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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3872 Introduced in House (IH)]

<DOC>

116th CONGRESS
  1st Session
                                H. R. 3872

  To reauthorize the National Flood Insurance Program, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 22, 2019

 Mr. Pallone (for himself, Mr. Higgins of Louisiana, Mr. Pascrell, Ms. 
 Sherrill, Mr. Van Drew, Mr. Sires, Mr. Norcross, Mr. Malinowski, Mrs. 
Watson Coleman, Ms. Mucarsel-Powell, Mr. Crist, Mr. Payne, Mr. Kim, Mr. 
 Smith of New Jersey, Mrs. Murphy, and Mr. Gottheimer) introduced the 
   following bill; which was referred to the Committee on Financial 
   Services, and in addition to the Committee on Transportation and 
   Infrastructure, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
  To reauthorize the National Flood Insurance Program, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Flood Insurance Program 
Reauthorization and Reform Act of 2019''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
               TITLE I--REAUTHORIZATION AND AFFORDABILITY

Sec. 101. Reauthorization.
Sec. 102. Cap on annual premium increases.
Sec. 103. Means tested affordability voucher.
Sec. 104. Optional monthly installment premium payment plans.
Sec. 105. Study on business interruption coverage.
Sec. 106. Cooperative coverage fairness.
Sec. 107. Coverage limits.
Sec. 108. Study on participation rates.
                    TITLE II--MITIGATION AND MAPPING

Sec. 201. Mitigation for high-risk properties.
Sec. 202. Increased cost of compliance coverage.
Sec. 203. Flood mitigation assistance grants.
Sec. 204. Urban mitigation opportunities.
Sec. 205. Community Rating System Regional Coordinator.
Sec. 206. Mitigation loan program.
Sec. 207. Revolving loan funds.
Sec. 208. Mapping modernization.
Sec. 209. Protected areas.
Sec. 210. Community-wide flood mitigation activities.
                          TITLE III--SOLVENCY

Sec. 301. Forbearance on NFIP interest payments.
Sec. 302. Cap on Write Your Own company compensation.
Sec. 303. Taxpayer protection.
Sec. 304. Vendor costs; transparency.
Sec. 305. Availability of NFIP claims data.
Sec. 306. Refusal of mitigation assistance.
             TITLE IV--POLICYHOLDER PROTECTION AND FAIRNESS

Sec. 401. Earth movement fix and engineer standards.
Sec. 402. Coverage of pre-FIRM condominium basements and study on 
                            street raising.
Sec. 403. Guidance on remediation and policyholder duties.
Sec. 404. Appeal of decisions relating to flood insurance coverage.
Sec. 405. Accountability for underpayments and overpayments by Write 
                            Your Own companies.
Sec. 406. Policyholders' right to know.
Sec. 407. Increasing statute of limitations for lawsuits.
Sec. 408. Authority to terminate contractors and vendors.
Sec. 409. Easing proof of loss requirements.
Sec. 410. Deadline for claim processing.
Sec. 411. No manipulation of engineer reports.
Sec. 412. Improved training of floodplain managers, agents, and 
                            adjusters.
Sec. 413. Attorney fee shifting.
Sec. 414. DOJ defense against policyholder lawsuits.
Sec. 415. Pilot program for pre-existing structural conditions.
Sec. 416. Agent Advisory Council.
Sec. 417. Disclosure of flood risk information upon transfer of 
                            property.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Emergency Management Agency.
            (2) Federal flood insurance.--The term ``Federal flood 
        insurance'' means an insurance policy made available under the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.).
            (3) National flood insurance program.--The term ``National 
        Flood Insurance Program'' means the program established under 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
        seq.).
            (4) National flood mitigation fund.--The term ``National 
        Flood Mitigation Fund'' means the fund established under 
        section 1367 of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4104d).
            (5) Write your own company.--The term ``Write Your Own 
        Company'' means a private property insurance company that 
        participates in the Write Your Own Program.
            (6) Write your own program.--The term ``Write Your Own 
        Program'' means the program under which the Federal Emergency 
        Management Agency enters into a standard arrangement with 
        private property insurance companies to--
                    (A) sell contracts for Federal flood insurance 
                under their own business lines of insurance; and
                    (B) adjust and pay claims arising under the 
                contracts described in subparagraph (A).

               TITLE I--REAUTHORIZATION AND AFFORDABILITY

SEC. 101. REAUTHORIZATION.

    (a) Financing.--Section 1309(a) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4016(a)) is amended by striking ``September 30, 
2019'' and inserting ``September 30, 2024''.
    (b) Program Expiration.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
``September 30, 2019'' and inserting ``September 30, 2024''.
    (c) Program Continuation.--
            (1) In general.--Section 1310 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4017) is amended by adding at 
        the end the following:
    ``(g) Amounts in the National Flood Insurance Reserve Fund 
established under section 1310A may be credited to the National Flood 
Insurance Fund to enter into, and renew, contracts for flood insurance 
under this title during any lapse in appropriations.''.
            (2) Technical and conforming amendments.--Section 
        1310A(a)(2) of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4017A(a)(2)) is amended--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) for the purpose described in section 
                1310(g).''.

SEC. 102. CAP ON ANNUAL PREMIUM INCREASES.

    (a) Definition.--In this section, the term ``covered cost'' means--
            (1) the amount of an annual premium with respect to any 
        policy for flood insurance under the National Flood Insurance 
        Program;
            (2) any surcharge imposed with respect to a policy 
        described in paragraph (1), including a surcharge imposed 
        under--
                    (A) section 1304(b) of the National Flood Insurance 
                Act of 1968 (42 U.S.C. 4011(b)); or
                    (B) section 1308A(a) of the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4015a(a)); and
            (3) a fee described in paragraph (1)(B)(iii) or (2) of 
        section 1307(a) of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4014(a)).
    (b) Limitation on Increases.--During the 5-year period beginning on 
the date of enactment of this Act, and notwithstanding section 1308(e) 
of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)), the 
Administrator may not, in any year, increase the amount of any covered 
cost by an amount that is more than 9 percent, as compared with the 
amount of the covered cost during the previous year.
    (c) Rule of Construction.--Nothing in subsection (b) may be 
construed as prohibiting the Administrator from reducing, in any year, 
the amount of any covered cost, as compared with the amount of the 
covered cost during the previous year.
    (d) Average Historical Loss Year.--Section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by striking 
subsection (h) and inserting the following:
    ``(h) Rule of Construction.--For purposes of this section, the 
calculation of an `average historical loss year' shall be computed in 
accordance with generally accepted actuarial principles.''.
    (e) Disclosure With Respect to the Affordability Standard.--Section 
1308(j) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(j)) 
is amended, in the second sentence, by inserting ``and shall include in 
the report the number of those exceptions as of the date on which the 
Administrator submits the report and the location of each policyholder 
insured under those exceptions, organized by county and State'' after 
``of the Senate''.

SEC. 103. MEANS TESTED AFFORDABILITY VOUCHER.

    Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 
4011 et seq.) is amended by adding at the end the following:

``SEC. 1326. AFFORDABILITY ASSISTANCE.

    ``(a) Affordability Assistance Fund.--
            ``(1) Establishment.--The Administrator shall establish in 
        the Treasury of the United States an Affordability Assistance 
        Fund (referred to in this section as the `Fund'), which shall 
        be--
                    ``(A) an account separate from any other accounts 
                or funds available to the Administrator; and
                    ``(B) available without fiscal year limitation.
            ``(2) Use of funds.--Amounts from the Fund shall be 
        available to provide financial assistance under subsection (b).
            ``(3) Source of funds.--The Fund shall be credited with the 
        amounts saved as a direct result of the limitation imposed 
        under section 1311(b).
    ``(b) Financial Assistance.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `adjusted gross income' has the 
                meaning given the term in section 62 of the Internal 
                Revenue Code of 1986;
                    ``(B) the term `eligible household' means a 
                household for which--
                            ``(i) housing expenses exceed 30 percent of 
                        the adjusted gross income of the household in a 
                        year; and
                            ``(ii)(I) the total assets owned by the 
                        household are in an amount that is not greater 
                        than 220 percent of the median household income 
                        for the State in which the household is 
                        located; or
                            ``(II) with respect to a household that has 
                        a total household income that is not greater 
                        than 120 percent of the area median income for 
                        the area in which the household is located, the 
                        amount of premiums, surcharges, and fees for a 
                        flood insurance policy provided under this 
                        title in a year for the household exceeds 1 
                        percent of the coverage limit of that policy 
                        under section 1306(b); and
                    ``(C) the term `housing expenses' means, with 
                respect to a household, the total amount that the 
                household spends in a year on--
                            ``(i) mortgage payments;
                            ``(ii) property taxes;
                            ``(iii) homeowners insurance; and
                            ``(iv) premiums for flood insurance under 
                        the national flood insurance program.
            ``(2) Authority.--
                    ``(A) Other financial assistance.--The 
                Administrator shall provide a voucher, grant, or 
                premium credit to an eligible household for a year in 
                an amount that, subject to subparagraph (B), is equal 
                to the lesser of--
                            ``(i) the difference between--
                                    ``(I) the housing expenses of the 
                                household for the year; and
                                    ``(II) 30 percent of the adjusted 
                                gross income of the household for the 
                                year; and
                            ``(ii) the cost of premiums for the 
                        household for flood insurance under the 
                        national flood insurance program for the year.
                    ``(B) Reduction.--The amount of the assistance 
                provided under subparagraph (A) to an eligible 
                household shall be reduced by 1 percent for each 
                percent that the income of the eligible household 
                exceeds 120 percent of the median household income for 
                the State in which the property that is the subject of 
                the assistance is located.
            ``(3) Relationships with other agencies.--The Administrator 
        may enter into a memorandum of understanding with the head of 
        any other Federal agency to administer the paragraph (2)(A).''.

SEC. 104. OPTIONAL MONTHLY INSTALLMENT PREMIUM PAYMENT PLANS.

    Section 1308(g) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(g)) is amended--
            (1) by striking ``With respect to'' and inserting the 
        following:
            ``(1) Annual or monthly option.--Subject to paragraph (2), 
        with respect to''; and
            (2) by adding at the end the following:
            ``(2) Monthly installment.--With respect to a policyholder 
        that opts under paragraph (1) to pay premiums on a monthly 
        basis, the Administrator may charge the policyholder an annual 
        fee of not more than $15.
            ``(3) Exemption from rule making; pilot program.--During 
        the period beginning on the date of enactment of this paragraph 
        and ending on the date on which the Administrator promulgates 
        regulations carrying out paragraph (1), the Administrator may, 
        notwithstanding any other provision of law--
                    ``(A) adopt policies and procedures to carry out 
                that paragraph without--
                            ``(i) undergoing notice and comment rule 
                        making under section 553 of title 5, United 
                        States Code; or
                            ``(ii) conducting regulatory analyses 
                        otherwise required by statute, regulation, or 
                        Executive order; or
                    ``(B) carry out that paragraph by establishing a 
                pilot program that gradually implements the 
                requirements of that paragraph.''.

SEC. 105. STUDY ON BUSINESS INTERRUPTION COVERAGE.

    (a) In General.--The Administrator shall conduct a study on the 
feasibility and soundness of offering coverage for interruption 
business losses caused by a flood under the National Flood Insurance 
Program (referred to in this section as ``business interruption 
coverage'').
    (b) Contents.--In conducting the study under subsection (a), the 
Administrator shall, at a minimum--
            (1) evaluate insurance industry best practices for offering 
        business interruption coverage, including the types of coverage 
        provided and the utilization rate;
            (2) estimate the potential risk premium rates for business 
        interruption coverage based on the flood risk reflected in the 
        flood insurance rate map or other risk metrics in effect at the 
        time of purchase;
            (3) analyze the operational and administrative expenses 
        associated with providing business interruption coverage and 
        adjusting claims;
            (4) identify potential obstacles that may prevent the 
        Administrator from offering business interruption coverage;
            (5) evaluate the benefits of providing business 
        interruption coverage;
            (6) analyze any potential impacts on the financial position 
        of the National Flood Insurance Program; and
            (7) develop a feasibility implementation plan and projected 
        timelines for offering business interruption coverage.
    (c) Availability of Experts.--In conducting the study under 
subsection (a), the Administrator may accept and utilize the personnel 
and services of any other Federal agency, and appoint and fix the 
compensation of temporary personnel without regard to the provisions of 
title 5, United States Code, governing appointments in the competitive 
service, or employ experts and consultants in accordance with the 
provisions of section 3109 of such title, without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of such title 
relating to classification and General Schedule pay rates.
    (d) Deadline.--The Administrator shall complete the study required 
under subsection (a) not later than September 30 of the second full 
fiscal year after the date of enactment of this Act.

SEC. 106. COOPERATIVE COVERAGE FAIRNESS.

    (a) In General.--Section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013) is amended by adding at the end the following:
    ``(e) Cooperatives.--
            ``(1) Definition.--In this subsection, the term 
        `cooperative building' has the meaning given the term in 
        section 1312(d).
            ``(2) Equal treatment with condominiums.--Notwithstanding 
        any other provision of law, an owner of a share of a 
        cooperative building shall be eligible to purchase flood 
        insurance coverage under the national flood insurance program 
        on the same terms as a condominium owner.''.
    (b) Payment of Claims.--Section 1312 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4019) is amended--
            (1) in subsection (c)--
                    (A) in the subsection heading, by inserting ``and 
                Cooperative'' after ``Condominium'';
                    (B) by inserting ``or owners of a share of a 
                cooperative building'' after ``condominium owners''; 
                and
                    (C) by inserting ``or cooperative association'' 
                after ``condominium association'' each place that term 
                appears; and
            (2) by adding at the end the following:
    ``(d) Definitions.--In this section, the terms `cooperative 
association' and `cooperative building' have the meanings given the 
terms by the Administrator.''.

SEC. 107. COVERAGE LIMITS.

    (a) In General.--Section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013), as amended by section 106(a), is amended--
            (1) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``In addition to any other terms and 
                conditions under subsection (a), such regulations'' and 
                inserting ``The Administrator'';
                    (B) in paragraph (2)--
                            (i) by striking ``shall be made'' and 
                        inserting ``may be made''; and
                            (ii) by striking ``$250,000'' and inserting 
                        ``the baseline amount'';
                    (C) in paragraph (3)--
                            (i) by striking ``shall be made'' and 
                        inserting ``may be made''; and
                            (ii) by striking ``$100,000'' and inserting 
                        ``50 percent of the baseline amount''; and
                    (D) in paragraph (4)--
                            (i) by striking ``shall be made'' each 
                        place that term appears and inserting ``may be 
                        made''; and
                            (ii) by striking ``$500,000'' each place 
                        that term appears and inserting ``200 percent 
                        of the baseline amount''; and
            (2) by adding at the end the following:
    ``(f) Definition.--
            ``(1) In general.--Subject to paragraph (2), in this 
        section, the term `baseline amount', with respect to a 
        property, means the maximum original principal obligation of a 
        conventional mortgage that may be purchased by the Federal 
        National Mortgage Association in the area in which the property 
        as located, as established under section 302(b)(2) of the 
        Federal National Mortgage Association Charter Act (12 U.S.C. 
        1717(b)(2)).
            ``(2) Clarification.--If, after the date of enactment of 
        this subsection, the baseline amount, as defined in paragraph 
        (1), decreases as compared with the baseline amount in effect 
        on the day before the date of enactment of this subsection, the 
        baseline amount that was in effect on the day before the date 
        of enactment of this subsection shall be deemed to be the 
        baseline amount for the purposes of paragraphs (2), (3), and 
        (4) of subsection (b).''.
    (b) Authority of Administrator To Sell Policies.--The Administrator 
may sell a policy for flood insurance under the National Flood 
Insurance Program that meets the requirements of paragraphs (2), (3), 
and (4) of section 1306(b) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4013(b)), as amended by subsection (a), without regard to--
            (1) section 61.6 of title 44, Code of Federal Regulations, 
        as in effect on the day before the date of enactment of this 
        Act; or
            (2) any other provision of law.

SEC. 108. STUDY ON PARTICIPATION RATES.

    (a) Definitions.--In this section--
            (1) the term ``500-year floodplain'' has the meaning given 
        the term in section 100202(a) of the Biggert-Waters Flood 
        Insurance Reform Act of 2012 (40 U.S.C. 4004(a));
            (2) the terms ``Federal agency lender'', ``improved real 
        estate'', and ``regulated lending institution'' have the 
        meanings given those terms in section 3(a) of the Flood 
        Disaster Protection Act of 1973 (42 U.S.C. 4003(a)); and
            (3) the term ``property with a Federally backed mortgage'' 
        means improved real estate or a mobile home securing a loan 
        that was--
                    (A) made by a regulated lending institution or 
                Federal agency lender; or
                    (B) purchased by the Federal National Mortgage 
                Association or the Federal Home Loan Mortgage 
                Corporation.
    (b) Study.--The Comptroller General of the United States shall 
conduct a study that proposes to address, through programmatic and 
regulatory changes, how to increase the rate at which properties in the 
United States are covered by flood insurance.
    (c) Considerations.--In conducting the study required under 
subsection (b), the Comptroller General of the United States shall--
            (1) consider--
                    (A) expanding participation in the National Flood 
                Insurance Program beyond areas having special flood 
                hazards to areas of moderate or minimum risk with 
                respect to flooding;
                    (B) automatically enrolling consumers in the 
                National Flood Insurance Program and providing those 
                consumers with the opportunity to decline such 
                enrollment; and
                    (C) bundling flood insurance coverage that 
                diversifies risk across all or multiple forms of peril; 
                and
            (2) determine--
                    (A) the percentage of properties with Federally 
                backed mortgages located in an area having special 
                flood hazards that are covered by flood insurance that 
                satisfies the requirement under section 102(b) of the 
                Flood Disaster Protection Act of 1973 (42 U.S.C. 
                4012a(b)); and
                    (B) the percentage of properties with Federally 
                backed mortgages located in the 500-year floodplain 
                that are covered by flood insurance that would satisfy 
                the requirement described in subparagraph (A) if that 
                requirement applied to such properties.
    (d) Report.--Not later than 18 months after the date of enactment 
of this Act, the Comptroller General of the United States shall submit 
to the Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of Representatives 
a report regarding the results of the study conducted under subsection 
(b).

                    TITLE II--MITIGATION AND MAPPING

SEC. 201. MITIGATION FOR HIGH-RISK PROPERTIES.

    (a) In General.--Section 203 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5133) is amended by 
adding at the end the following:
    ``(n) Flood Mitigation Activities.--The President shall set aside 
from the Disaster Relief Fund an amount equal to 10 percent of the 
average amount appropriated to the Fund during the preceding 10 fiscal 
years to provide assistance for mitigation activities under section 
1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) 
for--
            ``(1) severe repetitive loss structures; and
            ``(2) properties insured under the national flood insurance 
        program with the largest increase in the actuarial risk for the 
        property compared to the actuarial risk for the previous fiscal 
        year as a result of Risk Rating 2.0, as in effect on October 1, 
        2020.''.
    (b) Applicability.--The amendment made to section 203 of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5133) by subsection (a) shall apply to funds appropriated on or after 
the date of enactment of this Act.
    (c) Technical and Conforming Amendment.--Effective on October 5, 
2023, section 203 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5133) is amended by redesignating 
subsection (n), as added by subsection (a) of this section, as 
subsection (m).

SEC. 202. INCREASED COST OF COMPLIANCE COVERAGE.

    Section 1304(b) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4011(b)) is amended--
            (1) in paragraph (4), by redesignating subparagraphs (A) 
        through (D) as clauses (i) through (iv), respectively, and 
        adjusting the margins accordingly;
            (2) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively, and adjusting the 
        margins accordingly;
            (3) in subparagraph (C), as so redesignated, by striking 
        the period at the end and inserting a semicolon;
            (4) by redesignating paragraph (4) as subparagraph (F), and 
        adjusting the margins accordingly;
            (5) by inserting after subparagraph (C), as so 
        redesignated, the following:
                    ``(D) properties identified by the Administrator as 
                priorities for mitigation activities before the 
                occurrence of damage to or loss of property which is 
                covered by flood insurance;
                    ``(E) properties outside an area having special 
                flood hazards if the communities in which the 
                properties are located have, under section 1361, 
                established land use and control measures for the areas 
                in which the properties are located; and'';
            (6) by inserting before ``The national flood insurance 
        program'' the following: ``(1) In general.--'';
            (7) in the flush text following subparagraph (F)(iv), by 
        striking ``The Administrator'' and inserting the following:
    ``(2) Premium.--The Administrator''; and
            (8) by adding at the end the following:
    ``(3) Amount of Coverage.--Each policy for flood insurance coverage 
made available under this title shall provide coverage under this 
subsection having an aggregate liability for any single property of 
$60,000.
    ``(4) Eligible Mitigation Activities.--
            ``(A) In general.--Eligible mitigation methods the cost of 
        which is covered by coverage provided under this subsection 
        shall include--
                    ``(i) alternative methods of mitigation identified 
                in the guidelines issued pursuant to section 1361(d);
                    ``(ii) pre-disaster mitigation projects for 
                eligible structures; and
                    ``(iii) costs associated with the purchase, 
                clearing, and stabilization of property that is part of 
                an acquisition or relocation project that complies with 
                subparagraph (B).
            ``(B) Acquisition and relocation project eligibility and 
        requirements.--
                    ``(i) In general.--An acquisition or relocation 
                project shall be eligible to receive assistance 
                pursuant to subparagraph (A)(iii) only if--
                            ``(I) any property acquired, accepted, or 
                        from which a structure will be removed shall be 
                        dedicated and maintained in perpetuity for a 
                        use that is compatible with open space, 
                        recreational, or wetland and natural floodplain 
                        management practices; and
                            ``(II) any new structure erected on such 
                        property will be--
                                    ``(aa) a public facility that is 
                                open on all sides and functionally 
                                related to a designated open space;
                                    ``(bb) a restroom; or
                                    ``(cc) a structure that the 
                                Administrator approves in writing 
                                before the commencement of the 
                                construction of the structure.
                    ``(ii) Further assistance.--If an acquisition or 
                relocation project is assisted pursuant to subparagraph 
                (A)(iii)--
                            ``(I) no person may apply to a Federal 
                        entity for disaster assistance with regard to 
                        any property acquired, accepted, or from which 
                        a structure was removed as part of such 
                        acquisition or relocation project; and
                            ``(II) no Federal entity may provide 
                        disaster assistance for such property.
                    ``(iii) Requirement to maintain flood insurance 
                coverage.--
                            ``(I) In general.--Notwithstanding any 
                        other provision of law, any assisted structure 
                        shall, at all times, maintain insurance against 
                        flood damage, in accordance with Federal law, 
                        for the life of such structure.
                            ``(II) Transfer of property.--
                                    ``(aa) Duty to notify.--If any part 
                                of a property on which an assisted 
                                structure is located is transferred, 
                                the transferor shall, not later than 
                                the date on which such transfer occurs, 
                                notify the transferee in writing, 
                                including in all documents evidencing 
                                the transfer of ownership of the 
                                property, that such transferee is 
                                required to--
                                            ``(AA) obtain flood 
                                        insurance in accordance with 
                                        applicable Federal law with 
                                        respect to such assisted 
                                        structure, if such structure is 
                                        not so insured on the date on 
                                        which the structure is 
                                        transferred; and
                                            ``(BB) maintain flood 
                                        insurance in accordance with 
                                        applicable Federal law with 
                                        respect to such structure.
                                    ``(bb) Failure to notify.--If a 
                                transferor fails to make a notification 
                                in accordance with item (aa) and such 
                                assisted structure is damaged by a 
                                flood disaster, the transferor shall 
                                pay the Federal Government an amount 
                                equal to the amount of any disaster 
                                relief provided by the Federal 
                                Government with respect to such 
                                assisted structure.
                            ``(III) Assisted structure defined.--For 
                        the purposes of this clause, the term `assisted 
                        structure' means a structure on property that 
                        is part of an acquisition or relocation project 
                        assisted pursuant to subparagraph (A) that was, 
                        as part of such acquisition or relocation 
                        project--
                                    ``(aa) altered;
                                    ``(bb) improved;
                                    ``(cc) replaced;
                                    ``(dd) repaired; or
                                    ``(ee) restored.
            ``(C) Eligible structure defined.--For purposes of this 
        paragraph, the term `eligible structure' means any structure 
        that--
                    ``(i) was constructed in compliance with the Flood 
                Insurance Rate Map and local building and zoning codes 
                in effect on the date of construction of the structure; 
                and
                    ``(ii) has not previously been altered, improved, 
                replaced, or repaired using assistance provided under 
                this subsection.
    ``(5) Treatment of Coverage Limits.--Any amount of coverage 
provided for a property pursuant to this subsection shall not be 
considered or counted for purposes of any limitation on coverage 
applicable to such property under section 1306(b) and any claim on such 
coverage shall not be considered a claim for purposes of section 
1307(h) or subsection (a)(3) or (h)(3) of section 1366.
    ``(6) Implementation.--Notwithstanding any other provision of law, 
the Administrator may implement this subsection by adopting 1 or more 
standard endorsements to the Standard Flood Insurance Policy by 
publication of such standards in the Federal Register, or by comparable 
means.''.

SEC. 203. FLOOD MITIGATION ASSISTANCE GRANTS.

    (a) Flood Mitigation Assistance Grant Program Priority.--Section 
1366 of the National Flood Insurance Act (42 U.S.C. 4104c) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1), (2), and (3) 
                as subparagraphs (A), (B), and (C), respectively, and 
                adjusting the margins accordingly;
                    (B) in the second sentence of the matter preceding 
                subparagraph (A), as so redesignated, by striking 
                ``assistance shall be'' and inserting the following: 
                ``assistance shall--
            ``(1) be'';
                    (C) in paragraph (1)(C), as so redesignated, by 
                striking the period at the end and inserting ``; and''; 
                and
                    (D) by adding at the end the following:
            ``(2) in addition to the requirement under paragraph 
        (1)(C), give priority to properties--
                    ``(A) that are repetitive loss structures;
                    ``(B) with respect to which the Administrator makes 
                a determination that the premium rates with respect to 
                a policy for flood insurance coverage under this 
                title--
                            ``(i) are unaffordable; or
                            ``(ii) will soon become unaffordable as a 
                        result of a risk adjustment under Risk Rating 
                        2.0, as in effect on the date of that 
                        determination; and
                    ``(C) for which aggregate losses exceed the 
                replacement value of the properties.''; and
            (2) in subsection (h), by adding at the end the following:
            ``(4) Unaffordable.--The term `unaffordable' means, with 
        respect to the premium rates for a policy for flood insurance 
        coverage under this title, that, in a year, those rates are in 
        an such an amount that the housing expenses (as defined in 
        section 1326(b)(1)) of the household that is the subject of the 
        policy are, for that year, more than 30 percent of the adjusted 
        gross income (as defined in section 1326(b)(1)) of the 
        household for that year.''.
    (b) Additional Mitigation Assistance.--
            (1) Appropriations from general fund of treasury.--For each 
        of the first 5 full fiscal years after the date of enactment of 
        this Act, there is authorized to be appropriated $1,000,000,000 
        to the National Flood Mitigation Fund to provide mitigation 
        assistance under this subsection.
            (2) Rule of construction.--The authorization of 
        appropriations under subparagraph (A) shall not be construed to 
        authorize the transfer or crediting to the National Flood 
        Mitigation Fund of any amounts from the National Flood 
        Insurance Fund.

SEC. 204. URBAN MITIGATION OPPORTUNITIES.

    (a) Mitigation Strategies.--Section 1361(d)(1) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4102(d)(1)) is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking ``and'' at the end; 
        and
            (3) by inserting after subparagraph (B) the following:
                    ``(C) with respect to buildings in dense urban 
                environments, methods that can be deployed on a block 
                or neighborhood scale; and
                    ``(D) elevation of mechanical systems; and''.
    (b) Mitigation Credit.--Section 1308(k) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015(k)) is amended--
            (1) by striking ``shall take into account'' and inserting 
        ``shall--
            ``(1) take into account'';
            (2) in paragraph (1), as so designated, by striking the 
        period at the end and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(2) offer a reduction of the risk premium rate charged to 
        a policyholder in an amount that is not less than 10 percent of 
        that rate if the policyholder implements any mitigation method 
        described in paragraph (1).''.

SEC. 205. COMMUNITY RATING SYSTEM REGIONAL COORDINATOR.

    Section 1315(b) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4022(b)) is amended by adding at the end the following:
            ``(5) Regional coordinator.--
                    ``(A) In general.--The Administrator shall appoint 
                a regional coordinator in each region served by a 
                Regional Office (as defined in section 501 of the 
                Homeland Security Act of 2002 (6 U.S.C. 311)) to 
                provide technical assistance to small communities to 
                enable those communities to effectively participate in 
                and benefit from the community rating system program.
                    ``(B) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as may be 
                necessary to carry out this paragraph, which shall 
                remain available until expended.''.

SEC. 206. MITIGATION LOAN PROGRAM.

    (a) Definition.--In this section, the term ``mitigation measure'' 
means, with respect to a structure, a measure undertaken to reduce the 
risk of flood damage to the structure.
    (b) Establishment.--The Administrator may establish a pilot program 
through which the Administrator may provide low-interest loans to 
policyholders under the National Flood Insurance Program for the 
purposes described in subsection (c).
    (c) Purposes of Loans.--A loan provided to a policyholder under the 
pilot program established under subsection (b) shall be used to 
undertake mitigation measures with respect to the insured property that 
cost less than the cost of the estimated amount of premiums that would 
be paid with respect to the property during the 50-year period 
beginning in the year in which the loan is made and if those mitigation 
measures were not undertaken.
    (d) Sale of Property.--If a property with respect to which a loan 
has been made under this section is sold, upon that sale, the 
outstanding loan balance shall--
            (1) be repaid using the proceeds of the sale; or
            (2) carry over to the purchaser of the property if the 
        purchaser so consents before the execution of the sale.

SEC. 207. REVOLVING LOAN FUNDS.

    (a) In General.--Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.), as amended by section 103, is amended by 
adding at the end the following:

``SEC. 1327. STATE REVOLVING LOAN FUNDS FOR FLOOD MITIGATION.

    ``(a) Definitions.--In this section:
            ``(1) Community rating system.--The term `Community Rating 
        System' means the community rating system program carried out 
        under section 1315(b).
            ``(2) Eligible state.--The term `eligible State' means a 
        State, the District of Columbia, and the Commonwealth of Puerto 
        Rico.
            ``(3) Insular area.--The term `insular area' means--
                    ``(A) Guam;
                    ``(B) American Samoa;
                    ``(C) the Commonwealth of the Northern Mariana 
                Islands;
                    ``(D) the Federated States of Micronesia;
                    ``(E) the Republic of the Marshall Islands;
                    ``(F) the Republic of Palau; and
                    ``(G) the United States Virgin Islands.
            ``(4) Intended use plan.--The term `intended use plan' 
        means a plan prepared under subsection (d)(1).
            ``(5) Low-income geographic area.--The term `low-income 
        geographic area' means an area described in paragraph (1) or 
        (2) of section 301(a) of the Public Works and Economic 
        Development Act of 1965 (42 U.S.C. 3161(a)).
            ``(6) Low-income homeowner.--The term `low-income 
        homeowner' means the owner of a primary residence, the 
        household income of which in a taxable year is not more than 80 
        percent of the median income for the area in which the 
        residence is located.
            ``(7) Participating state.--The term `participating State' 
        means an eligible State that--
                    ``(A) has entered into an agreement under 
                subsection (b)(1); and
                    ``(B) agrees to comply with the requirements of 
                this section.
            ``(8) Pre-FIRM building.--The term `pre-FIRM building' 
        means a building for which construction or substantial 
        improvement occurred before the effective date of the initial 
        Flood Insurance Rate Map published by the Administrator under 
        section 1360 for the area in which the building is located.
            ``(9) Repetitive loss structure.--The term `repetitive loss 
        structure' has the meaning given the term in section 1370(a).
            ``(10) Severe repetitive loss property.--The term `severe 
        repetitive loss property' has the meaning given the term in 
        section 1307(h).
            ``(11) State loan fund.--The term `State loan fund' means a 
        flood mitigation assistance revolving loan fund established by 
        an eligible State under this section.
            ``(12) Tribal government.--The term `tribal government' 
        means the recognized government of an Indian tribe, or the 
        governing body of an Alaska Native regional or village 
        corporation, that has been determined eligible to receive 
        services from the Bureau of Indian Affairs.
    ``(b) General Authority.--
            ``(1) In general.--The Administrator may enter into an 
        agreement with an eligible State to provide a capitalization 
        grant for the eligible State to establish a revolving fund that 
        will provide funding assistance to help homeowners, businesses, 
        nonprofit organizations, and communities reduce flood risk in 
        order to decrease--
                    ``(A) the loss of life and property;
                    ``(B) the cost of flood insurance; and
                    ``(C) Federal disaster payments.
            ``(2) Timing of deposit and agreements for distribution of 
        funds.--
                    ``(A) In general.--Not later than the last day of 
                the fiscal year following the fiscal year in which a 
                capitalization grant is made to a participating State 
                under paragraph (1), the participating State shall--
                            ``(i) deposit the grant in the State loan 
                        fund of the State; and
                            ``(ii) enter into 1 or more binding 
                        agreements that provide for the State to 
                        distribute the grant funds for purposes 
                        authorized under subsection (c) such that--
                                    ``(I) in the case of the initial 
                                grant made to a State under this 
                                section, not less than 75 percent of 
                                the amount of the grant shall be 
                                distributed before the end of the 2-
                                year period beginning on the date on 
                                which the funds are deposited in the 
                                State loan fund of the State; and
                                    ``(II) in the case of any 
                                subsequent grant made to a State under 
                                this section, not less than 90 percent 
                                of the amount of the grant shall be 
                                distributed before the end of the 1-
                                year period beginning on the date on 
                                which the funds are deposited in the 
                                State loan fund of the State.
                    ``(B) Noncompliance.--Except as provided in 
                subparagraph (C), if a participating State does not 
                comply with subparagraph (A) with respect to a grant, 
                the Administrator shall reallocate the grant in 
                accordance with paragraph (3)(B).
                    ``(C) Exception.--The Administrator may not 
                reallocate any funds under subparagraph (B) to a 
                participating State that violated subparagraph (A) with 
                respect to a grant made during the same fiscal year in 
                which the funds to be reallocated were originally made 
                available.
            ``(3) Allocation.--
                    ``(A) In general.--The Administrator shall allocate 
                amounts made available to carry out this section to 
                participating States--
                            ``(i) for the participating States to 
                        deposit in the State loan funds established by 
                        the participating States; and
                            ``(ii) except as provided in paragraph (6), 
                        in accordance with the requirements described 
                        in subparagraph (B).
                    ``(B) Requirements.--The requirements described in 
                this subparagraph are as follows:
                            ``(i) Fifty percent of the total amount 
                        made available under subparagraph (A) shall be 
                        allocated so that each participating State 
                        receives the percentage amount that is obtained 
                        by dividing the number of properties that were 
                        insured under the national flood insurance 
                        program in that State in the fiscal year 
                        preceding the fiscal year in which the amount 
                        is allocated by the total number of properties 
                        that were insured under the national flood 
                        insurance program in the fiscal year preceding 
                        the fiscal year in which the amount is 
                        allocated.
                            ``(ii) Fifty percent of the total amount 
                        made available under subparagraph (A) shall be 
                        allocated so that each participating State 
                        receives a percentage of funds that is equal to 
                        the product obtained under clause (iii)(IV) 
                        with respect to that participating State after 
                        following the procedures described in clause 
                        (iii).
                            ``(iii) The procedures described in this 
                        clause are as follows:
                                    ``(I) Divide the total amount 
                                collected in premiums for properties 
                                insured under the national flood 
                                insurance program in each participating 
                                State during the previous fiscal year 
                                by the number of properties insured 
                                under the national flood insurance 
                                program in that State for that fiscal 
                                year.
                                    ``(II) Add together each quotient 
                                obtained under subclause (I).
                                    ``(III) For each participating 
                                State, divide the quotient obtained 
                                under subclause (I) with respect to 
                                that State by the sum obtained under 
                                subclause (II).
                                    ``(IV) For each participating 
                                State, multiply the amount that is 50 
                                percent of the total amount made 
                                available under subparagraph (A) by the 
                                quotient obtained under subclause 
                                (III).
                            ``(iv) Except as provided in paragraph (5), 
                        in a fiscal year--
                                    ``(I) a participating State may not 
                                receive more than 15 percent of the 
                                total amount that is made available 
                                under subparagraph (A) in that fiscal 
                                year; and
                                    ``(II) if a participating State, 
                                based on the requirements under clauses 
                                (i) through (iii), would, but for the 
                                limitation under subclause (I) of this 
                                clause, receive an amount that is 
                                greater than the amount that the State 
                                is authorized to receive under that 
                                subclause, the difference between the 
                                authorized amount and the amount 
                                otherwise due to the State under 
                                clauses (i) through (iii) shall be 
                                allocated to other participating 
                                States--
                                            ``(aa) that, in that fiscal 
                                        year, have not received an 
                                        amount under subparagraph (A) 
                                        that is more than the 
                                        authorized amount under 
                                        subclause (I) of this clause; 
                                        and
                                            ``(bb) by using the 
                                        requirements under clauses (i) 
                                        through (iii), except that a 
                                        participating State may receive 
                                        an allocation under this 
                                        subclause only if the 
                                        allocation does not result in 
                                        the State receiving a total 
                                        amount for the fiscal year 
                                        under subparagraph (A) that is 
                                        greater than the authorized 
                                        amount under subclause (I).
            ``(4) No revolving fund required.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this section, and subject to subparagraph 
                (B), a participating State that receives less than 
                $4,000,000 under paragraph (3)(B) in a fiscal year may 
                distribute the funds directly in the form of grants or 
                technical assistance for a purpose described in 
                subsection (c)(2), without regard to whether the State 
                has established a State loan fund.
                    ``(B) State matching.--A participating State that 
                exercises the authority under subparagraph (A) in a 
                fiscal year shall provide matching funds from non-
                Federal sources in an amount that is equal to 25 
                percent of the amount that the State receives under 
                paragraph (3)(B) in that fiscal year for purposes 
                described in subparagraph (A).
            ``(5) Allocation of remaining funds.--After allocating 
        amounts made available to carry out this section for a fiscal 
        year in accordance with paragraph (3), the Administrator shall 
        allocate any remaining amounts made available for that fiscal 
        year to participating States, using the procedures described in 
        clauses (i) through (iii) of paragraph (3)(B).
            ``(6) Reservation of funds.--The Administrator shall 
        reserve not more than 1.5 percent of the amount made available 
        to carry out this section in a fiscal year--
                    ``(A) for administrative costs incurred in carrying 
                out this section;
                    ``(B) to provide technical assistance to recipients 
                of grants under this section; and
                    ``(C) to enter into grant agreements with tribal 
                governments and insular areas, with the grant funds to 
                be distributed--
                            ``(i) according to criteria established by 
                        the Administrator; and
                            ``(ii) for a purpose described in 
                        subsection (c)(2).
    ``(c) Use of Funds.--
            ``(1) In general.--Amounts deposited in a State loan fund, 
        including repayments of loans made from the fund and interest 
        earned on the amounts in the fund, shall be used--
                    ``(A) consistent with paragraph (2) and subsection 
                (g), to provide financial assistance for--
                            ``(i) homeowners, businesses, and nonprofit 
                        organizations that are eligible to participate 
                        in the national flood insurance program; and
                            ``(ii) any local government that 
                        participates in the national flood insurance 
                        program;
                    ``(B) as a source of revenue and security for 
                leveraged loans, the proceeds of which shall be 
                deposited in the State loan fund; or
                    ``(C) for the sale of bonds as security for payment 
                of the principal and interest on revenue or general 
                obligation bonds issued by the participating State to 
                provide matching funds under subsection (f), if the 
                proceeds from the sale of the bonds are deposited in 
                the State loan fund.
            ``(2) Purposes.--A recipient of financial assistance 
        provided through amounts from a State loan fund--
                    ``(A) shall use the amounts to reduce--
                            ``(i) flood risk; or
                            ``(ii) potential claims for losses covered 
                        under the national flood insurance program;
                    ``(B) shall use the amounts in a cost-effective 
                manner under requirements established by the State, 
                which may require an applicant for financial assistance 
                to submit any information that the State considers 
                relevant or necessary before the date on which the 
                applicant receives the assistance;
                    ``(C) shall use the amounts for projects that--
                            ``(i) meet design and construction 
                        standards established by the Administrator;
                            ``(ii) are located in communities that--
                                    ``(I) participate in the national 
                                flood insurance program; and
                                    ``(II) have developed a State or 
                                community flood risk mitigation plan 
                                that has been approved by the 
                                Administrator under section 1366;
                            ``(iii) address--
                                    ``(I) a repetitive loss structure 
                                or a severe repetitive loss property; 
                                or
                                    ``(II) flood risk in the 500-year 
                                floodplain, areas of residual flood 
                                risk, or other areas of potential flood 
                                risk, as identified by the 
                                Administrator; and
                            ``(iv) address current risk and anticipate 
                        future risk, such as sea-level rise;
                    ``(D) may use the amounts--
                            ``(i) for projects relating to--
                                    ``(I) structural elevation;
                                    ``(II) floodproofing;
                                    ``(III) the relocation or removal 
                                of buildings from the 100-year 
                                floodplain or other areas of flood 
                                risk, including the acquisition of 
                                properties for such a purpose;
                                    ``(IV) environmental restoration 
                                activities that directly reduce flood 
                                risk;
                                    ``(V) any eligible activity 
                                described in subparagraphs (A) through 
                                (G) of section 1366(c)(3); or
                                    ``(VI) other activities determined 
                                appropriate by the Administrator;
                            ``(ii) with respect to a project described 
                        in clause (i), only for expenditures directly 
                        related to a project described in that clause, 
                        including expenditures for planning, design, 
                        and associated pre-construction activities; and
                            ``(iii) to acquire, for the purposes of 
                        permanent protection, land, buildings, or a 
                        conservation easement from a willing seller or 
                        grantor;
                    ``(E) may not use the amounts--
                            ``(i) to construct buildings or expand 
                        existing buildings, unless the activity is for 
                        the purpose of flood mitigation;
                            ``(ii) to improve any structure, unless the 
                        recipient has obtained flood insurance 
                        coverage, which shall be maintained for the 
                        useful life of the structure, in an amount that 
                        is not less than the lesser of--
                                    ``(I) the eligible project costs 
                                with respect to the structure; and
                                    ``(II) the maximum insurable limit 
                                for the structure under the national 
                                flood insurance program coverage for 
                                the structure;
                            ``(iii) to improve a residential property 
                        with an appraised value that is not less than 
                        125 percent of the limitation on the maximum 
                        original principal obligation of a conventional 
                        mortgage that may be purchased by the Federal 
                        National Mortgage Association or the Federal 
                        Home Loan Mortgage Corporation in the area in 
                        which the property is located, as established 
                        under section 302(b)(2) of the Federal National 
                        Mortgage Association Charter Act (12 U.S.C. 
                        1717(b)(2)) and section 305(a)(2) of the 
                        Federal Home Loan Mortgage Corporation Act (12 
                        U.S.C. 1454(a)(2));
                            ``(iv) for the direct benefit of a 
                        homeowner if the annual household adjusted 
                        gross income of the homeowner during the 
                        previous fiscal year was not less than 
                        $200,000, as annually adjusted by the 
                        Administrator to reflect changes in the 
                        Consumer Price Index for All Urban Consumers, 
                        as published by the Bureau of Labor Statistics 
                        of the Department of Labor and rounded to the 
                        nearest $25; or
                            ``(v) to acquire real property or an 
                        interest in real property unless the property 
                        is purchased from a willing seller; and
                    ``(F) to the maximum extent practicable, shall, in 
                using those amounts, give priority to projects that 
                assist low-income homeowners and low-income 
                geographical areas.
    ``(d) Intended Use Plans.--
            ``(1) In general.--After providing the opportunity for 
        public review and comment, each participating State shall 
        annually prepare a plan that identifies, for the year following 
        the date of issuance of the intended use plan, the intended 
        uses of the amounts available in the State loan fund of the 
        participating State.
            ``(2) Consultation during preparation.--Each participating 
        State, in preparing an intended use plan, shall ensure that the 
        State agency with primary responsibility for floodplain 
        management--
                    ``(A) provides oversight with respect to the 
                preparation of the intended use plan; and
                    ``(B) consults with any other appropriate State 
                agency, including agencies responsible for coastal and 
                environmental management.
            ``(3) Contents.--A participating State shall, in each 
        intended use plan--
                    ``(A) include--
                            ``(i) an explanation of the mitigation and 
                        resiliency benefits the State intends to 
                        achieve, including by--
                                    ``(I) reducing future damage and 
                                loss associated with flooding;
                                    ``(II) reducing the number of 
                                severe repetitive loss properties and 
                                repetitive loss structures in the 
                                State;
                                    ``(III) decreasing the number of 
                                flood insurance claims in the State; 
                                and
                                    ``(IV) increasing the rating under 
                                the Community Rating System for 
                                communities in the State;
                            ``(ii) information with respect to the 
                        availability of, and the application process 
                        for receiving, financial assistance from the 
                        State loan fund of the State;
                            ``(iii) the criteria and methods 
                        established for the distribution of amounts 
                        from the State loan fund of the State;
                            ``(iv) the amount of financial assistance 
                        that the State anticipates providing to--
                                    ``(I) local government projects; 
                                and
                                    ``(II) projects for homeowners, 
                                business, or nonprofit organizations;
                            ``(v) the expected terms of the assistance 
                        provided under clause (iv); and
                            ``(vi) a description of the financial 
                        status of the State loan fund and the short-
                        term and long-term goals of the State loan 
                        fund; and
                    ``(B) provide, to the maximum extent practicable, 
                that priority for the use of amounts from the State 
                loan fund shall be given to projects that--
                            ``(i) address severe repetitive loss 
                        properties and repetitive loss structures;
                            ``(ii) assist low-income homeowners and 
                        low-income geographic areas; and
                            ``(iii) address flood risk for pre-FIRM 
                        buildings.
            ``(4) Publication.--Each participating State shall publish 
        and periodically update a list of all projects receiving 
        funding from the State loan fund of the State, which shall 
        include identification of--
                    ``(A) the community in which the project is 
                located;
                    ``(B) the type and amount of assistance provided 
                for each project; and
                    ``(C) the expected funding schedule and date of 
                completion of each project.
    ``(e) Fund Management.--Amounts in a State loan fund shall--
            ``(1) remain available for providing financial assistance 
        under this section until distributed;
            ``(2) if the amounts are not required for immediate 
        distribution or expenditure, be invested in interest-bearing 
        obligations; and
            ``(3) except as provided in subsection (i), include only--
                    ``(A) amounts received from capitalization grants 
                made under this section;
                    ``(B) repayments of loans made from the fund; and
                    ``(C) interest earned on amounts in the fund.
    ``(f) Matching Funds.--
            ``(1) Full grant.--On or before the date on which a 
        participating State receives a capitalization grant, the State 
        shall deposit into the State loan fund of the State, in 
        addition to the amount of the capitalization grant, an amount 
        from non-Federal sources that is not less than 20 percent of 
        the total amount of the capitalization grant.
            ``(2) Reduced grant.--If, with respect to a capitalization 
        grant, a participating State deposits in the State loan fund of 
        the State an amount from non-Federal sources that is less than 
        20 percent of the total amount of the capitalization grant that 
        the participating State would otherwise receive, the 
        Administrator shall--
                    ``(A) reduce the amount of the capitalization grant 
                received by the State to the amount that is 5 times the 
                amount so deposited; and
                    ``(B) in accordance with subsection (b)(5), 
                allocate the difference between the amount that the 
                participating State would have received if the State 
                had complied with paragraph (1) and the amount of the 
                reduced grant that the participating State receives 
                under subparagraph (A).
    ``(g) Types of Assistance.--Unless otherwise prohibited by State 
law, a participating State may use the amounts deposited into a State 
loan fund under this section only--
            ``(1) to make a loan, on the condition that--
                    ``(A) the interest rate for the loan is not more 
                than the market interest rate;
                    ``(B) the recipient of the loan will begin making 
                principal and interest payments on the loan not later 
                than 1 year after the date on which the project for 
                which the loan was made is completed;
                    ``(C) the loan will be fully amortized not later 
                than 20 years after the date on which the project for 
                which the loan was made is completed, except that, in 
                the case of a loan made for a project in a low-income 
                geographic area or to a low-income homeowner, the State 
                may provide a longer amortization period for the loan 
                if that longer period--
                            ``(i) ends on a date that is not later than 
                        30 years after the date on which the project is 
                        completed; and
                            ``(ii) is not longer than the expected 
                        design life of the project;
                    ``(D) the recipient of the loan demonstrates, based 
                on verified and documented information that, as of the 
                date on which the loan is made, the recipient has a 
                reasonable ability to repay the loan, according to the 
                terms of the loan, except that this subparagraph may 
                not be construed to authorize any reduction or 
                limitation in efforts to comply with the requirements 
                of subsection (c)(2)(F); and
                    ``(E) payments of principal and interest with 
                respect to the loan will be deposited into the State 
                loan fund;
            ``(2) to buy or refinance the debt obligation of a local 
        government at an interest rate that is not more than the market 
        interest rate;
            ``(3) to guarantee, or purchase insurance for, a local 
        obligation, the proceeds of which finance a project eligible 
        for assistance under this section, if the guarantee or 
        purchase, as applicable, would--
                    ``(A) improve credit market access; or
                    ``(B) reduce the interest rate with respect to the 
                obligation;
            ``(4) as a source of revenue or as security for the payment 
        of principal and interest on revenue or general obligation 
        bonds issued by the State if the proceeds of the sale of the 
        bonds will be deposited into the State loan fund; or
            ``(5) to earn interest on those amounts.
    ``(h) Assistance for Low-Income Homeowners and Low-Income 
Geographic Areas.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, if a participating State uses amounts from a 
        State loan fund to provide financial assistance under 
        subsection (c) in a low-income geographic area or to a low-
        income homeowner, the State may provide additional 
        subsidization to the recipient of the assistance, including 
        forgiveness of the principal of a loan.
            ``(2) Limitation.--For each fiscal year, the total amount 
        of additional subsidization provided by a participating State 
        under paragraph (1) may not exceed 30 percent of the amount of 
        the capitalization grant allocated to the State for that fiscal 
        year.
    ``(i) Administration of Fund.--
            ``(1) In general.--A participating State may combine the 
        financial administration of a State loan fund with the 
        financial administration of any other revolving fund 
        established by the State if--
                    ``(A) combining the administration of the funds 
                would--
                            ``(i) be convenient and avoid 
                        administrative costs; and
                            ``(ii) not violate the law of the State; 
                        and
                    ``(B) the Administrator determines that--
                            ``(i) amounts obtained from a grant made 
                        under this section, amounts obtained from the 
                        repayment of a loan made from a State loan 
                        fund, and interest earned on amounts in a State 
                        loan fund will be--
                                    ``(I) accounted for separately from 
                                amounts from other revolving funds; and
                                    ``(II) used only for purposes 
                                authorized under this section; and
                            ``(ii) after consulting with the 
                        appropriate State agencies, the authority to 
                        establish assistance priorities and carry out 
                        oversight and related activities, other than 
                        financial administration, with respect to flood 
                        assistance remains with the State agency with 
                        primary responsibility for floodplain 
                        management.
            ``(2) Administrative and technical costs.--
                    ``(A) In general.--For each fiscal year, a 
                participating State may use the amount described in 
                subparagraph (B) to--
                            ``(i) pay the reasonable costs of 
                        administration of the programs under this 
                        section, including the recovery of reasonable 
                        costs incurred in establishing a State loan 
                        fund;
                            ``(ii) provide appropriate oversight of 
                        projects authorized under this section; and
                            ``(iii) provide technical assistance and 
                        outreach to recipients in the State of amounts 
                        under this section, including with respect to 
                        updating hazard mitigation plans and 
                        participating in the Community Rating System, 
                        in an amount that is not more than 4 percent of 
                        the funds made available to the State under 
                        this section.
                    ``(B) Description.--The amount described in this 
                subparagraph is an amount equal to the sum of--
                            ``(i) any fees collected by a participating 
                        State to recover the costs described in 
                        subparagraph (A)(i), regardless of the source; 
                        and
                            ``(ii) the greatest of--
                                    ``(I) $400,000;
                                    ``(II) 0.2 percent of the value of 
                                the State loan fund of a State, as of 
                                the date on which the valuation is 
                                made; and
                                    ``(III) an amount equal to 7 
                                percent of all grant awards made to a 
                                participating State for the State loan 
                                fund of the State under this section 
                                for the fiscal year.
            ``(3) Audit and report.--
                    ``(A) Audit requirement.--Not less frequently than 
                biennially, each participating State shall conduct an 
                audit of the State loan fund of the State.
                    ``(B) Report.--Each participating State shall 
                submit to the Administrator a biennial report regarding 
                the activities of the State under this section during 
                the period covered by the report, including--
                            ``(i) the result of any audit conducted by 
                        the State under subparagraph (A); and
                            ``(ii) a review of the effectiveness of the 
                        State loan fund of the State with respect to--
                                    ``(I) the intended use plans of the 
                                State; and
                                    ``(II) meeting the objectives 
                                described in subsection (b)(1).
            ``(4) Oversight.--In conducting oversight with respect to 
        State loan funds established under this section, the 
        Administrator--
                    ``(A) shall--
                            ``(i) periodically audit the funds in 
                        accordance with procedures established by the 
                        Comptroller General of the United States; and
                            ``(ii) not less frequently than once every 
                        4 years, review each State loan fund to 
                        determine the effectiveness of the fund in 
                        reducing flood risk; and
                    ``(B) may, at any time--
                            ``(i) make recommendations to a 
                        participating State with respect to the 
                        administration of the State loan fund of the 
                        State; or
                            ``(ii) require specific changes with 
                        respect to a State loan fund in order to 
                        improve the effectiveness of the fund.
    ``(j) Liability Protections.--The Federal Emergency Management 
Agency shall not be liable for any claim based on the exercise or 
performance of, or the failure to exercise or perform, a discretionary 
function or duty by the Agency, or an employee of the Agency, in 
carrying out this section.
    ``(k) Regulations.--The Administrator shall promulgate such 
guidance or regulations as may be necessary to carry out this section, 
including guidance or regulations that--
            ``(1) ensure that each participating State to which funds 
        are allocated under this section uses the funds as efficiently 
        as possible;
            ``(2) reduce, to the maximum extent practicable, waste, 
        fraud, and abuse with respect to the implementation of this 
        section; and
            ``(3) require any party that receives funds directly or 
        indirectly under this section, including a participating State 
        and a recipient of amounts from a State loan fund, to use 
        procedures with respect to the management of the funds that 
        conform to generally accepted accounting standards.
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section 
for fiscal years 2020 through 2029.''.
    (b) Consideration of Mitigation Measures Funded by State Loan Funds 
in Flood Insurance Premium Rates.--
            (1) Estimated rates.--Section 1307(a)(1)(A)(ii) of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 
        4014(a)(1)(A)(ii)) is amended by striking ``and similar 
        measures'' and inserting ``similar measures, and any activities 
        funded through amounts from a State loan fund established under 
        section 1326''.
            (2) Chargeable rates.--Section 1308(b)(1) of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4015(b)(1)) is amended 
        by striking ``and similar measures'' and inserting ``similar 
        measures, and any activities funded through amounts from a 
        State loan fund established under section 1326''.

SEC. 208. MAPPING MODERNIZATION.

    (a) Amendments to the Biggert-Waters Flood Insurance Reform Act of 
2012.--The Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 
4004 et seq.) is amended--
            (1) in section 100215 (42 U.S.C. 4101a)--
                    (A) in subsection (b)(1)--
                            (i) by redesignating subparagraphs (A) 
                        through (E) as subparagraphs (B) through (F), 
                        respectively;
                            (ii) by inserting before subparagraph (B), 
                        as so redesignated, the following:
                    ``(A) the Director of the United States Geological 
                Survey;''; and
                            (iii) in subparagraph (F), as so 
                        redesignated--
                                    (I) in the matter preceding clause 
                                (i), by striking ``16'' and inserting 
                                ``17'';
                                    (II) in clause (xiii), by striking 
                                ``and'' at the end;
                                    (III) in clause (xiv), by striking 
                                the period at the end and inserting ``; 
                                and''; and
                                    (IV) by adding at the end the 
                                following:
                            ``(xv) an expert in the field of 
                        catastrophic risk modeling.''; and
                    (B) by adding at the end the following:
    ``(m) Private or Community Flood Maps.--
            ``(1) Standards and procedures.--In addition to the other 
        duties of the Council under this section, not later than 1 year 
        after the date of enactment of this subsection, the Council 
        shall develop and establish a set of standards, guidelines, and 
        procedures for--
                    ``(A) State and local governments, federally or 
                State-recognized metropolitan planning organizations 
                (commonly known as `MPOs'), federally or State-
                recognized councils of local governments, and federally 
                or State-recognized rural transportation planning 
                organizations to use in mapping flood risks and 
                developing alternative maps to the flood insurance rate 
                maps developed by the Administrator; and
                    ``(B) certification, by the Administrator not later 
                than 90 days after the date on which a map developed 
                under subparagraph (A) is submitted to the 
                Administrator, for use under the National Flood 
                Insurance Program in the case of any area covered by a 
                flood insurance rate map developed or approved by the 
                Administrator that has not been updated or reissued 
                during the preceding 3-year period.
            ``(2) Treatment.--On and after the date on which the 
        Administrator certifies a map under paragraph (1)(B), the map--
                    ``(A) shall be considered the flood insurance rate 
                map in effect for all purposes of the National Flood 
                Insurance Program with respect to the area covered by 
                the map; and
                    ``(B) may not be revised, updated, or replaced in 
                accordance with the standards, guidelines, and 
                procedures established under paragraph (1) before the 
                expiration of the 3-year period beginning on that date 
                of certification.
            ``(3) Exemption from rulemaking.--Until the date on which 
        the Administrator promulgates regulations implementing 
        paragraphs (1) and (2), the Administrator may adopt policies 
        and procedures, notwithstanding any other provision of law, 
        necessary to implement those paragraphs without regard to 
        section 553 of title 5, United States Code, and without 
        conducting regulatory analyses otherwise required by statute, 
        regulation, or Executive order.''; and
            (2) in section 100216 (42 U.S.C. 4101b)--
                    (A) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``to--'' and all that follows 
                                through the end of clause (vi) and 
                                inserting ``to all areas of the United 
                                States;'';
                                    (II) in subparagraph (B), by 
                                striking ``and'' at the end;
                                    (III) in subparagraph (C), by 
                                striking ``accurate topography'' and 
                                all that follows through the period at 
                                the end and inserting ``current and 
                                best remote sensing technology;''; and
                                    (IV) by adding at the end the 
                                following:
                    ``(D) when appropriate, partner with other Federal 
                agencies and private entities in order to meet the 
                objectives of the program; and
                    ``(E) consult and coordinate with the Secretary of 
                Defense, the Director of the United States Geological 
                Survey, and the Administrator of the National Oceanic 
                and Atmospheric Administration to obtain the most up-
                to-date maps and other information of those agencies, 
                including information relating to topography, water 
                flow, watershed characteristics, and any other issues 
                that are relevant to identifying, reviewing, updating, 
                maintaining, and publishing National Flood Insurance 
                Program rate maps.''; and
                            (ii) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                redesignating clauses (i) and (ii) as 
                                subclauses (I) and (II), respectively, 
                                and adjusting the margins accordingly;
                                    (II) by redesignating subparagraphs 
                                (A) through (E) as clauses (i) through 
                                (v), respectively, and adjusting the 
                                margins accordingly;
                                    (III) in the matter preceding 
                                clause (i), as so redesignated, by 
                                striking ``Administrator shall 
                                include--'' and inserting the 
                                following: ``Administrator--
                    ``(A) shall include--'';
                                    (IV) in subparagraph (A)(v), as so 
                                redesignated, by striking the period at 
                                the end and inserting ``; and''; and
                                    (V) by adding at the end the 
                                following:
                    ``(B) may include--
                            ``(i) any relevant information that is 
                        obtained under paragraph (1)(D); and
                            ``(ii) cadastral features, including, for 
                        each cadastral feature--
                                    ``(I) the associated parcel 
                                identification data for that feature; 
                                and
                                    ``(II) to the maximum extent 
                                practicable, using public and private 
                                sector address data, the address of 
                                that feature.'';
                    (B) in subsection (c)(2)--
                            (i) in subparagraph (B), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (C), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(D) not later than 5 years after the date on 
                which the National Geodetic Survey completes the 
                modernization of the National Spatial Reference System 
                in 2022, updated to conform with the geospatial data 
                provided by that system; and
                    ``(E) spatially accurate in accordance with the 
                common protocols for geographic information systems 
                under section 216 of the E-Government Act of 2002 (44 
                U.S.C. 3501 note).'';
                    (C) by redesignating subsection (f) as subsection 
                (g);
                    (D) by inserting after subsection (e) the 
                following:
    ``(f) Incorporating Building-Specific Flood Risk Information.--
            ``(1) Establishment.--
                    ``(A) In general.--Not later than 5 years after the 
                date of enactment of the National Flood Insurance 
                Program Reauthorization and Reform Act of 2019, the 
                Administrator, in coordination with, and as recommended 
                by, the Technical Mapping Advisory Council, shall 
                establish a dynamic, database-derived digital display 
                environment for flood hazard risk production and 
                dissemination.
                    ``(B) Consultation with states and communities.--In 
                designing and constructing the environment under 
                subparagraph (A), the Administrator shall--
                            ``(i) leverage and partner with States and 
                        communities that have successfully implemented 
                        the same approach; and
                            ``(ii) consider adopting the techniques and 
                        technologies used by States and communities 
                        described in clause (i) and applying them 
                        nationwide.
            ``(2) Digital display.--
                    ``(A) In general.--In carrying out paragraph (1), 
                the Administrator shall create a digital display 
                prompted through dynamic querying of a spatial, 
                relational building database that includes--
                            ``(i) special flood hazard areas and base 
                        flood elevations for purposes of lender 
                        compliance with the requirements under section 
                        102 of the Flood Disaster Protection Act of 
                        1973 (42 U.S.C. 4012a); and
                            ``(ii) structure-specific flood risk 
                        information, including, for each property 
                        address--
                                    ``(I) the spatial footprint and 
                                elevation of the structure relative to 
                                special flood hazard areas and base 
                                flood elevations;
                                    ``(II) the most current elevation 
                                certificate applicable to the property;
                                    ``(III) any letter of map changes;
                                    ``(IV) the full risk premium rate 
                                estimated for the structure under 
                                section 1307(a)(1) of the National 
                                Flood Insurance Act of 1968 (42 U.S.C. 
                                4014(a)(1)) based on elevation data;
                                    ``(V) the disclosure described in 
                                section 1308(l) of the National Flood 
                                Insurance Act of 1968 (42 U.S.C. 
                                4015(l)), which shall include--
                                            ``(aa) the extent to which, 
                                        if any, the chargeable premium 
                                        rate applicable to the property 
                                        is less than the full risk 
                                        premium rate under section 
                                        1307(a)(1) of that Act (42 
                                        U.S.C. 4014(a)(1)); and
                                            ``(bb) an explanation of 
                                        the difference described in 
                                        item (aa) and the methodology 
                                        used to rate the property;
                                    ``(VI) the estimated cost to repair 
                                the structure in the case of damage 
                                from floods with recurrence intervals 
                                ranging from the 10 percent annual 
                                chance event to the 0.2 percent annual 
                                chance event;
                                    ``(VII) the cost-effectiveness of 
                                mitigating the structure using common 
                                methods and how the chargeable premium 
                                rate would change based on each 
                                mitigation method; and
                                    ``(VIII) the claims history of the 
                                structure, including the amount and 
                                date of each loss.
                    ``(B) Privacy requirements.--With respect to the 
                database described in subparagraph (A), including any 
                data used to create that database, the Administrator 
                may not disseminate the database to any person other 
                than the owner or leaseholder of a property identified 
                in the database.
            ``(3) Database.--
                    ``(A) In general.--The Administrator shall--
                            ``(i) develop a spatial, relational 
                        database of buildings in the National Flood 
                        Insurance Program; and
                            ``(ii) obtain the data necessary to support 
                        the digital display created under paragraph 
                        (2).
                    ``(B) Data.--The data obtained under subparagraph 
                (A) shall include, at a minimum--
                            ``(i) footprints and elevations (including 
                        lowest adjacent grade and first floor) from 
                        Light Detection and Ranging (commonly known as 
                        `LiDAR') data collections or other data 
                        collection methods that meet or exceed the 
                        standards for buildings, as determined by the 
                        Administrator;
                            ``(ii) elevation certificates;
                            ``(iii) parcel, address, and imagery data 
                        necessary for the identification, assessment, 
                        and reduction of flood hazards for individual 
                        properties;
                            ``(iv) flood insurance rate maps, studies, 
                        and supporting data;
                            ``(v) letters of map change; and
                            ``(vi) any other data that the 
                        Administrator determines necessary to collect 
                        to meet the objectives of this section.
            ``(4) Data procurement.--The Administrator shall obtain any 
        data necessary to establish the environment under paragraph 
        (1), including by--
                    ``(A) directing communities participating in the 
                National Flood Insurance Program, by regulation, to 
                collect and supply information, including elevation 
                data, for each structure that obtains a construction or 
                other development permit within--
                            ``(i) a special flood hazard area; or
                            ``(ii) an advisory special flood hazard 
                        area adopted by the community;
                    ``(B) issuing guidelines and standards, as 
                determined by the Administrator;
                    ``(C) partnering with other Federal, State, local, 
                and private stakeholders to the greatest extent 
                possible to obtain and share existing data that meets 
                or exceeds the standards determined by the 
                Administrator under subparagraph (B); and
                    ``(D) contracting with private companies to obtain 
                new LiDAR data collections or elevation certificates.
            ``(5) NFIP premium credit.--The Administrator shall provide 
        a 1-time premium credit of not more than $500 to a policyholder 
        for--
                    ``(A) the purchase of an elevation certificate; or
                    ``(B) the purposes of appealing the chargeable 
                premium rate with respect to the property to which the 
                premium applies.
            ``(6) Mass letters of map change.--In coordination with 
        States and communities that have successfully implemented a 
        dynamic, database-derived digital display environment for flood 
        hazard risk production and dissemination, the Administrator 
        shall issue guidelines for the adoption and integration into 
        the program established under subsection (a) of LiDAR-based 
        letter of map amendment approaches.
            ``(7) Annual report.--The Administrator shall submit to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives an annual progress report on the implementation 
        of this subsection, which shall include recommendations to 
        reduce the cost and improve the implementation of this 
        subsection.''; and
                    (E) in subsection (g), as so redesignated--
                            (i) by striking ``this section 
                        $400,000,000'' and inserting the following: 
                        ``this section--
            ``(1) $400,000,000''; and
                            (ii) by striking the period at the end and 
                        inserting the following: ``; and
            ``(2) $400,000,000 for each of fiscal years 2020 through 
        2025.''.
    (b) Appeals.--
            (1) In general.--
                    (A) Right to appeal.--Section 1360 of the National 
                Flood Insurance Act of 1968 (42 U.S.C. 4101) is amended 
                by adding at the end the following:
    ``(k) Appeals of Existing Maps.--
            ``(1) Right to appeal.--Subject to paragraph (6), a State 
        or local government, or the owner or lessee of real property, 
        that makes a formal request to the Administrator to update a 
        flood insurance rate map that the Administrator denies may at 
        any time appeal the denial in accordance with this subsection.
            ``(2) Basis for appeal.--The basis for an appeal under this 
        subsection shall be the possession of knowledge or information 
        that--
                    ``(A) the base flood elevation level or designation 
                of any aspect of a flood insurance rate map is 
                scientifically or technically inaccurate; or
                    ``(B) factors exist that mitigate the risk of 
                flooding, including ditches, banks, walls, vegetation, 
                levees, lakes, dams, reservoirs, basin, retention 
                ponds, and other natural or manmade topographical 
                features.
            ``(3) Appeals process.--
                    ``(A) Administrative adjudication.--The 
                Administrator shall determine an appeal under this 
                subsection by making a final adjudication on the 
                record, after providing an opportunity for an 
                administrative hearing.
                    ``(B) Rights upon adverse decision.--
                            ``(i) Optional arbitration.--If an appeal 
                        determined under subparagraph (A) does not 
                        result in a decision in favor of the State, 
                        local government, owner, or lessee, that party 
                        may request that an appeal of the adverse 
                        decision be heard through independent, non-
                        binding arbitration.
                            ``(ii) Process.--The Administrator shall 
                        establish a process for arbitration under 
                        clause (i) under which the arbitrator provides 
                        a non-binding recommendation to the 
                        Administrator.
            ``(4) Relief.--
                    ``(A) Wholly successful appeals.--If the 
                Administrator determines, in an appeal under this 
                subsection, that the property of a policyholder that 
                had been included in a special flood hazard area under 
                the flood insurance rate map is actually not in a 
                special flood hazard area--
                            ``(i) the policyholder may cancel the 
                        policy at any time during the year in which the 
                        Administrator makes the determination; and
                            ``(ii) the Administrator shall provide the 
                        policyholder a refund equal to the amount of--
                                    ``(I) any premiums that the 
                                policyholder paid during the year 
                                described in clause (i); and
                                    ``(II) any premiums that the 
                                policyholder paid for flood insurance 
                                coverage that the policyholder was 
                                required to purchase or maintain during 
                                the 2-year period preceding the year 
                                described in clause (i).
                    ``(B) Partially successful appeals.--If the 
                Administrator determines in an appeal under this 
                subsection that mitigating factors have reduced, but 
                not eliminated, the risk of flooding to a property, the 
                Administrator shall--
                            ``(i) reduce the amount of flood insurance 
                        coverage required to be maintained for the 
                        property by the ratio of the successful portion 
                        of the appeal as compared to the entire appeal; 
                        and
                            ``(ii) provide the policyholder a refund 
                        equal to the difference between--
                                    ``(I) the amount of any premiums 
                                that the policyholder paid during the 
                                period--
                                            ``(aa) beginning on the 
                                        later of--

                                                    ``(AA) the date on 
                                                which the mitigating 
                                                factor was created; or

                                                    ``(BB) January 1 of 
                                                the second year 
                                                preceding the date on 
                                                which the determination 
                                                is made; and

                                            ``(bb) ending on the date 
                                        on which the reduction in the 
                                        amount of flood insurance 
                                        required, as described in 
                                        clause (i), takes effect; and
                                    ``(II) the amount of premiums that 
                                the policyholder would have been 
                                required to pay if the reduced amount 
                                of flood insurance coverage required, 
                                as described in clause (i), had been in 
                                effect during the period described in 
                                subclause (I) of this clause.
                    ``(C) Additional relief.--The Administrator may 
                provide additional refunds in excess of the amounts 
                required under subparagraphs (A) and (B) if the 
                Administrator determines that such additional refunds 
                are warranted.
            ``(5) Recovery of costs.--
                    ``(A) Appeal expenses.--If a State or local 
                government, or the owner or lessee of real property, 
                incurs any expense in connection with an appeal under 
                this subsection that is based on a scientific or 
                technical error made by the Administrator and that is 
                successful in whole or part regarding the designation 
                of the base flood elevation or any aspect of a flood 
                insurance rate map, including elevation or designation 
                of a special flood hazard area, the Administrator shall 
                reimburse the State, local government, owner, or lessee 
                in accordance with subparagraph (B).
                    ``(B) Reimbursable expenses.--The Administrator--
                            ``(i) may reimburse a party under 
                        subparagraph (A) for reasonable expenses 
                        described in that subparagraph--
                                    ``(I) including for a service 
                                provided by a surveyor, engineer, or 
                                scientific expert; and
                                    ``(II) to the extent measured by 
                                the ratio of the successful portion of 
                                the appeal as compared to the entire 
                                appeal; and
                            ``(ii) may not reimburse a party under 
                        subparagraph (A) for--
                                    ``(I) the cost of legal services; 
                                or
                                    ``(II) the payment of any fee or 
                                expense, the payment of which was 
                                agreed to be contingent upon the result 
                                of the appeal.
            ``(6) Guidance.--The Administrator shall issue guidance to 
        implement this subsection, which shall not be subject to the 
        notice and comment requirements under section 553 of title 5, 
        United States Code.''.
                    (B) Technical and conforming amendments.--Section 
                1310(a) of the National Flood Insurance Act of 1968 (42 
                U.S.C. 4017(a)) is amended--
                            (i) in paragraph (7), by striking ``and'' 
                        at the end;
                            (ii) in paragraph (8), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(9) for providing reimbursements of expenses of flood 
        insurance rate map appeals under section 1360(k)(5).''.
            (2) Deadline for issuance of guidance.--Not later than 180 
        days after the date of enactment of this Act, the Administrator 
        shall issue the guidance required under subsection (k)(6) of 
        section 1360 of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4101), as added by paragraph (1)(A).

SEC. 209. PROTECTED AREAS.

    Section 100216(b) of the Biggert-Waters Flood Insurance Reform Act 
of 2012 (42 U.S.C. 4101b(b)) is amended by adding at the end the 
following:
            ``(4) Zones protected by levee systems.--
                    ``(A) Applicability.--Subject to full 
                implementation of this section, and notwithstanding any 
                other provision of law, this paragraph shall apply to a 
                community in which the Administrator maps or re-maps a 
                levee-impacted area in which the pertinent levee system 
                fails to meet the minimum design, operation, and 
                maintenance standards of the National Flood Insurance 
                Program required for levee accreditation on a National 
                Flood Insurance Program rate map.
                    ``(B) AL zones.--For levee-impacted areas described 
                in subparagraph (A), the Administrator shall establish 
                flood risk zones known as `AL Zones' on the National 
                Flood Insurance Program rate map.
                    ``(C) Actuarial rates.--
                            ``(i) In general.--The Administrator shall 
                        make available flood insurance to properties in 
                        AL Zones at actuarial rates based upon the risk 
                        associated with structures within the 
                        applicable AL Zone.
                            ``(ii) Temporary rates.--Until the 
                        Administrator promulgates actuarial rates for 
                        the various AL Zones, a structure within a 
                        portion of a community located within a levee-
                        impacted area described in subparagraph (A) 
                        shall be eligible for rates associated with 
                        areas of moderate flood hazards (also known as 
                        `Standard X zone' rates).''.

SEC. 210. COMMUNITY-WIDE FLOOD MITIGATION ACTIVITIES.

    It is the sense of Congress that the Administrator should consider 
flood mitigation activities that--
            (1) provide benefits to an entire floodplain or community, 
        or to a portion of such a community;
            (2) consider all available and practicable approaches; and
            (3) the Administrator determines--
                    (A) are technically feasible;
                    (B) have the highest net benefits; and
                    (C) are consistent with mitigation plans approved 
                by the Administrator.

                          TITLE III--SOLVENCY

SEC. 301. FORBEARANCE ON NFIP INTEREST PAYMENTS.

    (a) In General.--During the 5-year period beginning on the date of 
enactment of this Act, the Secretary of the Treasury may not charge the 
Administrator interest on amounts borrowed by the Administrator under 
section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4016(a)) that were outstanding as of that date of enactment.
    (b) Use of Saved Amounts.--There shall be deposited into the 
National Flood Mitigation Fund an amount equal to the interest that 
would have accrued on the borrowed amounts during the 5-year period 
described in subsection (a), which, notwithstanding any provision of 
section 1367 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104d), the Administrator shall use to carry out the program 
established under section 1366 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4104c).
    (c) No Retroactive Accrual.--After the 5-year period described in 
subsection (a), the Secretary of the Treasury shall not require the 
Administrator to repay any interest that, but for that subsection, 
would have accrued on the borrowed amounts described in that subsection 
during that 5-year period.

SEC. 302. CAP ON WRITE YOUR OWN COMPANY COMPENSATION.

    (a) In General.--Section 1311 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4018) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Limitation on Compensation; Minimum Agent Commissions.--In 
negotiating with appropriate representatives of the insurance industry 
under subsection (a), the Administrator shall ensure that--
            ``(1) any reimbursement paid to a property and casualty 
        insurance company for selling, writing, and servicing flood 
        insurance policies is not more than 22.46 percent of the 
        aggregate amount of premiums charged by the insurance company; 
        and
            ``(2) an insurance company pays a portion of the 
        reimbursement described in paragraph (1) to agents of the 
        company as a commission, in an amount that is not less than 15 
        percent of the aggregate amount of the premiums sold by the 
        agent.''.
    (b) Technical and Conforming Amendments.--Section 1311 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4018), as amended by 
subsection (a), is amended--
            (1) in subsection (a), by striking ``The Administrator'' 
        and inserting ``In General.--The Administrator''; and
            (2) in subsection (c), as so redesignated by subsection (a) 
        of this section, by striking ``For purposes of subsection (a)'' 
        and inserting ``Definitions.--For purposes of this section''.

SEC. 303. TAXPAYER PROTECTION.

    Section 1360(g) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4101(g)) is amended--
            (1) in the first sentence, by inserting ``, subject to the 
        following sentence,'' after ``at a reasonable cost''; and
            (2) by inserting after the first sentence the following: 
        ``The Administrator shall develop a fee schedule based on 
        recovering the actual costs of providing flood insurance rate 
        maps to such other persons, and shall charge a fee based on the 
        schedule to any private entity for the use of such a map.''.

SEC. 304. VENDOR COSTS; TRANSPARENCY.

    (a) In General.--Section 100224(d) of the Biggert-Waters Flood 
Insurance Reform Act of 2012 (42 U.S.C. 4081 note) is amended--
            (1) by striking ``Not later than 12 months after the date 
        of enactment of this Act, the Administrator'' and inserting the 
        following:
            ``(1) In general.--The Administrator''; and
            (2) by adding at the end the following:
            ``(2) Vendor costs; transparency.--In issuing the rule 
        under paragraph (1), the Administrator shall--
                    ``(A) develop a schedule to determine the actual 
                costs of Write Your Own vendors, including claims 
                adjusters and engineering companies;
                    ``(B) provide that if a Write Your Own company 
                requests reimbursement for the costs of a service or 
                product provided to the company by a vendor, the 
                Administrator only reimburses the company for the 
                actual costs of the service or products; and
                    ``(C) require that all reimbursements to Write Your 
                Own companies be made public, including a description 
                of the product or service provided to which the 
                reimbursement pertains.''.
    (b) Deadline for Revised Rule.--Not later than 90 days after the 
date of enactment of this Act, the Administrator shall issue a revised 
rule under section 100224(d) of the Biggert-Waters Flood Insurance 
Reform Act of 2012 (42 U.S.C. 4081 note), as amended by subsection (a).

SEC. 305. AVAILABILITY OF NFIP CLAIMS DATA.

    (a) Study Required.--
            (1) In general.--The Administrator shall study the 
        feasibility of selling or licensing the use of historical 
        structure-specific National Flood Insurance Program claims data 
        (referred to in this section as ``covered claims data'') to 
        nongovernmental entities.
            (2) Contents.--In conducting the study required under 
        paragraph (1), the Administrator shall, at a minimum--
                    (A) investigate 1 or more methods of providing the 
                most specific covered claims data possible while 
                reasonably protecting policyholder privacy;
                    (B) review existing means, as of the date of 
                enactment of this Act, by which the Federal Government 
                and nongovernmental entities provide leases or licenses 
                to private persons, and the various regulations, terms, 
                conditions, and guidance employed;
                    (C) identify potential uses for covered claims data 
                and any known risks concerning those uses, including 
                the risk that private insurance companies will use the 
                data to issue flood insurance policies with respect to 
                properties that have the lowest level of flood risk, 
                which would require the National Flood Insurance 
                Program to issue those policies with respect to 
                properties with higher levels of flood risk;
                    (D) identify mechanisms for determining the likely 
                market value for access to covered claims data;
                    (E) consider whether selling or licensing the use 
                of covered claims data, as described in paragraph (1), 
                would be in compliance with section 552a of title 5, 
                United States Code; and
                    (F) recommend actions the Administrator could take, 
                if any, to prevent unintended consequences associated 
                with the sale or licensing for private insurance 
                purposes covered claims data.
    (b) Report by Administrator.--Not later than 1 year after the date 
of enactment of this Act, the Administrator shall submit to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives a 
report that contains the results and conclusions of the study conducted 
under subsection (a), which shall include an analysis of any 
recommendations made by the study.

SEC. 306. REFUSAL OF MITIGATION ASSISTANCE.

    Section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104c) is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), in the first sentence, by inserting ``and, with respect to 
        financial assistance described in paragraph (2), using amounts 
        made available from the Disaster Relief Fund in accordance with 
        section 203(n) of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5133(n))'' after ``section 
        1367'';
            (2) by redesignating subsection (h) as subsection (i); and
            (3) by inserting after subsection (g) the following:
    ``(h) Refusal of Assistance.--
            ``(1) Definition.--In this subsection, the term `bona fide 
        offer of assistance' means an offer of assistance made by the 
        Administrator to a policyholder under the national flood 
        insurance program that--
                    ``(A) relates to mitigation activities with respect 
                to the structure insured under that program;
                    ``(B) covers 100 percent of the cost of the 
                mitigation activities described in subparagraph (A);
                    ``(C) permits the policyholder to continue to live 
                in the structure to which the policy relates; and
                    ``(D) is carried out under a mitigation plan.
            ``(2) Penalty.--If, after the date of enactment of this 
        subsection, a policyholder under the national flood insurance 
        program refuses a bona fide offer of assistance with respect to 
        the property so insured, the Administrator shall, 
        notwithstanding any other provision of this title, increase the 
        chargeable risk premium rate for flood insurance under this 
        title for the property by 25 percent each year until--
                    ``(A) the policyholder accepts the bona fide offer 
                of assistance; or
                    ``(B) that chargeable risk premium rate is 
                actuarially sound.''.

             TITLE IV--POLICYHOLDER PROTECTION AND FAIRNESS

SEC. 401. EARTH MOVEMENT FIX AND ENGINEER STANDARDS.

    (a) Rebuttable Presumption for Foundation and Structural Damage.--
            (1) In general.--Section 1312 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4019) is amended by adding at 
        the end the following:
    ``(d) Rebuttable Presumption for Foundation and Structural 
Damage.--
            ``(1) In general.--For the purposes of the Administrator 
        determining coverage under the standard flood insurance policy 
        under the national flood insurance program, a rebuttable 
        presumption that physical damage to the foundation of, or 
        structural damage to, a structure was not caused by earth 
        movement shall apply if--
                    ``(A) flood caused direct physical change to the 
                structure; and
                    ``(B) there is damage to the foundation of, or 
                structural damage to, the structure that was not 
                present before the flood, as demonstrated by a 
                certification from the policyholder.
            ``(2) Rebuttal.--In determining coverage as a result of the 
        rebuttable presumption under paragraph (1), an insurance 
        company may rebut the presumption only by providing the 
        Administrator with an engineering report that--
                    ``(A) meets standards issued by the Administrator 
                under paragraph (3); and
                    ``(B) clearly demonstrates that the physical damage 
                to the foundation of, or structural damage to, a 
                structure described in paragraph (1) was caused 
                directly by earth movement that was not caused by--
                            ``(i) the horizontal pressure from standing 
                        or slow-moving floodwater (commonly known as 
                        `hydrostatic pressure');
                            ``(ii) the force of floodwater that causes 
                        the vertical uplift from the underside of a 
                        horizontal foundation component, such as a 
                        concrete slab, footer, or a structural floor 
                        assembly (commonly known as `buoyancy');
                            ``(iii) pressure imposed on an object, such 
                        as a wall of a building, by high-velocity 
                        floodwater or waves flowing against and around 
                        the building (commonly known as `hydrodynamic 
                        force');
                            ``(iv) floodwater moving along the surface 
                        of the ground causing soil to suddenly erode or 
                        undermine, resulting in failure of a foundation 
                        or to one of the structural components of the 
                        foundation (commonly known as `scouring'); or
                            ``(v) earth movement otherwise caused by 
                        flood.
            ``(3) In general.--The Administrator shall issue minimum 
        standards--
                    ``(A) regarding the form and content of engineering 
                reports used to assist insurance claims adjusters with 
                respect to carrying out this subsection; and
                    ``(B) which shall--
                            ``(i) include a requirement that any such 
                        engineering report shall be signed and have a 
                        seal affixed by an engineer who is licensed in 
                        the State in which the property to which the 
                        claim relates is located; and
                            ``(ii) be consistent with generally 
                        accepted practices in--
                                    ``(I) the field of forensic 
                                engineering; and
                                    ``(II) the insurance industry.
            ``(4) Rule of construction.--Nothing in this subsection may 
        be construed to modify the terms and conditions of the standard 
        flood insurance policy.''.
            (2) Application.--The amendments made by paragraph (1) 
        shall apply with respect to a claim with a date of loss that is 
        on or after the date that is 90 days after the date of 
        enactment of this Act.
    (b) Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall issue the standards 
required under subsection (d)(3) of section 1312 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4019), as added by subsection (a)(1).

SEC. 402. COVERAGE OF PRE-FIRM CONDOMINIUM BASEMENTS AND STUDY ON 
              STREET RAISING.

    (a) Basement Clarification.--
            (1) In general.--Section 1305 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4012) is amended by adding at 
        the end the following:
    ``(e) Availability of Insurance for Pre-FIRM Condominium 
Basements.--
            ``(1) Definition.--In this subsection, the term `pre-FIRM 
        condominium building' means a condominium building that was not 
        constructed or substantially improved after the later of--
                    ``(A) December 31, 1974; or
                    ``(B) the effective date of the initial flood 
                insurance rate map published by the Administrator under 
                section 1360 for the area in which the building is 
                located.
            ``(2) Coverage.--The Administrator shall make flood 
        insurance available to cover the basement of any pre-FIRM 
        condominium building if that basement serves as a separate 
        residential unit within that condominium building.''.
            (2) Amendments to regulations.--Not later than 180 days 
        after the date of enactment of this Act, the Administrator 
        shall make any amendments to the regulations of the Federal 
        Emergency Management Agency that are necessary as a result of 
        the amendment made by paragraph (1).
    (b) Study on Consequences of Street-Raising.--
            (1) Definition.--In this subsection, the term ``affected 
        property'' means a property containing an area--
                    (A) the floor of which was located at or above 
                grade before the community raised the street adjacent 
                to the property; and
                    (B) after the street-raising described in 
                subparagraph (A), that was designated as a basement 
                because of the street-raising.
            (2) Study; report.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall study and submit 
        to Congress a report on the consequences of street-raising on 
        flood insurance coverage for an affected property under the 
        National Flood Insurance Program, including the cost 
        implications for the property owner.

SEC. 403. GUIDANCE ON REMEDIATION AND POLICYHOLDER DUTIES.

    (a) In General.--Section 1312 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4019), as amended by section 401(a)(1), is amended 
by adding at the end the following:
    ``(e) Guidance on Mold Remediation.--
            ``(1) In general.--The Administrator shall issue guidance 
        relating to the identification of reasonable actions that a 
        policyholder of coverage for flood insurance made available 
        under this title may take to inspect and maintain the property 
        to which that coverage applies--
                    ``(A) after a flood recedes; and
                    ``(B) in order to avoid damage to the property that 
                is caused by mold, mildew, moisture, or water.
            ``(2) Considerations.--In developing guidance under 
        paragraph (1), the Administrator shall consider--
                    ``(A) any applicable laws and regulations;
                    ``(B) the terms and conditions of the standard 
                flood insurance policy;
                    ``(C) technical best practices;
                    ``(D) the costs of remediation in relation to the 
                condition of a property described in that paragraph; 
                and
                    ``(E) the actions that the Administrator may 
                reasonably expect a policyholder described in that 
                paragraph to take, given the likely challenges faced by 
                the policyholder after a flood.
            ``(3) Regular review.--The Administrator shall--
                    ``(A) regularly review the guidance issued under 
                paragraph (1); and
                    ``(B) revise the guidance issued under paragraph 
                (1) as the Administrator determines appropriate.
            ``(4) Annual distribution.--The Administrator shall provide 
        a copy of the guidance issued under paragraph (1) to a 
        policyholder at the time of the purchase or renewal of a flood 
        insurance policy sold under this title.''.
    (b) Initial Issuance.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall issue the guidance 
required under subsection (e) of section 1312 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4019), as added by subsection (a) of 
this section.
    (c) Accessibility, Reasonableness and Degree of Damage.--Section 
1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as 
amended by subsection (a), is amended by adding at the end the 
following:
    ``(f) Exclusion of Certain Damage.--For purposes of determining 
whether damage caused by mold, mildew, moisture, or water to a property 
shall be excluded from coverage under the standard flood insurance 
policy--
            ``(1) subject to paragraph (2), only the degree of damage 
        caused by mold, mildew, moisture, or water that could have been 
        avoided through inspection and maintenance may be excluded from 
        that coverage; and
            ``(2) the condition of the property to which the damage 
        relates may not be considered to be attributable to the 
        policyholder with respect to the property, including any 
        failure by the policyholder to inspect and maintain the 
        property after a flood recedes, if--
                    ``(A) the policyholder was denied access to the 
                property after the flood receded because of--
                            ``(i) a lawful government order;
                            ``(ii) a determination by local authorities 
                        that the property--
                                    ``(I) is unsafe or unstable; or
                                    ``(II) shall be condemned; or
                            ``(iii) otherwise unsafe conditions;
                    ``(B) a reasonable individual exercising reasonable 
                judgment could not be expected to inspect, maintain, or 
                mitigate the damage to the property under the 
                circumstances; or
                    ``(C) the policyholder faced particular challenges, 
                including--
                            ``(i) practical or financial difficulty in 
                        inspecting or maintaining the property;
                            ``(ii) the need to address other more 
                        immediate priorities, including--
                                    ``(I) the health and well-being of 
                                the policyholder and the family of the 
                                policyholder;
                                    ``(II) the preservation of basic 
                                items;
                                    ``(III) displacement; and
                                    ``(IV) other issues that make 
                                inspection and maintenance of the 
                                property a near-term challenge for the 
                                policyholder; and
                            ``(iii) the unavailability of contractors 
                        or other individuals to perform any required 
                        inspection and maintenance.''.

SEC. 404. APPEAL OF DECISIONS RELATING TO FLOOD INSURANCE COVERAGE.

    (a) In General.--Section 205 of the Bunning-Bereuter-Blumenauer 
Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``Not later'' and inserting the following:
    ``(a) In General.--Not later''; and
            (2) by adding at the end the following:
    ``(b) Deadline To File Appeal.--The Director shall establish a 
deadline for filing an appeal under this section that is not less than 
1 year after the date on which the decision being appealed was made.
    ``(c) Notification Upon Initial Denial of Claim.--The Director 
shall ensure that a claimant is provided with the rules, forms, and 
deadlines for an appeal under this section at the time a claim is first 
denied in full or in part, including--
            ``(1) the effective date of the denial;
            ``(2) a justification for the denial, including supporting 
        documentation;
            ``(3) the date on which the period of limitation for 
        instituting an action on the claim under section 1333 or 1341 
        of the National Flood Insurance Act of 1968 (42 U.S.C. 4053 and 
        4072), as applicable, will end; and
            ``(4) a point of contact through which the claimant can 
        directly discuss an appeal with a representative of the Federal 
        Emergency Management Agency.
    ``(d) Deadline To Resolve Appeal.--
            ``(1) In general.--Not later than 90 days after the date on 
        which a policyholder has submitted all necessary information 
        relating to an appeal under this section, the Director shall 
        provide an appeal decision in writing to the policyholder and 
        insurer, including specific information for the resolution of 
        the appeal.
            ``(2) Enforcement.--If the Director does not comply with 
        the deadline under paragraph (1) with respect to an appeal, and 
        the policyholder that brought the appeal is ultimately 
        successful, the Director shall pay to the policyholder interest 
        on the claim that is the subject of the appeal, which shall--
                    ``(A) begin accruing on the date on which the 
                policyholder files the appeal; and
                    ``(B) be calculated using the rate of return on a 
                3-year Treasury bill, as in effect on the date 
                described in subparagraph (A).
            ``(3) Notification upon denial of appeal.--If the Director 
        denies an appeal filed by a policyholder under this section, 
        the Director shall include with the notice of denial--
                    ``(A) an explanation of the legal options of the 
                policyholder for further challenging the denial; and
                    ``(B) the date on which the period of limitation 
                for instituting an action on the claim under section 
                1333 or 1341 of the National Flood Insurance Act of 
                1968 (42 U.S.C. 4053 and 4072), as applicable, will 
                end.
    ``(e) Optional Arbitration.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this subsection, the Director shall, by 
        regulation, establish a process through which a flood insurance 
        policyholder, instead of submitting an appeal under this 
        section, may request that the appeal be heard through 
        independent, binding arbitration.
            ``(2) Rule of construction.--Nothing in paragraph (1) may 
        be construed to--
                    ``(A) require a policyholder to submit to the 
                arbitration described in that paragraph; or
                    ``(B) prevent a policyholder from obtaining 
                judicial review of the results of the arbitration 
                described in that paragraph.''.
    (b) Relation to Regulations and Other Law.--Nothing in the 
amendments made by subsection (a) may be construed to require the 
Administrator to repeal the regulations promulgated under section 205 
of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 
(42 U.S.C. 4011 note), as in effect on the day before the date of 
enactment of this Act, or to promulgate new regulations, except as 
necessary to implement those amendments.

SEC. 405. ACCOUNTABILITY FOR UNDERPAYMENTS AND OVERPAYMENTS BY WRITE 
              YOUR OWN COMPANIES.

    Section 1348 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4084) is amended by adding at the end the following:
    ``(c) Accountability for Underpayments.--If the Administrator 
determines through any audit that the pool or an insurance company or 
other private organization described in subsection (a) has not adjusted 
a claim in accordance with adjusting standards that are in effect as of 
the date on which the adjustment is performed and, as a result of that 
failure, has underpaid or overpaid a claim of a policyholder, the 
penalty imposed by the Administrator with respect to such a failure may 
not be less for an overpayment of a claim than for an underpayment of a 
claim.
    ``(d) GAO Report.--Not later than 2 years after the date of 
enactment of this subsection, and triennially thereafter, the 
Comptroller General of the United States shall submit to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representatives a report 
regarding any fines or other penalties imposed by the Administrator 
under subsection (c).''.

SEC. 406. POLICYHOLDERS' RIGHT TO KNOW.

    (a) Use.--Section 1312 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4019), as amended by section 403(c), is amended by adding at 
the end the following:
    ``(g) Use of Technical Assistance Reports.--When adjusting claims 
for any damage to or loss of property that is covered by flood 
insurance made available under this title, the Administrator may rely 
upon technical assistance reports, as defined in section 1312A(a), only 
if the reports are final and are prepared in compliance with applicable 
State and Federal laws regarding professional licensure and conduct.''.
    (b) Disclosure.--Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.) is amended by inserting after section 
1312 (42 U.S.C. 4019) the following:

``SEC. 1312A. DISCLOSURE OF CLAIMS DOCUMENTS AND TECHNICAL ASSISTANCE 
              REPORTS.

    ``(a) Definitions.--In this section--
            ``(1) the term `policyholder' means any person listed as a 
        named or additional insured on the declarations page of a 
        policy for flood insurance coverage made available under this 
        title; and
            ``(2) the term `technical assistance report' means a report 
        created for the purpose of furnishing technical assistance to 
        an insurance claims adjuster assigned under the national flood 
        insurance program, including any report created by an engineer, 
        a surveyor, a salvor, an architect, or a certified public 
        accountant.
    ``(b) Provision of Copies.--
            ``(1) In general.--Notwithstanding section 552a of title 5, 
        United States Code, not later than 1 week after the date on 
        which the Administrator receives a written request, or a 
        request submitted online, from a policyholder, and with respect 
        to a claim for loss submitted by the policyholder for any 
        damage to or loss of property that is covered by the policy, 
        the Administrator shall provide a true, complete, and 
        unredacted copy of--
                    ``(A) all documents that constitute the claims file 
                of the insurance company with respect to the claim;
                    ``(B) any document created by any adjuster in 
                scoping the loss, including measurements, photographs, 
                and notes;
                    ``(C) any estimates of damages with respect to the 
                claim;
                    ``(D) any draft and final technical assistance 
                report relating to adjusting and paying or denying the 
                claim;
                    ``(E) any proof of loss, supplemental proofs of 
                loss, or any equivalent notices, together with 
                supporting documentation, with respect to the claim; 
                and
                    ``(F) any document relating to the denial or 
                partial denial of the claim.
            ``(2) Rule of construction.--Nothing in paragraph (1) may 
        be construed to limit the right of a policyholder to receive a 
        disclosure under section 552a of title 5, United States Code, 
        or any other provision of law.
    ``(c) Direct Disclosure by Write Your Own Companies and Direct 
Servicing Agents.--
            ``(1) In general.--A Write Your Own company or direct 
        servicing agent in possession of any technical assistance 
        report that is subject to disclosure under subsection (b) may 
        disclose such technical assistance report without further 
        review or approval by the Administrator.
            ``(2) Affirmative notification.--A Write Your Own company, 
        or any other entity servicing a claim under the national flood 
        insurance program, shall, not later than 30 days after the date 
        on which the company or entity receives notice of a claim, 
        notify the claimant that the claimant or an authorized 
        representative of the claimant may obtain, upon request, a copy 
        of any claim-related document described in subsection (b)(1) 
        that pertains to the claimant.''.
    (c) Transmission of Report Without Approval.--
            (1) Definition.--In this subsection, the term ``final 
        engineering report'' means an engineering report, survey, or 
        other document in connection with a claim for losses covered by 
        a policy for flood insurance coverage made available under the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) 
        that--
                    (A) is based on an on-site inspection;
                    (B) contains final conclusions with respect to an 
                engineering issue or issues involved in the claim; and
                    (C) is signed by the responsible in charge or 
                affixed with the seal of the responsible in charge, or 
                both.
            (2) Transmission.--A Write Your Own company or a National 
        Flood Insurance Program direct servicer may, without obtaining 
        further review or approval by the Administrator, transmit to a 
        policyholder a final engineering report in the possession of 
        the Write Your Own company or the direct servicer in connection 
        with a claim submitted by the policyholder.

SEC. 407. INCREASING STATUTE OF LIMITATIONS FOR LAWSUITS.

    (a) Government Program With Industry Assistance.--Section 1341 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4072) is amended to 
read as follows:

``SEC. 1341. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW.

    ``(a) Adjustment and Payment of Claims.--If the program is carried 
out as provided in section 1340, the Administrator may adjust and make 
payment of any claims for proved and approved losses covered by flood 
insurance made available under this title.
    ``(b) Judicial Review.--
            ``(1) Right of action.--Upon the denial or partial denial 
        by the Administrator of a claim described in subsection (a), or 
        upon the refusal of a policyholder to accept the amount allowed 
        upon a claim described in that subsection, the policyholder may 
        institute an action against the Administrator on the claim in 
        the United States district court for the district in which the 
        insured property or the major part thereof shall have been 
        situated if filed not later than 2 years after the date on 
        which the policyholder receives notice of denial or partial 
        denial of the claim.
            ``(2) Tolling.--In the case of a denial or partial denial 
        of a claim for losses that is appealed under section 205 of the 
        Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 
        (42 U.S.C. 4011 note), including through arbitration requested 
        under subsection (e) of that section, the limitation to 
        institute an action under this subsection shall be tolled until 
        the date on which the policyholder receives notice of a final 
        determination of that appeal or arbitration denying the claim 
        in whole or in part.
            ``(3) Jurisdiction.--A court described in paragraph (1) 
        shall have original exclusive jurisdiction to hear and 
        determine an action under that paragraph without regard to the 
        amount in controversy.''.
    (b) Industry Program With Federal Financial Assistance.--Section 
1333 of the National Flood Insurance Act of 1968 (42 U.S.C. 4053) is 
amended to read as follows:

``SEC. 1333. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW.

    ``(a) Adjustment and Payment of Claims.--The insurance companies 
and other insurers that 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 title.
    ``(b) Judicial Review.--
            ``(1) Right of action.--Upon the denial or partial denial 
        by any company or other insurer described in subsection (a) of 
        a claim described in that subsection, or upon the refusal of a 
        policyholder to accept the amount allowed upon a claim 
        described in that subsection, the policyholder may institute an 
        action on the claim against the company or other insurer, as 
        applicable, in the United States district court for the 
        district in which the insured property or the major part 
        thereof shall have been situated not later than 2 years after 
        the date on which the policyholder receives notice of denial or 
        partial denial of the claim.
            ``(2) Tolling.--In the case of a denial or partial denial 
        of a claim for losses that is appealed under section 205 of the 
        Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 
        (42 U.S.C. 4011 note), including through arbitration requested 
        under subsection (e) of that section, the limitation to 
        institute an action under this subsection shall be tolled until 
        the date on which the policyholder receives notice of a final 
        determination of that appeal or arbitration denying the claim 
        in whole or in part.
            ``(3) Jurisdiction.--A court described in paragraph (1) 
        shall have original exclusive jurisdiction to hear and 
        determine an action under that paragraph without regard to the 
        amount in controversy.''.

SEC. 408. AUTHORITY TO TERMINATE CONTRACTORS AND VENDORS.

    (a) In General.--Part C of chapter II of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4081 et seq.) is amended by adding at 
the end the following:

``SEC. 1349. TERMINATION OF CONTRACTS.

    ``(a) Definition.--In this section, the term `covered entity' means 
any attorney, law firm, consultant, or third-party company that 
provides services to a Write Your Own company.
    ``(b) Termination.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Administrator may direct a Write Your Own company to 
        terminate a contract or other agreement between a covered 
        entity and the Write Your Own company if the Administrator--
                    ``(A) determines that the covered entity has 
                engaged in conduct that is detrimental to the national 
                flood insurance program; and
                    ``(B) not later than 14 days before directing the 
                termination of the contract or other agreement, 
                provided notice to the covered entity and the Write 
                Your Own company with respect to the termination.
            ``(2) Appeal.--The Administrator shall establish a process 
        for a covered entity to appeal the termination of a contract or 
        other agreement under paragraph (1).
            ``(3) Early termination payouts.--The Administrator or a 
        Write Your Own company is not required to make any early 
        termination payout to a covered entity with respect to a 
        contract or agreement with the Write Your Own company with 
        respect to which the Administrator directs termination under 
        paragraph (1).
            ``(4) Contract terms.--The Administrator shall require each 
        Write Your Own company to include a reference to the authority 
        of the Administrator under this section in any contract between 
        a covered entity and the Write Your Own company.''.
    (b) Effective Date; Applicability.--The amendment made by 
subsection (a) shall apply to any contract or other agreement between a 
covered entity, as defined in section 1349(a) of the National Flood 
Insurance Act of 1968, as added by subsection (a), and a Write Your Own 
company that is entered into on or after the date of enactment of this 
Act.

SEC. 409. EASING PROOF OF LOSS REQUIREMENTS.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019), as amended by section 406(a), is amended by adding at the end 
the following:
    ``(h) Proof of Loss.--
            ``(1) Deadline for submission of supplemental proof of 
        loss.--If a policyholder submits a proof of loss, or an 
        equivalent submission, for a claim with respect to a policy for 
        flood insurance coverage made available under this title by the 
        deadline required under the standard flood insurance policy, 
        the Administrator may not deny payment for any supplemental 
        proof of loss submitted for flood damage sustained from the 
        same flood event on the basis that the policyholder failed to 
        include the flood damages on the initial proof of loss.
            ``(2) Effect of signature on proof of loss.--If a 
        policyholder of a policy for flood insurance coverage made 
        available under this title signs an initial or supplemental 
        proof of loss described in paragraph (1), that act of signing 
        may not preclude the policyholder from making supplemental 
        claims to, or otherwise amending, the initial proof of loss.
    ``(i) No Condition of Payment.--Notwithstanding any other provision 
of law, or any term or condition of a standard flood insurance policy, 
the Administrator may not condition payment of an undisputed claim 
based on the submission of a signed and sworn to proof of loss.''.

SEC. 410. DEADLINE FOR CLAIM PROCESSING.

    (a) In General.--Section 1312 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4019), as amended by section 409, is amended by 
adding at the end the following:
    ``(j) Deadline for Approval of Claims.--
            ``(1) In general.--The Administrator shall provide that, in 
        the case of a claim for damage to or loss of property that is 
        covered by a policy for flood insurance made available under 
        this title--
                    ``(A) except as provided in paragraph (2), not 
                later than 60 days after the date on which a proof of 
                loss or comparable submission is provided to the 
                Administrator--
                            ``(i) an initial determination regarding 
                        approval of the claim for payment or 
                        disapproval of the claim shall be made; and
                            ``(ii) notification of the determination 
                        described in clause (i) shall be provided to 
                        the policyholder making the claim; and
                    ``(B) payment of an approved claim shall be made as 
                soon as possible after that approval.
            ``(2) Extension of deadline.--The Administrator shall--
                    ``(A) provide that the period described in 
                paragraph (1)(A) may be extended by an additional 
                period of 30 days under extraordinary circumstances; 
                and
                    ``(B) by regulation--
                            ``(i) establish criteria for--
                                    ``(I) demonstrating the 
                                extraordinary circumstances described 
                                in subparagraph (A); and
                                    ``(II) determining to which claims 
                                the extraordinary circumstances 
                                described in subparagraph (A) apply; 
                                and
                            ``(ii) provide that, if the deadline 
                        imposed under paragraph (1)(A), as extended 
                        under subparagraph (A), if applicable, is not 
                        satisfied, the amount of the claim to which the 
                        deadline relates shall be increased with 
                        interest, which shall begin accruing on the 
                        date on which the initial claim is filed.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to any claim for damage to or loss of property that is covered by 
a policy for flood insurance made available under the National Flood 
Insurance Program that is made after the date of enactment of this Act.

SEC. 411. NO MANIPULATION OF ENGINEER REPORTS.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019), as amended by section 410(a), is amended by adding at the end 
the following:
    ``(k) Final Engineering Reports.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `covered claim' means any claim for 
                losses covered by a policy for flood insurance coverage 
                made available under this title; and
                    ``(B) the term `final engineering report' means an 
                engineering report, survey, or other document in 
                connection with a covered claim that--
                            ``(i) is based on an on-site inspection;
                            ``(ii) contains final conclusions with 
                        respect to an engineering issue or issues 
                        involved in the claim; and
                            ``(iii) is signed by the responsible in 
                        charge or affixed with the seal of the 
                        responsible in charge, or both.
            ``(2) Prohibition on manipulation and transmission to third 
        parties.--The Administrator shall require that, in the case of 
        any on-site inspection of a property by an engineer for the 
        purpose of assessing any covered claim, the final engineering 
        report--
                    ``(A) may not--
                            ``(i) include alterations by, or at the 
                        request of, anyone other than the person 
                        responsible for the report; or
                            ``(ii) be transmitted to any other person 
                        before the final engineering report is 
                        transmitted to the policyholder who submitted 
                        the covered claim; and
                    ``(B) shall include a certification, signed by the 
                person responsible for the final engineering report, 
                that the final engineering report does not contain any 
                alterations described in subparagraph (A).''.

SEC. 412. IMPROVED TRAINING OF FLOODPLAIN MANAGERS, AGENTS, AND 
              ADJUSTERS.

    (a) Local Floodplain Managers.--Each regional office of the Federal 
Emergency Management Agency shall--
            (1) provide training to local floodplain managers, agents, 
        and claim adjusters in the region regarding the 
        responsibilities and procedures of local floodplain managers 
        with respect to conducting substantial damage and substantial 
        improvement determinations;
            (2) work with applicable State agencies to provide the 
        training described in paragraph (1); and
            (3) verify that the individuals described in paragraph (1) 
        are completing the training described in that paragraph.
    (b) Major Disaster Training.--After a flood that is declared a 
major disaster by the President under section 401 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), 
the Administrator shall, if determined appropriate, provide--
            (1) refresher training to prepare insurance claims 
        adjusters for the unique circumstances of the major disaster; 
        and
            (2) any briefings that are necessary to prepare and inform 
        floodplain managers, agents, and claim adjusters regarding any 
        atypical circumstances and issues arising from the natural 
        disaster.

SEC. 413. ATTORNEY FEE SHIFTING.

    (a) Administrative Appeals.--Subsection (d) of section 1312 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4019), as added by 
section 401(a)(1), is amended by adding at the end the following:
            ``(5) Awards for costs in administrative proceedings.--
                    ``(A) In general.--If the claimant prevails in any 
                appeal to the Administrator of the disallowance or 
                partial disallowance of a claim for losses covered by 
                flood insurance made available under this title, the 
                Administrator shall award costs of the appeal, 
                including attorney fees, any proceeding expenses, and 
                engineering and other expert expenses, to the claimant.
                    ``(B) Definition.--For purposes of this paragraph, 
                the term `prevail' means to be awarded a greater amount 
                by the Administrator than the amount of the last, best 
                offer from the Administrator with respect to the claim 
                of the claimant.''.
    (b) Judicial Review.--
            (1) Government program with industry assistance.--
        Subsection (b) of section 1341 of the National Flood Insurance 
        Act of 1968 (42 U.S.C. 4072), as added by section 407(a), is 
        amended by adding at the end the following:
            ``(4) Attorney fees and other litigation costs.--
                    ``(A) In general.--If the claimant prevails in an 
                action under this subsection, the court shall award 
                reasonable costs of litigation, including attorney 
                fees, litigation expenses, and engineering and other 
                expert expenses, to the claimant.
                    ``(B) Subrogation.--Any award under subparagraph 
                (A) shall be paid by the Administrator and, upon such 
                payment, the Administrator shall be subrogated to the 
                rights of the claimant to recover such costs for which 
                the Administrator has compensated the claimant from any 
                insurance company or other insurer or insurance 
                adjustment organization that may be responsible for the 
                disallowance or partial disallowance of the claim.
                    ``(C) Definition.--For purposes of this paragraph, 
                the term `prevail' means to be awarded a greater amount 
                by the court than the amount of the last, best offer 
                from the Administrator with respect to the claim of the 
                claimant.''.
            (2) Industry program with federal financial assistance.--
        Subsection (b) of section 1333 of the National Flood Insurance 
        Act of 1968 (42 U.S.C. 4053), as amended by section 407(b), is 
        amended by adding at the end the following:
            ``(4) Attorney fees and other litigation costs.--
                    ``(A) In general.--If the claimant prevails in an 
                action under this subsection, the court shall award 
                reasonable costs of litigation, including attorney 
                fees, litigation expenses, and engineering and other 
                expert expenses, to the claimant.
                    ``(B) Subrogation.--Any award under subparagraph 
                (A) shall be paid by the Administrator and, upon such 
                payment, the Administrator shall be subrogated to the 
                rights of the claimant to recover such costs for which 
                the Administrator has compensated the claimant from any 
                company or other insurer responsible for the 
                disallowance or partial disallowance of the claim.
                    ``(C) Definition.--For purposes of this paragraph, 
                the term `prevail' means to be awarded a greater amount 
                by the court than the amount of the last, best offer 
                from the insurer or Administrator with respect to the 
                claim of the claimant.''.

SEC. 414. DOJ DEFENSE AGAINST POLICYHOLDER LAWSUITS.

    Subsection (b) of section 1341 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4072), as amended by section 413(b)(1), is amended 
by adding at the end the following:
            ``(5) Representation by department of justice.--If a 
        claimant institutes an action under this subsection--
                    ``(A) the Administrator shall refer the matter to 
                the Attorney General; and
                    ``(B) the Attorney General--
                            ``(i) shall represent the Administrator or 
                        the Write Your Own company, as applicable, in 
                        the action; and
                            ``(ii) may not seek to have the court 
                        dismiss an action with potentially meritorious 
                        claims based on good faith errors or omissions 
                        by the claimant in the claimant's proof of 
                        loss.''.

SEC. 415. PILOT PROGRAM FOR PRE-EXISTING STRUCTURAL CONDITIONS.

    (a) Definitions.--In this section--
            (1) the term ``covered property'' means a property that is 
        or may be covered by flood insurance under the National Flood 
        Insurance Program; and
            (2) the term ``covered policyholder'' means a policyholder 
        or potential policyholder of flood insurance under the National 
        Flood Insurance Program for a covered property.
    (b) Pilot Program.--Not later than 180 days after the date of 
enactment of this Act, the Administrator shall establish a pilot 
program under which Write Your Own companies and National Flood 
Insurance Program direct servicers shall, at the request of a covered 
policyholder and before providing or renewing insurance coverage with 
respect to a covered property under the National Flood Insurance 
Program, investigate the pre-existing structural condition of the 
covered property for any issues that could result in the denial of a 
claim under the National Flood Insurance Program for damage to or loss 
of the covered property.

SEC. 416. AGENT ADVISORY COUNCIL.

    Part C of chapter II of the National Flood Insurance Act of 1968 
(42 U.S.C. 4081 et seq.), as amended by section 408, is amended by 
adding at the end the following:

``SEC. 1350. AGENT ADVISORY COUNCIL.

    ``(a) Establishment.--There is established a council to be known as 
the Agent Advisory Council (in this section referred to as the 
`Council').
    ``(b) Membership.--
            ``(1) Members.--The Council shall consist of--
                    ``(A) the Administrator, or the designee of the 
                Administrator; and
                    ``(B) 10 additional members appointed by the 
                Administrator or the designee of the Administrator, of 
                whom--
                            ``(i) 1 shall be a member of the National 
                        Association of Insurance Commissioners;
                            ``(ii) 2 shall be members of the 
                        Independent Insurance Agents and Brokers of 
                        America;
                            ``(iii) 1 shall be a member of United 
                        Policyholders;
                            ``(iv) 1 shall be a representative of the 
                        Emergency Management Institute of the Federal 
                        Emergency Management Agency;
                            ``(v) 1 shall be a representative of the 
                        Office of the Flood Insurance Advocate of the 
                        Federal Emergency Management Agency;
                            ``(vi) 2 shall be members of the National 
                        Association of Professional Insurance Agents;
                            ``(vii) 1 shall be a representative of a 
                        recognized professional association or 
                        organization representing homebuilders or land 
                        developers; and
                            ``(viii) 1 shall be a representative of a 
                        recognized professional association or 
                        organization representing the real estate 
                        industry.
            ``(2) Qualifications.--
                    ``(A) In general.--Each member of the Council shall 
                have experience with--
                            ``(i) contacting policyholders under the 
                        national flood insurance program, including 
                        with respect to applying for flood insurance 
                        and processing a claim for damage to or loss of 
                        property that is covered by flood insurance; 
                        and
                            ``(ii) riverine and coastal flood insurance 
                        policies.
                    ``(B) Considerations.--The Administrator shall, to 
                the maximum extent practicable, ensure that the 
                membership of the Council has a balance of governmental 
                and private members, and includes geographic diversity.
                    ``(C) Conflicts of interest.--A member of the 
                Council--
                            ``(i) may not, while serving on the 
                        Council, be employed or retained--
                                    ``(I) by a Federal Emergency 
                                Management Agency contractor or 
                                consultant; or
                                    ``(II) by a nongovernmental entity 
                                that was awarded a Federal grant during 
                                the 5-year period preceding the date on 
                                which the member was appointed to the 
                                Council; and
                            ``(ii) may not have been employed by a 
                        Federal Emergency Management Agency contractor 
                        or consultant during the 5-year period 
                        preceding the date on which the member was 
                        appointed to the Council.
            ``(3) Consultation.--In appointing a member of the Council 
        from an entity described in clauses (i) through (viii) of 
        paragraph (1)(B), the Administrator or the designee of the 
        Administrator, as applicable, shall consult with the entity.
            ``(4) Chairperson.--The members of the Council shall elect 
        1 member to serve as the chairperson of the Council (in this 
        section referred to as the `Chairperson').
    ``(c) Duties.--The Council shall--
            ``(1) provide recommendations to the Administrator on--
                    ``(A) improving the customer experience for 
                policyholders under the national flood insurance 
                program;
                    ``(B) training insurance agents that issue flood 
                insurance policies; and
                    ``(C) improving the processing and handling of 
                claims for damage to or loss of property that is 
                covered by flood insurance; and
            ``(2) submit to the Administrator an annual report that 
        includes--
                    ``(A) a description of the activities of the 
                Council; and
                    ``(B) a summary of recommendations made by the 
                Council to the Administrator.
    ``(d) Compensation.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        member of the Council shall receive no additional compensation 
        for serving on the Council.
            ``(2) Travel expenses.--Each member of the Council may be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, in accordance with sections 5702 and 5703 of title 
        5, United States Code, while away from their homes or regular 
        places of business in performance of services for the Council.
    ``(e) Meetings and Actions.--
            ``(1) Meetings.--
                    ``(A) In general.--The Council shall meet not less 
                frequently than twice each year at the request of the 
                Chairperson or a majority of the members of the 
                Council.
                    ``(B) Initial meeting.--The Administrator, or a 
                designee of the Administrator, shall request and 
                coordinate the initial meeting of the Council.
            ``(2) Action by majority vote.--The Council may take action 
        by a vote of the majority of the members.
    ``(f) Officers.--The Chairperson may appoint officers to assist in 
carrying out the duties of the Council under subsection (c).
    ``(g) Staff.--Upon the request of the Chairperson, the 
Administrator may detail, on a nonreimbursable basis, personnel of the 
Office of the Flood Insurance Advocate of the Federal Emergency 
Management Agency to assist the Council in carrying out the duties of 
the Council.
    ``(h) Powers.--In carrying out this section, the Council may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research as the Council considers appropriate.
    ``(i) Report to Congress and OMB.--The Administrator shall submit 
to the Committee on Banking, Housing, and Urban Affairs of the Senate, 
the Committee on Financial Services of the House of Representatives, 
and the Director of the Office of Management and Budget an annual 
report on--
            ``(1) the recommendations made by the Council; and
            ``(2) any recommendations made by the Council during the 
        year covered by the report that, as of the date on which the 
        report is submitted, have been deferred or not acted upon, 
        together with an explanatory statement with respect to those 
        recommendations.
    ``(j) Applicability of the Federal Advisory Committee Act.--Section 
14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the Council.''.

SEC. 417. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER OF 
              PROPERTY.

    (a) In General.--Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.), as amended by section 207, is amended by 
adding at the end the following:

``SEC. 1328. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER OF 
              PROPERTY.

    ``(a) In General.--After September 30, 2022, no new flood insurance 
coverage may be provided under this title for any real property unless 
an appropriate public body has imposed, by statute or regulation, a 
duty on any seller or lessor of improved real estate to provide to any 
purchaser or lessee (with respect to a lease for a term that is not 
shorter than 30 days) of the property a property flood hazard 
disclosure that the Administrator has determined meets the requirements 
of subsection (b).
    ``(b) Disclosure Requirements.--
            ``(1) Requirements for sellers.--A property flood hazard 
        disclosure for the sale of a property shall meet the 
        requirements of this subsection only if the disclosure--
                    ``(A) is made in writing;
                    ``(B) discloses any actual knowledge of the seller 
                of any--
                            ``(i) prior physical damage caused by flood 
                        to a structure located on the property;
                            ``(ii) prior insurance claim for a loss 
                        covered under the national flood insurance 
                        program or private flood insurance with respect 
                        to the property;
                            ``(iii) previous notification regarding the 
                        designation of the property as a repetitive 
                        loss structure or severe repetitive loss 
                        structure (as defined in section 1366(h)); and
                            ``(iv) Federal legal obligation to obtain 
                        and maintain flood insurance running with the 
                        property; and
                    ``(C) is delivered by, or on behalf of, the seller 
                to the purchaser before the purchaser becomes obligated 
                under any contract to purchase the property.
            ``(2) Requirements for lessors.--A property flood hazard 
        disclosure for a rental property with a lease for a term that 
        is not shorter than 30 days shall meet the requirements of this 
        subsection only if the disclosure--
                    ``(A) is made in writing;
                    ``(B) discloses any actual knowledge of the 
                lessor--
                            ``(i) of any Federal legal obligation to 
                        obtain and maintain flood insurance running 
                        with the property;
                            ``(ii) regarding any prior physical damage 
                        caused by flood with respect to the unit being 
                        leased; and
                            ``(iii) of the availability of coverage 
                        under this title for contents located in a 
                        structure on the property; and
                    ``(C) is delivered by, or on behalf of, the lessor 
                to the lessee before the lessee becomes obligated under 
                any contract to lease the property.
            ``(3) Rule of construction.--Nothing in this section may be 
        construed as preventing a State from adopting disclosure 
        requirements in addition to the requirements of this 
        section.''.
    (b) Availability of Flood Insurance Coverage.--Section 1305(c) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 4012(c)) is 
amended--
            (1) in paragraph (1), by striking ``, and'' at the end and 
        inserting a semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) given satisfactory assurance that, not later than 
        October 1, 2022, property flood hazard disclosure requirements 
        will have been adopted for the area (or subdivision) that meet 
        the requirements of section 1328.''.
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