this subsection not later than the expiration of the
2-year period beginning on the date of the enact-
ment of the National Flood Insurance Compliance,
Mitigation, and Erosion Management Act of 1993.
The Director shall submit a report under this para-
graph not less than every 2 years thereafter. Each
report under this paragraph shall include an analysis
of the cost-effectiveness and other accomplishments
and shortcomings of the program and any rec-
ommendations of the Director for legislation regard-
ing the program.’’.
SEC. 302. FUNDING.
Section 1310(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4017(a)) is amended—
(1) in paragraph (4), by striking ‘‘and’’ at the
end;
(2) in paragraph (5), by striking the period at
the end and inserting a semicolon; and
(3) by inserting after paragraph (5) the follow-
ing new paragraph:
‘‘(6) for carrying out the program under section
1315(b);’’.
TITLE IV—MITIGATION OF
FLOOD AND EROSION RISKS
SEC. 401. REPEAL OF FLOODED PROPERTY PURCHASE AND
LOAN PROGRAM.
(a) REPEAL.—Section 1362 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4103) is repealed.
(b) TRANSITION
PHASE.—Notwithstanding sub-
section (a), during the period beginning on the date of
the enactment of this Act and ending on the date that
flood and erosion mitigation insurance is first made gen-
erally available under section 1306a of the National Flood
Insurance Act of 1968, the Director of the Federal Emer-
gency Management Agency may enter into loan and pur-
chase commitments as provided under section 1362 of
such Act (as in effect immediately before the enactment
of this Act).
(c) SAVINGS
PROVISION.—Notwithstanding sub-
section (a), the Director shall take any action necessary
to comply with any purchase or loan commitment entered
into before the expiration of the period referred to in sub-
section (b) pursuant to authority under section 1362 of
the National Flood Insurance Act of 1968 or subsection
(b).
SEC. 402. TERMINATION OF EROSION-THREATENED STRUC-
TURES PROGRAM.
(a) IN GENERAL.—Section 1306 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4013) is amended
by striking subsection (c).
(b) TRANSITION
PHASE.—Notwithstanding sub-
section (a), during the period beginning on the date of
the enactment of this Act and ending on the date that
flood and erosion mitigation insurance is first made gen-
erally available under section 1306a of the National Flood
Insurance Act of 1968, the Director of the Federal Emer-
gency Management Agency may pay amounts under flood
insurance contracts for demolition or relocation of struc-
tures as provided in section 1306(c) of the National Flood
Insurance Act of 1968 (as in effect immediately before the
enactment of this Act).
(c) SAVINGS
PROVISION.—Notwithstanding sub-
section (a), the Director shall take any action necessary
to make payments under flood insurance contracts pursu-
ant to any commitments made before the expiration of the
period referred to in subsection (b) pursuant to the au-
thority under section 1306(c) of the National Flood Insur-
ance Act of 1968 or subsection (b).
SEC. 403. FLOOD AND EROSION DAMAGE MITIGATION IN-
SURANCE.
(a) IN GENERAL.—The National Flood Insurance
Act of 1968 (42 U.S.C. 4001 et seq.) is amended by in-
serting after section 1306 the following new section:
‘‘FLOOD AND EROSION MITIGATION INSURANCE
COVERAGE
‘‘SEC. 1306a. (a) IN GENERAL.—The Director shall
provide, under the flood insurance program under this
title, for mitigation insurance under this section to reduce
damage and losses from future floods to structures located
in special flood hazard areas and other areas and to pre-
vent damages to structures located along shorelines that
are subject to erosion.
‘‘(b) SEPARATE CONTRACT AND PREMIUMS.—The
Director shall make flood and erosion mitigation insurance
available as provided under this section and as a supple-
ment to or under a separate contract for flood insurance
coverage under this title, and shall provide for the estab-
lishment and payment of separate premiums under sub-
section (i) and separate claims under this section for such
mitigation insurance.
‘‘(c) COMMUNITY ELIGIBILITY REQUIREMENTS FOR
EROSION MITIGATION COVERAGE.—Mitigation insurance
claim payments for the purposes of relocating or demolish-
ing structures subject to imminent erosion damage under
subsection (f)(2)(C) may not be provided under this sec-
tion unless an appropriate public body shall have adopted
erosion management measures that contain the following
requirements:
‘‘(1) PROHIBITION
OF
CONSTRUCTION
IN
30-
YEAR EROSION SETBACK AREAS.—New or substan-
tially improved construction (as defined by the Di-
rector) shall not be permitted within the 30-year
erosion setback determined by the Director under
section 1360(g).
‘‘(2) LIMITED CONSTRUCTION IN 60-YEAR ERO-
SION SETBACK AREAS.—Only readily movable new
and substantially improved construction that con-
sists of 1 to 4 dwelling units, and structures relo-
cated pursuant to subsection (h)(1)(A)(i) shall be
permitted within the 60-year erosion setback deter-
mined by the Director under section 1360(g).
‘‘(d) AVAILABLE AND REQUIRED COVERAGE.—
‘‘(1) REQUIRED COVERAGE.—Each Federal in-
strumentality responsible for the supervision, ap-
proval, regulation, or insuring of banks, savings and
loan associations, or similar institutions shall by reg-
ulation direct such institutions not to make, in-
crease, extend, or renew, after the expiration of the
1-year period beginning on the date of the enact-
ment of the National Flood Insurance Compliance,
Mitigation, and Erosion Management Act of 1993,
any loan secured by improved real estate or a mobile
home described in this paragraph, unless the build-
ing or mobile home and any personal property secur-
ing such loan is covered for the term of the loan by
mitigation insurance under this section at a rate de-
termined necessary by the Director. Mitigation in-
surance shall be required under this paragraph for
any property—
‘‘(A) located in an area of special flood
hazards on which a structure was constructed
before the adoption of a flood insurance rate
map under section 1360(a)(2) by the relevant
community participating in the flood insurance
program under this title; or
‘‘(B) located in an erosion hazard zone (as
determined by the Director under section
1360(g)) along the shoreline of the Great Lakes
or the tidal waters of the United States, in a
community that has adopted adequate erosion
management measures under subsection (c) of
this section.
‘‘(2) AVAILABLE
COVERAGE.—The Director
may make available mitigation insurance for any
property not required to be covered under paragraph
(1) that is—
‘‘(A) located in an area of special flood
hazards on which a structure was constructed
or substantially improved after the adoption of
a flood insurance rate map under section
1360(a)(2) by the relevant community partici-
pating in the flood insurance program under
this title; or
‘‘(B) not located in an area of special flood
hazards.
‘‘(3) EROSION
HAZARD
ZONE
SURCHARGE.—
The Director shall assess surcharges under sub-
section (i)(2) on the flood insurance contracts for
any structure located along the shoreline of the
Great Lakes or the coastline of the tidal waters of
the United States in an erosion hazard zone (as de-
termined by the Director under section 1360(g)) if
the structure is located in a community that has not
adopted the erosion management measures under
subsection (c) of this section.
‘‘(4) CERTIFICATION OF EROSION DANGER.—
The Director shall provide for determination and
certification under subsection (f)(2)(C)(i) of struc-
tures subject to imminent danger of collapse or sub-
sidence located in communities that have not adopt-
ed the erosion management measures under sub-
section (c).
‘‘(e) ELIGIBLE STRUCTURES.—A contract for mitiga-
tion insurance under this section shall provide for payment
of a claim only for structures that, at the time of the event
for which the claim is made, have been continuously cov-
ered by both flood and mitigation insurance as follows:
‘‘(1) 5-YEAR FLOOD INSURANCE COVERAGE.—
The structure shall have been covered by a contract
for flood insurance under this title for the shorter
of—
‘‘(A) the 5-year period ending on the date
of the event for which the claim is made; or
‘‘(B) the period beginning on the date of
purchase of the structure by the owner making
the claim.
‘‘(2) 5-YEAR
MITIGATION
INSURANCE
COV-
ERAGE.—The structure shall have been covered by a
contract for mitigation insurance under this section
for the shorter of—
‘‘(A) the 5-year period ending on the date
of the event for which the claim is made;
‘‘(B) the period beginning on the date of
the availability of mitigation insurance under
this section; or
‘‘(C) the period beginning on the date of
purchase of the structure by the owner making
the claim.
‘‘(f) ELIGIBLE DAMAGE AND MITIGATION CLAIMS.—
A contract for mitigation insurance under this section
shall provide for payment of a claim for mitigation activi-
ties under subsection (g) or (h) only for structures eligible
under subsection (e) that suffer any of the following dam-
age or imminent damage:
‘‘(1) FLOOD
DAMAGE.—The structure shall
have—
‘‘(A) incurred flood damage on not less
than 2 previous occasions (including the event
for which the claim is made) during the 5-year
period ending on the date of the event for which
the claim is made, the damage for which on av-
erage is greater than 25 percent of the value of
the structure (as determined by the Director ac-
cording to the procedure under subsection
(h)(2)(A)); or
‘‘(B) incurred substantial flood damage (as
such term is defined by the Director) as a re-
sult of the event for which the claim is made.
‘‘(2) IMMINENT EROSION DAMAGE.—The struc-
ture shall be—
‘‘(A) located on land that is along the
shoreline of the Great Lakes or the tidal waters
of the United States, in an erosion hazard zone
determined by the Director under section
1360(g);
‘‘(B) located in a community that has
adopted the erosion management measures
under subsection (c); and
‘‘(C) subject to imminent danger of col-
lapse or subsidence as a result of erosion or un-
dermining caused by waves, currents of water,
or bluff recession, as—
‘‘(i) certified by the Director or the
appropriate Federal, State, or local author-
ity (as the Director shall determine); or
‘‘(ii) condemned by the appropriate
State or local authority.
‘‘(g) CLAIMS
FOR REPETITIVE
OR SUBSTANTIAL
FLOOD DAMAGE.—Claims under a contract for mitigation
insurance for flood damage described under subsection
(f)(1) shall be subject to the following requirements:
‘‘(1) 
USE
OF
PAYMENT
AMOUNTS.—Any
amounts received for payment of a claim under such
subsection may be used only as follows:
‘‘(A) MITIGATION ACTIVITIES.—For activi-
ties to demolish, relocate, elevate, or floodproof
a structure, as the Director shall determine
after evaluating—
‘‘(i) the extent of damage;
‘‘(ii) the physical characteristics of the
structure;
‘‘(iii) the severity of the 100-year fre-
quency flood at the site of the structure;
and
‘‘(iv) any applicable State and local
regulations and codes.
‘‘(B) COST
EFFECTIVENESS.—For activi-
ties that are the most cost-effective and tech-
nically feasible, in the determination of the Di-
rector, with respect to affording the structure
protection from the 100-year frequency flood
and enabling the structure to comply with the
land use and control measures adopted by the
community under section 1315(a), except that
if no cost-effective or technically feasible activi-
ties are available, the Director may, on a case-
by-case basis, consider and permit use of such
amounts for alternative activities that do not
fully enable a structure to comply with such
standards.
‘‘(C) REQUIRED
USE
OF
SUBSTANTIAL
FLOOD
DAMAGE
PAYMENT
AMOUNTS.—If re-
ceived for payment of a claim for substantial
flood damage described under subparagraph
(B) of subsection (f)(1), the payment shall be
used as provided under this paragraph for ac-
tivities that afford the structure protection from
the 100-year frequency flood and enable the
structure to comply with the land use and con-
trol measures adopted by the community under
section 1315(a).
‘‘(2) EFFECT OF PAYMENT OF CLAIM.—
‘‘(A) 
COMPLIANCE
WITH
FLOODPLAIN
MANAGEMENT MEASURES.—For any structure
for which a payment is to be made on a claim
under a contract for mitigation insurance for
flood damage described under subparagraph (A)
or (B) of subsection (f)(1) for the purpose of
affording the structure protection from the 100-