I 

110TH CONGRESS 

1ST SESSION H. R. 1682 

To restore the financial solvency of the national flood insurance program, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 26, 2007 

Mr. FRANK of Massachusetts (for himself, Mrs. BIGGERT, Mr. BLUMENAUER, 

Ms. WATERS, Mr. TAYLOR, Ms. MATSUI, Mr. MAHONEY of Florida, Ms. 

WASSERMAN SCHULTZ, Mr. BAKER, Mr. GARY G. MILLER of California, 

Mrs. JO ANN DAVIS of Virginia, and Ms. GINNY BROWN-WAITE of Florida) introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To restore the financial solvency of the national flood 

insurance program, and for other purposes. 

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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

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

5 ‘‘Flood Insurance Reform and Modernization Act of 

6 2007’’. 

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

8 this Act is as follows: 


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Sec. 1. Short title and table of contents. 

Sec. 2. Findings and purposes. 

Sec. 3. Study regarding status of pre-firm properties and mandatory purchase 

requirement for natural 100-year floodplain and non-federally 

related loans. 

Sec. 4. Phase-in of actuarial rates for nonresidential properties and non-primary residences. 

Sec. 5. Exception to waiting period for effective date of policies. 

Sec. 6. Enforcement. 

Sec. 7. Maximum coverage limits. 

Sec. 8. Coverage for additional living expenses, basement improvements, business interruption, and replacement cost of contents. 

Sec. 9. Notification to tenants of availability of contents insurance. 

Sec. 10. Increase in annual limitation on premium increases. 

Sec. 11. Increase in borrowing authority. 

Sec. 12. FEMA participation in State disaster claims mediation programs. 

Sec. 13. FEMA annual report on insurance program. 

Sec. 14. Flood insurance outreach grants. 

Sec. 15. Grants for direct funding of mitigation activities for individual repetitive claims properties. 

Sec. 16. Extension of pilot program for mitigation of severe repetitive loss properties. 

Sec. 17. Flood mitigation assistance program. 

Sec. 18. GAO study of methods to increase flood insurance program participation by low-income families. 

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

faith estimate. 

Sec. 20. Reiteration of FEMA responsibilities under 2004 Reform Act. 

Sec. 21. Ongoing modernization of flood maps and elevation standards. 

Sec. 22. Notification and appeal of map changes; notification of establishment 

of flood elevations. 

Sec. 23. Clarification of replacement cost provisions, forms, and policy language. 

Sec. 24. Authorization of additional FEMA staff. 

Sec. 25. Extension of deadline for filing proof of loss. 

1 SEC. 2. FINDINGS AND PURPOSES. 

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

3 (1) flooding has been shown to occur in all 50 

4 States, the District of Columbia, and in all terri5 tories and possessions of the United States; 

6 (2) the national flood insurance program 

7 (NFIP) is the only affordable and reliable source of 

8 insurance to protect against flood losses; 


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1 (3) the aggregate amount of the flood insurance 

2 claims resulting from Hurricane Katrina, Hurricane 

3 Rita, and other events has exceeded the aggregate 

4 amount of all claims previously paid in the history 

5 of the national flood insurance program, requiring a 

6 significant increase in the program’s borrowing au7 thority; 

8 (4) flood insurance policyholders have a legiti9 mate expectation that they will receive fair and time10 ly compensation for losses covered under their poli11 cies; 

12 (5) substantial flooding has occurred, and will 

13 likely occur again, outside the areas designated by 

14 the Federal Emergency Management Agency 

15 (FEMA) as high-risk flood hazard areas; 

16 (6) properties located in low- to moderate-risk 

17 areas are eligible to purchase flood insurance policies 

18 with premiums as low as $112 a year; 

19 (7) about 450,000 vacation homes, second 

20 homes, and commercial properties are subsidized 

21 and are not paying actuarially sound rates for flood 

22 insurance; 

23 (8) phasing out subsidies currently extended to 

24 vacation homes, second homes, and commercial 

25 properties would result in estimated average annual 


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1 savings to the taxpayers of the United States and 

2 the national flood insurance program of 

3 $335,000,000; 

4 (9) the maximum coverage limits for flood in5 surance policies should be increased to reflect infla6 tion and the increased cost of housing; 

7 (10) significant reforms to the national flood in8 surance program required in the Bunning-Bereuter9 Blumenauer Flood Insurance Reform Act of 2004 

10 have yet to be implemented; and 

11 (11) in addition to reforms required in the 

12 Bunning-Bereuter-Blumenauer Flood Insurance Re13 form Act of 2004, the national flood insurance pro14 gram requires a modernized and updated adminis15 trative model to ensure that the program is solvent 

16 and the people of the United States have continued 

17 access to flood insurance. 

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

19 (1) to protect the integrity of the national flood 

20 insurance program by fully funding existing legal ob21 ligations expected by existing policyholders who have 

22 paid policy premiums in return for flood insurance 

23 coverage and to pay debt service on funds borrowed 

24 by the NFIP; 


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1 (2) to increase incentives for homeowners and 

2 communities to participate in the national flood in3 surance program and to improve oversight to ensure 

4 better accountability of the NFIP and FEMA; and 

5 (3) to increase awareness of homeowners of 

6 flood risks and improve the quality of information 

7 regarding such risks provided to homeowners. 

8 SEC. 3. STUDY REGARDING STATUS OF PRE-FIRM PROP9 ERTIES AND MANDATORY PURCHASE RE10 QUIREMENT FOR NATURAL 100-YEAR FLOOD11 PLAIN AND NON-FEDERALLY RELATED 

12 LOANS. 

13 (a) IN GENERAL.—The Comptroller General shall 

14 conduct a study as follows: 

15 (1) PRE-FIRM PROPERTIES.—The study shall 

16 determine the status of the national flood insurance 

17 program, as of the date of the enactment of this Act, 

18 with respect to the provision of flood insurance cov19 erage for pre-FIRM properties (as such term is de20 fined in section 578(b) of the National Flood Insur21 ance Reform Act of 1994 (42 U.S.C. 4014 note)), 

22 which shall include determinations of— 

23 (A) the number of pre-FIRM properties 

24 for which coverage is provided and the extent of 

25 such coverage; 


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1 (B) the cost of providing coverage for such 

2 pre-FIRM properties to the national flood in3 surance program; 

4 (C) the anticipated rate at which such pre5 FIRM properties will cease to be covered under 

6 the program; and 

7 (D) the effects that implementation of the 

8 Bunning-Bereuter-Blumenauer Flood Insurance 

9 Reform Act of 2004 will have on the national 

10 flood insurance program generally and on cov11 erage of pre-FIRM properties under the pro12 gram. 

13 (2) MANDATORY PURCHASE REQUIREMENT FOR

14 NATURAL 100-YEAR FLOODPLAIN.—The study shall 

15 assess the impact, effectiveness, and feasibility of 

16 amending the provisions of the Flood Disaster Pro17 tection Act of 1973 regarding the properties that are 

18 subject to the mandatory flood insurance coverage 

19 purchase requirements under such Act to extend 

20 such requirements to properties located in any area 

21 that would be designated as an area having special 

22 flood hazards but for the existence of a structural 

23 flood protection system, and shall determine— 

24 (A) the regulatory, financial and economic 

25 impacts of extending such mandatory purchase 


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1 requirements on the costs of homeownership, 

2 the actuarial soundness of the national flood in3 surance program, the Federal Emergency Man4 agement Agency, local communities, insurance 

5 companies, and local land use; 

6 (B) the effectiveness of extending such 

7 mandatory purchase requirements in protecting 

8 homeowners from financial loss and in pro9 tecting the financial soundness of the national 

10 flood insurance program; and 

11 (C) any impact on lenders of complying 

12 with or enforcing such extended mandatory re13 quirements. 

14 (3) MANDATORY PURCHASE REQUIREMENT FOR

15 NON-FEDERALLY RELATED LOANS.—The study shall 

16 assess the impact, effectiveness, and feasibility of, 

17 and basis under the Constitution of the United 

18 States for, amending the provisions of the Flood 

19 Disaster Protection Act of 1973 regarding the prop20 erties that are subject to the mandatory flood insur21 ance coverage purchase requirements under such Act 

22 to extend such requirements to any property that is 

23 located in any area having special flood hazards and 

24 which secures the repayment of a loan that is not 

25 described in paragraph (1), (2), or (3) of section 


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1 102(b) of such Act, and shall determine how best to 

2 administer and enforce such a requirement, taking 

3 into consideration other insurance purchase require4 ments under Federal and State law. 

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

6 a report to the Congress regarding the results and conclu7 sions of the study under this subsection not later than the 

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

9 of the enactment of this Act. 

10 SEC. 4. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDEN11 TIAL PROPERTIES AND NON-PRIMARY RESI12 DENCES. 

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

14 Flood Insurance Act of 1968 (42 U.S.C. 4015(c)) is 

15 amended— 

16 (1) by redesignating paragraph (2) as para17 graph (4); and 

18 (2) by inserting after paragraph (1) the fol19 lowing new paragraphs: 

20 ‘‘(2) NONRESIDENTIAL PROPERTIES.—Any non21 residential property. 

22 ‘‘(3) NON-PRIMARY RESIDENCES.—Any residen23 tial property that is not the primary residence of an 

24 individual.’’. 


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

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

3 is amended— 

4 (1) in subsection (c)— 

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

6 by striking ‘‘the limitations provided under 

7 paragraphs (1) and (2)’’ and inserting ‘‘sub8 section (e)’’; and 

9 (B) in paragraph (1), by striking ‘‘, ex10 cept’’ and all that follows through ‘‘subsection 

11 (e)’’; and 

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

13 (2) or (3)’’ and inserting ‘‘paragraph (4)’’. 

14 (c) EFFECTIVE DATE AND TRANSITION.— 

15 (1) EFFECTIVE DATE.—The amendments made 

16 by subsections (a) and (b) shall apply beginning on 

17 January 1, 2011, except as provided in paragraph 

18 (2) of this subsection. 

19 (2) TRANSITION FOR PROPERTIES COVERED BY

20 FLOOD INSURANCE UPON EFFECTIVE DATE.— 

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

22 the case of any property described in paragraph 

23 (2) or (3) of section 1308(c) of the National 

24 Flood Insurance Act of 1968, as amended by 

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1 fective date under paragraph (1) of this sub2 section, is covered under a policy for flood in3 surance made available under the national flood 

4 insurance program for which the chargeable 

5 premium rates are less than the applicable esti6 mated risk premium rate under section 

7 1307(a)(1) for the area in which the property 

8 is located, the Director of the Federal Emer9 gency Management Agency shall increase the 

10 chargeable premium rates for such property 

11 over time to such applicable estimated risk pre12 mium rate under section 1307(a)(1). 

13 (B) ANNUAL INCREASE.—Such increase 

14 shall be made by increasing the chargeable pre15 mium rates for the property (after application 

16 of any increase in the premium rates otherwise 

17 applicable to such property) once during the 12- 

18 month period that begins upon the effective 

19 date under paragraph (1) of this subsection and 

20 once every 12 months thereafter until such in21 crease is accomplished, by the following amount 

22 (or such lesser amount as may be necessary so 

23 that the chargeable rate does not exceed such 

24 applicable estimated risk premium rate): 


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1 (i) NONRESIDENTIAL PROPERTIES.— 

2 In the case of any property described in 

3 such section 1308(c)(2), 20 percent. 

4 (ii) NON-PRIMARY RESIDENCES.—In 

5 the case of any property described in such 

6 section 1308(c)(3), 25 percent. 

7 (C) FULL ACTUARIAL RATES.— The provi8 sions of paragraphs (2) and (3) of such section 

9 1308(c) shall apply to such a property upon the 

10 accomplishment of the increase under this para11 graph and thereafter. 

12 SEC. 5. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE 

13 DATE OF POLICIES. 

14 Section 1306(c)(2)(A) of the National Flood Insur15 ance Act of 1968 (42 U.S.C. 4013(c)(2)(A)) is amended 

16 by inserting before the semicolon the following: ‘‘or is in 

17 connection with the purchase or other transfer of the prop18 erty for which the coverage is provided (regardless of 

19 whether a loan is involved in the purchase or transfer 

20 transaction), but only when such initial purchase of cov21 erage is made not later 30 days after such making, in22 creasing, extension, or renewal of the loan or not later 

23 than 30 days after such purchase or other transfer of the 

24 property, as applicable’’. 


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1 SEC. 6. ENFORCEMENT. 

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

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

4 (1) in paragraph (5)— 

5 (A) in the first sentence, by striking 

6 ‘‘$350’’ and inserting ‘‘$2,000’’; and 

7 (B) in the last sentence, by striking 

8 ‘‘$100,000’’ and inserting ‘‘$1,000,000; except 

9 that such limitation shall not apply to a regu10 lated lending institution or enterprise for a cal11 endar year if, in any three (or more) of the five 

12 calendar years immediately preceding such cal13 endar year, the total amount of penalties as14 sessed under this subsection against such lend15 ing institution or enterprise was $1,000,000’’; 

16 and 

17 (2) in paragraph (6), by adding after the period 

18 at the end the following: ‘‘No penalty may be im19 posed under this subsection on a regulated lending 

20 institution or enterprise that has made a good faith 

21 effort to comply with the requirements of the provi22 sions referred to in paragraph (2) or for any non23 material violation of such requirements.’’. 

24 SEC. 7. MAXIMUM COVERAGE LIMITS. 

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

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


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

2 and inserting ‘‘$335,000’’; 

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

4 and inserting ‘‘$135,000’’; and 

5 (3) in paragraph (4), by striking ‘‘$500,000’’ 

6 each place such term appears and inserting 

7 ‘‘$670,000’’. 

8 SEC. 8. COVERAGE FOR ADDITIONAL LIVING EXPENSES, 

9 BASEMENT IMPROVEMENTS, BUSINESS 

10 INTERRUPTION, AND REPLACEMENT COST 

11 OF CONTENTS. 

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

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

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

15 end; 

16 (2) in paragraph (5)— 

17 (A) by inserting ‘‘pursuant to paragraph 

18 (2), (3), or (4)’’ after ‘‘any flood insurance cov19 erage’’; and 

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

21 inserting a semicolon; and 

22 (3) by adding at the end the following new 

23 paragraphs: 

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

25 each renewal or new contract for flood insurance 


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1 coverage shall provide not less than $1,000 aggre2 gate liability per dwelling unit for any necessary in3 creases in living expenses incurred by the insured 

4 when losses from a flood make the residence unfit to 

5 live in, which coverage shall be available only at 

6 chargeable rates that are not less than the estimated 

7 premium rates for such coverage determined in ac8 cordance with section 1307(a)(1); 

9 ‘‘(7) in the case of any residential property, op10 tional coverage for additional living expenses de11 scribed in paragraph (6) shall be made available to 

12 every insured upon renewal and every applicant in 

13 excess of the limits provided in paragraph (6) in 

14 such amounts and at such rates as the Director 

15 shall establish, except that such chargeable rates 

16 shall not be less than the estimated premium rates 

17 for such coverage determined in accordance with sec18 tion 1307(a)(1); 

19 ‘‘(8) in the case of any residential property, op20 tional coverage for losses, resulting from floods, to 

21 improvements and personal property located in base22 ments, crawl spaces, and other enclosed areas under 

23 buildings that are not covered by primary flood in24 surance coverage under this title, shall be made 

25 available to every insured upon renewal and every 


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1 applicant, except that such coverage shall be made 

2 available only at chargeable rates that are not less 

3 than the estimated premium rates for such coverage 

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

5 ‘‘(9) in the case of any commercial property, 

6 optional coverage for losses resulting from any par7 tial or total interruption of the insured’s business 

8 caused by damage to, or loss of, such property from 

9 a flood shall be made available to every insured upon 

10 renewal and every applicant, except that— 

11 ‘‘(A) for purposes of such coverage, losses 

12 shall be determined based on the profits the 

13 covered business would have earned, based on 

14 previous financial records, had the flood not oc15 curred; and 

16 ‘‘(B) such coverage shall be made available 

17 only at chargeable rates that are not less than 

18 the estimated premium rates for such coverage 

19 determined in accordance with section 

20 1307(a)(1); and 

21 ‘‘(10) in the case of any residential property 

22 and any commercial property, optional coverage for 

23 the full replacement costs of any contents related to 

24 the structure that exceed the limits of coverage oth25 erwise provided in this subsection shall be made 


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1 available to every insured upon renewal and every 

2 applicant, except that such coverage shall be made 

3 available only at chargeable rates that are not less 

4 than the estimated premium rates for such coverage 

5 determined in accordance with section 1307(a)(1).’’. 

6 SEC. 9. NOTIFICATION TO TENANTS OF AVAILABILITY OF 

7 CONTENTS INSURANCE. 

8 The National Flood Insurance Act of 1968 is amend9 ed by inserting after section 1308 (42 U.S.C. 4015) the 

10 following new section: 

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

12 OF CONTENTS INSURANCE. 

13 ‘‘(a) IN GENERAL.—The Director shall, upon enter14 ing into a contract for flood insurance coverage under this 

15 title for any property located in an area having special 

16 flood hazards— 

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

18 the notice developed pursuant to subsection (b) to 

19 provide for distribution of a copy of such notice to 

20 each tenant of the property; and 

21 ‘‘(2) strongly encourage the insured to provide 

22 a copy to each such tenant and to each new tenant 

23 upon commencement of such a tenancy. 


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1 ‘‘(b) NOTICE.—Notice to a tenant of a property in 

2 accordance with this subsection is written notice that 

3 clearly informs a tenant— 

4 ‘‘(1) that the property is located in an area hav5 ing special flood hazards; 

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

7 under the national flood insurance program under 

8 this title for contents of the unit or structure leased 

9 by the tenant; 

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

11 for contents available under this title at that time; 

12 and 

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

14 how to obtain such coverage, including a telephone 

15 number, mailing address, and location on the World 

16 Wide Web of the Director where such information is 

17 available.’’. 

18 SEC. 10. INCREASE IN ANNUAL LIMITATION ON PREMIUM 

19 INCREASES. 

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

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

22 percent’’ and inserting ‘‘15 percent’’. 

23 SEC. 11. INCREASE IN BORROWING AUTHORITY. 

24 (a) BORROWING AUTHORITY.—The first sentence of 

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1 surance Act of 1968 (42 U.S.C. 4016(a)), as amended by 

2 the National Flood Insurance Program Further Enhanced 

3 Borrowing Authority Act of 2005 (Public Law 109–106; 

4 119 Stat. 2288), is amended by striking 

5 ‘‘$20,775,000,000’’ and inserting ‘‘$21,500,000,000’’. 

6 (b) FEMA REPORT.—Not later than the expiration 

7 of the 6-month period beginning on the date of the enact8 ment of this Act, the Director of the Federal Emergency 

9 Management Agency shall submit a report to the Congress 

10 setting forth a plan for repaying any amounts borrowed 

11 pursuant to increase in borrowing authority authorized 

12 under the amendments made by subsection (a). 

13 SEC. 12. FEMA PARTICIPATION IN STATE DISASTER CLAIMS 

14 MEDIATION PROGRAMS. 

15 The National Flood Insurance Act of 1968 is amend16 ed by inserting after section 1313 (42 U.S.C. 4020) the 

17 following new section: 

18 ‘‘SEC. 1314. FEMA PARTICIPATION IN STATE DISASTER 

19 CLAIMS MEDIATION PROGRAMS. 

20 ‘‘(a) REQUIREMENT TO PARTICIPATE.—In the case 

21 of the occurrence of a natural catastrophe that may have 

22 resulted in flood damage covered by insurance made avail23 able under the national flood insurance program and a loss 

24 covered by personal lines residential property insurance 

25 policy, upon request made by the insurance commissioner 


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1 of a State (or such other official responsible for regulating 

2 the business of insurance in the State) for the participa3 tion of representatives of the Director in a program spon4 sored by such State for nonbinding mediation of insurance 

5 claims resulting from a natural catastrophe, the Director 

6 shall cause such representatives to participate in such 

7 State program, when claims under the national flood in8 surance program are involved, to expedite settlement of 

9 flood damage claims resulting from such catastrophe. 

10 ‘‘(b) EXTENT OF PARTICIPATION.—Participation by 

11 representatives of the Director required under subsection 

12 (a) with respect to flood damage claims resulting from a 

13 natural catastrophe shall include— 

14 ‘‘(1) providing adjusters certified for purposes 

15 of the national flood insurance program who are au16 thorized to settle claims against such program re17 sulting from such catastrophe in amounts up to the 

18 limits of policies under such program; 

19 ‘‘(2) requiring such adjusters to attend State20 sponsored mediation meetings regarding flood insur21 ance claims resulting from such catastrophe at times 

22 and places as may be arranged by the State; 

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1 holders of coverage made available under the na2 tional flood insurance program; and 

3 ‘‘(4) finalizing the settlement of such claims on 

4 behalf of the national flood insurance program with 

5 such policyholders. 

6 ‘‘(c) COORDINATION.—Representatives of the Direc7 tor who participate pursuant to this section in a State8 sponsored mediation program with respect to a natural ca9 tastrophe shall at all times coordinate their activities with 

10 insurance officials of the State and representatives of in11 surers for the purpose of consolidating and expediting the 

12 settlement of claims under the national flood insurance 

13 program resulting from such catastrophe at the earliest 

14 possible time. 

15 ‘‘(d) MEDIATION PROCEEDINGS AND PRIVILEGED

16 DOCUMENTS.—As a condition of the participation of Rep17 resentatives of the Director pursuant to this section in 

18 State-sponsored mediation, all statements made and docu19 ments produced pursuant to such mediation involving rep20 resentatives of the Director shall be deemed privileged and 

21 confidential settlement negotiations made in anticipation 

22 of litigation. 

23 ‘‘(e) EFFECT OF PARTICIPATION ON LIABILITY, 

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1 sponsored mediation shall not affect or expand the liability 

2 of any party in contract or in tort, nor shall it affect the 

3 rights or obligations of the parties as provided in the 

4 Standard Flood Insurance Policy under the national flood 

5 insurance program, regulations of the Federal Emergency 

6 Management Agency, this Act, or Federal common law. 

7 ‘‘(f) EXCLUSIVE FEDERAL JURISDICTION.—Partici8 pation of Representatives of the Director pursuant to this 

9 section in State-sponsored mediation shall not alter, 

10 change or modify the original exclusive jurisdiction of 

11 United States courts as provided in this Act. 

12 ‘‘(g) COST LIMITATION.—Nothing in this section 

13 shall be construed to require the Director or representa14 tives of the Director to pay additional mediation fees relat15 ing to flood claims associated with a State-sponsored me16 diation program in which representatives of the Director 

17 participate. 

18 ‘‘(h) EXCEPTION.—In the case of the occurrence of 

19 a natural catastrophe that results in flood damage claims 

20 under the national flood insurance program and does not 

21 result in any loss covered by a personal lines residential 

22 property insurance policy— 

23 ‘‘(1) this section shall not apply; and 

24 ‘‘(2) the provisions of the Standard Flood In25 surance Policy under the national flood insurance 


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1 program and the appeals process established pursu2 ant to section 205 of the Bunning-Bereueter3 Blumenauer Flood Insurance Reform Act of 2004 

4 (Public Law 108–264; 118 Stat. 726) and regula5 tions issued pursuant to such section shall apply ex6 clusively. 

7 ‘‘(i) REPRESENTATIVES OF DIRECTOR.—For pur8 poses of this section, the term ‘representatives of the Di9 rector’ means representatives of the national flood insur10 ance program who participate in the appeals process es11 tablished pursuant to section 205 of the Bunning12 Bereueter-Blumenauer Flood Insurance Reform Act of 

13 2004 (Public Law 108–264; 118 Stat. 726) and regula14 tions issued pursuant to such section.’’. 

15 SEC. 13. FEMA ANNUAL REPORT ON INSURANCE PROGRAM. 

16 Section 1320 of the National Flood Insurance Act of 

17 1968 (42 U.S.C. 4027) is amended— 

18 (1) in the section heading, by striking ‘‘REPORT

19 TO THE PRESIDENT’’ and inserting ‘‘ANNUAL RE20 PORT TO CONGRESS’’ ; 

21 (2) in subsection (a)— 

22 (A) by striking ‘‘biennially’’; 

23 (B) by striking ‘‘the President for submis24 sion to’’; and 


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1 (C) by inserting ‘‘not later than June 30 

2 of each year’’ before the period at the end; 

3 (3) in subsection (b), by striking ‘‘biennial’’ and 

4 inserting ‘‘annual’’; and 

5 (4) by adding at the end the following new sub6 section: 

7 ‘‘(c) FINANCIAL STATUS OF PROGRAM.—The report 

8 under this section for each year shall include information 

9 regarding the financial status of the national flood insur10 ance program under this title, including a description of 

11 the financial status of the National Flood Insurance Fund 

12 and current and projected levels of claims, premium re13 ceipts, expenses, and borrowing under the program.’’. 

14 SEC. 14. FLOOD INSURANCE OUTREACH GRANTS. 

15 Chapter I of the National Flood Insurance Act of 

16 1968 (42 U.S.C. 4011 et seq.) is amended by adding at 

17 the end the following new section: 

18 ‘‘SEC. 1325. GRANTS FOR OUTREACH TO PROPERTY OWN19 ERS AND RENTERS. 

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

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

22 make grants to local governmental agencies responsible for 

23 floodplain management activities (including such agencies 

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

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1 mination Act of 1996 (25 U.S.C. 4103)) in communities 

2 that participate in the national flood insurance program 

3 under this title, for use by such agencies to carry out out4 reach activities to encourage and facilitate the purchase 

5 of flood insurance protection under this Act by owners and 

6 renters of properties in such communities and to promote 

7 educational activities that increase awareness of flood risk 

8 reduction. 

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

10 under this section shall be used only for activities designed 

11 to— 

12 ‘‘(1) identify owners and renters of properties 

13 in communities that participate in the national flood 

14 insurance program, including owners of residential 

15 and commercial properties; 

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

17 properties become included in, or when they are ex18 cluded from, an area having special flood hazards 

19 and the effect of such inclusion or exclusion on the 

20 applicability of the mandatory flood insurance pur21 chase requirement under section 102 of the Flood 

22 Disaster Protection Act of 1973 (42 U.S.C. 4012a) 

23 to such properties; 

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

25 the flood risk and reduction of this risk in their 


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1 community, including the continued flood risks to 

2 areas that are no longer subject to the flood insur3 ance mandatory purchase requirement; 

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

5 the benefits and costs of maintaining or acquiring 

6 flood insurance, including, where applicable, lower7 cost preferred risk policies under this title for such 

8 properties and the contents of such properties; and 

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

10 maintain or acquire such coverage. 

11 ‘‘(c) COST SHARING REQUIREMENT.— 

12 ‘‘(1) IN GENERAL.—In any fiscal year, the Di13 rector may not provide a grant under this section to 

14 a local governmental agency in an amount exceeding 

15 3 times the amount that the agency certifies, as the 

16 Director shall require, that the agency will con17 tribute from non-Federal funds to be used with 

18 grant amounts only for carrying out activities de19 scribed in subsection (b). 

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

21 this subsection, the term ‘non-Federal funds’ in22 cludes State or local government agency amounts, 

23 in-kind contributions, any salary paid to staff to 

24 carry out the eligible activities of the grant recipient, 

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1 unteers to carry out such services (at a rate deter2 mined by the Director), and the value of any do3 nated material or building and the value of any lease 

4 on a building. 

5 ‘‘(d) ADMINISTRATIVE COST LIMITATION.—Notwith6 standing subsection (b), the Director may use not more 

7 than 5 percent of amounts made available under sub8 section (g) to cover salaries, expenses, and other adminis9 trative costs incurred by the Director in making grants 

10 and provide assistance under this section. 

11 ‘‘(e) APPLICATION AND SELECTION.— 

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

13 for local governmental agencies described in sub14 section (a) to submit applications for grants under 

15 this section and for competitive selection, based on 

16 criteria established by the Director, of agencies sub17 mitting such applications to receive such grants. 

18 ‘‘(2) SELECTION CONSIDERATIONS.—In select19 ing applications of local government agencies to re20 ceive grants under paragraph (1), the Director shall 

21 consider— 

22 ‘‘(A) the existence of a cooperative tech23 nical partner agreement between the local gov24 ernmental agency and the Federal Emergency 

25 Management Agency; 


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1 ‘‘(B) the history of flood losses in the rel2 evant area that have occurred to properties, 

3 both inside and outside the special flood haz4 ards zones, which are not covered by flood in5 surance coverage; 

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

7 properties located in the relevant area that are 

8 not covered by flood insurance; 

9 ‘‘(D) demonstrated success of the local 

10 governmental agency in generating voluntary 

11 purchase of flood insurance; and 

12 ‘‘(E) demonstrated technical capacity of 

13 the local governmental agency for outreach to 

14 individual property owners. 

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

16 year that amounts for grants are made available pursuant 

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

18 percent of such amounts to carry out, and to enter into 

19 contracts with other entities to carry out, activities de20 scribed in subsection (b) in areas that the Director deter21 mines have the most immediate need for such activities. 

22 ‘‘(g) REPORTING.—Each local government agency 

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

24 that receives amounts pursuant to subsection (f), shall 

25 submit a report to the Director, not later than 12 months 


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1 after such amounts are first received, which shall include 

2 such information as the Director considers appropriate to 

3 describe the activities conducted using such amounts and 

4 the effect of such activities on the retention or acquisition 

5 of flood insurance coverage. 

6 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

7 is authorized to be appropriated for grants under this sec8 tion $50,000,000 for each of fiscal years 2008 through 

9 2012.’’. 

10 SEC. 15. GRANTS FOR DIRECT FUNDING OF MITIGATION 

11 ACTIVITIES FOR INDIVIDUAL REPETITIVE 

12 CLAIMS PROPERTIES. 

13 (a) DIRECT GRANTS TO OWNERS.—Section 1323 of 

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

15 4030) is amended— 

16 (1) in the section heading, by inserting ‘‘DI17 RECT’’ before ‘‘GRANTS’’; and 

18 (2) in the matter in subsection (a) that pre19 cedes paragraph (1)— 

20 (A) by inserting ‘‘, to owners of such prop21 erties,’’ before ‘‘for mitigation actions’’; and 

22 (B) by striking ‘‘1’’ and inserting ‘‘two’’. 

23 (b) AVAILABILITY OF FUNDS.—Paragraph (9) of sec24 tion 1310(a) of the National Flood Insurance Act of 1968 


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1 (42 U.S.C. 4017(a)) is amended by inserting ‘‘which shall 

2 remain available until expended,’’ after ‘‘and fiscal year,’’. 

3 SEC. 16. EXTENSION OF PILOT PROGRAM FOR MITIGATION 

4 OF SEVERE REPETITIVE LOSS PROPERTIES. 

5 Section 1361A of the National Flood Insurance Act 

6 of 1968 (42 U.S.C. 4102a) is amended— 

7 (1) in subsection (k)(1), by striking ‘‘2005, 

8 2006, 2007, 2008, and 2009’’ and inserting ‘‘2008, 

9 2009, 2010, 2011, and 2012’’; and 

10 (2) by striking subsection (l). 

11 SEC. 17. FLOOD MITIGATION ASSISTANCE PROGRAM. 

12 (a) ELIGIBILITY OF PROPERTY DEMOLITION AND

13 REBUILDING.—Section 1366(e)(5)(B) of the National 

14 Flood Insurance Act of 1968 (42 U.S.C. 4104c(e)(5)(B)) 

15 is amended by striking ‘‘or floodproofing’’ and inserting 

16 ‘‘floodproofing, or demolition and rebuilding’’. 

17 (b) ELIMINATION OF LIMITATIONS ON AGGREGATE

18 AMOUNT OF ASSISTANCE.—Section 1366 of the National 

19 Flood Insurance Act of 1968 is amended by striking sub20 section (f). 

21 (c) SOURCE OF FUNDS.—Subsection (a) of section 

22 1367 of the National Flood Insurance Act of 1968 (42 

23 U.S.C. 4104d(a)) is amended by adding at the end the 

24 following new sentence: ‘‘Notwithstanding any other provi25 sion of this title, amounts made available pursuant to this 


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1 subsection shall not be subject to offsetting collections 

2 through premium rates for flood insurance coverage under 

3 this title.’’. 

4 (d) TECHNICAL AMENDMENTS.—Section 1366 of the 

5 National Flood Insurance Act of 1968 is amended— 

6 (1) by striking ‘‘subsection (g)’’ each place such 

7 term appears in subsections (h) and (i)(2) and in8 serting ‘‘subsection (f)’’; and 

9 (2) by redesignating subsections (g) through (k) 

10 as subsections (f) through (j), respectively. 

11 SEC. 18. GAO STUDY OF METHODS TO INCREASE FLOOD IN12 SURANCE PROGRAM PARTICIPATION BY LOW13 INCOME FAMILIES. 

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

15 United States shall conduct a study to identify and ana16 lyze potential methods, practices, and incentives that 

17 would increase the extent to which low-income families (as 

18 such term is defined in section 3(b) of the United States 

19 Housing Act of 1937 (42 U.S.C. 1437a(b))) that own resi20 dential properties located within areas having special flood 

21 hazards purchase flood insurance coverage for such prop22 erties under the national flood insurance program. In con23 ducting the study, the Comptroller General shall analyze 

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1 tices, and incentives identified, including their effects on 

2 the national flood insurance program. 

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

4 to the Congress a report setting forth the conclusions of 

5 the study under this section not later than 12 months 

6 after the date of the enactment of this Act. 

7 SEC. 19. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 

8 AND ESCROW IN RESPA GOOD FAITH ESTI9 MATE. 

10 Subsection (c) of section 5 of the Real Estate Settle11 ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is 

12 amended by adding at the end the following new sentence: 

13 ‘‘Each such good faith estimate shall include the following 

14 conspicuous statements and information: (1) that flood in15 surance coverage for residential real estate is generally 

16 available under the national flood insurance program 

17 whether or not the real estate is located in an area having 

18 special flood hazards and that, to obtain such coverage, 

19 a home owner or purchaser should contact the national 

20 flood insurance program; (2) a telephone number and a 

21 location on the World Wide Web by which a home owner 

22 or purchaser can contact the national flood insurance pro23 gram; and (3) that the escrowing of flood insurance pay24 ments is required for many loans under section 102(d) of 

25 the Flood Disaster Protection Act of 1973, and may be 


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1 a convenient and available option with respect to other 

2 loans.’’. 

3 SEC. 20. REITERATION OF FEMA RESPONSIBILITIES UNDER 

4 2004 REFORM ACT. 

5 (a) APPEALS PROCESS.—As directed in section 205 

6 of the Bunning-Bereuter-Blumenauer Flood Insurance 

7 Reform Act of 2004 (42 U.S.C. 4011 note), the Director 

8 of the Federal Emergency Management Agency is again 

9 directed to, not later than 90 days after the date of the 

10 enactment of this Act, establish an appeals process 

11 through which holders of a flood insurance policy may ap12 peal the decisions, with respect to claims, proofs of loss, 

13 and loss estimates relating to such flood insurance policy 

14 as required by such section. 

15 (b) MINIMUM TRAINING AND EDUCATION REQUIRE16 MENTS.—The Director of the Federal Emergency Man17 agement Agency is directed to continue to work with the 

18 insurance industry, State insurance regulators, and other 

19 interested parties to implement the minimum training and 

20 education standards for all insurance agents who sell flood 

21 insurance policies that were established by the Director 

22 under the notice published September 1, 2005 (70 Fed. 

23 Reg. 52117) pursuant to section 207 of the Bunning-Be24 reuter-Blumenauer Flood Insurance Reform Act of 2004 

25 (42 U.S.C. 4011 note). 


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1 (c) REPORT.—Not later than the expiration of the 6- 

2 month period beginning on the date of the enactment of 

3 this Act, the Director of the Federal Emergency Manage4 ment Agency shall submit a report to the Congress de5 scribing the implementation of each provision of the 

6 Bunning-Bereuter-Blumenauer Flood Insurance Reform 

7 Act of 2004 (Public Law 108–264) and identifying each 

8 regulation, order, notice, and other material issued by the 

9 Director in implementing each such provision. 

10 SEC. 21. ONGOING MODERNIZATION OF FLOOD MAPS AND 

11 ELEVATION STANDARDS. 

12 (a) ONGOING FLOOD MAPPING PROGRAM.—Section 

13 1360 of the National Flood Insurance Act of 1968 (42 

14 U.S.C. 4101) is amended by adding at the end the fol15 lowing new subsection: 

16 ‘‘(k) ONGOING PROGRAM TO REVIEW, UPDATE, AND

17 MAINTAIN FLOOD INSURANCE PROGRAM MAPS.— 

18 ‘‘(1) IN GENERAL.—The Director, in coordina19 tion with the Technical Mapping Advisory Council 

20 established pursuant to section 576 of the National 

21 Flood Insurance Reform Act of 1994 (42 U.S.C. 

22 4101 note) and section 21(b) of the Flood Insurance 

23 Reform and Modernization Act of 2007, shall estab24 lish an ongoing program under which the Director 

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1 surance program rate maps in accordance with this 

2 subsection. 

3 ‘‘(2) INCLUSIONS.— 

4 ‘‘(A) COVERED AREAS.—Each map up5 dated under this subsection shall include a de6 piction of— 

7 ‘‘(i) the 500-year floodplain; 

8 ‘‘(ii) areas that could be inundated as 

9 a result of the failure of a levee, as deter10 mined by the Director; and 

11 ‘‘(iii) areas that could be inundated as 

12 a result of the failure of a dam, as identi13 fied under the National Dam Safety Pro14 gram Act (33 U.S.C. 467 et seq.). 

15 ‘‘(B) OTHER INCLUSIONS.—In updating 

16 maps under this subsection, the Director may 

17 include— 

18 ‘‘(i) any relevant information on 

19 coastal inundation from— 

20 ‘‘(I) an applicable inundation 

21 map of the Corps of Engineers; and 

22 ‘‘(II) data of the National Oce23 anic and Atmospheric Administration 

24 relating to storm surge modeling; 


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1 ‘‘(ii) any relevant information of the 

2 Geographical Service on stream flows, wa3 tershed characteristics, and topography 

4 that is useful in the identification of flood 

5 hazard areas, as determined by the Direc6 tor; and 

7 ‘‘(iii) a description of any hazard that 

8 might impact flooding, including, as deter9 mined by the Director— 

10 ‘‘(I) land subsidence and coastal 

11 erosion areas; 

12 ‘‘(II) sediment flow areas; 

13 ‘‘(III) mud flow areas; 

14 ‘‘(IV) ice jam areas; and 

15 ‘‘(V) areas on coasts and inland 

16 that are subject to the failure of 

17 structural protective works, such as 

18 levees, dams, and floodwalls. 

19 ‘‘(3) STANDARDS.—In updating and maintain20 ing maps under this subsection, the Director shall 

21 establish standards to— 

22 ‘‘(A) ensure that maps are adequate for— 

23 ‘‘(i) flood risk determinations; and 


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1 ‘‘(ii) use by State and local govern2 ments in managing development to reduce 

3 the risk of flooding; 

4 ‘‘(B) facilitate the Director, in conjunction 

5 with State and local governments, to identify 

6 and use consistent methods of data collection 

7 and analysis in developing maps for commu8 nities with similar flood risks, as determined by 

9 the Director; and 

10 ‘‘(C) ensure that emerging weather fore11 casting technology is used, where practicable, in 

12 flood map evaluations and the identification of 

13 potential risk areas. 

14 ‘‘(4) HURRICANES KATRINA AND RITA MAPPING

15 PRIORITY.—In updating and maintaining maps 

16 under this subsection, the Director shall— 

17 ‘‘(A) give priority to the updating and 

18 maintenance of maps of coastal areas affected 

19 by Hurricane Katrina or Hurricane Rita to pro20 vide guidance with respect to hurricane recovery 

21 efforts; and 

22 ‘‘(B) use the process of updating and 

23 maintaining maps under subparagraph (A) as a 

24 model for updating and maintaining other 

25 maps. 


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1 ‘‘(5) EDUCATION PROGRAM.—The Director 

2 shall, after each update to a flood insurance pro3 gram rate map, in consultation with the chief execu4 tive officer of each community affected by the up5 date, conduct a program to educate each such com6 munity about the update to the flood insurance pro7 gram rate map and the effects of the update. 

8 ‘‘(6) ANNUAL REPORT.—Not later than June 

9 30 of each year, the Director shall submit a report 

10 to the Congress describing, for the preceding 12- 

11 month period, the activities of the Director under 

12 the program under this section and the reviews and 

13 updates of flood insurance program rate maps con14 ducted under the program. Each such annual report 

15 shall contain the most recent report of the Technical 

16 Mapping Advisory Council pursuant to section 

17 576(c)(3) of the National Flood Insurance Reform 

18 Act of 1994 (42 U.S.C. 4101 note). 

19 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— 

20 There is authorized to be appropriated to the Direc21 tor to carry out this subsection $400,000,000 for 

22 each of fiscal years 2008 through 2013.’’. 

23 (b) REESTABLISHMENT OF TECHNICAL MAPPING

24 ADVISORY COUNCIL FOR ONGOING MAPPING PROGRAM.— 


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1 (1) REESTABLISHMENT.—There is reestab2 lished the Technical Mapping Advisory Council, in 

3 accordance with this subsection and section 576 of 

4 the National Flood Insurance Reform Act of 1994 

5 (42 U.S.C. 4101 note). 

6 (2) MEMBERSHIP.—Paragraph (1) of section 

7 576(b) of the National Flood Insurance Reform Act 

8 of 1994 (42 U.S.C. 4101 note) is amended— 

9 (A) in the matter preceding subparagraph 

10 (A), by striking ‘‘10’’ and inserting ‘‘14’’; 

11 (B) by redesignating subparagraphs (E), 

12 (F), (G), (H), (I), and (J) as subparagraphs 

13 (F), (G), (H), (K), (M), and (N), respectively; 

14 (C) by inserting after subparagraph (D) 

15 the following new subparagraph: 

16 ‘‘(E) a representative of the Corps of Engi17 neers of the United States Army;’’; 

18 (D) by inserting after subparagraph (H) 

19 (as so redesignated by subparagraph (B) of this 

20 paragraph) the following new subparagraphs: 

21 ‘‘(I) a representative of local or regional 

22 flood and stormwater agencies; 

23 ‘‘(J) a representative of State geographic 

24 information coordinators;’’; and 


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1 (E) by inserting after subparagraph (K) 

2 (as so redesignated by subparagraph (A) of this 

3 paragraph) the following new subparagraph: 

4 ‘‘(L) a representative of flood insurance 

5 servicing companies;’’. 

6 (3) TERMS OF MEMBERS AND APPOINTMENT.— 

7 Section 576(b) of the National Flood Insurance Re8 form Act of 1994 (42 U.S.C. 4101 note) is amended 

9 by adding at the end the following new paragraph: 

10 ‘‘(3) TERMS OF MEMBERS.— 

11 ‘‘(A) IN GENERAL.—Each member of the 

12 Council pursuant to any of subparagraphs (B) 

13 through (N) of paragraph (1) shall be ap14 pointed for a term of 5 years, except as pro15 vided in subparagraphs (B) and (C). 

16 ‘‘(B) TERMS OF INITIAL APPOINTEES.—As 

17 designated by the Director (or the designee of 

18 the Director) at the time of appointment, of the 

19 members of the Council first appointed pursu20 ant to subparagraph (D)— 

21 ‘‘(i) 4 shall be appointed for a term of 

22 1 year; 

23 ‘‘(ii) 4 shall be appointed for a term 

24 of 3 years; and 


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1 ‘‘(iii) 5 shall be appointed for a term 

2 of 5 years. 

3 ‘‘(C) VACANCIES.—Any member of the 

4 Council appointed to fill a vacancy occurring 

5 before the expiration of the term for which the 

6 member’s predecessor was appointed shall be 

7 appointed only for the remainder of that term. 

8 A member may serve after the expiration of 

9 that member’s term until a successor has taken 

10 office. A vacancy in the Council shall be filled 

11 in the manner in which the original appoint12 ment was made. 

13 ‘‘(D) INITIAL APPOINTMENT.—The Direc14 tor, or the Director’s designee, shall take action 

15 as soon as possible after the date of the enact16 ment of the Flood Insurance Reform and Mod17 ernization Act of 2007 to appoint the members 

18 of the Council pursuant to this subsection.’’. 

19 (4) DUTIES.—Subsection (c) of section 576 of 

20 the National Flood Insurance Reform Act of 1994 

21 (42 U.S.C. 4101 note) is amended to read as fol22 lows: 

23 ‘‘(c) DUTIES.—The Council shall— 

24 ‘‘(1) make recommendations to the Director for 

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1 gram under section 1360(k) of the National Flood 

2 Insurance Act of 1968 (42 U.S.C. 41010(k)); 

3 ‘‘(2) make recommendations to the Director for 

4 maintaining a modernized inventory of flood hazard 

5 maps and information; and 

6 ‘‘(3) submit an annual report to the Director 

7 that contains a description of the activities and rec8 ommendations of the Council.’’. 

9 (5) ELIMINATION OF TERMINATION.—Section 

10 576 of the National Flood Insurance Reform Act of 

11 1994 (42 U.S.C. 4101 note) is amended by striking 

12 subsection (k) and inserting the following new sub13 section: 

14 ‘‘(k) CONTINUED EXISTENCE.—Section 14(a)(2)(B) 

15 of the Federal Advisory Committee Act (5 U.S.C. App.; 

16 relating to termination of advisory committees) shall not 

17 apply to the Council.’’. 

18 (c) POST-DISASTER FLOOD ELEVATION DETERMINA19 TIONS.—Section 1361 of the National Flood Insurance 

20 Act of 1968 (42 U.S.C. 4101), as amended by the pre21 ceding provisions of this Act, is further amended by add22 ing at the end the following new subsection: 

23 ‘‘(l) INTERIM POST-DISASTER FLOOD ELE24 VATIONS.— 


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1 ‘‘(1) AUTHORITY.—Notwithstanding any other 

2 provision of this section or section 1363, the Direc3 tor may, after any flood-related disaster, establish by 

4 order interim flood elevation requirements for pur5 poses of the national flood insurance program for 

6 any areas affected by such flood-related disaster. 

7 ‘‘(2) EFFECTIVENESS.—Such interim elevation 

8 requirements for such an area shall take effect im9 mediately upon issuance and may remain in effect 

10 until the Director establishes new flood elevations 

11 for such area in accordance with section 1363 or the 

12 Director provides otherwise.’’. 

13 SEC. 22. NOTIFICATION AND APPEAL OF MAP CHANGES; 

14 NOTIFICATION OF ESTABLISHMENT OF 

15 FLOOD ELEVATIONS. 

16 Section 1363 of the National Flood Insurance Act of 

17 1968 (42 U.S.C. 4104) is amended by striking the section 

18 designation and all that follows through the end of sub19 section (a) and inserting the following: 

20 ‘‘SEC. 1363. (a) In establishing projected flood ele21 vations for land use purposes with respect to any commu22 nity pursuant to section 1361, the Director shall first pro23 pose such determinations— 

24 ‘‘(1) by providing the chief executive officer of 

25 each community affected by the proposed elevations, 


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1 by certified mail, with a return receipt requested, 

2 notice of the elevations, including a copy of the maps 

3 for the elevations for such community and a state4 ment explaining the process under this section to ap5 peal for changes in such elevations; 

6 ‘‘(2) by causing notice of such elevations to be 

7 published in the Federal Register, which notice shall 

8 include information sufficient to identify the ele9 vation determinations and the communities affected, 

10 information explaining how to obtain copies of the 

11 elevations, and a statement explaining the process 

12 under this section to appeal for changes in the ele13 vations; and 

14 ‘‘(3) by publishing in a prominent local news15 paper the elevations, a description of the appeals 

16 process for flood determinations, and the mailing ad17 dress and telephone number of a person the owner 

18 may contact for more information or to initiate an 

19 appeal.’’. 

20 SEC. 23. CLARIFICATION OF REPLACEMENT COST PROVI21 SIONS, FORMS, AND POLICY LANGUAGE. 

22 Not later than the expiration of the 3-month period 

23 beginning on the date of the enactment of this Act, the 

24 Director of the Federal Emergency Management Agency 

25 shall— 


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1 (1) in plain language using easy to understand 

2 terms and concepts, issue regulations, and revise any 

3 materials made available by such Agency, to clarify 

4 the applicability of replacement cost coverage under 

5 the national flood insurance program; 

6 (2) in plain language using easy to understand 

7 terms and concepts, revise any regulations, forms, 

8 notices, guidance, and publications relating to the 

9 full cost of repair or replacement under the replace10 ment cost coverage to more clearly describe such 

11 coverage to flood insurance policyholders and infor12 mation to be provided by such policyholders relating 

13 to such coverage, and to avoid providing misleading 

14 information to such policyholders; 

15 (3) revise the language in standard flood insur16 ance policies under such program regarding rating 

17 and coverage descriptions in a manner that is con18 sistent with language used widely in other home19 owners and property and casualty insurance policies, 

20 including such language regarding classification of 

21 buildings, basements, crawl spaces, detached ga22 rages, enclosures below elevated buildings, and re23 placement costs; and 

24 (4) include in each standard flood insurance 

25 policy a one-page description of the policy using 


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1 plain language and easy to understand terms and 

2 concepts. 

3 SEC. 24. AUTHORIZATION OF ADDITIONAL FEMA STAFF. 

4 Notwithstanding any other provision of law, the Di5 rector of the Federal Emergency Management Agency 

6 may employ such additional staff as may be necessary to 

7 carry out all of the responsibilities of the Director pursu8 ant to this Act and the amendments made by this Act. 

9 There are authorized to be appropriated to Director such 

10 sums as may be necessary for costs of employing such ad11 ditional staff. 

12 SEC. 25. EXTENSION OF DEADLINE FOR FILING PROOF OF 

13 LOSS. 

14 (a) IN GENERAL.—Section 1312 of the National 

15 Flood Insurance Act of 1968 (42 U.S.C. 4019) is amend16 ed— 

17 (1) by inserting ‘‘(a) PAYMENT.—’’ before ‘‘The 

18 Director’’; and 

19 (2) by adding at the end the following new sub20 section: 

21 ‘‘(b) FILING DEADLINE FOR PROOF OF LOSS.— 

22 ‘‘(1) IN GENERAL.—In establishing any require23 ments regarding notification, proof, or approval of 

24 claims for damage to or loss of property which is 

25 covered by flood insurance made available under this 


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1 title, the Director may not require an insured to no2 tify the Director of such damage or loss, submit a 

3 claim for such damage or loss, or certify to or sub4 mit proof of such damage or loss, before the expira5 tion of the 180-day period that begins on the date 

6 that such damage or loss occurred. 

7 ‘‘(2) EXCEPTIONS.—Notwithstanding any dead8 line established in accordance with paragraph (1), 

9 the Director may not deny a claim for damage or 

10 loss described in such paragraph solely for failure to 

11 meet such deadline if the insured demonstrates any 

12 good cause for such failure.’’. 

13 (b) APPLICABILITY.—Subsection (b) of section 1312 

14 of the National Flood Insurance Act of 1968, as added 

15 by subsection (a)(2) of this section, shall apply with re16 spect to any claim under which the damage to or loss of 

17 property occurred on or after the date of the enactment 

18 of this Act. 

Æ 


pwalker on PROD1PC71 with BILLS