IB 

Union Calendar No. 282 

111TH CONGRESS 

2D SESSION H. R. 5114 

[Report No. 111–495] 

To extend the authorization for the national flood insurance program, to 

identify priorities essential to reform and ongoing stable functioning 

of the program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 22, 2010 

Ms. WATERS (for herself, Mr. FRANK of Massachusetts, Mr. KANJORSKI, Mr. 

COSTELLO, Ms. MATSUI, Mr. THOMPSON of Mississippi, Mr. PATRICK J. 

MURPHY of Pennsylvania, Mrs. CAPPS, Mr. CARDOZA, Mr. HARE, Mr. AL

GREEN of Texas, and Ms. LINDA T. SA ́NCHEZ of California) introduced 

the following bill; which was referred to the Committee on Financial Services 

MAY 26, 2010 

Additional sponsors: Mr. STARK and Mr. SIRES

MAY 26, 2010 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on April 22, 2010] 


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A BILL 

To extend the authorization for the national flood insurance 

program, to identify priorities essential to reform and 

ongoing stable functioning of the program, and for other 

purposes. 


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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Flood Insurance Reform Priorities Act of 2010’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. Findings and purposes. 

Sec. 3. Extension of national flood insurance program. 

Sec. 4. Maximum coverage limits. 

Sec. 5. Phase-in of actuarial rates for nonresidential properties, certain preFIRM properties, and non-primary residences. 

Sec. 6. 5-year delay in effective date of mandatory purchase requirement for new 

flood hazard areas. 

Sec. 7. 5-year phase-in of flood insurance rates for newly mapped areas. 

Sec. 8. Increase in annual limitation on premium increases. 

Sec. 9. Consideration of construction, reconstruction, and improvement of flood 

protection systems in determination of flood insurance rates. 

Sec. 10. Treatment of certain flood protection projects. 

Sec. 11. Notification to homeowners regarding mandatory purchase requirement 

applicability and rate phase-ins. 

Sec. 12. Coverage for additional living expenses and business interruption. 

Sec. 13. Exception to waiting period for effective date of policies. 

Sec. 14. Minimum deductibles for claims. 

Sec. 15. Payment of premiums in installments for low-income policyholders. 

Sec. 16. Enforcement. 

Sec. 17. Notification to tenants of availability of contents insurance. 

Sec. 18. Flood insurance outreach. 

Sec. 19. Notice of availability of flood insurance and escrow in RESPA good 

faith estimate. 

Sec. 20. Authorization of additional FEMA staff. 

Sec. 21. Plan to verify maintenance of flood insurance on Mississippi and Louisiana properties receiving emergency supplemental funds. 

Sec. 22. Flood insurance advocate. 

Sec. 23. Eligibility of property demolition and rebuilding under flood mitigation 

assistance program. 

Sec. 24. Study regarding mandatory purchase requirement for non-federally related loans. 

Sec. 25. Study of methods to increase flood insurance program participation by 

low-income families. 

Sec. 26. Report on inclusion of building codes in floodplain management criteria. 

Sec. 27. Study on repaying flood insurance debt. 

Sec. 28. Study regarding impact of rate increases on pre-FIRM properties. 

Sec. 29. Study of effects of Act. 

Sec. 30. Rulemaking. 


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1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) FINDINGS.—The Congress finds that— 

3 (1) since the enactment of National Flood Insur4 ance Act of 1968, the national flood insurance pro5 gram has been the primary source of reliable, reason6 ably priced, flood insurance coverage for millions of 

7 American homes and businesses; 

8 (2) today over 5,500,000 homes and businesses in 

9 the United States rely on the national flood insurance 

10 program to provide a degree of financial security; 

11 (3) although participation in the national flood 

12 insurance program has, in the past, largely been lim13 ited to properties required to participate in the pro14 gram because of the program’s mandatory purchase 

15 requirement for properties in special flood hazard 

16 areas with loans from federally regulated lenders, re17 cent annual and extraordinary flooding has resulted 

18 in the program enjoying its highest voluntary partici19 pation since the establishment of the mandatory flood 

20 insurance purchase requirement; 

21 (4) several years of below-average flood claims 

22 losses and increased voluntary participation in the 

23 national flood insurance program have allowed the 

24 program to fully service the debt incurred following 

25 Hurricanes Katrina and Rita and allowed the proVerDate Mar 15 2010 23:20 May 26, 2010 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H5114.RH H5114

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1 gram to pay $598,000,000 of the principal of that 

2 outstanding debt; 

3 (5) though significant reforms are needed to fur4 ther improve the financial outlook of the national 

5 flood insurance program, long-term and reliable au6 thorization of the program is an essential element to 

7 stabilizing the already fragile United States housing 

8 market; 

9 (6) increased flooding in areas outside des10 ignated special flood hazard areas prompted the Exec11 utive and the Congress in 2002 to begin calling for 

12 the national flood insurance program to develop and 

13 disseminate revised, updated flood insurance rate 

14 maps that reflect the real risk of flooding for prop15 erties not previously identified as being located with16 in a special flood hazard area; 

17 (7) dissemination of accurate, up-to-date, flood18 risk information remains a primary goal of the na19 tional flood insurance program and such information 

20 should be disseminated as soon as such information is 

21 collected and available; 

22 (8) communities should be encouraged to make 

23 their residents aware of updated flood-risk data while 

24 communities are assessing and incorporating updated 

25 flood-risk data into long-term community planning; 


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1 (9) the maximum coverage limits for flood insur2 ance policies should be increased to reflect inflation 

3 and the increased cost of housing; and 

4 (10) phasing out flood insurance premium sub5 sidies currently extended to vacation homes, second 

6 homes, and commercial properties would result in sig7 nificant average annual savings to the national flood 

8 insurance program. 

9 (b) PURPOSES.—The purposes of this Act are— 

10 (1) to identify priorities essential to the reform 

11 and ongoing stable functioning of the national flood 

12 insurance program; 

13 (2) to increase incentives for homeowners and 

14 communities to participate in the national flood in15 surance program and to improve oversight to ensure 

16 better accountability of the national flood insurance 

17 program and the Federal Emergency Management 

18 Agency; and 

19 (3) to increase awareness of homeowners of flood 

20 risks and improve the information regarding such 

21 risks provided to homeowners. 

22 SEC. 3. EXTENSION OF NATIONAL FLOOD INSURANCE PRO23 GRAM. 

24 (a) PROGRAM EXTENSION.—Section 1319 of the Na25 tional Flood Insurance Act of 1968 (42 U.S.C. 4026) is 


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1 amended by striking ‘‘September 30, 2008’’ and inserting 

2 ‘‘September 30, 2015’’. 

3 (b) FINANCING.—Section 1309(a) of such Act (42 

4 U.S.C. 4016(a)) is amended by striking ‘‘September 30, 

5 2008’’ and inserting ‘‘September 30, 2015’’. 

6 (c) EXTENSION OF PILOT PROGRAM FOR MITIGATION

7 OF SEVERE REPETITIVE LOSS PROPERTIES.—Section 

8 1361A of the National Flood Insurance Act of 1968 (42 

9 U.S.C. 4102a) is amended— 

10 (1) in subsection (k)(1), by striking ‘‘2005, 2006, 

11 2007, 2008, and 2009’’ and inserting ‘‘2011, 2012, 

12 2013, 2014, and 2015’’; and 

13 (2) by striking subsection (l). 

14 SEC. 4. MAXIMUM COVERAGE LIMITS. 

15 Subsection (b) of section 1306 of the National Flood 

16 Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended— 

17 (1) in paragraph (2), by striking ‘‘$250,000’’ 

18 and inserting ‘‘$335,000’’; 

19 (2) in paragraph (3), by striking ‘‘$100,000’’ 

20 and inserting ‘‘$135,000’’; and 

21 (3) in paragraph (4)— 

22 (A) by striking ‘‘$500,000’’ each place such 

23 term appears and inserting ‘‘$670,000’’; and 

24 (B) by inserting before ‘‘; and’’ the fol25 lowing: ‘‘; except that, in the case of any nonresiVerDate Mar 15 2010 23:20 May 26, 2010 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H5114.RH H5114

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1 dential property that is a structure containing 

2 more than one dwelling unit that is made avail3 able for occupancy by rental (notwithstanding 

4 the provisions applicable to the determination of 

5 the risk premium rate for such property), addi6 tional flood insurance in excess of such limits 

7 shall be made available to every insured upon re8 newal and every applicant for insurance so as to 

9 enable any such insured or applicant to receive 

10 coverage up to a total amount that is equal to 

11 the product of the total number of such rental 

12 dwelling units in such property and the max13 imum coverage limit per dwelling unit specified 

14 in paragraph (2); except that in the case of any 

15 such multi-unit, nonresidential rental property 

16 that is a pre-FIRM structure (as such term is 

17 defined in section 578(b) of the National Flood 

18 Insurance Reform Act of 1994 (42 U.S.C. 4014 

19 note)), the risk premium rate for the first 

20 $500,000 of coverage shall be determined in ac21 cordance with section 1307(a)(2) and the risk 

22 premium rate for any coverage in excess of such 

23 amount shall be determined in accordance with 

24 section 1307(a)(1)’’. 


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1 SEC. 5. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDEN2 TIAL PROPERTIES, CERTAIN PRE-FIRM PROP3 ERTIES, AND NON-PRIMARY RESIDENCES. 

4 (a) IN GENERAL.—Section 1308(c) of the National 

5 Flood Insurance Act of 1968 (42 U.S.C. 4015(c)) is amend6 ed— 

7 (1) by redesignating paragraph (2) as para8 graph (5); and 

9 (2) by inserting after paragraph (1) the fol10 lowing new paragraphs: 

11 ‘‘(2) NONRESIDENTIAL PROPERTIES.—Any non12 residential property, which term shall not include 

13 any multifamily rental property that consists of four 

14 or more dwelling units. 

15 ‘‘(3) NON-PRIMARY RESIDENCES.—Any residen16 tial property that is not the primary residence of any 

17 individual, including the owner of the property or 

18 any other individual who resides in the property as 

19 a tenant. 

20 ‘‘(4) RECENTLY PURCHASED PRE-FIRM SINGLE21 FAMILY PROPERTIES USED AS PRINCIPAL

22 RESIDENCIES.—Any single family property that— 

23 ‘‘(A) has been constructed or substantially 

24 improved and for which such construction or im25 provement was started, as determined by the Di26 rector, before December 31, 1974, or before the efVerDate Mar 15 2010 23:20 May 26, 2010 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H5114.RH H5114

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1 fective date of the initial rate map published by 

2 the Director under paragraph (2) of section 1360 

3 for the area in which such property is located, 

4 whichever is later; and 

5 ‘‘(B) is purchased after the date of enact6 ment of the Flood Insurance Reform Priorities 

7 Act of 2010.’’. 

8 (b) TECHNICAL AMENDMENTS.—Section 1308 of the 

9 National Flood Insurance Act of 1968 (42 U.S.C. 4015) is 

10 amended— 

11 (1) in subsection (c)— 

12 (A) in the matter preceding paragraph (1), 

13 by striking ‘‘the limitations provided under 

14 paragraphs (1) and (2)’’ and inserting ‘‘sub15 section (e)’’; and 

16 (B) in paragraph (1), by striking ‘‘, except’’ 

17 and all that follows through ‘‘subsection (e)’’; 

18 and 

19 (2) in subsection (e), by striking ‘‘paragraph (2) 

20 or (3)’’ and inserting ‘‘paragraph (5)’’. 

21 (c) EFFECTIVE DATE AND TRANSITION.— 

22 (1) EFFECTIVE DATE.—The amendments made 

23 by subsections (a) and (b) shall apply beginning upon 

24 the expiration of the 3-year period that begins on the 


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1 date of the enactment of this Act, except as provided 

2 in paragraph (2) of this subsection. 

3 (2) TRANSITION FOR PROPERTIES COVERED BY

4 FLOOD INSURANCE UPON EFFECTIVE DATE.— 

5 (A) INCREASE OF RATES OVER TIME.—In 

6 the case of any property described in paragraph 

7 (2), (3), or (4) of section 1308(c) of the National 

8 Flood Insurance Act of 1968, as amended by sub9 section (a) of this section, that, as of the effective 

10 date under paragraph (1) of this subsection, is 

11 covered under a policy for flood insurance made 

12 available under the national flood insurance pro13 gram for which the chargeable premium rates 

14 are less than the applicable estimated risk pre15 mium rate under section 1307(a)(1) for the area 

16 in which the property is located, the Director of 

17 the Federal Emergency Management Agency 

18 shall increase the chargeable premium rates for 

19 such property over time to such applicable esti20 mated risk premium rate under section 

21 1307(a)(1). 

22 (B) ANNUAL INCREASE.—Such increase 

23 shall be made by increasing the chargeable pre24 mium rates for the property (after application of 

25 any increase in the premium rates otherwise apVerDate Mar 15 2010 23:20 May 26, 2010 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\H5114.RH H5114

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1 plicable to such property), once during the 12- 

2 month period that begins upon the effective date 

3 under paragraph (1) of this subsection and once 

4 every 12 months thereafter until such increase is 

5 accomplished, by 20 percent (or such lesser 

6 amount as may be necessary so that the charge7 able rate does not exceed such applicable esti8 mated risk premium rate or to comply with sub9 paragraph (C)). 

10 (C) PROPERTIES SUBJECT TO PHASE-IN

11 AND ANNUAL INCREASES.—In the case of any 

12 pre-FIRM property (as such term is defined in 

13 section 578(b) of the National Flood Insurance 

14 Reform Act of 1974), the aggregate increase, dur15 ing any 12-month period, in the chargeable pre16 mium rate for the property that is attributable 

17 to this paragraph or to an increase described in 

18 section 1308(e) of the National Flood Insurance 

19 Act of 1968 may not exceed 20 percent. 

20 (D) FULL ACTUARIAL RATES.—The provi21 sions of paragraphs (2), (3), and (4) of such sec22 tion 1308(c) shall apply to such a property upon 

23 the accomplishment of the increase under this 

24 paragraph and thereafter. 


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1 SEC. 6. 5-YEAR DELAY IN EFFECTIVE DATE OF MANDATORY 

2 PURCHASE REQUIREMENT FOR NEW FLOOD 

3 HAZARD AREAS. 

4 (a) IN GENERAL.—Section 102 of the Flood Disaster 

5 Protection Act of 1973 (42 U.S.C. 4012a) is amended by 

6 adding at the end the following new subsection: 

7 ‘‘(i) DELAYED EFFECTIVE DATE OF MANDATORY PUR8 CHASE REQUIREMENT FOR NEW FLOOD HAZARD AREAS.— 

9 ‘‘(1) IN GENERAL.—In the case of any area that 

10 was not previously designated as an area having spe11 cial flood hazards and that, pursuant to any issuance, 

12 revision, updating, or other change in flood insurance 

13 maps that takes effect on or after September 1, 2008, 

14 becomes designated as an area having special flood 

15 hazards, if each State and local government having 

16 jurisdiction over any portion of the geographic area 

17 has complied with paragraph (2), such designation 

18 shall not take effect for purposes of subsection (a), (b), 

19 or (e) of this section, or section 202(a) of this Act, 

20 until the expiration of the 5-year period beginning 

21 upon the date that such maps, as issued, revised, up22 date, or otherwise changed, become effective. 

23 ‘‘(2) NOTICE REQUIREMENTS.—A State or local 

24 government shall be considered to have complied with 

25 this paragraph with respect to any geographic area 

26 described in paragraph (1) only if the State or local 


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1 government has, before the effective date of the issued, 

2 revised, updated, or changed maps, and in accordance 

3 with such standards as shall be established by the Di4 rector— 

5 ‘‘(A) developed an evacuation plan to be im6 plemented in the event of flooding in such por7 tion of the geographic area; and 

8 ‘‘(B) developed and implemented an out9 reach and communication plan to advise occu10 pants in such portion of the geographic area of 

11 potential flood risks, the opportunity to purchase 

12 flood insurance, and the consequences of failure 

13 to purchase flood insurance. 

14 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

15 paragraph (1) may be construed to affect the applica16 bility of a designation of any area as an area having 

17 special flood hazards for purposes of the availability 

18 of flood insurance coverage, criteria for land manage19 ment and use, notification of flood hazards, eligibility 

20 for mitigation assistance, or any other purpose or 

21 provision not specifically referred to in paragraph 

22 (1).’’. 

23 (b) CONFORMING AMENDMENT.—The second sentence 

24 of subsection (h) of section 1360 of the National Flood In25 surance Act of 1968 (42 U.S.C. 4101(h)) is amended by 


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1 striking ‘‘Such’’ and inserting ‘‘Except for notice regarding 

2 a change described in section 102(i)(1) of the Flood Disaster 

3 Protection Act of 1973 (42 U.S.C. 4012a(i)(1)), such’’. 

4 (c) NO REFUNDS.—Nothing in this section or the 

5 amendments made by this section may be construed to au6 thorize or require any payment or refund for flood insur7 ance coverage purchased for any property that covered any 

8 period during which such coverage is not required for the 

9 property pursuant to the applicability of the amendment 

10 made by subsection (a). 

11 SEC. 7. 5-YEAR PHASE-IN OF FLOOD INSURANCE RATES FOR 

12 NEWLY MAPPED AREAS. 

13 Section 1308 of the National Flood Insurance Act of 

14 1968 (42 U.S.C. 4015), as amended by the preceding provi15 sions of this Act, is further amended— 

16 (1) in subsection (a), in the matter preceding 

17 paragraph (1), by inserting ‘‘or notice’’ after ‘‘pre18 scribe by regulation’’; 

19 (2) in subsection (c), by inserting ‘‘and sub20 section (g)’’ before the first comma; and 

21 (3) by adding at the end the following new sub22 section: 

23 ‘‘(g) 5-YEAR PHASE-IN OF FLOOD INSURANCE RATES

24 FOR NEWLY MAPPED AREAS.—Notwithstanding any other 

25 provision of law relating to chargeable risk premium rates 


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1 for flood insurance coverage under this title, in the case of 

2 any area that was not previously designated as an area 

3 having special flood hazards and that, pursuant to any 

4 issuance, revision, updating, or other change in flood insur5 ance maps, becomes designated as such an area, during the 

6 5-year period that begins upon the expiration of the period 

7 referred to in section 102(i)(1) of the Flood Disaster Protec8 tion Act of 1973 with respect to such area, the chargeable 

9 premium rate for flood insurance under this title with re10 spect to any property that is located within such area shall 

11 be— 

12 ‘‘(1) for the first year of such 5-year period, 20 

13 percent of the chargeable risk premium rate otherwise 

14 applicable under this title to the property; 

15 ‘‘(2) for the second year of such 5-year period, 40 

16 percent of the chargeable risk premium rate otherwise 

17 applicable under this title to the property; 

18 ‘‘(3) for the third year of such 5-year period, 60 

19 percent of the chargeable risk premium rate otherwise 

20 applicable under this title to the property; 

21 ‘‘(4) for the fourth year of such 5-year period, 80 

22 percent of the chargeable risk premium rate otherwise 

23 applicable under this title to the property; and 


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1 ‘‘(5) for the fifth year of such 5-year period, 100 

2 percent of the chargeable risk premium rate otherwise 

3 applicable under this title to the property.’’. 

4 SEC. 8. INCREASE IN ANNUAL LIMITATION ON PREMIUM IN5 CREASES. 

6 Section 1308(e) of the National Flood Insurance Act 

7 of 1968 (42 U.S.C. 4015(e)) is amended by striking ‘‘10 

8 percent’’ and inserting ‘‘20 percent’’. 

9 SEC. 9. CONSIDERATION OF CONSTRUCTION, RECONSTRUC10 TION, AND IMPROVEMENT OF FLOOD PRO11 TECTION SYSTEMS IN DETERMINATION OF 

12 FLOOD INSURANCE RATES. 

13 (a) IN GENERAL.—Section 1307 of the National Flood 

14 Insurance Act of 1968 (42 U.S.C. 4014) is amended— 

15 (1) in subsection (e)— 

16 (A) in the first sentence, by striking ‘‘con17 struction of a flood protection system’’ and in18 serting ‘‘construction, reconstruction, or im19 provement of a flood protection system (without 

20 respect to the level of Federal investment or par21 ticipation)’’; and 

22 (B) in the second sentence— 

23 (i) by striking ‘‘construction of a flood 

24 protection system’’ and inserting ‘‘construcVerDate Mar 15 2010 23:20 May 26, 2010 Jkt 089200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6203 E:\BILLS\H5114.RH H5114

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1 tion, reconstruction, or improvement of a 

2 flood protection system’’; and 

3 (ii) by inserting ‘‘based on the present 

4 value of the completed system’’ after ‘‘has 

5 been expended’’; and 

6 (2) in subsection (f)— 

7 (A) in the first sentence in the matter pre8 ceding paragraph (1), by inserting ‘‘(without re9 spect to the level of Federal investment or par10 ticipation)’’ before the period at the end; 

11 (B) in the third sentence in the matter pre12 ceding paragraph (1), by inserting ‘‘, whether 

13 coastal or riverine,’’ after ‘‘special flood hazard’’; 

14 and 

15 (C) in paragraph (1), by striking ‘‘a Fed16 eral agency in consultation with the local project 

17 sponsor’’ and inserting ‘‘the entity or entities 

18 that own, operate, maintain, or repair such sys19 tem’’. 

20 (b) REGULATIONS.—Not later than 90 days after the 

21 date of the enactment of this Act, the Administrator of the 

22 Federal Emergency Management Agency shall promulgate 

23 regulations to carry out the amendments made by sub24 section (a). Section 5 may not be construed to annul, alter, 


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1 affect, authorize any waiver of, or establish any exception 

2 to, the requirement under the preceding sentence. 

3 (c) IMPLEMENTATION.—The Administrator of the Fed4 eral Emergency Management Agency shall implement this 

5 section and the amendments made by this section in a man6 ner that will not materially weaken the financial position 

7 of the national flood insurance program or increase the risk 

8 of financial liability to Federal taxpayers. 

9 SEC. 10. TREATMENT OF CERTAIN FLOOD PROTECTION 

10 PROJECTS. 

11 Section 1308 of the National Flood Insurance Act of 

12 1968 (42 U.S.C. 4015), as amended by the preceding provi13 sions of this Act, is further amended by adding at the end 

14 the following new subsection: 

15 ‘‘(h) TREATMENT OF CERTAIN FLOOD PROTECTION

16 PROJECTS.— 

17 ‘‘(1) INAPPLICABILITY OF MANDATORY PURCHASE

18 REQUIREMENT; PREMIUM RATES.—Notwithstanding 

19 any other provision of law, upon full completion, as 

20 designed, of a flood protection system that was in21 tended to provide flood protection with respect to a 

22 covered area, such covered area— 

23 ‘‘(A) shall not be considered to be an area 

24 having special flood hazards for purposes of this 

25 Act or subsections (a), (b), or (e) of section 102, 


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1 or section 202(a) of the Flood Disaster Protection 

2 Act of 1973; and 

3 ‘‘(B) shall be eligible for flood insurance 

4 under this Act, if and to the extent that such 

5 area is eligible for such insurance under the 

6 other provisions of this Act, at premium rates 

7 not exceeding those that would be applicable 

8 under this section if the flood protection system 

9 referred to in paragraph (2) for such area had 

10 been completed and accredited as providing pro11 tection from floods at the level that the system 

12 was designed to provide (before construction, re13 construction, or improvement of the system, as 

14 applicable, began). 

15 The flood insurance rate maps shall indicate, for each 

16 covered area, the status of the area under subpara17 graphs (A) and (B). 

18 ‘‘(2) COVERED AREA.—For purposes of this sub19 section, a covered area is an area that was intended 

20 to be protected by a flood protection system— 

21 ‘‘(A)(i) for which, as of April 15, 2010— 

22 ‘‘(I) construction, reconstruction, or 

23 improvement has not been completed; 

24 ‘‘(II) adequate progress, within the 

25 meaning of section 1307(e), has been made 


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1 on such construction, reconstruction, or im2 provement; and 

3 ‘‘(III) is in an area having special 

4 flood hazards; or 

5 ‘‘(ii) for which, as of such date— 

6 ‘‘(I) construction, reconstruction, or 

7 improvement has been completed; 

8 ‘‘(II) a determination regarding ac9 creditation has not been made; and 

10 ‘‘(III) is in an area having special 

11 flood hazards; 

12 ‘‘(B) that was designed to provide protec13 tion for at least the 100-year frequency flood; 

14 and 

15 ‘‘(C) that has been determined, pursuant to 

16 waterflow data or other scientific information of 

17 a Federal agency obtained after, or that has 

18 changed since, commencement of construction, re19 construction, or improvement, will not provide 

20 protection from floods at the level referred to in 

21 subparagraph (B).’’. 


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1 SEC. 11. NOTIFICATION TO HOMEOWNERS REGARDING 

2 MANDATORY PURCHASE REQUIREMENT AP3 PLICABILITY AND RATE PHASE-INS. 

4 Section 201 of the Flood Disaster Protection Act of 

5 1973 (42 U.S.C. 4105) is amended by adding at the end 

6 the following new subsection: 

7 ‘‘(f) ANNUAL NOTIFICATION.—The Director, in con8 sultation with affected communities, shall establish and 

9 carry out a plan to notify residents of areas having special 

10 flood hazards, on an annual basis— 

11 ‘‘(1) that they reside in such an area; 

12 ‘‘(2) of the geographical boundaries of such area; 

13 ‘‘(3) of whether section 1308(h) of the National 

14 Flood Insurance Act of 1968 applies to properties 

15 within such area; and 

16 ‘‘(4) of the provisions of section 102 requiring 

17 purchase of flood insurance coverage for properties lo18 cated in such an area, including the date on which 

19 such provisions apply with respect to such area, tak20 ing into consideration section 102(i); and 

21 ‘‘(5) of a general estimate of what similar home22 owners in similar areas typically pay for flood insur23 ance coverage, taking into consideration section 

24 1308(g) of the National Flood Insurance Act of 

25 1968;’’. 


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1 SEC. 12. COVERAGE FOR ADDITIONAL LIVING EXPENSES 

2 AND BUSINESS INTERRUPTION. 

3 Subsection (b) of section 1306 of the National Flood 

4 Insurance Act of 1968 (42 U.S.C. 4013) is amended— 

5 (1) in paragraph (4), by striking ‘‘and’’ at the 

6 end; 

7 (2) in paragraph (5)— 

8 (A) by inserting ‘‘pursuant to paragraph 

9 (2), (3), or (4)’’ after ‘‘any flood insurance cov10 erage’’; and 

11 (B) by striking the period at the end and 

12 inserting a semicolon; and 

13 (3) by adding at the end the following new para14 graphs: 

15 ‘‘(6) in the case of any residential property, each 

16 renewal or new contract for flood insurance coverage 

17 shall provide not less than $1,000 aggregate liability 

18 per dwelling unit for any necessary increases in liv19 ing expenses incurred by the insured when losses from 

20 a flood make the residence unfit to live in, which cov21 erage shall be available only at chargeable rates that 

22 are not less than the estimated premium rates for 

23 such coverage determined in accordance with section 

24 1307(a)(1); 

25 ‘‘(7) in the case of any residential property, op26 tional coverage for additional living expenses deVerDate Mar 15 2010 23:20 May 26, 2010 Jkt 089200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6203 E:\BILLS\H5114.RH H5114

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1 scribed in paragraph (6) shall be made available to 

2 every insured upon renewal and every applicant in 

3 excess of the limits provided in paragraph (6) in such 

4 amounts and at such rates as the Director shall estab5 lish, except that such chargeable rates shall not be less 

6 than the estimated premium rates for such coverage 

7 determined in accordance with section 1307(a)(1); 

8 and 

9 ‘‘(8) in the case of any commercial property or 

10 other residential property, including multifamily 

11 rental property, optional coverage for losses resulting 

12 from any partial or total interruption of the insured’s 

13 business caused by damage to, or loss of, such prop14 erty from a flood shall be made available to every in15 sured upon renewal and every applicant, except 

16 that— 

17 ‘‘(A) the Director may provide such cov18 erage under such terms, conditions, and require19 ments as the Director considers appropriate to 

20 meet the needs of small businesses while com21 plying with the requirement under subparagraph 

22 (C); and 

23 ‘‘(B) any such coverage shall be made avail24 able only at chargeable rates that are not less 

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1 erage determined in accordance with section 

2 1307(a)(1).’’. 

3 SEC. 13. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE 

4 DATE OF POLICIES. 

5 Section 1306(c)(2)(A) of the National Flood Insurance 

6 Act of 1968 (42 U.S.C. 4013(c)(2)(A)) is amended by insert7 ing before the semicolon the following: ‘‘or is in connection 

8 with the purchase or other transfer of the property for which 

9 the coverage is provided (regardless of whether a loan is 

10 involved in the purchase or transfer transaction), but only 

11 when such initial purchase of coverage is made not later 

12 30 days after such making, increasing, extension, or re13 newal of the loan or not later than 30 days after such pur14 chase or other transfer of the property, as applicable’’. 

15 SEC. 14. MINIMUM DEDUCTIBLES FOR CLAIMS. 

16 Section 1312 of the National Flood Insurance Act of 

17 1968 (42 U.S.C. 4019) is amended— 

18 (1) by striking ‘‘The Director is’’ and inserting 

19 the following: ‘‘(a) IN GENERAL.—The Director is’’; 

20 and 

21 (2) by adding at the end the following: 

22 ‘‘(b) MINIMUM ANNUAL DEDUCTIBLES.— 

23 ‘‘(1) PRE-FIRM PROPERTIES.—For any struc24 ture that is covered by flood insurance under this 

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1 provement occurred on or before December 31, 1974, 

2 or before the effective date of an initial flood insur3 ance rate map published by the Director under sec4 tion 1360 for the area in which such structure is lo5 cated, the minimum annual deductible for damage to 

6 or loss of such structure shall be— 

7 ‘‘(A) $1,500, if the flood insurance coverage 

8 for such structure covers loss of, or physical dam9 age to, such structure in an amount equal to or 

10 less than $100,000; and 

11 ‘‘(B) $2,000, if the flood insurance coverage 

12 for such structure covers loss of, or physical dam13 age to, such structure in an amount greater than 

14 $100,000. 

15 ‘‘(2) POST-FIRM PROPERTIES.—For any struc16 ture that is covered by flood insurance under this 

17 title, and on which construction or substantial im18 provement occurred after December 31, 1974, or after 

19 the effective date of an initial flood insurance rate 

20 map published by the Director under section 1360 for 

21 the area in which such structure is located, the min22 imum annual deductible for damage to or loss of such 

23 structure shall be— 

24 ‘‘(A) $750, if the flood insurance coverage 

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1 age to, such structure in an amount equal to or 

2 less than $100,000; and 

3 ‘‘(B) $1,000, if the flood insurance coverage 

4 for such structure covers loss of, or physical dam5 age to, such structure in an amount greater than 

6 $100,000.’’. 

7 SEC. 15. PAYMENT OF PREMIUMS IN INSTALLMENTS FOR 

8 LOW-INCOME POLICYHOLDERS. 

9 Section 1306 of the National Flood Insurance Act of 

10 1968 (42 U.S.C. 4013) is amended by adding at the end 

11 the following new subsection: 

12 ‘‘(d) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR

13 LOW-INCOME POLICYHOLDERS.—In addition to any other 

14 terms and conditions under subsection (a), such regulations 

15 shall provide that, in the case of any residential property 

16 that is owned by a family whose income level is at or below 

17 200 percent of the poverty line (as defined by the Office 

18 of Management and Budget, and revised annually in ac19 cordance with section 673 of the Omnibus Budget Reconcili20 ation Act of 1981 (42 U.S.C. 9902)) applicable to the size 

21 of such family, or a family that has no adult member who 

22 is employed, premiums for flood insurance coverage for such 

23 property may be paid in monthly installments.’’. 


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1 SEC. 16. ENFORCEMENT. 

2 Section 102(f) of the Flood Disaster Protection Act of 

3 1973 (42 U.S.C. 4012a(f)) is amended— 

4 (1) in paragraph (2)— 

5 (A) in subparagraph (A)(iii), by striking 

6 ‘‘or’’ at the end; 

7 (B) in subparagraph (B), by striking the 

8 period at the end and inserting ‘‘; or’’; and 

9 (C) by adding at the end the following new 

10 subparagraph: 

11 ‘‘(C) in connection with the making, in12 creasing, extending, servicing, or renewing of 

13 any loan, requiring the purchase of flood insur14 ance coverage under the National Flood Insur15 ance Act of 1968, or purchasing such coverage 

16 pursuant to subsection (e)(2), in an amount in 

17 excess of the minimum amount required under 

18 subsections (a) and (b) of this section.’’; 

19 (2) in paragraph (5)— 

20 (A) in the first sentence, by striking ‘‘$350’’ 

21 and inserting ‘‘$2,000’’; and 

22 (B) in the last sentence, by striking 

23 ‘‘$100,000’’ and inserting ‘‘$1,000,000; except 

24 that such limitation shall not apply to a regu25 lated lending institution or enterprise for a cal26 endar year if, in any three (or more) of the five 


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1 calendar years immediately preceding such cal2 endar year, the total amount of penalties as3 sessed under this subsection against such lending 

4 institution or enterprise was $1,000,000’’; and 

5 (3) in paragraph (6), by adding after the period 

6 at the end the following: ‘‘No penalty may be imposed 

7 under this subsection on a regulated lending institu8 tion or enterprise that has made a good faith effort 

9 to comply with the requirements of the provisions re10 ferred to in paragraph (2) or for any non-material 

11 violation of such requirements.’’. 

12 SEC. 17. NOTIFICATION TO TENANTS OF AVAILABILITY OF 

13 CONTENTS INSURANCE. 

14 The National Flood Insurance Act of 1968 is amended 

15 by inserting after section 1308 (42 U.S.C. 4015) the fol16 lowing new section: 

17 ‘‘SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY 

18 OF CONTENTS INSURANCE. 

19 ‘‘(a) IN GENERAL.—The Director shall, upon entering 

20 into a contract for flood insurance coverage under this title 

21 for any property— 

22 ‘‘(1) provide to the insured sufficient copies of 

23 the notice developed pursuant to subsection (b); and 

24 ‘‘(2) require the insured to provide a copy of the 

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1 mation under subsection (b) in the manner that the 

2 manager or landlord deems most appropriate, to each 

3 such tenant and to each new tenant upon commence4 ment of such a tenancy. 

5 ‘‘(b) NOTICE.—Notice to a tenant of a property in ac6 cordance with this subsection is written notice that clearly 

7 informs a tenant— 

8 ‘‘(1) whether the property is located in an area 

9 having special flood hazards; 

10 ‘‘(2) that flood insurance coverage is available 

11 under the national flood insurance program under 

12 this title for contents of the unit or structure leased 

13 by the tenant; 

14 ‘‘(3) of the maximum amount of such coverage 

15 for contents available under this title at that time; 

16 and 

17 ‘‘(4) of where to obtain information regarding 

18 how to obtain such coverage, including a telephone 

19 number, mailing address, and Internet site of the Di20 rector where such information is available.’’. 

21 SEC. 18. FLOOD INSURANCE OUTREACH. 

22 Chapter I of the National Flood Insurance Act of 1968 

23 (42 U.S.C. 4011 et seq.), as amended by the preceding pro24 visions of this Act, is further amended by adding at the 

25 end the following new section: 


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1 ‘‘SEC. 1326. GRANTS FOR OUTREACH TO PROPERTY OWNERS 

2 AND RENTERS. 

3 ‘‘(a) IN GENERAL.—The Director may, to the extent 

4 amounts are made available pursuant to subsection (h), 

5 make grants to local governmental agencies responsible for 

6 floodplain management activities (including such agencies 

7 of Indians tribes, as such term is defined in section 4 of 

8 the Native American Housing Assistance and Self-Deter9 mination Act of 1996 (25 U.S.C. 4103)) in communities 

10 that participate in the national flood insurance program 

11 under this title, for use by such agencies to carry out out12 reach activities to encourage and facilitate the purchase of 

13 flood insurance protection under this Act by owners and 

14 renters of properties in such communities and to promote 

15 educational activities that increase awareness of flood risk 

16 reduction. 

17 ‘‘(b) OUTREACH ACTIVITIES.—Amounts from a grant 

18 under this section shall be used only for activities designed 

19 to— 

20 ‘‘(1) identify owners and renters of properties in 

21 communities that participate in the national flood in22 surance program, including owners of residential and 

23 commercial properties; 

24 ‘‘(2) notify such owners and renters when their 

25 properties become included in, or when they are ex26 cluded from, an area having special flood hazards 


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1 and the effect of such inclusion or exclusion on the ap2 plicability of the mandatory flood insurance purchase 

3 requirement under section 102 of the Flood Disaster 

4 Protection Act of 1973 (42 U.S.C. 4012a) to such 

5 properties; 

6 ‘‘(3) educate such owners and renters regarding 

7 the flood risk and reduction of this risk in their com8 munity, including the continued flood risks to areas 

9 that are no longer subject to the flood insurance man10 datory purchase requirement; 

11 ‘‘(4) educate such owners and renters regarding 

12 the benefits and costs of maintaining or acquiring 

13 flood insurance, including, where applicable, lower14 cost preferred risk policies under this title for such 

15 properties and the contents of such properties; and 

16 ‘‘(5) encouraging such owners and renters to 

17 maintain or acquire such coverage. 

18 ‘‘(c) COST SHARING REQUIREMENT.— 

19 ‘‘(1) IN GENERAL.—In any fiscal year, the Di20 rector may not provide a grant under this section to 

21 a local governmental agency in an amount exceeding 

22 3 times the amount that the agency certifies, as the 

23 Director shall require, that the agency will contribute 

24 from non-Federal funds to be used with grant 


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1 amounts only for carrying out activities described in 

2 subsection (b). 

3 ‘‘(2) NON-FEDERAL FUNDS.—For purposes of 

4 this subsection, the term ‘non-Federal funds’ includes 

5 State or local government agency amounts, in-kind 

6 contributions, any salary paid to staff to carry out 

7 the eligible activities of the grant recipient, the value 

8 of the time and services contributed by volunteers to 

9 carry out such services (at a rate determined by the 

10 Director), and the value of any donated material or 

11 building and the value of any lease on a building. 

12 ‘‘(d) ADMINISTRATIVE COST LIMITATION.—Notwith13 standing subsection (b), the Director may use not more than 

14 5 percent of amounts made available under subsection (g) 

15 to cover salaries, expenses, and other administrative costs 

16 incurred by the Director in making grants and provide as17 sistance under this section. 

18 ‘‘(e) APPLICATION AND SELECTION.— 

19 ‘‘(1) IN GENERAL.—The Director shall provide 

20 for local governmental agencies described in sub21 section (a) to submit applications for grants under 

22 this section and for competitive selection, based on 

23 criteria established by the Director, of agencies sub24 mitting such applications to receive such grants. 


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1 ‘‘(2) SELECTION CONSIDERATIONS.—In selecting 

2 applications of local government agencies to receive 

3 grants under paragraph (1), the Director shall con4 sider— 

5 ‘‘(A) the existence of a cooperative technical 

6 partner agreement between the local govern7 mental agency and the Federal Emergency Man8 agement Agency; 

9 ‘‘(B) the history of flood losses in the rel10 evant area that have occurred to properties, both 

11 inside and outside the special flood hazards 

12 zones, which are not covered by flood insurance 

13 coverage; 

14 ‘‘(C) the estimated percentage of high-risk 

15 properties located in the relevant area that are 

16 not covered by flood insurance; 

17 ‘‘(D) demonstrated success of the local gov18 ernmental agency in generating voluntary pur19 chase of flood insurance; and 

20 ‘‘(E) demonstrated technical capacity of the 

21 local governmental agency for outreach to indi22 vidual property owners. 

23 ‘‘(f) DIRECT OUTREACH BY FEMA.—In each fiscal 

24 year that amounts for grants are made available pursuant 

25 to subsection (h), the Director may use not more than 50 


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1 percent of such amounts to carry out, and to enter into con2 tracts with other entities to carry out, activities described 

3 in subsection (b) in areas that the Director determines have 

4 the most immediate need for such activities. 

5 ‘‘(g) REPORTING.—Each local government agency that 

6 receives a grant under this section, and each entity that 

7 receives amounts pursuant to subsection (f), shall submit 

8 a report to the Director, not later than 12 months after such 

9 amounts are first received, which shall include such infor10 mation as the Director considers appropriate to describe the 

11 activities conducted using such amounts and the effect of 

12 such activities on the retention or acquisition of flood insur13 ance coverage. 

14 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is 

15 authorized to be appropriated for grants under this section 

16 $50,000,000 for each of fiscal years 2011 through 2015.’’. 

17 SEC. 19. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 

18 AND ESCROW IN RESPA GOOD FAITH ESTI19 MATE. 

20 Subsection (c) of section 5 of the Real Estate Settle21 ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is amend22 ed by adding at the end the following new sentence: ‘‘Each 

23 such good faith estimate shall include the following con24 spicuous statements and information: (1) that flood insur25 ance coverage for residential real estate is generally availVerDate Mar 15 2010 23:20 May 26, 2010 Jkt 089200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6203 E:\BILLS\H5114.RH H5114

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1 able under the national flood insurance program whether 

2 or not the real estate is located in an area having special 

3 flood hazards and that, to obtain such coverage, a home 

4 owner or purchaser should contact the national flood insur5 ance program; (2) a telephone number and a location on 

6 the Internet by which a home owner or purchaser can con7 tact the national flood insurance program; and (3) that the 

8 escrowing of flood insurance payments is required for many 

9 loans under section 102(d) of the Flood Disaster Protection 

10 Act of 1973, and may be a convenient and available option 

11 with respect to other loans.’’. 

12 SEC. 20. AUTHORIZATION OF ADDITIONAL FEMA STAFF. 

13 Notwithstanding any other provision of law, the Direc14 tor of the Federal Emergency Management Agency may em15 ploy such additional staff as may be necessary to carry out 

16 all of the responsibilities of the Director pursuant to this 

17 Act and the amendments made by this Act. There are au18 thorized to be appropriated to Director such sums as may 

19 be necessary for costs of employing such additional staff. 

20 SEC. 21. PLAN TO VERIFY MAINTENANCE OF FLOOD INSUR21 ANCE ON MISSISSIPPI AND LOUISIANA PROP22 ERTIES RECEIVING EMERGENCY SUPPLE23 MENTAL FUNDS. 

24 The Secretary of Housing and Urban Development 

25 and the Director of the Federal Emergency Management 


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1 Agency shall jointly develop and implement a plan to verify 

2 that persons receiving funds under the Homeowner Grant 

3 Assistance Program of the State of Mississippi or the Road 

4 Home Program of the State of Louisiana from amounts al5 located to the State of Mississippi or the State of Louisiana, 

6 respectively, from the Community development fund under 

7 the Emergency Supplemental Appropriations Act to Ad8 dress Hurricanes in the Gulf of Mexico and Pandemic In9 fluenza, 2006 (Public Law 109–148) are maintaining flood 

10 insurance on the property for which such persons receive 

11 such funds as required by each such Program. 

12 SEC. 22. FLOOD INSURANCE ADVOCATE. 

13 Chapter II of the National Flood Insurance Act of 

14 1968 is amended by inserting after section 1330 (42 U.S.C. 

15 4041) the following new section: 

16 ‘‘SEC. 1330A. OFFICE OF THE FLOOD INSURANCE ADVO17 CATE. 

18 ‘‘(a) ESTABLISHMENT OF POSITION.— 

19 ‘‘(1) IN GENERAL.—There shall be in the Federal 

20 Emergency Management Agency an Office of the 

21 Flood Insurance Advocate which shall be headed by 

22 the National Flood Insurance Advocate. The National 

23 Flood Insurance Advocate shall report directly to the 

24 Director and shall, to the extent amounts are pro25 vided pursuant to subsection (f), be compensated at 


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1 the same rate as the highest rate of basic pay estab2 lished for the Senior Executive Service under section 

3 5382 of title 5, United States Code, or, if the Director 

4 so determines, at a rate fixed under section 9503 of 

5 such title. 

6 ‘‘(2) APPOINTMENT.—The National Flood Insur7 ance Advocate shall be appointed by the Director, and 

8 without regard to the provisions of title 5, United 

9 States Code, relating to appointments in the competi10 tive service or the Senior Executive Service. 

11 ‘‘(3) QUALIFICATIONS.—An individual ap12 pointed under paragraph (2) shall have a background 

13 in customer service as well as insurance. 

14 ‘‘(4) STAFF.—To the extent amounts are pro15 vided pursuant to subsection (f), the National Flood 

16 Insurance Advocate may employ such personnel as 

17 may be necessary to carry out the duties of the Office. 

18 ‘‘(b) FUNCTIONS OF OFFICE.— 

19 ‘‘(1) IN GENERAL.—It shall be the function of the 

20 Office of the Flood Insurance Advocate to— 

21 ‘‘(A) assist insureds under the national 

22 flood insurance program in resolving problems 

23 with the Federal Emergency Management Agen24 cy relating to such program; 


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1 ‘‘(B) identify areas in which such insureds 

2 have problems in dealings with the Agency relat3 ing to such program; 

4 ‘‘(C) identify potential legislative, adminis5 trative, or regulatory changes which may be ap6 propriate to mitigate such problems; and 

7 ‘‘(D) assist communities and homeowners 

8 with interpreting, implementing, and appealing 

9 floodplain maps and floodplain map determina10 tions. 

11 ‘‘(2) ANNUAL REPORTS.— 

12 ‘‘(A) ACTIVITIES.—Not later than December 

13 31 of each calendar year, the National Flood In14 surance Advocate shall report to the Committee 

15 on Financial Services of the House of Represent16 atives and the Committee on Banking, Housing, 

17 and Urban Affairs of the Senate on the activities 

18 of the Office of the Flood Insurance Advocate 

19 during the fiscal year ending during such cal20 endar year. Any such report shall contain full 

21 and substantive analysis, in addition to statis22 tical information, and shall— 

23 ‘‘(i) identify the initiatives the Office 

24 of the Flood Insurance Advocate has taken 

25 on improving services for insureds under 


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1 the national flood insurance program and 

2 responsiveness of the Federal Emergency 

3 Management Agency with respect to such 

4 program; 

5 ‘‘(ii) identify areas of the law or regu6 lations relating to the national flood insur7 ance program that impose significant com8 pliance burdens on such insureds or the 

9 Federal Emergency Management Agency, 

10 including specific recommendations for rem11 edying these problems; and 

12 ‘‘(iii) include such other information 

13 as the National Flood Insurance Advocate 

14 may deem advisable. 

15 ‘‘(B) DIRECT SUBMISSION OF REPORT.— 

16 Each report required under this paragraph shall 

17 be provided directly to the committees identified 

18 in subparagraph (A) without any prior review 

19 or comment from the Director, the Secretary of 

20 Homeland Security, or any other officer or em21 ployee of the Federal Emergency Management 

22 Agency or the Department of Homeland Secu23 rity, or the Office of Management and Budget. 

24 ‘‘(c) FUNDING.—Pursuant to section 1310(a)(4), the 

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1 ance Fund to fund the activities of the Office of the Flood 

2 Advocate in each of fiscal years 2011 through 2016, except 

3 that the amount so used in each such fiscal year may not 

4 exceed $5,000,000 and shall remain available until ex5 pended. Notwithstanding any other provision of this title, 

6 amounts made available pursuant to this subsection shall 

7 not be subject to offsetting collections through premium 

8 rates for flood insurance coverage under this title.’’. 

9 SEC. 23. ELIGIBILITY OF PROPERTY DEMOLITION AND RE10 BUILDING UNDER FLOOD MITIGATION AS11 SISTANCE PROGRAM. 

12 Section 1366(e)(5)(B) of the National Flood Insurance 

13 Act of 1968 (42 U.S.C. 4104c(e)(5)(B)) is amended by strik14 ing ‘‘or floodproofing’’ and inserting ‘‘floodproofing, or 

15 demolition and rebuilding’’. 

16 SEC. 24. STUDY REGARDING MANDATORY PURCHASE RE17 QUIREMENT FOR NON-FEDERALLY RELATED 

18 LOANS. 

19 (a) IN GENERAL.—The Comptroller General shall con20 duct a study to assess the impact, effectiveness, and feasi21 bility of, and basis under the Constitution of the United 

22 States for, amending the provisions of the Flood Disaster 

23 Protection Act of 1973 regarding the properties that are 

24 subject to the mandatory flood insurance coverage purchase 

25 requirements under such Act to extend such requirements 


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1 to any property that is located in any area having special 

2 flood hazards and which secures the repayment of a loan 

3 that is not described in paragraph (1), (2), or (3) of section 

4 102(b) of such Act, and shall determine how best to admin5 ister and enforce such a requirement, taking into consider6 ation other insurance purchase requirements under Federal 

7 and State law. 

8 (b) REPORT.—The Comptroller General shall submit 

9 a report to the Congress regarding the results and conclu10 sions of the study under subsection (a) not later than the 

11 expiration of the 6-month period beginning on the date of 

12 the enactment of this Act. 

13 SEC. 25. STUDY OF METHODS TO INCREASE FLOOD INSUR14 ANCE PROGRAM PARTICIPATION BY LOW-IN15 COME FAMILIES. 

16 (a) IN GENERAL.—The Comptroller General of the 

17 United States shall conduct a study to identify and analyze 

18 potential methods, practices, and incentives that would in19 crease the extent to which low-income families (as such term 

20 is defined in section 3(b) of the United States Housing Act 

21 of 1937 (42 U.S.C. 1437a(b))) that own residential prop22 erties located within areas having special flood hazards pur23 chase flood insurance coverage for such properties under the 

24 national flood insurance program. In conducting the study, 

25 the Comptroller General shall analyze the effectiveness and 


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1 costs of the various methods, practices, and incentives iden2 tified, including their effects on the national flood insurance 

3 program. 

4 (b) REPORT.—The Comptroller General shall submit 

5 to the Congress a report setting forth the conclusions of the 

6 study under this section not later than 12 months after the 

7 date of the enactment of this Act. 

8 SEC. 26. REPORT ON INCLUSION OF BUILDING CODES IN 

9 FLOODPLAIN MANAGEMENT CRITERIA. 

10 Not later than the expiration of the 6-month period 

11 beginning on the date of the enactment of this Act, the Ad12 ministrator of the Federal Emergency Management Agency 

13 shall conduct a study and submit a report to the Committee 

14 on Financial Services of the House of Representatives and 

15 the Committee on Banking, Housing, and Urban Affairs 

16 of the Senate regarding the impact, effectiveness, and feasi17 bility of amending section 1361 of the National Flood In18 surance Act of 1968 (42 U.S.C. 4102) to include widely used 

19 and nationally recognized building codes as part of the 

20 floodplain management criteria developed under such sec21 tion, and shall determine— 

22 (1) the regulatory, financial, and economic im23 pacts of such a building code requirement on home24 owners, States and local communities, local land use 


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1 policies, and the Federal Emergency Management 

2 Agency; 

3 (2) the resources required of State and local com4 munities to administer and enforce such a building 

5 code requirement; 

6 (3) the effectiveness of such a building code re7 quirement in reducing flood-related damage to build8 ings and contents; 

9 (4) the impact of such a building code require10 ment on the actuarial soundness of the National 

11 Flood Insurance Program; 

12 (5) the effectiveness of nationally recognized 

13 codes in allowing innovative materials and systems 

14 for flood-resistant construction; and 

15 (6) the feasibility and effectiveness of providing 

16 an incentive in lower premium rates for flood insur17 ance coverage under such Act for structures meeting 

18 whichever of such widely used and nationally recog19 nized building code or any applicable local building 

20 code provides greater protection from flood damage. 

21 SEC. 27. STUDY ON REPAYING FLOOD INSURANCE DEBT. 

22 Not later than the expiration of the 6-month period 

23 beginning on the date of the enactment of this Act, the Ad24 ministrator of the Federal Emergency Management Agency 

25 shall submit a report to the Congress setting forth a plan 


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1 for repaying within 10 years all amounts, including any 

2 amounts previously borrowed but not yet repaid, owed pur3 suant to clause (2) of subsection (a) of section 1309 of the 

4 National Flood Insurance Act of 1968 (42 U.S.C. 

5 4016(a)(2)). 

6 SEC. 28. STUDY REGARDING IMPACT OF RATE INCREASES 

7 ON PRE-FIRM PROPERTIES. 

8 (a) IN GENERAL.—The Comptroller General of the 

9 United States shall conduct a study to assess the impacts 

10 of implementing provisions regarding pre-FIRM properties 

11 (as such term is defined in section 578(b) of the National 

12 Flood Insurance Reform Act of 1994 (42 U.S.C. 4014)), in13 cluding the impact on the program participation rate 

14 among owners, renters, and tenants of non-primary resi15 dences or commercial nonresidential properties. In con16 ducting the study, the Comptroller General shall analyze 

17 the cost effectiveness and effect on local government tax base 

18 of various options, including an option of implementing 

19 such provisions on the severe repetitive loss properties only. 

20 (b) REPORT.—The Comptroller General shall submit 

21 a report to Congress regarding the results and conclusions 

22 of the study under subsection (a) not later than the expira23 tion of the 9-month period beginning on the date of enact24 ment of this Act. 


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46 

•HR 5114 RH

1 SEC. 29. STUDY OF EFFECTS OF ACT. 

2 (a) STUDY.—The Administrator of the Federal Emer3 gency Management Agency shall conduct a study to identify 

4 and assess the impacts, including short-term and long-term 

5 impacts, of this Act and the amendments made by this Act 

6 on the financial soundness of the national flood insurance 

7 program. 

8 (b) REPORT.—Not later than 12 months after the date 

9 of the enactment of this Act, the Administrator shall submit 

10 a report to the Congress setting forth the results and conclu11 sions of study under subsection (a), which shall include spe12 cific recommendations for actions to mitigate against any 

13 negative financial impacts resulting from this Act and the 

14 amendments made by this Act that could increase the debt 

15 of the national flood insurance program. 

16 SEC. 30. RULEMAKING. 

17 (a) INTERIM FINAL RULE.—The Administrator of the 

18 Federal Emergency Management Agency shall issue an in19 terim final rule as a temporary regulation implementing 

20 this Act and the amendments made by this Act as soon as 

21 practicable after the date of the enactment of this Act, with22 out regard to the provisions of chapter 5 of title 5, United 

23 States Code. All regulations prescribed under the authority 

24 of this subsection that are not earlier superseded by final 

25 regulations shall expire not later than one year after the 

26 date of the enactment of this Act. 


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47 

•HR 5114 RH

1 (b) INITIATION OF RULEMAKING.—The Administrator 

2 of the Federal Emergency Management Agency may initiate 

3 a rulemaking to implement this Act and the amendments 

4 made by this Act as soon as practicable after the date of 

5 the enactment of this Act. The final rule issued pursuant 

6 to such rulemaking may supersede the interim final rule 

7 promulgated under subsection (a). 


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Union Calendar No. 282 

111TH CONGRESS 

2D SESSION H. R. 5114 

[Report No. 111–495] 

A BILL 

To extend the authorization for the national flood 

program, and for other purposes. to reform and ongoing stable functioning of the insurance program, to identify priorities essential 

MAY 26, 2010 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


srobinson on DSKHWCL6B1PROD with BILLS