SEC. 212. CLERICAL AMENDMENTS.
Section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a) is amended—
(1) by striking the section heading and inserting
the following new section heading:
‘‘FLOOD INSURANCE PURCHASE AND COMPLIANCE
REQUIREMENTS AND ESCROW ACCOUNTS’’; and
(2) in subsection (c), by inserting ‘‘EXCEPTION
TO PURCHASE REQUIREMENTS
FOR STATE-OWNED
PROPERTY.—’’ before ‘‘Notwithstanding’’.
TITLE III—RATINGS AND INCEN-
TIVES 
FOR 
COMMUNITY
FLOODPLAIN 
MANAGEMENT
PROGRAMS
SEC. 301. COMMUNITY RATING SYSTEM AND INCENTIVES
FOR 
COMMUNITY 
FLOODPLAIN 
MANAGE-
MENT.
Section 1315 of the National Flood Insurance Act of
1968 (42 U.S.C. 4022) is amended—
(1) by inserting after ‘‘SEC. 1315.’’ the following:
‘‘(a) REQUIREMENT FOR PARTICIPATION IN FLOOD
INSURANCE PROGRAM.—’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) COMMUNITY RATING SYSTEM AND INCENTIVES
FOR COMMUNITY FLOODPLAIN MANAGEMENT.—
‘‘(1) AUTHORITY
AND
GOALS.—The Director
shall carry out a community rating system program
to evaluate the measures adopted by areas (and sub-
divisions thereof) in which the Director has made
flood insurance coverage available to provide for ade-
quate land use and control provisions consistent with
the comprehensive criteria for such land management
and use under section 1361, to facilitate accurate
risk-rating, to promote flood insurance awareness,
and to complement adoption of more effective meas-
ures for floodplain and coastal erosion management.
‘‘(2) INCENTIVES.—The program under this sub-
section shall provide incentives in the form of adjust-
ments in the premium rates for flood insurance cov-
erage in areas that the Director determines have
adopted and enforced the goals of the community rat-
ing system under this subsection. In providing incen-
tives under this paragraph, the Director may provide
for additional adjustments in premium rates for flood
insurance coverage in areas that the Director deter-
mines have implemented measures relating to the pro-
tection of natural and beneficial floodplain functions.
The Director may also provide for additional adjust-
ments in premium rates for flood insurance coverage
in areas within which such rates have increased as a
result of induced flooding risk from flood control or
mitigation projects, as determined by the Director, ex-
cept that the adjustment shall not reduce premium
rates below the rate which would have been charged
absent the risk of induced flooding from the flood con-
trol or mitigation projects.
‘‘(3) FUNDS.—The Director shall carry out the
program under this subsection with amounts, as the
Director determines necessary, from the National
Flood Insurance Fund under section 1310 and any
other amounts that may be appropriated for such
purpose.
‘‘(4) REPORTS.—The Director shall submit a re-
port to the Congress regarding the program under this
subsection not later than the expiration of the 2-year
period beginning on the date of the enactment of the
National Flood Insurance Reform Act of 1994. The
Director shall submit a report under this paragraph
not less than every 2 years thereafter. Each report
under this paragraph shall include an analysis of the
cost-effectiveness and other accomplishments and
shortcomings of the program and any recommenda-
tions of the Director for legislation regarding the pro-
gram.’’.
SEC. 302. FUNDING.
Section 1310(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4017(a)) is amended—
(1) in paragraph (4), by striking ‘‘and’’ at the
end;
(2) by redesignating paragraph (5) as para-
graph (8); and
(3) by inserting after paragraph (4) the follow-
ing new paragraph:
‘‘(5) for carrying out the program under section
1315(b);’’.
TITLE IV—MITIGATION OF
FLOOD AND EROSION RISKS
SEC. 401. REPEAL OF FLOODED PROPERTY PURCHASE AND
LOAN PROGRAM.
(a) REPEAL.—Section 1362 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4103) is hereby repealed.
(b) TRANSITION PHASE.—Notwithstanding subsection
(a), during the 1-year period beginning on the date of the
enactment of this Act, the Director of the Federal Emer-
gency Management Agency may enter into loan and pur-
chase commitments as provided under section 1362 of such
Act (as in effect immediately before the enactment of this
Act).
(c) SAVINGS PROVISION.—Notwithstanding subsection
(a), the Director shall take any action necessary to comply
with any purchase or loan commitment entered into before
the expiration of the period referred to in subsection (b)
pursuant to authority under section 1362 of the National
Flood Insurance Act of 1968 or subsection (b).
SEC. 402. TERMINATION OF EROSION-THREATENED STRUC-
TURES PROGRAM.
(a) IN GENERAL.—Section 1306 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4013) is amended by
striking subsection (c).
(b) TRANSITION PHASE.—Notwithstanding subsection
(a), during the 1-year period beginning on the date of the
enactment of this Act, the Director of the Federal Emer-
gency Management Agency may pay amounts under flood
insurance contracts for demolition or relocation of struc-
tures as provided in section 1306(c) of the National Flood
Insurance Act of 1968 (as in effect immediately before the
enactment of this Act).
(c) SAVINGS PROVISION.—Notwithstanding subsection
(a), the Director shall take any action necessary to make
payments under flood insurance contracts pursuant to any
commitments made before the expiration of the period re-
ferred to in subsection (b) pursuant to the authority under
section 1306(c) of the National Flood Insurance Act of 1968
or subsection (b).
SEC. 403. MITIGATION ASSISTANCE RESPONSIBILITIES IN
FEDERAL INSURANCE ADMINISTRATION.
Section 1105(a) of the Housing and Urban Develop-
ment Act of 1968 (42 U.S.C. 4129(a)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) The Director of the Federal Emergency Manage-
ment Agency shall coordinate all mitigation activities, in-
cluding the administration of the program for mitigation
assistance under section 1366, under the Federal Insurance
Administrator. Such activities shall include the develop-
ment and implementation of various mitigation activities
and techniques, the provision of advice and assistance re-
garding mitigation to States, communities, and individ-
uals, including planning assistance under section 1366(b),
coordination with other Federal flood and erosion mitiga-
tion efforts, and coordination with State and local govern-
ments and public and private agencies and organizations
for collection and dissemination of information regarding
erosion.’’.
SEC. 404. STATE AND COMMUNITY MITIGATION ASSISTANCE
PROGRAM.
(a) IN GENERAL.—Chapter III of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101 et seq.), as amended