecting applications 
        of local government agencies to receive grants under paragraph 
        (1), the Director shall consider--
                    ``(A) the existence of a cooperative technical 
                partner agreement between the local governmental agency 
                and the Federal Emergency Management Agency;
                    ``(B) the history of flood losses in the relevant 
                area that have occurred to properties, both inside and 
                outside the special flood hazards zones, which are not 
                covered by flood insurance coverage;
                    ``(C) the estimated percentage of high-risk 
                properties located in the relevant area that are not 
                covered by flood insurance;
                    ``(D) demonstrated success of the local 
                governmental agency in generating voluntary purchase of 
                flood insurance;
                    ``(E) demonstrated technical capacity of the local 
                governmental agency for outreach to individual property 
                owners; and
                    ``(F) the number of flood-related major disaster or 
                emergency declarations made by the President with 
                respect to the relevant area under the Robert T. 
                Stafford Disaster Relief and Emergency Assistance Act 
                (42 U.S.C. 5121 et seq.) during the preceding five 
                years.
    ``(f) Direct Outreach by FEMA.--In each fiscal year that amounts 
for grants are made available pursuant to subsection (i), the Director 
may use not more than 50 percent of such amounts to carry out, and to 
enter into contracts with other entities to carry out, activities 
described in subsection (b) in areas that the Director determines have 
the most immediate need for such activities.
    ``(g) Coordination With Other Agencies.--A local governmental 
agency that receives a grant under this section, and an entity that 
receives amounts pursuant to subsection (f), may coordinate or contract 
with other agencies and entities having particular capacities, 
specialties, or experience with respect to certain populations or 
constituencies, including elderly or disabled families or persons, to 
carry out activities described in subsection (b) with respect to such 
populations or constituencies.
    ``(h) Reporting.--
            ``(1) Local governments.--Each local government agency that 
        receives a grant under this section, and each entity that 
        receives amounts pursuant to subsection (f), shall submit a 
        report to the Director, not later than 12 months after such 
        amounts are first received, which shall include such 
        information as the Director considers appropriate to describe 
        the activities conducted using such amounts and the effect of 
        such activities on the retention or acquisition of flood 
        insurance coverage.
            ``(2) Director.--The Director shall submit an annual 
        report, not later than December 31 of each year, to the 
        Committee on Financial Services of the House of Representatives 
        and the Committee on Banking, Housing, and Urban Affairs of the 
        Senate on the effectiveness of grants awarded under this 
        section to local government agencies, the activities conducted 
        using such grant amounts, and the effect of such activities on 
        the retention or acquisition of flood insurance coverage.
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated for grants under this section $50,000,000 for each of 
fiscal years 2012 through 2016.
    ``(j) Prohibition on Earmarks.--No amounts made available for 
grants under this section may be used for a Congressional earmark as 
defined in clause 9(e) of Rule XXI of the Rules of the House of 
Representatives.''.

SEC. 25. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF HURRICANE 
              SEASON.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4001 et seq.), as amended by the preceding provisions of this Act, is 
further amended by adding at the end the following new section:

``SEC. 1327. TREATMENT OF SWIMMING POOL ENCLOSURES OUTSIDE OF HURRICANE 
              SEASON.

    ``In the case of any property that is otherwise in compliance with 
the coverage and building requirements of the national flood insurance 
program, the presence of an enclosed swimming pool located at ground 
level or in the space below the lowest floor of a building after 
November 30 and before June 1 of any year shall have no effect on the 
terms of coverage or the ability to receive coverage for such building 
under the national flood insurance program established pursuant to this 
title, if the pool is enclosed with non-supporting breakaway walls.''.

SEC. 26. REQUIREMENTS RELATING TO WINDSTORM AND FLOOD.

    Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4081) is amended by adding at the end the following new subsection:
    ``(d) Requirements for Write-Your-Own Insurers Relating to 
Windstorm and Flood.--
            ``(1) Written agreement.--The Director may not utilize the 
        facilities or services of any insurance company or other 
        insurer or entity to offer flood insurance coverage under this 
        title unless such company, insurer, or entity enters into a 
        written agreement with the Director that provides as follows:
                    ``(A) Prohibition on exclusion of wind damage 
                coverage.--The agreement shall prohibit the company, 
                insurer, or entity from including, in any policy 
                provided by the company or insurer for homeowners' 
                insurance coverage or coverage for damage from 
                windstorms, any provision that excludes coverage for 
                wind or other damage solely because flooding also 
                contributed to damage to the insured property.
                    ``(B) Fiduciary responsibility.--The agreement 
                shall provide that the company, insurer, or entity--
                            ``(i) has a fiduciary duty with respect to 
                        the Federal taxpayers;
                            ``(ii) in selling and servicing policies 
                        for flood insurance coverage under this title 
                        and adjusting claims under such coverage, will 
                        act in the best interests the national flood 
                        insurance program rather than in the interests 
                        of the company, insurer, or entity; and
                            ``(iii) will provide written guidance to 
                        each insurance agent and claims adjuster for 
                        the company, insurer, or entity that sets forth 
                        the terms of the agreement pursuant to 
                        subparagraph (A) and this subparagraph.
            ``(2) Requirements for adjustment of claims.--The Director 
        shall, in utilizing the facilities of any insurance company or 
        other insurer or entity pursuant to this section to offer flood 
        insurance coverage under this title, the Director shall provide 
        as follows:
                    ``(A) Approval of adjustment procedures.--No such 
                insurance company, other insurer, or entity may offer 
                flood insurance coverage under this title unless the 
                Director has approved, as meeting standards as the 
                Director shall establish, the procedures, protocols, 
                guidelines, standards, or instructions used by the 
                company, insurer, or entity in adjusting claims for 
                identifying, apportioning, quantifying, and 
                differentiating damage caused by flooding and damage 
                caused by wind.
                    ``(B) Treatment of wind and flood claims from same 
                event.--The Director shall require any insurance 
                company or other insurer or entity that, pursuant to 
                this section, provides flood insurance coverage under 
                this title for a property and that also provides 
                insurance coverage for the same property for losses 
                resulting from wind, when claims are made both for 
                damage resulting from flood and for damage resulting 
                from wind involved in a single event, to comply with 
                the following requirements:
                            ``(i) Contemporaneous adjustment.--The 
                        claims for damage to the property under the 
                        coverage under this title for losses from flood 
                        and under the coverage for losses from wind 
                        shall be adjusted contemporaneously.
                            ``(ii) Inclusions in flood claim file.--The 
                        insurance company, other insurer, or entity 
                        shall obtain and include in the file maintained 
                        with respect to any claim under the flood 
                        insurance coverage under this title, and make 
                        available to the Director upon request, the 
                        following information relating to the wind 
                        claim:
                                    ``(I) The amount paid on the claim 
                                and the date of such payment.
                                    ``(II) An explanation of rationale 
                                used by the company, insurer, or entity 
                                in determining which damage resulted 
                                from flood and which damage resulted 
                                from wind.
                                    ``(III) Copies of any photographs, 
                                witness statements, and other evidence 
                                related to the wind or flood claim.
                            ``(iii) Review.--The Director shall review 
                        the information obtained pursuant to clause 
                        (ii) to ensure that--
                                    ``(I) claims are paid under 
                                coverage under this title only for 
                                losses resulting from flood; and
                                    ``(II) in the adjusting the claims, 
                                the insurance company or other insurer 
                                or entity complied with procedures, 
                                protocols, guidelines, standards, or 
                                instructions for identifying, 
                                apportioning, quantifying, and 
                                differentiating damage caused by 
                                flooding and damage caused by wind that 
                                have been approved by the Director as 
                                meeting the standards established by 
                                the Director pursuant to subparagraph 
                                (A).
                            ``(iv) Payment under flood coverage when 
                        cause of loss cannot be determined.--If the 
                        insurance company or other insurer or entity 
                        determines that the loss claimed was caused by 
                        flooding or wind, but that the evidence is 
                        insufficient to differentiate the losses caused 
                        by flooding from those caused by wind, the 
                        company, insurer, or entity shall pay the claim 
                        under the flood insurance coverage for the 
                        property as if the entire loss were caused by 
                        flooding, and shall submit all information 
                        regarding the claim to the Director.
                            ``(v) FEMA determination and recovery.--In 
                        the case of any claim paid pursuant to clause 
                        (iv), the Director shall review the information 
                        related to the claim and determine, in 
                        accordance with procedures for making such a 
                        determination regarding such claims as the 
                        Director shall establish, the losses caused by 
                        wind. The Director shall seek to recover any 
                        portion of the losses that the Director 
                        determines were caused by wind from the 
                        insurance company or other insurer or entity 
                        that, pursuant to clause (iv), paid such losses 
                        as flood losses.''.

SEC. 27. NOTICE OF AVAILABILITY OF FLOOD INSURANCE AND ESCROW IN RESPA 
              GOOD FAITH ESTIMATE.

    Subsection (c) of section 5 of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2604(c)) is amended by adding at the 
end the following new sentence: ``Each such good faith estimate shall 
include the following conspicuous statements and information: (1) that 
flood insurance coverage for residential real estate is generally 
available under the national flood insurance program whether or not the 
real estate is located in an area having special flood hazards and 
that, to obtain such coverage, a home owner or purchaser should contact 
the national flood insurance program; (2) a telephone number and a 
location on the Internet by which a home owner or purchaser can contact 
the national flood insurance program; and (3) that the escrowing of 
flood insurance payments is required for many loans under section 
102(d) of the Flood Disaster Protection Act of 1973, and may be a 
convenient and available option with respect to other loans.''.

SEC. 28. AUTHORIZATION OF ADDITIONAL FEMA STAFF.

    Notwithstanding any other provision of law, the Director of the 
Federal Emergency Management Agency may employ such additional staff as 
may be necessary to carry out all of the responsibilities of the 
Director pursuant to this Act, the amendments made by this Act, and the 
national flood insurance program. There are authorized to be 
appropriated to Director such sums as may be necessary for costs of 
employing such additional staff.

SEC. 29. PLAN TO VERIFY MAINTENANCE OF FLOOD INSURANCE ON MISSISSIPPI 
              AND LOUISIANA PROPERTIES RECEIVING EMERGENCY SUPPLEMENTAL 
              FUNDS.

    The Secretary of Housing and Urban Development and the Director of 
the Federal Emergency Management Agency shall jointly develop and 
implement a plan to verify that persons receiving funds under the 
Homeowner Grant Assistance Program of the State of Mississippi or the 
Road Home Program of the State of Louisiana from amounts allocated to 
the State of Mississippi or the State of Louisiana, respectively, from 
the Community development fund under the Emergency Supplemental 
Appropriations Act to Address Hurricanes in the Gulf of Mexico and 
Pandemic Influenza, 2006 (Public Law 109-148) are maintaining flood 
insurance on the property for which such persons receive such funds as 
required by each such Program.

SEC. 30. FLOOD INSURANCE ADVOCATE.

    Chapter II of the National Flood Insurance Act of 1968 is amended 
by inserting after section 1330 (42 U.S.C. 4041) the following new 
section:

``SEC. 1330A. OFFICE OF THE FLOOD INSURANCE ADVOCATE.

    ``(a) Establishment of Position.--
            ``(1) In general.--There shall be in the Federal Emergency 
        Management Agency an Office of the Flood Insurance Advocate 
        which shall be headed by the National Flood Insurance Advocate. 
        The National Flood Insurance Advocate shall report directly to 
        the Director and shall, to the extent amounts are provided 
        pursuant to subsection (f), be compensated at the same rate as 
        the highest rate of basic pay established for the Senior 
        Executive Service under section 5382 of title 5, United States 
        Code, or, if the Director so determines, at a rate fixed under 
        section 9503 of such title.
            ``(2) Appointment.--The National Flood Insurance Advocate 
        shall be appointed by the Director, and without regard to the 
        provisions of title 5, United States Code, relating to 
        appointments in the competitive service or the Senior Executive 
        Service.
            ``(3) Qualifications.--An individual appointed under 
        paragraph (2) shall have a background in customer service as 
        well as insurance.
            ``(4) Staff.--To the extent amounts are provided pursuant 
        to subsection (f), the National Flood Insurance Advocate may 
        employ such personnel as may be necessary to carry out the 
        duties of the Office.
    ``(b) Functions of Office.--
            ``(1) In general.--It shall be the function of the Office 
        of the Flood Insurance Advocate to--
                    ``(A) assist insureds under the national flood 
                insurance program in resolving problems with the 
                Federal Emergency Management Agency relating to such 
                program;
                    ``(B) identify areas in which such insureds have 
                problems in dealings with the Agency relating to such 
                program;
                    ``(C) identify potential legislative, 
                administrative, or regulatory changes which may be 
                appropriate to mitigate such problems;
                    ``(D) assist communities and homeowners with 
                interpreting, implementing, and appealing floodplain 
                maps and floodplain map determinations;
                    ``(E) facilitate the sharing of the best-practices 
                of the Federal Emergency Management Agency amongst all 
                offices of the Agency with respect to the creation and 
                updating of floodplain maps;
                    ``(F) not less than one year after receipt of a 
                request from a community, perform an economic impact 
                analysis for such community on the economic impact of 
                floodplain maps and floodplain map determinations on 
                small businesses, lending, real estate development, and 
                other economic indicators within such community;
                    ``(G) establish a national arbitration panel 
                regarding flood map modernization, with panel members 
                consisting of experts in flood insurance, flood map 
                determination, real estate development, structural 
                engineering, and other such experts, including a 
                representative from the Federal Emergency Management 
                Administration, to allow individuals or communities 
                impacted by a flood map revision to challenge such a 
                revision; such panel may, under such terms and 
                conditions it may establish, temporarily suspend 
                implementation of a floodplain map pending such panel's 
                review of evidence submitted by such individuals or 
                communities as part of such challenge;
                    ``(H) establish a process under which scientific 
                and engineering data, including maps and an explanation 
                of how the Director makes a determination regarding a 
                map revision, will be made publicly available to any 
                interested individuals to be impacted by a flood map 
                revision;
                    ``(I) establish a process under which each 
                community to be impacted by a flood map revision will 
                be provided an open community forum to consult with and 
                ask questions of representatives of the Federal 
                Emergency Management Administration; and
                    ``(J) identify ways to assist communities in 
                efforts to fund the accreditation of flood protection 
                systems.
            ``(2) Annual reports.--
                    ``(A) Activities.--Not later than December 31 of 
                each calendar year, the National Flood Insurance 
                Advocate shall report to the Committee on Financial 
                Services of the House of Representatives and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate on the activities of the Office of the Flood 
                Insurance Advocate during the fiscal year ending during 
                such calendar year. Any such report shall contain full 
                and substantive analysis, in addition to statistical 
                information, and shall--
                            ``(i) identify the initiatives the Office 
                        of the Flood Insurance Advocate has taken on 
                        improving services for insureds under the 
                        national flood insurance program and 
                        responsiveness of the Federal Emergency 
                        Management Agency with respect to such program;
                            ``(ii) identify areas of the law or 
                        regulations relating to the national flood 
                        insurance program that impose significant 
                        compliance burdens on such insureds or the 
                        Federal Emergency Management Agency, including 
                        specific recommendations for remedying these 
                        problems; and
                            ``(iii) include such other information as 
                        the National Flood Insurance Advocate may deem 
                        advisable.
                    ``(B) Direct submission of report.--Each report 
                required under this paragraph shall be provided 
                directly to the committees identified in subparagraph 
                (A) without any prior review or comment from the 
                Director, the Secretary of Homeland Security, or any 
                other officer or employee of the Federal Emergency 
                Management Agency or the Department of Homeland 
                Security, or the Office of Management and Budget.
    ``(c) Funding.--Pursuant to section 1310(a)(4), the Director may 
use amounts from the National Flood Insurance Fund to fund the 
activities of the Office of the Flood Advocate in each of fiscal years 
2012 through 2017, except that the amount so used in each such fiscal 
year may not exceed $5,000,000 and shall remain available until 
expended. Notwithstanding any other provision of this title, amounts 
made available pursuant to this subsection shall not be subject to 
offsetting collections through premium rates for flood insurance 
coverage under this title.''.

SEC. 31. TREATMENT OF PREVIOUSLY MAPPED AREAS.

    Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101) is amended by adding at the end the following new subsection:
    ``(k) Treatment of Previously Mapped Areas.--If the Director issues 
a letter of map revision for an area or a portion of an area to correct 
an error in a recently issued flood insurance rate map and such letter 
results in the designation of such area as not having special flood 
hazards, the Director shall reexamine the designation of any areas 
bordering or abutting the area that was the subject of such letter if 
such areas are located within a special flood hazard area. The Director 
shall inform the community and residents within such area of the 
results of such examination no later than one year after the date of 
the initial letter of map revision.''.

SEC. 32. REMAPPING OF AREAS WITH IMPROVED LEVEES.

    Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4101) is amended by adding at the end the following new subsection:
    ``(l) Remapping of Areas With Improved Levees.--If at any time any 
community, any State, the Army Corps of Engineers, or any other entity 
improves any levee system that protects any area that is located in an 
area having special flood hazards and the Director determines that such 
improvement mitigates flood risk in a manner that eliminates the risk 
of flooding in the area, the Director shall--
            ``(1) revise and update the floodplain areas and flood risk 
        zones, and the flood insurance maps reflecting such areas and 
        zones, for the areas protected by such levee system so that any 
        requirement under the Flood Disaster Protection Act of 1973 for 
        mandatory purchase of flood insurance does not apply to such 
        area; and
            ``(2) make the updated maps and any information regarding 
        such updating available to the affected communities.''.

SEC. 33. APPEALS.

    (a) Television and Radio Announcement.--Section 1363 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4104) is amended--
            (1) in subsection (a), by inserting after 
        ``determinations'' by inserting the following: ``by notifying a 
        local television and radio station,''; and
            (2) in the first sentence of subsection (b), by inserting 
        before the period at the end the following: ``and shall notify 
        a local television and radio station at least once during the 
        same 10-day period''.
    (b) Applicability.--The amendments made by subsection (a) shall 
apply with respect to any flood elevation determination for any area in 
a community that has not, as of the date of the enactment of this Act, 
been issued a Letter of Final Determination for such determination 
under the flood insurance map modernization process.

SEC. 34. ELIGIBILITY OF PROPERTY DEMOLITION AND REBUILDING UNDER FLOOD 
              MITIGATION ASSISTANCE PROGRAM.

    (a) Flood Mitigation Assistance Program.--Section 1366(e)(5)(B) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4104c(e)(5)(B)) is 
amended by striking ``or floodproofing'' and inserting ``floodproofing, 
or demolition and rebuilding of properties to at least base flood 
elevation or greater, if required by any local ordinance''.
    (b) Sense of Congress.--It is the sense of Congress that section 
1366 of the Flood Insurance Act of 1968 (42 U.S.C. 4104c), as in effect 
on the day before the date of enactment of this Act, authorized the 
Administrator of the Federal Emergency Management Agency to consider 
property demolition and rebuilding as eligible activities under the 
Flood Mitigation Assistance Program. The purpose of the amendment made 
by subsection (a) is to clarify that such authority exists.

SEC. 35. STUDY REGARDING MANDATORY PURCHASE REQUIREMENT FOR NON-
              FEDERALLY RELATED LOANS.

    (a) In General.--The Comptroller General shall conduct a study to 
assess the impact, effectiveness, and feasibility of, and basis under 
the Constitution of the United States for, amending the provisions of 
the Flood Disaster Protection Act of 1973 regarding the properties that 
are subject to the mandatory flood insurance coverage purchase 
requirements under such Act to extend such requirements to any property 
that is located in any area having special flood hazards and which 
secures the repayment of a loan that is not described in paragraph (1), 
(2), or (3) of section 102(b) of such Act, and shall determine how best 
to administer and enforce such a requirement, taking into consideration 
other insurance purchase requirements under Federal and State law.
    (b) Report.--The Comptroller General shall submit a report to the 
Congress regarding the results and conclusions of the study under 
subsection (a) not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act.

SEC. 36. STUDY OF METHODS TO INCREASE FLOOD INSURANCE PROGRAM 
              PARTICIPATION BY LOW-INCOME FAMILIES AND FAMILIES IN 
              RURAL COMMUNITIES AND ON INDIAN RESERVATIONS.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study to identify and analyze potential methods, practices, 
and incentives that would increase the extent to which low-income 
families (as such term is defined in section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b))), families residing in rural 
communities, and families who reside on Indian reservations, that own 
residential properties located within areas having special flood 
hazards purchase flood insurance coverage for such properties under the 
national flood insurance program. In conducting the study, the 
Comptroller General shall analyze the effectiveness and costs of the 
various methods, practices, and incentives identified, including their 
effects on the national flood insurance program.
    (b) Report.--The Comptroller General shall submit to the Congress a 
report setting forth the conclusions of the study under this section 
not later than 12 months after the date of the enactment of this Act.

SEC. 37. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN MANAGEMENT 
              CRITERIA.

    Not later than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, the Administrator of the Federal 
Emergency Management Agency shall conduct a study and submit a report 
to the Committee on Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the Senate 
regarding the impact, effectiveness, and feasibility of amending 
section 1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4102) to include widely used and nationally recognized building codes 
as part of the floodplain management criteria developed under such 
section, and shall determine--
            (1) the regulatory, financial, and economic impacts of such 
        a building code requirement on homeowners, States and local 
        communities, local land use policies, and the Federal Emergency 
        Management Agency;
            (2) the resources required of State and local communities 
        to administer and enforce such a building code requirement;
            (3) the effectiveness of such a building code requirement 
        in reducing flood-related damage to buildings and contents;
            (4) the impact of such a building code requirement on the 
        actuarial soundness of the National Flood Insurance Program;
            (5) the effectiveness of nationally recognized codes in 
        allowing innovative materials and systems for flood-resistant 
        construction;
            (6) the feasibility and effectiveness of providing an 
        incentive in lower premium rates for flood insurance coverage 
        under such Act for structures meeting whichever of such widely 
        used and nationally recognized building code or any applicable 
        local building code provides greater protection from flood 
        damage;
            (7) the impact of such a building code requirement on rural 
        communities with different building code challenges than more 
        urban environments; and
            (8) the impact of such a building code requirement on 
        Indian reservations.

SEC. 38. STUDY ON REPAYING FLOOD INSURANCE DEBT.

    Not later than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, the Administrator of the Federal 
Emergency Management Agency shall submit a report to the Congress 
setting forth a plan for repaying within 10 years all amounts, 
including any amounts previously borrowed but not yet repaid, owed 
pursuant to clause (2) of subsection (a) of section 1309 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)(2)).

SEC. 39. STUDY REGARDING CERTAIN HARBOR AREAS.

    (a) Study.--The Administrator of the Federal Emergency Management 
Agency shall carry out a study to identify the impacts of the National 
Flood Insurance Program on harbor areas that are working waterfronts, 
which shall--
            (1) identify the models and assumptions used under such 
        program with respect to wave action in working waterfronts and 
        harbors;
            (2) determine whether these are the same models and 
        assumptions used for open or unprotected coast lines;
            (3) identify the assumptions used under such program in 
        modeling V-zones;
            (4) identify the underlying basis for projected impact of 
        waves on working waterfronts;
            (5) identify the frequency with which individual working 
        waterfronts receive revised flood-risk based on the data they 
        provide;
            (6) determine the feasibility of basing flood maps for such 
        working waterfronts on actual historical flood and damage data;
            (7) identify the standards for construction and design of 
        working waterfront infrastructure that would be needed to 
        safely develop commercial buildings in the V-zone;
            (8) determine the economic impacts of the National Flood 
        Insurance Program on working waterfronts and working waterfront 
        dependant businesses;
            (9) identify any new or alternative models that may be used 
        to more accurately reflect the risk of flooding in working 
        waterfronts and harbor environments;
            (10) review the current coastal flood insurance study 
        guidelines and recommended methodologies;
            (11) determine whether methodologies other than those 
        referred to in paragraph (10) should be applied with respect to 
        complicated harbors and open shorelines;
            (12) review where 2-D ST Wave methodology should be applied 
        and where other methodologies should be applied;
            (13) review available data on wave attenuation through 
        pilings and piers and determine whether a physical model for 
        the attenuation of waves in that environment can be undertaken 
        to derive such data; and
            (14) include any other information the Administrator 
        considers relevant to evaluating the flood risk and insurance 
        challenges facing working waterfronts.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Administrator shall submit to the Congress a 
report setting forth the results and conclusions of the study, 
including--
            (1) a description of all of the matters identified and 
        determined pursuant to subsection (a); and
            (2) an analysis of the feasibility of developing a 
        sheltered harbor flood zone for purposes of the National Flood 
        Insurance Program that specifically recognizes the unique 
        challenges faced by working waterfronts and built-up harbors.
    (c) Definition.--In this section, the term ``working waterfront'' 
means real property (including support structures over water and other 
facilities) that provides access to coastal waters to persons engaged 
in commercial fishing, recreational fishing business, boatbuilding, 
aquaculture, or other water-dependent coastal-related business and is 
used for, or that supports, commercial fishing, recreational fishing, 
boatbuilding, aquaculture, or other water-dependent coastal-related 
business.

SEC. 40. STUDY REGARDING HAZARD MODELING.

    The Administrator of the Federal Emergency Management Agency shall 
conduct a study to identify and assess the impacts, including short-
term and long-term impacts, of significant flooding events and 
subsequent revisions of hazard modeling and mapping since January 1, 
2000, on the financial soundness of the national flood insurance 
program. The Administrator may enter into an agreement with Water 
Resources Research Institutes to conduct the study under this section. 
The Administrator shall provide for a final report regarding the study 
to be submitted to the Congress not later than the expiration of the 
16-month period beginning on the date of the enactment of this Act. The 
report may include recommendations of the Administrator with respect to 
revising hazard modeling and mapping.

SEC. 41. STUDY REGARDING IMPACT OF RATE INCREASES ON PRE-FIRM 
              PROPERTIES.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study to assess the impacts of implementing provisions 
regarding pre-FIRM properties (as such term is defined in section 
578(b) of the National Flood Insurance Reform Act of 1994 (42 U.S.C. 
4014)), including the impact on the program participation rate among 
owners, renters, and tenants of non-primary residences or commercial 
nonresidential properties. In conducting the study, the Comptroller 
General shall analyze the cost effectiveness and effect on local 
government tax base of various options, including an option of 
implementing such provisions on the severe repetitive loss properties 
only.
    (b) Report.--The Comptroller General shall submit a report to 
Congress regarding the results and conclusions of the study under 
subsection (a) not later than the expiration of the 9-month period 
beginning on the date of enactment of this Act.

SEC. 42. STUDY OF EFFECTS OF ACT.

    (a) Study.--The Administrator of the Federal Emergency Management 
Agency shall conduct a study to identify and assess the impacts, 
including short-term and long-term impacts, of this Act and the 
amendments made by this Act on the financial soundness of the national 
flood insurance program.
    (b) Report.--Not later than 12 months after the date of the 
enactment of this Act, the Administrator shall submit a report to the 
Congress setting forth the results and conclusions of study under 
subsection (a), which shall include specific recommendations for 
actions to mitigate against any negative financial impacts resulting 
from this Act and the amendments made by this Act that could increase 
the debt of the national flood insurance program.

SEC. 43. REIMBURSEMENT FOR COSTS INCURRED BY HOMEOWNERS OBTAINING 
              LETTERS OF MAP AMENDMENT.

    If the owner of any property located in an area described in 
section 102(i)(1) of the Flood Disaster Protection Act of 1973 (as 
added by the preceding provisions of this Act) obtains a letter of map 
amendment during the 5-year period for such area referred to in such 
section, the Administrator of the Federal Emergency Management Agency 
shall reimburse such owner, or such entity or jurisdiction acting on 
such owner's behalf, for any costs incurred in obtaining such letter.

SEC. 44. INTERIM FINAL RULEMAKING.

    The Administrator of the Federal Emergency Management Agency shall 
issue an interim final rule to implement the amendments made by this 
Act as soon as practicable, but not more than 18 months after the date 
of the enactment of this Act. The Administrator of the Federal 
Emergency Management Agency shall issue a final rule within one year 
after the effective date of the interim final rule. In the event that 
the deadlines in this section are not met, the Administrator shall 
report to the Congress monthly on the status of the rulemakings and the 
reasons for the failure to comply with the statutory deadlines.

SEC. 45. STUDY ON PRIVATE INSURANCE MARKET, COMMUNITY PARTICIPATION IN 
              THE NATIONAL FLOOD INSURANCE PROGRAM, AND THE 
              REGIONALIZATION OF THE NATIONAL FLOOD INSURANCE PROGRAM.

    (a) Study.--The Comptroller General shall conduct a study on--
            (1) ways that the private insurance market can contribute 
        to insuring against flood damage;
            (2) the impact on the National Flood Insurance Program if 
        communities decide not to participate in the Program; and
            (3) the feasibility of regionalizing the National Flood 
        Insurance Program and ensuring that there is no cross-
        subsidization between regions under such Program.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to Congress 
a report containing the results of the study conducted under subsection 
(a).

SEC. 46. ETHICS COMPLIANCE.

    All funds authorized under this Act or any amendment made by this 
Act shall be expended in a manner that is consistent with the manual on 
Standards of Ethical Conduct for Employees of the Executive Branch.
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