I 
117TH CONGRESS 
1ST SESSION H. R. 3414 
To repeal the mandatory flood insurance coverage requirement for commercial 
properties located in flood hazard areas, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 20, 2021 
Mr. LUETKEMEYER introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To repeal the mandatory flood insurance coverage require-
ment for commercial properties located in flood hazard 
areas, 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. OPT-OUT OF MANDATORY COVERAGE REQUIRE-
MENT FOR COMMERCIAL PROPERTIES. 
(a) AMENDMENTS TO FLOOD DISASTER PROTECTION 
ACT OF 1973.—The Flood Disaster Protection Act of 
1973 is amended— 
(1) in section 3(a) (42 U.S.C. 4003(a))— 
(A) in paragraph (10), by striking ‘‘and’’ 
at the end; 
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(B) in paragraph (11), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(12) ‘residential improved real estate’ means 
improved real estate that— 
‘‘(A) is primarily used for residential pur-
poses, as defined by the Federal entities for 
lending regulation; and 
‘‘(B) secures financing or financial assist-
ance provided through a federally related single 
family loan program, as defined by the Federal 
entities for lending regulation.’’; and 
(2) in section 102 (42 U.S.C. 4012a)— 
(A) in subsection (b)— 
(i) in paragraph (1)(A)— 
(I) by inserting ‘‘residential’’ be-
fore ‘‘improved real estate’’; and 
(II) by inserting ‘‘residential’’ be-
fore ‘‘building or mobile home’’; 
(ii) in paragraph (2)— 
(I) by inserting ‘‘residential’’ be-
fore ‘‘improved real estate’’; and 
(II) by inserting ‘‘residential’’ be-
fore ‘‘building or mobile home’’; and 
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(iii) in paragraph (3)— 
(I) in subparagraph (A), by in-
serting ‘‘residential’’ before ‘‘improved 
real estate’’; and 
(II) in the matter after and 
below subparagraph (B), by inserting 
‘‘residential’’ before ‘‘building or mo-
bile home’’; 
(B) in subsection (c)(3), by striking ‘‘, in 
the case of any residential property, for any 
structure that is a part of such property’’ and 
inserting ‘‘for any structure that is part of a 
residential property’’; 
(C) in subsection (e)— 
(i) in paragraph (1)— 
(I) by inserting ‘‘residential’’ be-
fore ‘‘improved real estate’’; and 
(II) by inserting ‘‘residential’’ be-
fore ‘‘building or mobile home’’ each 
place such term appears; and 
(ii) in paragraph (5)— 
(I) in subparagraph (A)— 
(aa) by inserting ‘‘residen-
tial’’ before ‘‘improved real es-
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tate’’ each place such term ap-
pears; and 
(bb) by inserting ‘‘residen-
tial’’ before ‘‘building or mobile 
home’’ each place such term ap-
pears; 
(II) in subparagraph (B), by in-
serting ‘‘residential’’ before ‘‘building 
or mobile home’’ each place such term 
appears; and 
(III) in subparagraph (C), by in-
serting ‘‘residential’’ before ‘‘building 
or mobile home’’; and 
(D) in subsection (h)— 
(i) by inserting ‘‘residential’’ before 
‘‘improved real estate’’ each place such 
term appears; and 
(ii) in the matter preceding paragraph 
(1), by inserting ‘‘residential’’ before 
‘‘building or mobile home’’. 
(b) AMENDMENTS TO NATIONAL FLOOD INSURANCE 
ACT OF 1968.—The National Flood Insurance Act of 
1968 is amended— 
(1) in section 1364(a) (42 U.S.C. 4104a(a))— 
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(A) in paragraph (1), by inserting ‘‘resi-
dential’’ before ‘‘improved real estate’’; 
(B) in paragraph (2), by inserting ‘‘resi-
dential’’ before ‘‘improved real estate’’; and 
(C) in paragraph (3)(A), by inserting ‘‘res-
idential’’ before ‘‘building’’; 
(2) in section 1365 (42 U.S.C. 4104b)— 
(A) in subsection (a)— 
(i) by inserting ‘‘residential’’ before 
‘‘improved real estate’’; and 
(ii) by inserting ‘‘residential’’ before 
‘‘building’’; 
(B) in subsection (b)(2)— 
(i) by inserting ‘‘residential’’ before 
‘‘building’’ each place such term appears; 
and 
(ii) by inserting ‘‘residential’’ before 
‘‘improved real estate’’ each place such 
term appears; 
(C) in subsection (d), by inserting ‘‘resi-
dential’’ before ‘‘improved real estate’’ each 
place such term appears; and 
(D) in subsection (e)— 
(i) by inserting ‘‘residential’’ before 
‘‘improved real estate’’; and 
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(ii) by inserting ‘‘residential’’ before 
‘‘building’’ each place such term appears; 
and 
(3) in section 1370 (42 U.S.C. 4121)— 
(A) in paragraph (8), by inserting ‘‘resi-
dential’’ before ‘‘improved real estate’’; 
(B) by redesignating paragraphs (14) and 
(15) as paragraphs (15) and (16), respectively; 
and 
(C) by inserting after paragraph (13) the 
following new paragraph: 
‘‘(14) the term ‘residential improved real estate’ 
means improved real estate that— 
‘‘(A) is primarily used for residential pur-
poses, as defined by the Federal entities for 
lending regulation; and 
‘‘(B) secures financing or financial assist-
ance provided through a federally related single 
family loan program, as defined by the Federal 
entities for lending regulation;’’. 
(c) RULE OF CONSTRUCTION.—This section and the 
amendments made by this section may not be construed 
to prohibit the Administrator of the Federal Emergency 
Management Agency from offering flood insurance cov-
erage under the National Flood Insurance Program for 
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eligible non-residential properties, other residential multi-
family properties, or structures financed with commercial 
loans, or to prohibit the purchase of such coverage for 
such eligible properties. 
Æ 
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