I 

116TH CONGRESS 

1ST SESSION H. R. 1610 

To amend the National Flood Insurance Act of 1968 to allow the Administrator of the Federal Emergency Management Agency to provide capitalization grants to States to establish revolving funds to provide funding 

assistance to reduce flood risks, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 7, 2019 

Mr. CRIST (for himself and Mr. WILLIAMS) introduced the following bill; 

which was referred to the Committee on Financial Services 

A BILL 

To amend the National Flood Insurance Act of 1968 to 

allow the Administrator of the Federal Emergency Management Agency to provide capitalization grants to 

States to establish revolving funds to provide funding 

assistance to reduce flood risks, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘State Flood Mitigation 

5 Revolving Fund Act of 2019’’. 


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1 SEC. 2. STATE REVOLVING LOAN FUNDS FOR FLOOD MITI2 GATION. 

3 Chapter I of the National Flood Insurance Act of 

4 1968 (42 U.S.C. 4011 et seq.) is amended by adding at 

5 the end the following: 

6 ‘‘SEC. 1326. STATE REVOLVING LOAN FUNDS FOR FLOOD 

7 MITIGATION. 

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

9 ‘‘(1) the term ‘Community Rating System’ 

10 means the community rating system carried out 

11 under section 1315(b); 

12 ‘‘(2) the term ‘eligible State’ means a State, the 

13 District of Columbia, and the Commonwealth of 

14 Puerto Rico; 

15 ‘‘(3) the term ‘insular area’ means— 

16 ‘‘(A) Guam; 

17 ‘‘(B) American Samoa; 

18 ‘‘(C) the Commonwealth of the Northern 

19 Mariana Islands; 

20 ‘‘(D) the Federated States of Micronesia; 

21 ‘‘(E) the Republic of the Marshall Islands; 

22 ‘‘(F) the Republic of Palau; and 

23 ‘‘(G) the United States Virgin Islands; 

24 ‘‘(4) the term ‘intended use plan’ means a plan 

25 prepared under subsection (d)(1); 


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1 ‘‘(5) the term ‘low-income geographic area’ 

2 means an area described in paragraph (1) or (2) of 

3 section 301(a) of the Public Works and Economic 

4 Development Act of 1965 (42 U.S.C. 3161(a)); 

5 ‘‘(6) the term ‘low-income homeowner’ means 

6 the owner of a primary residence, the household in7 come of which in a taxable year is not more than 80 

8 percent of the median income for the area in which 

9 the residence is located; 

10 ‘‘(7) the term ‘participating State’ means an el11 igible State that— 

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

13 subsection (b)(1); and 

14 ‘‘(B) agrees to comply with the require15 ments of this section; 

16 ‘‘(8) the term ‘pre-FIRM building’ means a 

17 building for which construction or substantial im18 provement occurred before the effective date of the 

19 initial Flood Insurance Rate Map published by the 

20 Administrator under section 1360 for the area in 

21 which the building is located; 

22 ‘‘(9) the term ‘repetitive loss structure’ has the 

23 meaning given the term in section 1370(a); 

24 ‘‘(10) the term ‘severe repetitive loss property’ 

25 has the meaning given the term in section 1307(h); 


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1 ‘‘(11) the term ‘State loan fund’ means a flood 

2 mitigation assistance revolving loan fund established 

3 by an eligible State under this section; and 

4 ‘‘(12) the term ‘tribal government’ means the 

5 recognized government of an Indian tribe, or the 

6 governing body of an Alaska Native regional or vil7 lage corporation, that has been determined eligible 

8 to receive services from the Bureau of Indian Af9 fairs. 

10 ‘‘(b) GENERAL AUTHORITY.— 

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

12 enter into an agreement with an eligible State to 

13 provide a capitalization grant for the eligible State 

14 to establish a revolving fund that will provide fund15 ing assistance to help homeowners, businesses, non16 profit organizations, and communities reduce flood 

17 risk in order to decrease— 

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

19 ‘‘(B) the cost of flood insurance; and 

20 ‘‘(C) Federal disaster payments. 

21 ‘‘(2) TIMING OF DEPOSIT AND AGREEMENTS

22 FOR DISTRIBUTION OF FUNDS.— 

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

24 last day of the fiscal year following the fiscal 

25 year in which a capitalization grant is made to 


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1 a participating State under paragraph (1), the 

2 participating State shall— 

3 ‘‘(i) deposit the grant in the State 

4 loan fund of the State; and 

5 ‘‘(ii) enter into one or more binding 

6 agreements that provide for the State to 

7 distribute the grant funds for purposes au8 thorized under subsection (c) such that— 

9 ‘‘(I) in the case of the initial 

10 grant made under this section to a 

11 State, not less than 75 percent of the 

12 amount of the grant funds shall be 

13 distributed before the expiration of 

14 the 24-month period beginning upon 

15 deposit of such funds in the State 

16 loan fund of the State; and 

17 ‘‘(II) in the case of any subse18 quent grant made under this section 

19 to a State, not less than 90 percent of 

20 the amount of the grant funds made 

21 under the capitalization grant shall be 

22 distributed before the expiration of 

23 the 12-month period beginning upon 

24 deposit of such funds in the State 

25 loan fund of the State. 


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1 ‘‘(B) NONCOMPLIANCE.—Except as pro2 vided in subparagraph (C), if a participating 

3 State does not comply with subparagraph (A) 

4 with respect to a grant, the Administrator shall 

5 reallocate the grant in accordance with para6 graph (3)(B). 

7 ‘‘(C) EXCEPTION.—The Administrator 

8 may not reallocate any funds under subpara9 graph (B) to a participating State that violated 

10 subparagraph (A) with respect to a grant made 

11 during the same fiscal year in which the funds 

12 to be reallocated were originally made available. 

13 ‘‘(3) ALLOCATION.— 

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

15 shall allocate amounts made available to carry 

16 out this section to participating States— 

17 ‘‘(i) for the participating States to de18 posit in the State loan funds established by 

19 the participating States; and 

20 ‘‘(ii) except as provided in paragraph 

21 (6), in accordance with the requirements 

22 described in subparagraph (B). 

23 ‘‘(B) REQUIREMENTS.—The requirements 

24 described in this subparagraph are as follows: 


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1 ‘‘(i) Fifty percent of the total amount 

2 made available under subparagraph (A) 

3 shall be allocated so that each partici4 pating State receives the percentage 

5 amount that is obtained by dividing the 

6 number of properties that were insured 

7 under the national flood insurance pro8 gram in that State in the fiscal year pre9 ceding the fiscal year in which the amount 

10 is allocated by the total number of prop11 erties that were insured under the national 

12 flood insurance program in the fiscal year 

13 preceding the fiscal year in which the 

14 amount is allocated. 

15 ‘‘(ii) Fifty percent of the total amount 

16 made available under subparagraph (A) 

17 shall be allocated so that each partici18 pating State receives a percentage of funds 

19 that is equal to the product obtained under 

20 clause (iii)(IV) with respect to that partici21 pating State after following the procedures 

22 described in clause (iii). 

23 ‘‘(iii) The procedures described in this 

24 clause are as follows: 


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1 ‘‘(I) Divide the total amount col2 lected in premiums for properties in3 sured under the national flood insur4 ance program in each participating 

5 State during the previous fiscal year 

6 by the number of properties insured 

7 under the national flood insurance 

8 program in that State for that fiscal 

9 year. 

10 ‘‘(II) Add together each quotient 

11 obtained under subclause (I). 

12 ‘‘(III) For each participating 

13 State, divide the quotient obtained 

14 under subclause (I) with respect to 

15 that State by the sum obtained under 

16 subclause (II). 

17 ‘‘(IV) For each participating 

18 State, multiply the amount that is 50 

19 percent of the total amount made 

20 available under subparagraph (A) by 

21 the quotient obtained under subclause 

22 (III). 

23 ‘‘(4) NO REVOLVING FUND REQUIRED.— 

24 ‘‘(A) IN GENERAL.—Notwithstanding any 

25 other provision of this section, and subject to 


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1 subparagraph (B), a participating State that 

2 receives less than $4,000,000 under paragraph 

3 (3)(B) in a fiscal year may distribute the funds 

4 directly in the form of grants or technical as5 sistance for a purpose described in subsection 

6 (c)(2), without regard to whether the State has 

7 established a State loan fund. 

8 ‘‘(B) STATE MATCHING.—A participating 

9 State that exercises the authority under sub10 paragraph (A) in a fiscal year shall provide 

11 matching funds from non-Federal sources in an 

12 amount that is equal to 25 percent of the 

13 amount that the State receives under paragraph 

14 (3)(B) in that fiscal year for purposes described 

15 in subparagraph (A). 

16 ‘‘(5) ALLOCATION OF REMAINING FUNDS.— 

17 After allocating amounts made available to carry out 

18 this section for a fiscal year in accordance with 

19 paragraph (3), the Administrator shall allocate any 

20 remaining amounts made available for that fiscal 

21 year to participating States, using the procedures 

22 described in clauses (i) through (iii) of paragraph 

23 (3)(B). 

24 ‘‘(6) ALLOCATION FOR TRIBAL GOVERNMENTS

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1 serve not less than 5.0 percent of the amount made 

2 available to carry out this section in a fiscal year to 

3 enter into grant agreements with tribal governments 

4 and insular areas, with the grant funds to be distrib5 uted— 

6 ‘‘(A) according to criteria established by 

7 the Administrator; and 

8 ‘‘(B) for a purpose described in subsection 

9 (c)(2). 

10 ‘‘(7) ADMINISTRATIVE COSTS; TECHNICAL AS11 SISTANCE.—The Administrator shall reserve not 

12 more than 1.5 percent of the amount made available 

13 to carry out this section in a fiscal year— 

14 ‘‘(A) for administrative costs incurred in 

15 carrying out this section; and 

16 ‘‘(B) to provide technical assistance to re17 cipients of grants under this section. 

18 ‘‘(c) USE OF FUNDS.— 

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

20 State loan fund, including repayments of loans made 

21 from the fund and interest earned on the amounts 

22 in the fund, shall be used— 

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

24 (3) and subsection (g), to provide financial as25 sistance for— 


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1 ‘‘(i) homeowners, businesses, and non2 profit organizations that are eligible to 

3 participate in the national flood insurance 

4 program; and 

5 ‘‘(ii) any local government that par6 ticipates in the national flood insurance 

7 program; 

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

9 for leveraged loans, the proceeds of which shall 

10 be deposited in the State loan fund; or 

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

12 payment of the principal and interest on rev13 enue or general obligation bonds issued by the 

14 participating State to provide matching funds 

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

16 sale of the bonds are deposited in the State 

17 loan fund. 

18 ‘‘(2) PURPOSES.—A recipient of financial as19 sistance provided through amounts from a State 

20 loan fund— 

21 ‘‘(A) shall use the amounts to reduce— 

22 ‘‘(i) flood risk; or 

23 ‘‘(ii) potential flood claims submitted 

24 under the national flood insurance pro25 gram; 


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1 ‘‘(B) shall use the amounts in a cost-effec2 tive manner under requirements established by 

3 the State, which may require an applicant for 

4 financial assistance to submit any information 

5 that the State considers relevant or necessary 

6 before the date on which the applicant receives 

7 the assistance; 

8 ‘‘(C) shall use the amounts for projects 

9 that— 

10 ‘‘(i) meet design and construction 

11 standards established by the Adminis12 trator; 

13 ‘‘(ii) are located in communities 

14 that— 

15 ‘‘(I) participate in the national 

16 flood insurance program; and 

17 ‘‘(II) have developed a State, 

18 local, or tribal government hazard 

19 mitigation plan that has been ap20 proved by the Administrator under 

21 section 1366; 

22 ‘‘(iii)(I) address a repetitive loss 

23 structure or a severe repetitive loss prop24 erty; or 


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1 ‘‘(II) address flood risk in the 500- 

2 year floodplain, areas of residual flood risk, 

3 or other areas of potential flood risk, as 

4 identified by the Administrator; and 

5 ‘‘(iv) address current risk and antici6 pate future risk, such as sea-level rise; 

7 ‘‘(D) may use the amounts— 

8 ‘‘(i) for projects relating to— 

9 ‘‘(I) structural elevation; 

10 ‘‘(II) floodproofing; 

11 ‘‘(III) the relocation or removal 

12 of buildings from the 100-year flood13 plain or other areas of flood risk, in14 cluding the acquisition of properties 

15 for such a purpose; 

16 ‘‘(IV) environmental restoration 

17 activities that directly reduce flood 

18 risk; 

19 ‘‘(V) any eligible activity de20 scribed in subparagraphs (A) through 

21 (G) of section 1366(c)(3); or 

22 ‘‘(VI) other activities determined 

23 appropriate by the Administrator; 

24 ‘‘(ii) with respect to a project de25 scribed in clause (i), only for expenditures 


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1 directly related to a project described in 

2 that clause, including expenditures for 

3 planning, design, and associated pre-con4 struction activities; and 

5 ‘‘(iii) to acquire, for the purposes of 

6 permanent protection, land, buildings, or a 

7 conservation easement from a willing seller 

8 or grantor; 

9 ‘‘(E) may not use the amounts— 

10 ‘‘(i) to construct buildings or expand 

11 existing buildings unless the activity is for 

12 the purpose of flood mitigation; 

13 ‘‘(ii) to improve any structure, unless 

14 the recipient has obtained flood insurance 

15 coverage in an amount at least equal to the 

16 lesser of the eligible project costs or the 

17 maximum insurable limit for the structure 

18 under the national flood insurance pro19 gram coverage for the structure, which 

20 coverage shall be maintained for the useful 

21 life of the structure; 

22 ‘‘(iii) to improve a residential property 

23 with an appraised value that is not less 

24 than 125 percent of the limitation on the 

25 maximum original principal obligation of a 


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1 conventional mortgage that may be pur2 chased by the Federal National Mortgage 

3 Association or the Federal Home Loan 

4 Mortgage Corporation in the area in which 

5 the property is located, as established 

6 under section 302(b)(2) of the Federal Na7 tional Mortgage Association Charter Act 

8 (12 U.S.C. 1717(b)(2)) and section 

9 305(a)(2) of the Federal Home Loan 

10 Mortgage Corporation Act (12 U.S.C. 

11 1454(a)(2)); 

12 ‘‘(iv) for the direct benefit of a home13 owner if the annual household adjusted 

14 gross income of the homeowner during the 

15 previous fiscal year was not less than 

16 $200,000, as annually adjusted by the Ad17 ministrator to reflect changes in the Con18 sumer Price Index for All Urban Con19 sumers, as published by the Bureau of 

20 Labor Statistics of the Department of 

21 Labor and rounded to the nearest $25; or 

22 ‘‘(v) to acquire real property or an in23 terest in real property unless the property 

24 is purchased from a willing seller; and 


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1 ‘‘(F) shall, in the use of such amounts, 

2 give priority to the maximum extent practicable 

3 to projects that assist low-income homeowners 

4 and low-income geographical areas. 

5 ‘‘(d) INTENDED USE PLANS.— 

6 ‘‘(1) IN GENERAL.—After providing the oppor7 tunity for public review and comment, each partici8 pating State shall annually prepare a plan that iden9 tifies, for the year following the date of issuance of 

10 the intended use plan, the intended uses of the 

11 amounts available in the State loan fund of the par12 ticipating State. 

13 ‘‘(2) CONSULTATION DURING PREPARATION.— 

14 Each participating State, in preparing an intended 

15 use plan, shall ensure that the State agency with 

16 primary responsibility for floodplain management— 

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

18 preparation of the intended use plan; and 

19 ‘‘(B) consults with any other appropriate 

20 State agency, including agencies responsible for 

21 coastal and environmental management. 

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

23 in each intended use plan— 

24 ‘‘(A) include— 


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1 ‘‘(i) an explanation of the mitigation 

2 and resiliency benefits the State intends to 

3 achieve, including by— 

4 ‘‘(I) reducing future damage and 

5 loss associated with flooding; 

6 ‘‘(II) reducing the number of se7 vere repetitive loss properties and re8 petitive loss structures in the State; 

9 ‘‘(III) decreasing the number of 

10 flood insurance claims in the State; 

11 and 

12 ‘‘(IV) increasing the rating under 

13 the Community Rating System for 

14 communities in the State; 

15 ‘‘(ii) information with respect to the 

16 availability of, and the application process 

17 for receiving, financial assistance from the 

18 State loan fund of the State; 

19 ‘‘(iii) the criteria and methods estab20 lished for the distribution of amounts from 

21 the State loan fund of the State; 

22 ‘‘(iv) the amount of financial assist23 ance that the State anticipates allocating 

24 to— 


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1 ‘‘(I) local government projects; 

2 and 

3 ‘‘(II) projects for homeowners, 

4 business, or nonprofit organizations; 

5 ‘‘(v) the expected terms of the assist6 ance provided under clause (iv); and 

7 ‘‘(vi) a description of the financial sta8 tus of the State loan fund and the short9 term and long-term goals of the State loan 

10 fund; and 

11 ‘‘(B) provide, to the maximum extent prac12 ticable, that priority for the use of amounts 

13 from the State loan fund shall be given to 

14 projects that— 

15 ‘‘(i) address severe repetitive loss 

16 properties and repetitive loss structures; 

17 ‘‘(ii) assist low-income homeowners 

18 and low-income geographic areas; and 

19 ‘‘(iii) address flood risk for pre-FIRM 

20 buildings. 

21 ‘‘(4) PUBLICATION.—Each participating State 

22 shall publish and periodically update a list of all 

23 projects receiving funding from the State loan fund 

24 of the State, which shall include identification of— 


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1 ‘‘(A) the community in which the project is 

2 located; 

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

4 provided for each project; and 

5 ‘‘(C) the expected funding schedule and 

6 date of completion of each project. 

7 ‘‘(e) FUND MANAGEMENT.—Amounts in a State loan 

8 fund shall— 

9 ‘‘(1) remain available for providing financial as10 sistance under this section until distributed; 

11 ‘‘(2) if the amounts are not required for imme12 diate distribution or expenditure, be invested in in13 terest-bearing obligations; and 

14 ‘‘(3) except as provided in subsection (i), in15 clude only— 

16 ‘‘(A) amounts received from capitalization 

17 grants made under this section; 

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

19 fund; and 

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

21 fund. 

22 ‘‘(f) MATCHING FUNDS.— 

23 ‘‘(1) FULL GRANT.—On or before the date on 

24 which a participating State receives a capitalization 

25 grant, the State shall deposit into the State loan 


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1 fund of the State, in addition to the amount of the 

2 capitalization grant, an amount from non-Federal 

3 sources that is not less than 20 percent of the total 

4 amount of the capitalization grant. 

5 ‘‘(2) REDUCED GRANT.—Notwithstanding para6 graph (1), if a State deposits in the State loan fund 

7 of the State in connection to a capitalization grant 

8 an amount from non-Federal sources that is less 

9 than 20 percent of the total amount of the capital10 ization grant that would otherwise be received by the 

11 State, the Administrator shall reduce the amount of 

12 the capitalization grant received by the State to the 

13 amount that is 5 times the amount so deposited and 

14 shall allocate such remaining grant amounts under 

15 subsection (b)(5) together with the amounts allo16 cated under such subsection. 

17 ‘‘(g) TYPES OF ASSISTANCE.—Unless otherwise pro18 hibited by State law, a participating State may use the 

19 amounts deposited into a State loan fund under this sec20 tion only— 

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

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

23 more than the market interest rate; 

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

25 making principal and interest payments on the 


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1 loan not later than 1 year after the date on 

2 which the project for which the loan was made 

3 is completed; 

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

5 later than 20 years after the date on which the 

6 project for which the loan was made is com7 pleted, except that, in the case of a loan made 

8 for a project in a low-income geographic area or 

9 to a low-income homeowner, the State may pro10 vide a longer amortization period for the loan if 

11 that longer period— 

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

13 than 30 years after the date on which the 

14 project is completed; and 

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

16 design life of the project; 

17 ‘‘(D) the recipient of the loan dem18 onstrates, based on verified and documented in19 formation that, at the time the loan is con20 summated, that the recipient has a reasonable 

21 ability to repay the loan, according to its terms, 

22 except that this subparagraph may not be con23 strued to authorize any reduction or limitation 

24 in efforts to comply with the requirements of 

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1 sistance for low-income homeowners and low-in2 come geographical areas); and 

3 ‘‘(E) payments of principal and interest 

4 with respect to the loan will be deposited into 

5 the State loan fund; 

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

7 a local government at an interest rate that is not 

8 more than the market interest rate; 

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

10 local obligation, the proceeds of which finance a 

11 project eligible for assistance under this section, if 

12 the guarantee or purchase, as applicable, would— 

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

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

15 to the obligation; 

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

17 the payment of principal and interest on revenue or 

18 general obligation bonds issued by the State if the 

19 proceeds of the sale of the bonds will be deposited 

20 into the State loan fund; or 

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

22 ‘‘(h) ASSISTANCE FOR LOW-INCOME HOMEOWNERS

23 AND LOW-INCOME GEOGRAPHIC AREAS.— 

24 ‘‘(1) IN GENERAL.—Notwithstanding any other 

25 provision of this section, if a participating State uses 


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1 amounts from a State loan fund to provide financial 

2 assistance under subsection (c) in a low-income geo3 graphic area or to a low-income homeowner, the 

4 State may provide additional subsidization to the re5 cipient of the assistance, including forgiveness of the 

6 principal of a loan. 

7 ‘‘(2) LIMITATION.—For each fiscal year, the 

8 total amount of additional subsidization provided by 

9 a participating State under paragraph (1) may not 

10 exceed 30 percent of the amount of the capitaliza11 tion grant allocated to the State for that fiscal year. 

12 ‘‘(i) ADMINISTRATION OF FUND.— 

13 ‘‘(1) IN GENERAL.—A participating State may 

14 combine the financial administration of a State loan 

15 fund with the financial administration of any other 

16 revolving fund established by the State if— 

17 ‘‘(A) combining the administration of the 

18 funds would— 

19 ‘‘(i) be convenient and avoid adminis20 trative costs; and 

21 ‘‘(ii) not violate the law of the State; 

22 and 

23 ‘‘(B) the Administrator determines that— 

24 ‘‘(i) amounts obtained from a grant 

25 made under this section, amounts obtained 


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1 from the repayment of a loan made from 

2 a State loan fund, and interest earned on 

3 amounts in a State loan fund will be— 

4 ‘‘(I) accounted for separately 

5 from amounts from other revolving 

6 funds; and 

7 ‘‘(II) used only for purposes au8 thorized under this section; and 

9 ‘‘(ii) after consulting with the appro10 priate State agencies, the authority to es11 tablish assistance priorities and carry out 

12 oversight and related activities, other than 

13 financial administration, with respect to 

14 flood assistance remains with the State 

15 agency with primary responsibility for 

16 floodplain management. 

17 ‘‘(2) ADMINISTRATIVE AND TECHNICAL

18 COSTS.— 

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

20 participating State may use the amount de21 scribed in subparagraph (B) to— 

22 ‘‘(i) pay the reasonable costs of ad23 ministration of the programs under this 

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1 able costs incurred in establishing a State 

2 loan fund; 

3 ‘‘(ii) provide appropriate oversight of 

4 projects authorized under this section; and 

5 ‘‘(iii) provide technical assistance and 

6 outreach to recipients in the State of 

7 amounts under this section, including with 

8 respect to updating hazard mitigation 

9 plans and participating in the Community 

10 Rating System, in an amount that is not 

11 more than 4 percent of the funds made 

12 available to the State under this section. 

13 ‘‘(B) DESCRIPTION.—The amount de14 scribed in this subparagraph is an amount 

15 equal to the sum of— 

16 ‘‘(i) any fees collected by a partici17 pating State to recover the costs described 

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

19 source; and 

20 ‘‘(ii) the greatest of— 

21 ‘‘(I) $400,000; 

22 ‘‘(II) 0.2 percent of the value of 

23 the State loan fund of a State, as of 

24 the date on which the valuation is 

25 made; and 


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1 ‘‘(III) an amount equal to 7 per2 cent of all grant awards made to a 

3 participating State for the State loan 

4 fund of the State under this section 

5 for the fiscal year. 

6 ‘‘(3) AUDIT AND REPORT.— 

7 ‘‘(A) AUDIT REQUIREMENT.—Not less fre8 quently than biennially, each participating State 

9 shall conduct an audit of the State loan fund of 

10 the State. 

11 ‘‘(B) REPORT.—Each participating State 

12 shall submit to the Administrator a biennial re13 port regarding the activities of the State under 

14 this section during the period covered by the re15 port, including— 

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

17 by the State under subparagraph (A); and 

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

19 the State loan fund of the State with re20 spect to— 

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

22 State; and 

23 ‘‘(II) meeting the objectives de24 scribed in subsection (b)(1). 


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

2 respect to State loan funds established under this 

3 section, the Administrator— 

4 ‘‘(A) shall— 

5 ‘‘(i) periodically audit the funds in ac6 cordance with procedures established by 

7 the Comptroller General of the United 

8 States; and 

9 ‘‘(ii) not less frequently than once 

10 every 4 years, review each State loan fund 

11 to determine the effectiveness of the fund 

12 in reducing flood risk; and 

13 ‘‘(B) may, at any time— 

14 ‘‘(i) make recommendations to a par15 ticipating State with respect to the admin16 istration of the State loan fund of the 

17 State; or 

18 ‘‘(ii) require specific changes with re19 spect to a State loan fund in order to im20 prove the effectiveness of the fund. 

21 ‘‘(j) LIABILITY PROTECTIONS.—The Federal Govern22 ment shall not be liable for any claim based upon the exer23 cise or performance of, or the failure to exercise or per24 form, a discretionary function or duty on the part of the 


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1 Federal agency, or an employee of the Federal Govern2 ment, in carrying out the provision of this section. 

3 ‘‘(k) REGULATIONS.—The Administrator shall pro4 mulgate such guidance or regulations as may be necessary 

5 to carry out this section, including guidance or regulations 

6 that— 

7 ‘‘(1) ensure that each participating State to 

8 which funds are allocated under this section uses the 

9 funds as efficiently as possible; 

10 ‘‘(2) reduce, to the maximum extent prac11 ticable, waste, fraud, and abuse with respect to the 

12 implementation of this section; and 

13 ‘‘(3) require any party that receives funds di14 rectly or indirectly under this section, including a 

15 participating State and a recipient of amounts from 

16 a State loan fund, to use procedures with respect to 

17 the management of the funds that conform to gen18 erally accepted accounting standards. 

19 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There 

20 are authorized to be appropriated such sums as may be 

21 necessary to carry out this section for fiscal years 2020 

22 through 2029.’’. 


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1 SEC. 3. CONSIDERATION OF MITIGATION MEASURES FUND2 ED BY STATE LOAN FUNDS IN FLOOD INSUR3 ANCE PREMIUM RATES. 

4 (a) ESTIMATED RATES.—Clause (ii) of section 

5 1307(a)(1)(A) of the National Flood Insurance Act of 

6 1968 (42 U.S.C. 4014(a)(1)(A)(ii)) is amended by insert7 ing ‘‘and any activities assisted through amounts from a 

8 State loan fund established pursuant to section 1326,’’ 

9 after ‘‘similar measures,’’. 

10 (b) CHARGEABLE RATES.—Paragraph (1) of section 

11 1308(b) of the National Flood Insurance Act of 1968 (42 

12 U.S.C. 4015(b)(1)) is amended by striking ‘‘and similar 

13 measures’’ and inserting ‘‘similar measures, and any ac14 tivities assisted through amounts from a State loan fund 

15 established pursuant to section 1326’’. 

Æ 


pamtmann on DSKBFK8HB2PROD with BILLS