‘‘(B) for mitigation planning, not to exceed 
10 percent of the capitalization grants made to 
the participating entity in a fiscal year; 
‘‘(C) for the reasonable costs of admin-
istering the fund and conducting activities under 
this section, except that such amounts shall not 
exceed $100,000 per year, 2 percent of the cap-
italization grants made to the participating en-
tity in a fiscal year, or 1 percent of the value 
of the entity loan fund, whichever amount is 
greatest, plus the amount of any fees collected by 
the entity for such purpose regardless of the 
source; and 
‘‘(D) to earn interest on the entity loan 
fund. 
‘‘(2) PROHIBITION
ON
DETERMINATION
THAT 
LOAN IS A DUPLICATION.—In carrying out this sec-
tion, Administrator may not determine that a loan is 
a duplication of assistance or a duplication of pro-
grams. 
‘‘(3) PROJECTS AND ACTIVITIES ELIGIBLE FOR 
ASSISTANCE.—Except as provided in this subsection, 
a participating entity may use funds in the entity 
loan fund to provide financial assistance for projects 
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or activities that mitigate the impacts of hazards, in-
cluding— 
‘‘(A) drought and prolonged episodes of in-
tense heat; 
‘‘(B) severe storms, including tornados, 
wind storms, cyclones, and severe winter storms; 
‘‘(C) wildfires; 
‘‘(D) earthquakes; 
‘‘(E) flooding, including the construction, 
repair, or replacement of a non-Federal levee or 
other flood control structure, provided the Ad-
ministrator, in consultation with the Corps of 
Engineers (if appropriate), requires an eligible 
entity to determine that such levee or structure 
is designed, constructed, and maintained in ac-
cordance with sound engineering practices and 
standards equivalent to the purpose for which 
such levee or structure is intended; 
‘‘(F) storm surges; 
‘‘(G) chemical spills that present an immi-
nent threat to life and property; 
‘‘(H) seepage resulting from chemical spills 
and flooding; and 
‘‘(I) any catastrophic event that the entity 
determines appropriate. 
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‘‘(4) 
ZONING
AND
LAND
USE
PLANNING 
CHANGES.—A participating entity may use not more 
than 10 percent of the entity loan fund in a fiscal 
year to provide financial assistance for zoning and 
land use planning changes focused on— 
‘‘(A) the development and improvement of 
zoning and land use codes that incentivize and 
encourage 
low-impact 
development, 
resilient 
wildland-urban interface land management and 
development, 
natural 
infrastructure, 
green 
stormwater management, conservation areas ad-
jacent to floodplains, implementation of water-
shed or greenway master plans, and reconnection 
of floodplains; 
‘‘(B) the study and creation of land use in-
centives that reward developers for greater reli-
ance on low impact development stormwater best 
management practices, exchange density in-
creases for increased open space and improve-
ment of neighborhood catch basins to mitigate 
urban flooding, reward developers for including 
and augmenting natural infrastructure adjacent 
to and around building projects without reliance 
on increased sprawl, and reward developers for 
addressing wildfire ignition; and 
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‘‘(C) the study and creation of an erosion 
response plan that accommodates river, lake, for-
est, plains, and ocean shoreline retreating or 
bluff stabilization due to increased flooding and 
disaster impacts. 
‘‘(5) ADMINISTRATIVE AND TECHNICAL COSTS.— 
For each fiscal year, a participating entity may use 
the amount described in paragraph (1)(C) to— 
‘‘(A) pay the reasonable costs of admin-
istering the programs under this section, includ-
ing the cost of establishing an entity loan fund; 
‘‘(B) provide technical assistance to recipi-
ents of financial assistance from the entity loan 
fund, on the condition that such technical assist-
ance does not exceed 5 percent of the capitaliza-
tion grant made to such entity. 
‘‘(6) LIMITATION
FOR
SINGLE
PROJECTS.—A 
participating entity may not provide an amount 
equal to or more than $5,000,000 to a single hazard 
mitigation project. 
‘‘(f) INTENDED USE PLANS.— 
‘‘(1) IN GENERAL.—After providing for public 
comment and review, and consultation with appro-
priate agencies in an entity, Federal agencies, and 
interest groups, each participating entity shall annu-
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ally prepare and submit to the Administrator a plan 
identifying the intended uses of the entity loan fund. 
‘‘(2) CONTENTS OF PLAN.—An entity intended 
use plan prepared under paragraph (1) shall in-
clude— 
‘‘(A) the integration of entity planning ef-
forts, including entity hazard mitigation plans 
and other programs and initiatives relating to 
mitigation of major disasters carried out by such 
entity; 
‘‘(B) an explanation of the mitigation and 
resiliency benefits the entity intends to achieve 
by— 
‘‘(i) reducing future damage and loss 
associated with hazards; 
‘‘(ii) reducing the number of severe re-
petitive loss structures and repetitive loss 
structures in the entity; 
‘‘(iii) decreasing the number of insur-
ance claims in the entity from injuries re-
sulting from major disasters or other haz-
ards; and 
‘‘(iv) increasing the rating under the 
community rating system under section 
1315(b) of the Housing and Urban Develop-
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