ALL-HAZARD AUTHORITIES OF THE

FEDERAL EMERGENCY MANAGEMENT AGENCY

THE NATIONAL FLOOD INSURANCE ACT 

OF 1968, AS AMENDED, AND 

THE FLOOD DISASTER PROTECTION ACT 

OF 1973, AS AMENDED 

42 U.S.C. 4001 et seq. 

OFFICE OF THE GENERAL COUNSEL 

AUGUST, 1997 

i 

The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Table of Contents 

THE NATIONAL FLOOD INSURANCE ACT OF 1968, AS AMENDED, AND 

THE FLOOD DISASTER PROTECTION ACT OF 1973, AS AMENDED, 

42 U.S.C. 4001 et. seq 

TABLE OF CONTENTS 

§ 4001. Congressional findings and declaration of purpose 1

(a) Necessity and reasons for flood insurance program 1

(b) Participation of Federal Government in flood insurance program carried out by private

insurance industry 1

(c) Unified national program for flood plain management 2

(d) Authorization of flood insurance program; flexibility in program 2

(f) Mudslides 3

§ 4002. Additional Congressional findings and declaration of purpose 3

§ 4003. Additional definitions 5

SUBCHAPTER I--THE NATIONAL FLOOD INSURANCE PROGRAM 7

§ 4011. Authorization to establish and carry out program 7

(a) Authorization and establishment 7

(b) Additional coverage for compliance with land use and control measures 7

(c) Participation and risk sharing by insurers 8

§ 4012. Scope of program and priorities 8

(a) Priority for insurance for certain residential and church properties and business concerns8

(b) Availability of insurance for other properties 8

(c) Availability of insurance in States or areas evidencing positive interest in securing

insurance and assuring adoption of adequate land use and control measures 9

§ 4012a. Flood insurance purchase and compliance requirements and escrow accounts 10

(a) Amount and term of coverage 10

(b) Requirement for mortgage loans 10

(c) Exceptions to purchase requirements 12

(d) Escrow of flood insurance payments 13

(e) Placement of flood insurance by lender 14

(f) Civil monetary penalties for failure to require flood insurance or notify 16

(g) Other actions to remedy pattern of noncompliance 18

(h) Fee for determining location 18

§ 4013. Nature and limitation of insurance coverage 20 

(a) Regulations respecting general terms and conditions of insurability 20 

(b) Regulations respecting amount of coverage 20 

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ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Table of Contents 

(c) Effective date of policies 22 

§ 4014. Estimates of premium rates 23

(a) Studies and investigations 23

(b) Utilization of services of other Departments and agencies 24

(c) Priority to studies and investigations in States or areas evidencing positive interest in

securing insurance under program 24

(d) Parishes of Louisiana; premium rates 24

(e) Eligibility of community making adequate progress on construction of flood protection

system for rates not exceeding those applicable to completed flood protection system;

determination of adequate progress 25

(f) Availability of flood insurance in communities restoring disaccredited flood protection

systems; criteria; rates 25

§ 4015. Chargeable premium rates 27

(a) Establishment; terms and conditions 27

(b) Considerations for rates 27

(c) Rate with respect to property the construction or substantial improvement of which has

been started after December 31, 1974, or effective date of initial rate map published for area

in which property is located, whichever is later 28

(d) Payment of certain sums to Director; deposits in Fund 28

(e) Annual limitation on premium increases 28

§ 4016. Financing provisions; issuance of notes or other obligations; limitation; report to

Congressional committees; deposits in Fund 29

§ 4017. National Flood Insurance Fund 29

(a) Establishment; availability 29

(b) Credits to Fund 30

(c) Investment of moneys in obligations issued or guaranteed by United States 31

(d) Availability of Fund if operation of program is carried out through facilities of Federal

Government 31

(e) Annual budget 32

(f) Availability of funds dependent on future appropriations acts 32

§ 4018. Operating costs and allowances; definitions 32

§ 4019. Payment of claims 33

§ 4022. State and local land use controls 34

(a) Requirement for participation in flood insurance program 34

(b) Community rating system and incentives for community floodplain management 35

§ 4023. Properties in violation of State and local law 37

§ 4024. Coordination with other programs 37 

§ 4025. Flood insurance advisory committee 37 

(a) Appointment; duties 37 

(b) Membership 37

ii 
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Table of Contents 

(c) Compensation and travel expenses

§ 4026. Expiration of program

§ 4027. Biennial report to President

(a) In general

(b) Effects of flood insurance program

§ 4028. Coastal Barrier Resources System

§ 4029. Colorado River Floodway

38 

38 

38 

38 

38 

39 

39 

(a) Renewal and transfer of policies; acquisition of policies after filing of maps 39

(b) New coverage for new construction or substantial improvements 40

(c) Establishment of temporary boundaries 40

(d) Loans by federally supervised, approved, regulated, or insured financial institutions 40

SUBCHAPTER II--ORGANIZATION AND ADMINISTRATION OF FLOOD

INSURANCE PROGRAM 41

§ 4041. Implementation of program 41

PART A--INDUSTRY PROGRAM WITH FEDERAL FINANCIAL

ASSISTANCE 41

§ 4051. Industry flood insurance pool; requirements for participation 41

§ 4052. Agreements with flood insurance pool 42

(a) Authorization 42

(b) Terms and conditions 42

(c) Additional provisions 43

§ 4053. Adjustment and payment of claims; judicial review; limitations; jurisdiction 43

§ 4054. Premium equalization payments; basis; aggregate amount; establishment of

designated periods 44

§ 4055. Reinsurance coverage 44

(a) Availability for excess losses 44

(b) Availability pursuant to contract, agreement, or other arrangement; payment of

premium, fee, or other charge 45

(c) Excess loss agreement; negotiation 45

(d) Submission of excess losses on portfolio basis 45

§ 4056. Emergency implementation of flood insurance program; applicability of other 

provisions of law 45 

PART B--GOVERNMENT PROGRAM WITH INDUSTRY ASSISTANCE46 

iii 
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Table of Contents 

§ 4071. Federal operation of program; determination by Director; fiscal agents; report to

Congress 46

§ 4072. Adjustment and payment of claims; judicial review; limitations; jurisdiction 47

PART C--GENERAL PROVISIONS 48

§ 4081. Services by insurance industry; contracts, agreements, or other arrangements 48

§ 4082. Use of insurance pool, companies, or other private organizations for certain

payments 49

(a) Authorization to enter into contracts for certain responsibilities 49

(b) Terms and conditions of contract 49

(c) Competitive bidding 49

(d) Findings of Director 50

(e) Bond; liability of certifying officers and disbursing officers 50

(f) Term of contract; renewals; termination 50

§ 4083. Settlement of claims; arbitration 51

§ 4084. Records and audits 51

SUBCHAPTER III--COORDINATION OF FLOOD INSURANCE WITH

LAND-MANAGEMENT PROGRAMS IN FLOOD-PRONE AREAS 52

§ 4101. Identification of flood-prone areas 52

(a) Publication of information; establishment of flood-risk zones; estimates of flood-caused

loss 52

(b) Accelerated identification of flood-risk zones; authority of Director: grants, technical

assistance, transactions, and payments 52

(c) Priority in allocation of manpower and other available resources for identification and

mapping of flood hazard areas and flood-risk zones 53

(d) Plan for bringing communities with flood-risk zones into full program status 53

(e) Review of flood maps

(f) Updating flood maps

(g) Availability of flood maps

(h) Notification of flood map changes

(i) Compendia of flood map changes

(j) Provision of information

§ 4102. Criteria for land management and use

(a) Studies and investigations

(b) Extent of studies and investigations

53 

53 

54 

54 

54 

55 

55 

55 

55 

(c) Development of comprehensive criteria designed to encourage adoption of adequate State 

and local measures. 56 

§ 4104. Flood elevation determinations 56 

(a) Publication or notification of proposed flood elevation determinations 56 

iv 
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Table of Contents 

(b) Publication of flood elevation determinations; appeal of owner or lessee to local

government; scientific or technical knowledge or information as basis for appeal;

modification of proposed determinations 57

(c) Appeals by private persons; submission of negativing or contradicting data to

community; opinion of community respecting justification for appeal by community;

transmission of individual appeals to Director; filing of community action with Director 57

(d) Administrative review of appeals by private persons; modification of proposed

determinations; decision of Director: form and distribution 58

(e) Administrative review of appeals by community; agencies for resolution of conflicting

data; availability of flood insurance pending such resolution; time for determination of

Director; community adoption of local land use and control measures within reasonable time

of final determination; public inspection and admissibility in evidence of reports and other

administrative information 58

(f) Reimbursement of certain expenses; appropriation authorization 59

(g) Judicial review of final administrative determinations; venue; time for appeal; scope of

review; good cause for stay of final determinations

§ 4104a. Notice requirements

(a) Notification of special flood hazards

(b) Notification of change of servicer

(c) Notification of expiration of insurance

§ 4104b. Standard hazard determination forms

(a) Development

(b) Design and contents

(c) Required use

(d) Guarantees regarding information

(e) Reliance on previous determination

(f) Effective date

§ 4104c. Mitigation assistance

(a) Authority

(b) Planning assistance grants

(c) Eligibility for mitigation assistance

(d) Notification of approval and grant award

(e) Eligible mitigation activities

(f) Limitations on amount of assistance

(g) Matching requirement

(h) Oversight of mitigation plans

(i) Recapture

(j) Reports

(k) “Community” defined

§ 4104d. National Flood Mitigation Fund

(a) Establishment and availability

(b) Credits

(c) Investment

(d) Report

59 

60 

60 

61 

62 

62 

62 

62 

63 

63 

63 

64 

64 

64 

65 

65 

66 

66 

68 

69 

69 

69 

70 

70 

70 

70 

71 

71 

71 

§ 4105. Disaster mitigation requirements; notification to flood-prone areas 72 

v 
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Table of Contents 

(a) Initial notification 72

(b) Alternative actions of tentatively identified communities; public hearing; opportunity for

submission of evidence; finality of administrative determination of existence or extent of

flood hazard area 72

(c) Subsequent notification to additional communities known to be flood prone areas 72

(d) Provisions of section 4106 applicable to flood-prone communities disqualified for flood

insurance program 73

(e) Administrative procedures; establishment; reimbursement of certain expenses;

appropriation authorization 73

§ 4106. Nonparticipation in flood insurance program 74

(a) Prohibition against Federal approval of financial assistance 74

(b) Notification of purchaser or lessee of property in flood hazard area of availability of

Federal disaster relief assistance in event of a flood disaster 74

§ 4107. Consultation with local officials; scope 74

SUBCHAPTER IV--GENERAL PROVISIONS 76

§ 4121. Definitions 76

§ 4122. Studies of other natural disasters; cooperation and consultation with other 

departments and agencies

§ 4124. Applicability of fiscal controls

§ 4125. Finality of certain financial transactions

§ 4126. Administrative expenses

§ 4127. Authorization of appropriations; availability

§ 4128. Rules and regulations

§ 4129. Federal Insurance Administrator; establishment of position

78 

79 

79 

80 

80 

81 

82 

vi 
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Cross-Reference Table 

CROSS-REFERENCE TABLE 

SECTIONS IN NATIONAL FLOOD INSURANCE ACT OF 1968, AS 

AMENDED, AND FLOOD DISASTER PROTECTION ACT OF 1973, AS 

AMENDED, TO U.S. CODE SECTIONS 

Section No. in 

1968 1973 Section No. in 

Act Act 42 U.S.C. Page 

1301 § 4001. Congressional findings and declaration of 1

purpose

2 § 4002. Additional Congressional findings and 3

declaration of purpose

3 § 4003. Additional definitions 5

1304 § 4011. National flood insurance program 7

1305 § 4012. Scope of program and priorities 8

102 § 4012a. Flood insurance purchase and compliance 10

1306 § 4013.

1307 § 4014.

1308 § 4015.

1309 § 4016.

1310 § 4017.

1311 § 4018.

1312 § 4019.

1313 § 4020.

§ 4021.

1315 § 4022.

1316 § 4023.

1317 § 4024.

1318 § 4025.

1319 § 4026.

1320 § 4027.

1321 § 4028.

1322 § 4029.

1330 § 4041.

1331 § 4051.

1332 § 4052.

1333 § 4053.

1334 § 4054.

1335 § 4055.

requirements and escrow accounts

Nature and limitation of insurance coverage 20

Estimates of premium rates 23

Chargeable premium rates 27

Financing provisions 29

National Flood Insurance Fund 29

Operating costs and allowances 32

Payment of claims 33

Dissemination of flood insurance information 33

Repealed.

State and local land use controls 34

Properties in violation of State and local law 37

Coordination with other programs 37

Flood insurance advisory committee 37

Expiration of program 38

Biennial report to President 38

Coastal Barrier Resources System 39

Colorado River Floodway 39

Implementation of program 41

Industry flood insurance pool 41

Agreements with flood insurance pool 42

Adjustment and payment of claims; judicial 43

review; limitations; jurisdiction

Premium equalization 44

Reinsurance coverage 44

vii 
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Cross-Reference Table 

Section No. in 

1968 1973 

Act Act 

1336 § 4056.

1340 § 4071.

1341 § 4072.

1345 § 4081.

1346 § 4082.

1347 § 4083.

1348 § 4084.

1360 § 4101.

1361 § 4102.

1363 § 4104.

Section No. in 

42 U.S.C. Page 

Emergency implementation of flood insurance

program

Federal operation of program

Adjustment and payment of claims; judicial

review; limitations; jurisdiction

Services by insurance industry

Use of insurance pool, companies, or other

private organizations for certain payments

Settlement of claims

Record keeping

Identification of flood-prone areas

Criteria for land management and use

Flood elevation determinations

1364 § 4104a. Notice requirements

1365 § 4104b. Standard hazard determination forms

1366 § 4104c. Mitigation assistance

1367 §

4104d.

201 § 4105.

202 § 4106.

207 § 4107.

1370 § 4121.

1371 § 4122.

1372 § 4123.

1373 § 4124.

1374 § 4125.

1375 § 4126.

1376 § 4127.

205 § 4128.

1105* § 4129.

National Flood Mitigation Fund

Disaster mitigation requirements; notification

to flood-prone areas

Nonparticipation in flood insurance program

Consultation with local officials; scope

Definitions

Studies of other natural disasters

Advance payments

Applicability of fiscal controls

Finality of certain financial transactions

Administrative expenses

Authorization of appropriations; availability

Rules and regulations

Federal Insurance Administrator;

establishment of position

45 

46 

47 

48 

49 

51 

51 

52 

55 

56 

60 

62 

64 

70 

73 

74 

76 

78 

79 

79 

79 

80 

80 

81 

82 

* Enacted as part of the Urban Property Protection and Reinsurance Act of 1968

and also as part of the Housing and Urban Development Act of 1968, and not as

part of the National Flood Insurance Act of 1968.

viii 
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1301 

[42 U.S.C. § 4001] 

UNITED STATES CODE

TITLE 42--THE PUBLIC HEALTH AND WELFARE

CHAPTER 50--NATIONAL FLOOD INSURANCE

{Sec. 13011} 

§ 4001. Congressional findings and declaration of purpose 

(a) Necessity and reasons for flood insurance program 

The Congress finds that (1) from time to time flood disasters have 

created personal hardships and economic distress which have required 

unforeseen disaster relief measures and have placed an increasing burden 

on the Nation's resources; (2) despite the installation of preventive and 

protective works and the adoption of other public programs designed to 

reduce losses caused by flood damage, these methods have not been 

sufficient to protect adequately against growing exposure to future flood 

losses; (3) as a matter of national policy, a reasonable method of sharing 

the risk of flood losses is through a program of flood insurance which can 

complement and encourage preventive and protective measures; and (4) if 

such a program is initiated and carried out gradually, it can be expanded as 

knowledge is gained and experience is appraised, thus eventually making 

flood insurance coverage available on reasonable terms and conditions to 

persons who have need for such protection. 

(b) Participation of Federal Government in flood insurance program 

carried out by private insurance industry 

The Congress also finds that (1) many factors have made it uneconomic 

for the private insurance industry alone to make flood insurance available 

to those in need of such protection on reasonable terms and conditions; but 

(2) a program of flood insurance with large-scale participation of the 

Federal Government and carried out to the maximum extent practicable by 

the private insurance industry is feasible and can be initiated. 

1 Exect as noted otherwise, marginal section numbers are references to title XIII of Pub. L. 90-

448, Aug. 1, 1968, 82 Stat. 572, as amended, known as the National Flood Insurance Act of 

1968, 

1
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1301 

[42 U.S.C. § 4001] 

(c) Unified national program for flood plain management 

The Congress further finds that (1) a program of flood insurance can 

promote the public interest by providing appropriate protection against the 

perils of flood losses and encouraging sound land use by minimizing 

exposure of property to flood losses; and (2) the objectives of a flood 

insurance programshould be integrally related to a unified national program 

for flood plain management and, to this end, it is the sense of Congress that 

within two years following the effective date of this chapter the President 

should transmit to the Congress for its consideration any further proposals 

necessary for such a unified program, including proposals for the allocation 

of costs among beneficiaries of flood protection. 

(d) Authorization of flood insurance program; flexibility in program 

It is therefore the purpose of this chapter to (1) authorize a flood 

insurance program by means of which flood insurance, over a period of 

time, can be made available on a nationwide basis through the cooperative 

efforts of the Federal Government and the private insurance industry, and 

(2) provide flexibility in the program so that such flood insurance may be 

based on workable methods of pooling risks, minimizing costs, and 

distributing burdens equitably among those who will be protected by flood 

insurance and the general public. 

(e) Land use adjustments by State and local governments; development of proposed future construction; assistance of lending and 

credit institutions; relation of Federal assistance to all floodrelated programs; continuing studies 

It is the further purpose of this chapter to (1) encourage State and local 

governments to make appropriate land use adjustments to constrict the 

development of land which is exposed to flood damage and minimize 

damage caused by flood losses, (2) guide the development of proposed 

future construction, where practicable, away from locations which are 

threatened by flood hazards, (3) encourage lending and credit institutions, 

as a matter of national policy, to assist in furthering the objectives of the 

flood insurance program, (4) assure that any Federal assistance provided 

under the program will be related closely to all flood-related programs and 

activities of the Federal Government, and (5) authorize continuing studies 

of flood hazards in order to provide for a constant reappraisal of the flood 

insurance program and its effect on land use requirements. 

2
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 2 

[42 U.S.C. § 4002] 

(f) Mudslides 

The Congress also finds that (1) the damage and loss which results from 

mudslides is related in cause and similar in effect to that which results 

directly from storms, deluges, overflowing waters, and other forms of 

flooding, and (2) the problems involved in providing protection against this 

damage and loss, and the possibilities for making such protection available 

through a Federal or federally sponsored program, are similar to those 

which exist in connection with efforts to provide protection against damage 

and loss caused by such other forms of flooding. It is therefore the further 

purpose of this chapter to make available, by means of the methods, 

procedures, and instrumentalities which are otherwise established or 

available under this chapter for purposes of the flood insurance program, 

protection against damage and loss resulting from mudslides that are 

caused by accumulations of water on or under the ground. 

{Sec. 22} 

§ 4002. Additional Congressional findings and declaration of purpose 

(a) The Congress finds that-­

(1) annual losses throughout the Nation from floods and mudslides are 

increasing at an alarming rate, largely as a result of the accelerating 

development of, and concentration of population in, areas of flood and 

mudslide hazards; 

(2) the availability of Federal loans, grants, guaranties, insurance, and 

other forms of financial assistance are often determining factors in the 

utilization of land and the location and construction of public and of private 

industrial, commercial, and residential facilities; 

(3) property acquired or constructed with grants or other Federal 

assistance may be exposed to risk of loss through floods, thus frustrating 

the purpose for which such assistance was extended; 

2 Sec. 2 of the Flood Disaster Protection Act of 1973, as amended, Pub. L. 93-234, Dec. 31, 

1973, 87 Stat. 975, as amended. 

3
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 2 

[42 U.S.C. § 4002] 

(4) Federal instrumentalities insure or otherwise provide financial 

protection to banking and credit institutions whose assets include a 

substantial number of mortgage loans and other indebtedness secured by 

property exposed to loss and damage from floods and mudslides; 

(5) the Nation cannot afford the tragic losses of life caused annually by 

flood occurrences, nor the increasing losses of property suffered by flood 

victims, most of whom are still inadequately compensated despite the 

provision of costly disaster relief benefits; and 

(6) it is in the public interest for persons already living in flood-prone 

areas to have both an opportunity to purchase flood insurance and access 

to more adequate limits of coverage, so that they will be indemnified, for 

their losses in the event of future flood disasters. 

(b) The purpose of this Act, therefore, is to-­

(1) substantially increase the limits of coverage authorized under the 

national flood insurance program; 

(2) provide for the expeditious identification of, and the dissemination of 

information concerning, flood-prone areas; 

(3) require States or local communities, as a condition of future Federal 

financial assistance, to participate in the flood insurance program and to 

adopt adequate flood plain ordinances with effective enforcement 

provisions consistent with Federal standards to reduce or avoid future 

flood losses; and 

(4) require the purchase of flood insurance by property owners who are 

being assisted by Federal programs or by federally supervised, regulated, or 

insured agencies or institutions in the acquisition or improvement of land or 

facilities located or to be located in identified areas having special flood 

hazards. 

4
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 3 

[42 U.S.C. § 4003] 

{Sec. 33} 

§ 4003. Additional definitions 

(a) As used in this Act, unless the context otherwise requires, the term-­

(1) “community” means a State or a political subdivision thereof which 

has zoning and building code jurisdiction over a particular area having 

special flood hazards 

(2) “Federal agency” means any department, agency, corporation, or 

other entity or instrumentality of the executive branch of the Federal 

Government, and includes the Federal National Mortgage Association and 

the Federal Home Loan Mortgage Corporation; 

(3) “financial assistance” means any form of loan, grant, guaranty, 

insurance, payment, rebate, subsidy, disaster assistance loan or grant, or 

any other form of direct or indirect Federal assistance, other than general 

or special revenue sharing or formula grants made to States; 

(4) “financial assistance for acquisition or construction purposes” means 

any form of financial assistance which is intended in whole or in part for the 

acquisition, construction, reconstruction, repair, or improvement of any 

publicly or privately owned building or mobile home, and for any 

machinery, equipment, fixtures, and furnishings contained or to be 

contained therein, and shall include the purchase or subsidization of 

mortgages or mortgage loans but shall exclude assistance pursuant to the 

Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et seq.] 

(other than assistance under such Act in connection with a flood); 

(5) “Federal entity for lending regulation” means the Board of Governors 

of the Federal Reserve System, the Federal Deposit Insurance Corporation, 

the Comptroller of the Currency, the Office of Thrift Supervision, the 

National Credit Union Administration, and the Farm Credit Administration, 

and with respect to a particular regulated lending institution means the 

entity primarily responsible for the supervision of the institution; 

(6) “Director” means the Director of the Federal Emergency 

Management Agency 

3 Of the Flood Disaster Protection Act of 1973, as amended. 

5
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 3 

[42 U.S.C. § 4003] 

(7) “Federal agency lender” means a Federal agency that makes direct 

loans secured by improved real estate or a mobile home, to the extent such 

agency acts in such capacity; 

(8) the term “improved real estate” means real estate upon which a 

building is located; 

(9) “lender” means a regulated lending institution or Federal agency 

lender; 

(10) “regulated lending institution” means any bank, savings and loan 

association, credit union, farm credit bank, Federal land bank association, 

production credit association, or similar institution subject to the 

supervision of a Federal entity for lending regulation; and 

(11) “servicer” means the person responsible for receiving any scheduled 

periodic payments from a borrower pursuant to the terms of a loan, 

including amounts for taxes, insurance premiums, and other charges with 

respect to the property securing the loan, and making the payments of 

principal and interest and such other payments with respect to the amounts 

received from the borrower as may be required pursuant to the terms of the 

loan. 

(b) The Director is authorized to define or redefine, by rules and 

regulations, any scientific or technical term used in this Act, insofar as such 

definition is not inconsistent with the purposes of this Act. 

6
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1304 

[42 U.S.C. § 4011] 

UNITED STATES CODE

TITLE 42--THE PUBLIC HEALTH AND WELFARE

CHAPTER 50--NATIONAL FLOOD INSURANCE

SUBCHAPTER I--THE NATIONAL FLOOD INSURANCE PROGRAM 

{Sec. 1304} 

§ 4011. Authorization to establish and carry out program 

(a) Authorization and establishment 

To carry out the purposes of this chapter, the Director of the Federal 

Emergency Management Agency is authorized to establish and carry out a 

national flood insurance program which will enable interested persons to 

purchase insurance against loss resulting from physical damage to or loss of 

real property or personal property related thereto arising from any flood 

occurring in the United States. 

(b) Additional coverage for compliance with land use and control measures 

The national flood insurance program established pursuant to subsection 

(a) of this section shall enable the purchase of insurance to cover the cost 

of compliance with land use and control measures established under section 

4102 of this title for-­

(1) properties that are repetitive loss structures; 

(2) properties that have flood damage in which the cost of repairs equals 

or exceeds 50 percent of the value of the structure at the time of the flood 

event; and 

(3) properties that have sustained flood damage on multiple occasions, if 

the Director determines that it is cost-effective and in the best interests of 

the National Flood Insurance Fund to require compliance with the land use 

and control measures. 

7
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1304 

[42 U.S.C. § 4011] 

The Director shall impose a surcharge on each insured of not more than 

$75 per policy to provide cost of compliance coverage in accordance with 

the provisions of this subsection. 

(c) Participation and risk sharing by insurers 

In carrying out the flood insurance program the Director shall, to the 

maximum extent practicable, encourage and arrange for-­

(1) appropriate financial participation and risk sharing in the program by 

insurance companies and other insurers, and 

(2) other appropriate participation, on other than a risk-sharing basis, by 

insurance companies and other insurers, insurance agents and brokers, and 

insurance adjustment organizations,in accordance with the provisions of 

subchapter II of this chapter [42 U.S.C. § 4041 et seq.]. 

{Sec. 1305} 

§ 4012. Scope of program and priorities 

(a) Priority for insurance for certain residential and church properties 

and business concerns 

In carrying out the flood insurance program the Director shall afford a 

priority to making flood insurance available to cover residential properties 

which are designed for the occupancy of from one to four families, church 

properties, and business properties which are owned or leased and operated 

by small business concerns. 

(b) Availability of insurance for other properties 

If on the basis of-­

(1) studies and investigations undertaken and carried out and information 

received or exchanged under section 4014 of this title, and 

(2) such other information as may be necessary, 

8
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1305 

[42 U.S.C. § 4012] 

the Director determines that it would be feasible to extend the flood 

insurance program to cover other properties, he may take such action 

under this chapter as from time to time may be necessary in order to make 

flood insurance available to cover, on such basis as may be feasible, any 

types and classes of-­

(A) other residential properties, 

(B) other business properties, 

(C) agricultural properties 

(D) properties occupied by private nonprofit organizations, and 

(E) properties owned by State and local governments and agencies 

thereof, 

and any such extensions of the program to any types and classes of these 

properties shall from time to time be prescribed in regulations. 

(c) Availability of insurance in States or areas evidencing positive 

interest in securing insurance and assuring adoption of adequate 

land use and control measures 

The Director shall make flood insurance available in only those States or 

areas (or subdivisions thereof) which he has determined have-­

(1) evidenced a positive interest in securing flood insurance coverage 

under the flood insurance program, and 

(2) given satisfactory assurance that by December 31, 1971, adequate 

land use and control measures will have been adopted for the State or area 

(or subdivision) which are consistent with the comprehensive criteria for 

land management and use developed under section 4102 of this title, and 

that the application and enforcement of such measures will commence as 

soon as technical information on floodways and on controlling flood 

elevations is available. 

9
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 102 

[42 U.S.C. § 4012a] 

{Sec. 1024} 

§ 4012a. Flood insurance purchase and compliance requirements and escrow 

accounts 

(a) Amount and term of coverage 

After the expiration of sixty days following December 31, 1973, no 

Federal officer or agency shall approve any financial assistance for 

acquisition or construction purposes for use in any area that has been 

identified by the Director as an area having special flood hazards and in 

which the sale of flood insurance has been made available under the 

National Flood Insurance Act of 1968 [42 U.S.C. § 4001 et seq.], unless 

the building or mobile home and any personal property to which such 

financial assistance relates is covered by flood insurance in an amount at 

least equal to its development or project cost (less estimated land cost) or 

to the maximum limit of coverage made available with respect to the 

particular type of property under the National Flood Insurance Act of 

1968, whichever is less: Provided, That if the financial assistance provided 

is in the form of a loan or an insurance or guaranty of a loan, the amount of 

flood insurance required need not exceed the outstanding principal balance 

of the loan and need not be required beyond the term of the loan. The 

requirement of maintaining flood insurance shall apply during the life of the 

property, regardless of transfer of ownership of such property. 

(b) Requirement for mortgage loans 

(1) Regulated lending institutions 

Each Federal entity for lending regulation (after consultation and 

coordination with the Financial Institutions Examination Council 

established under the Federal Financial Institutions Examination Council 

Act of 1974 [12 U.S.C. § 3301 et seq.]) shall by regulation direct regulated 

lending institutions not to make, increase, extend, or renew any loan 

secured by improved real estate or a mobile home located or to be located 

in an area that has been identified by the Director as an area having special 

flood hazards and in which flood insurance has been made available under 

the National Flood Insurance Act of 1968 [42 U.S.C. 4001 et seq.], unless 

the building or mobile home and any personal property securing such loan 

4 Of the Flood Disaster Protection Act of 1973, as amended. 

10
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 102 

[42 U.S.C. § 4012a] 

is covered for the term of the loan by flood insurance in an amount at least 

equal to the outstanding principal balance of the loan or the maximum limit 

of coverage made available under the Act with respect to the particular 

type of property, whichever is less. 

(2) Federal agency lenders 

A Federal agency lender may not make, increase, extend, or renew any 

loan secured by improved real estate or a mobile home located or to be 

located in an area that has been identified by the Director as an area having 

special flood hazards and in which flood insurance has been made available 

under the National Flood Insurance Act of 1968, unless the building or 

mobile home and any personal property securing such loan is covered for 

the term of the loan by flood insurance in the amount provided in 

paragraph (1). Each Federal agency lender shall issue any 

regulationsnecessary to carry out this paragraph. Such regulations shall be 

consistent with and substantially identical to the regulations issued under 

paragraph (1). 

(3) Government-sponsored enterprises for housing 

The Federal National Mortgage Association* and the Federal Home 

Loan Mortgage Corporation shall implement procedures reasonably 

designed to ensure that, for any loan that is-­

(A) secured by improved real estate or a mobile home located in an 

area that has been identified, at the time of the origination of the loan or at 

any time during the term of the loan, by the Director as an area having 

special flood hazards and in which flood insurance is available under the 

National Flood Insurance Act of 1968, and 

(B) purchased by such entity, 

the building or mobile home and any personal property securing the loan is 

covered for the term of the loan by flood insurance in the amount provided 

in paragraph (1). 

11
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 102 

[42 U.S.C. § 4012a] 

(4) Applicability 

(A) Existing coverage 

Except as provided in subparagraph (B), paragraph (1) shall apply on 

September 23, 1994. 

(B) New coverage 

Paragraphs (2) and (3) shall apply only with respect to any loan made, 

increased, extended, or renewed after the expiration of the 1-year period 

beginning on September 23, 1994. Paragraph (1) shall apply with respect to 

any loan made, increased, extended, or renewed by any lender supervised 

by the Farm Credit Administration only after the expiration of the period 

under this subparagraph. 

(C) Continued effect of regulations 

Notwithstanding any other provision of this subsection, the regulations to 

carry out paragraph (1), as in effect immediately before September 23, 

1994, shall continue to apply until the regulations issued to carry out 

paragraph (1) as amended by section 522(a) of Public Law 103-3255 take 

effect. 

(c) Exceptions to purchase requirements 

(1) State-owned property 

Notwithstanding the other provisions of this section, flood insurance shall 

not be required on any State-owned property that is covered under an 

adequate State policy of self-insurance satisfactory to the Director. The 

Director shall publish and periodically revise the list of States to which this 

subsection applies. 

(2) Small loans 

Notwithstanding any other provision of this section, subsections (a) and 

(b) of this section shall not apply to any loan having--

5 The Reigle Community Development and Regulatory Improvement Act of 1994, enacted 

September 23, 1994, of which Title V is the National Flood Insurance Reform Act of 1994. 

12
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 102 

[42 U.S.C. § 4012a] 

(A) an original outstanding principal balance of $5,000 or less; and 

(B) a repayment term of 1 year or less. 

(d) Escrow of flood insurance payments 

(1) Regulated lending institutions 

Each Federal entity for lending regulation (after consultation and 

coordination with the Financial Institutions Examination Council) shall by 

regulation require that, if a regulated lending institution requires the 

escrowing of taxes, insurance premiums, fees, or any other charges for a 

loan secured by residential improved real estate or a mobile home, then all 

premiums and fees for flood insurance under the National Flood Insurance 

Act of 1968 [42 U.S.C. § 4001 et seq.] for the real estate or mobile home 

shall be paid to the regulated lending institution or other servicer for the 

loan in a manner sufficient to make payments as due for the duration of the 

loan. Upon receipt of the premiums, the regulated lending institution or 

servicer of the loan shall deposit the premiums in an escrow account on 

behalf of the borrower. Upon receipt of a notice from the Director or the 

provider of the insurance that insurance premiums are due, the regulated 

lending institution or servicer shall pay from the escrow account to the 

provider of the insurance the amount of insurance premiums owed. 

(2) Federal agency lenders 

Each Federal agency lender shall by regulation require and provide for 

escrow and payment of any flood insurance premiums and fees relating to 

residential improved real estate and mobile homes securing loans made by 

the Federal agency lender under the circumstances and in the manner 

provided under paragraph (1). Any regulations issued under this paragraph 

shall be consistent with and substantially identical to the regulations issued 

under paragraph (1). 

(3) Applicability of RESPA 

Escrow accounts established pursuant to this subsection shall be subject 

to the provisions of section 10 of the Real Estate Settlement Procedures 

Act of 1974 [12 U.S.C. § 2609]. 

13
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 102 

[42 U.S.C. § 4012a] 

(4) “Residential improved real estate” defined 

For purposes of this subsection, the term “residential improved real 

estate” means improved real estate for which the improvement is a 

residential building. 

(5) Applicability 

This subsection shall apply only with respect to any loan made, increased, 

extended, or renewed after the expiration of the 1-year period beginning on 

September 23, 1994. 

(e) Placement of flood insurance by lender 

(1) Notification to borrower of lack of coverage 

If, at the time of origination or at any time during the term of a loan 

secured by improved real estate or by a mobile home located in an area that 

has been identified by the Director (at the time of the origination of the 

loan or at any time during the term of the loan) as an area having special 

flood hazards and in which flood insurance is available under the National 

Flood Insurance Act of 1968 [42 U.S.C. § 4001 et seq.], the lender or 

servicer for the loan determines that the building or mobile home and any 

personal property securing the loan is not covered by flood insurance or is 

covered by such insurance in an amount less than the amount required for 

the property pursuant to paragraph (1), (2), or (3) of subsection (b) of this 

section, the lender or servicer shall notify the borrower under the loan that 

the borrower should obtain, at the borrower's expense, an amount of flood 

insurance for the building or mobile home and such personal property that 

is not less than the amount under subsection (b)(1) of this section, for the 

term of the loan. 

(2) Purchase of coverage on behalf of borrower 

If the borrower fails to purchase such flood insurance within 45 days 

after notification under paragraph (1), the lender or servicer for the loan 

shall purchase the insurance on behalf of the borrower and may charge the 

borrower for the cost of premiums and fees incurred by the lender or 

servicer for the loan in purchasing the insurance. 

14
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 102 

[42 U.S.C. § 4012a] 

(3) Review of determination regarding required purchase 

(A) In general 

The borrower and lender for a loan secured by improved real estate or a 

mobile home may jointly request the Director to review a determination of 

whether the building or mobile home is located in an area having special 

flood hazards. Such request shall be supported by technical information 

relating to the improved real estate or mobile home. Not later than 45 days 

after the Director receives the request, the Director shall review the 

determination and provide to the borrower and the lender with a letter 

stating whether or not the building or mobile home is in an area having 

special flood hazards. The determination of the Director shall be final. 

(B) Effect of determination 

Any person to whom a borrower provides a letter issued by the Director 

pursuant to subparagraph (A), stating that the building or mobile home 

securing the loan of the borrower is not in an area having special flood 

hazards, shall have no obligation under this title to require the purchase of 

flood insurance for such building or mobile home during the period 

determined by the Director, which shall be specified in the letter and shall 

begin on the date on which such letter is provided. 

(C) Effect of failure to respond 

If a request under subparagraph (A) is made in connection with the 

origination of a loan and the Director fails to provide a letter under 

subparagraph (A) before the later of (i) the expiration of the 45-day period 

under such subparagraph, or (ii) the closing of the loan, no person shall 

have an obligation under this title to require the purchase of flood 

insurance for the building or mobile home securing the loan until such letter 

is provided. 

(4) Applicability 

This subsection shall apply to all loans outstanding on or after September 

23, 1994. 

15
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 102 

[42 U.S.C. § 4012a] 

(f) Civil monetary penalties for failure to require flood insurance or notify 

(1) Civil monetary penalties against regulated lenders 

Any regulated lending institution that is found to have a pattern or 

practice of committing violations under paragraph (2) shall be assessed a 

civil penalty by the appropriate Federal entity for lending regulation in the 

amount provided under paragraph (5). 

(2) Lender violations 

The violations referred to in paragraph (1) shall include-­

(A) making, increasing, extending, or renewing loans in violation of-­

(i) the regulations issued pursuant to subsection (b) of this section; 

(ii) the escrow requirements under subsection (d) of this section; or 

(iii) the notice requirements under section 1364 of the National Flood 

Insurance Act of 1968 [42 U.S.C. § 4104a]; or 

(B) failure to provide notice or purchase flood insurance coverage in 

violation of subsection (e) of this section. 

(3) Civil monetary penalties against GSE's 

(A) In general 

If the Federal National Mortgage Association or the Federal Home Loan 

Mortgage Corporation is found by the Director of the Office of Federal 

Housing Enterprise Oversight of the Department of Housing and Urban 

Development to have a pattern or practice of purchasing loans in violation 

of the procedures established pursuant to subsection (b)(3) of this section, 

the Director of such Office shall assess a civil penalty against such 

enterprise in the amount provided under paragraph (5) of this subsection. 

(B) “Enterprise” defined 

For purposes of this subsection, the term “enterprise” means the Federal 

National Mortgage Association or the Federal Home Loan Mortgage 

Corporation. 

16
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 102 

[42 U.S.C. § 4012a] 

(4) Notice and hearing 

A penalty under this subsection may be issued only after notice and an 

opportunity for a hearing on the record. 

(5) Amount 

A civil monetary penalty under this subsection may not exceed $350 for 

each violation under paragraph (2) or paragraph (3). The total amount of 

penalties assessed under this subsection against any single regulated lending 

institution or enterprise during any calendar year may not exceed $100,000. 

(6) Lender compliance 

Notwithstanding any State or local law, for purposes of this subsection, 

any regulated lending institution that purchases flood insurance or renews a 

contract for flood insurance on behalf of or as an agent of a borrower of a 

loan for which flood insurance is required shall be considered to have 

complied with the regulations issued under subsection (b) of this section. 

(7) Effect of transfer on liability 

Any sale or other transfer of a loan by a regulated lending institution that 

has committed a violation under paragraph (1), that occurs subsequent to 

the violation, shall not affect the liability of the transferring lender with 

respect to any penalty under this subsection. A lender shall not be liable for 

any violations relating to a loan committed by another regulated lending 

institution that previously held the loan. 

(8) Deposit of penalties 

Any penalties collected under this subsection shall be paid into the 

National Flood Mitigation Fund under section 1367 of the National Flood 

Insurance Act of 1968 [42 U.S.C. § 4104d]. 

(9) Additional penalties 

Any penalty under this subsection shall be in addition to any civil remedy 

or criminal penalty otherwise available. 

(10) Statute of limitations 

17
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 102 

[42 U.S.C. § 4012a] 

No penalty may be imposed under this subsection after the expiration of 

the 4-year period beginning on the date of the occurrence of the violation 

for which the penalty is authorized under this subsection. 

(g) Other actions to remedy pattern of noncompliance 

(1) Authority of Federal entities for lending regulation 

A Federal entity for lending regulation may require a regulated lending 

institution to take such remedial actions as are necessary to ensure that the 

regulated lending institution complies with the requirements of the national 

flood insurance program if the Federal agency for lending regulation makes 

a determination under paragraph (2) regarding the regulated lending 

institution. 

(2) Determination of violations 

A determination under this paragraph shall be a finding that-­

(A) the regulated lending institution has engaged in a pattern and 

practice of noncompliance in violation of the regulations issued pursuant to 

subsection (b), (d), or (e) of this section or the notice requirements under 

section 1364 of the National Flood Insurance Act of 1968 [42 U.S.C. 

§ 4104a]; and 

(B) the regulated lending institution has not demonstrated measurable 

improvement in compliance despite the assessment of civil monetary 

penalties under subsection (f) of this section. 

(h) Fee for determining location 

Notwithstanding any other Federal or State law, any person who makes a 

loan secured by improved real estate or a mobile home or any servicer for 

such a loan may charge a reasonable fee for the costs of determining 

whether the building or mobile home securing the loan is located in an area 

having special flood hazards, but only in accordance with the following 

requirements: 

18
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1306 

[42 U.S.C. § 4013] 

(1) Borrower fee 

The borrower under such a loan may be charged the fee, but only if the 

determination-­

(A) is made pursuant to the making, increasing, extending, or renewing 

of the loan that is initiated by the borrower; 

(B) is made pursuant to a revision or updating under section 1360(f)6 

[42 U.S.C. § 4101(f)] of the floodplain areas and flood-risk zones or 

publication of a notice or compendia under subsection (h) or (i) of section 

1360 [42 U.S.C. § 4101(h), (i)] that affects the area in which the improved 

real estate or mobile home securing the loan is located or that, in the 

determination of the Director, may reasonably be considered to require a 

determination under this subsection; or 

(C) results in the purchase of flood insurance coverage pursuant to the 

requirement under subsection (e)(2) of this section. 

(2) Purchaser or transferee fee 

The purchaser or transferee of such a loan may be charged the fee in the 

case of sale or transfer of the loan. 

So in original. Probably should be followed by “of the National Flood Insurance 

Act of 1968”. 

19

6 
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1306 

[42 U.S.C. § 4013] 

{Sec. 1306} 

§ 4013. Nature and limitation of insurance coverage 

(a) Regulations respecting general terms and conditions of insurability 

The Director shall from time to time, after consultation with the advisory 

committee authorized under section 4025 of this title, appropriate 

representatives of the pool formed or otherwise created under section 4051 

of this title, and appropriate representatives of the insurance authorities of 

the respective States, provide by regulation for general terms and 

conditions of insurability which shall be applicable to properties eligible for 

flood insurance coverage under section 4012 of this title, including-­

(1) the types, classes, and locations of any such properties which shall be 

eligible for flood insurance; 

(2) the nature and limits of loss or damage in any areas (or subdivisions 

thereof) which may be covered by such insurance; 

(3) the classification, limitation, and rejection of any risks which may be 

advisable; 

(4) appropriate minimum premiums; 

(5) appropriate loss-deductibles; and 

(6) any other terms and conditions relating to insurance coverage or 

exclusion which may be necessary to carry out the purposes of this chapter. 

(b) Regulations respecting amount of coverage 

In addition to any other terms and conditions under subsection (a) of this 

section, such regulations shall provide that-­

(1) any flood insurance coverage based on chargeable premium rates 

under section 4015 of this title which are less than the estimated premium 

rates under section 4014(a)(1) of this title shall not exceed-­

(A) in the case of residential properties--

20
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1306 

[42 U.S.C. § 4013] 

(i) $35,000 aggregate liability for any single-family dwelling, and 

$100,000 for any residential structurecontaining more than one dwelling 

unit, 

(ii) $10,000 aggregate liability per dwelling unit for any contents 

related to such unit, and 

(iii) in the States of Alaska and Hawaii, and in the Virgin Islands and 

Guam; the limits provided in clause (i) of this sentence shall be: $50,000 

aggregate liability for any single-family dwelling, and $150,000 for any 

residential structure containing more than one dwelling unit; 

(B) in the case of business propertieswhich are owned or leased and 

operated by small business concerns, an aggregate liability with respect to 

any single structure, including any contents thereof related to premises of 

small business occupants (as that term is defined by the Director), which 

shall be equal to (i) $100,000 plus (ii) $100,000 multiplied by the number 

of such occupants and shall be allocated among such occupants (or among 

the occupant or occupants and the owner) under regulations prescribed by 

the Director; except that the aggregate liability for the structure itself may 

in no case exceed $100,000; and 

(C) in the case of church properties and any other properties which may 

become eligible for flood insurance under section 4012 of this title-­

(i) $100,000 aggregate liability for any single structure, and 

(ii) $100,000 aggregate liability per unit for any contents related to 

such unit; and 

(2) in the case of any residential property for which the risk premium rate 

is determined in accordance with the provisions of section 4014(a)(1) of 

this title, additional flood insurance in excess of the limits specified in 

clause (i) of subparagraph (A) of paragraph (1) shall be made available to 

every insured upon renewal and every applicant for insurance so as to 

enable such insured or applicant to receive coverage up to a total amount 

(including such limits specified in paragraph (1)(A)(i)) of $250,000; 

(3) in the case of any residential property for which the risk premium rate 

is determined in accordance with the provisions of section 4014(a)(1) of 

this title, additional flood insurance in excess of the limits specified in 

clause (ii) of subparagraph (A) of paragraph (1) shall be made available to 

21
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1306 

[42 U.S.C. § 4013] 

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 (including such limits specified in paragraph (1)(A)(ii)) of 

$100,000; 

(4) in the case of any nonresidential property, including churches, for 

which the risk premium rate is determined in accordance with the 

provisions of section 4014(a)(1) of this title, additional flood insurance in 

excess of the limits specified in subparagraphs (B) and (C) of paragraph (1) 

shall be made available to every insured upon renewal and every applicant 

for insurance, in respect to any single structure, up to a total amount 

(including such limit specified in subparagraph (B) or (C) of paragraph (1), 

as applicable) of $500,000 for each structure and $500,000 for any 

contents related to each structure; and 

(5) any flood insurance coverage which may be made available in excess 

of the limits specified in subparagraph (A), (B), or (C) of paragraph (1), 

shall be based only on chargeable premium rates under section 4015 of this 

title, which are not less than the estimated premium rates under section 

4014(a)(1) of this title, and the amount of such excess coverage shall not in 

any case exceed an amount equal to the applicable limit so specified (or 

allocated) under paragraph (1)(C), (2), (3), or (4), as applicable. 

(c) Effective date of policies 

(1) Waiting period 

Except as provided in paragraph (2), coverage under a new contract for 

flood insurance coverage under this chapter entered into after September 

23, 1994, and any modification to coverage under an existing flood 

insurance contract made after September 23, 1994, shall become effective 

upon the expiration of the 30-day period beginning on the date that all 

obligations for such coverage (including completion of the application and 

payment of any initial premiums owed) are satisfactorily completed. 

(2) Exception 

The provisions of paragraph (1) shall not apply to-­

(A) the initial purchase of flood insurance coverage under this chapter 

when the purchase of insurance is in connection with the making, 

increasing, extension, or renewal of a loan; or 

22
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1306 

[42 U.S.C. § 4013] 

(B) the initial purchase of flood insurance coverage pursuant to a 

revision or updating of floodplain areas or flood-risk zones under section 

4101(f) of this title, if such purchase occurs during the 1-year period 

beginning upon publication of notice of the revision or updating under 

section 4101(h) of this title. 

{Sec. 1307} 

§ 4014. Estimates of premium rates 

(a) Studies and investigations 

The Director is authorized to undertake and carry out such studies and 

investigations and receive or exchange such information as may be 

necessary to estimate, and shall from time to time estimate, on an area, 

subdivision, or other appropriate basis-­

(1) the risk premium rates for flood insurance which-­

(A) based on consideration of the risk involved and accepted actuarial 

principles, and 

(B) including-­

(i) the applicable operating costs and allowances set forth in the 

schedules prescribed under section 4018 of this title and reflected in such 

rates, 

(ii) any administrative expenses (or portion of such expenses) of 

carrying out the flood insurance program which, in his discretion, should 

properly be reflected in such rates, and 

(iii) any remaining administrative expenses incurred in carrying out 

the flood insurance and floodplain management programs (including the 

costs of mapping activities under section 4101 of this title) not included 

under clause (ii), which shall be recovered by a fee charged to 

policyholders and such fee shall not be subject to any agents' commissions, 

company expense allowances, or State or local premium taxes, 

23
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1307 

[42 U.S.C. § 4014] 

would be required in order to make such insurance available on an actuarial 

basis for any types and classes of properties for which insurance coverage 

is available under section 4012(a) of this title (or is recommended to the 

Congress under section 4012(b) of this title); 

(2) the rates, if less than the rates estimated under paragraph (1), which 

would be reasonable, would encourage prospective insureds to purchase 

flood insurance, and would be consistent with the purposes of this chapter, 

and which, together with a fee charged to policyholders that shall not be 

not subject to any agents' commission, company expenses allowances, or 

State or local premium taxes, shall include any administrative expenses 

incurred in carrying out the flood insurance and floodplain management 

programs (including the costs of mapping activities under section 4101 of 

this title); and 

(3) the extent, if any, to which federally assisted or other flood protection 

measures initiated after August 1, 1968, affect such rates. 

(b) Utilization of services of other Departments and agencies 

In carrying out subsection (a) of this section, the Director shall, to the 

maximum extent feasible and on a reimbursement basis, utilize the services 

of the Department of the Army, the Department of the Interior, the 

Department of Agriculture, the Department of Commerce, and the 

Tennessee Valley Authority, and, as appropriate, other Federal 

departments or agencies, and for such purposes may enter into agreements 

or other appropriate arrangements with any persons. 

(c) Priority to studies and investigations in States or areas evidencing positive 

interest in securing insurance under program 

The Director shall give priority to conducting studies and investigations 

and making estimates under this section in those States or areas (or 

subdivisions thereof) which he has determined have evidenced a positive 

interest in securing flood insurance coverage under the flood insurance 

program. 

(d) Parishes of Louisiana; premium rates 

24
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1307 

[42 U.S.C. § 4014] 

Notwithstanding any other provision of law, any structure existing on 

December 31, 1973, and located within Avoyelles, Evangeline, Rapides, or 

Saint Landry Parish in the State of Louisiana, which the Director 

determines is subject to additional flood hazards as a result of the 

construction or operation of the Atchafalaya Basin Levee System, shall be 

eligible for flood insurance under this chapter (if and to the extent it is 

eligible for such insurance under the other provisions of this chapter) at 

premium rates that shall not exceed those which would be applicable if 

such additional hazards did not exist. 

(e) Eligibility of community making adequate progress on construction of flood protection system for rates not exceeding those 

applicable to completed flood protection system; determination 

of adequate progress 

Notwithstanding any other provision of law, any community that has 

made adequate progress, acceptable to the Director, on the construction of 

a flood protection system which will afford flood protection for the onehundred year frequency flood as determined by the Director, shall be 

eligible for flood insurance under this chapter (if and to the extent it is 

eligible for such insurance under the other provisions of this chapter) at 

premium rates not exceeding those which would be applicable under this 

section if such flood protection system had been completed. The Director 

shall find that adequate progress on the construction of a flood protection 

system as required herein has been only if (1) 100 percent of the project 

cost of the system has been authorized, (2) at least 60 percent of the 

project cost of the system has been appropriated, (3) at least 50 percent of 

the project cost of the system has been expended, and (4) the system is at 

least 50 percent completed. 

(f) Availability of flood insurance in communities restoring 

disaccredited flood protection systems; criteria; rates 

Notwithstanding any other provision of law, this subsection shall only 

apply in a community which has been determined by the Director of the 

Federal Emergency Management Agency to be in the process of restoring 

flood protection afforded by a flood protection system that had been 

previously accredited on a Flood Insurance Rate Map as providing 100-

year frequency flood protection but no longer does so. Except as provided 

in this subsection, in such a community, flood insurance shall be made 

available to those properties impacted by the disaccreditation of the flood 

protection system at premium rates that do not exceed those which would 

25
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1307 

[42 U.S.C. § 4014] 

be applicable to any property located in an area of special flood hazard, the 

construction of which was started prior to the effective date of the initial 

Flood Insurance Rate Map published by the Director for the community in 

which such property is located. A revised Flood Insurance Rate Map shall 

be prepared for the community to delineate as Zone AR the areas of special 

flood hazard that result from the disaccreditation of the flood protection 

system. A community will be considered to be in the process of restoration 

if-­

(1) the flood protection system has been deemed restorable by a Federal 

agency in consultation with the local project sponsor; 

(2) a minimum level of flood protection is still provided to the community 

by the disaccredited system; and 

(3) restoration of the flood protection system is scheduled to occur 

within a designated time period and in accordance with a progress plan 

negotiated between the community and the Federal Emergency 

Management Agency. 

Communities that the Director of the Federal Emergency Management 

Agency determines to meet the criteria set forth in paragraphs (1) and (2) 

as of January 1, 1992, shall not be subject to revised Flood Insurance Rate 

Maps that contravene the intent of this subsection. Such communities shall 

remain eligible for C zone rates for properties located in zone AR for any 

policy written prior to promulgation of final regulations for this section. 

Floodplain management criteria for such communities shall not require the 

elevation of improvements to existing structures and shall not exceed 3 feet 

above existing grade for new construction, provided the base flood 

elevation based on the disaccredited flood control system does not exceed 

five feet above existing grade, or the remaining new construction in such 

communities is limited to infill sites, rehabilitation of existing structures, or 

redevelopment of previously developed areas. The Director of the Federal 

Emergency Management Agency shall develop and promulgate regulations 

to implement this subsection, including minimum floodplain management 

criteria, within 24 months after October 28, 1992. 

26
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1308 

[42 U.S.C. § 4015] 

{Sec. 1308} 

§ 4015. Chargeable premium rates 

(a) Establishment; terms and conditions 

On the basis of estimates made under section 4014 of this title, and such 

other information as may be necessary, the Director shall from time to time, 

after consultation with the advisory committee authorized under section 

4025 of this title, appropriate representatives of the pool formed or 

otherwise created under section 4051 of this title, and appropriate 

representatives of the insurance authorities of the respective States, 

prescribe by regulation-­

(1) chargeable premium rates for any types and classes of properties for 

which insurance coverage shall be available under section 4012 of this title 

(at less than the estimated risk premium rates under section 4014(a)(1) of 

this title, where necessary), and 

(2) the terms and conditions under which, and the areas (including 

subdivisions thereof) within which, such rates shall apply. 

(b) Considerations for rates 

Such rates shall, insofar as practicable, be-­

(1) based on a consideration of the respective risks involved, including 

differences in risks due to land use measures, flood-proofing, flood 

forecasting, and similar measures. 

(2) adequate, on the basis of accepted actuarial principles, to provide 

reserves for anticipated losses, or, if less than such amount, consistent with 

the objective of making flood insurance available where necessary at 

reasonable rates so as to encourage prospective insureds to purchase such 

insurance and with the purposes of this chapter, 

(3) adequate, together with the fee under paragraph (1)(B)(iii) or (2) of 

section 4014(a) of this title, to provide for any administrative expenses of 

the flood insurance and floodplain management programs (including the 

costs of mapping activities under section 4101 of this title), and 

27
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1308 

[42 U.S.C. § 4015] 

(4) stated so as to reflect the basis for such rates, including the 

differences (if any) between the estimated risk premium rates under section 

4014(a)(1) of this title and the estimated rates under section 4014(a)(2) of 

this title. 

(c) Rate with respect to property the construction or substantial 

improvement of which has been started after December 31, 1974, 

or effective date of initial rate map published for area in which 

property is located, whichever is later 

Subject only to the limitation under subsection (e) of this section, the 

chargeable rate with respect to any property, the construction or substantial 

improvements of which the Director determines has been started after 

December 31, 1974, or the effective date of the initial rate map published 

by the Director under paragraph (2) of section 4101 of this title for the area 

in which such property is located, whichever is later, shall not be less than 

the applicable estimated risk premium rate for such area (or subdivision 

thereof) under section 4014(a)(1) of this title. 

(d) Payment of certain sums to Director; deposits in Fund 

With respect to any chargeable premium rate prescribed under this 

section, a sum equal to the portion of the rate that covers any 

administrative expenses of carrying out the flood insurance and floodplain 

management programs which have been estimated under paragraphs 

(1)(B)(ii) and (1)(B)(iii) of section 4014(a) of this title or paragraph (2) of 

such section (including the fees under such paragraphs), shall be paid to the 

Director. The Director shall deposit the sum in the National Flood 

Insurance Fund established under section 4017 of this title. 

(e) Annual limitation on premium increases 

Notwithstanding any other provision of this chapter, the chargeable risk 

premium rates for flood insurance under this chapter for any properties 

within any single risk classification may not be increased by an amount that 

would result in the average of such rate increases for properties within the 

risk classification during any 12-month period exceeding 10 percent of the 

average of the risk premium rates for properties within the risk 

classification upon the commencement of such 12-month period. 

28
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1310 

[42 U.S.C. § 4017] 

{Sec. 1309} 

§ 4016. Financing provisions; issuance of notes or other obligations; 

limitation; report to Congressional committees; deposits in Fund 

(a) All authority which was vested in the Housing and Home Finance 

Administrator by virtue of section 2414(e) of this title (pertaining to the 

issue of notes or other obligations to the Secretary of the Treasury), as 

amended by subsections (a) and (b) of section 1303 of this Act, shall be 

available to the Director for the purpose of carrying out the flood insurance 

program under this chapter; except that the total amount of notes and 

obligations which may be issued by the Director pursuant to such authority 

(1) without the approval of the President, may not exceed $500,000,000, 

and (2) with the approval of the President, may not exceed 

$1,000,000,000. The Director shall report to the Committee on Banking, 

Finance and Urban Affairs of the House of Representatives and the 

Committee on Banking, Housing, and Urban Affairs of the Senate at any 

time when he requests the approval of the President in accordance with the 

preceding sentence. 

(b) Any funds borrowed by the Director under this authority shall, from 

time to time, be deposited in the National Flood Insurance Fund established 

under section 4017 of this title. 

{Sec. 1310} 

§ 4017. National Flood Insurance Fund 

(a) Establishment; availability 

To carry out the flood insurance program authorized by this chapter, the 

Director shall establish in the Treasury of the United States a National 

Flood Insurance Fund (hereinafter referred to as the “fund”) which shall be 

an account separate from any other accounts or funds available to the 

Director and shall be available as described in subsection (f) of this section, 

without fiscal year limitation (except as otherwise provided in this section)-

-

(1) for making such payments as may, from time to time, be required 

under section 4054 of this title; 

29
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1310 

[42 U.S.C. § 4017] 

(2) to pay reinsurance claims under the excess loss reinsurance coverage 

provided under section 4055 of this title; 

(3) to repay to the Secretary of the Treasury such sums as may be 

borrowed from him (together with interest) in accordance with the 

authority provided in section 4016 of this title; and 

(4) to the extent approved in appropriations Acts, to pay any 

administrative expenses of the flood insurance and floodplain management 

programs (including the costs of mapping activities under section 4101 of 

this title); 

(5) for the purposes specified in subsection (d) of this section under the 

conditions provided therein; 

(6) for carrying out the program under section 4022(b) of this title; 

(7) for transfers to the National Flood Mitigation Fund, but only to the 

extent provided in section 4104d(b)(1) of this title; and 

(8) for costs of preparing the report under section 577 of the Riegle 

Community Development and Regulatory Improvement Act of 1994, 

except that the fund shall be available for the purpose under this paragraph 

in an amount not to exceed an aggregate of $5,000,000 over the 2-year 

period beginning on September 23, 1994. 

(b) Credits to Fund 

The fund shall be credited with-­

(1) such funds borrowed in accordance with the authority provided in 

section 4016 of this title as may from time to time be deposited in the fund; 

(2) premiums, fees, or other charges which may be paid or collected in 

connection with the excess loss reinsurance coverage provided under 

section 4055 of this title; 

(3) such amounts as may be advanced to the fund from appropriations in 

order to maintain the fund in an operative condition adequate to meet its 

liabilities; 

30
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1310 

[42 U.S.C. § 4017] 

(4) interest which may be earned on investments of the fund pursuant to 

subsection (c) of this section; 

(5) such sums as are required to be paid to the Director under section 

4015(d) of this title; and 

(6) receipts from any other operations under this chapter (including 

premiums under the conditions specified in subsection (d) of this section, 

and salvage proceeds, if any, resulting from reinsurance coverage). 

(c) Investment of moneys in obligations issued or guaranteed by United 

States 

If, after-­

(1) all outstanding obligations of the fund have been liquidated, and 

(2) any outstanding amounts which may have been advanced to the fund 

from appropriations authorized under section 4127(a)(2)(B) of this title 

have been credited to the appropriation from which advanced, with interest 

accrued at the rate prescribed under section 2414(e) of this title, as in effect 

immediately prior to August 1, 1968, 

the Director determines that the moneys of the fund are in excess of current 

needs, he may request the investment of such amounts as he deems 

advisable by the Secretary of the Treasury in obligations issued or 

guaranteed by the United States. 

(d) Availability of Fund if operation of program is carried out through 

facilities of Federal Government 

In the event the Director makes a determination in accordance with the 

provisions of section 4071 of this title that operation of the flood insurance 

program, in whole or in part, should be carried out through the facilities of 

the Federal Government, the fund shall be available for all purposes 

incident thereto, including-­

(1) cost incurred in the adjustment and payment of any claims for losses, 

and 

(2) payment of applicable operating costs set forth in the schedules 

prescribed under section 4018 of this title, 

31
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1310 

[42 U.S.C. § 4017] 

for so long as the program is so carried out, and in such event any 

premiums paid shall be deposited by the Director to the credit of the fund. 

(e) Annual budget 

An annual business-type budget for the fund shall be prepared, 

transmitted to the Congress, considered, and enacted in the manner 

prescribed by sections 9103 and 9104 of title 31, United States Code, for 

wholly-owned Government corporations. 

(f) Availability of funds dependent on future appropriations acts 

The fund shall be available, with respect to any fiscal year beginning on 

or after October 1, 1981, only to the extent approved in appropriation 

Acts; except that the fund shall be available for the purpose described in 

subsection (d)(1) of this section without such approval. 

{Sec. 1311} 

§ 4018. Operating costs and allowances; definitions 

(a) The Director shall from time to time negotiate with appropriate 

representatives of the insurance industry for the purpose of establishing-­

(1) a current schedule of operating costs applicable both to risk-sharing 

insurance companies and other insurers and to insurance companies and 

other insurers, insurance agents and brokers, and insurance adjustment 

organizations participating on other than a risk-sharing basis, and 

(2) a current schedule of operating allowances applicable to risk-sharing 

insurance companies and other insurers, 

which may be payable in accordance with the provisions of subchapter II of 

this chapter [42 U.S.C. § 4041 et seq.], and such schedules shall from time 

to time be prescribed in regulations. 

(b) For purposes of subsection (a) of this section-­

(1) the term “operating costs” shall (without limiting such term) include--

32
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1313 

(A) expense reimbursements covering the direct, actual, and necessary 

expenses incurred in connection with selling and servicing flood insurance 

coverage; 

(B) reasonable compensation payable for selling and servicing flood 

insurance coverage, or commissions or service fees paid to producers; 

(C) loss adjustment expenses; and 

(D) other direct, actual, and necessary expenses which the Director 

finds are incurred in connection with selling or servicing flood insurance 

coverage; and 

(2) the term “operating allowances” shall (without limiting such term) 

include amounts for profit and contingencies which the Director finds 

reasonable and necessary to carry out the purposes of this chapter. 

{Sec. 1312} 

§ 4019. Payment of claims 

The Director is authorized to prescribe regulations establishing the 

general method or methods by which proved and approved claims for 

losses may be adjusted and paid for any damage to or loss of property 

which is covered by flood insurance made available under the provisions of 

this chapter. 

{Sec. 1313} 

§ 4020. Dissemination of flood insurance information 

The Director shall from time to time take such action as may be necessary 

in order to make information and data available to the public, and to any 

State or local agency or official, with regard to­­

(1) the flood insurance program, its coverage and objectives, and 

(2) estimated and chargeable flood insurance premium rates, including 

the basis for and differences between such rates in accordance with the 

provisions of section 4015 of this title. 

33
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1315 

§ 4021. Repealed 

Act of Dec. 31, 1973, P. L. 93-234, Title II, §203, 87 Stat. 982. 

{Sec. 1315} 

§ 4022. State and local land use controls 

(a) Requirement for participation in flood insurance program 

(1) In general 

After December 31, 1971, no new flood insurance coverage shall be 

provided under this chapter in any area (or subdivision thereof) unless an 

appropriate public body shall have adopted adequate land use and control 

measures (with effective enforcement provisions) which the Director finds 

are consistent with the comprehensive criteria for land management and use 

under section 4102 of this title. 

(2) Agricultural structures 

(A) Activity restrictions 

Notwithstanding any other provision of law, the adequate land use and 

control measures required to be adopted in an area (or subdivision thereof) 

pursuant to paragraph (1) may provide, at the discretion of the appropriate 

State or local authority, for the repair and restoration to predamaged 

conditions of an agricultural structure that-­

(i) is a repetitive loss structure; or 

(ii) has incurred flood-related damage to the extent that the cost of 

restoring the structure to its predamaged condition would equal or exceed 

50 percent of the market value of the structure before the damage 

occurred. 

34
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1315 

[42 U.S.C. § 4023] 

(B) Premium rates and coverage 

To the extent applicable, an agricultural structure repaired or restored 

pursuant to subparagraph (A) shall pay chargeable premium rates 

established under section 4015 of this title at the estimated risk premium 

rates under section 4014(a)(1) of this title. If resources are available, the 

Director shall provide technical assistance and counseling, upon request of 

the owner of the structure, regarding wet flood-proofing and other flood 

damage reduction measures for agricultural structures. The Director shall 

not be required to make flood insurance coverage available for such an 

agricultural structure unless the structure is wet flood-proofed through 

permanent or contingent measures applied to the structure or its contents 

that prevent or provide resistance to damage from flooding by allowing 

flood waters to pass through the structure, as determined by the Director. 

(C) Prohibition on disaster relief 

Notwithstanding any other provision of law, any agricultural structure 

repaired or restored pursuant to subparagraph (A) shall not be eligible for 

disaster relief assistance under any program administered by the Director or 

any other Federal agency. 

(D) Definitions 

For purposes of this paragraph-­

(i) the term “agricultural structure” means any structure used 

exclusively in connection with the production, harvesting, storage, raising, 

or drying of agricultural commodities; and 

(ii) the term “agricultural commodities” means agricultural 

commodities and livestock. 

(b) Community rating system and incentives for community floodplain 

management 

(1) Authority and goals 

The Director shall carry out a community rating system program, under 

which communities participate voluntarily--

35
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1315 

[42 U.S.C. § 4022] 

(A) to provide incentives for measures that reduce the risk of flood or 

erosion damage that exceed the criteria set forth in section 4102 of this title 

and evaluate such measures; 

(B) to encourage adoption of more effective measures that protect 

natural and beneficial floodplain functions; 

(C) to encourage floodplain and erosion management; and 

(D) to promote the reduction of Federal flood insurance losses. 

(2) Incentives 

The program shall provide incentives in the form of credits on premium 

rates for flood insurance coverage in communities that the Director 

determines have adopted and enforced measures that reduce the risk of 

flood and erosion damage that exceed the criteria set forth in section 4102 

of this title. In providing incentives under this paragraph, the Director may 

provide for credits to flood insurance premium rates in communities that 

the Director determines have implemented measures that protect natural 

and beneficial floodplain functions. 

(3) Credits 

The credits on premium rates for flood insurance coverage shall be based 

on the estimated reduction in flood and erosion damage risks resulting from 

the measures adopted by the community under this program. If a 

community has received mitigation assistance under section 4104c of this 

title, the credits shall be phased in a manner, determined by the Director, to 

recover the amount of such assistance provided for the community. 

(4) Reports 

Not later than 2 years after September 23, 1994, and not less than every 

2 years thereafter, the Director shall submit a report to the Congress 

regarding the program under this subsection. Each report shall include an 

analysis of the cost-effectiveness of the program, any other 

accomplishments or shortcomings of the program, and any 

recommendations of the Director for legislation regarding the program. 

36
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1318 

{Sec. 1316} 

§ 4023. Properties in violation of State and local law 

No new flood insurance coverage shall be provided under this chapter for 

any property which the Director finds has been declared by a duly 

constituted State or local zoning authority, or other authorized public 

body, to be in violation of State or local laws, regulations, or ordinances 

which are intended to discourage or otherwise restrict land development or 

occupancy in flood-prone areas. 

{Sec. 1317} 

§ 4024. Coordination with other programs 

In carrying out this chapter, the Director shall consult with other 

departments and agencies of the Federal Government, and with interstate, 

State, and local agencies having responsibilities for flood control, flood 

forecasting, or flood damage prevention, in order to assure that the 

programs of such agencies and the flood insurance program authorized 

under this chapter are mutually consistent. 

{Sec. 1318} 

§ 4025. Flood insurance advisory committee 

(a) Appointment; duties 

The Director shall appoint a flood insurance advisory committee without 

regard to the provisions of title 5, United States Code, governing 

appointments in the competitive service, and such committee shall advise 

the Director in the preparation of any regulations prescribed in accordance 

with this chapter and with respect to policy matters arising in the 

administration of this chapter, and shall perform such other responsibilities 

as the Director may, from time to time, assign to such committee. 

(b) Membership 

Such committee shall consist of not more than fifteen persons and such 

persons shall be selected from among representatives of--

37
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1318 

(1) the insurance industry, 

(2) State and local governments, 

(3) lending institutions, 

(4) the homebuilding industry, and 

(5) the general public. 

(c) Compensation and travel expenses 

Members of the committee shall, while attending conferences or meetings 

thereof, be entitled to receive compensation at a rate fixed by the Director 

but not exceeding $100 per day, including traveltime, and while so serving 

away from their homes or regular places of business they may be allowed 

travel expenses, including per diem in lieu of subsistence, as is authorized 

under section 5703 of title 5, United States Code, for persons in the 

Government service employed intermittently. 

{Sec. 1319} 

§ 4026. Expiration of program 

No new contract for flood insurance under this chapter shall be entered 

into after September 30, 1997. 

{Sec. 1320} 

§ 4027. Biennial report to President 

(a) In general 

The Director shall biennially submit a report of operations under this 

chapter to the President for submission to the Congress. 

(b) Effects of flood insurance program 

The Director shall include, as part of the biennial report submitted under 

subsection (a) of this section, a chapter reporting on the effects on the 

38
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1322 

[42 U.S.C. § 4029] 

flood insurance program observed through implementation of requirements 

under the Riegle Community Development and Regulatory Improvement 

Act of 1994. 

{Sec. 1321} 

§ 4028. Coastal Barrier Resources System 

(a) No new flood insurance coverage may be provided under this chapter 

on or after October 1, 1983, for any new construction or substantial 

improvements of structures located on any coastal barrier within the 

Coastal Barrier Resources System established by section 3503 of title 16. A 

federally insured financial institution may make loans secured by structures 

which are not eligible for flood insurance by reason of this section. 

(b) No new flood insurance coverage may be provided under this chapter 

after the expiration of the 1-year period beginning on November 16, 1990, 

for any new construction or substantial improvements of structures located 

in any area identified and depicted on the maps referred to in section 

3503(a) of title 16 as an area that is (1) not within the Coastal Barrier 

Resources System and (2) is in an otherwise protected area. 

Notwithstanding the preceding sentence, new flood insurance coverage 

may be provided for structures in such protected areas that are used in a 

manner consistent with the purpose for which the area is protected. 

{Sec. 1322} 

§ 4029. Colorado River Floodway 

(a) Renewal and transfer of policies; acquisition of policies after filing 

of maps 

Owners of existing National Flood Insurance Act policies with respect to 

structures located within the Floodway established under section 1600c of 

title 43, United States Code, shall have the right to renew and transfer such 

policies. Owners of existing structures located within said Floodway on 

October 8, 1986, who have not acquired National Flood Insurance Act 

policies shall have the right to acquire policies with respect to such 

structures for six months after the Secretary of the Interior files the 

39
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1322 

[42 U.S.C. § 4029] 

Floodway maps required by section 1600c(b)(2) of title 43 and to renew 

and transfer such policies. 

(b) New coverage for new construction or substantial improvements 

No new flood insurance coverage may be provided under this chapter on 

or after a date six months after October 8, 1986, for any new construction 

or substantial improvements of structures located within the Colorado 

River Floodway established by section 1600c of title 43, United States 

Code. New construction includes all structures that are not insurable prior 

to that date. 

(c) Establishment of temporary boundaries 

The Secretary of the Interior may by rule after notice and comment 

pursuant to section 553 of title 5 establish temporary Floodway boundaries 

to be in effect until the maps required by section 1600c(b)(2) of title 43 are 

filed, for the purpose of enforcing subsections (b) and (d) of this section. 

(d) Loans by federally supervised, approved, regulated, or insured 

financial institutions 

A regulated lending institution or Federal agency lender may make loans 

secured by structures which are not eligible for flood insurance by reason 

of this section: Provided, That prior to making such a loan, such institution 

determines that the loans or structures securing the loan are within the 

Floodway. 

40
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1331 

[42 U.S.C. § 4051] 

UNITED STATES CODE

TITLE 42--THE PUBLIC HEALTH AND WELFARE

CHAPTER 50--NATIONAL FLOOD INSURANCE

SUBCHAPTER II--ORGANIZATION AND ADMINISTRATION OF 

FLOOD INSURANCE PROGRAM 

{Sec. 1330} 

§ 4041. Implementation of program 

Following such consultation with representatives of the insurance 

industry as may be necessary, the Director shall implement the flood 

insurance program authorized under subchapter I of this chapter [42 

U.S.C. § 4011 et seq.]in accordance with the provisions of part A of this 

subchapter [42 U.S.C. § 4051 et seq.]and, if a determination is made by 

him under section 4071 of this title, under part B of this subchapter [42 

U.S.C. § 4071 et seq.]. 

PART A--INDUSTRY PROGRAM WITH FEDERAL FINANCIAL 

ASSISTANCE 

{Sec. 1331} 

§ 4051. Industry flood insurance pool; requirements for participation 

(a) The Director is authorized to encourage and otherwise assist any 

insurance companies and other insurers which meet the requirements 

prescribed under subsection (b) to form, associate, or otherwise join 

together in a pool­­

(1) in order to provide the flood insurance coverage authorized under 

chapter I [42 U.S.C. § 4011 et seq.], and 

(2) for the purpose of assuming, on such terms and conditions as may be 

agreed upon, such financial responsibility as will enable such companies 

and other insurers, with the Federal financial and other assistance available 

41
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1331 

[42 U.S.C. § 4051] 

under this title, to assume a reasonable proportion of responsibility for the 

adjustment and payment of claims for losses under the flood insurance 

program. 

(b) In order to promote the effective administration of the flood insurance 

program under this part [42 USCS §4051 et seq.], and to assure that the 

objectives of this title are furthered, the Director is authorized to prescribe 

appropriate requirements for insurance companies and other insurers 

participating in such pool including, but not limited to, minimum 

requirements for capital or surplus or assets. 

{Sec. 1332} 

§ 4052. Agreements with flood insurance pool 

(a) Authorization 

The Director is authorized to enter into such agreements with the pool 

formed or otherwise created under this part [42 U.S.C. § 4051 et seq.] as 

he deems necessary to carry out the purposes of this chapter [42 U.S.C. 

§ 4001 et seq.],. 

(b) Terms and conditions 

Such agreements shall specify-­

(1) the terms and conditions under which risk capital will be available for 

the adjustment and payment of claims, 

(2) the terms and conditions under which the pool (and the companies 

and other insurers participating therein) shall participate in premiums 

received and profits or losses realized or sustained, 

(3) the maximum amount of profit, established by the Director and set 

forth in the schedules prescribed under section 4018 of this title, which may 

be realized by such pool (and the companies and other insurers 

participating therein), 

42
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1333 

[42 U.S.C. § 4053] 

(4) the terms and conditions under which operating costs and allowances 

set forth in the schedules prescribed under section 4018 of this title may be 

paid, and 

(5) the terms and conditions under which premium equalization payments 

under section 4054 of this title will be made and reinsurance claims under 

section 4055 of this title will be paid. 

(c) Additional provisions 

In addition, such agreements shall contain such provisions as the Director 

finds necessary to assure that-­

(1) no insurance company or other insurer which meets the requirements 

prescribed under section 4051(b) of this title, and which has indicated an 

intention to participate in the flood insurance program on a risk-sharing 

basis, will be excluded from participating in the pool, 

(2) the insurance companies and other insurers participating in the pool 

will take whatever action may be necessary to provide continuity of flood 

insurance coverage by the pool, and 

(3) any insurance companies and other insurers, insurance agents and 

brokers, and insurance adjustment organizations will be permitted to 

cooperate with the pool as fiscal agents or otherwise, on other than a risksharing basis, to the maximum extent practicable. 

{Sec. 1333} 

§ 4053. Adjustment and payment of claims; judicial review; 

limitations; jurisdiction 

The insurance companies and other insurers which form, associate, or 

otherwise join together in the pool under this part may adjust and pay all 

claims for proved and approved losses covered by flood insurance in 

accordance with the provisions of this chapter and, upon the disallowance 

by any such company or other insurer of any such claim, or upon the 

refusal of the claimant to accept the amount allowed upon any such claim, 

the claimant, within one year after the date of mailing of notice of 

disallowance or partial disallowance of the claim, may institute an action on 

43
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1333 

[42 U.S.C. § 4053] 

such claim against such company or other insurer in the United States 

district court for the district in which the insured property or the major part 

thereof shall have been situated, and original exclusive jurisdiction is hereby 

conferred upon such court to hear and determine such action without 

regard to the amount in controversy. 

{Sec. 1334} 

§ 4054. Premium equalization payments; basis; aggregate amount; 

establishment of designated periods 

(a) The Director, on such terms and conditions as he may from time to 

time prescribe, shall make periodic payments to the pool formed or 

otherwise created under section 4051 of this title, in recognition of such 

reductions in chargeable premium rates under section 4015 of this title 

below estimated premium rates under section 4014(a)(1) of this title as are 

required in order to make flood insurance available on reasonable terms 

and conditions. 

(b) Designated periods under this section and the methods for 

determining the sum of premiums paid or payable during such periods shall 

be established by the Director. 

{Sec. 1335} 

§ 4055. Reinsurance coverage 

(a) Availability for excess losses 

The Director is authorized to take such action as may be necessary in 

order to make available, to the pool formed or otherwise created under 

section 4051 of this title, reinsurance for losses (due to claims for proved 

and approved losses covered by flood insurance) which are in excess of 

losses assumed by such pool in accordance with the excess loss agreement 

entered into under subsection (c) of this section. 

44
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1341 

[42 U.S.C. § 4072] 

(b) Availability pursuant to contract, agreement, or other 

arrangement; payment of premium, fee, or other charge 

Such reinsurance shall be made available pursuant to contract, 

agreement, or any other arrangement, in consideration of such payment of 

a premium, fee, or other charge as the Director finds necessary to cover 

anticipated losses and other costs of providing such reinsurance. 

(c) Excess loss agreement; negotiation 

The Director is authorized to negotiate an excess loss agreement, from 

time to time, under which the amount of flood insurance retained by the 

pool, after ceding reinsurance, shall be adequate to further the purposes of 

this chapter, consistent with the objective of maintaining appropriate 

financial participation and risk sharing to the maximum extent practicable 

on the part of participating insurance companies and other insurers. 

(d) Submission of excess losses on portfolio basis 

All reinsurance claims for losses in excess of losses assumed by the pool 

shall be submitted on a portfolio basis by such pool in accordance with 

terms and conditions established by the Director. 

{Sec. 1336} 

§ 4056. Emergency implementation of flood insurance program; 

applicability of other provisions of law 

(a) Notwithstanding any other provisions of this chapter, for the purpose of 

providing flood insurance coverage at the earliest possible time, the 

Director shall carry out the flood insurance program authorized under 

subchapter I of this chapter [42 U.S.C. § 4011 et seq.], during the period 

ending September 30, 1996, in accordance with the provisions of this part 

and the other provisions of this chapter insofar as they relate to this part 

but subject to the modifications made by or under subsection (b) of this 

section. 

(b) In carrying out the flood insurance program pursuant to subsection (a) 

of this section, the Director--

45
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1336 

[42 U.S.C. § 4056] 

(1) shall provide insurance coverage without regard to any estimated risk 

premium rates which would otherwise be determined under section 4014 of 

this title; and 

(2) shall utilize the provisions and procedures contained in or prescribed 

by this part (other than section 4054 of this title) and sections 4081 and 

4082 of this title to such extent and in such manner as he may consider 

necessary or appropriate to carry out the purpose of this section. 

Part B--Government Program With Industry Assistance 

{Sec. 1340} 

§ 4071. Federal operation of program; determination by Director; 

fiscal agents; report to Congress 

(a) If at any time, after consultation with representatives of the insurance 

industry, the Director determines that operation of the flood insurance 

program as provided under part A [42 U.S.C. § 4051 et seq.] cannot be 

carried out, or that such operation, in itself, would be assisted materially by 

the Federal Government's assumption, in whole or in part, of the 

operational responsibility for flood insurance under this chapter (on a 

temporary or other basis) he shall promptly undertake any necessary 

arrangements to carry out the program of flood insurance authorized under 

subchapter I of this chapter [42 U.S.C. § 4011 et seq.] through the facilities 

of the Federal Government, utilizing, for purposes of providing flood 

insurance coverage, either-­

(1) insurance companies and other insurers, insurance agents and 

brokers, and insurance adjustment organizations, as fiscal agents of the 

United States, 

(2) such other officers and employees of any executive agency (as defined 

in section 105 of title 5 of the United States Code) as the Director and the 

head of any such agency may from time to time, agree upon, on a 

reimbursement or other basis, or 

(3) both the alternatives specified in paragraphs (1) and (2). 

46
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1341 

[42 U.S.C. § 4072] 

(b) Upon making the determination referred to in subsection (a) of this 

section, the Director shall make a report to the Congress and, at the same 

time, to the private insurance companies participating in the National Flood 

Insurance Program pursuant to section 4017 of this title. Such report shall­

-

(1) state the reason for such determinations, 

(2) be supported by pertinent findings, 

(3) indicate the extent to which it is anticipated that the insurance 

industry will be utilized in providing flood insurance coverage under the 

program, and 

(4) contain such recommendations as the Director deems advisable. 

The Director shall not implement the program of flood insurance 

authorized under subchapter I of this chapter through the facilities of the 

Federal Government until 9 months after the date of submission of the 

report under this subsection unless it would be impossible to continue to 

effectively carry out the National Flood Insurance Program operations 

during this time. 

{Sec. 1341} 

§ 4072. Adjustment and payment of claims; judicial review; 

limitations; jurisdiction 

In the event the program is carried out as provided in section 4071 of this 

title, the Director shall be authorized to adjust and make payment of any 

claims for proved and approved losses covered by flood insurance, and 

upon the disallowance by the Director of any such claim, or upon the 

refusal of the claimant to accept the amount allowed upon any such claim, 

the claimant, within one year after the date of mailing of notice of 

disallowance or partial disallowance by the Director, may institute an 

action against the Director on such claim in the United States district court 

for the district in which the insured property or the major part thereof shall 

have been situated, and original exclusive jurisdiction is hereby conferred 

upon such court to hear and determine such action without regard to the 

amount in the controversy. 

47
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1345 

Part C--General Provisions 

{Sec. 1345} 

§ 4081. Services by insurance industry; contracts, agreements, or 

other arrangements 

(a) In administering the flood insurance program under this subchapter [42 

U.S.C. § 4041 et seq.], the Director is authorized to enter into any 

contracts, agreements, or other appropriate arrangements which may, from 

time to time, be necessary for the purpose of utilizing, on such terms and 

conditions as may be agreed upon, the facilities and services of any 

insurance companies or other insurers, insurance agents and brokers, or 

insurance adjustment organizations; and such contracts, agreements, or 

arrangements may include provision for payment of applicable operating 

costs and allowances for such facilities and services as set forth in the 

schedules prescribed under section 4018 of this title. 

(b) Any such contracts, agreements, or other arrangements may be entered 

into without regard to the provisions of section 5 of title 41, United States 

Code, or any other provision of law requiring competitive bidding and 

without regard to the provisions of the Federal Advisory Committee Act (5 

U.S.C. App.). 

(c) The Director of the Federal Emergency Management Agency shall hold 

any agent or broker selling or undertaking to sell flood insurance under this 

chapter harmless from any judgment for damages against such agent or 

broker as a result of any court action by a policyholder or applicant arising 

out of an error or omission on the part of the Federal Emergency 

Management Agency, and shall provide any such agent or broker with 

indemnification, including court costs and reasonable attorney fees, arising 

out of and caused by an error or omission on the part of the Federal 

Emergency Management Agency and its contractors. The Director of the 

Federal Emergency Management Agency may not hold harmless or 

indemnify an agent or broker for his or her error or omission. 

48
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1346 

[42 U.S.C. § 4082] 

{Sec. 1346} 

§ 4082. Use of insurance pool, companies, or other private 

organizations for certain payments 

(a) Authorization to enter into contracts for certain responsibilities 

In order to provide for maximum efficiency in the administration of the 

flood insurance program and in order to facilitate the expeditious payment 

of any Federal funds under such program, the Director may enter into 

contracts with pool formed or otherwise created under section 4051 of this 

title, or any insurance company or other private organizations, for the 

purpose of securing performance by such pool, company, or organization 

of any or all of the following responsibilities: 

(1) estimating and later determining any amounts of payments to be 

made; 

(2) receiving from the Director, disbursing, and accounting for funds in 

making such payments; 

(3) making such audits of the records of any insurance company or other 

insurer, insurance agent or broker, or insurance adjustment organization as 

may be necessary to assure that proper payments are made; and 

(4) otherwise assisting in such manner as the contract may provide to 

further the purposes of this chapter. 

(b) Terms and conditions of contract 

Any contract with the pool or an insurance company or other private 

organization under this section may contain such terms and conditions as 

the Director finds necessary or appropriate for carrying out responsibilities 

under subsection (a) of this section, and may provide for payment of any 

costs which the Director determines are incidental to carrying out such 

responsibilities which are covered by the contract. 

(c) Competitive bidding 

Any contract entered into under subsection (a) of this section may be 

entered into without regard to section 5 of title 41, United States Code, or 

any other provision of law requiring competitive bidding. 

49
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1346 

[42 U.S.C. § 4082] 

(d) Findings of Director 

No contract may be entered into under this section unless the Director 

finds that the pool, company, or organization will perform its obligations 

under the contract efficiently and effectively, and will meet such 

requirements as to financial responsibility, legal authority, and other 

matters as he finds pertinent. 

(e) Bond; liability of certifying officers and disbursing officers 

(1) Any such contract may require the pool, company, or organization or 

any of its officers or employees certifying payments or disbursing funds 

pursuant to the contract, or otherwise participating in carrying out the 

contract, to give surety bond to the United States in such amount as the 

Director may deem appropriate. 

(2) No individual designated pursuant to a contract under this section to 

certify payments shall, in the absence of gross negligence or intent to 

defraud the United States, be liable with respect to any payment certified 

by him under this section. 

(3) No officer disbursing funds shall in the absence of gross negligence or 

intent to defraud the United States, be liable with respect to any payment 

by him under this section if it was based upon a voucher signed by an 

individual designated to certify payments as provided in paragraph (2) of 

this subsection. 

(f) Term of contract; renewals; termination 

Any contract entered into under this section shall be for a term of one 

year, and may be made automatically renewable from term to term in the 

absence of notice by either party of an intention to terminate at the end of 

the current term; except that the Director may terminate any such contract 

at any time (after reasonable notice to the pool, company, or organization 

involved) if he finds that the pool, company, or organization has failed 

substantially to carry out the contract, or is carrying out the contract in a 

manner inconsistent with the efficient and effective administration of the 

flood insurance program authorized under this chapter. 

50
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1348 

{Sec. 1347} 

§ 4083. Settlement of claims; arbitration 

(a) The Director is authorized to make final settlement of any claims or 

demands which may arise as a result of any financial transactions which he 

is authorized to carry out under this subchapter [42 U.S.C. § 4011 et seq.], 

and may, to assist him in making any such settlement, refer any disputes 

relating to such claims or demands to arbitration, with the consent of the 

parties concerned. 

(b) Such arbitration shall be advisory in nature, and any award, decision, or 

recommendation which may be made shall become final only upon the 

approval of the Director. 

{Sec. 1348} 

§ 4084. Records and audits 

(a) The flood insurance pool formed or otherwise created under part A of 

this subchapter [42 U.S.C. § 4051 et seq.], and any insurance company or 

other private organization executing any contract, agreement, or other 

appropriate arrangement with the Director under part B of this subchapter 

[42 U.S.C. § 4071 et seq.] or this part, shall keep such records as the 

Director shall prescribe, including records which fully disclose the total 

costs of the program undertaken or the services being rendered, and such 

other records as will facilitate an effective audit. 

(b) The Director and the Comptroller General of the United States, or any 

of their duly authorized representatives, shall have access for the purpose 

of audit and examination to any books, documents, papers, and records of 

the pool and any such insurance company or other private organization that 

are pertinent to the costs of the program undertaken or the services being 

rendered. 

51
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1360 

[42 U.S.C. § 4101] 

UNITED STATES CODE

TITLE 42--THE PUBLIC HEALTH AND WELFARE

CHAPTER 50--NATIONAL FLOOD INSURANCE

SUBCHAPTER III--COORDINATION OF FLOOD INSURANCE

WITH LAND-MANAGEMENT PROGRAMS IN FLOOD-PRONE

AREAS

{Sec. 1360} 

§ 4101. Identification of flood-prone areas 

(a) Publication of information; establishment of flood-risk zones; 

estimates of flood-caused loss 

The Director is authorized to consult with, receive information from, and 

enter into any agreements or other arrangements with the Secretaries of the 

Army, the Interior, Agriculture, and Commerce, the Tennessee Valley 

Authority, and the heads of other Federal departments or agencies, on a 

reimbursement basis, or with the head of any State or local agency, or enter 

into contracts with any persons or private firms, in order that he may-­

(1) identify and publish information with respect to all flood plain areas, 

including coastal areas located in the United States, which has special flood 

hazards, within five years following August 1, 1968, and 

(2) establish or update flood-risk zone data in all such areas, and make 

estimates with respect to the rates of probable flood caused loss for the 

various flood risk zones for each of these areas until the date specified in 

section 4026 of this title. 

(b) Accelerated identification of flood-risk zones; authority of 

Director: grants, technical assistance, transactions, and 

payments 

The Director is directed to accelerate the identification of risk zones 

within flood-prone and mudslide-prone areas, as provided by subsection 

(a)(2) of this section, in order to make known the degree of hazard within 

each such zone at the earliest possible date. To accomplish this objective, 

52
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section1360 

[42 U.S.C. § 4101] 

the Director is authorized, without regard to subsections (a) and (b) of 

section 3324 of title 31, United States Code, and section 5 of title 41, 

United States Code, to make grants, provide technical assistance, and enter 

into contracts, cooperative agreements, or other transactions, on such 

terms as he may deem appropriate, or consent to modifications thereof, and 

to make advance or progress payments in connection therewith. 

(c) Priority in allocation of manpower and other available resources 

for identification and mapping of flood hazard areas and floodrisk zones 

The Secretary of Defense (through the Army Corps of Engineers), the 

Secretary of the Interior (through the United States Geological Survey), 

the Secretary of Agriculture (through the Soil Conservation Service), the 

Secretary of Commerce (through the National Oceanic and Atmospheric 

Administration), the head of the Tennessee Valley Authority, and the heads 

of all other Federal agencies engaged in the identification or delineation of 

flood-risk zones within the several States shall, in consultation with the 

Director, give the highest practicable priority in the allocation of available 

manpower and other available resources to the identification and mapping 

of flood hazard areas and flood-risk zones, in order to assist the Director to 

meet the deadline established by this section. 

(d) Plan for bringing communities with flood-risk zones into full 

program status 

The Director shall, not later than September 30, 1984, submit to the 

Congress a plan for bringing all communities containing flood-risk zones 

into full program status by September 30, 1987. 

(e) Review of flood maps 

Once during each 5-year period (the 1st such period beginning on 

September 23, 1994) or more often as the Director determines necessary, 

the Director shall assess the need to revise and update all floodplain areas 

and flood risk zones identified, delineated, or established under this section, 

based on an analysis of all natural hazards affecting flood risks. 

(f) Updating flood maps 

The Director shall revise and update any floodplain areas and flood-risk 

zones--

53
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1360 

[42 U.S.C. § 4101] 

(1) upon the determination of the Director, according to the assessment 

under subsection (e) of this section, that revision and updating are 

necessary for the areas and zones; or 

(2) upon the request from any State or local government stating that 

specific floodplain areas or flood-risk zones in the State or locality need 

revision or updating, if sufficient technical data justifying the request is 

submitted and the unit of government making the request agrees to provide 

funds in an amount determined by the Director, but which may not exceed 

50 percent of the cost of carrying out the requested revision or update. 

(g) Availability of flood maps 

To promote compliance with the requirements of this chapter [42 U.S.C. 

§ 4001 et seq.], the Director shall make flood insurance rate maps and 

related information available free of charge to the Federal entities for 

lending regulation, Federal agency lenders, State agencies directly 

responsible for coordinating the national flood insurance program, and 

appropriate representatives of communities participating in the national 

flood insurance program, and at a reasonable cost to all other persons. Any 

receipts resulting from this subsection shall be deposited in the National 

Flood Insurance Fund, pursuant to section 4017(b)(6) of this title. 

(h) Notification of flood map changes 

The Director shall cause notice to be published in the Federal Register 

(or shall provide notice by another comparable method) of any change to 

flood insurance map panels and any change to flood insurance map panels 

issued in the form of a letter of map amendment or a letter of map revision. 

Such notice shall be published or otherwise provided not later than 30 days 

after the map change or revision becomes effective. Notice by any method 

other than publication in the Federal Register shall include all pertinent 

information, provide for regular and frequent distribution, and be at least as 

accessible to map users as notice in the Federal Register. All notices under 

this subsection shall include information on how to obtain copies of the 

changes or revisions. 

(i) Compendia of flood map changes 

Every 6 months, the Director shall publish separately in their entirety 

within a compendium, all changes and revisions to flood insurance map 

54
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section1361 

[42 U.S.C. § 4101] 

panels and all letters of map amendment and letters of map revision for 

which notice was published in the Federal Register or otherwise provided 

during the preceding 6 months. The Director shall make such compendia 

available, free of charge, to Federal entities for lending regulation, Federal 

agency lenders, and States and communities participating in the national 

flood insurance program pursuant to section 4017 of this title and at cost to 

all other parties. Any receipts resulting from this subsection shall be 

deposited in the National Flood Insurance Fund, pursuant to section 

4017(b)(6) of this title. 

(j) Provision of information 

In the implementation of revisions to and updates of flood insurance rate 

maps, the Director shall share information, to the extent appropriate, with 

the Under Secretary of Commerce for Oceans and Atmosphere and 

representatives from State coastal zone management programs. 

{Sec. 1361} 

§ 4102. Criteria for land management and use 

(a) Studies and investigations 

The Director is authorized to carry out studies and investigations, 

utilizing to the maximum extent practicable the existing facilities and 

services of other Federal departments or agencies, and State and local 

governmental agencies, and any other organizations, with respect to the 

adequacy of State and local measures in flood-prone areas, as to land 

management and use, flood control, flood zoning, and flood damage 

prevention, and may enter into any contracts, agreements, or other 

appropriate arrangements to carry out such authority. 

(b) Extent of studies and investigations 

Such studies and investigations shall include, but not be limited to, laws, 

regulations, or ordinances relating to encroachments and obstructions on 

stream channels and floodways, the orderly development and use of flood 

plains of rivers or streams, floodway encroachment lines, and flood plain 

zoning, building codes, building permits, and subdivision or other building 

restrictions. 

55
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1361 

[42 U.S.C. § 4102] 

(c) Development of comprehensive criteria designed to encourage 

adoption of adequate State and local measures. 

On the basis of such studies and investigations, and such other 

information as he deems necessary, the Director shall from time to time 

develop comprehensive criteria designed to encourage, where necessary, 

the adoption of adequate State and local measures which, to the maximum 

extent feasible, will-­

(1) constrict the development of land which is exposed to flood damage 

where appropriate, 

(2) guide the development of proposed construction away from locations 

which are threatened by flood hazards, 

(3) assist in reducing damage caused by floods, and 

(4) otherwise improve the long-range land management and use of floodprone areas, 

and he shall work closely with and provide any necessary technical 

assistance to State, interstate, and local governmental agencies, to 

encourage the application of such criteria and the adoption and 

enforcement of such measures. 

§ 4103. Repealed 

{Sec. 1363} 

§ 4104. Flood elevation determinations 

(a) Publication or notification of proposed flood elevation 

determinations 

In establishing projected flood elevations for land use purposes with 

respect to any community pursuant to section 4102 of this title, the 

56
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1363 

[42 U.S.C. § 4104] 

Director shall first propose such determinations by publication for comment 

in the Federal Register, by direct notification to the chief executive officer 

of the community, and by publication in a prominent local newspaper. 

(b) Publication of flood elevation determinations; appeal of owner or 

lessee to local government; scientific or technical knowledge or 

information as basis for appeal; modification of proposed 

determinations 

The Director shall publish notification of flood elevation determinations 

in a prominent local newspaper at least twice during the ten-day period 

following notification to the local government. During the ninety-day 

period following the second publication, any owner or lessee of real 

property within the community who believes his property rights to be 

adversely affected by the Director's proposed determination may appeal 

such determination to the local government. The sole basis for such appeal 

shall be the possession of knowledge or information indicating that the 

elevations being proposed by the Director with respect to an identified area 

having special flood hazards are scientifically or technically incorrect, and 

the sole relief which shall be granted under the authority of this section in 

the event that such appeal is sustained in accordance with subsection (e) or 

(f) of this section is a modification of the Director's proposed determination 

accordingly. 

(c) Appeals by private persons; submission of negativing or 

contradicting data to community; opinion of community 

respecting justification for appeal by community; transmission 

of individual appeals to Director; filing of community action 

with Director 

Appeals by private persons shall be made to the chief executive officer of 

the community, or to such agency as he shall publicly designate, and shall 

set forth the data that tend to negate or contradict the Director's finding in 

such form as the chief executive officer may specify. The community shall 

review and consolidate all such appeals and issue a written opinion stating 

whether the evidence presented is sufficient to justify an appeal on behalf of 

such persons by the community in its own name. Whether or not the 

community decides to appeal the Director's determination, copies of 

individual appeals shall be sent to the Director as they are received by the 

community, and the community's appeal or a copy of its decision not to 

appeal shall be filed with the Director not later than ninety days after the 

date of the second newspaper publication of the Director's notification. 

57
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1363 

[42 U.S.C. § 4104] 

(d) Administrative review of appeals by private persons; modification 

of proposed determinations; decision of Director: form and 

distribution 

In the event the Director does not receive an appeal from the community 

within the ninety days provided, he shall consolidate and review on their 

own merits, in accordance with the procedures set forth in subsection (e) of 

this section, the appeals filed within the community by private persons and 

shall make such modifications of his proposed determinations as may be 

appropriate, taking into account the written opinion, if any, issued by the 

community in not supporting such appeals. The Director's decision shall be 

in written form, and copies thereof shall be sent both to the chief executive 

officer of the community and to each individual appellant. 

(e) Administrative review of appeals by community; agencies for 

resolution of conflicting data; availability of flood insurance 

pending such resolution; time for determination of Director; 

community adoption of local land use and control measures 

within reasonable time of final determination; public inspection 

and admissibility in evidence of reports and other administrative 

information 

Upon appeal by any community, as provided by this section, the Director 

shall review and take fully into account any technical or scientific data 

submitted by the community that tend to negate or contradict the 

information upon which his proposed determination is based. The Director 

shall resolve such appeal by consultation with officials of the local 

government involved, by administrative hearing, or by submission of the 

conflicting data to an independent scientific body or appropriate Federal 

agency for advice. Until the conflict in data is resolved, and the Director 

makes a final determination on the basis of his findings in the Federal 

Register, and so notifies the governing body of the community, flood 

insurance previously available within the community shall continue to be 

available, and no person shall be denied the right to purchase such 

insurance at chargeable rates. The Director shall make his determination 

within a reasonable time. The community shall be given a reasonable time 

after the Director's final determination in which to adopt local land use and 

control measures consistent with the Director's determination. The reports 

and other information used by the Director in making his final 

determination shall be made available for public inspection and shall be 

58
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1363 

[42 U.S.C. § 4104] 

admissible in a court of law in the event the community seeks judicial 

review as provided by this section. 

(f) Reimbursement of certain expenses; appropriation authorization 

When, incident to any appeal under subsection (b) or (c) of this section, 

the owner or lessee of real property or the community, as the case may be, 

incurs expense in connection with the services of surveyors, engineers, or 

similar services, but not including legal services, in the effecting of an 

appeal which is successful in whole or part, the Director shall reimburse 

such individual or community to an extent measured by the ratio of the 

successful portion of the appeal as compared to the entire appeal and 

applying such ratio to the reasonable value of all such services, but no 

reimbursement shall be made by the Director in respect to any fee or 

expense payment, the payment of which was agreed to be contingent upon 

the result of the appeal. There is authorized to be appropriated for 

purposes of implementing this subsection, not to exceed $250,000. 

(g) Judicial review of final administrative determinations; venue; time 

for appeal; scope of review; good cause for stay of final 

determinations 

Any appellant aggrieved by any final determination of the Director upon 

administrative appeal, as provided by this section, may appeal such 

determination to the United States district court for the district within 

which the community is located not more than sixty days after receipt of 

notice of such determination. The scope of review by the court shall be as 

provided by chapter 7 of title 5, United States Code. During the pendency 

of any such litigation, all final determinations of the Director shall be 

effective for the purposes of this chapter [42 U.S.C. § 4001 et seq.] unless 

stayed by the court for good cause shown. 

59
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1364 

[42 U.S.C. § 4104a] 

{Sec. 1364} 

§ 4104a. Notice requirements 

(a) Notification of special flood hazards 

(1) Regulated lending institutions 

Each Federal entity for lending regulation (after consultation and 

coordination with the Financial Institutions Examination Council) shall by 

regulation require regulated lending institutions, as a condition of making, 

increasing, extending, or renewing any loan secured by improved real 

estate or a mobile home that the regulated lending institution determines is 

located or is to be located in an area that has been identified by the 

Director under this chapter [42 U.S.C. § 4001 et seq.] or the Flood 

Disaster Protection Act of 1973 as an area having special flood hazards, to 

notify the purchaser or lessee (or obtain satisfactory assurances that the 

seller or lessor has notified the purchaser or lessee) and the servicer of the 

loan of such special flood hazards, in writing, a reasonable period in 

advance of the signing of the purchase agreement, lease, or other 

documents involved in the transaction. The regulations shall also require 

that the regulated lending institution retain a record of the receipt of the 

notices by the purchaser or lessee and the servicer. 

(2) Federal agency lenders 

Each Federal agency lender shall by regulation require notification in the 

manner provided under paragraph (1) with respect to any loan that is made 

by the Federal agency lender and secured by improved real estate or a 

mobile home located or to be located in an area that has been identified by 

the Director under this chapter [42 U.S.C. § 4001 et seq.] or the Flood 

Disaster Protection Act of 1973 as an area having special flood hazards. 

Any regulations issued under this paragraph shall be consistent with and 

substantially identical to the regulations issued under paragraph (1). 

(3) Contents of notice 

Written notification required under this subsection shall include-­

(A) a warning, in a form to be established by the Director, stating that 

the building on the improved real estate securing the loan is located, or the 

60
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1364 

[42 U.S.C. § 4104a] 

mobile home securing the loan is or is to be located, in an area having 

special flood hazards; 

(B) a description of the flood insurance purchase requirements under 

section 102(b) of the Flood Disaster Protection Act of 1973 [42 U.S.C. 

§ 4012a(b)]; 

(C) a statement that flood insurance coverage may be purchased under 

the national flood insurance program and is also available from private 

insurers; and 

(D) any other information that the Director considers necessary to carry 

out the purposes of the national flood insurance program. 

(b) Notification of change of servicer 

(1) Lending institutions 

Each Federal entity for lending regulation (after consultation and 

coordination with the Financial Institutions Examination Council) shall by 

regulation require regulated lending institutions, in connection with the 

making, increasing, extending, renewing, selling, or transferring any loan 

described in subsection (a)(1) of this section, to notify the Director (or the 

designee of the Director) in writing during the term of the loan of the 

servicer of the loan. Such institutions shall also notify the Director (or such 

designee) of any change in the servicer of the loan, not later than 60 days 

after the effective date of such change. The regulations under this 

subsection shall provide that upon any change in the servicing of a loan, the 

duty to provide notification under this subsection shall transfer to the 

transferee servicer of the loan. 

(2) Federal agency lenders 

Each Federal agency lender shall by regulation provide for notification 

in the manner provided under paragraph (1) with respect to any loan 

described in subsection (a)(1) of this section that is made by the Federal 

agency lender. Any regulations issued under this paragraph shall be 

consistent with and substantially identical to the regulations issued under 

paragraph (1) of this subsection. 

61
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1364 

[42 U.S.C. § 4104a] 

(c) Notification of expiration of insurance 

The Director (or the designee of the Director) shall, not less than 45 days 

before the expiration of any contract for flood insurance under this chapter 

[42 U.S.C. § 4001 et seq.], issue notice of such expiration by first class 

mail to the owner of the property covered by the contract, the servicer of 

any loan secured by the property covered by the contract, and (if known to 

the Director) the owner of the loan. 

{Sec. 1365} 

§ 4104b. Standard hazard determination forms 

(a) Development 

The Director, in consultation with representatives of the mortgage and 

lending industry, the Federal entities for lending regulation, the Federal 

agency lenders, and any other appropriate individuals, shall develop a 

standard form for determining, in the case of a loan secured by improved 

real estate or a mobile home, whether the building or mobile home is 

located in an area identified by the Director as an area having special flood 

hazards and in which flood insurance under this chapter [42 U.S.C. § 4001 

et seq.] is available. The form shall be established by regulations issued not 

later than 270 days after September 23, 1994. 

(b) Design and contents 

(1) Purpose 

The form under subsection (a) of this section shall be designed to 

facilitate compliance with the flood insurance purchase requirements of this 

chapter [42 U.S.C. § 4001 et seq.]. 

(2) Contents 

The form shall require identification of the type of flood-risk zone in 

which the building or mobile home is located, the complete map and panel 

numbers for the improved real estate or property on which the mobile 

home is located, the community identification number and community 

participation status (for purposes of the national flood insurance program) 

62
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1365 

[42 U.S.C. § 4104b] 

of the community in which the improved real estate or such property is 

located, and the date of the map used for the determination, with respect to 

flood hazard information on file with the Director. If the building or mobile 

home is not located in an area having special flood hazards the form shall 

require a statement to such effect and shall indicate the complete map and 

panel numbers of the improved real estate or property on which the mobile 

home is located. If the complete map and panel numbers are not available 

because the building or mobile home is not located in a community that is 

participating in the national flood insurance program or because no map 

exists for the relevant area, the form shall require a statement to such 

effect. The form shall provide for inclusion or attachment of any relevant 

documents indicating revisions or amendments to maps. 

(c) Required use 

The Federal entities for lending regulation shall by regulation require the 

use of the form under this section by regulated lending institutions. Each 

Federal agency lender shall by regulation provide for the use of the form 

with respect to any loan made by such Federal agency lender. The Federal 

National Mortgage Association and the Federal Home Loan Mortgage 

Corporation and the Government National Mortgage Association shall 

require the use of the form with respect to any loan purchased by such 

entities. A lender or other person may comply with the requirement under 

this subsection by using the form in a printed, computerized, or electronic 

manner. 

(d) Guarantees regarding information 

In providing information regarding special flood hazards on the form 

developed under this section, any lender (or other person required to use 

the form) who makes, increases, extends, or renews a loan secured by 

improved real estate or a mobile home may provide for the acquisition or 

determination of such information to be made by a person other than such 

lender (or other person), only to the extent such person guarantees the 

accuracy of the information. 

(e) Reliance on previous determination 

Any person increasing, extending, renewing, or purchasing a loan secured 

by improved real estate or a mobile home may rely on a previous 

determination of whether the building or mobile home is located in an area 

having special flood hazards(and shall not be liable for any error in such 

63
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1365 

[42 U.S.C. § 4104b] 

previous determination), if the previous determination was made not more 

than 7 years before the date of the transaction and the basis for the 

previous determination has been set forth on a form under this section, 

unless-­

(1) map revisions or updates pursuant to section 4101(f) of this title after 

such previous determination have resulted in the building or mobile home 

being located in an area having special flood hazards; or 

(2) the person contacts the Director to determine when the most recent 

map revisions or updates affecting such property occurred and such 

revisions and updates have occurred after such previous determination. 

(f) Effective date 

The regulations under this section requiring use of the form established 

pursuant to this section shall be issued together with the regulations 

required under subsection (a) of this section and shall take effect upon the 

expiration of the 180-day period beginning on such issuance. 

{Sec. 1366} 

§ 4104c. Mitigation assistance 

(a) Authority 

The Director shall carry out a program to provide financial assistance to 

States and communities, using amounts made available from the National 

Flood Mitigation Fund under section 4104d of this title, for planning and 

carrying out activities designed to reduce the risk of flood damage to 

structures covered under contracts for flood insurance under this chapter 

[42 U.S.C. § 4001 et seq.]. Such financial assistance shall be made 

available to States and communities in the form of grants under subsection 

(b) of this section for planning assistance and in the form of grants under 

this section for carrying out mitigation activities. 

64
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1366 

[42 U.S.C. § 4104c] 

(b) Planning assistance grants 

(1) In general 

The Director may make grants under this subsection to States and 

communities to assist in developing mitigation plans under subsection (c) 

of this section. 

(2) Funding 

Of any amounts made available from the National Flood Mitigation Fund 

for use under this section in any fiscal year, the Director may use not more 

than $1,500,000 to provide planning assistance grants under this 

subsection. 

(3) Limitations 

(A) Timing 

A grant under this subsection may be awarded to a State or community 

not more than once every 5 years and each grant may cover a period of 1 

to 3 years. 

(B) Single grantee amount 

A grant for planning assistance may not exceed-­

(i) $150,000, to any State; or 

(ii) $50,000, to any community. 

(C) Cumulative State grant amount 

The sum of the amounts of grants made under this subsection in any 

fiscal year to any one State and all communities located in such State may 

not exceed $300,000. 

(c) Eligibility for mitigation assistance 

To be eligible to receive financial assistance under this section for 

mitigation activities, a State or community shall develop, and have 

approved by the Director, a flood risk mitigation plan (in this section 

65
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1366 

[42 U.S.C. § 4104c] 

referred to as a “mitigation plan”), that describes the mitigation activities to 

be carried out with assistance provided under this section, is consistent 

with the criteria established by the Director under section 4102 of this title, 

and provides protection against flood losses to structures for which 

contracts for flood insurance are available under this chapter [42 U.S.C. 

§ 4001 et seq.]. The mitigation plan shall be consistent with a 

comprehensive strategy for mitigation activities for the area affected by the 

mitigation plan, that has been adopted by the State or community following 

a public hearing. 

(d) Notification of approval and grant award 

(1) In general 

The Director shall notify a State or community submitting a mitigation 

plan of the approval or disapproval of the plan not later than 120 days after 

submission of the plan. 

(2) Notification of disapproval 

If the Director does not approve a mitigation plan submitted under this 

subsection, the Director shall notify, in writing, the State or community 

submitting the plan of the reasons for such disapproval. 

(e) Eligible mitigation activities 

(1) Use of amounts 

Amounts provided under this section (other than under subsection (b) of 

this section) may be used only for mitigation activities specified in a 

mitigation plan approved by the Director under subsection (d) of this 

section. The Director shall provide assistance under this section to the 

extent amounts are available in the National Flood Mitigation Fund 

pursuant to appropriation Acts, subject only to the absence of approvable 

mitigation plans. 

(2) Determination of eligible plans 

The Director may approve only mitigation plans that specify mitigation 

activities that the Director determines are technically feasible and costeffective and only such plans that propose activities that are cost-beneficial 

to the National Flood Mitigation Fund. 

66
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1366 

[42 U.S.C. § 4104c] 

(3) Standard for approval 

The Director shall approve mitigation plans meeting the requirements for 

approval under paragraph (1) that will be most cost-beneficial to the 

National Flood Mitigation Fund. 

(4) Priority 

The Director shall make every effort to provide mitigation assistance 

under this section for mitigation plans proposing activities for repetitive 

loss structures and structures that have incurred substantial damage. 

(5) Eligible activities 

The Director shall determine whether mitigation activities described in a 

mitigation plan submitted under subsection (d) of this section comply with 

the requirements under paragraph (1). Such activities may include-­

(A) demolition or relocation of any structure located on land that is 

along the shore of a lake or other body of water and is certified by an 

appropriate State or local land use authority to be subject to imminent 

collapse or subsidence as a result of erosion or flooding; 

(B) elevation, relocation, demolition, or floodproofing of structures 

(including public structures) located in areas having special flood hazards 

or other areas of flood risk; 

(C) acquisition by States and communities of properties (including 

public properties) located in areas having special flood hazards or other 

areas of flood risk and properties substantially damaged by flood, for public 

use, as the Director determines is consistent with sound land management 

and use in such area; 

(D) minor physical mitigation efforts that do not duplicate the flood 

prevention activities of other Federal agencies and that lessen the frequency 

or severity of flooding and decrease predicted flood damages, which shall 

not include major flood control projects such as dikes, levees, seawalls, 

groins, and jetties unless the Director specifically determines in approving a 

mitigation plan that such activities are the most cost-effective mitigation 

activities for the National Flood Mitigation Fund; 

67
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1366 

[42 U.S.C. § 4104c] 

(E) beach nourishment activities; 

(F) the provision of technical assistance by States to communities and 

individuals to conduct eligible mitigation activities; 

(G) other activities that the Director considers appropriate and specifies 

in regulation; and 

(H) other mitigation activities not described in subparagraphs (A) 

through (F) or the regulations issued under subparagraph (G), that are 

described in the mitigation plan of a State or community. 

(f) Limitations on amount of assistance 

(1) Amount 

The sum of the amounts of mitigation assistance provided under this 

section during any 5-year period may not exceed-­

(A) $10,000,000, to any State; or 

(B) $3,300,000, to any community. 

(2) Geographic 

The sum of the amounts of mitigation assistance provided under this 

section during any 5-year period to any one State and all communities 

located in such State may not exceed $20,000,000. 

(3) Waiver 

The Director may waive the dollar amount limitations under paragraphs 

(1) and (2) for any State or community for any 5-year period during which 

a major disaster or emergency declared by the President (pursuant to the 

Robert T. Stafford Disaster Relief and Emergency Assistance Act [42 

U.S.C. 5121 et seq.]) as a result of flood conditions is in effect with respect 

to areas in the State or community. 

68
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1366 

[42 U.S.C. § 4104c] 

(g) Matching requirement 

(1) In general 

The Director may not provide mitigation assistance under this section to 

a State or community in an amount exceeding 3 times the amount that the 

State or community certifies, as the Director shall require, that the State or 

community will contribute from non-Federal funds to develop a mitigation 

plan under subsection (c) of this section and to carry out mitigation 

activities under the approved mitigation plan. In no case shall any in-kind 

contribution by any State or community exceed one-half of the amount of 

non-Federal funds contributed by the State or community. 

(2) Non-Federal funds 

For purposes of this subsection, the term “non-Federal funds” includes 

State or local agency funds, in-kind contributions, any salary paid to staff 

to carry out the mitigation activities of the recipient, the value of the time 

and services contributed by volunteers to carry out such activities (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. 

(h) Oversight of mitigation plans 

The Director shall conduct oversight of recipients of mitigation assistance 

under this section to ensure that the assistance is used in compliance with 

the approved mitigation plans of the recipients and that matching funds 

certified under subsection (g) of this section are used in accordance with 

such certification. 

(i) Recapture 

(1) Noncompliance with plan 

If the Director determines that a State or community that has received 

mitigation assistance under this section has not carried out the mitigation 

activities as set forth in the mitigation plan, the Director shall recapture any 

unexpended amounts and deposit the amounts in the National Flood 

Mitigation Fund under section 4104d of this title. 

69
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1366 

(2) Failure to provide matching funds 

If the Director determines that a State or community that has received 

mitigation assistance under this section has not provided matching funds in 

the amount certified under subsection (g) of this section, the Director shall 

recapture any unexpended amounts of mitigation assistance exceeding 3 

times the amount of such matching funds actually provided and deposit the 

amounts in the National Flood Mitigation Fund under section 4104d of this 

title. 

(j) Reports 

Not later than 1 year after September 23, 1994, and biennially thereafter, 

the Director shall submit a report to the Congress describing the status of 

mitigation activities carried out with assistance provided under this section. 

(k) “Community” defined 

For purposes of this section, the term “community” means-­

(1) a political subdivision that (A) has zoning and building code 

jurisdiction over a particular area having special flood hazards, and (B) is 

participating in the national flood insurance program; or 

(2) a political subdivision of a State, or other authority, that is designated 

to develop and administer a mitigation plan by political subdivisions, all of 

which meet the requirements of paragraph (1). 

{Sec. 1367} 

§ 4104d. National Flood Mitigation Fund 

(a) Establishment and availability 

The Director shall establish in the Treasury of the United States a fund to 

be known as the National Flood Mitigation Fund, which shall be credited 

with amounts described in subsection (b) of this section and shall be 

available, to the extent provided in appropriation Acts, for providing 

assistance under section 4104c of this title. 

70
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1367 

(b) Credits 

The National Flood Mitigation Fund shall be credited with-­

(1) amounts from the National Flood Insurance Fund, in amounts not 

exceeding-­

(A) $10,000,000 in the fiscal year ending September 30, 1994; 

(B) $15,000,000 in the fiscal year ending September 30, 1995; 

(C) $20,000,000 in the fiscal year ending September 30, 1996; and 

(D) $20,000,000 in each fiscal year thereafter; 

(2) any penalties collected under section 4012a(f) of this title; and 

(3) any amounts recaptured under section 4104c(i) of this title. 

(c) Investment 

If the Director determines that the amounts in the National Flood 

Mitigation Fund are in excess of amounts needed under subsection (a) of 

this section, the Director may invest any excess amounts the Director 

determines advisable in interest-bearing obligations issued or guaranteed by 

the United States. 

(d) Report 

The Director shall submit a report to the Congress not later than the 

expiration of the 1-year period beginning on September 23, 1994, and not 

less than once during each successive 2-year period thereafter. The report 

shall describe the status of the Fund and any activities carried out with 

amounts from the Fund. 

71
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 201 

[42 U.S.C. § 4105] 

{Sec. 2017} 

§ 4105. Disaster mitigation requirements; notification to flood-prone 

areas 

(a) Initial notification 

Not later than six months following December 31, 1973, the Director 

shall publish information in accordance with section 4101(1) of this title, 

and shall notify the chief executive officer of each known flood-prone 

community not already participating in the national flood insurance 

program of its tentative identification as a community containing one or 

more areas having special flood hazards. 

(b) Alternative actions of tentatively identified communities; public 

hearing; opportunity for submission of evidence; finality of 

administrative determination of existence or extent of flood 

hazard area 

After such notification, each tentatively identified community shall either 

(1) promptly make proper application to participate in the national flood 

insurance program or (2) within six months submit technical data sufficient 

to establish to the satisfaction of the Director that the community either is 

not seriously flood prone or that such flood hazards as may have existed 

have been corrected by flood-works or other flood control methods. The 

Director may, in his discretion, grant a public hearing to any community 

with respect to which conflicting data exist as to the nature and extent of a 

flood hazard. If the Director decides not to hold a hearing, the community 

shall be given an opportunity to submit written and documentary evidence. 

Whether or not such hearing is granted, the Director's final determination 

as to the existence or extent of a flood hazard area in a particular 

community shall be deemed conclusive for the purposes of this Act if 

supported by substantial evidence in the record considered as a whole. 

(c) Subsequent notification to additional communities known to be 

flood prone areas 

As information becomes available to the Director concerning the 

existence of flood hazards in communities not known to be flood prone at 

7 Of the Flood Disaster Protection Act of 1973, as amended. 

72
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 201 

[42 U.S.C. § 4105] 

the time of the initial notification provided for by subsection (a) of this 

section he shall provide similar notifications to the chief executive officers 

of such additional communities, which shall then be subject to the 

requirements of subsection (b) of this section. 

(d) Provisions of section 4106 applicable to flood-prone communities 

disqualified for flood insurance program 

Formally identified flood-prone communities that do not qualify for the 

national flood insurance program within one year after such notification or 

by the date specified in section 4106 of this title, whichever is later, shall 

thereafter be subject to the provisions of that section relating to floodprone communities which are not participating in the program. 

(e) Administrative procedures; establishment; reimbursement of 

certain expenses; appropriation authorization 

The Director is authorized to establish administrative procedures 

whereby the identification under this section of one or more areas in the 

community as having special flood hazards may be appealed to the Director 

by the community or any owner or lessee of real property within the 

community who believes his property has been inadvertently included in a 

special flood hazard area by the identification. When, incident to any appeal 

under this subsection, the owner or lessee of real property or the 

community, as the case may be, incurs expense in connection with the 

services of surveyors, engineers, or similar services, but not including legal 

services, in the effecting of an appeal which is successful in whole or part, 

the Director shall reimburse such individual or community to an extent 

measured by the ratio of the successful portion of the appeal as compared 

to the entire appeal and applying such ratio to the reasonable value of all 

such services, but no reimbursement shall be made by the Director in 

respect to any fee or expense payment, the payment of which was agreed 

to be contingent upon the result of the appeal. There is authorized to be 

appropriated for purposes of implementing this subsection not to exceed 

$250,000. 

{Sec. 2028} 

8 Of the Flood Disaster Protection Act of 1973, as amended. 

73
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 202 

§ 4106. Nonparticipation in flood insurance program 

(a) Prohibition against Federal approval of financial assistance 

No Federal officer or agency shall approve any financial assistance for 

acquisition or construction purposes on and after July 1, 1975, for use in 

any area that has been identified by the Director as an area having special 

flood hazards unless the community in which such area is situated is then 

participating in the national flood insurance program. 

(b) Notification of purchaser or lessee of property in flood hazard area 

of availability of Federal disaster relief assistance in event of a 

flood disaster 

In addition to the requirements of section 4104a of this title, each Federal 

entity for lending regulation shall by regulation require the regulated 

lending institutions described in such section, and each Federal agency 

lender shall issue regulations requiring the Federal agency lender, described 

in such section to notify (as a condition of making, increasing, extending, 

or renewing any loan secured by property described in such section) the 

purchaser or lessee of such property of whether, in the event of a disaster 

caused by flood to such property, Federal disaster relief assistance will be 

available to such property. 

{Sec. 2079} 

§ 4107. Consultation with local officials; scope 

In carrying out his responsibilities under the provisions of this title and 

the National Flood Insurance Act of 1968 which relate to notification to 

and identification of flood-prone areas and the application of criteria for 

land management and use, including criteria derived from data reflecting 

new developments that may indicate the desirability of modifying elevations 

based on previous flood studies, the Director shall establish procedures 

assuring adequate consultation with the appropriate elected officials of 

general purpose local governments, including but not limited to those local 

governments whose prior eligibility under the program has been suspended. 

Such consultation shall include, but not be limited to, fully informing local 

officials at the commencement of any flood elevation study or investigation 

9 Of the Flood Disaster Protection Act of 1973, as amended. 

74
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 207 

undertaken by any agency on behalf of the Director concerning the nature 

and purpose of the study, the areas involved, the manner in which the study 

is to be undertaken, the general principles to be applied, and the use to be 

made of the data obtained. The Director shall encourage local officials to 

disseminate information concerning such study widely within the 

community, so that interested persons will have an opportunity to bring all 

relevant facts and technical data concerning the local flood hazard to the 

attention of the agency during the course of the study. 

75
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1370 

[42 U.S.C. § 4121] 

UNITED STATES CODE

TITLE 42--THE PUBLIC HEALTH AND WELFARE

CHAPTER 50--NATIONAL FLOOD INSURANCE

SUBCHAPTER IV--GENERAL PROVISIONS 

{Sec. 1370} 

§ 4121. Definitions 

(a) As used in this chapter [42 U.S.C. § 4001 et seq.] --

(1) the term “flood” shall have such meaning as may be prescribed in 

regulations of the Director, and may include inundation from rising waters 

or from the overflow of streams, rivers, or other bodies of water, or from 

tidal surges, abnormally high tidal water, tidal waves, tsunamis, hurricanes, 

or other severe storms or deluge; 

(2) the terms “United States” (when used in a geographic sense) and 

“State” includes the several States, the District of Columbia, the territories 

and possessions, the Commonwealth of Puerto Rico, and the Trust 

Territory of the Pacific Islands; 

(3) the terms “Insurance company”, “other insurer” and “insurance agent 

or broker” include any organizations and persons authorized to engage in 

the insurance business under the laws of any State; 

(4) the term “insurance adjustment organization” includes any 

organizations and persons engaged in the business of adjusting loss claims 

arising under insurance policies issued by any insurance company or other 

insurer; 

(5) the term “person” includes any individual or group of individuals, 

corporation, partnership, association, or any other organized group of 

persons, including State and local governments and agencies thereof; 

(6) the term “Director” means the Director of the Federal Emergency 

Management Agency; 

76
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1370 

[42 U.S.C. § 4121] 

(7) the term “repetitive loss structure” means a structure covered by a 

contract for flood insurance under this chapter [42 U.S.C. § 4001 et seq.] 

that has incurred flood-related damage on 2 occasions during a 10-year 

period ending on the date of the event for which a second claim is made, in 

which the cost of repair, on the average, equaled or exceeded 25 percent of 

the value of the structure at the time of each such flood event; 

(8) the term “Federal agency lender means a Federal agency that makes 

direct loans secured by improved real estate or a mobile home, to the 

extent such agency acts in such capacity; 

(9) the term “Federal entity for lending regulation” means the Board of 

Governors of the Federal Reserve System, the Federal Deposit Insurance 

Corporation, the Comptroller of the Currency, the Office of Thrift 

Supervision, the National Credit Union Administration, and the Farm 

Credit Administration, and with respect to a particular regulated lending 

institution means the entity primarily responsible for the supervision of the 

institution; 

(10) the term “improved real estate” means real estate upon which a 

building is located; 

(11) the term “lender” means a regulated lending institution or Federal 

agency lender; 

(12) the term “natural and beneficial floodplain functions” means-­

(A) the functions associated with the natural or relatively undisturbed 

floodplain that (i) moderate flooding, retain flood waters, reduce erosion 

and sedimentation, and mitigate the effect of waves and storm surge from 

storms, and (ii) reduce flood related damage; and 

(B) ancillary beneficial functions, including maintenance of water 

quality and recharge of ground water, that reduce flood related damage; 

(13) the term “regulated lending institution” means any bank, savings and 

loan association, credit union, farm credit bank, Federal land bank 

association, production credit association, or similar institution subject to 

the supervision of a Federal entity for lending regulation; and 

(14) the term “servicer” means the person responsible for receiving any 

scheduled periodic payments from a borrower pursuant to the terms of a 

77
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1370 

[42 U.S.C. § 4121] 

loan, including amounts for taxes, insurance premiums, and other charges 

with respect to the property securing the loan, and making the payments of 

principal and interest and such other payments with respect to the amounts 

received from the borrower as may be required pursuant to the terms of the 

loan. 

(b) The term “flood” shall also include inundation from mudslides which 

are proximately caused by accumulations of water on or under the ground; 

and all of the provisions of this chapter [42 U.S.C. § 4001 et seq.] shall 

apply with respect to such mudslides in the same manner and to the same 

extent as with respect to floods described in subsection (a)(1) of this 

section, subject to and in accordance with such regulations, modifying the 

provisions of this chapter (including the provisions relating to land 

management and use) to the extent necessary to insure that they can be 

effectively so applied, as the Director may prescribe to achieve (with 

respect to such mudslides) the purposes of this chapter and the objectives 

of the program. 

(c) The term “flood” shall also include the collapse or subsidence of land 

along the shore of a lake or other body of water as a result of erosion or 

undermining caused by waves or currents of water exceeding anticipated 

cyclical levels, and all of the provisions of this chapter [42 U.S.C. § 4001 et 

seq.] shall apply with respect to such collapse or subsidence in the same 

manner and to the same extent as with respect to floods described in 

subsection (a)(1) of this section, subject to and in accordance with such 

regulations, modifying the provisions of this chapter (including the 

provisions relating to land management and use) to the extent necessary to 

insure that they can be effectively so applied, as the Director may prescribe 

to achieve (with respect to such collapse or subsidence) the purposes of 

this chapter and the objectives of the program. 

{Sec. 1371} 

§ 4122. Studies of other natural disasters; cooperation and 

consultation with other departments and agencies 

(a) The Director is authorized to undertake such studies as may be 

necessary for the purpose of determining the extent to which insurance 

protection against earthquakes or any other natural disaster perils, other 

78
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1374 

[42 U.S.C. § 4125] 

than flood, is not available from public or private sources, and the 

feasibility of such insurance protection being made available. 

(b) Studies under this section shall be carried out, to the maximum extent 

practicable, with the cooperation of other Federal departments and 

agencies and State and local agencies, and the Director is authorized to 

consult with, receive information from, and enter into any necessary 

agreements or other arrangements with such other Federal departments and 

agencies (on a reimbursement basis) and such State and local agencies. 

{Sec. 1372} 

§ 4123. Advance payments 

Any payments under this title may be made (after necessary adjustment on 

account of previously made underpayments or overpayments) in advance 

or by way of reimbursement, and in such installments and on such 

conditions, as the Director may determine. 

{Sec. 1373} 

§ 4124. Applicability of fiscal controls 

The provisions of chapter 91 of title 31, United States Code, shall apply 

to the program authorized under this chapter [42 U.S.C. § 4001 et seq.] to 

the same extent as they apply to wholly owned Government corporations. 

{Sec. 1374} 

§ 4125. Finality of certain financial transactions 

Notwithstanding the provisions of any other law-­

(1) any financial transaction authorized to be carried out under this 

chapter [42 U.S.C. § 4001 et seq.], and 

79
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1374 

(2) any payment authorized to be made or to be received in connection 

with any such financial transaction, 

shall be final and conclusive upon all officers of the Government. 

{Sec. 1375} 

§ 4126. Administrative expenses 

Any administrative expenses which may be sustained by the Federal 

Government in carrying out the flood insurance and floodplain management 

programs authorized under this chapter [42 U.S.C. § 4001 et seq.] may be 

paid with amounts from the National Flood Insurance Fund (as provided 

under section 4017(a)(4) of this title), subject to approval in appropriations 

Acts. 

{Sec. 1376} 

§ 4127. Authorization of appropriations; availability 

(a) There are hereby authorized to be appropriated such sums as may from 

time to time be necessary to carry out this chapter [42 U.S.C. § 4001 et 

seq.], including sums-­

(1) to cover administrative expenses authorized under section 4126 of 

this title; 

(2) to reimburse the National Flood Insurance Fund established under 

section 4017 of this title for-­

(A) premium equalization payments under section 4054 of this title 

which have been made from such fund; and 

(B) reinsurance claims paid under the excess loss reinsurance coverage 

provided under section 4055 of this title; and 

(3) to make such other payments as may be necessary to carry out the 

purposes of this chapter. 

80
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Section 1105 

[42 U.S.C. § 4129] 

(b) All such funds shall be available without fiscal year limitation. 

(c) There are authorized to be appropriated for studies under this chapter 

not to exceed $36,283,000 for fiscal year 1990, and such sums as may be 

necessary for fiscal year 1991. Any amount appropriated under this 

subsection shall remain available until expended. 

{Sec. 20510} 

§ 4128. Rules and regulations 

(a) The Director is authorized to issue such regulations as may be 

necessary to carry out the purpose of this Act. 

(b) The head of each Federal agency that administers a program of financial 

assistance relating to the acquisition, construction, reconstruction, repair, 

or improvement of publicly or privately owned land or facilities, and each 

Federal instrumentality responsible for the supervision, approval, 

regulation, or insuring of banks, savings and loan associations, or similar 

institutions, shall, in cooperation with the Director, issue appropriate rules 

and regulations to govern the carrying out of the agency's responsibilities 

under this Act. 

Of the Flood Disaster Protection Act of 1973, as amended. 

81

10 
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Section 1105 

[42 U.S.C. § 4129] 

{Sec. 110511} 

§ 4129. Federal Insurance Administrator; establishment of position 

There is hereby established in the Federal Emergency Management 

Agency the position of Federal Insurance Administrator. 

Enacted as part of the Urban Property Protection and Reinsurance Act of 1968 and also as 

part of the Housing and Urband Development Act of 1968, and not as part of the National Flood 

Insurance Act of 1968. 

82

11 
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Index 

INDEX 

1

100 year frequency flood ...........................................................................................................25

5

50 Percent of value ................................................................................................................7, 35

A 

Actuarial basis..................................................................................................................... 24, 28

Adjusters..........................................................................See Insurance adjustment organizations

Adjustment of claims............................................................................................... 34, 43, 44, 48

Expenses ......................................................................................................................... 32, 33

Administrative expenses.......................................................................................... 23, 28–30, 81

Administrative procedures.........................................................................................................74

Administrative review ................................................................................................... 59–61, 73

Advisory committee....................................................................................................... 20, 27, 38

Agents and brokers.................................................................... See Insurance agents and brokers

Agreement or other arrangement..............................................................................See Contracts

Agricultural commodities

Definition..............................................................................................................................36

Agricultural properties .......................................................................See Properties, Agricultural

Agricultural structure .........................................................................See Properties, Agricultural

Definition..............................................................................................................................36

Alaska.......................................................................................................................................21

Allowances..................................................................................................... See Operating costs

Appropriations ...................................................................................................31–32, 67, 72, 81

Authorization of .................................................................................................. 60, 74, 81–82

AR zone ....................................................................................................................................26

Arbitration ................................................................................................................................52

Arrangement ............................................................................................................See Contracts

Atchafalaya Basin Levee System ...............................................................................................25

Attorney fees.............................................................................................................................49

Audits ................................................................................................................................. 50, 52

Avoyelles Parish, Louisiana.......................................................................................................25

B 

Base flood elevation ..................................................................................................................27

Borrowing authority ............................................................................................................ 29–31

Brokers ..................................................................................... See Insurance agents and brokers

Building........................................................................................................................ 14, 70, 78

Building or mobile home.................................................................... 5, 10–11, 14–15, 19, 62–65

Business properties.................................................................................. See Properties, Business

83
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Index 

C 

C zone.......................................................................................................................................26

Chargeable premium rates................................................................................See Premium rates

Church properties...................................................................................... See Properties, Church

Coastal areas.............................................................................................................................53

Coastal Barrier Resource System...............................................................................................40

Coastal zone management .........................................................................................................56

Colorado River Floodway .................................................................................................... 40–41

Commissions....................................................................................................................... 24, 33

Community .................... 4, 25–26, 36, 54–55, 58–60, 64–76. See also Participating communities

Definition..........................................................................................................................5, 71

Community rating system..........................................................................................................36

Compendia of flood map changes........................................................................................ 19, 56

Congress .................................................................................. 1–3, 24, 32, 37, 39, 48, 54, 71–72

House Committee on Banking, Finance and Urban Affairs ....................................................29

Senate Committee on Banking, Housing, and Urban Affairs..................................................29

Contractors................................................................................................................................49

Contracts.........................................................................17, 22, 39, 46, 49–54, 56, 63, 65–67, 78

Cost of compliance

Insurance to cover ...................................................................................................................7

Surcharge ................................................................................................................................8

Cost-effectiveness...................................................................................................... 7, 37, 68–69

D 

Deductibles ...............................................................................................................................20

Definitions ........................................................................................... 5–6, 14, 17, 33, 36, 77–79

Development ....................................................................................................2–3, 10, 27, 38, 57

Director..................................................................................................................... 6–15, 20–82

Definition..........................................................................................................................6, 77

Disaster relief.............................................................................................................. 1, 4, 36, 75

District of Columbia..................................................................................................................77

Dwelling

Multi-unit..............................................................................................................................21

Single-family.........................................................................................................................21

E 

Emergency program..................................................................................................................46

Enterprise

Definition..............................................................................................................................17

Erosion......................................................................................................................................36

Error or omission ......................................................................................................................49

Escrow ................................................................................................................................ 13–16

Estimated premium rates..................................................................................See Premium rates

Evangeline Parish, Louisiana ....................................................................................................25

Excess losses ....................................................................................................... See Reinsurance

Expiration of program...............................................................................................................39

Extending loans ...................................... See Loans, Making, increasing, extending, or renewing

84
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Index 

F 

Federal agencies...................................................................................... See also Federal officers

Army Corps of Engineers ......................................................................................................54

Comptroller of the Currency..............................................................................................5, 78

Department of Agriculture.....................................................................................................24

Department of Commerce......................................................................................................24

Department of Housing and Urban Development ...................................................................16

Department of the Army........................................................................................................24

Department of the Interior.....................................................................................................24

Department of the Treasury ...................................................................................................30

Farm Credit Administration ........................................................................................ 5, 12, 78

Federal Deposit Insurance Corporation..............................................................................5, 78

Federal Home Loan Mortgage Corporation...................................................... 5, 11, 16, 17, 64

Federal National Mortgage Association ..................................................................... 11, 16, 64

Federal Reserve System .....................................................................................................5, 78

Financial Institutions Examination Council......................................................... 10, 13, 61–62

National Credit Union Administration...............................................................................5, 78

National Oceanic and Atmospheric Administration ...............................................................54

Office of Thrift Supervision...............................................................................................5, 78

Soil Conservation Service......................................................................................................54

Tennessee Valley Authority....................................................................................... 24, 53–54

United States Geological Survey ............................................................................................54

Federal agency .............................................................................................................. 26, 36, 82

Definition................................................................................................................................5

Federal agency lender....................................................................... 11, 13, 41, 55–56, 61–64, 75

Definition..........................................................................................................................6, 78

Federal departments or agencies.........................................................................24, 53–54, 56, 80

Federal Emergency Management Agency.................6–7, 26–27, 49, 50, 77, 83. See also Director

Federal entity for lending regulation............................................. 6, 10, 13, 16, 18, 61–62, 75, 78

Definition..........................................................................................................................5, 78

Federal financial assistance .... See Financial assistance, Mitigation assistance, Planning assitance

Federal instrumentalities .............................................................................................................4

Federal officer or agency ..................................................................................................... 10, 75

Federal officers...................................................................................... See also Federal agencies

Comptroller General..............................................................................................................52

Housing and Home Finance Administrator ............................................................................29

Secretary of Agriculture................................................................................................... 53–54

Secretary of Commerce.................................................................................................... 53–54

Secretary of Defense ..............................................................................................................54

Secretary of Interior...............................................................................................................53

Secretary of the Army............................................................................................................53

Secretary of the Interior................................................................................................... 41, 54

Secretary of the Treasury .......................................................................................................29

Under Secretary of Commerce for Oceans and Atmosphere ...................................................56

Federal programs ........................................................................................................................4

Federal Register ............................................................................................................ 55, 58, 60

Federally supervised institutions........................ 4–6, 10, 13, 16–17, 40–41, 61–62, 64, 75, 78, 82

Federally supervised, regulated, or insured agencies or institutionsSee Federally supervised institutions

Fees.................................................................................13–14, 18–19, 24, 28, 31, 33, 46, 60, 74

85
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Index 

Attorney ................................................................................................................................49

Financial assistance..........................................................................................3–4, 43, 65–67, 82

Definition................................................................................................................................5

Financial assistance for acquisition or construction purposes............................................... 10, 75

Definition................................................................................................................................5

Financial participation ..........................................................................................................8, 46

Financial responsibility .............................................................................................................51

Fiscal year limitation..........................................................................................30, 32, 66, 72, 82

Flood

Definition........................................................................................................................ 77, 79

One-hundred year frequency..................................................................................................25

Flood elevations ....................................................................................................................9, 58

Flood forecasting................................................................................................................. 27, 38

Flood hazard information ............................................................See Flood insurance information

Flood insurance information......................................................... 4, 34, 53–56, 62, 64–65, 73–76

Flood insurance program...................... 2–4, 7–9, 18, 23–25, 29–39, 42–52, 55–56, 62–64, 71, 73

Emergency implementation ...................................................................................................46

Expiration of authority ..........................................................................................................39

Flood insurance purchase requirement...................................................See Purchase requirement

Flood Insurance Rate Maps ........................................................................................... 26, 28, 55

Flood plain areas..................................................................................................... 19, 23, 54, 55

Flood plain functions (natural and beneficial)...................................................................... 36–37

Definition..............................................................................................................................78

Flood plain management ......................................................................................2, 24–30, 36, 81

Flood plain ordinances ..........................................................................................................4, 57

Flood protection system....................................................................................................... 25–27

Floodplain.............................................................................................................See Flood plain

Flood-prone areas.....................................................................................4, 38, 53, 56–57, 73, 76

Identification of.....................................................................................................................53

Flood-prone communities..........................................................................................................74

Flood-proofing .............................................................................................................. 27, 35, 68

Flood-risk zones............................................................................................................ 19, 23, 64

Identification of............................................................................................................... 53–55

Floodway............................................................................................................................. 40–41

Colorado River ............................................................................ See Colorado River Floodway

Floodways.............................................................................................................................9, 57

G 

Gross negligence .......................................................................................................................51

Guam........................................................................................................................................21

H 

Hawaii.......................................................................................................................................21

Hold harmless ..................................................................................................See Indemification

Homebuilding industry..............................................................................................................38

I

Improved real estate ................................................................6, 10–11, 13–14, 18–19, 61–65, 78

Definition..........................................................................................................................6, 78

Increasing loans ...................................... See Loans, Making, increasing, extending, or renewing

86
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Index 

Indemnification.....................................................................................................................4, 49

Industry flood insurance pool .......................................................................20, 27, 42–45, 50–52

Information .................................................................................See Flood insurance information

Initial purchase of flood insurance.............................................................................................23

Insurability

Terms and conditions ............................................................................................................20

Insurance adjustment organization

Definition..............................................................................................................................77

Insurance adjustment organizations......................................................................8, 33, 44, 47–49

Insurance agent or broker

Definition..............................................................................................................................77

Insurance agents and brokers............................................................................... 8, 33, 44, 47, 49

Insurance authorities ........................................................................................................... 20, 27

Insurance companies ................................................................................................. 8, 33, 42–52

Insurance company

Definition..............................................................................................................................77

Insurance industry..........................................................................................2, 33, 38, 42, 47–49

Intent to defraud........................................................................................................................51

Interest................................................................................................................................ 30–31

Interest-bearing obligations.......................................................................................................72

Investment .................................................................................................................... 31–32, 72

J 

Jurisdiction of U.S. district court ................................................................................... 45, 48, 60

Land use.................................................................................................................... 2–3, 7–9, 58

Land use and control measures.................................................................. See Land use measures

Land use authority.....................................................................................................................68

Land use measures .................................................................................................... 9, 27, 35, 60

Lender

Definition..........................................................................................................................6, 78

Lending institution....................................................................... 5, 10, 13, 16–18, 38, 41, 75, 78

Lending institutions ............................................................................................................ 61–64

Liabilities..................................................................................................................................31

Liability .................................................................................................................. 17, 21, 51, 65

Loans ........................................................................................3–6, 10–19, 23, 40, 41, 61–65, 78

Making, increasing, extending, or renewing ...................................................10–19, 61–65, 75

Property securing............................. See Building, Building or mobile home, Personal property

Small.....................................................................................................................................12

Local government officials .................................................................................................. 59, 76

Local governments....................................................................................................................58

M 

Mapping.......................................................................................................24, 28, 30, 54–61, 65

Maps.........................................................................................................................................64

COBRA areas........................................................................................................................40

Colorado Floodway................................................................................................................40

Maximum limit of coverage................................................................................................. 10–11

Mitigation assistance..................................................................................................... 37, 65–72

87

L 
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Index 

Mobile home ...................................................See Building or mobile home, Improved real estate

Mudslide ..................................................................................................................... 3–4, 53, 79

Multiple occasions

Properties sustaining flood damage on.....................................................................................7

N 

National Flood Insurance Fund................................................................. 7, 28–34, 55–56, 72, 81

National Flood Insurance Program ...................................................See Flood insurance program

National Flood Mitigation Fund ...................................................................17, 65, 66, 67, 71–72

Natural hazards.........................................................................................................................54

New construction........................................................................................................... 26, 40–41

Non-Federal funds

Definition..............................................................................................................................70

Notice requirements ..................................................................................................................16

Notification

Approval or disapproval of mitigation plan............................................................................67

Availability of Federal disaster relief .....................................................................................75

Change of servicer........................................................................................................... 62–63 

Change to flood insurance map panels...................................................................................55

Disallowance of claim ..................................................................................................... 44, 48

Expiration of insurance .........................................................................................................63

Flood elevation determinations ........................................................................................ 58–60 

Identification as flood-prone community.................................................................... 73–74, 76

To borrower of lack of flood insurance coverage ....................................................................14

To purchaser of special flood hazards .............................................................................. 61–62 

O 

Operating allowances 

Definition..............................................................................................................................33

Operating costs........................................................................................................ 23, 32, 44, 49

Definition..............................................................................................................................33

Schedule................................................................................................................................33

Other insurer

Definition..............................................................................................................................77

Other insurers ........................................................................................ See Insurance companies

Otherwise protected area ...........................................................................................................40

P 

Pacific Islands, Trust Territory of..............................................................................................77

Participating communities................................................................................................... 56, 64

Penalties.............................................................................................................................. 16–18

Person

Definition..............................................................................................................................77

Personal property ...................................................................................................... 7, 10–11, 14

Pool........................................................................................... See Industry flood insurance pool

Premium equalization payments.................................................................................... 44–45, 81

Premium rates

Chargeable ......................................................................................... 20–21, 27–28, 34–36, 45

Credits for risk reduction measures........................................................................................37

Estimated .................................................................................................22, 27–28, 34–36, 47

88
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Index 

Flood protection system's effect on.........................................................................................25

Limitation on annual increase................................................................................................29

Louisiana parishes.................................................................................................................25

Risk................................................................................................................................. 21, 23

Premium taxes...........................................................................................................................24

Premiums...........................................................................................................20, 31–32, 43, 46

Coverage placed by lender.....................................................................................................14

Escrow of .................................................................................................................... 6, 13, 79

President ................................................................................................................... 2, 29, 39, 70

Priority in making flood insurance available................................................................................8

Private insurance industry ...........................................................................................................2

Properties

Agricultural.......................................................................................................................9, 35

Business............................................................................................................................8, 21

Church ..............................................................................................................................8, 21

Nonresidential.......................................................................................................................22

Other.......................................................................................................................................9

Private nonprofit organizations, occupied by............................................................................9

Public ....................................................................................................................................68

Residential ........................................................................................................................8, 21

State and local agencies, owned by ........................................................................................12

State and local governments and agencies, owned by...............................................................9

Properties declared in violation of State or local laws ................................................................37

Properties eligible for flood insurance under section 4012 ....................................... 20, 21, 24, 27

Properties impacted by disaccreditation of flood protection system.............................................26

Properties in special flood hazard areas.....................................................................................68

Puerto Rico................................................................................................................................77

Purchase requirement...........................................................................................4, 10–19, 62–63

Exceptions.............................................................................................................................12

R 

Rapides Parish, Louisiana .........................................................................................................25

Real estate............................................................................................... See Improved real estate

Regulated lending institution.....................................................................See Lending institution

Definition..........................................................................................................................6, 78

Regulations ............................................6, 9–22, 26–27, 34, 37, 41, 57, 61–65, 69, 75, 77, 79, 82

Reinsurance................................................................................................................... 31, 45–46

Claims....................................................................................................................... 30, 44, 81

Remedial actions

Lenders' noncompliance ........................................................................................................18

Renewal

Insurance......................................................................................................................... 22, 40

Loan.................................................... See Loans, Making, increasing, extending, or renewing

Repetitive loss structure................................................................................................... 7, 35, 68

Definition..............................................................................................................................78

Reports............................................................................................. 29–31, 37, 39, 48, 60, 71–72

Reserves for anticipated losses...................................................................................................28

Residential improved real estate

Definition..............................................................................................................................14

Residential properties...........................................................................See Properties, Residential

89
ALL-HAZARD AUTHORITIES of the 

Federal Emergency Management Agency 

Index 

Residential structure.............................................................................See Properties, Residential

Risk premium rates ..........................................................................................See Premium rates

Risk sharing.................................................................................................................... 8, 33, 46

Rules and regulations ........................................................................................... See Regulations

S 

Saint Landry Parish, Louisiana..................................................................................................25

Scope of review .........................................................................................................................60

Self-insurance ...........................................................................................................................12

Servicer..............................................................................................................13–14, 18, 61–63

Definition..........................................................................................................................6, 79

Settlement of claims..................................................................................................................52

Single-family dwelling ...................................................................... See Dwelling, Single-family

Small business concerns ........................................................................................................8, 21

Special flood hazard area........................4–5, 10–11, 14–15, 19, 26, 53, 58, 61–65, 68, 71, 73–75

State

Definition..............................................................................................................................77

State or local governments.............................................................. 2, 9, 34–38, 53–57, 68, 77, 80

State or local laws ......................................................................................................... 17, 37, 57

States ............................................................................4, 9, 12, 20–21, 25, 27, 54, 56, 65, 66, 68

Statute of limitations .................................................................................................................18

Statutes cross-referenced

16 U.S.C. § 3503...................................................................................................................40

31 U.S.C. § 3324...................................................................................................................54

31 U.S.C. §§ 9103, 9104 .......................................................................................................32

31 U.S.C., chapter 91 ............................................................................................................80

41 U.S.C. § 5............................................................................................................. 49, 51, 54

42 U.S.C. § 2414...................................................................................................................31

43 U.S.C. § 1600c ........................................................................................................... 40–41 

5 U.S.C. § 105.......................................................................................................................47

5 U.S.C. § 553.......................................................................................................................41

5 U.S.C. § 5703.....................................................................................................................39

5 U.S.C., chapter 7 ................................................................................................................60

Federal Advisory Committee Act [5 U.S.C. App.]............................................................ 38, 49

Federal Financial Institutions Examination Council Act of 1974 [12 U.S.C. § 3301 et seq.] ..10

Real Estate Settlement Procedures Act of 1974 [12 U.S.C. § 2609]........................................13

Riegle Community Development and Regulatory Improvement Act of 1994 .................... 30, 39

Robert T. Stafford Disaster Relief and Emergency Assistance Act [42 U.S.C. § 5121 et seq.]5, 70

Structures................................................................................................................See Properties

Studies ........................................................................................2–3, 8, 23–25, 56–57, 76, 79–82

Substantial damage ......................................................................68. See also 50 Percent of value

Substantial improvements............................................................................ See New construction

Surety bond ...............................................................................................................................51

T 

Technical assistance ................................................................................................ 35, 54, 57, 69

Technical data......................................................................................................... 55, 59, 73, 76

Technical information ...........................................................................................................9, 15

Technically feasible...................................................................................................................68

Terms and conditions ................................................................... 1, 20, 27, 42, 43, 45–46, 49, 50

90
The National Flood Insurance Act of 1968, as amended, and 

The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq. 

Index 

Territories and possessions........................................................................................................77

Travel expenses.........................................................................................................................39

Trust Territory of the Pacific Islands .........................................................................................77

U 

United States....................................................................................................... 7, 32, 51, 53, 72

Definition..............................................................................................................................77

United States district court ............................................................................................ 45, 48, 60

Violations 

Pattern or practice .................................................................................................................16

Virgin Islands ...........................................................................................................................21

Z 

Zone AR....................................................................................................................................26

Zone C......................................................................................................................................26

91

V