Reform Act of 2004 will have on the national 
flood insurance program generally and on cov-
erage of pre-FIRM properties under the pro-
gram. 
(2) MANDATORY PURCHASE REQUIREMENT FOR 
NATURAL 100-YEAR FLOODPLAIN.—The study shall 
assess the impact, effectiveness, and feasibility of 
amending the provisions of the Flood Disaster Pro-
tection Act of 1973 regarding the properties that are 
subject to the mandatory flood insurance coverage 
purchase requirements under such Act to extend 
such requirements to properties located in any area 
that would be designated as an area having special 
flood hazards but for the existence of a structural 
flood protection system, and shall determine— 
(A) the regulatory, financial and economic 
impacts of extending such mandatory purchase 
requirements on the costs of homeownership, 
the actuarial soundness of the national flood in-
surance program, the Federal Emergency Man-
agement Agency, local communities, insurance 
companies, and local land use; 
(B) the effectiveness of extending such 
mandatory purchase requirements in protecting 
homeowners from financial loss and in pro-
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tecting the financial soundness of the national 
flood insurance program; and 
(C) any impact on lenders of complying 
with or enforcing such extended mandatory re-
quirements. 
(3) MANDATORY PURCHASE REQUIREMENT FOR 
NON-FEDERALLY RELATED LOANS.—The study shall 
assess the impact, effectiveness, and feasibility of, 
and basis under the Constitution of the United 
States for, amending the provisions of the Flood 
Disaster Protection Act of 1973 regarding the prop-
erties that are subject to the mandatory flood insur-
ance coverage purchase requirements under such Act 
to extend such requirements to any property that is 
located in any area having special flood hazards and 
which secures the repayment of a loan that is not 
described in paragraph (1), (2), or (3) of section 
102(b) of such Act, and shall determine how best to 
administer and enforce such a requirement, taking 
into consideration other insurance purchase require-
ments under Federal and State law. 
(b) REPORT.—The Comptroller General shall submit 
a report to the Congress regarding the results and conclu-
sions of the study under this subsection not later than the 
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expiration of the 6-month period beginning on the date 
of the enactment of this Act. 
SEC. 4. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDEN-
TIAL PROPERTIES AND NON-PRIMARY RESI-
DENCES. 
(a) IN GENERAL.—Section 1308(c) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(c)) is 
amended— 
(1) by redesignating paragraph (2) as para-
graph (4); and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraphs: 
‘‘(2) NONRESIDENTIAL PROPERTIES.—Any non-
residential property. 
‘‘(3) NON-PRIMARY RESIDENCES.—Any residen-
tial property that is not the primary residence of an 
individual.’’. 
(b) TECHNICAL AMENDMENTS.—Section 1308 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4015) 
is amended— 
(1) in subsection (c)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘Subject only to the limitations pro-
vided under paragraphs (1) and (2), the’’ and 
inserting ‘‘The’’; and 
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(B) in paragraph (1), by striking ‘‘, ex-
cept’’ and all that follows through ‘‘subsection 
(e)’’; and 
(2) in subsection (e), by striking ‘‘paragraph 
(2) or (3)’’ and inserting ‘‘paragraph (4)’’. 
(c) EFFECTIVE DATE AND TRANSITION.— 
(1) EFFECTIVE DATE.—The amendments made 
by subsections (a) and (b) shall apply beginning on 
the publication by the Director of the Federal Emer-
gency Management Agency of the certification under 
section 16(b)(2), except as provided in paragraph 
(2) of this subsection. 
(2) TRANSITION.—In the case of any property 
described in paragraph (2) or (3) of section 1308(c) 
of the National Flood Insurance Act of 1968, as 
amended by subsection (a) of this section, that, on 
the date of the enactment of this Act, is covered 
under a policy for flood insurance made available 
under the national flood insurance program for 
which the chargeable premium rates are less than 
the applicable estimated risk premium rate under 
section 1307(a)(1) for the area in which the prop-
erty is located, the Director of the Federal Emer-
gency Management Agency shall increase the 
chargeable premium rates for such property over 
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time to such applicable estimated risk premium rate 
under section 1307(a)(1). Such increase shall be 
made by increasing the chargeable premium rates 
for the property (after application of any increase in 
the premium rates otherwise applicable to such prop-
erty) by 15 percent (or such lesser amount as may 
be necessary so that the chargeable rate does not ex-
ceed such applicable estimated risk premium rate) 
once during the 12-month period that begins upon 
the date of the enactment of this Act and once every 
12 months thereafter until such increase is accom-
plished. The provisions of paragraphs (2) and (3) of 
such section 1308(c) shall apply to such a property 
upon the accomplishment of such increase and there-
after. 
SEC. 5. REDUCTION OF WAITING PERIOD FOR EFFECTIVE 
DATE OF POLICIES. 
Section 1306(c)(1) is amended by striking ‘‘30-day’’ 
and inserting ‘‘15-day’’. 
SEC. 6. ENFORCEMENT. 
Section 102(f) of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4012a(f)) is amended— 
(1) in paragraph (5)— 
(A) in the first sentence, by striking 
‘‘$350’’ and inserting ‘‘$2,000’’; and 
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(B) in the last sentence, by striking 
‘‘$100,000’’ and inserting ‘‘$1,000,000’’; and 
(2) in paragraph (6), by adding after the period 
at the end the following: ‘‘No penalty may be im-
posed under this subsection on a regulated lending 
institution or enterprise that has made a good faith 
effort to comply with the requirements of the provi-
sions referred to in paragraph (2) or for any non- 
material violation of such requirements.’’. 
SEC. 7. MAXIMUM COVERAGE LIMITS. 
Subsection (b) of section 1306 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended— 
(1) in paragraph (2), by striking ‘‘$250,000’’ 
and inserting ‘‘$335,000’’; 
(2) in paragraph (3), by striking ‘‘$100,000’’ 
and inserting ‘‘$135,000’’; and 
(3) in paragraph (4), by striking ‘‘$500,000’’ 
each place such term appears and inserting 
‘‘$670,000’’. 
SEC. 8. COVERAGE FOR ADDITIONAL LIVING EXPENSES, 
BASEMENT 
IMPROVEMENTS, 
BUSINESS 
INTERRUPTION, AND REPLACEMENT COST 
OF CONTENTS. 
Subsection (b) of section 1306 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4013) is amended— 
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(1) in paragraph (4), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (5)— 
(A) by inserting ‘‘pursuant to paragraph 
(2), (3), or (4)’’ after ‘‘any flood insurance cov-
erage’’; and 
(B) by striking the period at the end and 
inserting a semicolon; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(6) in the case of any residential property, 
each renewal or new contract for flood insurance 
coverage shall provide not less than $1,000 aggre-
gate liability per dwelling unit for any necessary in-
creases in living expenses incurred by the insured 
when losses from a flood make the residence unfit to 
live in, which coverage shall be available only at 
chargeable rates that are not less than the estimated 
premium rates for such coverage determined in ac-
cordance with section 1307(a)(1); 
‘‘(7) in the case of any residential property, op-
tional coverage for additional living expenses de-
scribed in paragraph (6) shall be made available to 
every insured upon renewal and every applicant in 
excess of the limits provided in paragraph (6) in 
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such amounts and at such rates as the Director 
shall establish, except that such chargeable rates 
shall not be less than the estimated premium rates 
for such coverage determined in accordance with sec-
tion 1307(a)(1); 
‘‘(8) in the case of any residential property, op-
tional coverage for losses, resulting from floods, to 
improvements and personal property located in base-
ments, crawl spaces, and other enclosed areas under 
buildings that are not covered by primary flood in-
surance coverage under this title, shall be made 
available to every insured upon renewal and every 
applicant, except that such coverage shall be made 
available only at chargeable rates that are not less 
than the estimated premium rates for such coverage 
determined in accordance with section 1307(a)(1); 
‘‘(9) in the case of any commercial property, 
optional coverage for losses resulting from any par-
tial or total interruption of the insured’s business 
caused by damage to, or loss of, such property from 
a flood shall be made available to every insured upon 
renewal and every applicant, except that— 
‘‘(A) for purposes of such coverage, losses 
shall be determined based on the profits the 
covered business would have earned, based on 
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previous financial records, had the flood not oc-
curred; and 
‘‘(B) such coverage shall be made available 
only at chargeable rates that are not less than 
the estimated premium rates for such coverage 
determined 
in 
accordance 
with 
section 
1307(a)(1); and 
‘‘(10) in the case of any residential property 
and any commercial property, optional coverage for 
the full replacement costs of any contents related to 
the structure that exceed the limits of coverage oth-
erwise provided in this subsection shall be made 
available to every insured upon renewal and every 
applicant, except that such coverage shall be made 
available only at chargeable rates that are not less 
than the estimated premium rates for such coverage 
determined in accordance with section 1307(a)(1).’’. 
SEC. 9. INCREASE IN ANNUAL LIMITATION ON PREMIUM IN-
CREASES. 
Section 1308(e) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015(e)) is amended by striking ‘‘10 
percent’’ and inserting ‘‘15 percent’’. 
SEC. 10. INCREASE IN BORROWING AUTHORITY. 
(a) BORROWING AUTHORITY.—The first sentence of 
subsection (a) of section 1309 of the National Flood In-
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surance Act of 1968 (42 U.S.C. 4016(a)), as amended by 
the National Flood Insurance Program Further Enhanced 
Borrowing Authority Act of 2005 (Public Law 109–106; 
119 
Stat. 
2288), 
is 
amended 
by 
striking 
‘‘$18,500,000,000’’ and inserting ‘‘$25,000,000,000’’. 
(b) FEMA REPORT.—Not later than the expiration 
of the 6-month period beginning on the date of the enact-
ment of this Act, the Director of the Federal Emergency 
Management Agency shall submit a report to the Congress 
setting forth a plan for repaying any amounts borrowed 
pursuant to increase in borrowing authority authorized 
under the amendments made by subsection (a). 
SEC. 11. FEMA PARTICIPATION IN STATE DISASTER CLAIMS 
MEDIATION PROGRAMS. 
The National Flood Insurance Act of 1968 is amend-
ed by inserting after section 1313 (42 U.S.C. 4020) the 
following new section: 
‘‘SEC. 1314. FEMA PARTICIPATION IN STATE DISASTER 
CLAIMS MEDIATION PROGRAMS. 
‘‘(a) REQUIREMENT TO PARTICIPATE.—In the case 
of the occurrence of a natural catastrophe that may result 
in flood damage claims under the national flood insurance 
program, upon a request made by the insurance commis-
sioner of a State (or such other official responsible for reg-
ulating the business of insurance in the State) for the par-
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ticipation of representatives of the Director in a program 
sponsored by such State for nonbinding mediation of in-
surance claims resulting from a natural catastrophe, the 
Director shall cause appropriate representatives of na-
tional flood insurance program to participate in such State 
program to expedite settlement of any flood damage 
claims under the national flood insurance program result-
ing from such catastrophe. 
‘‘(b) EXTENT OF PARTICIPATION.—Participation by 
representatives of the Director required under subsection 
(a) with respect to flood damage claims resulting from a 
natural catastrophe shall include— 
‘‘(1) providing adjusters certified for purposes 
of the national flood insurance program who are au-
thorized to settle claims against such program re-
sulting from such catastrophe in amounts up to the 
limits of policies under such program; 
‘‘(2) requiring such adjusters to attend State- 
sponsored mediation meetings regarding flood insur-
ance claims resulting from such catastrophe at times 
and places as may be arranged by the State; 
‘‘(3) participating in good-faith negotiations to-
ward the settlement of such claims with policy-
holders of coverage made available under the na-
tional flood insurance program; and 
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‘‘(4) finalizing the settlement of such claims on 
behalf of the national flood insurance program with 
such policyholders. 
‘‘(c) COORDINATION.—Adjusters representing the na-
tional flood insurance program who participate pursuant 
to subsection (b)(1) in a State-sponsored mediation pro-
gram with respect to a natural catastrophe shall at all 
times coordinate their activities with insurance officials of 
the State and representatives of insurers for the purpose 
of consolidating and expediting the settlement of claims 
under the national flood insurance program resulting from 
such catastrophe at the earliest possible time.’’. 
SEC. 12. FEMA REPORTS ON FINANCIAL STATUS OF INSUR-
ANCE PROGRAM. 
Section 1320 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4027) is amended— 
(1) in the section heading, by striking ‘‘RE-
PORT TO THE PRESIDENT’’ and inserting ‘‘RE-
PORTS’’; 
(2) in subsection (a), by striking ‘‘IN GEN-
ERAL’’ and inserting ‘‘BIENNIAL REPORT TO PRESI-
DENT’’; and 
(3) by adding at the end the following new sub-
section: 
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‘‘(c) SEMIANNUAL REPORTS TO CONGRESS ON FI-
NANCIAL STATUS.—Not later than June 30 and December 
31 of each year, the Director shall submit a report to the 
Congress regarding the financial status of the national 
flood insurance program under this title. Each such report 
shall describe the financial status of the National Flood 
Insurance Fund and current and projected levels of 
claims, premium receipts, expenses, and borrowing under 
the program.’’. 
SEC. 13. EXTENSION OF PILOT PROGRAM FOR MITIGATION 
OF SEVERE REPETITIVE LOSS PROPERTIES. 
Section 1361A of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4102a) is amended as follows: 
(1) FUNDING.—In subsection (k)(1), by strik-
ing ‘‘and 2009’’ and inserting ‘‘2009, 2010, and 
2011’’. 
(2) TERMINATION.—In subsection (l), by strik-
ing ‘‘September 30, 2009’’ and inserting ‘‘September 
30, 2011’’. 
SEC. 14. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 
AND ESCROW IN RESPA GOOD FAITH ESTI-
MATE. 
Subsection (c) of section 5 of the Real Estate Settle-
ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is 
amended by adding at the end the following new sentence: 
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‘‘Each such good faith estimate shall include the following 
conspicuous statements: (1) that flood insurance coverage 
for residential real estate is generally available under the 
National Flood Insurance Program whether or not the 
real estate is located in an area having special flood haz-
ards and that, to obtain such coverage, a home owner or 
purchaser should contact a property insurance agent, 
broker, or company; and (2) that the escrowing of flood 
insurance payments is required for many loans under sec-
tion 102(d) of the Flood Disaster Protection Act of 1973, 
and may be a convenient and available option with respect 
to other loans.’’. 
SEC. 15. REITERATION OF FEMA RESPONSIBILITIES UNDER 
2004 REFORM ACT. 
(a) APPEALS PROCESS.—As directed in section 205 
of the Bunning-Bereuter-Blumenauer Flood Insurance 
Reform Act of 2004 (42 U.S.C. 4011 note), the Director 
of the Federal Emergency Management Agency is again 
directed to, not later than 90 days after the date of the 
enactment of this Act, establish an appeals process 
through which holders of a flood insurance policy may ap-
peal the decisions, with respect to claims, proofs of loss, 
and loss estimates relating to such flood insurance policy 
as required by such section. 
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(b) MINIMUM TRAINING AND EDUCATION REQUIRE-
MENTS.—The Director of the Federal Emergency Man-
agement Agency is directed to continue to work with the 
insurance industry, State insurance regulators, and other 
interested parties to implement the minimum training and 
education standards for all insurance agents who sell flood 
insurance policies that were established by the Director 
under the notice published September 1, 2005 (70 Fed. 
Reg. 52117) pursuant to section 207 of the Bunning-Be-
reuter-Blumenauer Flood Insurance Reform Act of 2004 
(42 U.S.C. 4011 note). 
(c) REPORT.—Not later than the expiration of the 6- 
month period beginning on the date of the enactment of 
this Act, the Director of the Federal Emergency Manage-
ment Agency shall submit a report to the Congress de-
scribing the implementation of each provision of the 
Bunning-Bereuter-Blumenauer Flood Insurance Reform 
Act of 2004 (Public Law 108–264) and identifying each 
regulation, order, notice, and other material issued by the 
Director in implementing each such provision. 
SEC. 16. UPDATING OF FLOOD MAPS AND ELEVATION 
STANDARDS. 
(a) FLOOD MAPPING PROGRAM.—Section 1360 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 
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4101) is amended by adding at the end the following new 
subsection: 
‘‘(k) PROGRAM TO REVIEW, UPDATE, AND MAINTAIN 
FLOOD INSURANCE PROGRAM MAPS.— 
‘‘(1) IN GENERAL.—The Director, in coordina-
tion with the Technical Mapping Advisory Council 
established pursuant to section 576 of the National 
Flood Insurance Reform Act of 1994 (42 U.S.C. 
4101 note) and section 16(c) of the Flood Insurance 
Reform and Modernization Act of 2006, shall estab-
lish a program under which the Director shall re-
view, update, and maintain national flood insurance 
program rate maps in accordance with this sub-
section. 
‘‘(2) INCLUSIONS.— 
‘‘(A) COVERED
AREAS.—Each map up-
dated under this subsection shall include a de-
piction of— 
‘‘(i) the 500-year floodplain; 
‘‘(ii) areas that could be inundated as 
a result of the failure of a levee, as deter-
mined by the Director; and 
‘‘(iii) areas that could be inundated as 
a result of the failure of a dam, as identi-
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fied under the National Dam Safety Pro-
gram Act (33 U.S.C. 467 et seq.). 
‘‘(B) OTHER
INCLUSIONS.—In updating 
maps under this subsection, the Director may 
include— 
‘‘(i) any relevant information on 
coastal inundation from— 
‘‘(I) an applicable inundation 
map of the Corps of Engineers; and 
‘‘(II) data of the National Oce-
anic and Atmospheric Administration 
relating to storm surge modeling; 
‘‘(ii) any relevant information of the 
Geographical Service on stream flows, wa-
tershed characteristics, and topography 
that is useful in the identification of flood 
hazard areas, as determined by the Direc-
tor; and 
‘‘(iii) a description of any hazard that 
might impact flooding, including, as deter-
mined by the Director— 
‘‘(I) land subsidence and coastal 
erosion areas; 
‘‘(II) sediment flow areas; 
‘‘(III) mud flow areas; 
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