I 

116TH CONGRESS 

1ST SESSION H. R. 3531 

To amend the Robert T. Stafford Disaster Relief and Emergency Assistance 

Act to allow the Administrator of the Federal Emergency Management 

Agency to provide capitalization grants to States to establish revolving 

funds to provide assistance to reduce the harmful impacts to people 

and property from multiple hazards, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 27, 2019 

Mr. GRAVES of Missouri introduced the following bill; which was referred to 

the Committee on Transportation and Infrastructure 

A BILL 

To amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to allow the Administrator of the 

Federal Emergency Management Agency to provide capitalization grants to States to establish revolving funds 

to provide assistance to reduce the harmful impacts to 

people and property from multiple hazards, and for other 

purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Resilient Communities 

5 Act of 2019’’. 


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1 SEC. 2. REVOLVING LOAN FUNDS TO MITIGATE FOR MUL2 TIPLE HAZARDS. 

3 Title II of the Robert T. Stafford Disaster Relief and 

4 Emergency Assistance Act (42 U.S.C. 5131 et seq.) is 

5 amended by adding at the end the following: 

6 ‘‘SEC. 205. REVOLVING LOAN FUND. 

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

8 ‘‘(1) the term ‘eligible entity’ means a State or 

9 Indian Tribal Government as those terms are de10 fined in section 102 of this Act; 

11 ‘‘(2) the term ‘participating entity’ means an el12 igible entity that— 

13 ‘‘(A) has entered into an agreement under 

14 subsection (b)(1); and 

15 ‘‘(B) agrees to comply with the require16 ments of this section; 

17 ‘‘(3) the term ‘mitigation loan fund’ means a 

18 multihazard mitigation assistance revolving loan 

19 fund established by an eligible entity under this sec20 tion; and 

21 ‘‘(4) the term ‘eligible recipient’ means a local 

22 governmental entity, a State agency or subdivision 

23 thereof. 

24 ‘‘(b) GENERAL AUTHORITY.— 

25 ‘‘(1) IN GENERAL.—The Administrator may 

26 enter into an agreement with an eligible entity to 


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1 provide a capitalization grant for the eligible entity 

2 to establish a revolving loan fund that will provide 

3 funding assistance to an eligible recipient to reduce 

4 disaster risks for homeowners, businesses, nonprofit 

5 organizations, and communities in order to de6 crease— 

7 ‘‘(A) the loss of life and property; 

8 ‘‘(B) the cost of insurance; and 

9 ‘‘(C) Federal disaster payments. 

10 ‘‘(2) TIMING OF DEPOSIT AND AGREEMENTS

11 FOR DISTRIBUTION OF FUNDS.— 

12 ‘‘(A) IN GENERAL.—Not later than the 

13 last day of the fiscal year following the fiscal 

14 year in which a capitalization grant is made to 

15 a participating entity under paragraph (1), the 

16 participating entity shall— 

17 ‘‘(i) deposit the grant in the mitiga18 tion loan fund of the eligible entity; and 

19 ‘‘(ii) enter into 1 or more agreements 

20 to distribute the grant funds for purposes 

21 authorized under subsection (d). 

22 ‘‘(B) NONCOMPLIANCE.—Except as pro23 vided in subparagraph (C), if a participating 

24 entity does not comply with subparagraph (A) 

25 with respect to a grant, the Administrator shall 


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1 reallocate the grant in accordance with para2 graph (3). 

3 ‘‘(C) EXCEPTION.—The Administrator 

4 may not reallocate any funds under subpara5 graph (B) to a participating entity that violated 

6 subparagraph (A) with respect to a grant made 

7 during the same fiscal year in which the funds 

8 to be reallocated were originally made available. 

9 ‘‘(3) ALLOCATION.— 

10 ‘‘(A) IN GENERAL.—The Administrator 

11 shall allocate amounts made available to carry 

12 out this section to participating entities— 

13 ‘‘(i) for the participating entities to 

14 deposit in the mitigation loan funds estab15 lished by the participating entities; and 

16 ‘‘(ii) except as provided in paragraph 

17 (5), in accordance with the requirements 

18 described in subparagraph (B). 

19 ‘‘(B) REQUIREMENTS.—The requirements 

20 described in this subparagraph are as follows: 

21 ‘‘(i) Eligible entities must apply to the 

22 Administrator for an allocation of financial 

23 assistance to capitalize the loans and com24 mit to a 10 percent match of the requested 

25 funds. 


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1 ‘‘(ii) Seventy-five percent of the 

2 project selection must be composed of local 

3 government hazard mitigation projects and 

4 eligible entities must give at least 3 weeks 

5 notice to their local governments before re6 quiring all hazard mitigation projects to be 

7 submitted. 

8 ‘‘(iii) Eligible entities may not provide 

9 more than $5,000,000 in loan funds to10 ward the completion of any single hazard 

11 mitigation project. 

12 ‘‘(iv) A participating entity must 

13 agree to the revolving loan repayment 

14 terms issued by the Administrator upon 

15 being selected to participate. 

16 ‘‘(v) No more than 10 percent of the 

17 loan funds provided to a participating enti18 ty may be used for the purposes of plan19 ning. 

20 ‘‘(C) PRIORITIZATION.—The Administrator 

21 shall prioritize loan funds to participating enti22 ties with intended use plans that include 

23 projects that— 


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1 ‘‘(i) include the restoration and aug2 mentation of natural and built infrastruc3 ture; 

4 ‘‘(ii) involve more than 1 eligible enti5 ty or recipient partnering together; 

6 ‘‘(iii) take into account regional im7 pacts of hazards such as— 

8 ‘‘(I) river basins; 

9 ‘‘(II) river corridors; 

10 ‘‘(III) micro and macro water11 sheds; and 

12 ‘‘(IV) estuaries, bays, and coastal 

13 regions; and 

14 ‘‘(iv) involve the resilience of major 

15 economic sectors and critical national in16 frastructure such as ports, power and 

17 water production and distribution centers, 

18 bridges, and waterways essential to inter19 state commerce. 

20 ‘‘(4) FURTHER REVOLVING FUND REQUIRE21 MENTS.—A participating entity that exercises the 

22 authority under paragraph (3)(A) in a fiscal year 

23 shall provide matching funds from non-Federal 

24 sources in an amount that is equal to 10 percent of 

25 the amount that the participating entity receives 


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1 under paragraph (3)(A) in that fiscal year for pur2 poses described in the respective intended use plan. 

3 ‘‘(5) RESERVATION OF FUNDS.—The Adminis4 trator shall reserve not more than 1.5 percent of the 

5 amount made available to carry out this section in 

6 a fiscal year— 

7 ‘‘(A) for administrative costs incurred by 

8 FEMA in carrying out this section; and 

9 ‘‘(B) for FEMA to provide technical assist10 ance to recipients of loans under this section. 

11 ‘‘(6) PARTNERSHIPS.—Eligible recipients may 

12 partner with nongovernmental organizations to en13 sure projects reduce disaster risks for homeowners, 

14 businesses, nonprofit organizations, and commu15 nities. 

16 ‘‘(c) ENVIRONMENTAL REVIEW OF REVOLVING LOAN

17 FUND PROJECTS.—Notwithstanding any other Federal 

18 law, Federal environmental review of the mitigation loan 

19 fund projects shall be delegated to the participating enti20 ties but only for the purposes of carrying out the mitiga21 tion revolving loan fund program as authorized under this 

22 section. Such participating entities shall establish a Fed23 eral equivalency environmental review involving consider24 ation of alternatives, analysis of potential effects, opporVerDate Sep 11 2014 03:24 Jul 06, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3531.IH H3531

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1 tunity for public notice and comments, and compliance 

2 with Federal environmental laws and Executive orders. 

3 ‘‘(d) USE OF FUNDS.— 

4 ‘‘(1) IN GENERAL.—Amounts deposited in a 

5 mitigation loan fund, including repayments of loans 

6 made from the fund and interest earned on the 

7 amounts in the fund, shall be used— 

8 ‘‘(A) consistent with paragraphs (2) and 

9 (3) and subsection (h), to provide financial as10 sistance for any eligible recipient; 

11 ‘‘(B) as a source of revenue and security 

12 for leveraged loans, the proceeds of which shall 

13 be deposited in the mitigation loan fund; or 

14 ‘‘(C) for the sale of bonds as security for 

15 payment of the principal and interest on rev16 enue or general obligation bonds issued by the 

17 participating entity to provide matching funds 

18 under subsection (g), if the proceeds from the 

19 sale of the bonds are deposited in the mitigation 

20 loan fund. 

21 ‘‘(2) PURPOSES.—An eligible recipient of finan22 cial assistance provided through amounts from a 

23 mitigation loan fund— 

24 ‘‘(A) shall use the amounts in a cost-effec25 tive manner under requirements established by 


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1 the participating entity, which may require an 

2 applicant for financial assistance to submit a 

3 cost-benefit analysis before the date on which 

4 the applicant receives the assistance; 

5 ‘‘(B) shall use the amounts for projects 

6 that are located in communities that have devel7 oped a local hazard mitigation plan that has 

8 been approved by the Administrator; 

9 ‘‘(C) may use the amounts to— 

10 ‘‘(i) establish and carry out enforce11 ment activities and implement consensus12 based codes, specifications, and standards; 

13 ‘‘(ii) study special zoning overlay dis14 tricts that better interface waterfront de15 velopment with natural assets through the 

16 use of buffer zones and shoreline set-backs, 

17 protect freshwater resources for drinking 

18 and manufacturing, and flood prevention 

19 through installation and restoration of nat20 ural infrastructure such as connected 

21 floodplain, wetlands, marshes, setback 

22 areas, and riverfront parks; 

23 ‘‘(iii) study agriculture risk compensa24 tion districts where there is a desire to re25 move or set-back levees protecting highly 


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1 developed agricultural land to mitigate for 

2 flooding, allowing agricultural producers to 

3 receive compensation for assuming greater 

4 flood risk that would alleviate flood expo5 sure to population centers and areas with 

6 critical national infrastructure; 

7 ‘‘(iv) study land use incentives that 

8 reward developers for greater reliance on 

9 LID stormwater best management prac10 tices, exchange density increases for in11 creased open space and improvement of 

12 neighborhood catch basins to mitigate 

13 urban flooding, reward developers for in14 cluding and augmenting natural infrastruc15 ture adjacent to and around building 

16 projects without reliance on increased 

17 sprawl; or 

18 ‘‘(v) study an erosion response plan 

19 that accommodates river, lake, and ocean 

20 shoreline retreating or bluff stabilization 

21 due to increased flooding and disaster im22 pacts. 

23 ‘‘(3) ALLOWANCE.—The Administrator shall 

24 promulgate an allowance within this section to allow 

25 participating entities to use revolving loan funds toVerDate Sep 11 2014 03:24 Jul 06, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3531.IH H3531

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1 ward resilience to hazards. Participating entities 

2 may direct a portion of revolving loan funds toward 

3 resilience activities that mitigate for the impacts of 

4 the following: 

5 ‘‘(A) FLOODING.—Funds may be applied 

6 to— 

7 ‘‘(i) structural elevation; 

8 ‘‘(ii) flood proofing; 

9 ‘‘(iii) the relocation or removal of 

10 buildings; 

11 ‘‘(iv) environmental restoration activi12 ties that directly reduce flood risk; 

13 ‘‘(v) construction, repair or replace14 ment of non-Federal levees; 

15 ‘‘(vi) nonprofits, businesses, and other 

16 nongovernmental entities for projects that 

17 will reduce flood risk; and 

18 ‘‘(vii) other activities determined ap19 propriate by the Administrator. 

20 ‘‘(B) DROUGHT AND PROLONGED EPI21 SODES OF INTENSE HEAT.—Funds may be ap22 plied to— 

23 ‘‘(i) planning and protocols for 

24 healthcare facility response and plans that 


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1 add heat-related illness treatment capac2 ities; 

3 ‘‘(ii) planning and protocols for the 

4 deployment of cooling centers for vulner5 able populations; 

6 ‘‘(iii) heat island and heat sink effect 

7 reduction activities such as— 

8 ‘‘(I) increasing urban canopies; 

9 and 

10 ‘‘(II) replacing natural assets 

11 more suited to drought and warmer 

12 climates; 

13 ‘‘(iv) replacing infrastructure vulner14 able to the rapid deteriorating effects of in15 tense heat with better alternatives includ16 ing natural solutions; 

17 ‘‘(v) restoration of natural infrastruc18 ture such as forests to absorb heat effects; 

19 ‘‘(vi) restoration and installment of 

20 wetlands and marshes to retain moisture 

21 during drought and intensely hot periods; 

22 ‘‘(vii) increased urban green space 

23 that works to reduce heat island effects; 

24 ‘‘(viii) water conservation plans and 

25 protocols designed for severe drought; and 


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1 ‘‘(ix) small business assistance pro2 gram assembly and planning for businesses 

3 likely to be most impacted by drought. 

4 ‘‘(C) SEVERE STORMS.—Funds may be ap5 plied to mitigation and resilience for the fol6 lowing: 

7 ‘‘(i) STRAIGHT-LINE WINDS AND

8 TORNADIC ACTIVITY.—Funds may be used 

9 for infrastructure resilience activities that 

10 mitigate against significant wind storms 

11 especially where there is high vulnerability 

12 to utility systems that may incur prolonged 

13 service interruption due to canopy over14 growth and exposed transmission links, in15 cluding restoration of forests, tree lines, 

16 and natural buffer zones designed to chan17 nel, shield, and reduce wind damage to 

18 critical infrastructure. 

19 ‘‘(ii) TROPICAL CYCLONES.—Funds 

20 may be used for infrastructure resilience 

21 activities that mitigate against impacts as22 sociated with tropical cyclones. 

23 ‘‘(iii) ICE, SNOW, EXTREME COLD.— 

24 Funds may be used for infrastructure re25 silience activities that mitigate against imVerDate Sep 11 2014 03:24 Jul 06, 2019 Jkt 089200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H3531.IH H3531

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1 pacts associated with winter storms, in2 cluding— 

3 ‘‘(I) physical improvement and 

4 signage of evacuation routes; 

5 ‘‘(II) establishment or improve6 ment of shelters or warming centers; 

7 and 

8 ‘‘(III) insulating, relocating, or 

9 rerouting critical infrastructure that 

10 mitigates for exposure of utility and 

11 public transportation assets to snow, 

12 ice, and extreme cold. 

13 ‘‘(D) WILDFIRES.—Funds may be applied 

14 to— 

15 ‘‘(i) planning and protocols that re16 duce the risk of wildfires, improve evacu17 ation routes, and better inform the public 

18 on prevention of and response to wildfires; 

19 ‘‘(ii) installation of built and natural 

20 infrastructure that reduces the risk of 

21 wildfires, including— 

22 ‘‘(I) deployment of vegetation 

23 and ecosystems that retain moisture 

24 during long hot periods native to the 


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1 region such as marshes and wetlands, 

2 if appropriate; 

3 ‘‘(II) replacement of vegetation 

4 native to the region more suited to in5 creased hot and dry periods; 

6 ‘‘(III) physical improvement and 

7 signage of evacuation routes; 

8 ‘‘(IV) establishment or improve9 ment of evacuation centers; 

10 ‘‘(V) training of first responders 

11 and public safety personnel on how to 

12 prevent, mitigate, and respond to 

13 wildfires; 

14 ‘‘(VI) acquisition of equipment 

15 and supplies suited to mitigating and 

16 responding to wildfires, including ac17 quisition of technology-based solu18 tions; 

19 ‘‘(VII) activities that increase the 

20 capacity of healthcare facilities to 

21 treat wildfire-related injuries; and 

22 ‘‘(VIII) activities that address 

23 wildfire primary impacts such as from 

24 burn and secondary impacts to prop25 erty and infrastructure. 


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1 ‘‘(E) OTHER CATASTROPHIC EVENTS.— 

2 ‘‘(i) IN GENERAL.—Eligible entities 

3 may apply revolving loan funds toward re4 silience and mitigation against a cata5 strophic event the Administrator deter6 mines is either repetitive or is highly likely 

7 to occur and endanger lives and property 

8 unless overt action is taken. 

9 ‘‘(ii) CATASTROPHIC EVENTS.—Cata10 strophic events include— 

11 ‘‘(I) chemical spills into public 

12 water supply reservoirs such as rivers, 

13 lakes, or groundwater aquifers where 

14 results could be life-threatening; 

15 ‘‘(II) large-scale algae blooms in 

16 a public surface water supply res17 ervoir such as a river or lake; 

18 ‘‘(III) rupture of a hazardous 

19 materials pipeline that transects 

20 above, below, or through a public 

21 water supply reservoir such as a river, 

22 lake, or groundwater aquifers; and 

23 ‘‘(IV) significant contact between 

24 a land-based waste disposal site cur25 rently housing a hazardous material 


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1 such as coal ash, mining material, or 

2 manufacturing slag that may make a 

3 water body toxic. 

4 ‘‘(iii) RESILIENCE ACTIVITIES.—Resil5 ience activities that are allowed under this 

6 section may include— 

7 ‘‘(I) strengthening or realignment 

8 of surface transportation infrastruc9 ture, including ports; 

10 ‘‘(II) installation of emergency 

11 shut-off valves within hazardous mate12 rial pipeline sections traversing near 

13 or through public water supplies; 

14 ‘‘(III) removal or relocating of 

15 land-based waste disposal sites cur16 rently housing a hazardous material 

17 as long as the new site is not located 

18 within a floodplain or in or near geo19 logic hazards such as earthquake 

20 faults or areas prone to tsunami 

21 liquification or landslides; and 

22 ‘‘(IV) resilience to earthquakes. 

23 ‘‘(4) SAVINGS.—None of the mitigation revolv24 ing loan funds may be used for the benefit of 


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1 projects, activities or to otherwise mitigate risk on 

2 Federal land or property. 

3 ‘‘(e) INTENDED USE PLANS.— 

4 ‘‘(1) IN GENERAL.—After providing the oppor5 tunity for public review and comment, each partici6 pating entity shall annually prepare a plan that 

7 identifies, for the year following the date of issuance 

8 of the intended use plan, the intended uses of the 

9 amounts available in the mitigation loan fund of the 

10 participating entity. 

11 ‘‘(2) CONSULTATION DURING PREPARATION.— 

12 Each participating entity, in preparing an intended 

13 use plan, shall ensure that the respective agency of 

14 the participating entity with primary responsibility 

15 for emergency management— 

16 ‘‘(A) provides oversight with respect to the 

17 preparation of the intended use plan; and 

18 ‘‘(B) consults with any other appropriate 

19 agency of the participating entity, including 

20 agencies responsible for coastal, environmental 

21 management, and economic development. 

22 ‘‘(3) CONTENTS.—A participating entity shall, 

23 in each intended use plan— 

24 ‘‘(A) include— 


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1 ‘‘(i) an explanation of the mitigation 

2 and resiliency benefits the participating en3 tity intends to achieve, including by— 

4 ‘‘(I) reducing future damage and 

5 loss associated with hazards included 

6 in subsection (d)(3); 

7 ‘‘(II) reducing the number of se8 vere repetitive loss properties and re9 petitive loss structures in the partici10 pating entity’s jurisdiction; 

11 ‘‘(III) decreasing the number of 

12 insurance claims; and 

13 ‘‘(IV) increasing the rating under 

14 the Community Rating System for 

15 communities in the geographical juris16 diction of the participating entity; 

17 ‘‘(ii) information with respect to the 

18 availability of, and the application process 

19 for receiving, financial assistance from the 

20 mitigation loan fund; 

21 ‘‘(iii) the criteria and methods estab22 lished for the distribution of amounts from 

23 the mitigation loan fund; 


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1 ‘‘(iv) the amount of financial assist2 ance that the participating entity antici3 pates allocating to— 

4 ‘‘(I) local government projects; 

5 and 

6 ‘‘(II) projects benefitting home7 owners, business, or nonprofit organi8 zations; 

9 ‘‘(v) the expected terms of the assist10 ance provided under clause (iv); and 

11 ‘‘(vi) a description of the financial sta12 tus of the mitigation loan fund and the 

13 short-term and long-term goals of the miti14 gation loan fund; and 

15 ‘‘(B) provide, to the maximum extent prac16 ticable, that priority for the use of amounts 

17 from the mitigation loan fund shall be given to 

18 projects that— 

19 ‘‘(i) address severe repetitive loss 

20 properties and repetitive loss structures; 

21 ‘‘(ii) assist low-income homeowners 

22 and low-income geographic areas; and 

23 ‘‘(iii) assist vulnerable populations in24 cluding residential facilities with assisted 


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1 living, group homes for the elderly, or emo2 tional or physically disabled. 

3 ‘‘(4) PUBLICATION.—Each participating entity 

4 shall publish and periodically update a list of all 

5 projects receiving funding from the mitigation loan 

6 fund of the participating entity, which shall in7 clude— 

8 ‘‘(A) the location of each project; 

9 ‘‘(B) the type and amount of assistance 

10 provided for each project; and 

11 ‘‘(C) the expected funding schedule and 

12 date of completion of each project. 

13 ‘‘(f) FUND MANAGEMENT.—Amounts in a mitigation 

14 loan fund shall— 

15 ‘‘(1) remain available for providing financial as16 sistance under this section until distributed; 

17 ‘‘(2) if the amounts are not required for imme18 diate distribution or expenditure, be invested in in19 terest-bearing obligations; and 

20 ‘‘(3) except as provided in subsection (i), in21 clude only— 

22 ‘‘(A) amounts received from capitalization 

23 grants made under this section; 

24 ‘‘(B) repayments of loans made from the 

25 fund; 


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1 ‘‘(C) interest earned on amounts in the 

2 fund; and 

3 ‘‘(D) the matching funds required under 

4 subsection (g). 

5 ‘‘(g) MATCHING FUNDS.—On or before the date on 

6 which a participating entity receives a capitalization grant, 

7 the entity shall deposit into the mitigation loan fund of 

8 the entity, in addition to the amount of the capitalization 

9 grant, an amount from non-Federal sources that is not 

10 less than 10 percent of the total amount of the capitaliza11 tion grant. 

12 ‘‘(h) TYPES OF ASSISTANCE.—Unless otherwise pro13 hibited by law, a participating entity may use the amounts 

14 deposited into a mitigation loan fund under this section 

15 only— 

16 ‘‘(1) to make a loan, on the condition that— 

17 ‘‘(A) the interest rate for the loan is not 

18 more than 50 percent of the market interest 

19 rate; 

20 ‘‘(B) the recipient of the loan will begin 

21 making principal and interest payments on the 

22 loan not later than 1 year after the date on 

23 which the project for which the loan was made 

24 is completed; 


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1 ‘‘(C) the loan will be fully amortized not 

2 later than 20 years after the date on which the 

3 project for which the loan was made is com4 pleted, except that, in the case of a loan made 

5 for a project in a low-income geographic area, 

6 for a low-income homeowner or to assist vulner7 able populations including residential facilities 

8 with assisted living, group homes for the elder9 ly, or emotionally or physically disabled, the 

10 participating entity may provide a longer amor11 tization period for the loan if that longer pe12 riod— 

13 ‘‘(i) ends on a date that is not later 

14 than 30 years after the date on which the 

15 project is completed; and 

16 ‘‘(ii) is not longer than the expected 

17 design life of the project; 

18 ‘‘(D) the eligible recipient of the loan dem19 onstrates that there is a dedicated source of 

20 revenue or adequate income to repay the loan; 

21 and 

22 ‘‘(E) payments of principal and interest 

23 with respect to the loan will be deposited into 

24 the mitigation loan fund; 


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1 ‘‘(2) to buy or refinance the debt obligation of 

2 a local government at an interest rate that is not 

3 more than the market interest rate; 

4 ‘‘(3) to guarantee, or purchase insurance for, a 

5 local obligation, the proceeds of which finance a 

6 project eligible for assistance under this section, if 

7 the guarantee or purchase, as applicable, would— 

8 ‘‘(A) improve credit market access; or 

9 ‘‘(B) reduce the interest rate with respect 

10 to the obligation; 

11 ‘‘(4) as a source of revenue or as security for 

12 the payment of principal and interest on revenue or 

13 general obligation bonds issued by the participating 

14 entity if the proceeds of the sale of the bonds will 

15 be deposited into the mitigation loan fund; or 

16 ‘‘(5) to earn interest on those amounts. 

17 ‘‘(i) ADMINISTRATION OF FUND.— 

18 ‘‘(1) IN GENERAL.—A participating entity may 

19 combine the financial administration of a mitigation 

20 loan fund with the financial administration of any 

21 other revolving fund established by the entity if— 

22 ‘‘(A) combining the administration of the 

23 funds would— 

24 ‘‘(i) be convenient and avoid adminis25 trative costs; and 


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1 ‘‘(ii) not violate the law of the partici2 pating entity; and 

3 ‘‘(B) the Administrator determines that— 

4 ‘‘(i) amounts obtained from a grant 

5 made under this section, amounts obtained 

6 from the repayment of a loan made from 

7 a mitigation loan fund, and interest earned 

8 on amounts in a mitigation loan fund will 

9 be— 

10 ‘‘(I) accounted for separately 

11 from amounts from other revolving 

12 funds; and 

13 ‘‘(II) used only for purposes au14 thorized under this section; and 

15 ‘‘(ii) after consulting with the appro16 priate agencies of the participating entity, 

17 the authority to establish assistance prior18 ities and carry out oversight and related 

19 activities, other than financial administra20 tion, with respect to mitigation assistance 

21 remains with the agency of the partici22 pating entity with primary responsibility 

23 for emergency management. 

24 ‘‘(2) ADMINISTRATIVE AND TECHNICAL

25 COSTS.— 


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1 ‘‘(A) IN GENERAL.—For each fiscal year, a 

2 participating entity may use the amount de3 scribed in subparagraph (B) to— 

4 ‘‘(i) pay the reasonable costs of ad5 ministration of the programs under this 

6 section, including the recovery of reason7 able costs incurred in establishing a miti8 gation loan fund; 

9 ‘‘(ii) provide appropriate oversight of 

10 projects authorized under this section; and 

11 ‘‘(iii) provide technical assistance 

12 training and outreach to recipients in the 

13 geographical jurisdiction of the partici14 pating entity of amounts under this sec15 tion, including with respect to updating 

16 hazard mitigation plans and participating 

17 in the Community Rating System, in an 

18 amount that is not more than 5 percent of 

19 the funds made available to the entity 

20 under this section. 

21 ‘‘(B) DESCRIPTION.—The amount de22 scribed in this subparagraph is an amount 

23 equal to the sum of— 

24 ‘‘(i) any fees collected by a partici25 pating entity to recover the costs described 


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1 in subparagraph (A)(i), regardless of the 

2 source; and 

3 ‘‘(ii) the greatest of— 

4 ‘‘(I) $100,000; 

5 ‘‘(II) 1.0 percent of the value of 

6 the mitigation loan fund, as of the 

7 date on which the valuation is made; 

8 and 

9 ‘‘(III) an amount equal to 2.0 

10 percent of all grant awards made to a 

11 participating entity for the mitigation 

12 loan fund under this section for the 

13 fiscal year. 

14 ‘‘(3) AUDIT AND REPORT.— 

15 ‘‘(A) AUDIT REQUIREMENT.—Not less fre16 quently than every 2 years, each participating 

17 entity shall conduct an audit of the mitigation 

18 loan fund of the entity. 

19 ‘‘(B) REPORT.—Each participating entity 

20 shall submit to the Administrator a biennial re21 port regarding the activities of the participating 

22 entity under this section during the period cov23 ered by the report, including— 


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1 ‘‘(i) the result of any audit conducted 

2 by the participating entity under subpara3 graph (A); and 

4 ‘‘(ii) a review of the effectiveness of 

5 the mitigation loan fund of the entity with 

6 respect to— 

7 ‘‘(I) the intended use plans of the 

8 entity; and 

9 ‘‘(II) meeting the objectives de10 scribed in subsection (b)(1). 

11 ‘‘(4) OVERSIGHT.—In conducting oversight with 

12 respect to mitigation loan funds established under 

13 this section, the Administrator— 

14 ‘‘(A) shall— 

15 ‘‘(i) periodically audit the funds in ac16 cordance with procedures established by 

17 the Comptroller General of the United 

18 States; and 

19 ‘‘(ii) not less frequently than once 

20 every 4 years, review each mitigation loan 

21 fund to determine the effectiveness of the 

22 fund in reducing hazard risk; and 

23 ‘‘(B) may, at any time— 

24 ‘‘(i) make recommendations to a par25 ticipating entity with respect to the adminVerDate Sep 11 2014 03:24 Jul 06, 2019 Jkt 089200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H3531.IH H3531

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1 istration of the mitigation loan fund of the 

2 entity; or 

3 ‘‘(ii) require specific changes with re4 spect to a mitigation loan fund in order to 

5 improve the effectiveness of the fund. 

6 ‘‘(j) REGULATIONS.—The Administrator shall issue 

7 guidance or regulations as may be necessary to carry out 

8 this section, including guidance or regulations that— 

9 ‘‘(1) ensure that each participating entity to 

10 which funds are allocated under this section uses the 

11 funds as efficiently as possible; 

12 ‘‘(2) reduce, to the maximum extent prac13 ticable, waste, fraud, and abuse with respect to the 

14 implementation of this section; 

15 ‘‘(3) ensure compliance with the requirements 

16 of this section; and 

17 ‘‘(4) require any party that receives funds di18 rectly or indirectly under this section, including a 

19 participating entity and an eligible recipient of 

20 amounts from a mitigation loan fund, to use proce21 dures with respect to the management of the funds 

22 that conform to generally accepted accounting stand23 ards. 

24 ‘‘(k) FUNDING.—The President may make contribu25 tions from the Disaster Relief Fund in order to provide 


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1 financial assistance under this section. Such contribution 

2 shall be deemed to be related to activities carried out pur3 suant to a major disaster under this Act. 

4 ‘‘(l) DUPLICATION OF BENEFITS.—The financial as5 sistance provided pursuant to this section to participating 

6 entities, and the loans made to eligible recipients shall not 

7 be determined to be a duplication of assistance.’’. 

Æ 


kjohnson on DSK79L0C42 with BILLS