To repeal the mandatory flood insurance coverage requirement for commercial properties located in flood hazard areas, and for other purposes.

To repeal the mandatory flood insurance coverage requirement for commercial properties located in flood hazard areas, and for other purposes. 1. Opt-out of mandatory coverage requirement for commercial properties (a) Amendments to Flood Disaster Protection Act of 1973 The Flood Disaster Protection Act of 1973 is amended— (1) in section 3(a) ( 42 U.S.C. 4003(a) (A) in paragraph (10), by striking and (B) in paragraph (11), by striking the period at the end and inserting ; and (C) by adding at the end the following new paragraph: (12) residential improved real estate (A) is primarily used for residential purposes, as defined by the Federal entities for lending regulation; and (B) secures financing or financial assistance provided through a federally related single family loan program, as defined by the Federal entities for lending regulation. ; and (2) in section 102 ( 42 U.S.C. 4012a (A) in subsection (b)— (i) in paragraph (1)(A)— (I) by inserting residential improved real estate (II) by inserting residential building or mobile home (ii) in paragraph (2)— (I) by inserting residential improved real estate (II) by inserting residential building or mobile home (iii) in paragraph (3)— (I) in subparagraph (A), by inserting residential improved real estate (II) in the matter after and below subparagraph (B), by inserting residential building or mobile home (B) in subsection (c)(3), by striking , in the case of any residential property, for any structure that is a part of such property for any structure that is part of a residential property (C) in subsection (e)— (i) in paragraph (1)— (I) by inserting residential improved real estate (II) by inserting residential building or mobile home (ii) in paragraph (5)— (I) in subparagraph (A)— (aa) by inserting residential improved real estate (bb) by inserting residential building or mobile home (II) in subparagraph (B), by inserting residential building or mobile home (III) in subparagraph (C), by inserting residential building or mobile home (D) in subsection (h)— (i) by inserting residential improved real estate (ii) in the matter preceding paragraph (1), by inserting residential building or mobile home (b) Amendments to National Flood Insurance Act of 1968 The National Flood Insurance Act of 1968 is amended— (1) in section 1364(a) ( 42 U.S.C. 4104a(a) (A) in paragraph (1), by inserting residential improved real estate (B) in paragraph (2), by inserting residential improved real estate (C) in paragraph (3)(A), by inserting residential building (2) in section 1365 ( 42 U.S.C. 4104b (A) in subsection (a)— (i) by inserting residential improved real estate (ii) by inserting residential building (B) in subsection (b)(2)— (i) by inserting residential building (ii) by inserting residential improved real estate (C) in subsection (d), by inserting residential improved real estate (D) in subsection (e)— (i) by inserting residential improved real estate (ii) by inserting residential building (3) in section 1370 ( 42 U.S.C. 4121 (A) in paragraph (8), by inserting residential improved real estate (B) by redesignating paragraphs (14) and (15) as paragraphs (15) and (16), respectively; and (C) by inserting after paragraph (13) the following new paragraph: (14) the term residential improved real estate (A) is primarily used for residential purposes, as defined by the Federal entities for lending regulation; and (B) secures financing or financial assistance provided through a federally related single family loan program, as defined by the Federal entities for lending regulation; . (c) Rule of construction This section and the amendments made by this section may not be construed to prohibit the Administrator of the Federal Emergency Management Agency from offering flood insurance coverage under the National Flood Insurance Program for eligible non-residential properties, other residential multifamily properties, or structures financed with commercial loans, or to prohibit the purchase of such coverage for such eligible properties.

Summary: This bill limits the required purchase of flood insurance in certain circumstances to only residential properties (currently, the requirement applies to all types of property).