I 
110TH CONGRESS 
2D SESSION 
H. R. 6424 
To establish a homeowner mitigation loan program within the Federal Emer-
gency Management Agency to promote pre-disaster property mitigation 
measures. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 26, 2008 
Mr. THOMPSON of Mississippi introduced the following bill; which was referred 
to the Committee on Transportation and Infrastructure 
A BILL 
To establish a homeowner mitigation loan program within 
the Federal Emergency Management Agency to promote 
pre-disaster property mitigation measures. 
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 ‘‘Property Mitigation 
Assistance Act of 2008’’. 
SEC. 2. HOMEOWNER MITIGATION LOAN PROGRAM. 
Section 203 of the Robert T. Stafford Disaster As-
sistance and Emergency Relief Act (42 U.S.C. 5133) is 
amended— 
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(1) by redesignating subsection (m) as sub-
section (n); and 
(2) by inserting after subsection (l) the fol-
lowing: 
‘‘(m) HOMEOWNER MITIGATION LOAN PROGRAM.— 
‘‘(1) ESTABLISHMENT.—The Administrator of 
the Federal Emergency Management Agency shall 
establish a grant program to provide assistance to 
States to promote pre-disaster property mitigation 
measures within the jurisdiction of the States. 
‘‘(2) APPLICATION.—A State desiring a grant 
under this subsection shall submit an application as 
required pursuant to regulations promulgated by the 
Administrator under paragraph (7). 
‘‘(3) ELIGIBILITY REQUIREMENTS.—In order to 
be eligible to receive a grant under paragraph (1), 
a State shall have— 
‘‘(A) submitted a mitigation plan under 
section 322(c); 
‘‘(B) established a process for accepting 
and processing grant and loan applications 
from individual homeowners and business own-
ers; 
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‘‘(C) established a revolving loan fund into 
which any grant amounts received under this 
section shall be deposited; and 
‘‘(D) submitted a detailed plan for how 
terms and conditions for loans and grants au-
thorized under paragraph (5) will be set. 
‘‘(4) FUNDING FORMULA.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall allocate grant amounts to eligible States 
under paragraph (1) according to a formula 
based on the following factors: 
‘‘(i) The extent and nature of the po-
tential hazards to property in the State. 
‘‘(ii) The level and degree of risk of 
potential hazards or natural disasters con-
fronted by the State. 
‘‘(iii) The number of properties at risk 
in the event that a hazard or natural dis-
aster should occur in the State. 
‘‘(iv) The amount of prior property 
damages incurred by the State during any 
previous hazard or natural disaster. 
‘‘(v) Any available data on the future 
risk of occurrence of any hazard or natural 
disaster in a State. 
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‘‘(B) BASELINE
AMOUNT.—Any formula 
developed by the Administrator under subpara-
graph (A) shall ensure that each eligible State 
shall receive, at a minimum, an amount equal 
to not less than $500,000. 
‘‘(C) MATCHING REQUIREMENT.—To be el-
igible to receive any grant funds under this sub-
section, a State shall contribute matching non- 
Federal funds in an amount equal to not less 
than 10 percent of the total amount of the 
grant. 
‘‘(5) ELIGIBLE ACTIVITIES.— 
‘‘(A) IN
GENERAL.—A grant under this 
subsection may be used by a State to carry out 
grant and lending functions as authorized 
under this paragraph. 
‘‘(B) REVOLVING LOANS AND GRANTS TO 
HOMEOWNERS AND BUSINESSES.— 
‘‘(i) AUTHORITY
OF
STATES.—Each 
State is authorized to make from any re-
volving loan fund established pursuant to 
paragraph (3)(C) grants or loans from 
such fund to assist individual homeowners 
and businesses in undertaking pre-disaster 
property mitigation measures. 
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‘‘(ii) 
DETERMINATION
OF
THE 
STATE.—No loans shall be provided under 
this paragraph unless a State determines 
that— 
‘‘(I) there is reasonable assur-
ance of repayment of the loan; and 
‘‘(II) the amount of the loan, to-
gether with other funds available to 
the property owner, is adequate to en-
sure the purposes for which the loan 
is made. 
‘‘(iii) GRANT
AND
LOAN
REQUIRE-
MENTS.— 
‘‘(I) 
GRANTS.—A 
State 
may 
make grants for elevation and other 
pre-disaster property mitigation meas-
ures to homeowners with household 
incomes of less than 50 percent of 
area median income. 
‘‘(II) 
LOANS.—A 
State 
may 
make— 
‘‘(aa) low-interest loans for 
elevation and other pre-disaster 
property mitigation measures to 
homeowners with household in-
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‘‘(BB) The ability of 
such amounts to allow a 
homeowner to properly and 
effectively undertake mitiga-
tion activities. 
‘‘(IV) 
INTEREST
RATE.—For 
purposes of this paragraph, each 
State shall develop a sliding scale 
mechanism for determining the rate of 
interest to charge homeowners who 
apply for loans under this program 
based on their income level. 
‘‘(V) NO COMPOUNDING.—Inter-
est on the outstanding principal bal-
ance of any loan under this paragraph 
shall not compound. 
‘‘(VI) BALANCE DUE.— 
‘‘(aa) IN
GENERAL.—The 
principal of any loan made under 
this paragraph, including any in-
terest accrued on such principal, 
shall not be due and payable be-
fore the period set forth in sub-
clause (VII)(bb) unless the real 
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property securing such loan is 
sold or transferred. 
‘‘(bb) DEPOSIT OF BALANCE 
DUE.—If the event described in 
item (aa) occurs, the principal of 
any loan made under this para-
graph, including any interest ac-
crued on such principal, shall im-
mediately become due and pay-
able to the State. 
‘‘(VII) REPAYMENT PERIOD.—All 
loans made under this paragraph shall 
be repayable— 
‘‘(aa) on a monthly basis; 
and 
‘‘(bb) within a period of not 
more than 15 years. 
‘‘(VIII) NO PENALTY FOR PRE-
PAYMENT.—Any homeowner or other 
property owner who receives a loan 
under this section may repay the loan 
in full, without penalty, by lump sum 
or by installment payments, at any 
time prior to the loan becoming due 
and payable. 
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‘‘(IX) CREDITS.—The interest 
on, and the proceeds from the collec-
tion or redemption of, any loan obliga-
tions held by the revolving loan fund 
of a State shall be credited to and 
form a part of such fund. 
‘‘(X) 
SUBORDINATION
PER-
MITTED.—Any loan made under this 
section will be subordinated to any re-
financing of the first mortgage, any 
preexisting subordinate financing, any 
purchase money mortgage, or subordi-
nated for any other reason, as deter-
mined by the State. 
‘‘(C) APPLICATION PROCESS.— 
‘‘(i) 
IN
GENERAL.—An 
individual 
homeowner or business desiring a loan or 
grant under this paragraph shall submit 
an application at such time, in such man-
ner, and accompanied by such information 
as the State may reasonably require. 
‘‘(ii) REQUIRED SHOWING BY HOME-
OWNERS.—An individual homeowner desir-
ing a loan or grant under this paragraph 
shall submit to the State proof that such 
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homeowner has insured the property on 
which any funds awarded under this para-
graph will be used to undertake pre-dis-
aster property mitigation measures, includ-
ing proving that such homeowner has flood 
insurance on such property if the pre-dis-
aster mitigation measure to be undertaken 
are being done to lower the risk of loss 
from a flood. 
‘‘(iii) STATE RESPONSIBILITY.—Each 
State receiving a grant under this sub-
section shall establish a process wherein 
not later than 60 days after the receipt of 
an application for a loan or grant sub-
mitted by a homeowner or business under 
clause (i), the State issues a determination 
as to whether or not such application is 
approved. In making such determination, 
that State shall examine if the proposed 
mitigation project in the application satis-
fies the requirements of this paragraph, in-
cluding whether— 
‘‘(I) the homeowner or business 
is located in an area at risk of hazard 
or natural disaster; 
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‘‘(II) the mitigation project is an 
eligible activity for purposes of such 
loan or grant; and 
‘‘(III) the cost of the mitigation 
project is reasonable. 
‘‘(D) CONSULTATION WITH LOCALITIES.— 
Each State receiving a grant under this sub-
section shall develop a process by which such 
State will consult with local and municipal gov-
ernments as to each project proposed to be 
funded by a loan or grant under this para-
graph. 
‘‘(6) PROHIBITION ON USE OF FUNDS FOR COM-
MUNITY-WIDE MITIGATION ACTIVITIES.—None of the 
amounts made available under this subsection may 
be used for community-wide mitigation activities. 
‘‘(7) PERMISSIBLE
DESIGNEES.—A State re-
ceiving a grant under this subsection may designate 
a State housing finance agency or any other State 
agency, office, or entity with experience in maintain-
ing grant and loan programs to— 
‘‘(A) apply for a grant under this sub-
section; 
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‘‘(B) receive and distribute grant funds 
awarded under this subsection in accordance 
with the requirements of this subsection; and 
‘‘(C) perform any other administrative du-
ties related to the activities authorized by this 
subsection. 
‘‘(8) RULEMAKING.—Not later than 6 months 
after the date of enactment of the Property Mitiga-
tion Assistance Act of 2008, the Administrator shall 
promulgate regulations implementing the provisions 
of this subsection. 
‘‘(9) REPORT
TO
CONGRESS.—The Adminis-
trator shall, on annual basis, report to Congress on 
the activities authorized by this subsection. 
‘‘(10) DEFINITIONS.—As used in this sub-
section: 
‘‘(A) LOW-INTEREST
LOAN.—The term 
‘low-interest loan’ means a loan that carries a 
simple annual percentage rate that shall be de-
termined in the discretion of the State, but that 
shall, at minimum, be less than the prime rate 
of interest. 
‘‘(B) MEDIAN INCOME.—The term ‘median 
income’ means, with respect to an area, the 
unadjusted median family income for the area, 
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as determined and published annually by the 
Secretary of Housing and Urban Development. 
‘‘(C) OTHER
PRE-DISASTER
PROPERTY 
MITIGATION MEASURES.—The term ‘other pre- 
disaster property mitigation measures’ in-
cludes— 
‘‘(i) activities such as the addition of 
storm shutters, hurricane clips, and safe 
rooms; 
‘‘(ii) small elevation projects, such as 
the elevation of an electrical or heating 
system; and 
‘‘(iii) any other activity the Adminis-
trator, State, or local government believes 
will mitigate the risks of future hazards 
and natural disasters. 
‘‘(D) PRIME
RATE
OF
INTEREST.—The 
term ‘prime rate of interest’ means the target 
Federal funds rate as determined by the Fed-
eral Open Markets Committee of the Federal 
Reserve System plus 300 basis points. 
‘‘(E) PROPERTY
MITIGATION
MEASURES 
RELATED TO ELEVATION.—The term ‘property 
mitigation measures related to elevation’ means 
the elevation of a home. 
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‘‘(11) AUTHORIZATION OF APPROPRIATIONS.— 
There are authorized to be appropriated to carry out 
this subsection $200,000,000 for each of fiscal years 
2009 through 2014.’’. 
Æ 
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