IIB 
114TH CONGRESS 
2D SESSION 
H. R. 2901 
IN THE SENATE OF THE UNITED STATES 
MAY 9, 2016 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To amend the Flood Disaster Protection Act of 1973 to 
require that certain buildings and personal property be 
covered by flood insurance, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
23:45 May 09, 2016
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2901.RFS
H2901
emcdonald on DSK67QTVN1PROD with BILLS
HR 2901 RFS 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Flood Insurance Mar-
ket Parity and Modernization Act’’. 
SEC. 2. PRIVATE FLOOD INSURANCE. 
(a) MANDATORY PURCHASE REQUIREMENT.— 
(1) AMOUNT AND TERM OF COVERAGE.—Sec-
tion 102 of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a) is amended by striking 
‘‘Sec. 102. (a)’’ and all that follows through the end 
of subsection (a) and inserting the following: 
‘‘SEC. 102. (a) AMOUNT AND TERM OF COVERAGE.— 
After the expiration of sixty days following the date of en-
actment of this Act, no Federal officer or agency shall ap-
prove any financial assistance for acquisition or construc-
tion purposes for use in any area that has been identified 
by the Administrator as an area having special flood haz-
ards and in which the sale of flood insurance has been 
made available under the National Flood Insurance Act 
of 1968, unless the building or mobile home and any per-
sonal property to which such financial assistance relates 
is covered by flood insurance: Provided, That the amount 
of flood insurance (1) in the case of Federal flood insur-
ance, is at least equal to the development or project cost 
of the building, mobile home, or personal property (less 
estimated land cost), the outstanding principal balance of 
the loan, or the maximum limit of Federal flood insurance 
VerDate Sep 11 2014 
23:45 May 09, 2016
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2901.RFS
H2901
emcdonald on DSK67QTVN1PROD with BILLS
HR 2901 RFS 
coverage made available with respect to the particular type 
of property, whichever is less; or (2) in the case of private 
flood insurance, is at least equal to the development or 
project cost of the building, mobile home, or personal 
property (less estimated land cost), the outstanding prin-
cipal balance of the loan, or the maximum limit of Federal 
flood insurance coverage made available with respect to 
the particular type of property, whichever is less: Provided 
further, That if the financial assistance provided is in the 
form of a loan or an insurance or guaranty of a loan, the 
amount of flood insurance required need not exceed the 
outstanding principal balance of the loan and need not be 
required beyond the term of the loan. The requirement 
of maintaining flood insurance shall apply during the life 
of the property, regardless of transfer of ownership of such 
property.’’. 
(2) REQUIREMENT
FOR
MORTGAGE
LOANS.— 
Subsection (b) of section 102 of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4012a(b)) is 
amended— 
(A) by striking the subsection designation 
and all that follows through the end of para-
graph (5) and inserting the following: 
‘‘(b) REQUIREMENT FOR MORTGAGE LOANS.— 
VerDate Sep 11 2014 
23:45 May 09, 2016
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2901.RFS
H2901
emcdonald on DSK67QTVN1PROD with BILLS