Homeowner Flood Insurance Transparency and Protection Act

To permit policyholders under the National Flood Insurance Program to elect to have previous premium rates remain in effect until the Administrator of the Federal Emergency Management Agency satisfies certain conditions, and for other purposes. 1. Short title This Act may be cited as the Homeowner Flood Insurance Transparency and Protection Act 2. Chargeable premium rates (a) Definitions In this section— (1) the term Administrator (2) the term National Flood Insurance Program 42 U.S.C. 4001 et seq. (b) Option for policyholders (1) In general Notwithstanding section 1308 of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4015 (2) Notification requirement The Administrator shall provide each policyholder under the National Flood Insurance Program a notification regarding the right of the policyholder under paragraph (1). (c) Required actions The actions of the Administrator described in this subsection are as follows: (1) Makes available to the public all data and methods used to prescribe chargeable premium rates for types and classes of properties for which insurance coverage is available under the National Flood Insurance Act of 1968 ( 42 U.S.C. 4001 et seq. chargeable premium rates (2) Creates an online database that is available to policyholders under the National Flood Insurance Program that provides each such policyholder with information regarding what the chargeable premium rate for the applicable property of the policyholder would be— (A) under Risk Rating 2.0, or any substantially similar methodology; and (B) assuming that the limitation under section 1308(e) of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4015(e) (3) Completes and publishes a comprehensive assessment of the economic and social impacts of implementing Risk Rating 2.0 (or any substantially similar methodology) during the 20-year period beginning in the year in which the assessment is made, which shall include an evaluation of the effect that such implementation will have, during that 20-year period, on— (A) the affordability and availability of flood insurance under the National Flood Insurance Program; (B) property values; and (C) non-Federal Government revenues. (4) Supplements (and revises, as appropriate) the Record of Decision for the final nationwide programmatic environmental impact statement evaluating the environmental impacts of proposed modifications to the National Flood Insurance Program (83 Fed. Reg. 24328) to include the impacts of implementing Risk Rating 2.0, or any substantially similar methodology. (5) Demonstrates that the data and methods used to prescribe chargeable premium rates under Risk Rating 2.0, or any substantially similar methodology, satisfy the requirements under section 515 of the Consolidated Appropriations Act, 2001 ( Public Law 106–554 (6) Conducts public notice and comment rule making under chapter 5 (A) disputes over chargeable premium rates; and (B) other factors with respect to the implementation of that methodology. (7) For each county in the United States, publishes the distribution of chargeable premium rates showing the median, mean, lower and upper quartiles, maximum amount, and minimum amount of chargeable premium rates under each of the following: (A) The method used to prescribe chargeable premium rates, as of September 30, 2021. (B) The methodology projected to be used to prescribe chargeable premium rates, as of April 1, 2022, assuming that the limitations under section 1308(e) of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4015(e) (C) The methodology described in subparagraph (B), assuming that the limitations described in that subparagraph are not applied. (D) The methodology described in subparagraph (B), assuming that— (i) the limitations described in that subparagraph are applied; and (ii) the administrative costs of the National Flood Insurance Program are allocated on a uniform, per contract basis rather than as allocated under Risk Rating 2.0, or any substantially similar methodology. (E) The methodology described in subparagraph (B), assuming that— (i) the limitations described in that subparagraph are not applied; and (ii) the administrative costs of the National Flood Insurance Program are allocated on a uniform, per contract basis rather than as allocated under Risk Rating 2.0, or any substantially similar methodology. (8) Submits to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report detailing the satisfaction of the requirements under paragraphs (1) through (7).

Summary: Homeowner Flood Insurance Transparency and Protection Act This bill allows National Flood Insurance Program policyholders to elect to pay premiums at the rate in effect prior to the implementation of Risk Rating 2.0. Risk Rating 2.0 bases premium rates on an individual property's specific flood risk instead of the flood risk of a general location and property type. Policyholders may elect to pay the previous rate until the Federal Emergency Management Agency performs several actions regarding Risk Rating 2.0, including publishing all data and methods used to calculate premium rates under Risk Rating 2.0, creating an online database where policyholders can see premium rates for their property using specified calculations, and publishing an assessment of the economic and social impacts of Risk Rating 2.0.