title, in the case of any area that previously was not des-
ignated as an area having special flood hazards because 
the area was protected by a flood protection system and 
that, pursuant to remapping under section 1360(k), be-
comes designated as such an area as a result of the decer-
tification of such flood protection system, during the 5- 
year period that begins upon the initial such designation 
of the area, the chargeable premium rate for flood insur-
ance under this title with respect to any property that is 
located within such area shall be equal to 50 percent of 
the chargeable risk premium rate otherwise applicable 
under this title to the property.’’. 
(f) PHASE-IN OF FLOOD INSURANCE PREMIUMS FOR 
LOW-COST PROPERTIES.—Section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015), as amend-
ed by the preceding provisions of this Act, is further 
amended— 
(1) in subsection (c), by inserting ‘‘and sub-
section (h)’’ before the first comma; and 
(2) by adding at the end the following new sub-
section: 
‘‘(h) 5-YEAR PHASE-IN OF PREMIUMS FOR NEWLY 
COVERED LOW-COST PROPERTIES.— 
‘‘(1) IN GENERAL.—In the case of any area not 
previously designated as an area having special flood
hazards that becomes designated as such an area as 
a result of remapping pursuant to section 1360(k), 
during the 5-year period that begins upon the initial 
such designation of the area, the chargeable pre-
mium rate for flood insurance under this title with 
respect to any low-cost property that is located with-
in such area shall be— 
‘‘(A) for the first year of such 5-year pe-
riod, 20 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; 
‘‘(B) for the second year of such 5-year pe-
riod, 40 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; 
‘‘(C) for the third year of such 5-year pe-
riod, 60 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; 
‘‘(D) for the fourth year of such 5-year pe-
riod, 80 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; and 
‘‘(E) for the fifth year of such 5-year pe-
riod, 100 percent of the chargeable risk pre-
mium rate otherwise applicable under this title 
to the property. 
‘‘(2) LOW-COST
PROPERTY.—For purposes of 
this subsection, the term ‘low-cost property’ means 
a single-family dwelling, or a dwelling unit in a resi-
dential structure containing more than one dwelling 
unit, that— 
‘‘(A) is the principal residence of the owner 
or renter occupying the dwelling or unit; and 
‘‘(B) has a value, at the time of the initial 
designation of the area having special flood haz-
ards, that does not exceed 75 percent of median 
home value for the State in which the property 
is located.’’. 
SEC. 23. NOTIFICATION AND APPEAL OF MAP CHANGES; 
NOTIFICATION 
OF 
ESTABLISHMENT 
OF 
FLOOD ELEVATIONS. 
Section 1363 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4104) is amended by striking the section 
designation and all that follows through the end of sub-
section (a) and inserting the following: 
‘‘SEC. 1363. (a) In establishing projected flood ele-
vations for land use purposes with respect to any commu-
nity pursuant to section 1361, the Director shall first pro-
pose such determinations—
‘‘(1) by providing the chief executive officer of 
each community affected by the proposed elevations, 
by certified mail, with a return receipt requested, 
notice of the elevations, including a copy of the maps 
for the elevations for such community and a state-
ment explaining the process under this section to ap-
peal for changes in such elevations; 
‘‘(2) by causing notice of such elevations to be 
published in the Federal Register, which notice shall 
include information sufficient to identify the ele-
vation determinations and the communities affected, 
information explaining how to obtain copies of the 
elevations, and a statement explaining the process 
under this section to appeal for changes in the ele-
vations; 
‘‘(3) by publishing in a prominent local news-
paper the elevations, a description of the appeals 
process for flood determinations, and the mailing ad-
dress and telephone number of a person the owner 
may contact for more information or to initiate an 
appeal; and 
‘‘(4) by providing written notification, by first 
class mail, to each owner of real property affected by 
the proposed elevations of—
‘‘(A) the status of such property, both 
prior to and after the effective date of the pro-
posed determination, with respect to flood zone 
and flood insurance requirements under this 
Act and the Flood Disaster Protection Act of 
1973; 
‘‘(B) the process under this section to ap-
peal a flood elevation determination; and 
‘‘(C) the mailing address and phone num-
ber of a person the owner may contact for more 
information or to initiate an appeal.’’. 
SEC. 24. CLARIFICATION OF REPLACEMENT COST PROVI-
SIONS, FORMS, AND POLICY LANGUAGE. 
Not later than the expiration of the 3-month period 
beginning on the date of the enactment of this Act, the 
Director of the Federal Emergency Management Agency 
shall— 
(1) in plain language using easy to understand 
terms and concepts, issue regulations, and revise any 
materials made available by such Agency, to clarify 
the applicability of replacement cost coverage under 
the national flood insurance program; 
(2) in plain language using easy to understand 
terms and concepts, revise any regulations, forms, 
notices, guidance, and publications relating to the
full cost of repair or replacement under the replace-
ment cost coverage to more clearly describe such 
coverage to flood insurance policyholders and infor-
mation to be provided by such policyholders relating 
to such coverage, and to avoid providing misleading 
information to such policyholders; 
(3) revise the language in standard flood insur-
ance policies under such program regarding rating 
and coverage descriptions in a manner that is con-
sistent with language used widely in other home-
owners and property and casualty insurance policies, 
including such language regarding classification of 
buildings, basements, crawl spaces, detached ga-
rages, enclosures below elevated buildings, and re-
placement costs; and 
(4) require the use, in connection with flood in-
surance policies, of the supplemental forms devel-
oped pursuant to section 202 of the Bunning-Bereu-
ter-Blumenauer Flood Insurance Reform Act of 
2004 (Public Law 108–264; 118 Stat. 725). 
SEC. 25. AUTHORIZATION OF ADDITIONAL FEMA STAFF. 
Notwithstanding any other provision of law, the Di-
rector of the Federal Emergency Management Agency 
may employ such additional staff as may be necessary to 
carry out all of the responsibilities of the Director pursu-
ant to this Act and the amendments made by this Act. 
There are authorized to be appropriated to Director such 
sums as may be necessary for costs of employing such ad-
ditional staff. 
SEC. 26. EXTENSION OF DEADLINE FOR FILING PROOF OF 
LOSS. 
(a) IN GENERAL.—Section 1312 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4019) is amend-
ed— 
(1) by inserting ‘‘(a) PAYMENT.—’’ before ‘‘The 
Director’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) FILING DEADLINE FOR PROOF OF LOSS.— 
‘‘(1) IN GENERAL.—In establishing any require-
ments regarding notification, proof, or approval of 
claims for damage to or loss of property which is 
covered by flood insurance made available under this 
title, the Director may not require an insured to no-
tify the Director of such damage or loss, submit a 
claim for such damage or loss, or certify to or sub-
mit proof of such damage or loss, before the expira-
tion of the 180-day period that begins on the date 
that such damage or loss occurred.
‘‘(2) EXCEPTIONS.—Notwithstanding any dead-
line established in accordance with paragraph (1), 
the Director may not deny a claim for damage or 
loss described in such paragraph solely for failure to 
meet such deadline if the insured demonstrates any 
good cause for such failure.’’. 
(b) APPLICABILITY.—Subsection (b) of section 1312 
of the National Flood Insurance Act of 1968, as added 
by subsection (a)(2) of this section, shall apply with re-
spect to any claim under which the damage to or loss of 
property occurred on or after the date of the enactment 
of this Act. 
SEC. 27. 5-YEAR EXTENSION OF PROGRAM. 
Section 1319 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4026) is amended by striking ‘‘Sep-
tember 30, 2008’’ and inserting ‘‘September 30, 2013’’. 
SEC. 28. REPORT ON INCLUSION OF BUILDING CODES IN 
FLOODPLAIN MANAGEMENT CRITERIA. 
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 Management Agency 
shall conduct a study and submit a report to the Com-
mittee on Financial Services of the House of Representa-
tives and the Committee on Banking, Housing and Urban 
Affairs of the Senate regarding the impact, effectiveness,
and feasibility of amending section 1361 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4102) to include 
widely used and nationally recognized building codes as 
part of the floodplain management criteria developed 
under such section, and shall determine— 
(1) the regulatory, financial, and economic im-
pacts of such a building code requirement on home-
owners, States and local communities, local land use 
policies, and the Federal Emergency Management 
Agency; 
(2) the resources required of State and local 
communities to administer and enforce such a build-
ing code requirement; 
(3) the effectiveness of such a building code re-
quirement in reducing flood-related damage to build-
ings and contents; 
(4) the impact of such a building code require-
ment on the actuarial soundness of the National 
Flood Insurance Program; 
(5) the effectiveness of nationally recognized 
codes in allowing innovative materials and systems 
for flood-resistant construction; and 
(6) the feasibility and effectiveness of providing 
an incentive in lower premium rates for flood insur-
ance coverage under such Act for structures meeting
whichever of such widely used and nationally recog-
nized building code or any applicable local building 
code provides greater protection from flood damage. 
SEC. 29. STUDY OF ECONOMIC EFFECTS OF CHARGING AC-
TUARIALLY-BASED 
PREMIUM 
RATES 
FOR 
PRE-FIRM STRUCTURES. 
(a) STUDY.—The Director of the Federal Emergency 
Management Agency (in this section referred to as the 
‘‘Director’’) shall conduct a study of the economic effects 
that would result from increasing premium rates for flood 
insurance coverage made available under the national 
flood insurance program for non-primary residences and 
non-residential pre-FIRM structures (as such term is de-
fined in section 578(b) of the National Flood Insurance 
Reform Act of 1994 (42 U.S.C. 4014 note) to the full 
actuarial risk based premium rate determined under sec-
tion 1307(a)(1) of the National Flood Insurance Act of 
1968 for the area in which the property is located. In con-
ducting the study, the Director shall— 
(1) determine each area that would be subject 
to such increased premium rates; and 
(2) for each such area, determine— 
(A) the amount by which premium rates 
would be increased;
(B) the number and types of properties af-
fected and the number and types of properties 
covered by flood insurance under this title likely 
to cancel such insurance if the rate increases 
were made; 
(C) the effects that the increased premium 
rates would have on land values and property 
taxes; and 
(D) any other effects that the increased 
premium rates would have on the economy, 
homeowners, and renters of non-primary resi-
dences. 
(b) REPORT.—The Director shall submit a report to 
the Congress describing and explaining the findings of the 
study conducted under this section. The report shall be 
submitted not later than 12 months after the date of the 
enactment of this Act. 
SEC. 30. PROHIBITION ON ENFORCEMENT OF PENALTY AS-
SESSED ON CONDOMINIUM ASSOCIATIONS. 
Notwithstanding any other provision of law, the Di-
rector of the Federal Emergency Management Agency 
shall not apply or enforce any penalty relating to the na-
tional flood insurance program assessed, during 2005 or 
thereafter, on condominium associations that are under-
insured under such program.
SEC. 31. REPORT OF ADMINISTRATIVE EXPENSES OF 
WRITE-YOUR-OWN INSURERS; INDEPENDENT 
AUDITS. 
Section 1348 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4084) is amended by adding at the end 
the following new subsections: 
‘‘(c) Any insurance company or other private organi-
zation executing any contract, agreement, or other appro-
priate arrangement with the Director under this part 
shall— 
‘‘(1) annually submit to the Director a record 
of all administrative and operating costs of the pro-
gram undertaken; and 
‘‘(2) biennially submit to the Director an inde-
pendent audit of the program undertaken that is 
conducted by a certified public accountant to ensure 
that payments made are proper and in accordance 
with this Act. 
‘‘(d) The Director shall review the records and audits 
submitted under paragraphs (1) and (2) of subsection (c) 
to determine if such payments are reasonable and if the 
system by which the Director makes payments to an insur-
ance company or other private organization under this 
part should be revised.’’.
SEC. 32. PLAN TO VERIFY MAINTENANCE OF FLOOD INSUR-
ANCE ON MISSISSIPPI AND LOUISIANA PROP-
ERTIES 
RECEIVING 
EMERGENCY 
SUPPLE-
MENTAL FUNDS. 
The Director of the Federal Emergency Management 
Agency shall develop and implement a plan to verify that 
persons receiving funds under the Homeowner Grant As-
sistance Program of the State of Mississippi or the Road 
Home Program of the State of Louisiana from amounts 
allocated to the State of Mississippi or the State of Lou-
isiana, respectively, from the Community development 
fund under the Emergency Supplemental Appropriations 
Act to Address Hurricanes in the Gulf of Mexico and Pan-
demic Influenza, 2006 (Public Law 109-148) are main-
taining flood insurance on the property for which such 
persons receive such funds as required by each such Pro-
gram. 
SEC. 33. GAO STUDY OF FACTORS AFFECTING ENROLL-
MENT IN MULTIPERIL INSURANCE PROGRAM. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study to identify and ana-
lyze factors affecting enrollment in the multiperil insur-
ance program. Such study shall include a study of the ef-
fects of the multiperil insurance program on enrollment 
and pricing of State residual property and casualty mar-
kets or plans and State catastrophe plans.
(b) REPORT.—Not later than 270 days after the date 
of the enactment of this Act, the Comptroller General shall 
submit to Congress a report containing the conclusions of 
the study conducted under subsection (a). 
SEC. 34. NATIONAL FLOOD INSURANCE ADVOCATE; RE-
PORTS. 
Chapter II of the National Flood Insurance Act of 
1968 is amended by inserting after section 1330 (42 
U.S.C. 4041) the following new section: 
‘‘SEC. 1330A. NATIONAL FLOOD INSURANCE ADVOCATE. 
‘‘(a) ESTABLISHMENT OF POSITION.— 
‘‘(1) IN GENERAL.—There shall be in the Fed-
eral Emergency Management Agency a National 
Flood Insurance Advocate. The National Flood In-
surance Advocate shall report directly to the Direc-
tor and shall, to the extent amounts are provided 
pursuant to subsection (c), be compensated at the 
same rate as the highest rate of basic pay estab-
lished for the Senior Executive Service under section 
5382 of title 5, United States Code, or, if the Direc-
tor so determines, at a rate fixed under section 9503 
of such title. 
‘‘(2) APPOINTMENT.—The National Flood In-
surance Advocate shall be appointed by the Director 
and the flood insurance advisory committee estab-
lished pursuant to section 1318 (42 U.S.C. 4025) 
and without regard to the provisions of title 5, 
United States Code, relating to appointments in the 
competitive service or the Senior Executive Service. 
‘‘(3) 
QUALIFICATIONS.—An 
individual 
ap-
pointed under paragraph (2) shall have— 
‘‘(A) a background in customer service as 
well as insurance; and 
‘‘(B) experience in representing individual 
insureds. 
‘‘(4) RESTRICTION ON EMPLOYMENT.—An indi-
vidual may be appointed as the National Flood In-
surance Advocate only if such individual was not an 
officer or employee of the Federal Emergency Man-
agement Agency with duties relating to the national 
flood insurance program during the 2-year period 
ending with such appointment and such individual 
agrees not to accept any employment with the Fed-
eral Emergency Management Agency for at least 5 
years after ceasing to be the National Flood Insur-
ance Advocate. Service as an employee of the Na-
tional Flood Insurance Advocate shall not be taken 
into account in applying this paragraph. 
‘‘(5) STAFF.—To the extent amounts are pro-
vided pursuant to subsection (c), the National Flood
Insurance Advocate may employ such personnel as 
may be necessary to carry out the duties of the Ad-
vocate. 
‘‘(b) DUTIES.—The duties of the National Flood In-
surance Advocate shall be to conduct studies with respect 
to, and submit, the following reports: 
‘‘(1) REPORT
ON
PROBLEMS
OF
INSUREDS 
UNDER NATIONAL FLOOD INSURANCE PROGRAM.— 
Not later than the expiration of the 12-month period 
beginning on the date of the enactment of the Flood 
Insurance Reform and Modernization Act of 2007, 
the National Flood Insurance Advocate shall submit 
a report to the Congress regarding the national flood 
insurance program, which shall— 
‘‘(A) identify areas in which insureds 
under such program have problems in dealings 
with the Federal Emergency Management 
Agency relating to such program, and shall con-
tain a summary of at least 20 of the most seri-
ous problems encountered by such insureds, in-
cluding a description of the nature of such 
problems; 
‘‘(B) identify areas of the law relating to 
the flood insurance that impose significant com-
pliance burdens on such insureds or the Federal
Emergency Management Agency, including spe-
cific recommendations for remedying such prob-
lems; 
‘‘(C) identify the 10 most litigated issues 
for each category of such insureds, including 
recommendations for mitigating such disputes; 
‘‘(D) identify the initiatives of the Agency 
to improve services for insureds under the na-
tional flood insurance program and actions 
taken by the Agency with respect to such pro-
gram; 
‘‘(E) contain recommendations for such 
administrative and legislative action as may be 
appropriate to mitigate or resolve problems en-
countered by such insureds; and 
‘‘(F) include such other information as the 
National Flood Insurance Advocate considers 
appropriate. 
‘‘(2) REPORT ON ESTABLISHMENT OF AN OF-
FICE OF THE FLOOD INSURANCE ADVOCATE.—Not 
later than the expiration of the 6-month period be-
ginning on the date of the initial appointment of a 
National Flood Insurance Advocate under this sec-
tion, the Advocate shall submit a report to the Con-
gress regarding the feasibility and effectiveness of