ance Reform Act of 1994 (42 U.S.C. 4014 note)), 
which shall include determinations of— 
(A) the number of pre-FIRM properties 
for which coverage is provided and the extent of 
such coverage; 
(B) the cost of providing coverage for such 
pre-FIRM properties to the national flood in-
surance program; 
(C) the anticipated rate at which such pre- 
FIRM properties will cease to be covered under 
the program; and 
(D) the effects that implementation of the 
Bunning-Bereuter-Blumenauer Flood Insurance 
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 
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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-
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-
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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 
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: 
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‘‘(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 ‘‘the limitations provided under 
paragraphs (1) and (2)’’ and inserting ‘‘sub-
section (e)’’; and 
(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 
January 1, 2011, except as provided in paragraph 
(2) of this subsection. 
(2) TRANSITION FOR PROPERTIES COVERED BY 
FLOOD INSURANCE UPON EFFECTIVE DATE.— 
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(A) INCREASE OF RATES OVER TIME.—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, as of the ef-
fective date under paragraph (1) of this sub-
section, is covered under a policy for flood in-
surance made available under the national flood 
insurance program for which the chargeable 
premium rates are less than the applicable esti-
mated 
risk 
premium 
rate 
under 
section 
1307(a)(1) for the area in which the property 
is located, the Director of the Federal Emer-
gency Management Agency shall increase the 
chargeable premium rates for such property 
over time to such applicable estimated risk pre-
mium rate under section 1307(a)(1). 
(B) ANNUAL
INCREASE.—Such increase 
shall be made by increasing the chargeable pre-
mium rates for the property (after application 
of any increase in the premium rates otherwise 
applicable to such property), once during the 
12-month period that begins upon the effective 
date under paragraph (1) of this subsection and 
once every 12 months thereafter until such in-
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crease is accomplished, by 15 percent (or such 
lesser amount as may be necessary so that the 
chargeable rate does not exceed such applicable 
estimated risk premium rate or to comply with 
subparagraph (C)). Any increase in chargeable 
premium rates for a property pursuant to this 
paragraph shall not be considered for purposes 
of the limitation under section 1308(e) of such 
Act. 
(C) PROPERTIES
SUBJECT
TO
PHASE-IN 
AND ANNUAL INCREASES.—In the case of any 
pre-FIRM property (as such term is defined in 
section 578(b) of the National Flood Insurance 
Reform Act of 1974), the aggregate increase, 
during any 12-month period, in the chargeable 
premium rate for the property that is attrib-
utable to this paragraph or to an increase de-
scribed in section 1308(e) of the National Flood 
Insurance Act of 1968 may not exceed the fol-
lowing percentage: 
(i) NONRESIDENTIAL PROPERTIES.— 
In the case of any property described in 
such section 1308(c)(2), 20 percent. 
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(ii) NON-PRIMARY
RESIDENCES.—In 
the case of any property described in such 
section 1308(c)(3), 25 percent. 
(D) FULL ACTUARIAL RATES.—The provi-
sions of paragraphs (2) and (3) of such section 
1308(c) shall apply to such a property upon the 
accomplishment of the increase under this para-
graph and thereafter. 
SEC. 5. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE 
DATE OF POLICIES. 
Section 1306(c)(2)(A) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4013(c)(2)(A)) is amended 
by inserting before the semicolon the following: ‘‘or is in 
connection with the purchase or other transfer of the prop-
erty for which the coverage is provided (regardless of 
whether a loan is involved in the purchase or transfer 
transaction), but only when such initial purchase of cov-
erage is made not later 30 days after such making, in-
creasing, extension, or renewal of the loan or not later 
than 30 days after such purchase or other transfer of the 
property, as applicable’’. 
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)— 
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(A) in the first sentence, by striking 
‘‘$350’’ and inserting ‘‘$2,000’’; and 
(B) in the last sentence, by striking 
‘‘$100,000’’ and inserting ‘‘$1,000,000; except 
that such limitation shall not apply to a regu-
lated lending institution or enterprise for a cal-
endar year if, in any three (or more) of the five 
calendar years immediately preceding such cal-
endar year, the total amount of penalties as-
sessed under this subsection against such lend-
ing institution or enterprise was $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. MULTIPERIL COVERAGE FOR FLOOD AND WIND-
STORM. 
(a) IN GENERAL.—Section 1304 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4011) is amend-
ed— 
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