I 
115TH CONGRESS 
2D SESSION 
H. R. 6402 
To extend the National Flood Insurance Program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 17, 2018 
Mr. ROYCE of California (for himself and Mr. BLUMENAUER) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To extend 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 Extension and Enhanced Consumer and 
Community Protections Act of 2018’’. 
SEC. 2. EXTENSION OF NATIONAL FLOOD INSURANCE PRO-
GRAM. 
(a) FINANCING.—Section 1309(a) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) is 
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amended by striking ‘‘September 30, 2017’’ and inserting 
‘‘November 30, 2018’’. 
(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, 2017’’ and inserting 
‘‘November 30, 2018’’. 
SEC. 3. COMMUNITY ACCOUNTABILITY FOR REPETITIVELY 
FLOODED AREAS. 
(a) IN GENERAL.—Section 1361 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4102) is amended 
by adding at the end the following new subsection: 
‘‘(e) COMMUNITY
ACCOUNTABILITY
FOR
REPET-
ITIVELY DAMAGED AREAS.— 
‘‘(1) IN
GENERAL.—The Administrator shall, 
by regulation, require any covered community (as 
such term is defined in paragraph (5))— 
‘‘(A) to identify the areas within the com-
munity where properties described in paragraph 
(5)(B) or flood-damaged facilities are located to 
determine areas repeatedly damaged by floods 
and to assess, with assistance from the Admin-
istrator, the continuing risks to such areas; 
‘‘(B) to develop a community-specific plan 
for mitigating continuing flood risks to such re-
petitively flooded areas and to submit such plan 
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and plan updates to the Administrator at ap-
propriate intervals; 
‘‘(C) to implement such plans; and 
‘‘(D) to make such plan, plan updates, and 
reports on progress in reducing flood risk avail-
able to the public, subject to section 552a of 
title 5, United States Code. 
‘‘(2) INCORPORATION INTO EXISTING PLANS.— 
Plans developed pursuant to paragraph (1) may be 
incorporated into mitigation plans developed under 
section 1366 of this Act (42 U.S.C. 4104c) and haz-
ard mitigation plans developed under section 322 of 
the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5165). 
‘‘(3) ASSISTANCE TO COMMUNITIES.— 
‘‘(A) DATA.—To assist communities in 
preparation of plans required under paragraph 
(1), the Administrator shall, upon request, pro-
vide covered communities with appropriate data 
regarding the property addresses and dates of 
claims associated with insured properties within 
the community. 
‘‘(B) MITIGATION GRANTS.—In making de-
terminations 
regarding 
financial 
assistance 
under the authorities of this Act, the Adminis-
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trator may consider the extent to which a com-
munity has complied with this subsection and is 
working to remedy problems with addressing re-
peatedly flooded areas. 
‘‘(4) SANCTIONS.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall, by regulations issued in accordance with 
the procedures established under section 553 of 
title 5, United States Code, regarding sub-
stantive rules, provide appropriate sanctions for 
covered communities that fail to comply with 
the requirements under this subsection or to 
make sufficient progress in reducing the flood 
risks to areas in the community that are repeat-
edly damaged by floods. 
‘‘(B) NOTICE.—Before imposing any sanc-
tion pursuant to this paragraph, the Adminis-
trator shall provide the covered community in-
volved with notice of the non-compliance that 
could result in the imposition of sanctions, 
which shall include recommendations for actions 
to bring the covered community into compli-
ance. 
‘‘(C) CONSIDERATIONS.—In determining 
appropriate sanctions to impose under this 
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paragraph, the Administrator shall consider the 
resources available to the covered community 
involved, including Federal funding, the portion 
of the covered community that lies within an 
area having special flood hazards, and other 
factors that make it difficult for the covered 
community to conduct mitigation activities for 
existing flood-prone structures. 
‘‘(5) COVERED COMMUNITY.—For purposes of 
this subsection, the term ‘covered community’ means 
a community— 
‘‘(A) that is participating, pursuant to sec-
tion 1315, in the national flood insurance pro-
gram; and 
‘‘(B) within which are located— 
‘‘(i) 50 or more repetitive loss struc-
tures for each of which, during any 10- 
year period, two or more claims for pay-
ments under flood insurance coverage have 
been made with a cumulative amount ex-
ceeding $1,000; 
‘‘(ii) 5 or more severe repetitive loss 
structures (as such term is defined in sec-
tion 1366(h)) for which mitigation activi-
ties meeting the standards for approval 
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under section 1366(c)(2)(A) have not been 
conducted; or 
‘‘(iii) a public facility or a private 
nonprofit facility (as such terms are as de-
fined in section 102 of the Robert T. Staf-
ford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5122)), that has re-
ceived assistance for repair, restoration, re-
construction, or replacement under section 
406 of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 
U.S.C. 5172) in connection with more than 
one flooding event in the most recent 10- 
year period. 
‘‘(6) REPETITIVE-LOSS STRUCTURE.—For pur-
poses of this subsection, the term ‘repetitive loss 
structure’ has the meaning given such term in sec-
tion 1370 (42 U.S.C. 4121). 
‘‘(7) REPORTS TO CONGRESS.—Not later than 
the expiration of the 6-year period beginning upon 
the date of the enactment of this subsection, and not 
less than every 2 years thereafter, the Administrator 
shall submit a report to the Congress regarding the 
progress in implementing plans developed pursuant 
to paragraph (1)(B).’’. 
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(b) REGULATIONS.—The Administrator of the Fed-
eral Emergency Management Agency shall issue regula-
tions necessary to carry out subsection (e) of section 1361 
of the National Flood Insurance Act of 1968, as added 
by the amendment made by subsection (a) of this section, 
not later than the expiration of the 12-month period that 
begins on the date of the enactment of this Act. 
SEC. 4. INCREASED COST OF COMPLIANCE. 
(a) IN GENERAL.—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 
(4) as subparagraphs (A) through (D), respectively, 
and adjusting the margins accordingly; 
(3) in the matter preceding subparagraph (A), 
as so redesignated, by striking ‘‘The national’’ and 
inserting the following: 
‘‘(1) IN GENERAL.—The national’’; 
(4) in paragraph (1), as so designated— 
(A) in subparagraph (A), as so redesig-
nated, by inserting ‘‘, without regard to whether 
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holder to use insurance purchased under this sub-
section for any eligible project costs under a pro-
gram described in clause (i), (ii), or (iii) of para-
graph (1)(D) of an acquisition, demolition, elevation, 
relocation, or small structural project funded under 
that program, including— 
‘‘(A) asbestos remediation; 
‘‘(B) the demolition of a driveway or side-
walk when a structure is acquired; and 
‘‘(C) the addition of a lift, ramp, or other 
device that is necessary for a homeowner or oc-
cupant with a physical limitation or disability to 
safely access a home that has been elevated. 
‘‘(3) SURCHARGES.— 
‘‘(A) PRIMARY COVERAGE.—The Adminis-
trator shall impose a surcharge on each insured 
of an amount per policy that the Administrator 
determines is appropriate in order to provide 
cost of compliance coverage in accordance with 
paragraph (4)(A). 
‘‘(B) ENHANCED
COVERAGE.—For each 
policy for flood insurance made available under 
this title with respect to which enhanced cov-
erage is provided under paragraph (4)(B), the 
Administrator shall impose a surcharge, in ad-
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dition to the surcharge imposed under subpara-
graph (A), in an amount that the Administrator 
determines appropriate. 
‘‘(4) AMOUNT OF COVERAGE.— 
‘‘(A) PRIMARY
COVERAGE.—Each policy 
for flood insurance coverage made available 
under this title shall provide coverage under 
this subsection having an aggregate liability for 
any single property of $60,000. 
‘‘(B) 
ENHANCED
COVERAGE.—Notwith-
standing the limitation under subparagraph 
(A), the Administrator shall provide, upon re-
quest by a policyholder, enhanced coverage 
under this subsection having an aggregate li-
ability for any single property in an amount 
that is not more than $100,000. 
‘‘(5) TREATMENT OF COVERAGE LIMITS.—The 
purchase of insurance under this subsection with re-
spect to a property shall not be counted for the pur-
poses of any limitation on coverage with respect to 
that property under section 1306(b).’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
Not later than 1 year after the date of enactment of this 
Act, the Administrator of the Federal Emergency Manage-
ment Agency shall amend the Standard Flood Insurance 
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Policy set forth in appendix A to part 61 of title 44, Code 
of Federal Regulations, to conform the item relating to 
‘‘Coverage D—Increased Cost of Compliance’’ to the cov-
erage limitations described in subparagraphs (A) and (B) 
of section 1304(b)(4) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4011(b)(4)), as added by subsection 
(a)(5) of this section. 
SEC. 5. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS. 
(a) AUTHORITY.—Subsection (g) of section 1308 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 
4015(g)) is amended— 
(1) by striking the subsection designation and 
all that follows through ‘‘With respect’’ and insert-
ing the following: 
‘‘(g) FREQUENCY OF PREMIUM COLLECTION.— 
‘‘(1) OPTIONS.—With respect’’; and 
(2) by adding at the end the following: 
‘‘(2) MONTHLY
INSTALLMENT
PAYMENT
OF 
PREMIUMS.— 
‘‘(A) EXEMPTION
FROM
RULEMAKING.— 
Until such time as the Administrator promul-
gates regulations implementing paragraph (1) 
of this subsection, the Administrator may adopt 
policies and procedures, notwithstanding any 
other provisions of law and in alignment and 
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consistent with existing industry escrow and 
servicing standards, necessary to implement 
such paragraph without undergoing notice and 
comment rulemaking and without conducting 
regulatory analyses otherwise required by stat-
ute, regulation, or Executive order. 
‘‘(B) PILOT
PROGRAM.—The Adminis-
trator may initially implement paragraph (1) of 
this subsection as a pilot program that provides 
for a gradual phase-in of implementation. 
‘‘(C) POLICYHOLDER
PROTECTION.—The 
Administrator may— 
‘‘(i) during the 12-month period be-
ginning on the date of the enactment of 
this subparagraph, charge policyholders 
choosing to pay premiums in monthly in-
stallments a fee for the total cost of the 
monthly collection of premiums not to ex-
ceed $25 annually; and 
‘‘(ii) after the expiration of the 12- 
month period referred to in clause (i), ad-
just the fee charged annually to cover the 
total cost of the monthly collection of pre-
miums as determined by the report sub-
mitted pursuant to subparagraph (D). 
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‘‘(D) REPORT.—Not later than six months 
after the date of the enactment of this para-
graph, the Comptroller General shall submit a 
report to the Committee on Financial Services 
of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate, that sets forth all of the costs as-
sociated with the monthly payment of pre-
miums, including any up-front costs associated 
with infrastructure development, the impact on 
all policyholders including those that exercise 
the option to pay monthly and those that do 
not, options for minimizing the costs, particu-
larly the costs to policyholders, and the feasi-
bility of adopting practices that serve to mini-
mize costs to policyholders such as automatic 
payments and electronic payments. 
‘‘(E) ANNUAL
REPORTS.—On an annual 
basis, the Administrator shall report to the 
Committee on Financial Services of the House 
of Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
the ongoing costs associated with the monthly 
payment of premiums.’’. 
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(b) 
IMPLEMENTATION.—Clause 
(ii) 
of 
section 
1307(a)(1)(B) of the National Flood Insurance Act of 
1968 (42 U.S.C. 4014(a)(1)(B)(ii)) is amended by insert-
ing before ‘‘any administrative expenses’’ the following: 
‘‘the costs associated with the monthly collection of pre-
miums provided for in section 1308(g) (42 U.S.C. 
4015(g)), but only if such costs exceed the operating costs 
and allowances set forth in clause (i) of this subparagraph, 
and’’. 
SEC. 6. PREMIUM RATES FOR CERTAIN MITIGATED PROP-
ERTIES. 
(a) MITIGATION STRATEGIES.—Paragraph (1) of sec-
tion 1361(d) 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 new subparagraphs: 
‘‘(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’’. 
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number of communities practicable’’ after ‘‘under 
this program’’. 
SEC. 8. PARTICIPATION STUDIES. 
(a) FEDERAL ENTITIES
FOR LENDING REGULA-
TION.— 
(1) IN
GENERAL.—The Federal entities for 
lending regulation shall conduct an annual study re-
garding the rate at which persons who are subject 
to the mandatory purchase requirement are com-
plying with that requirement. 
(2) SUBMISSION TO CONGRESS.—The Federal 
entities for lending regulation shall submit the result 
of each study conducted under paragraph (1) to the 
appropriate committees of Congress. 
(b) FEMA.— 
(1) IN
GENERAL.—The Administrator of the 
Federal Emergency Management Agency shall con-
duct an annual study regarding the rate at which in-
dividuals who live in areas that have not been identi-
fied, under the National Flood Insurance Act of 
1968 (42 U.S.C. 4001 et seq.) or the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4002 et seq.), as 
having a special flood hazard participate in, or re-
ceive financial assistance under, the National Flood 
Insurance Program. 
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(2) SUBMISSION TO CONGRESS.—The Adminis-
trator shall submit the result of each study con-
ducted under paragraph (1) to the appropriate com-
mittees of Congress. 
(c) GAO.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct a study of the imple-
mentation and efficacy of the requirements of sec-
tion 102 of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a). Such study shall at min-
imum consider the following questions: 
(A) How effectively do Federal agencies, 
regulated lending institutions, and Federal enti-
ties for lending regulation implement the re-
quirements of section 102 of the Flood Disaster 
Protection Act of 1973? 
(B) Does the current implementation of 
Flood Disaster Protection Act of 1973 align 
with the congressional findings and purposes 
described in section 2(b) of such Act (42 U.S.C. 
4002)? 
(C) What is the current level of compliance 
with section 102? 
(D) What are the estimated historical im-
pacts on revenue to the National Flood Insur-
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ance Program based on the current level of 
compliance of section 102? 
(E) Is the current monitoring and tracking 
framework in place sufficient to ensure compli-
ance with section 102? 
(F) What is the best way to establish a 
consolidated, comprehensive, and accurate re-
pository of data on compliance with section 
102? 
(G) What, if any, unintended consequences 
have resulted from the requirements and imple-
mentation of section 102? 
(H) How can Federal agencies and regu-
lated lending institutions improve compliance 
with section 102? 
(2) REPORT.—Not later than the expiration of 
the 18-month period beginning on the date of the 
enactment of this Act, the Comptroller General shall 
submit a report to the Committee on Financial Serv-
ices of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate regarding the findings and conclusions of 
the study conducted pursuant to this subsection. 
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SEC. 9. DISCLOSURE OF FLOOD RISK INFORMATION UPON 
TRANSFER OF PROPERTY. 
(a) IN GENERAL.—Chapter 1 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amend-
ed by adding at the end the following new section: 
‘‘SEC. 1326. DISCLOSURE OF FLOOD RISK INFORMATION 
UPON TRANSFER OF PROPERTY. 
‘‘(a) REQUIREMENT FOR PARTICIPATION IN PRO-
GRAM.—After September 30, 2022, no new flood insur-
ance coverage may be provided under this title for any 
real property located in any area (or subdivision thereof) 
unless an appropriate body has imposed, by statute or reg-
ulation, a duty on any seller or lessor of improved real 
estate located in such area to provide to any purchaser 
or lessee of such property a property flood hazard disclo-
sure which the Administrator has determined meets the 
requirements of subsection (b). 
‘‘(b) DISCLOSURE
REQUIREMENTS.—A property 
flood hazard disclosure for a property shall meet the re-
quirements of this subsection only if the disclosure— 
‘‘(1) is made in writing; 
‘‘(2) discloses any actual knowledge of the seller 
or lessor of— 
‘‘(A) prior physical damage caused by flood 
to any building located on the property; 
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‘‘(B) prior insurance claims for losses cov-
ered under the National Flood Insurance Pro-
gram or private flood insurance with respect to 
such property; 
‘‘(C) any previous notification regarding 
the designation of the property as a multiple 
loss property; and 
‘‘(D) any Federal legal obligation to obtain 
and maintain flood insurance running with the 
property, such as any obligation due to a pre-
vious form of disaster assistance under the 
Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act received by any owner of 
the property; and 
‘‘(3) is delivered by or on behalf of the seller or 
lessor to the purchaser or lessee before such pur-
chaser or lessee becomes obligated under any con-
tract for purchase or lease of the property.’’. 
(b) AVAILABILITY
OF
FLOOD
INSURANCE
COV-
ERAGE.—Subsection (c) of section 1305 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4012(c)) is 
amended— 
(1) in paragraph (1), by striking ‘‘and’’ at the 
end; 
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