I 
116TH CONGRESS 
1ST SESSION H. R. 3872 
To reauthorize the National Flood Insurance Program, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 22, 2019 
Mr. PALLONE (for himself, Mr. HIGGINS of Louisiana, Mr. PASCRELL, Ms. 
SHERRILL, Mr. VAN
DREW, Mr. SIRES, Mr. NORCROSS, Mr. 
MALINOWSKI, Mrs. WATSON COLEMAN, Ms. MUCARSEL-POWELL, Mr. 
CRIST, Mr. PAYNE, Mr. KIM, Mr. SMITH of New Jersey, Mrs. MURPHY, 
and Mr. GOTTHEIMER) introduced the following bill; which was referred 
to the Committee on Financial Services, and in addition to the Committee 
on Transportation and Infrastructure, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To reauthorize the National Flood Insurance Program, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Flood Insur-
ance Program Reauthorization and Reform Act of 2019’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
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Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. Definitions. 
TITLE I—REAUTHORIZATION AND AFFORDABILITY 
Sec. 101. Reauthorization. 
Sec. 102. Cap on annual premium increases. 
Sec. 103. Means tested affordability voucher. 
Sec. 104. Optional monthly installment premium payment plans. 
Sec. 105. Study on business interruption coverage. 
Sec. 106. Cooperative coverage fairness. 
Sec. 107. Coverage limits. 
Sec. 108. Study on participation rates. 
TITLE II—MITIGATION AND MAPPING 
Sec. 201. Mitigation for high-risk properties. 
Sec. 202. Increased cost of compliance coverage. 
Sec. 203. Flood mitigation assistance grants. 
Sec. 204. Urban mitigation opportunities. 
Sec. 205. Community Rating System Regional Coordinator. 
Sec. 206. Mitigation loan program. 
Sec. 207. Revolving loan funds. 
Sec. 208. Mapping modernization. 
Sec. 209. Protected areas. 
Sec. 210. Community-wide flood mitigation activities. 
TITLE III—SOLVENCY 
Sec. 301. Forbearance on NFIP interest payments. 
Sec. 302. Cap on Write Your Own company compensation. 
Sec. 303. Taxpayer protection. 
Sec. 304. Vendor costs; transparency. 
Sec. 305. Availability of NFIP claims data. 
Sec. 306. Refusal of mitigation assistance. 
TITLE IV—POLICYHOLDER PROTECTION AND FAIRNESS 
Sec. 401. Earth movement fix and engineer standards. 
Sec. 402. Coverage of pre-FIRM condominium basements and study on street 
raising. 
Sec. 403. Guidance on remediation and policyholder duties. 
Sec. 404. Appeal of decisions relating to flood insurance coverage. 
Sec. 405. Accountability for underpayments and overpayments by Write Your 
Own companies. 
Sec. 406. Policyholders’ right to know. 
Sec. 407. Increasing statute of limitations for lawsuits. 
Sec. 408. Authority to terminate contractors and vendors. 
Sec. 409. Easing proof of loss requirements. 
Sec. 410. Deadline for claim processing. 
Sec. 411. No manipulation of engineer reports. 
Sec. 412. Improved training of floodplain managers, agents, and adjusters. 
Sec. 413. Attorney fee shifting. 
Sec. 414. DOJ defense against policyholder lawsuits. 
Sec. 415. Pilot program for pre-existing structural conditions. 
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Sec. 416. Agent Advisory Council. 
Sec. 417. Disclosure of flood risk information upon transfer of property. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Federal 
Emergency Management Agency. 
(2) FEDERAL
FLOOD
INSURANCE.—The term 
‘‘Federal flood insurance’’ means an insurance policy 
made available under the National Flood Insurance 
Act of 1968 (42 U.S.C. 4001 et seq.). 
(3) NATIONAL FLOOD INSURANCE PROGRAM.— 
The term ‘‘National Flood Insurance Program’’ 
means the program established under the National 
Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
seq.). 
(4) NATIONAL FLOOD MITIGATION FUND.—The 
term ‘‘National Flood Mitigation Fund’’ means the 
fund established under section 1367 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104d). 
(5) WRITE
YOUR
OWN
COMPANY.—The term 
‘‘Write Your Own Company’’ means a private prop-
erty insurance company that participates in the 
Write Your Own Program. 
(6) WRITE
YOUR
OWN
PROGRAM.—The term 
‘‘Write Your Own Program’’ means the program 
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under which the Federal Emergency Management 
Agency enters into a standard arrangement with pri-
vate property insurance companies to— 
(A) sell contracts for Federal flood insur-
ance under their own business lines of insur-
ance; and 
(B) adjust and pay claims arising under 
the contracts described in subparagraph (A). 
TITLE I—REAUTHORIZATION 
AND AFFORDABILITY 
SEC. 101. REAUTHORIZATION. 
(a) FINANCING.—Section 1309(a) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) is 
amended by striking ‘‘September 30, 2019’’ and inserting 
‘‘September 30, 2024’’. 
(b) PROGRAM EXPIRATION.—Section 1319 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4026) is 
amended by striking ‘‘September 30, 2019’’ and inserting 
‘‘September 30, 2024’’. 
(c) PROGRAM CONTINUATION.— 
(1) IN
GENERAL.—Section 1310 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4017) is amended by adding at the end the fol-
lowing: 
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‘‘(g) Amounts in the National Flood Insurance Re-
serve Fund established under section 1310A may be cred-
ited to the National Flood Insurance Fund to enter into, 
and renew, contracts for flood insurance under this title 
during any lapse in appropriations.’’. 
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—Section 1310A(a)(2) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4017A(a)(2)) is 
amended— 
(A) in subparagraph (B), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(D) for the purpose described in section 
1310(g).’’. 
SEC. 102. CAP ON ANNUAL PREMIUM INCREASES. 
(a) DEFINITION.—In this section, the term ‘‘covered 
cost’’ means— 
(1) the amount of an annual premium with re-
spect to any policy for flood insurance under the Na-
tional Flood Insurance Program; 
(2) any surcharge imposed with respect to a 
policy described in paragraph (1), including a sur-
charge imposed under— 
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(A) section 1304(b) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4011(b)); or 
(B) section 1308A(a) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 
4015a(a)); and 
(3) a fee described in paragraph (1)(B)(iii) or 
(2) of section 1307(a) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4014(a)). 
(b) LIMITATION ON INCREASES.—During the 5-year 
period beginning on the date of enactment of this Act, and 
notwithstanding section 1308(e) of the National Flood In-
surance Act of 1968 (42 U.S.C. 4015(e)), the Adminis-
trator may not, in any year, increase the amount of any 
covered cost by an amount that is more than 9 percent, 
as compared with the amount of the covered cost during 
the previous year. 
(c) RULE
OF CONSTRUCTION.—Nothing in sub-
section (b) may be construed as prohibiting the Adminis-
trator from reducing, in any year, the amount of any cov-
ered cost, as compared with the amount of the covered 
cost during the previous year. 
(d) AVERAGE HISTORICAL LOSS YEAR.—Section 
1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015) is amended by striking subsection (h) and 
inserting the following: 
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‘‘(h) RULE OF CONSTRUCTION.—For purposes of this 
section, the calculation of an ‘average historical loss year’ 
shall be computed in accordance with generally accepted 
actuarial principles.’’. 
(e) DISCLOSURE WITH RESPECT TO THE AFFORD-
ABILITY STANDARD.—Section 1308(j) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(j)) is 
amended, in the second sentence, by inserting ‘‘and shall 
include in the report the number of those exceptions as 
of the date on which the Administrator submits the report 
and the location of each policyholder insured under those 
exceptions, organized by county and State’’ after ‘‘of the 
Senate’’. 
SEC. 103. MEANS TESTED AFFORDABILITY VOUCHER. 
Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.) is amended by adding at 
the end the following: 
‘‘SEC. 1326. AFFORDABILITY ASSISTANCE. 
‘‘(a) AFFORDABILITY ASSISTANCE FUND.— 
‘‘(1) 
ESTABLISHMENT.—The 
Administrator 
shall establish in the Treasury of the United States 
an Affordability Assistance Fund (referred to in this 
section as the ‘Fund’), which shall be— 
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‘‘(A) an account separate from any other 
accounts or funds available to the Adminis-
trator; and 
‘‘(B) available without fiscal year limita-
tion. 
‘‘(2) USE OF FUNDS.—Amounts from the Fund 
shall be available to provide financial assistance 
under subsection (b). 
‘‘(3) SOURCE OF FUNDS.—The Fund shall be 
credited with the amounts saved as a direct result 
of the limitation imposed under section 1311(b). 
‘‘(b) FINANCIAL ASSISTANCE.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘adjusted gross income’ has 
the meaning given the term in section 62 of the 
Internal Revenue Code of 1986; 
‘‘(B) the term ‘eligible household’ means a 
household for which— 
‘‘(i) housing expenses exceed 30 per-
cent of the adjusted gross income of the 
household in a year; and 
‘‘(ii)(I) the total assets owned by the 
household are in an amount that is not 
greater than 220 percent of the median 
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household income for the State in which 
the household is located; or 
‘‘(II) with respect to a household that 
has a total household income that is not 
greater than 120 percent of the area me-
dian income for the area in which the 
household is located, the amount of pre-
miums, surcharges, and fees for a flood in-
surance policy provided under this title in 
a year for the household exceeds 1 percent 
of the coverage limit of that policy under 
section 1306(b); and 
‘‘(C) the term ‘housing expenses’ means, 
with respect to a household, the total amount 
that the household spends in a year on— 
‘‘(i) mortgage payments; 
‘‘(ii) property taxes; 
‘‘(iii) homeowners insurance; and 
‘‘(iv) premiums for flood insurance 
under the national flood insurance pro-
gram. 
‘‘(2) AUTHORITY.— 
‘‘(A) OTHER
FINANCIAL
ASSISTANCE.— 
The Administrator shall provide a voucher, 
grant, or premium credit to an eligible house-
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hold for a year in an amount that, subject to 
subparagraph (B), is equal to the lesser of— 
‘‘(i) the difference between— 
‘‘(I) the housing expenses of the 
household for the year; and 
‘‘(II) 30 percent of the adjusted 
gross income of the household for the 
year; and 
‘‘(ii) the cost of premiums for the 
household for flood insurance under the 
national flood insurance program for the 
year. 
‘‘(B) REDUCTION.—The amount of the as-
sistance provided under subparagraph (A) to an 
eligible household shall be reduced by 1 percent 
for each percent that the income of the eligible 
household exceeds 120 percent of the median 
household income for the State in which the 
property that is the subject of the assistance is 
located. 
‘‘(3) RELATIONSHIPS
WITH
OTHER
AGEN-
CIES.—The Administrator may enter into a memo-
randum of understanding with the head of any other 
Federal 
agency 
to 
administer 
the 
paragraph 
(2)(A).’’. 
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SEC. 104. OPTIONAL MONTHLY INSTALLMENT PREMIUM 
PAYMENT PLANS. 
Section 1308(g) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015(g)) is amended— 
(1) by striking ‘‘With respect to’’ and inserting 
the following: 
‘‘(1) ANNUAL OR MONTHLY OPTION.—Subject 
to paragraph (2), with respect to’’; and 
(2) by adding at the end the following: 
‘‘(2) MONTHLY
INSTALLMENT.—With respect 
to a policyholder that opts under paragraph (1) to 
pay premiums on a monthly basis, the Administrator 
may charge the policyholder an annual fee of not 
more than $15. 
‘‘(3) EXEMPTION FROM RULE MAKING; PILOT 
PROGRAM.—During the period beginning on the date 
of enactment of this paragraph and ending on the 
date on which the Administrator promulgates regu-
lations carrying out paragraph (1), the Adminis-
trator may, notwithstanding any other provision of 
law— 
‘‘(A) adopt policies and procedures to carry 
out that paragraph without— 
‘‘(i) undergoing notice and comment 
rule making under section 553 of title 5, 
United States Code; or 
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‘‘(ii) conducting regulatory analyses 
otherwise required by statute, regulation, 
or Executive order; or 
‘‘(B) carry out that paragraph by estab-
lishing a pilot program that gradually imple-
ments the requirements of that paragraph.’’. 
SEC. 105. STUDY ON BUSINESS INTERRUPTION COVERAGE. 
(a) IN GENERAL.—The Administrator shall conduct 
a study on the feasibility and soundness of offering cov-
erage for interruption business losses caused by a flood 
under the National Flood Insurance Program (referred to 
in this section as ‘‘business interruption coverage’’). 
(b) CONTENTS.—In conducting the study under sub-
section (a), the Administrator shall, at a minimum— 
(1) evaluate insurance industry best practices 
for offering business interruption coverage, including 
the types of coverage provided and the utilization 
rate; 
(2) estimate the potential risk premium rates 
for business interruption coverage based on the flood 
risk reflected in the flood insurance rate map or 
other risk metrics in effect at the time of purchase; 
(3) analyze the operational and administrative 
expenses associated with providing business inter-
ruption coverage and adjusting claims; 
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(4) identify potential obstacles that may prevent 
the Administrator from offering business interrup-
tion coverage; 
(5) evaluate the benefits of providing business 
interruption coverage; 
(6) analyze any potential impacts on the finan-
cial position of the National Flood Insurance Pro-
gram; and 
(7) develop a feasibility implementation plan 
and projected timelines for offering business inter-
ruption coverage. 
(c) AVAILABILITY OF EXPERTS.—In conducting the 
study under subsection (a), the Administrator may accept 
and utilize the personnel and services of any other Federal 
agency, and appoint and fix the compensation of tem-
porary personnel without regard to the provisions of title 
5, United States Code, governing appointments in the 
competitive service, or employ experts and consultants in 
accordance with the provisions of section 3109 of such 
title, without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of such title relating to classi-
fication and General Schedule pay rates. 
(d) DEADLINE.—The Administrator shall complete 
the study required under subsection (a) not later than 
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September 30 of the second full fiscal year after the date 
of enactment of this Act. 
SEC. 106. COOPERATIVE COVERAGE FAIRNESS. 
(a) IN GENERAL.—Section 1306 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4013) is amended 
by adding at the end the following: 
‘‘(e) COOPERATIVES.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘cooperative building’ has the meaning given the 
term in section 1312(d). 
‘‘(2) EQUAL
TREATMENT
WITH
CONDOMIN-
IUMS.—Notwithstanding any other provision of law, 
an owner of a share of a cooperative building shall 
be eligible to purchase flood insurance coverage 
under the national flood insurance program on the 
same terms as a condominium owner.’’. 
(b) PAYMENT OF CLAIMS.—Section 1312 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4019) is 
amended— 
(1) in subsection (c)— 
(A) in the subsection heading, by inserting 
‘‘AND COOPERATIVE’’ after ‘‘CONDOMINIUM’’; 
(B) by inserting ‘‘or owners of a share of 
a cooperative building’’ after ‘‘condominium 
owners’’; and 
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(C) by inserting ‘‘or cooperative associa-
tion’’ after ‘‘condominium association’’ each 
place that term appears; and 
(2) by adding at the end the following: 
‘‘(d) DEFINITIONS.—In this section, the terms ‘coop-
erative association’ and ‘cooperative building’ have the 
meanings given the terms by the Administrator.’’. 
SEC. 107. COVERAGE LIMITS. 
(a) IN GENERAL.—Section 1306 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4013), as amend-
ed by section 106(a), is amended— 
(1) in subsection (b)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘In addition to any other terms and 
conditions under subsection (a), such regula-
tions’’ and inserting ‘‘The Administrator’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘shall be made’’ and 
inserting ‘‘may be made’’; and 
(ii) by striking ‘‘$250,000’’ and in-
serting ‘‘the baseline amount’’; 
(C) in paragraph (3)— 
(i) by striking ‘‘shall be made’’ and 
inserting ‘‘may be made’’; and 
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(ii) by striking ‘‘$100,000’’ and in-
serting ‘‘50 percent of the baseline 
amount’’; and 
(D) in paragraph (4)— 
(i) by striking ‘‘shall be made’’ each 
place that term appears and inserting 
‘‘may be made’’; and 
(ii) by striking ‘‘$500,000’’ each place 
that term appears and inserting ‘‘200 per-
cent of the baseline amount’’; and 
(2) by adding at the end the following: 
‘‘(f) DEFINITION.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
in this section, the term ‘baseline amount’, with re-
spect to a property, means the maximum original 
principal obligation of a conventional mortgage that 
may be purchased by the Federal National Mortgage 
Association in the area in which the property as lo-
cated, as established under section 302(b)(2) of the 
Federal National Mortgage Association Charter Act 
(12 U.S.C. 1717(b)(2)). 
‘‘(2) CLARIFICATION.—If, after the date of en-
actment of this subsection, the baseline amount, as 
defined in paragraph (1), decreases as compared 
with the baseline amount in effect on the day before 
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the date of enactment of this subsection, the base-
line amount that was in effect on the day before the 
date of enactment of this subsection shall be deemed 
to be the baseline amount for the purposes of para-
graphs (2), (3), and (4) of subsection (b).’’. 
(b) AUTHORITY OF ADMINISTRATOR TO SELL POLI-
CIES.—The Administrator may sell a policy for flood in-
surance under the National Flood Insurance Program that 
meets the requirements of paragraphs (2), (3), and (4) 
of section 1306(b) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013(b)), as amended by subsection 
(a), without regard to— 
(1) section 61.6 of title 44, Code of Federal 
Regulations, as in effect on the day before the date 
of enactment of this Act; or 
(2) any other provision of law. 
SEC. 108. STUDY ON PARTICIPATION RATES. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘500-year floodplain’’ has the 
meaning given the term in section 100202(a) of the 
Biggert-Waters Flood Insurance Reform Act of 
2012 (40 U.S.C. 4004(a)); 
(2) the terms ‘‘Federal agency lender’’, ‘‘im-
proved real estate’’, and ‘‘regulated lending institu-
tion’’ have the meanings given those terms in section 
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3(a) of the Flood Disaster Protection Act of 1973 
(42 U.S.C. 4003(a)); and 
(3) the term ‘‘property with a Federally backed 
mortgage’’ means improved real estate or a mobile 
home securing a loan that was— 
(A) made by a regulated lending institu-
tion or Federal agency lender; or 
(B) purchased by the Federal National 
Mortgage Association or the Federal Home 
Loan Mortgage Corporation. 
(b) STUDY.—The Comptroller General of the United 
States shall conduct a study that proposes to address, 
through programmatic and regulatory changes, how to in-
crease the rate at which properties in the United States 
are covered by flood insurance. 
(c) CONSIDERATIONS.—In conducting the study re-
quired under subsection (b), the Comptroller General of 
the United States shall— 
(1) consider— 
(A) expanding participation in the Na-
tional Flood Insurance Program beyond areas 
having special flood hazards to areas of mod-
erate or minimum risk with respect to flooding; 
(B) automatically enrolling consumers in 
the National Flood Insurance Program and 
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providing those consumers with the opportunity 
to decline such enrollment; and 
(C) bundling flood insurance coverage that 
diversifies risk across all or multiple forms of 
peril; and 
(2) determine— 
(A) the percentage of properties with Fed-
erally backed mortgages located in an area hav-
ing special flood hazards that are covered by 
flood insurance that satisfies the requirement 
under section 102(b) of the Flood Disaster Pro-
tection Act of 1973 (42 U.S.C. 4012a(b)); and 
(B) the percentage of properties with Fed-
erally backed mortgages located in the 500-year 
floodplain that are covered by flood insurance 
that would satisfy the requirement described in 
subparagraph (A) if that requirement applied to 
such properties. 
(d) REPORT.—Not later than 18 months after the 
date of enactment of this Act, the Comptroller General 
of the United States shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of Rep-
resentatives a report regarding the results of the study 
conducted under subsection (b). 
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TITLE II—MITIGATION AND 
MAPPING 
SEC. 201. MITIGATION FOR HIGH-RISK PROPERTIES. 
(a) IN GENERAL.—Section 203 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5133) is amended by adding at the end the 
following: 
‘‘(n) FLOOD MITIGATION ACTIVITIES.—The Presi-
dent shall set aside from the Disaster Relief Fund an 
amount equal to 10 percent of the average amount appro-
priated to the Fund during the preceding 10 fiscal years 
to provide assistance for mitigation activities under section 
1366 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4104c) for— 
‘‘(1) severe repetitive loss structures; and 
‘‘(2) properties insured under the national flood 
insurance program with the largest increase in the 
actuarial risk for the property compared to the actu-
arial risk for the previous fiscal year as a result of 
Risk Rating 2.0, as in effect on October 1, 2020.’’. 
(b) APPLICABILITY.—The amendment made to sec-
tion 203 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5133) by subsection 
(a) shall apply to funds appropriated on or after the date 
of enactment of this Act. 
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(c) TECHNICAL AND CONFORMING AMENDMENT.— 
Effective on October 5, 2023, section 203 of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5133) is amended by redesignating subsection 
(n), as added by subsection (a) of this section, as sub-
section (m). 
SEC. 202. INCREASED COST OF COMPLIANCE COVERAGE. 
Section 1304(b) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4011(b)) is amended— 
(1) in paragraph (4), by redesignating subpara-
graphs (A) through (D) as clauses (i) through (iv), 
respectively, and adjusting the margins accordingly; 
(2) by redesignating paragraphs (1) through 
(3) as subparagraphs (A) through (C), respectively, 
and adjusting the margins accordingly; 
(3) in subparagraph (C), as so redesignated, by 
striking the period at the end and inserting a semi-
colon; 
(4) by redesignating paragraph (4) as subpara-
graph (F), and adjusting the margins accordingly; 
(5) by inserting after subparagraph (C), as so 
redesignated, the following: 
‘‘(D) properties identified by the Adminis-
trator as priorities for mitigation activities be-
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fore the occurrence of damage to or loss of 
property which is covered by flood insurance; 
‘‘(E) properties outside an area having 
special flood hazards if the communities in 
which the properties are located have, under 
section 1361, established land use and control 
measures for the areas in which the properties 
are located; and’’; 
(6) by inserting before ‘‘The national flood in-
surance program’’ the following: ‘‘(1) IN
GEN-
ERAL.—’’; 
(7) in the flush text following subparagraph 
(F)(iv), by striking ‘‘The Administrator’’ and insert-
ing the following: 
‘‘(2) PREMIUM.—The Administrator’’; and 
(8) by adding at the end the following: 
‘‘(3) AMOUNT OF COVERAGE.—Each policy for flood 
insurance coverage made available under this title shall 
provide coverage under this subsection having an aggre-
gate liability for any single property of $60,000. 
‘‘(4) ELIGIBLE MITIGATION ACTIVITIES.— 
‘‘(A) IN GENERAL.—Eligible mitigation meth-
ods the cost of which is covered by coverage provided 
under this subsection shall include— 
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‘‘(i) alternative methods of mitigation iden-
tified in the guidelines issued pursuant to sec-
tion 1361(d); 
‘‘(ii) pre-disaster mitigation projects for el-
igible structures; and 
‘‘(iii) costs associated with the purchase, 
clearing, and stabilization of property that is 
part of an acquisition or relocation project that 
complies with subparagraph (B). 
‘‘(B) ACQUISITION AND RELOCATION PROJECT 
ELIGIBILITY AND REQUIREMENTS.— 
‘‘(i) IN GENERAL.—An acquisition or relo-
cation project shall be eligible to receive assist-
ance pursuant to subparagraph (A)(iii) only 
if— 
‘‘(I) any property acquired, accepted, 
or from which a structure will be removed 
shall be dedicated and maintained in per-
petuity for a use that is compatible with 
open space, recreational, or wetland and 
natural floodplain management practices; 
and 
‘‘(II) any new structure erected on 
such property will be— 
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‘‘(aa) a public facility that is 
open on all sides and functionally re-
lated to a designated open space; 
‘‘(bb) a restroom; or 
‘‘(cc) a structure that the Admin-
istrator approves in writing before the 
commencement of the construction of 
the structure. 
‘‘(ii) FURTHER ASSISTANCE.—If an acqui-
sition or relocation project is assisted pursuant 
to subparagraph (A)(iii)— 
‘‘(I) no person may apply to a Federal 
entity for disaster assistance with regard 
to any property acquired, accepted, or 
from which a structure was removed as 
part of such acquisition or relocation 
project; and 
‘‘(II) no Federal entity may provide 
disaster assistance for such property. 
‘‘(iii) REQUIREMENT TO MAINTAIN FLOOD 
INSURANCE COVERAGE.— 
‘‘(I) IN
GENERAL.—Notwithstanding 
any other provision of law, any assisted 
structure shall, at all times, maintain in-
surance against flood damage, in accord-
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ance with Federal law, for the life of such 
structure. 
‘‘(II) TRANSFER OF PROPERTY.— 
‘‘(aa) DUTY TO NOTIFY.—If any 
part of a property on which an as-
sisted structure is located is trans-
ferred, the transferor shall, not later 
than the date on which such transfer 
occurs, notify the transferee in writ-
ing, including in all documents evi-
dencing the transfer of ownership of 
the property, that such transferee is 
required to— 
‘‘(AA) obtain flood insur-
ance in accordance with applica-
ble Federal law with respect to 
such assisted structure, if such 
structure is not so insured on the 
date on which the structure is 
transferred; and 
‘‘(BB) maintain flood insur-
ance in accordance with applica-
ble Federal law with respect to 
such structure. 
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‘‘(bb) FAILURE TO NOTIFY.—If a 
transferor fails to make a notification 
in accordance with item (aa) and such 
assisted structure is damaged by a 
flood disaster, the transferor shall pay 
the Federal Government an amount 
equal to the amount of any disaster 
relief provided by the Federal Govern-
ment with respect to such assisted 
structure. 
‘‘(III) 
ASSISTED
STRUCTURE
DE-
FINED.—For the purposes of this clause, 
the term ‘assisted structure’ means a 
structure on property that is part of an ac-
quisition or relocation project assisted pur-
suant to subparagraph (A) that was, as 
part of such acquisition or relocation 
project— 
‘‘(aa) altered; 
‘‘(bb) improved; 
‘‘(cc) replaced; 
‘‘(dd) repaired; or 
‘‘(ee) restored. 
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‘‘(C) ELIGIBLE
STRUCTURE
DEFINED.—For 
purposes of this paragraph, the term ‘eligible struc-
ture’ means any structure that— 
‘‘(i) was constructed in compliance with 
the Flood Insurance Rate Map and local build-
ing and zoning codes in effect on the date of 
construction of the structure; and 
‘‘(ii) has not previously been altered, im-
proved, replaced, or repaired using assistance 
provided under this subsection. 
‘‘(5) TREATMENT
OF
COVERAGE
LIMITS.—Any 
amount of coverage provided for a property pursuant to 
this subsection shall not be considered or counted for pur-
poses of any limitation on coverage applicable to such 
property under section 1306(b) and any claim on such cov-
erage shall not be considered a claim for purposes of sec-
tion 1307(h) or subsection (a)(3) or (h)(3) of section 
1366. 
‘‘(6) IMPLEMENTATION.—Notwithstanding any other 
provision of law, the Administrator may implement this 
subsection by adopting 1 or more standard endorsements 
to the Standard Flood Insurance Policy by publication of 
such standards in the Federal Register, or by comparable 
means.’’. 
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SEC. 203. FLOOD MITIGATION ASSISTANCE GRANTS. 
(a) FLOOD MITIGATION ASSISTANCE GRANT PRO-
GRAM PRIORITY.—Section 1366 of the National Flood In-
surance Act (42 U.S.C. 4104c) is amended— 
(1) in subsection (a)— 
(A) by redesignating paragraphs (1), (2), 
and (3) as subparagraphs (A), (B), and (C), re-
spectively, and adjusting the margins accord-
ingly; 
(B) in the second sentence of the matter 
preceding subparagraph (A), as so redesig-
nated, by striking ‘‘assistance shall be’’ and in-
serting the following: ‘‘assistance shall— 
‘‘(1) be’’; 
(C) in paragraph (1)(C), as so redesig-
nated, by striking the period at the end and in-
serting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(2) in addition to the requirement under para-
graph (1)(C), give priority to properties— 
‘‘(A) that are repetitive loss structures; 
‘‘(B) with respect to which the Adminis-
trator makes a determination that the premium 
rates with respect to a policy for flood insur-
ance coverage under this title— 
‘‘(i) are unaffordable; or 
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‘‘(ii) will soon become unaffordable as 
a result of a risk adjustment under Risk 
Rating 2.0, as in effect on the date of that 
determination; and 
‘‘(C) for which aggregate losses exceed the 
replacement value of the properties.’’; and 
(2) in subsection (h), by adding at the end the 
following: 
‘‘(4) 
UNAFFORDABLE.—The 
term 
‘unaffordable’ means, with respect to the premium 
rates for a policy for flood insurance coverage under 
this title, that, in a year, those rates are in an such 
an amount that the housing expenses (as defined in 
section 1326(b)(1)) of the household that is the sub-
ject of the policy are, for that year, more than 30 
percent of the adjusted gross income (as defined in 
section 1326(b)(1)) of the household for that year.’’. 
(b) ADDITIONAL MITIGATION ASSISTANCE.— 
(1) APPROPRIATIONS FROM GENERAL FUND OF 
TREASURY.—For each of the first 5 full fiscal years 
after the date of enactment of this Act, there is au-
thorized to be appropriated $1,000,000,000 to the 
National Flood Mitigation Fund to provide mitiga-
tion assistance under this subsection. 
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(2) RULE OF CONSTRUCTION.—The authoriza-
tion of appropriations under subparagraph (A) shall 
not be construed to authorize the transfer or cred-
iting to the National Flood Mitigation Fund of any 
amounts from the National Flood Insurance Fund. 
SEC. 204. URBAN MITIGATION OPPORTUNITIES. 
(a) MITIGATION STRATEGIES.—Section 1361(d)(1) 
of the National Flood Insurance Act of 1968 (42 U.S.C. 
4102(d)(1)) is amended— 
(1) in subparagraph (A), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (B), by striking ‘‘and’’ at 
the end; and 
(3) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) with respect to buildings in dense 
urban environments, methods that can be de-
ployed on a block or neighborhood scale; and 
‘‘(D) elevation of mechanical systems; 
and’’. 
(b) MITIGATION CREDIT.—Section 1308(k) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 
4015(k)) is amended— 
(1) by striking ‘‘shall take into account’’ and 
inserting ‘‘shall— 
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‘‘(1) take into account’’; 
(2) in paragraph (1), as so designated, by strik-
ing the period at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(2) offer a reduction of the risk premium rate 
charged to a policyholder in an amount that is not 
less than 10 percent of that rate if the policyholder 
implements any mitigation method described in 
paragraph (1).’’. 
SEC. 205. COMMUNITY RATING SYSTEM REGIONAL COORDI-
NATOR. 
Section 1315(b) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4022(b)) is amended by adding at the 
end the following: 
‘‘(5) REGIONAL COORDINATOR.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall appoint a regional coordinator in each re-
gion served by a Regional Office (as defined in 
section 501 of the Homeland Security Act of 
2002 (6 U.S.C. 311)) to provide technical as-
sistance to small communities to enable those 
communities to effectively participate in and 
benefit from the community rating system pro-
gram. 
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‘‘(B) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated such sums as may be necessary to carry 
out this paragraph, which shall remain available 
until expended.’’. 
SEC. 206. MITIGATION LOAN PROGRAM. 
(a) DEFINITION.—In this section, the term ‘‘mitiga-
tion measure’’ means, with respect to a structure, a meas-
ure undertaken to reduce the risk of flood damage to the 
structure. 
(b) ESTABLISHMENT.—The Administrator may es-
tablish a pilot program through which the Administrator 
may provide low-interest loans to policyholders under the 
National Flood Insurance Program for the purposes de-
scribed in subsection (c). 
(c) PURPOSES OF LOANS.—A loan provided to a pol-
icyholder under the pilot program established under sub-
section (b) shall be used to undertake mitigation measures 
with respect to the insured property that cost less than 
the cost of the estimated amount of premiums that would 
be paid with respect to the property during the 50-year 
period beginning in the year in which the loan is made 
and if those mitigation measures were not undertaken. 
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(d) SALE OF PROPERTY.—If a property with respect 
to which a loan has been made under this section is sold, 
upon that sale, the outstanding loan balance shall— 
(1) be repaid using the proceeds of the sale; or 
(2) carry over to the purchaser of the property 
if the purchaser so consents before the execution of 
the sale. 
SEC. 207. REVOLVING LOAN FUNDS. 
(a) IN GENERAL.—Chapter I of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4011 et seq.), as 
amended by section 103, is amended by adding at the end 
the following: 
‘‘SEC. 1327. STATE REVOLVING LOAN FUNDS FOR FLOOD 
MITIGATION. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COMMUNITY RATING SYSTEM.—The term 
‘Community Rating System’ means the community 
rating system program carried out under section 
1315(b). 
‘‘(2) ELIGIBLE
STATE.—The term ‘eligible 
State’ means a State, the District of Columbia, and 
the Commonwealth of Puerto Rico. 
‘‘(3) INSULAR AREA.—The term ‘insular area’ 
means— 
‘‘(A) Guam; 
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‘‘(B) American Samoa; 
‘‘(C) the Commonwealth of the Northern 
Mariana Islands; 
‘‘(D) the Federated States of Micronesia; 
‘‘(E) the Republic of the Marshall Islands; 
‘‘(F) the Republic of Palau; and 
‘‘(G) the United States Virgin Islands. 
‘‘(4) INTENDED
USE
PLAN.—The term ‘in-
tended use plan’ means a plan prepared under sub-
section (d)(1). 
‘‘(5) LOW-INCOME
GEOGRAPHIC
AREA.—The 
term ‘low-income geographic area’ means an area 
described in paragraph (1) or (2) of section 301(a) 
of the Public Works and Economic Development Act 
of 1965 (42 U.S.C. 3161(a)). 
‘‘(6) LOW-INCOME
HOMEOWNER.—The term 
‘low-income homeowner’ means the owner of a pri-
mary residence, the household income of which in a 
taxable year is not more than 80 percent of the me-
dian income for the area in which the residence is 
located. 
‘‘(7) PARTICIPATING
STATE.—The term ‘par-
ticipating State’ means an eligible State that— 
‘‘(A) has entered into an agreement under 
subsection (b)(1); and 
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‘‘(B) agrees to comply with the require-
ments of this section. 
‘‘(8) PRE-FIRM BUILDING.—The term ‘pre- 
FIRM building’ means a building for which con-
struction or substantial improvement occurred before 
the effective date of the initial Flood Insurance Rate 
Map published by the Administrator under section 
1360 for the area in which the building is located. 
‘‘(9) REPETITIVE LOSS STRUCTURE.—The term 
‘repetitive loss structure’ has the meaning given the 
term in section 1370(a). 
‘‘(10) SEVERE REPETITIVE LOSS PROPERTY.— 
The term ‘severe repetitive loss property’ has the 
meaning given the term in section 1307(h). 
‘‘(11) STATE
LOAN
FUND.—The term ‘State 
loan fund’ means a flood mitigation assistance re-
volving loan fund established by an eligible State 
under this section. 
‘‘(12) TRIBAL GOVERNMENT.—The term ‘tribal 
government’ means the recognized government of an 
Indian tribe, or the governing body of an Alaska Na-
tive regional or village corporation, that has been de-
termined eligible to receive services from the Bureau 
of Indian Affairs. 
‘‘(b) GENERAL AUTHORITY.— 
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‘‘(1) IN
GENERAL.—The Administrator may 
enter into an agreement with an eligible State to 
provide a capitalization grant for the eligible State 
to establish a revolving fund that will provide fund-
ing assistance to help homeowners, businesses, non-
profit organizations, and communities reduce flood 
risk in order to decrease— 
‘‘(A) the loss of life and property; 
‘‘(B) the cost of flood insurance; and 
‘‘(C) Federal disaster payments. 
‘‘(2) TIMING
OF
DEPOSIT
AND
AGREEMENTS 
FOR DISTRIBUTION OF FUNDS.— 
‘‘(A) IN
GENERAL.—Not later than the 
last day of the fiscal year following the fiscal 
year in which a capitalization grant is made to 
a participating State under paragraph (1), the 
participating State shall— 
‘‘(i) deposit the grant in the State 
loan fund of the State; and 
‘‘(ii) enter into 1 or more binding 
agreements that provide for the State to 
distribute the grant funds for purposes au-
thorized under subsection (c) such that— 
‘‘(I) in the case of the initial 
grant made to a State under this sec-
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tion, not less than 75 percent of the 
amount of the grant shall be distrib-
uted before the end of the 2-year pe-
riod beginning on the date on which 
the funds are deposited in the State 
loan fund of the State; and 
‘‘(II) in the case of any subse-
quent grant made to a State under 
this section, not less than 90 percent 
of the amount of the grant shall be 
distributed before the end of the 1- 
year period beginning on the date on 
which the funds are deposited in the 
State loan fund of the State. 
‘‘(B) NONCOMPLIANCE.—Except as pro-
vided in subparagraph (C), if a participating 
State does not comply with subparagraph (A) 
with respect to a grant, the Administrator shall 
reallocate the grant in accordance with para-
graph (3)(B). 
‘‘(C) 
EXCEPTION.—The 
Administrator 
may not reallocate any funds under subpara-
graph (B) to a participating State that violated 
subparagraph (A) with respect to a grant made 
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during the same fiscal year in which the funds 
to be reallocated were originally made available. 
‘‘(3) ALLOCATION.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall allocate amounts made available to carry 
out this section to participating States— 
‘‘(i) for the participating States to de-
posit in the State loan funds established by 
the participating States; and 
‘‘(ii) except as provided in paragraph 
(6), in accordance with the requirements 
described in subparagraph (B). 
‘‘(B) REQUIREMENTS.—The requirements 
described in this subparagraph are as follows: 
‘‘(i) Fifty percent of the total amount 
made available under subparagraph (A) 
shall be allocated so that each partici-
pating 
State 
receives 
the 
percentage 
amount that is obtained by dividing the 
number of properties that were insured 
under the national flood insurance pro-
gram in that State in the fiscal year pre-
ceding the fiscal year in which the amount 
is allocated by the total number of prop-
erties that were insured under the national 
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flood insurance program in the fiscal year 
preceding the fiscal year in which the 
amount is allocated. 
‘‘(ii) Fifty percent of the total amount 
made available under subparagraph (A) 
shall be allocated so that each partici-
pating State receives a percentage of funds 
that is equal to the product obtained under 
clause (iii)(IV) with respect to that partici-
pating State after following the procedures 
described in clause (iii). 
‘‘(iii) The procedures described in this 
clause are as follows: 
‘‘(I) Divide the total amount col-
lected in premiums for properties in-
sured under the national flood insur-
ance program in each participating 
State during the previous fiscal year 
by the number of properties insured 
under the national flood insurance 
program in that State for that fiscal 
year. 
‘‘(II) Add together each quotient 
obtained under subclause (I). 
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‘‘(III) For each participating 
State, divide the quotient obtained 
under subclause (I) with respect to 
that State by the sum obtained under 
subclause (II). 
‘‘(IV) For each participating 
State, multiply the amount that is 50 
percent of the total amount made 
available under subparagraph (A) by 
the quotient obtained under subclause 
(III). 
‘‘(iv) Except as provided in paragraph 
(5), in a fiscal year— 
‘‘(I) a participating State may 
not receive more than 15 percent of 
the total amount that is made avail-
able under subparagraph (A) in that 
fiscal year; and 
‘‘(II) if a participating State, 
based on the requirements under 
clauses (i) through (iii), would, but 
for the limitation under subclause (I) 
of this clause, receive an amount that 
is greater than the amount that the 
State is authorized to receive under 
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that subclause, the difference between 
the 
authorized 
amount 
and 
the 
amount otherwise due to the State 
under clauses (i) through (iii) shall be 
allocated 
to 
other 
participating 
States— 
‘‘(aa) that, in that fiscal 
year, 
have 
not 
received 
an 
amount under subparagraph (A) 
that is more than the authorized 
amount under subclause (I) of 
this clause; and 
‘‘(bb) by using the require-
ments under clauses (i) through 
(iii), except that a participating 
State may receive an allocation 
under this subclause only if the 
allocation does not result in the 
State receiving a total amount 
for the fiscal year under subpara-
graph (A) that is greater than 
the authorized amount under 
subclause (I). 
‘‘(4) NO REVOLVING FUND REQUIRED.— 
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‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this section, and subject to 
subparagraph (B), a participating State that 
receives less than $4,000,000 under paragraph 
(3)(B) in a fiscal year may distribute the funds 
directly in the form of grants or technical as-
sistance for a purpose described in subsection 
(c)(2), without regard to whether the State has 
established a State loan fund. 
‘‘(B) STATE MATCHING.—A participating 
State that exercises the authority under sub-
paragraph (A) in a fiscal year shall provide 
matching funds from non-Federal sources in an 
amount that is equal to 25 percent of the 
amount that the State receives under paragraph 
(3)(B) in that fiscal year for purposes described 
in subparagraph (A). 
‘‘(5) ALLOCATION
OF
REMAINING
FUNDS.— 
After allocating amounts made available to carry out 
this section for a fiscal year in accordance with 
paragraph (3), the Administrator shall allocate any 
remaining amounts made available for that fiscal 
year to participating States, using the procedures 
described in clauses (i) through (iii) of paragraph 
(3)(B). 
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‘‘(6) RESERVATION OF FUNDS.—The Adminis-
trator shall reserve not more than 1.5 percent of the 
amount made available to carry out this section in 
a fiscal year— 
‘‘(A) for administrative costs incurred in 
carrying out this section; 
‘‘(B) to provide technical assistance to re-
cipients of grants under this section; and 
‘‘(C) to enter into grant agreements with 
tribal governments and insular areas, with the 
grant funds to be distributed— 
‘‘(i) according to criteria established 
by the Administrator; and 
‘‘(ii) for a purpose described in sub-
section (c)(2). 
‘‘(c) USE OF FUNDS.— 
‘‘(1) IN
GENERAL.—Amounts deposited in a 
State loan fund, including repayments of loans made 
from the fund and interest earned on the amounts 
in the fund, shall be used— 
‘‘(A) consistent with paragraph (2) and 
subsection (g), to provide financial assistance 
for— 
‘‘(i) homeowners, businesses, and non-
profit organizations that are eligible to 
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participate in the national flood insurance 
program; and 
‘‘(ii) any local government that par-
ticipates in the national flood insurance 
program; 
‘‘(B) as a source of revenue and security 
for leveraged loans, the proceeds of which shall 
be deposited in the State loan fund; or 
‘‘(C) for the sale of bonds as security for 
payment of the principal and interest on rev-
enue or general obligation bonds issued by the 
participating State to provide matching funds 
under subsection (f), if the proceeds from the 
sale of the bonds are deposited in the State 
loan fund. 
‘‘(2) PURPOSES.—A recipient of financial as-
sistance provided through amounts from a State 
loan fund— 
‘‘(A) shall use the amounts to reduce— 
‘‘(i) flood risk; or 
‘‘(ii) potential claims for losses cov-
ered under the national flood insurance 
program; 
‘‘(B) shall use the amounts in a cost-effec-
tive manner under requirements established by 
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the State, which may require an applicant for 
financial assistance to submit any information 
that the State considers relevant or necessary 
before the date on which the applicant receives 
the assistance; 
‘‘(C) shall use the amounts for projects 
that— 
‘‘(i) meet design and construction 
standards established by the Adminis-
trator; 
‘‘(ii) are located in communities 
that— 
‘‘(I) participate in the national 
flood insurance program; and 
‘‘(II) have developed a State or 
community flood risk mitigation plan 
that has been approved by the Admin-
istrator under section 1366; 
‘‘(iii) address— 
‘‘(I) a repetitive loss structure or 
a severe repetitive loss property; or 
‘‘(II) flood risk in the 500-year 
floodplain, areas of residual flood risk, 
or other areas of potential flood risk, 
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as identified by the Administrator; 
and 
‘‘(iv) address current risk and antici-
pate future risk, such as sea-level rise; 
‘‘(D) may use the amounts— 
‘‘(i) for projects relating to— 
‘‘(I) structural elevation; 
‘‘(II) floodproofing; 
‘‘(III) the relocation or removal 
of buildings from the 100-year flood-
plain or other areas of flood risk, in-
cluding the acquisition of properties 
for such a purpose; 
‘‘(IV) environmental restoration 
activities that directly reduce flood 
risk; 
‘‘(V) any eligible activity de-
scribed in subparagraphs (A) through 
(G) of section 1366(c)(3); or 
‘‘(VI) other activities determined 
appropriate by the Administrator; 
‘‘(ii) with respect to a project de-
scribed in clause (i), only for expenditures 
directly related to a project described in 
that clause, including expenditures for 
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planning, design, and associated pre-con-
struction activities; and 
‘‘(iii) to acquire, for the purposes of 
permanent protection, land, buildings, or a 
conservation easement from a willing seller 
or grantor; 
‘‘(E) may not use the amounts— 
‘‘(i) to construct buildings or expand 
existing buildings, unless the activity is for 
the purpose of flood mitigation; 
‘‘(ii) to improve any structure, unless 
the recipient has obtained flood insurance 
coverage, which shall be maintained for the 
useful life of the structure, in an amount 
that is not less than the lesser of— 
‘‘(I) the eligible project costs with 
respect to the structure; and 
‘‘(II) the maximum insurable 
limit for the structure under the na-
tional flood insurance program cov-
erage for the structure; 
‘‘(iii) to improve a residential property 
with an appraised value that is not less 
than 125 percent of the limitation on the 
maximum original principal obligation of a 
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conventional mortgage that may be pur-
chased by the Federal National Mortgage 
Association or the Federal Home Loan 
Mortgage Corporation in the area in which 
the property is located, as established 
under section 302(b)(2) of the Federal Na-
tional Mortgage Association Charter Act 
(12 
U.S.C. 
1717(b)(2)) 
and 
section 
305(a)(2) of the Federal Home Loan 
Mortgage Corporation Act (12 U.S.C. 
1454(a)(2)); 
‘‘(iv) for the direct benefit of a home-
owner if the annual household adjusted 
gross income of the homeowner during the 
previous fiscal year was not less than 
$200,000, as annually adjusted by the Ad-
ministrator to reflect changes in the Con-
sumer Price Index for All Urban Con-
sumers, as published by the Bureau of 
Labor Statistics of the Department of 
Labor and rounded to the nearest $25; or 
‘‘(v) to acquire real property or an in-
terest in real property unless the property 
is purchased from a willing seller; and 
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‘‘(F) to the maximum extent practicable, 
shall, in using those amounts, give priority to 
projects that assist low-income homeowners and 
low-income geographical areas. 
‘‘(d) INTENDED USE PLANS.— 
‘‘(1) IN GENERAL.—After providing the oppor-
tunity for public review and comment, each partici-
pating State shall annually prepare a plan that iden-
tifies, for the year following the date of issuance of 
the intended use plan, the intended uses of the 
amounts available in the State loan fund of the par-
ticipating State. 
‘‘(2) CONSULTATION DURING PREPARATION.— 
Each participating State, in preparing an intended 
use plan, shall ensure that the State agency with 
primary responsibility for floodplain management— 
‘‘(A) provides oversight with respect to the 
preparation of the intended use plan; and 
‘‘(B) consults with any other appropriate 
State agency, including agencies responsible for 
coastal and environmental management. 
‘‘(3) CONTENTS.—A participating State shall, 
in each intended use plan— 
‘‘(A) include— 
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‘‘(i) an explanation of the mitigation 
and resiliency benefits the State intends to 
achieve, including by— 
‘‘(I) reducing future damage and 
loss associated with flooding; 
‘‘(II) reducing the number of se-
vere repetitive loss properties and re-
petitive loss structures in the State; 
‘‘(III) decreasing the number of 
flood insurance claims in the State; 
and 
‘‘(IV) increasing the rating under 
the Community Rating System for 
communities in the State; 
‘‘(ii) information with respect to the 
availability of, and the application process 
for receiving, financial assistance from the 
State loan fund of the State; 
‘‘(iii) the criteria and methods estab-
lished for the distribution of amounts from 
the State loan fund of the State; 
‘‘(iv) the amount of financial assist-
ance that the State anticipates providing 
to— 
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‘‘(I) local government projects; 
and 
‘‘(II) projects for homeowners, 
business, or nonprofit organizations; 
‘‘(v) the expected terms of the assist-
ance provided under clause (iv); and 
‘‘(vi) a description of the financial sta-
tus of the State loan fund and the short- 
term and long-term goals of the State loan 
fund; and 
‘‘(B) provide, to the maximum extent prac-
ticable, that priority for the use of amounts 
from the State loan fund shall be given to 
projects that— 
‘‘(i) address severe repetitive loss 
properties and repetitive loss structures; 
‘‘(ii) assist low-income homeowners 
and low-income geographic areas; and 
‘‘(iii) address flood risk for pre-FIRM 
buildings. 
‘‘(4) PUBLICATION.—Each participating State 
shall publish and periodically update a list of all 
projects receiving funding from the State loan fund 
of the State, which shall include identification of— 
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‘‘(A) the community in which the project is 
located; 
‘‘(B) the type and amount of assistance 
provided for each project; and 
‘‘(C) the expected funding schedule and 
date of completion of each project. 
‘‘(e) FUND MANAGEMENT.—Amounts in a State loan 
fund shall— 
‘‘(1) remain available for providing financial as-
sistance under this section until distributed; 
‘‘(2) if the amounts are not required for imme-
diate distribution or expenditure, be invested in in-
terest-bearing obligations; and 
‘‘(3) except as provided in subsection (i), in-
clude only— 
‘‘(A) amounts received from capitalization 
grants made under this section; 
‘‘(B) repayments of loans made from the 
fund; and 
‘‘(C) interest earned on amounts in the 
fund. 
‘‘(f) MATCHING FUNDS.— 
‘‘(1) FULL GRANT.—On or before the date on 
which a participating State receives a capitalization 
grant, the State shall deposit into the State loan 
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fund of the State, in addition to the amount of the 
capitalization grant, an amount from non-Federal 
sources that is not less than 20 percent of the total 
amount of the capitalization grant. 
‘‘(2) REDUCED GRANT.—If, with respect to a 
capitalization grant, a participating State deposits in 
the State loan fund of the State an amount from 
non-Federal sources that is less than 20 percent of 
the total amount of the capitalization grant that the 
participating State would otherwise receive, the Ad-
ministrator shall— 
‘‘(A) reduce the amount of the capitaliza-
tion grant received by the State to the amount 
that is 5 times the amount so deposited; and 
‘‘(B) in accordance with subsection (b)(5), 
allocate the difference between the amount that 
the participating State would have received if 
the State had complied with paragraph (1) and 
the amount of the reduced grant that the par-
ticipating State receives under subparagraph 
(A). 
‘‘(g) TYPES OF ASSISTANCE.—Unless otherwise pro-
hibited by State law, a participating State may use the 
amounts deposited into a State loan fund under this sec-
tion only— 
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to repay the loan, according to the terms of the 
loan, except that this subparagraph may not be 
construed to authorize any reduction or limita-
tion in efforts to comply with the requirements 
of subsection (c)(2)(F); and 
‘‘(E) payments of principal and interest 
with respect to the loan will be deposited into 
the State loan fund; 
‘‘(2) to buy or refinance the debt obligation of 
a local government at an interest rate that is not 
more than the market interest rate; 
‘‘(3) to guarantee, or purchase insurance for, a 
local obligation, the proceeds of which finance a 
project eligible for assistance under this section, if 
the guarantee or purchase, as applicable, would— 
‘‘(A) improve credit market access; or 
‘‘(B) reduce the interest rate with respect 
to the obligation; 
‘‘(4) as a source of revenue or as security for 
the payment of principal and interest on revenue or 
general obligation bonds issued by the State if the 
proceeds of the sale of the bonds will be deposited 
into the State loan fund; or 
‘‘(5) to earn interest on those amounts. 
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‘‘(h) ASSISTANCE FOR LOW-INCOME HOMEOWNERS 
AND LOW-INCOME GEOGRAPHIC AREAS.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this section, if a participating State uses 
amounts from a State loan fund to provide financial 
assistance under subsection (c) in a low-income geo-
graphic area or to a low-income homeowner, the 
State may provide additional subsidization to the re-
cipient of the assistance, including forgiveness of the 
principal of a loan. 
‘‘(2) LIMITATION.—For each fiscal year, the 
total amount of additional subsidization provided by 
a participating State under paragraph (1) may not 
exceed 30 percent of the amount of the capitaliza-
tion grant allocated to the State for that fiscal year. 
‘‘(i) ADMINISTRATION OF FUND.— 
‘‘(1) IN GENERAL.—A participating State may 
combine the financial administration of a State loan 
fund with the financial administration of any other 
revolving fund established by the State if— 
‘‘(A) combining the administration of the 
funds would— 
‘‘(i) be convenient and avoid adminis-
trative costs; and 
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‘‘(ii) not violate the law of the State; 
and 
‘‘(B) the Administrator determines that— 
‘‘(i) amounts obtained from a grant 
made under this section, amounts obtained 
from the repayment of a loan made from 
a State loan fund, and interest earned on 
amounts in a State loan fund will be— 
‘‘(I) accounted for separately 
from amounts from other revolving 
funds; and 
‘‘(II) used only for purposes au-
thorized under this section; and 
‘‘(ii) after consulting with the appro-
priate State agencies, the authority to es-
tablish assistance priorities and carry out 
oversight and related activities, other than 
financial administration, with respect to 
flood assistance remains with the State 
agency with primary responsibility for 
floodplain management. 
‘‘(2) 
ADMINISTRATIVE
AND
TECHNICAL 
COSTS.— 
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‘‘(A) IN GENERAL.—For each fiscal year, a 
participating State may use the amount de-
scribed in subparagraph (B) to— 
‘‘(i) pay the reasonable costs of ad-
ministration of the programs under this 
section, including the recovery of reason-
able costs incurred in establishing a State 
loan fund; 
‘‘(ii) provide appropriate oversight of 
projects authorized under this section; and 
‘‘(iii) provide technical assistance and 
outreach to recipients in the State of 
amounts under this section, including with 
respect to updating hazard mitigation 
plans and participating in the Community 
Rating System, in an amount that is not 
more than 4 percent of the funds made 
available to the State under this section. 
‘‘(B) 
DESCRIPTION.—The 
amount 
de-
scribed in this subparagraph is an amount 
equal to the sum of— 
‘‘(i) any fees collected by a partici-
pating State to recover the costs described 
in subparagraph (A)(i), regardless of the 
source; and 
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‘‘(ii) the greatest of— 
‘‘(I) $400,000; 
‘‘(II) 0.2 percent of the value of 
the State loan fund of a State, as of 
the date on which the valuation is 
made; and 
‘‘(III) an amount equal to 7 per-
cent of all grant awards made to a 
participating State for the State loan 
fund of the State under this section 
for the fiscal year. 
‘‘(3) AUDIT AND REPORT.— 
‘‘(A) AUDIT REQUIREMENT.—Not less fre-
quently than biennially, each participating State 
shall conduct an audit of the State loan fund of 
the State. 
‘‘(B) REPORT.—Each participating State 
shall submit to the Administrator a biennial re-
port regarding the activities of the State under 
this section during the period covered by the re-
port, including— 
‘‘(i) the result of any audit conducted 
by the State under subparagraph (A); and 
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‘‘(ii) a review of the effectiveness of 
the State loan fund of the State with re-
spect to— 
‘‘(I) the intended use plans of the 
State; and 
‘‘(II) meeting the objectives de-
scribed in subsection (b)(1). 
‘‘(4) OVERSIGHT.—In conducting oversight with 
respect to State loan funds established under this 
section, the Administrator— 
‘‘(A) shall— 
‘‘(i) periodically audit the funds in ac-
cordance with procedures established by 
the Comptroller General of the United 
States; and 
‘‘(ii) not less frequently than once 
every 4 years, review each State loan fund 
to determine the effectiveness of the fund 
in reducing flood risk; and 
‘‘(B) may, at any time— 
‘‘(i) make recommendations to a par-
ticipating State with respect to the admin-
istration of the State loan fund of the 
State; or 
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‘‘(ii) require specific changes with re-
spect to a State loan fund in order to im-
prove the effectiveness of the fund. 
‘‘(j) LIABILITY PROTECTIONS.—The Federal Emer-
gency Management Agency shall not be liable for any 
claim based on the exercise or performance of, or the fail-
ure to exercise or perform, a discretionary function or duty 
by the Agency, or an employee of the Agency, in carrying 
out this section. 
‘‘(k) REGULATIONS.—The Administrator shall pro-
mulgate such guidance or regulations as may be necessary 
to carry out this section, including guidance or regulations 
that— 
‘‘(1) ensure that each participating State to 
which funds are allocated under this section uses the 
funds as efficiently as possible; 
‘‘(2) reduce, to the maximum extent prac-
ticable, waste, fraud, and abuse with respect to the 
implementation of this section; and 
‘‘(3) require any party that receives funds di-
rectly or indirectly under this section, including a 
participating State and a recipient of amounts from 
a State loan fund, to use procedures with respect to 
the management of the funds that conform to gen-
erally accepted accounting standards. 
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‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section for fiscal years 2020 
through 2029.’’. 
(b) CONSIDERATION
OF
MITIGATION
MEASURES 
FUNDED BY STATE LOAN FUNDS IN FLOOD INSURANCE 
PREMIUM RATES.— 
(1) 
ESTIMATED
RATES.—Section 
1307(a)(1)(A)(ii) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4014(a)(1)(A)(ii)) is amend-
ed by striking ‘‘and similar measures’’ and inserting 
‘‘similar measures, and any activities funded 
through amounts from a State loan fund established 
under section 1326’’. 
(2) CHARGEABLE RATES.—Section 1308(b)(1) 
of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(b)(1)) is amended by striking ‘‘and 
similar measures’’ and inserting ‘‘similar measures, 
and any activities funded through amounts from a 
State loan fund established under section 1326’’. 
SEC. 208. MAPPING MODERNIZATION. 
(a) AMENDMENTS TO THE BIGGERT-WATERS FLOOD 
INSURANCE REFORM ACT OF 2012.—The Biggert-Waters 
Flood Insurance Reform Act of 2012 (42 U.S.C. 4004 et 
seq.) is amended— 
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(1) in section 100215 (42 U.S.C. 4101a)— 
(A) in subsection (b)(1)— 
(i) by redesignating subparagraphs 
(A) through (E) as subparagraphs (B) 
through (F), respectively; 
(ii) by inserting before subparagraph 
(B), as so redesignated, the following: 
‘‘(A) the Director of the United States Ge-
ological Survey;’’; and 
(iii) in subparagraph (F), as so redes-
ignated— 
(I) in the matter preceding clause 
(i), by striking ‘‘16’’ and inserting 
‘‘17’’; 
(II) in clause (xiii), by striking 
‘‘and’’ at the end; 
(III) in clause (xiv), by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(IV) by adding at the end the fol-
lowing: 
‘‘(xv) an expert in the field of cata-
strophic risk modeling.’’; and 
(B) by adding at the end the following: 
‘‘(m) PRIVATE OR COMMUNITY FLOOD MAPS.— 
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‘‘(1) STANDARDS AND PROCEDURES.—In addi-
tion to the other duties of the Council under this 
section, not later than 1 year after the date of enact-
ment of this subsection, the Council shall develop 
and establish a set of standards, guidelines, and pro-
cedures for— 
‘‘(A) State and local governments, feder-
ally or State-recognized metropolitan planning 
organizations (commonly known as ‘MPOs’), 
federally or State-recognized councils of local 
governments, and federally or State-recognized 
rural transportation planning organizations to 
use in mapping flood risks and developing alter-
native maps to the flood insurance rate maps 
developed by the Administrator; and 
‘‘(B) certification, by the Administrator 
not later than 90 days after the date on which 
a map developed under subparagraph (A) is 
submitted to the Administrator, for use under 
the National Flood Insurance Program in the 
case of any area covered by a flood insurance 
rate map developed or approved by the Admin-
istrator that has not been updated or reissued 
during the preceding 3-year period. 
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‘‘(2) TREATMENT.—On and after the date on 
which the Administrator certifies a map under para-
graph (1)(B), the map— 
‘‘(A) shall be considered the flood insur-
ance rate map in effect for all purposes of the 
National Flood Insurance Program with respect 
to the area covered by the map; and 
‘‘(B) may not be revised, updated, or re-
placed in accordance with the standards, guide-
lines, and procedures established under para-
graph (1) before the expiration of the 3-year 
period beginning on that date of certification. 
‘‘(3) EXEMPTION
FROM
RULEMAKING.—Until 
the date on which the Administrator promulgates 
regulations implementing paragraphs (1) and (2), 
the Administrator may adopt policies and proce-
dures, notwithstanding any other provision of law, 
necessary to implement those paragraphs without re-
gard to section 553 of title 5, United States Code, 
and without conducting regulatory analyses other-
wise required by statute, regulation, or Executive 
order.’’; and 
(2) in section 100216 (42 U.S.C. 4101b)— 
(A) in subsection (b)— 
(i) in paragraph (1)— 
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(I) in subparagraph (A), by strik-
ing ‘‘to—’’ and all that follows 
through the end of clause (vi) and in-
serting ‘‘to all areas of the United 
States;’’; 
(II) in subparagraph (B), by 
striking ‘‘and’’ at the end; 
(III) in subparagraph (C), by 
striking ‘‘accurate topography’’ and 
all that follows through the period at 
the end and inserting ‘‘current and 
best remote sensing technology;’’; and 
(IV) by adding at the end the fol-
lowing: 
‘‘(D) when appropriate, partner with other 
Federal agencies and private entities in order to 
meet the objectives of the program; and 
‘‘(E) consult and coordinate with the Sec-
retary of Defense, the Director of the United 
States Geological Survey, and the Adminis-
trator of the National Oceanic and Atmospheric 
Administration to obtain the most up-to-date 
maps and other information of those agencies, 
including information relating to topography, 
water flow, watershed characteristics, and any 
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other issues that are relevant to identifying, re-
viewing, updating, maintaining, and publishing 
National 
Flood 
Insurance 
Program 
rate 
maps.’’; and 
(ii) in paragraph (3)— 
(I) in subparagraph (A), by re-
designating clauses (i) and (ii) as sub-
clauses (I) and (II), respectively, and 
adjusting the margins accordingly; 
(II) by redesignating subpara-
graphs (A) through (E) as clauses (i) 
through (v), respectively, and adjust-
ing the margins accordingly; 
(III) in the matter preceding 
clause (i), as so redesignated, by 
striking 
‘‘Administrator 
shall 
in-
clude—’’ and inserting the following: 
‘‘Administrator— 
‘‘(A) shall include—’’; 
(IV) in subparagraph (A)(v), as 
so redesignated, by striking the period 
at the end and inserting ‘‘; and’’; and 
(V) by adding at the end the fol-
lowing: 
‘‘(B) may include— 
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‘‘(i) any relevant information that is 
obtained under paragraph (1)(D); and 
‘‘(ii) cadastral features, including, for 
each cadastral feature— 
‘‘(I) the associated parcel identi-
fication data for that feature; and 
‘‘(II) to the maximum extent 
practicable, using public and private 
sector address data, the address of 
that feature.’’; 
(B) in subsection (c)(2)— 
(i) in subparagraph (B), by striking 
‘‘and’’ at the end; 
(ii) in subparagraph (C), by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(D) not later than 5 years after the date 
on which the National Geodetic Survey com-
pletes the modernization of the National Spatial 
Reference System in 2022, updated to conform 
with the geospatial data provided by that sys-
tem; and 
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‘‘(E) spatially accurate in accordance with 
the common protocols for geographic informa-
tion systems under section 216 of the E-Gov-
ernment Act of 2002 (44 U.S.C. 3501 note).’’; 
(C) by redesignating subsection (f) as sub-
section (g); 
(D) by inserting after subsection (e) the 
following: 
‘‘(f) INCORPORATING
BUILDING-SPECIFIC
FLOOD 
RISK INFORMATION.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN GENERAL.—Not later than 5 years 
after the date of enactment of the National 
Flood Insurance Program Reauthorization and 
Reform Act of 2019, the Administrator, in co-
ordination with, and as recommended by, the 
Technical Mapping Advisory Council, shall es-
tablish a dynamic, database-derived digital dis-
play environment for flood hazard risk produc-
tion and dissemination. 
‘‘(B) CONSULTATION
WITH
STATES
AND 
COMMUNITIES.—In designing and constructing 
the environment under subparagraph (A), the 
Administrator shall— 
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‘‘(i) leverage and partner with States 
and communities that have successfully im-
plemented the same approach; and 
‘‘(ii) consider adopting the techniques 
and technologies used by States and com-
munities described in clause (i) and apply-
ing them nationwide. 
‘‘(2) DIGITAL DISPLAY.— 
‘‘(A) IN GENERAL.—In carrying out para-
graph (1), the Administrator shall create a dig-
ital display prompted through dynamic querying 
of a spatial, relational building database that 
includes— 
‘‘(i) special flood hazard areas and 
base flood elevations for purposes of lender 
compliance with the requirements under 
section 102 of the Flood Disaster Protec-
tion Act of 1973 (42 U.S.C. 4012a); and 
‘‘(ii) structure-specific flood risk infor-
mation, including, for each property ad-
dress— 
‘‘(I) the spatial footprint and ele-
vation of the structure relative to spe-
cial flood hazard areas and base flood 
elevations; 
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‘‘(II) the most current elevation 
certificate applicable to the property; 
‘‘(III) any letter of map changes; 
‘‘(IV) the full risk premium rate 
estimated for the structure under sec-
tion 1307(a)(1) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 
4014(a)(1)) based on elevation data; 
‘‘(V) the disclosure described in 
section 1308(l) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 
4015(l)), which shall include— 
‘‘(aa) the extent to which, if 
any, the chargeable premium rate 
applicable to the property is less 
than the full risk premium rate 
under section 1307(a)(1) of that 
Act (42 U.S.C. 4014(a)(1)); and 
‘‘(bb) an explanation of the 
difference described in item (aa) 
and the methodology used to rate 
the property; 
‘‘(VI) the estimated cost to re-
pair the structure in the case of dam-
age from floods with recurrence inter-
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vals ranging from the 10 percent an-
nual chance event to the 0.2 percent 
annual chance event; 
‘‘(VII) the cost-effectiveness of 
mitigating the structure using com-
mon methods and how the chargeable 
premium rate would change based on 
each mitigation method; and 
‘‘(VIII) the claims history of the 
structure, including the amount and 
date of each loss. 
‘‘(B) PRIVACY REQUIREMENTS.—With re-
spect to the database described in subparagraph 
(A), including any data used to create that 
database, the Administrator may not dissemi-
nate the database to any person other than the 
owner or leaseholder of a property identified in 
the database. 
‘‘(3) DATABASE.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall— 
‘‘(i) develop a spatial, relational data-
base of buildings in the National Flood In-
surance Program; and 
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‘‘(ii) obtain the data necessary to sup-
port the digital display created under para-
graph (2). 
‘‘(B) DATA.—The data obtained under 
subparagraph (A) shall include, at a min-
imum— 
‘‘(i) footprints and elevations (includ-
ing lowest adjacent grade and first floor) 
from Light Detection and Ranging (com-
monly known as ‘LiDAR’) data collections 
or other data collection methods that meet 
or exceed the standards for buildings, as 
determined by the Administrator; 
‘‘(ii) elevation certificates; 
‘‘(iii) parcel, address, and imagery 
data necessary for the identification, as-
sessment, and reduction of flood hazards 
for individual properties; 
‘‘(iv) flood insurance rate maps, stud-
ies, and supporting data; 
‘‘(v) letters of map change; and 
‘‘(vi) any other data that the Adminis-
trator determines necessary to collect to 
meet the objectives of this section. 
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‘‘(4) DATA PROCUREMENT.—The Administrator 
shall obtain any data necessary to establish the envi-
ronment under paragraph (1), including by— 
‘‘(A) directing communities participating 
in the National Flood Insurance Program, by 
regulation, to collect and supply information, 
including elevation data, for each structure that 
obtains a construction or other development 
permit within— 
‘‘(i) a special flood hazard area; or 
‘‘(ii) an advisory special flood hazard 
area adopted by the community; 
‘‘(B) issuing guidelines and standards, as 
determined by the Administrator; 
‘‘(C) partnering with other Federal, State, 
local, and private stakeholders to the greatest 
extent possible to obtain and share existing 
data that meets or exceeds the standards deter-
mined by the Administrator under subpara-
graph (B); and 
‘‘(D) contracting with private companies to 
obtain new LiDAR data collections or elevation 
certificates. 
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‘‘(5) NFIP PREMIUM CREDIT.—The Adminis-
trator shall provide a 1-time premium credit of not 
more than $500 to a policyholder for— 
‘‘(A) the purchase of an elevation certifi-
cate; or 
‘‘(B) the purposes of appealing the charge-
able premium rate with respect to the property 
to which the premium applies. 
‘‘(6) MASS LETTERS OF MAP CHANGE.—In co-
ordination with States and communities that have 
successfully implemented a dynamic, database-de-
rived digital display environment for flood hazard 
risk production and dissemination, the Adminis-
trator shall issue guidelines for the adoption and in-
tegration into the program established under sub-
section (a) of LiDAR-based letter of map amend-
ment approaches. 
‘‘(7) ANNUAL
REPORT.—The Administrator 
shall submit to the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representa-
tives an annual progress report on the implementa-
tion of this subsection, which shall include rec-
ommendations to reduce the cost and improve the 
implementation of this subsection.’’; and 
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(E) in subsection (g), as so redesignated— 
(i) 
by 
striking 
‘‘this 
section 
$400,000,000’’ and inserting the following: 
‘‘this section— 
‘‘(1) $400,000,000’’; and 
(ii) by striking the period at the end 
and inserting the following: ‘‘; and 
‘‘(2) $400,000,000 for each of fiscal years 2020 
through 2025.’’. 
(b) APPEALS.— 
(1) IN GENERAL.— 
(A) RIGHT TO APPEAL.—Section 1360 of 
the National Flood Insurance Act of 1968 (42 
U.S.C. 4101) is amended by adding at the end 
the following: 
‘‘(k) APPEALS OF EXISTING MAPS.— 
‘‘(1) RIGHT TO APPEAL.—Subject to paragraph 
(6), a State or local government, or the owner or les-
see of real property, that makes a formal request to 
the Administrator to update a flood insurance rate 
map that the Administrator denies may at any time 
appeal the denial in accordance with this subsection. 
‘‘(2) BASIS FOR APPEAL.—The basis for an ap-
peal under this subsection shall be the possession of 
knowledge or information that— 
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‘‘(A) the base flood elevation level or des-
ignation of any aspect of a flood insurance rate 
map is scientifically or technically inaccurate; or 
‘‘(B) factors exist that mitigate the risk of 
flooding, including ditches, banks, walls, vegeta-
tion, levees, lakes, dams, reservoirs, basin, re-
tention ponds, and other natural or manmade 
topographical features. 
‘‘(3) APPEALS PROCESS.— 
‘‘(A) ADMINISTRATIVE
ADJUDICATION.— 
The Administrator shall determine an appeal 
under this subsection by making a final adju-
dication on the record, after providing an op-
portunity for an administrative hearing. 
‘‘(B) RIGHTS UPON ADVERSE DECISION.— 
‘‘(i) OPTIONAL ARBITRATION.—If an 
appeal determined under subparagraph (A) 
does not result in a decision in favor of the 
State, local government, owner, or lessee, 
that party may request that an appeal of 
the adverse decision be heard through 
independent, non-binding arbitration. 
‘‘(ii) PROCESS.—The Administrator 
shall establish a process for arbitration 
under clause (i) under which the arbitrator 
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provides a non-binding recommendation to 
the Administrator. 
‘‘(4) RELIEF.— 
‘‘(A) WHOLLY SUCCESSFUL APPEALS.—If 
the Administrator determines, in an appeal 
under this subsection, that the property of a 
policyholder that had been included in a special 
flood hazard area under the flood insurance 
rate map is actually not in a special flood haz-
ard area— 
‘‘(i) the policyholder may cancel the 
policy at any time during the year in which 
the Administrator makes the determina-
tion; and 
‘‘(ii) the Administrator shall provide 
the policyholder a refund equal to the 
amount of— 
‘‘(I) any premiums that the pol-
icyholder paid during the year de-
scribed in clause (i); and 
‘‘(II) any premiums that the pol-
icyholder paid for flood insurance cov-
erage that the policyholder was re-
quired to purchase or maintain during 
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the 2-year period preceding the year 
described in clause (i). 
‘‘(B) PARTIALLY SUCCESSFUL APPEALS.— 
If the Administrator determines in an appeal 
under this subsection that mitigating factors 
have reduced, but not eliminated, the risk of 
flooding to a property, the Administrator 
shall— 
‘‘(i) reduce the amount of flood insur-
ance coverage required to be maintained 
for the property by the ratio of the suc-
cessful portion of the appeal as compared 
to the entire appeal; and 
‘‘(ii) provide the policyholder a refund 
equal to the difference between— 
‘‘(I) the amount of any premiums 
that the policyholder paid during the 
period— 
‘‘(aa) beginning on the later 
of— 
‘‘(AA) 
the 
date 
on 
which the mitigating factor 
was created; or 
‘‘(BB) January 1 of the 
second year preceding the 
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date on which the deter-
mination is made; and 
‘‘(bb) ending on the date on 
which 
the 
reduction 
in 
the 
amount of flood insurance re-
quired, as described in clause (i), 
takes effect; and 
‘‘(II) the amount of premiums 
that the policyholder would have been 
required to pay if the reduced amount 
of flood insurance coverage required, 
as described in clause (i), had been in 
effect during the period described in 
subclause (I) of this clause. 
‘‘(C) ADDITIONAL RELIEF.—The Adminis-
trator may provide additional refunds in excess 
of the amounts required under subparagraphs 
(A) and (B) if the Administrator determines 
that such additional refunds are warranted. 
‘‘(5) RECOVERY OF COSTS.— 
‘‘(A) APPEAL EXPENSES.—If a State or 
local government, or the owner or lessee of real 
property, incurs any expense in connection with 
an appeal under this subsection that is based 
on a scientific or technical error made by the 
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Administrator and that is successful in whole or 
part regarding the designation of the base flood 
elevation or any aspect of a flood insurance rate 
map, including elevation or designation of a 
special flood hazard area, the Administrator 
shall reimburse the State, local government, 
owner, or lessee in accordance with subpara-
graph (B). 
‘‘(B) 
REIMBURSABLE
EXPENSES.—The 
Administrator— 
‘‘(i) may reimburse a party under 
subparagraph (A) for reasonable expenses 
described in that subparagraph— 
‘‘(I) including for a service pro-
vided by a surveyor, engineer, or sci-
entific expert; and 
‘‘(II) to the extent measured by 
the ratio of the successful portion of 
the appeal as compared to the entire 
appeal; and 
‘‘(ii) may not reimburse a party under 
subparagraph (A) for— 
‘‘(I) the cost of legal services; or 
‘‘(II) the payment of any fee or 
expense, the payment of which was 
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agreed to be contingent upon the re-
sult of the appeal. 
‘‘(6) 
GUIDANCE.—The 
Administrator 
shall 
issue guidance to implement this subsection, which 
shall not be subject to the notice and comment re-
quirements under section 553 of title 5, United 
States Code.’’. 
(B) TECHNICAL AND CONFORMING AMEND-
MENTS.—Section 1310(a) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4017(a)) is 
amended— 
(i) in paragraph (7), by striking 
‘‘and’’ at the end; 
(ii) in paragraph (8), by striking the 
period at the end and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(9) for providing reimbursements of expenses 
of flood insurance rate map appeals under section 
1360(k)(5).’’. 
(2) DEADLINE FOR ISSUANCE OF GUIDANCE.— 
Not later than 180 days after the date of enactment 
of this Act, the Administrator shall issue the guid-
ance required under subsection (k)(6) of section 
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1360 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4101), as added by paragraph (1)(A). 
SEC. 209. PROTECTED AREAS. 
Section 100216(b) of the Biggert-Waters Flood In-
surance Reform Act of 2012 (42 U.S.C. 4101b(b)) is 
amended by adding at the end the following: 
‘‘(4) ZONES PROTECTED BY LEVEE SYSTEMS.— 
‘‘(A) APPLICABILITY.—Subject to full im-
plementation of this section, and notwith-
standing any other provision of law, this para-
graph shall apply to a community in which the 
Administrator maps or re-maps a levee-im-
pacted area in which the pertinent levee system 
fails to meet the minimum design, operation, 
and maintenance standards of the National 
Flood Insurance Program required for levee ac-
creditation on a National Flood Insurance Pro-
gram rate map. 
‘‘(B) 
AL 
ZONES.—For 
levee-impacted 
areas described in subparagraph (A), the Ad-
ministrator shall establish flood risk zones 
known as ‘AL Zones’ on the National Flood In-
surance Program rate map. 
‘‘(C) ACTUARIAL RATES.— 
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‘‘(i) IN GENERAL.—The Administrator 
shall make available flood insurance to 
properties in AL Zones at actuarial rates 
based upon the risk associated with struc-
tures within the applicable AL Zone. 
‘‘(ii) TEMPORARY RATES.—Until the 
Administrator promulgates actuarial rates 
for the various AL Zones, a structure with-
in a portion of a community located within 
a levee-impacted area described in sub-
paragraph (A) shall be eligible for rates as-
sociated with areas of moderate flood haz-
ards (also known as ‘Standard X zone’ 
rates).’’. 
SEC. 210. COMMUNITY-WIDE FLOOD MITIGATION ACTIVI-
TIES. 
It is the sense of Congress that the Administrator 
should consider flood mitigation activities that— 
(1) provide benefits to an entire floodplain or 
community, or to a portion of such a community; 
(2) consider all available and practicable ap-
proaches; and 
(3) the Administrator determines— 
(A) are technically feasible; 
(B) have the highest net benefits; and 
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(C) are consistent with mitigation plans 
approved by the Administrator. 
TITLE III—SOLVENCY 
SEC. 301. FORBEARANCE ON NFIP INTEREST PAYMENTS. 
(a) IN GENERAL.—During the 5-year period begin-
ning on the date of enactment of this Act, the Secretary 
of the Treasury may not charge the Administrator interest 
on amounts borrowed by the Administrator under section 
1309(a) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4016(a)) that were outstanding as of that date of 
enactment. 
(b) USE OF SAVED AMOUNTS.—There shall be depos-
ited into the National Flood Mitigation Fund an amount 
equal to the interest that would have accrued on the bor-
rowed amounts during the 5-year period described in sub-
section (a), which, notwithstanding any provision of sec-
tion 1367 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4104d), the Administrator shall use to carry 
out the program established under section 1366 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4104c). 
(c) NO RETROACTIVE ACCRUAL.—After the 5-year 
period described in subsection (a), the Secretary of the 
Treasury shall not require the Administrator to repay any 
interest that, but for that subsection, would have accrued 
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on the borrowed amounts described in that subsection dur-
ing that 5-year period. 
SEC. 302. CAP ON WRITE YOUR OWN COMPANY COMPENSA-
TION. 
(a) IN GENERAL.—Section 1311 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4018) is amend-
ed— 
(1) by redesignating subsection (b) as sub-
section (c); and 
(2) by inserting after subsection (a) the fol-
lowing: 
‘‘(b) LIMITATION
ON
COMPENSATION; MINIMUM 
AGENT COMMISSIONS.—In negotiating with appropriate 
representatives of the insurance industry under subsection 
(a), the Administrator shall ensure that— 
‘‘(1) any reimbursement paid to a property and 
casualty insurance company for selling, writing, and 
servicing flood insurance policies is not more than 
22.46 percent of the aggregate amount of premiums 
charged by the insurance company; and 
‘‘(2) an insurance company pays a portion of 
the reimbursement described in paragraph (1) to 
agents of the company as a commission, in an 
amount that is not less than 15 percent of the ag-
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gregate amount of the premiums sold by the 
agent.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
Section 1311 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4018), as amended by subsection (a), is 
amended— 
(1) in subsection (a), by striking ‘‘The Adminis-
trator’’ and inserting ‘‘IN GENERAL.—The Adminis-
trator’’; and 
(2) in subsection (c), as so redesignated by sub-
section (a) of this section, by striking ‘‘For purposes 
of subsection (a)’’ and inserting ‘‘DEFINITIONS.— 
For purposes of this section’’. 
SEC. 303. TAXPAYER PROTECTION. 
Section 1360(g) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4101(g)) is amended— 
(1) in the first sentence, by inserting ‘‘, subject 
to the following sentence,’’ after ‘‘at a reasonable 
cost’’; and 
(2) by inserting after the first sentence the fol-
lowing: ‘‘The Administrator shall develop a fee 
schedule based on recovering the actual costs of pro-
viding flood insurance rate maps to such other per-
sons, and shall charge a fee based on the schedule 
to any private entity for the use of such a map.’’. 
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SEC. 304. VENDOR COSTS; TRANSPARENCY. 
(a) IN GENERAL.—Section 100224(d) of the Biggert- 
Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 
4081 note) is amended— 
(1) by striking ‘‘Not later than 12 months after 
the date of enactment of this Act, the Adminis-
trator’’ and inserting the following: 
‘‘(1) IN GENERAL.—The Administrator’’; and 
(2) by adding at the end the following: 
‘‘(2) 
VENDOR
COSTS; 
TRANSPARENCY.—In 
issuing the rule under paragraph (1), the Adminis-
trator shall— 
‘‘(A) develop a schedule to determine the 
actual costs of Write Your Own vendors, includ-
ing claims adjusters and engineering companies; 
‘‘(B) provide that if a Write Your Own 
company requests reimbursement for the costs 
of a service or product provided to the company 
by a vendor, the Administrator only reimburses 
the company for the actual costs of the service 
or products; and 
‘‘(C) require that all reimbursements to 
Write Your Own companies be made public, in-
cluding a description of the product or service 
provided to which the reimbursement per-
tains.’’. 
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(b) DEADLINE FOR REVISED RULE.—Not later than 
90 days after the date of enactment of this Act, the Ad-
ministrator shall issue a revised rule under section 
100224(d) of the Biggert-Waters Flood Insurance Reform 
Act of 2012 (42 U.S.C. 4081 note), as amended by sub-
section (a). 
SEC. 305. AVAILABILITY OF NFIP CLAIMS DATA. 
(a) STUDY REQUIRED.— 
(1) IN
GENERAL.—The Administrator shall 
study the feasibility of selling or licensing the use of 
historical structure-specific National Flood Insur-
ance Program claims data (referred to in this sec-
tion as ‘‘covered claims data’’) to nongovernmental 
entities. 
(2) CONTENTS.—In conducting the study re-
quired under paragraph (1), the Administrator shall, 
at a minimum— 
(A) investigate 1 or more methods of pro-
viding the most specific covered claims data 
possible while reasonably protecting policyholder 
privacy; 
(B) review existing means, as of the date 
of enactment of this Act, by which the Federal 
Government and nongovernmental entities pro-
vide leases or licenses to private persons, and 
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the various regulations, terms, conditions, and 
guidance employed; 
(C) identify potential uses for covered 
claims data and any known risks concerning 
those uses, including the risk that private insur-
ance companies will use the data to issue flood 
insurance policies with respect to properties 
that have the lowest level of flood risk, which 
would require the National Flood Insurance 
Program to issue those policies with respect to 
properties with higher levels of flood risk; 
(D) identify mechanisms for determining 
the likely market value for access to covered 
claims data; 
(E) consider whether selling or licensing 
the use of covered claims data, as described in 
paragraph (1), would be in compliance with sec-
tion 552a of title 5, United States Code; and 
(F) recommend actions the Administrator 
could take, if any, to prevent unintended con-
sequences associated with the sale or licensing 
for private insurance purposes covered claims 
data. 
(b) REPORT BY ADMINISTRATOR.—Not later than 1 
year after the date of enactment of this Act, the Adminis-
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trator shall submit to the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representatives a 
report that contains the results and conclusions of the 
study conducted under subsection (a), which shall include 
an analysis of any recommendations made by the study. 
SEC. 306. REFUSAL OF MITIGATION ASSISTANCE. 
Section 1366 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4104c) is amended— 
(1) in subsection (a), in the matter preceding 
paragraph (1), in the first sentence, by inserting 
‘‘and, with respect to financial assistance described 
in paragraph (2), using amounts made available 
from the Disaster Relief Fund in accordance with 
section 203(n) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 
5133(n))’’ after ‘‘section 1367’’; 
(2) by redesignating subsection (h) as sub-
section (i); and 
(3) by inserting after subsection (g) the fol-
lowing: 
‘‘(h) REFUSAL OF ASSISTANCE.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘bona fide offer of assistance’ means an offer of as-
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sistance made by the Administrator to a policyholder 
under the national flood insurance program that— 
‘‘(A) relates to mitigation activities with 
respect to the structure insured under that pro-
gram; 
‘‘(B) covers 100 percent of the cost of the 
mitigation activities described in subparagraph 
(A); 
‘‘(C) permits the policyholder to continue 
to live in the structure to which the policy re-
lates; and 
‘‘(D) is carried out under a mitigation 
plan. 
‘‘(2) PENALTY.—If, after the date of enactment 
of this subsection, a policyholder under the national 
flood insurance program refuses a bona fide offer of 
assistance with respect to the property so insured, 
the Administrator shall, notwithstanding any other 
provision of this title, increase the chargeable risk 
premium rate for flood insurance under this title for 
the property by 25 percent each year until— 
‘‘(A) the policyholder accepts the bona fide 
offer of assistance; or 
‘‘(B) that chargeable risk premium rate is 
actuarially sound.’’. 
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TITLE IV—POLICYHOLDER 
PROTECTION AND FAIRNESS 
SEC. 401. EARTH MOVEMENT FIX AND ENGINEER STAND-
ARDS. 
(a) REBUTTABLE PRESUMPTION FOR FOUNDATION 
AND STRUCTURAL DAMAGE.— 
(1) IN
GENERAL.—Section 1312 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4019) is amended by adding at the end the fol-
lowing: 
‘‘(d) REBUTTABLE PRESUMPTION FOR FOUNDATION 
AND STRUCTURAL DAMAGE.— 
‘‘(1) IN GENERAL.—For the purposes of the 
Administrator determining coverage under the 
standard flood insurance policy under the national 
flood insurance program, a rebuttable presumption 
that physical damage to the foundation of, or struc-
tural damage to, a structure was not caused by 
earth movement shall apply if— 
‘‘(A) flood caused direct physical change to 
the structure; and 
‘‘(B) there is damage to the foundation of, 
or structural damage to, the structure that was 
not present before the flood, as demonstrated 
by a certification from the policyholder. 
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‘‘(2) REBUTTAL.—In determining coverage as a 
result of the rebuttable presumption under para-
graph (1), an insurance company may rebut the pre-
sumption only by providing the Administrator with 
an engineering report that— 
‘‘(A) meets standards issued by the Ad-
ministrator under paragraph (3); and 
‘‘(B) clearly demonstrates that the physical 
damage to the foundation of, or structural dam-
age to, a structure described in paragraph (1) 
was caused directly by earth movement that 
was not caused by— 
‘‘(i) the horizontal pressure from 
standing or slow-moving floodwater (com-
monly known as ‘hydrostatic pressure’); 
‘‘(ii) the force of floodwater that 
causes the vertical uplift from the under-
side of a horizontal foundation component, 
such as a concrete slab, footer, or a struc-
tural floor assembly (commonly known as 
‘buoyancy’); 
‘‘(iii) pressure imposed on an object, 
such as a wall of a building, by high-veloc-
ity floodwater or waves flowing against and 
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around the building (commonly known as 
‘hydrodynamic force’); 
‘‘(iv) floodwater moving along the sur-
face of the ground causing soil to suddenly 
erode or undermine, resulting in failure of 
a foundation or to one of the structural 
components of the foundation (commonly 
known as ‘scouring’); or 
‘‘(v) earth movement otherwise caused 
by flood. 
‘‘(3) IN
GENERAL.—The Administrator shall 
issue minimum standards— 
‘‘(A) regarding the form and content of en-
gineering reports used to assist insurance 
claims adjusters with respect to carrying out 
this subsection; and 
‘‘(B) which shall— 
‘‘(i) include a requirement that any 
such engineering report shall be signed and 
have a seal affixed by an engineer who is 
licensed in the State in which the property 
to which the claim relates is located; and 
‘‘(ii) be consistent with generally ac-
cepted practices in— 
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‘‘(I) the field of forensic engi-
neering; and 
‘‘(II) the insurance industry. 
‘‘(4) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection may be construed to modify the 
terms and conditions of the standard flood insurance 
policy.’’. 
(2) APPLICATION.—The amendments made by 
paragraph (1) shall apply with respect to a claim 
with a date of loss that is on or after the date that 
is 90 days after the date of enactment of this Act. 
(b) REGULATIONS.—Not later than 90 days after the 
date of enactment of this Act, the Administrator shall 
issue the standards required under subsection (d)(3) of 
section 1312 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4019), as added by subsection (a)(1). 
SEC. 402. COVERAGE OF PRE-FIRM CONDOMINIUM BASE-
MENTS AND STUDY ON STREET RAISING. 
(a) BASEMENT CLARIFICATION.— 
(1) IN
GENERAL.—Section 1305 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4012) is amended by adding at the end the fol-
lowing: 
‘‘(e) AVAILABILITY OF INSURANCE FOR PRE-FIRM 
CONDOMINIUM BASEMENTS.— 
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‘‘(1) DEFINITION.—In this subsection, the term 
‘pre-FIRM condominium building’ means a condo-
minium building that was not constructed or sub-
stantially improved after the later of— 
‘‘(A) December 31, 1974; or 
‘‘(B) the effective date of the initial flood 
insurance rate map published by the Adminis-
trator under section 1360 for the area in which 
the building is located. 
‘‘(2) 
COVERAGE.—The 
Administrator 
shall 
make flood insurance available to cover the base-
ment of any pre-FIRM condominium building if that 
basement serves as a separate residential unit within 
that condominium building.’’. 
(2) AMENDMENTS TO REGULATIONS.—Not later 
than 180 days after the date of enactment of this 
Act, the Administrator shall make any amendments 
to the regulations of the Federal Emergency Man-
agement Agency that are necessary as a result of the 
amendment made by paragraph (1). 
(b) STUDY
ON CONSEQUENCES
OF STREET-RAIS-
ING.— 
(1) DEFINITION.—In this subsection, the term 
‘‘affected property’’ means a property containing an 
area— 
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(A) the floor of which was located at or 
above grade before the community raised the 
street adjacent to the property; and 
(B) after the street-raising described in 
subparagraph (A), that was designated as a 
basement because of the street-raising. 
(2) STUDY; REPORT.—Not later than 1 year 
after the date of enactment of this Act, the Adminis-
trator shall study and submit to Congress a report 
on the consequences of street-raising on flood insur-
ance coverage for an affected property under the 
National Flood Insurance Program, including the 
cost implications for the property owner. 
SEC. 403. GUIDANCE ON REMEDIATION AND POLICY-
HOLDER DUTIES. 
(a) IN GENERAL.—Section 1312 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4019), as amend-
ed by section 401(a)(1), is amended by adding at the end 
the following: 
‘‘(e) GUIDANCE ON MOLD REMEDIATION.— 
‘‘(1) IN
GENERAL.—The Administrator shall 
issue guidance relating to the identification of rea-
sonable actions that a policyholder of coverage for 
flood insurance made available under this title may 
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take to inspect and maintain the property to which 
that coverage applies— 
‘‘(A) after a flood recedes; and 
‘‘(B) in order to avoid damage to the prop-
erty that is caused by mold, mildew, moisture, 
or water. 
‘‘(2) CONSIDERATIONS.—In developing guid-
ance under paragraph (1), the Administrator shall 
consider— 
‘‘(A) any applicable laws and regulations; 
‘‘(B) the terms and conditions of the 
standard flood insurance policy; 
‘‘(C) technical best practices; 
‘‘(D) the costs of remediation in relation to 
the condition of a property described in that 
paragraph; and 
‘‘(E) the actions that the Administrator 
may reasonably expect a policyholder described 
in that paragraph to take, given the likely chal-
lenges faced by the policyholder after a flood. 
‘‘(3) REGULAR
REVIEW.—The Administrator 
shall— 
‘‘(A) regularly review the guidance issued 
under paragraph (1); and 
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100 
‘‘(B) revise the guidance issued under 
paragraph (1) as the Administrator determines 
appropriate. 
‘‘(4) ANNUAL
DISTRIBUTION.—The Adminis-
trator shall provide a copy of the guidance issued 
under paragraph (1) to a policyholder at the time of 
the purchase or renewal of a flood insurance policy 
sold under this title.’’. 
(b) INITIAL ISSUANCE.—Not later than 1 year after 
the date of enactment of this Act, the Administrator shall 
issue the guidance required under subsection (e) of section 
1312 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4019), as added by subsection (a) of this section. 
(c) ACCESSIBILITY, REASONABLENESS AND DEGREE 
OF DAMAGE.—Section 1312 of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4019), as amended by sub-
section (a), is amended by adding at the end the following: 
‘‘(f) EXCLUSION OF CERTAIN DAMAGE.—For pur-
poses of determining whether damage caused by mold, mil-
dew, moisture, or water to a property shall be excluded 
from coverage under the standard flood insurance policy— 
‘‘(1) subject to paragraph (2), only the degree 
of damage caused by mold, mildew, moisture, or 
water that could have been avoided through inspec-
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101 
tion and maintenance may be excluded from that 
coverage; and 
‘‘(2) the condition of the property to which the 
damage relates may not be considered to be attrib-
utable to the policyholder with respect to the prop-
erty, including any failure by the policyholder to in-
spect and maintain the property after a flood re-
cedes, if— 
‘‘(A) the policyholder was denied access to 
the property after the flood receded because 
of— 
‘‘(i) a lawful government order; 
‘‘(ii) a determination by local authori-
ties that the property— 
‘‘(I) is unsafe or unstable; or 
‘‘(II) shall be condemned; or 
‘‘(iii) otherwise unsafe conditions; 
‘‘(B) a reasonable individual exercising 
reasonable judgment could not be expected to 
inspect, maintain, or mitigate the damage to 
the property under the circumstances; or 
‘‘(C) the policyholder faced particular chal-
lenges, including— 
‘‘(i) practical or financial difficulty in 
inspecting or maintaining the property; 
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102 
‘‘(ii) the need to address other more 
immediate priorities, including— 
‘‘(I) the health and well-being of 
the policyholder and the family of the 
policyholder; 
‘‘(II) the preservation of basic 
items; 
‘‘(III) displacement; and 
‘‘(IV) other issues that make in-
spection and maintenance of the prop-
erty a near-term challenge for the pol-
icyholder; and 
‘‘(iii) the unavailability of contractors 
or other individuals to perform any re-
quired inspection and maintenance.’’. 
SEC. 404. APPEAL OF DECISIONS RELATING TO FLOOD IN-
SURANCE COVERAGE. 
(a) IN GENERAL.—Section 205 of the Bunning-Be-
reuter-Blumenauer Flood Insurance Reform Act of 2004 
(42 U.S.C. 4011 note) is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘Not later’’ and inserting the following: 
‘‘(a) IN GENERAL.—Not later’’; and 
(2) by adding at the end the following: 
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103 
‘‘(b) DEADLINE TO FILE APPEAL.—The Director 
shall establish a deadline for filing an appeal under this 
section that is not less than 1 year after the date on which 
the decision being appealed was made. 
‘‘(c) NOTIFICATION
UPON
INITIAL
DENIAL
OF 
CLAIM.—The Director shall ensure that a claimant is pro-
vided with the rules, forms, and deadlines for an appeal 
under this section at the time a claim is first denied in 
full or in part, including— 
‘‘(1) the effective date of the denial; 
‘‘(2) a justification for the denial, including 
supporting documentation; 
‘‘(3) the date on which the period of limitation 
for instituting an action on the claim under section 
1333 or 1341 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4053 and 4072), as applicable, 
will end; and 
‘‘(4) a point of contact through which the 
claimant can directly discuss an appeal with a rep-
resentative of the Federal Emergency Management 
Agency. 
‘‘(d) DEADLINE TO RESOLVE APPEAL.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the date on which a policyholder has submitted 
all necessary information relating to an appeal under 
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104 
this section, the Director shall provide an appeal de-
cision in writing to the policyholder and insurer, in-
cluding specific information for the resolution of the 
appeal. 
‘‘(2) ENFORCEMENT.—If the Director does not 
comply with the deadline under paragraph (1) with 
respect to an appeal, and the policyholder that 
brought the appeal is ultimately successful, the Di-
rector shall pay to the policyholder interest on the 
claim that is the subject of the appeal, which shall— 
‘‘(A) begin accruing on the date on which 
the policyholder files the appeal; and 
‘‘(B) be calculated using the rate of return 
on a 3-year Treasury bill, as in effect on the 
date described in subparagraph (A). 
‘‘(3) NOTIFICATION
UPON
DENIAL
OF
AP-
PEAL.—If the Director denies an appeal filed by a 
policyholder under this section, the Director shall in-
clude with the notice of denial— 
‘‘(A) an explanation of the legal options of 
the policyholder for further challenging the de-
nial; and 
‘‘(B) the date on which the period of limi-
tation for instituting an action on the claim 
under section 1333 or 1341 of the National 
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105 
Flood Insurance Act of 1968 (42 U.S.C. 4053 
and 4072), as applicable, will end. 
‘‘(e) OPTIONAL ARBITRATION.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of this subsection, the 
Director shall, by regulation, establish a process 
through which a flood insurance policyholder, in-
stead of submitting an appeal under this section, 
may request that the appeal be heard through inde-
pendent, binding arbitration. 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
paragraph (1) may be construed to— 
‘‘(A) require a policyholder to submit to 
the arbitration described in that paragraph; or 
‘‘(B) prevent a policyholder from obtaining 
judicial review of the results of the arbitration 
described in that paragraph.’’. 
(b) RELATION TO REGULATIONS AND OTHER LAW.— 
Nothing in the amendments made by subsection (a) may 
be construed to require the Administrator to repeal the 
regulations promulgated under section 205 of the Bun-
ning-Bereuter-Blumenauer Flood Insurance Reform Act 
of 2004 (42 U.S.C. 4011 note), as in effect on the day 
before the date of enactment of this Act, or to promulgate 
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106 
new regulations, except as necessary to implement those 
amendments. 
SEC. 405. ACCOUNTABILITY FOR UNDERPAYMENTS AND 
OVERPAYMENTS BY WRITE YOUR OWN COM-
PANIES. 
Section 1348 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4084) is amended by adding at the end 
the following: 
‘‘(c) ACCOUNTABILITY
FOR UNDERPAYMENTS.—If 
the Administrator determines through any audit that the 
pool or an insurance company or other private organiza-
tion described in subsection (a) has not adjusted a claim 
in accordance with adjusting standards that are in effect 
as of the date on which the adjustment is performed and, 
as a result of that failure, has underpaid or overpaid a 
claim of a policyholder, the penalty imposed by the Admin-
istrator with respect to such a failure may not be less for 
an overpayment of a claim than for an underpayment of 
a claim. 
‘‘(d) GAO REPORT.—Not later than 2 years after the 
date of enactment of this subsection, and triennially there-
after, the Comptroller General of the United States shall 
submit to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Finan-
cial Services of the House of Representatives a report re-
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107 
garding any fines or other penalties imposed by the Ad-
ministrator under subsection (c).’’. 
SEC. 406. POLICYHOLDERS’ RIGHT TO KNOW. 
(a) USE.—Section 1312 of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4019), as amended by section 
403(c), is amended by adding at the end the following: 
‘‘(g) USE OF TECHNICAL ASSISTANCE REPORTS.— 
When adjusting claims for any damage to or loss of prop-
erty that is covered by flood insurance made available 
under this title, the Administrator may rely upon technical 
assistance reports, as defined in section 1312A(a), only 
if the reports are final and are prepared in compliance 
with applicable State and Federal laws regarding profes-
sional licensure and conduct.’’. 
(b) DISCLOSURE.—Chapter I of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amend-
ed by inserting after section 1312 (42 U.S.C. 4019) the 
following: 
‘‘SEC. 1312A. DISCLOSURE OF CLAIMS DOCUMENTS AND 
TECHNICAL ASSISTANCE REPORTS. 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘policyholder’ means any person 
listed as a named or additional insured on the dec-
larations page of a policy for flood insurance cov-
erage made available under this title; and 
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‘‘(2) the term ‘technical assistance report’ 
means a report created for the purpose of furnishing 
technical assistance to an insurance claims adjuster 
assigned under the national flood insurance pro-
gram, including any report created by an engineer, 
a surveyor, a salvor, an architect, or a certified pub-
lic accountant. 
‘‘(b) PROVISION OF COPIES.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 
552a of title 5, United States Code, not later than 
1 week after the date on which the Administrator re-
ceives a written request, or a request submitted on-
line, from a policyholder, and with respect to a claim 
for loss submitted by the policyholder for any dam-
age to or loss of property that is covered by the pol-
icy, the Administrator shall provide a true, complete, 
and unredacted copy of— 
‘‘(A) all documents that constitute the 
claims file of the insurance company with re-
spect to the claim; 
‘‘(B) any document created by any ad-
juster in scoping the loss, including measure-
ments, photographs, and notes; 
‘‘(C) any estimates of damages with re-
spect to the claim; 
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109 
‘‘(D) any draft and final technical assist-
ance report relating to adjusting and paying or 
denying the claim; 
‘‘(E) any proof of loss, supplemental proofs 
of loss, or any equivalent notices, together with 
supporting documentation, with respect to the 
claim; and 
‘‘(F) any document relating to the denial 
or partial denial of the claim. 
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
paragraph (1) may be construed to limit the right of 
a policyholder to receive a disclosure under section 
552a of title 5, United States Code, or any other 
provision of law. 
‘‘(c) DIRECT DISCLOSURE BY WRITE YOUR OWN 
COMPANIES AND DIRECT SERVICING AGENTS.— 
‘‘(1) IN GENERAL.—A Write Your Own com-
pany or direct servicing agent in possession of any 
technical assistance report that is subject to disclo-
sure under subsection (b) may disclose such tech-
nical assistance report without further review or ap-
proval by the Administrator. 
‘‘(2) AFFIRMATIVE
NOTIFICATION.—A Write 
Your Own company, or any other entity servicing a 
claim under the national flood insurance program, 
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shall, not later than 30 days after the date on which 
the company or entity receives notice of a claim, no-
tify the claimant that the claimant or an authorized 
representative of the claimant may obtain, upon re-
quest, a copy of any claim-related document de-
scribed in subsection (b)(1) that pertains to the 
claimant.’’. 
(c) TRANSMISSION
OF
REPORT
WITHOUT
AP-
PROVAL.— 
(1) DEFINITION.—In this subsection, the term 
‘‘final engineering report’’ means an engineering re-
port, survey, or other document in connection with 
a claim for losses covered by a policy for flood insur-
ance coverage made available under the National 
Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
seq.) that— 
(A) is based on an on-site inspection; 
(B) contains final conclusions with respect 
to an engineering issue or issues involved in the 
claim; and 
(C) is signed by the responsible in charge 
or affixed with the seal of the responsible in 
charge, or both. 
(2) TRANSMISSION.—A Write Your Own com-
pany or a National Flood Insurance Program direct 
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111 
servicer may, without obtaining further review or ap-
proval by the Administrator, transmit to a policy-
holder a final engineering report in the possession of 
the Write Your Own company or the direct servicer 
in connection with a claim submitted by the policy-
holder. 
SEC. 407. INCREASING STATUTE OF LIMITATIONS FOR LAW-
SUITS. 
(a) GOVERNMENT PROGRAM WITH INDUSTRY AS-
SISTANCE.—Section 1341 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4072) is amended to read as fol-
lows: 
‘‘SEC. 1341. ADJUSTMENT AND PAYMENT OF CLAIMS AND 
JUDICIAL REVIEW. 
‘‘(a) ADJUSTMENT AND PAYMENT OF CLAIMS.—If 
the program is carried out as provided in section 1340, 
the Administrator may adjust and make payment of any 
claims for proved and approved losses covered by flood in-
surance made available under this title. 
‘‘(b) JUDICIAL REVIEW.— 
‘‘(1) RIGHT OF ACTION.—Upon the denial or 
partial denial by the Administrator of a claim de-
scribed in subsection (a), or upon the refusal of a 
policyholder to accept the amount allowed upon a 
claim described in that subsection, the policyholder 
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may institute an action against the Administrator on 
the claim in the United States district court for the 
district in which the insured property or the major 
part thereof shall have been situated if filed not 
later than 2 years after the date on which the policy-
holder receives notice of denial or partial denial of 
the claim. 
‘‘(2) TOLLING.—In the case of a denial or par-
tial denial of a claim for losses that is appealed 
under section 205 of the Bunning-Bereuter-Blu-
menauer Flood Insurance Reform Act of 2004 (42 
U.S.C. 4011 note), including through arbitration re-
quested under subsection (e) of that section, the lim-
itation to institute an action under this subsection 
shall be tolled until the date on which the policy-
holder receives notice of a final determination of 
that appeal or arbitration denying the claim in whole 
or in part. 
‘‘(3) JURISDICTION.—A court described in 
paragraph (1) shall have original exclusive jurisdic-
tion to hear and determine an action under that 
paragraph without regard to the amount in con-
troversy.’’. 
(b) INDUSTRY PROGRAM WITH FEDERAL FINANCIAL 
ASSISTANCE.—Section 1333 of the National Flood Insur-
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ance Act of 1968 (42 U.S.C. 4053) is amended to read 
as follows: 
‘‘SEC. 1333. ADJUSTMENT AND PAYMENT OF CLAIMS AND 
JUDICIAL REVIEW. 
‘‘(a) ADJUSTMENT AND PAYMENT OF CLAIMS.—The 
insurance companies and other insurers that form, asso-
ciate, or otherwise join together in the pool under this part 
may adjust and pay all claims for proved and approved 
losses covered by flood insurance in accordance with the 
provisions of this title. 
‘‘(b) JUDICIAL REVIEW.— 
‘‘(1) RIGHT OF ACTION.—Upon the denial or 
partial denial by any company or other insurer de-
scribed in subsection (a) of a claim described in that 
subsection, or upon the refusal of a policyholder to 
accept the amount allowed upon a claim described in 
that subsection, the policyholder may institute an ac-
tion on the claim against the company or other in-
surer, as applicable, in the United States district 
court for the district in which the insured property 
or the major part thereof shall have been situated 
not later than 2 years after the date on which the 
policyholder receives notice of denial or partial denial 
of the claim. 
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‘‘(2) TOLLING.—In the case of a denial or par-
tial denial of a claim for losses that is appealed 
under section 205 of the Bunning-Bereuter-Blu-
menauer Flood Insurance Reform Act of 2004 (42 
U.S.C. 4011 note), including through arbitration re-
quested under subsection (e) of that section, the lim-
itation to institute an action under this subsection 
shall be tolled until the date on which the policy-
holder receives notice of a final determination of 
that appeal or arbitration denying the claim in whole 
or in part. 
‘‘(3) JURISDICTION.—A court described in 
paragraph (1) shall have original exclusive jurisdic-
tion to hear and determine an action under that 
paragraph without regard to the amount in con-
troversy.’’. 
SEC. 408. AUTHORITY TO TERMINATE CONTRACTORS AND 
VENDORS. 
(a) IN GENERAL.—Part C of chapter II of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4081 et 
seq.) is amended by adding at the end the following: 
‘‘SEC. 1349. TERMINATION OF CONTRACTS. 
‘‘(a) DEFINITION.—In this section, the term ‘covered 
entity’ means any attorney, law firm, consultant, or third- 
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spect to which the Administrator directs termination 
under paragraph (1). 
‘‘(4) CONTRACT
TERMS.—The Administrator 
shall require each Write Your Own company to in-
clude a reference to the authority of the Adminis-
trator under this section in any contract between a 
covered entity and the Write Your Own company.’’. 
(b) EFFECTIVE DATE; APPLICABILITY.—The amend-
ment made by subsection (a) shall apply to any contract 
or other agreement between a covered entity, as defined 
in section 1349(a) of the National Flood Insurance Act 
of 1968, as added by subsection (a), and a Write Your 
Own company that is entered into on or after the date 
of enactment of this Act. 
SEC. 409. EASING PROOF OF LOSS REQUIREMENTS. 
Section 1312 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4019), as amended by section 406(a), 
is amended by adding at the end the following: 
‘‘(h) PROOF OF LOSS.— 
‘‘(1) DEADLINE FOR SUBMISSION OF SUPPLE-
MENTAL PROOF OF LOSS.—If a policyholder submits 
a proof of loss, or an equivalent submission, for a 
claim with respect to a policy for flood insurance 
coverage made available under this title by the dead-
line required under the standard flood insurance pol-
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117 
icy, the Administrator may not deny payment for 
any supplemental proof of loss submitted for flood 
damage sustained from the same flood event on the 
basis that the policyholder failed to include the flood 
damages on the initial proof of loss. 
‘‘(2) EFFECT
OF
SIGNATURE
ON
PROOF
OF 
LOSS.—If a policyholder of a policy for flood insur-
ance coverage made available under this title signs 
an initial or supplemental proof of loss described in 
paragraph (1), that act of signing may not preclude 
the policyholder from making supplemental claims 
to, or otherwise amending, the initial proof of loss. 
‘‘(i) NO CONDITION OF PAYMENT.—Notwithstanding 
any other provision of law, or any term or condition of 
a standard flood insurance policy, the Administrator may 
not condition payment of an undisputed claim based on 
the submission of a signed and sworn to proof of loss.’’. 
SEC. 410. DEADLINE FOR CLAIM PROCESSING. 
(a) IN GENERAL.—Section 1312 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4019), as amend-
ed by section 409, is amended by adding at the end the 
following: 
‘‘(j) DEADLINE FOR APPROVAL OF CLAIMS.— 
‘‘(1) IN
GENERAL.—The Administrator shall 
provide that, in the case of a claim for damage to 
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or loss of property that is covered by a policy for 
flood insurance made available under this title— 
‘‘(A) except as provided in paragraph (2), 
not later than 60 days after the date on which 
a proof of loss or comparable submission is pro-
vided to the Administrator— 
‘‘(i) an initial determination regarding 
approval of the claim for payment or dis-
approval of the claim shall be made; and 
‘‘(ii) notification of the determination 
described in clause (i) shall be provided to 
the policyholder making the claim; and 
‘‘(B) payment of an approved claim shall 
be made as soon as possible after that approval. 
‘‘(2) EXTENSION OF DEADLINE.—The Adminis-
trator shall— 
‘‘(A) provide that the period described in 
paragraph (1)(A) may be extended by an addi-
tional period of 30 days under extraordinary 
circumstances; and 
‘‘(B) by regulation— 
‘‘(i) establish criteria for— 
‘‘(I) demonstrating the extraor-
dinary circumstances described in sub-
paragraph (A); and 
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‘‘(II) determining to which claims 
the extraordinary circumstances de-
scribed in subparagraph (A) apply; 
and 
‘‘(ii) provide that, if the deadline im-
posed under paragraph (1)(A), as extended 
under subparagraph (A), if applicable, is 
not satisfied, the amount of the claim to 
which the deadline relates shall be in-
creased with interest, which shall begin ac-
cruing on the date on which the initial 
claim is filed.’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to any claim for damage to or loss 
of property that is covered by a policy for flood insurance 
made available under the National Flood Insurance Pro-
gram that is made after the date of enactment of this Act. 
SEC. 411. NO MANIPULATION OF ENGINEER REPORTS. 
Section 1312 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4019), as amended by section 410(a), 
is amended by adding at the end the following: 
‘‘(k) FINAL ENGINEERING REPORTS.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘covered claim’ means any 
claim for losses covered by a policy for flood in-
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surance coverage made available under this 
title; and 
‘‘(B) the term ‘final engineering report’ 
means an engineering report, survey, or other 
document in connection with a covered claim 
that— 
‘‘(i) is based on an on-site inspection; 
‘‘(ii) contains final conclusions with 
respect to an engineering issue or issues 
involved in the claim; and 
‘‘(iii) is signed by the responsible in 
charge or affixed with the seal of the re-
sponsible in charge, or both. 
‘‘(2) PROHIBITION
ON
MANIPULATION
AND 
TRANSMISSION TO THIRD PARTIES.—The Adminis-
trator shall require that, in the case of any on-site 
inspection of a property by an engineer for the pur-
pose of assessing any covered claim, the final engi-
neering report— 
‘‘(A) may not— 
‘‘(i) include alterations by, or at the 
request of, anyone other than the person 
responsible for the report; or 
‘‘(ii) be transmitted to any other per-
son before the final engineering report is 
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121 
transmitted to the policyholder who sub-
mitted the covered claim; and 
‘‘(B) shall include a certification, signed by 
the person responsible for the final engineering 
report, that the final engineering report does 
not contain any alterations described in sub-
paragraph (A).’’. 
SEC. 412. IMPROVED TRAINING OF FLOODPLAIN MAN-
AGERS, AGENTS, AND ADJUSTERS. 
(a) LOCAL FLOODPLAIN MANAGERS.—Each regional 
office of the Federal Emergency Management Agency 
shall— 
(1) provide training to local floodplain man-
agers, agents, and claim adjusters in the region re-
garding the responsibilities and procedures of local 
floodplain managers with respect to conducting sub-
stantial damage and substantial improvement deter-
minations; 
(2) work with applicable State agencies to pro-
vide the training described in paragraph (1); and 
(3) verify that the individuals described in para-
graph (1) are completing the training described in 
that paragraph. 
(b) MAJOR DISASTER TRAINING.—After a flood that 
is declared a major disaster by the President under section 
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122 
401 of the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5170), the Administrator 
shall, if determined appropriate, provide— 
(1) refresher training to prepare insurance 
claims adjusters for the unique circumstances of the 
major disaster; and 
(2) any briefings that are necessary to prepare 
and inform floodplain managers, agents, and claim 
adjusters regarding any atypical circumstances and 
issues arising from the natural disaster. 
SEC. 413. ATTORNEY FEE SHIFTING. 
(a) ADMINISTRATIVE APPEALS.—Subsection (d) of 
section 1312 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4019), as added by section 401(a)(1), is 
amended by adding at the end the following: 
‘‘(5) AWARDS FOR COSTS IN ADMINISTRATIVE 
PROCEEDINGS.— 
‘‘(A) IN GENERAL.—If the claimant pre-
vails in any appeal to the Administrator of the 
disallowance or partial disallowance of a claim 
for losses covered by flood insurance made 
available under this title, the Administrator 
shall award costs of the appeal, including attor-
ney fees, any proceeding expenses, and engi-
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123 
neering and other expert expenses, to the claim-
ant. 
‘‘(B) DEFINITION.—For purposes of this 
paragraph, the term ‘prevail’ means to be 
awarded a greater amount by the Administrator 
than the amount of the last, best offer from the 
Administrator with respect to the claim of the 
claimant.’’. 
(b) JUDICIAL REVIEW.— 
(1) GOVERNMENT
PROGRAM
WITH
INDUSTRY 
ASSISTANCE.—Subsection (b) of section 1341 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 
4072), as added by section 407(a), is amended by 
adding at the end the following: 
‘‘(4) ATTORNEY FEES AND OTHER LITIGATION 
COSTS.— 
‘‘(A) IN GENERAL.—If the claimant pre-
vails in an action under this subsection, the 
court shall award reasonable costs of litigation, 
including attorney fees, litigation expenses, and 
engineering and other expert expenses, to the 
claimant. 
‘‘(B) SUBROGATION.—Any award under 
subparagraph (A) shall be paid by the Adminis-
trator and, upon such payment, the Adminis-
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trator shall be subrogated to the rights of the 
claimant to recover such costs for which the 
Administrator has compensated the claimant 
from any insurance company or other insurer or 
insurance adjustment organization that may be 
responsible for the disallowance or partial dis-
allowance of the claim. 
‘‘(C) DEFINITION.—For purposes of this 
paragraph, the term ‘prevail’ means to be 
awarded a greater amount by the court than 
the amount of the last, best offer from the Ad-
ministrator with respect to the claim of the 
claimant.’’. 
(2) INDUSTRY PROGRAM WITH FEDERAL FINAN-
CIAL ASSISTANCE.—Subsection (b) of section 1333 
of the National Flood Insurance Act of 1968 (42 
U.S.C. 4053), as amended by section 407(b), is 
amended by adding at the end the following: 
‘‘(4) ATTORNEY FEES AND OTHER LITIGATION 
COSTS.— 
‘‘(A) IN GENERAL.—If the claimant pre-
vails in an action under this subsection, the 
court shall award reasonable costs of litigation, 
including attorney fees, litigation expenses, and 
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engineering and other expert expenses, to the 
claimant. 
‘‘(B) SUBROGATION.—Any award under 
subparagraph (A) shall be paid by the Adminis-
trator and, upon such payment, the Adminis-
trator shall be subrogated to the rights of the 
claimant to recover such costs for which the 
Administrator has compensated the claimant 
from any company or other insurer responsible 
for the disallowance or partial disallowance of 
the claim. 
‘‘(C) DEFINITION.—For purposes of this 
paragraph, the term ‘prevail’ means to be 
awarded a greater amount by the court than 
the amount of the last, best offer from the in-
surer or Administrator with respect to the claim 
of the claimant.’’. 
SEC. 414. DOJ DEFENSE AGAINST POLICYHOLDER LAW-
SUITS. 
Subsection (b) of section 1341 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4072), as amended by 
section 413(b)(1), is amended by adding at the end the 
following: 
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‘‘(5) REPRESENTATION
BY
DEPARTMENT
OF 
JUSTICE.—If a claimant institutes an action under 
this subsection— 
‘‘(A) the Administrator shall refer the mat-
ter to the Attorney General; and 
‘‘(B) the Attorney General— 
‘‘(i) shall represent the Administrator 
or the Write Your Own company, as appli-
cable, in the action; and 
‘‘(ii) may not seek to have the court 
dismiss an action with potentially meri-
torious claims based on good faith errors 
or omissions by the claimant in the claim-
ant’s proof of loss.’’. 
SEC. 415. PILOT PROGRAM FOR PRE-EXISTING STRUC-
TURAL CONDITIONS. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘covered property’’ means a prop-
erty that is or may be covered by flood insurance 
under the National Flood Insurance Program; and 
(2) the term ‘‘covered policyholder’’ means a 
policyholder or potential policyholder of flood insur-
ance under the National Flood Insurance Program 
for a covered property. 
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(b) PILOT PROGRAM.—Not later than 180 days after 
the date of enactment of this Act, the Administrator shall 
establish a pilot program under which Write Your Own 
companies and National Flood Insurance Program direct 
servicers shall, at the request of a covered policyholder and 
before providing or renewing insurance coverage with re-
spect to a covered property under the National Flood In-
surance Program, investigate the pre-existing structural 
condition of the covered property for any issues that could 
result in the denial of a claim under the National Flood 
Insurance Program for damage to or loss of the covered 
property. 
SEC. 416. AGENT ADVISORY COUNCIL. 
Part C of chapter II of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4081 et seq.), as amended by sec-
tion 408, is amended by adding at the end the following: 
‘‘SEC. 1350. AGENT ADVISORY COUNCIL. 
‘‘(a) ESTABLISHMENT.—There is established a coun-
cil to be known as the Agent Advisory Council (in this 
section referred to as the ‘Council’). 
‘‘(b) MEMBERSHIP.— 
‘‘(1) MEMBERS.—The Council shall consist of— 
‘‘(A) the Administrator, or the designee of 
the Administrator; and 
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‘‘(B) 10 additional members appointed by 
the Administrator or the designee of the Ad-
ministrator, of whom— 
‘‘(i) 1 shall be a member of the Na-
tional Association of Insurance Commis-
sioners; 
‘‘(ii) 2 shall be members of the Inde-
pendent Insurance Agents and Brokers of 
America; 
‘‘(iii) 1 shall be a member of United 
Policyholders; 
‘‘(iv) 1 shall be a representative of the 
Emergency Management Institute of the 
Federal Emergency Management Agency; 
‘‘(v) 1 shall be a representative of the 
Office of the Flood Insurance Advocate of 
the 
Federal 
Emergency 
Management 
Agency; 
‘‘(vi) 2 shall be members of the Na-
tional Association of Professional Insur-
ance Agents; 
‘‘(vii) 1 shall be a representative of a 
recognized professional association or orga-
nization representing homebuilders or land 
developers; and 
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129 
‘‘(viii) 1 shall be a representative of a 
recognized professional association or orga-
nization representing the real estate indus-
try. 
‘‘(2) QUALIFICATIONS.— 
‘‘(A) IN GENERAL.—Each member of the 
Council shall have experience with— 
‘‘(i) contacting policyholders under the 
national flood insurance program, includ-
ing with respect to applying for flood in-
surance and processing a claim for damage 
to or loss of property that is covered by 
flood insurance; and 
‘‘(ii) riverine and coastal flood insur-
ance policies. 
‘‘(B) 
CONSIDERATIONS.—The 
Adminis-
trator shall, to the maximum extent practicable, 
ensure that the membership of the Council has 
a balance of governmental and private mem-
bers, and includes geographic diversity. 
‘‘(C) CONFLICTS OF INTEREST.—A mem-
ber of the Council— 
‘‘(i) may not, while serving on the 
Council, be employed or retained— 
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‘‘(I) by a Federal Emergency 
Management Agency contractor or 
consultant; or 
‘‘(II) by a nongovernmental enti-
ty that was awarded a Federal grant 
during the 5-year period preceding the 
date on which the member was ap-
pointed to the Council; and 
‘‘(ii) may not have been employed by 
a Federal Emergency Management Agency 
contractor or consultant during the 5-year 
period preceding the date on which the 
member was appointed to the Council. 
‘‘(3) CONSULTATION.—In appointing a member 
of the Council from an entity described in clauses (i) 
through (viii) of paragraph (1)(B), the Adminis-
trator or the designee of the Administrator, as appli-
cable, shall consult with the entity. 
‘‘(4) CHAIRPERSON.—The members of the 
Council shall elect 1 member to serve as the chair-
person of the Council (in this section referred to as 
the ‘Chairperson’). 
‘‘(c) DUTIES.—The Council shall— 
‘‘(1) provide recommendations to the Adminis-
trator on— 
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‘‘(A) improving the customer experience 
for policyholders under the national flood insur-
ance program; 
‘‘(B) training insurance agents that issue 
flood insurance policies; and 
‘‘(C) improving the processing and han-
dling of claims for damage to or loss of prop-
erty that is covered by flood insurance; and 
‘‘(2) submit to the Administrator an annual re-
port that includes— 
‘‘(A) a description of the activities of the 
Council; and 
‘‘(B) a summary of recommendations made 
by the Council to the Administrator. 
‘‘(d) COMPENSATION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a member of the Council shall receive no 
additional compensation for serving on the Council. 
‘‘(2) TRAVEL EXPENSES.—Each member of the 
Council may be allowed travel expenses, including 
per diem in lieu of subsistence, in accordance with 
sections 5702 and 5703 of title 5, United States 
Code, while away from their homes or regular places 
of business in performance of services for the Coun-
cil. 
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‘‘(e) MEETINGS AND ACTIONS.— 
‘‘(1) MEETINGS.— 
‘‘(A) IN
GENERAL.—The Council shall 
meet not less frequently than twice each year at 
the request of the Chairperson or a majority of 
the members of the Council. 
‘‘(B) INITIAL
MEETING.—The Adminis-
trator, or a designee of the Administrator, shall 
request and coordinate the initial meeting of 
the Council. 
‘‘(2) ACTION BY MAJORITY VOTE.—The Council 
may take action by a vote of the majority of the 
members. 
‘‘(f) OFFICERS.—The Chairperson may appoint offi-
cers to assist in carrying out the duties of the Council 
under subsection (c). 
‘‘(g) STAFF.—Upon the request of the Chairperson, 
the Administrator may detail, on a nonreimbursable basis, 
personnel of the Office of the Flood Insurance Advocate 
of the Federal Emergency Management Agency to assist 
the Council in carrying out the duties of the Council. 
‘‘(h) POWERS.—In carrying out this section, the 
Council may hold hearings, receive evidence and assist-
ance, provide information, and conduct research as the 
Council considers appropriate. 
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‘‘(i) REPORT TO CONGRESS AND OMB.—The Admin-
istrator shall submit to the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate, the Committee on 
Financial Services of the House of Representatives, and 
the Director of the Office of Management and Budget an 
annual report on— 
‘‘(1) the recommendations made by the Council; 
and 
‘‘(2) any recommendations made by the Council 
during the year covered by the report that, as of the 
date on which the report is submitted, have been de-
ferred or not acted upon, together with an explana-
tory statement with respect to those recommenda-
tions. 
‘‘(j) APPLICABILITY
OF
THE FEDERAL ADVISORY 
COMMITTEE ACT.—Section 14 of the Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the 
Council.’’. 
SEC. 417. DISCLOSURE OF FLOOD RISK INFORMATION 
UPON TRANSFER OF PROPERTY. 
(a) IN GENERAL.—Chapter I of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4011 et seq.), as 
amended by section 207, is amended by adding at the end 
the following: 
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