IB 
Union Calendar No. 217 
115TH CONGRESS 
1ST SESSION H. R. 2874 
[Report No. 115–304] 
To achieve reforms to improve the financial stability of the National Flood 
Insurance Program, to enhance the development of more accurate esti-
mates of flood risk through new technology and better maps, to increase 
the role of private markets in the management of flood insurance risks, 
and to provide for alternative methods to insure against flood peril, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2017 
Mr. DUFFY introduced the following bill; which was referred to the Committee 
on Financial Services 
SEPTEMBER 11, 2017 
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 June 12, 2017] 
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A BILL 
To achieve reforms to improve the financial stability of the 
National Flood Insurance Program, to enhance the devel-
opment of more accurate estimates of flood risk through 
new technology and better maps, to increase the role 
of private markets in the management of flood insurance 
risks, and to provide for alternative methods to insure 
against flood peril, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘21st 
Century Flood Reform Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—POLICYHOLDER PROTECTIONS AND INFORMATION 
Sec. 101. Annual limitation on premium increases. 
Sec. 102. Flood insurance affordability program. 
Sec. 103. Disclosure of premium methodology. 
Sec. 104. Consideration of coastal and inland locations in premium rates. 
Sec. 105. Monthly installment payment of premiums. 
Sec. 106. Enhanced clear communication of flood risks. 
Sec. 107. Availability of flood insurance information upon request. 
Sec. 108. Disclosure of flood risk information upon transfer of property. 
Sec. 109. Voluntary community-based flood insurance pilot program. 
Sec. 110. Extension of National Flood Insurance Program. 
TITLE II—INCREASING CONSUMER CHOICE THROUGH PRIVATE 
MARKET DEVELOPMENT 
Sec. 201. Elimination of non-compete requirement. 
Sec. 202. Public availability of program information. 
Sec. 203. Refund of premiums upon cancellation of policy because of replacement 
with private flood insurance. 
Sec. 204. Provision of private flood insurance by mutual aid societies. 
Sec. 205. GAO study of flood damage savings accounts. 
Sec. 206. Demonstration program for flood damage savings accounts. 
TITLE III—MAPPING FAIRNESS 
Sec. 301. Use of other risk assessment tools in determining premium rates. 
Sec. 302. Appeals regarding existing flood maps. 
Sec. 303. Appeals and publication of projected special flood hazard areas. 
Sec. 304. Communication and outreach regarding map changes. 
Sec. 305. Sharing and use of maps and data. 
TITLE IV—PROTECTING CONSUMERS AND INDIVIDUALS THROUGH 
IMPROVED MITIGATION 
Sec. 401. Provision of Community Rating System premium credits to maximum 
number of communities practicable. 
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TITLE V—PROGRAM INTEGRITY 
Sec. 501. Independent actuarial review. 
Sec. 502. Adjustments to homeowner flood insurance affordability surcharge. 
Sec. 503. National Flood Insurance Reserve Fund compliance. 
Sec. 504. Designation and treatment of multiple-loss properties. 
Sec. 505. Elimination of coverage for properties with excessive lifetime claims. 
Sec. 506. Addressing tomorrow’s high-risk structures today. 
Sec. 507. Pay for performance and streamlining costs and reimbursement. 
Sec. 508. Enforcement of mandatory purchase requirements. 
Sec. 509. Satisfaction of mandatory purchase requirement in States allowing all- 
perils policies. 
Sec. 510. Flood insurance purchase requirements. 
Sec. 511. Clarifications; deadline for approval of claims. 
Sec. 511. GAO study of simplification of National Flood Insurance Program. 
TITLE 
I—POLICYHOLDER 
PRO-
TECTIONS AND INFORMATION 
SEC. 101. ANNUAL LIMITATION ON PREMIUM INCREASES. 
Section 1308(e) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015(e)) is amended— 
(1) in paragraph (1), by striking ‘‘18 percent’’ 
and inserting ‘‘15 percent’’; and 
(2) in paragraph (2), by striking ‘‘5 percent’’ 
and inserting ‘‘8 percent’’. 
SEC. 102. FLOOD INSURANCE AFFORDABILITY PROGRAM. 
Chapter I of the National Flood Insurance Act of 1968 
(42 U.S.C. 4011 et seq.) is amended by adding at the end 
the following new section: 
‘‘SEC. 1326. FLOOD INSURANCE AFFORDABILITY PROGRAM. 
‘‘(a) AUTHORITY.—The Administrator shall carry out 
a program under this section to provide financial assist-
ance, through State programs carried out by participating 
States, for eligible low-income households residing in eligi-
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ble properties to purchase policies for flood insurance cov-
erage made available under this title. 
‘‘(b) PARTICIPATION.—Participation in the program 
under this section shall be voluntary on the part of a State 
or consortium of States. 
‘‘(c) STATE ADMINISTRATION.—Each participating 
State shall delegate to a State agency or nonprofit organiza-
tion the responsibilities for administrating the State’s pro-
gram under this section. 
‘‘(d) ELIGIBLE HOUSEHOLDS.— 
‘‘(1) IN GENERAL.—During any fiscal year, as-
sistance under the program under this section may be 
provided only for a household that has an income, as 
determined for such fiscal year by the participating 
State in which such household resides, that is less 
than the income limitation established for such fiscal 
year for purposes of the State program by the partici-
pating State, except that— 
‘‘(A) assistance under the program under 
this section may not be provided for a household 
having a income that exceeds the greater of— 
‘‘(i) the amount equal to 150 percent of 
the poverty level for such State; or 
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‘‘(ii) the amount equal to 60 percent of 
the median income of households residing in 
such State; and 
‘‘(B) a State may not exclude a household 
from eligibility in a fiscal year solely on the 
basis of household income if such income is less 
than 110 percent of the poverty level for the 
State in which such household resides. 
‘‘(2) STATE
VERIFICATION
OF
INCOME
ELIGI-
BILITY.—In verifying income eligibility for purposes 
of paragraph (1), the participating State may apply 
procedures and policies consistent with procedures 
and policies used by the State agency administering 
programs under part A of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq.), under title XX of the 
Social Security Act (42 U.S.C. 1397 et seq.), under 
subtitle B of title VI of the Omnibus Budget Rec-
onciliation Act of 1981 (42 U.S.C. 9901 et seq.; relat-
ing to community services block grant program), 
under any other provision of law that carries out pro-
grams which were administered under the Economic 
Opportunity Act of 1964 (42 U.S.C. 2701 et seq.) be-
fore August 13, 1981, or under other income assist-
ance or service programs (as determined by the 
State). 
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‘‘(3) CERTIFICATION BY STATE OF ELIGIBILITY 
HOUSEHOLDS.—For each fiscal year, each partici-
pating State shall certify to the Administrator com-
pliance of households who are to be provided assist-
ance under the State program during such fiscal year 
with the income requirements under paragraph (1). 
‘‘(e) ELIGIBLE PROPERTIES.—Assistance under the 
program under this section may be provided only for a resi-
dential property— 
‘‘(1) that has 4 or fewer residences; 
‘‘(2) that is owned and occupied by an eligible 
household; 
‘‘(3) for which a base flood elevation is identified 
on a flood insurance rate map of the Administrator 
that is in effect; 
‘‘(4) for which such other information is avail-
able as the Administrator considers necessary to de-
termine the flood risk associated with such property; 
and 
‘‘(5) that is located in a community that is par-
ticipating in the national flood insurance program. 
‘‘(f) TYPES
OF ASSISTANCE.—Under the program 
under this section, a participating State shall elect to pro-
vide financial assistance for eligible households in one of 
the following forms: 
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