IB 
Union Calendar No. 210 
116TH CONGRESS 
1ST SESSION H. R. 3167 
[Report No. 116–262, Part I] 
To reform and reauthorize the National Flood Insurance Program, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 10, 2019 
Ms. WATERS introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committee on Trans-
portation and Infrastructure, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
OCTOBER 28, 2019 
Reported from the Committee on Financial Services with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
OCTOBER 28, 2019 
Committee on Transportation and Infrastructure discharged; committed to the 
Committee of the Whole House on the State of the Union and ordered 
to be printed 
[For text of introduced bill, see copy of bill as introduced on June 10, 2019] 
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A BILL 
To reform and reauthorize the National Flood Insurance 
Program, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Na-
tional Flood Insurance Program Reauthorization Act of 
2019’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Congressional findings. 
TITLE I—REAUTHORIZATION AND AFFORDABILITY 
Sec. 101. Program extension. 
Sec. 102. Demonstration program for policy affordability. 
Sec. 103. Premium and fees relief for families and small businesses. 
Sec. 104. Monthly installment payment of premiums. 
Sec. 105. State revolving loan funds for low-interest loans. 
Sec. 106. Use of replacement cost value in estimating premium rates. 
Sec. 107. Refund of premiums upon cancellation of policy because of replacement 
with private flood insurance. 
TITLE II—MAPPING 
Sec. 201. Reauthorization of appropriations for National Flood Mapping Pro-
gram. 
Sec. 202. National Flood Mapping Program. 
Sec. 203. Flood mapping modernization and homeowner empowerment pilot pro-
gram. 
Sec. 204. Mapping improvements and reach. 
Sec. 205. Appeals regarding existing flood maps. 
Sec. 206. Appeals and publication of projected special flood hazard areas. 
Sec. 207. Communication and outreach regarding map changes. 
Sec. 208. Adoption of partial flood maps. 
Sec. 209. New zone for levee-impacted areas. 
Sec. 210. Agricultural structures in special flood hazard zones. 
Sec. 211. Technical Mapping Advisory Council. 
TITLE III—MITIGATION 
Sec. 301. Increased cost of compliance coverage. 
Sec. 302. Multiple-loss properties. 
Sec. 303. Premium rates for certain mitigated properties. 
Sec. 304. Coverage for cooperatives. 
Sec. 305. Voluntary community-based flood insurance pilot program. 
Sec. 306. Mitigation funding. 
Sec. 307. Community Rating System improvements. 
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Sec. 308. Community assistance program for effective floodplain management. 
TITLE IV—MODERNIZATION 
Sec. 401. Effect of private flood insurance coverage on continuous coverage re-
quirements. 
Sec. 402. Optional coverage for umbrella policies. 
Sec. 403. Annual independent actuarial study. 
Sec. 404. Sharing of and access to information. 
Sec. 405. Elevation certificates. 
Sec. 406. Leveraging risk transfer opportunities for a sound financial framework. 
Sec. 407. Write-Your-Own arrangements. 
Sec. 408. Study on increasing participation. 
SEC. 2. CONGRESSIONAL FINDINGS. 
The Congress finds that— 
(1) since 2016, communities and families across 
the United States have suffered over $300 billion in 
losses as a result of flooding; 
(2) flooding disasters in the United States 
present a threat to people, property, and taxpayers; 
(3) the National Flood Insurance Program 
(NFIP) is a key component of the Federal Govern-
ment’s efforts to minimize the damage and financial 
impact of floods; 
(4) the NFIP is the principal provider of flood 
insurance in the United States, covering over 5 mil-
lion households and businesses across the country; 
(5) affordability of flood insurance coverage re-
mains a serious concern; 
(6) investment in mitigation is a cost-effective 
means of reducing risk; 
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(7) a policyholder’s ability to pay for flood in-
surance coverage should be considered for premium 
rate discounts; and 
(8) in the absence of widespread private insur-
ance industry participation, and as a matter of na-
tional policy, the Federal Government must ensure 
the availability and affordability of flood insurance. 
TITLE I—REAUTHORIZATION 
AND AFFORDABILITY 
SEC. 101. PROGRAM EXTENSION. 
(a) FINANCING.—Subsection (a) of section 1309 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) RETROACTIVE EFFECTIVE DATE.—If this Act is en-
acted after September 30, 2019, the amendments made by 
subsections (a) and (b) shall take effect as if enacted on 
September 30, 2019. 
SEC. 102. DEMONSTRATION PROGRAM FOR POLICY AFFORD-
ABILITY. 
(a) AUTHORITY.— 
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(1) IN GENERAL.—The Administrator of the Fed-
eral Emergency Management Agency shall establish 
and carry out a demonstration program under this 
section to demonstrate the effectiveness of providing 
means-tested discounted rates for flood insurance cov-
erage made available under the National Flood Insur-
ance Act of 1968 for eligible households. 
(2) CONSULTATION.—The Administrator may 
consult with the Secretary of the Treasury and the 
Secretary of Housing and Urban Development about 
the implementation of the program established pursu-
ant to paragraph (1). 
(b) ELIGIBLE HOUSEHOLDS AND PROPERTIES.—The 
Administrator may provide discounted premium rates pur-
suant to this section only for properties that are— 
(1) 1- to 4-family residential properties; and 
(2) the primary residence of a household whose 
income does not exceed 80 percent of the area median 
income, as determined by the Administrator in con-
sultation with the Secretary of Housing and Urban 
Development. 
(c) INCOME DETERMINATIONS.—For purposes of the 
program under this section, the Administrator shall make 
determinations of household income on an annual basis. 
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(d) PREMIUM DISCOUNTS.—Notwithstanding any pro-
vision of the National Flood Insurance Act of 1968, the 
chargeable premium rate for flood insurance coverage made 
available under the program under this section shall be an 
amount that does not exceed 2 percent of annual area me-
dian income for the area within which is located the prop-
erty for which the coverage is provided. 
(e) DISCLOSURE OF FULL-RISK RATE.—The Adminis-
trator shall provide to each policyholder purchasing flood 
insurance coverage under the program under this section 
for a property, not later than the commencement of the pe-
riod of such coverage, a written statement setting forth the 
full actuarial premium rate for coverage for such property 
determined in accordance with section 1307(a)(1) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)), 
the amount of the premium discount for such coverage, and 
any other information the Administrator considers helpful 
to policyholders in understanding flood insurance coverage 
and costs. 
(f) GUIDANCE.—Not later than the expiration of the 
12-month period beginning on the date of the enactment of 
this Act, the Administrator shall issue guidance providing 
for the establishment of the demonstration program under 
this section, which shall include— 
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(1) an estimation of the cost of the program stat-
ed in terms of the aggregate of premium discounts to 
be made available under the program; 
(2) a description of how the Administrator will 
determine eligibility for households to participate in 
the program in accordance with the requirements for 
eligibility in subsection (b); and 
(3) any new requirements to which policyholders 
participating in the program will be subject; and 
(4) the results of any consultation with the Sec-
retary of the Treasury or the Secretary of Housing 
and Urban Development. 
(g) REPORT TO CONGRESS.— 
(1) COLLECTION OF INFORMATION.—The Admin-
istrator shall collect by survey or other means, for 
each participating community in the national flood 
insurance program and regarding each year during 
the period beginning 5 years before implementation of 
the demonstration program under this section and 
ending upon the termination date under subsection 
(j), the following information: 
(A) The demographic characteristics of 
households purchasing flood insurance coverage 
under such program. 
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(B) The average median income of such 
households. 
(C) The number of properties located in 
areas for which a major disaster related to flood-
ing was declared pursuant to the Robert T. Staf-
ford Disaster Relief and Emergency Assistance 
Act. 
(D) The number of policies made available 
under the national flood insurance program and 
the number and aggregate amount of claims sub-
mitted under such program. 
(E) For all properties in such community 
receiving discounted coverage under the dem-
onstration program under this section, the aggre-
gate amount of the full actuarial premium rate 
for coverage that is determined in accordance 
with section 1307(a)(1) of the National Flood In-
surance Act of 1968 (42 U.S.C. 4014(a)(1)) and 
the aggregate amount of premium discounts pro-
vided under the demonstration program. 
(F) For all properties in such community, 
any changes to such full actuarial premium 
rates due to mapping changes or other factors. 
(2) REPORT TO CONGRESS.—Not later than the 
expiration of the 5-year period beginning upon the 
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implementation of the demonstration program under 
this section, the Administrator shall submit to the 
Congress a report evaluating the effectiveness of the 
assistance provided under the program, which shall 
include— 
(A) a statement of the number of households 
participating in the program and the rates of 
participation by communities participating in 
the national flood insurance program, including 
whether such rates of participation have changed 
by year; and 
(B) an estimate of the cost of the program 
to the National Flood Insurance Fund under sec-
tion 1310 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4017). 
(h) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) 
ADMINISTRATOR.—The 
term 
‘‘Adminis-
trator’’ means the Administrator of the Federal 
Emergency Management Agency. 
(2) PREMIUM DISCOUNT.—The term ‘‘premium 
discount’’ means, with respect to a policy for flood in-
surance coverage under the national flood insurance 
program made available under the program under 
this section, the amount by which the full actuarial 
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premium rate for coverage for such property that is 
determined in accordance with section 1307(a)(1) of 
the National Flood Insurance Act of 1968 (42 U.S.C. 
4014(a)(1)) exceeds the chargeable premium rate for 
the coverage made available under the program under 
this section. 
(i) TERMINATION.—The authority under this section 
to provide discounted premium rates for flood insurance 
coverage shall terminate on May 31, 2024. 
SEC. 103. PREMIUM AND FEES RELIEF FOR FAMILIES AND 
SMALL BUSINESSES. 
(a) REPEAL OF SURCHARGE.— 
(1) REPEAL.—Section 1308A of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015a) is 
hereby repealed. 
(2) CONFORMING AMENDMENTS.—The National 
Flood Insurance Act of 1968 is amended— 
(A) 
in 
section 
1308(m) 
(42 
U.S.C. 
4015(m))— 
(i) in paragraph (1), by striking ‘‘and 
the 
surcharges 
required 
under 
section 
1308A’’; and 
(ii) in paragraph (2), by striking ‘‘or 
surcharges’’; and 
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consistent with existing industry escrow and 
servicing standards, necessary to implement such 
paragraph without undergoing notice and com-
ment rulemaking and without conducting regu-
latory analyses otherwise required by statute, 
regulation, or Executive order. 
‘‘(B) PILOT PROGRAM.—The Administrator 
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 begin-
ning on the date of the enactment of this 
subparagraph, charge policyholders choosing 
to pay premiums in monthly installments a 
fee for the total cost of the monthly collec-
tion of premiums not to exceed $25 annu-
ally; 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) ANNUAL
REPORTS.—On an annual 
basis, the Administrator shall report to the Com-
mittee on Financial Services of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate the 
ongoing costs associated with the monthly pay-
ment of premiums.’’. 
(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 inserting be-
fore ‘‘any administrative expenses’’ the following: ‘‘the costs 
associated with the monthly collection of premiums pro-
vided 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. 105. STATE REVOLVING LOAN FUNDS FOR LOW-INTER-
EST LOANS. 
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 new section: 
‘‘SEC. 1326. STATE REVOLVING LOAN FUNDS FOR LOW-IN-
TEREST LOANS. 
‘‘(a) DEFINITIONS.—In this section— 
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‘‘(1) the term ‘Community Rating System’ 
means the community rating system carried out 
under section 1315(b); 
‘‘(2) the term ‘eligible State’ means a State, the 
District of Columbia, and the Commonwealth of Puer-
to Rico; 
‘‘(3) the term ‘insular area’ means— 
‘‘(A) Guam; 
‘‘(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) the term ‘intended use plan’ means a plan 
prepared under subsection (d)(1); 
‘‘(5) 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 De-
velopment Act of 1965 (42 U.S.C. 3161(a)); 
‘‘(6) the term ‘low-income homeowner’ means the 
owner of a primary residence, the household income 
of which in a taxable year is not more than 80 per-
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cent of the median income for the area in which the 
residence is located; 
‘‘(7) the term ‘participating State’ means an eli-
gible State that— 
‘‘(A) has entered into an agreement under 
subsection (b)(1); and 
‘‘(B) agrees to comply with the requirements 
of this section; 
‘‘(8) the term ‘pre-FIRM building’ means a 
building for which construction or substantial im-
provement occurred before the effective date of the ini-
tial Flood Insurance Rate Map published by the Ad-
ministrator under section 1360 for the area in which 
the building is located; 
‘‘(9) the term ‘repetitive-loss property’ has the 
meaning given the term in section 1370(a); 
‘‘(10) the term ‘severe repetitive-loss property’ 
has the meaning given the term in section 1370(a); 
‘‘(11) the term ‘State loan fund’ means a flood 
mitigation assistance revolving loan fund established 
by an eligible State under this section; and 
‘‘(12) the term ‘tribal government’ means the rec-
ognized government of an Indian tribe, or the gov-
erning body of an Alaska Native regional or village 
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corporation, that has been determined eligible to re-
ceive services from the Bureau of Indian Affairs. 
‘‘(b) GENERAL AUTHORITY.— 
‘‘(1) IN
GENERAL.—The Administrator may 
enter into an agreement with an eligible State to pro-
vide a capitalization grant for the eligible State to es-
tablish a revolving fund that will provide funding as-
sistance to help homeowners, businesses, nonprofit or-
ganizations, 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 par-
ticipating State under paragraph (1), the par-
ticipating State shall— 
‘‘(i) deposit the grant in the State loan 
fund of the State; and 
‘‘(ii) enter into one or more binding 
agreements that provide for the State to dis-
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tribute the grant funds for purposes author-
ized under subsection (c) such that— 
‘‘(I) in the case of the initial 
grant made under this section to a 
State, not less than 75 percent of the 
amount of the grant funds shall be dis-
tributed before the expiration of the 24- 
month period beginning upon deposit 
of such funds in the State loan fund of 
the State; and 
‘‘(II) in the case of any subse-
quent grant made under this section to 
a State, not less than 90 percent of the 
amount of the grant funds made under 
the capitalization grant shall be dis-
tributed before the expiration of the 12- 
month period beginning upon deposit 
of such funds in the State loan fund of 
the State. 
‘‘(B) NONCOMPLIANCE.—Except as provided 
in subparagraph (C), if a participating State 
does not comply with subparagraph (A) with re-
spect to a grant, the Administrator shall reallo-
cate the grant in accordance with paragraph 
(3)(B). 
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‘‘(C) EXCEPTION.—The Administrator may 
not reallocate any funds under subparagraph 
(B) to a participating State that violated sub-
paragraph (A) with respect to a grant made dur-
ing 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 de-
scribed 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 participating 
State receives the percentage amount that is 
obtained by dividing the number of prop-
erties that were insured under the national 
flood insurance program in that State in 
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the fiscal year preceding the fiscal year in 
which the amount is allocated by the total 
number of properties that were insured 
under the national 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 participating 
State receives a percentage of funds that is 
equal to the product obtained under clause 
(iii)(IV) with respect to that participating 
State after following the procedures de-
scribed 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 pro-
gram in that State for that fiscal year. 
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‘‘(II) Add together each quotient 
obtained under subclause (I). 
‘‘(III) For each participating 
State, divide the quotient obtained 
under subclause (I) with respect to that 
State by the sum obtained under sub-
clause (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 available 
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 limit under subclause (I) of this 
clause, receive an amount that is great-
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er than the amount the State is au-
thorized to receive under that sub-
clause, the difference between the au-
thorized amount and the amount other-
wise 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 sub-
clause (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 re-
ceives 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 assist-
ance for a purpose described in subsection (c)(2), 
without regard to whether the State has estab-
lished a State loan fund. 
‘‘(B) STATE
MATCHING.—A participating 
State that exercises the authority under subpara-
graph (A) in a fiscal year shall provide match-
ing funds from non-Federal sources in an 
amount that is equal to 15 percent of the amount 
that the State receives under paragraph (3)(B) 
in that fiscal year for purposes described in sub-
paragraph (A). 
‘‘(5) ALLOCATION OF REMAINING FUNDS.—After 
allocating amounts made available to carry out this 
section for a fiscal year in accordance with para-
graph (3), the Administrator shall allocate any re-
maining 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) ALLOCATION
FOR
TRIBAL
GOVERNMENTS 
AND INSULAR AREAS.—The Administrator shall re-
serve not less than 5.0 percent of the amount made 
available to carry out this section in a fiscal year to 
enter into grant agreements with tribal governments 
and insular areas, with the grant funds to be distrib-
uted— 
‘‘(A) according to criteria established by the 
Administrator; and 
‘‘(B) for a purpose described in subsection 
(c)(2). 
‘‘(7) ADMINISTRATIVE
COSTS; TECHNICAL
AS-
SISTANCE.—The Administrator shall reserve not more 
than 2.5 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; and 
‘‘(B) to provide technical assistance to re-
cipients of grants under this section. 
‘‘(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— 
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‘‘(A) consistent with paragraphs (2) and (3) 
and subsection (g), to provide financial assist-
ance for— 
‘‘(i) homeowners, businesses, and non-
profit organizations that are eligible to par-
ticipate in the national flood insurance pro-
gram; 
‘‘(ii) any local government that par-
ticipates in the national flood insurance 
program; and 
‘‘(iii) any State government agencies 
or subdivisions of any State government 
that engage in floodplain management ac-
tivities; 
‘‘(B) as a source of revenue and security for 
leveraged loans, the proceeds of which shall be de-
posited in the State loan fund; or 
‘‘(C) for the sale of bonds as security for 
payment of the principal and interest on revenue 
or general obligation bonds issued by the partici-
pating State to provide matching funds under 
subsection (g), if the proceeds from the sale of the 
bonds are deposited in the State loan fund. 
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‘‘(2) PURPOSES.—A recipient of financial assist-
ance provided through amounts from a State loan 
fund— 
‘‘(A) shall use the amounts to reduce— 
‘‘(i) flood risk; or 
‘‘(ii) potential flood claims submitted 
under the national flood insurance pro-
gram; 
‘‘(B) shall use the amounts in a cost-effec-
tive manner under requirements established by 
the State, which may require an applicant for fi-
nancial assistance to submit any information 
that the State considers relevant or necessary be-
fore 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 Administrator; 
‘‘(ii) 
are 
located 
in 
communities 
that— 
‘‘(I) participate in the national 
flood insurance program; and 
‘‘(II) have developed a State, 
local, or tribal government hazard 
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mitigation plan that has been ap-
proved by the Administrator under sec-
tion 1366; 
‘‘(iii)(I) address a repetitive-loss prop-
erty or a severe repetitive-loss property; or 
‘‘(II) address flood risk in the 500-year 
floodplain, areas of residual flood risk, or 
other areas of potential flood risk, as identi-
fied 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 floodplain 
or other areas of flood risk, including 
the acquisition of properties for such a 
purpose; 
‘‘(IV) environmental restoration 
activities that directly reduce flood 
risk; 
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‘‘(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 described 
in clause (i), only for expenditures directly 
related to a project described in that clause, 
including expenditures for planning, design, 
and associated pre-construction 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 in an amount at least equal to the 
lesser of the eligible project costs or the max-
imum insurable limit for the structure 
under the national flood insurance program 
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coverage for the structure, which coverage 
shall be maintained for the useful life of 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 
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 National 
Mortgage Association Charter Act (12 
U.S.C. 1717(b)(2)) and section 305(a)(2) of 
the Federal Home Loan Mortgage Corpora-
tion 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 
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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 
‘‘(F) shall, in the use of such amounts, give 
priority to the maximum extent practicable 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 participating 
State. 
‘‘(2) CONSULTATION
DURING
PREPARATION.— 
Each participating State, in preparing an intended 
use plan, shall ensure that the State agency with pri-
mary responsibility for floodplain management— 
‘‘(A) provides oversight with respect to the 
preparation of the intended use plan; and 
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‘‘(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— 
‘‘(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 properties 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; 
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‘‘(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 allocating 
to— 
‘‘(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 prop-
erties and repetitive-loss properties; 
‘‘(ii) assist low-income homeowners 
and low-income geographic areas; and 
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‘‘(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— 
‘‘(A) the community in which the project is 
located; 
‘‘(B) the type and amount of assistance pro-
vided 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 inter-
est-bearing obligations; and 
‘‘(3) except as provided in subsection (i), include 
only— 
‘‘(A) amounts received from capitalization 
grants made under this section; 
‘‘(B) repayments of loans made from the 
fund; and 
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‘‘(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 fund 
of the State, in addition to the amount of the capital-
ization grant, an amount from non-Federal sources 
that is not less than 10 percent of the total amount 
of the capitalization grant. 
‘‘(2) REDUCED GRANT.—Notwithstanding para-
graph (1), if a State deposits in the State loan fund 
of the State in connection a capitalization grant an 
amount from non-Federal sources that is less than 10 
percent of the total amount of the capitalization grant 
that would otherwise be received by the State, the Ad-
ministrator shall reduce the amount of the capitaliza-
tion grant received by the State to the amount that 
is 10 times the amount so deposited and shall allocate 
such remaining grant amounts under subsection 
(b)(5) together with the amounts allocated under such 
subsection. 
‘‘(g) TYPES OF ASSISTANCE.—Unless otherwise prohib-
ited by State law, a participating State may use the 
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amounts deposited into a State loan fund under this section 
only— 
‘‘(1) to make a loan, on the condition that— 
‘‘(A) the interest rate for the loan is not 
more than the market interest rate; 
‘‘(B) the recipient of the loan will begin 
making principal and interest payments on the 
loan not later than 1 year after the date on 
which the project for which the loan was made 
is completed; 
‘‘(C) the loan will be fully amortized not 
later than 20 years after the date on which the 
project for which the loan was made is com-
pleted, except that, in the case of a loan made for 
a project in a low-income geographic area or to 
a low-income homeowner, the State may provide 
a longer amortization period for the loan if that 
longer period— 
‘‘(i) ends on a date that is not later 
than 30 years after the date on which the 
project is completed; and 
‘‘(ii) is not longer than the expected de-
sign life of the project; 
‘‘(D) the recipient of the loan demonstrates, 
based on verified and documented information 
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