tion on topography, water flow, and any other 
issues, relevant to mapping for flood insurance 
purposes.’’; and 
(2) in paragraph (3)— 
(A) in subparagraph (D), by striking ‘‘and’’ 
at the end; 
(B) by redesignating subparagraph (E) as 
subparagraph (F); and 
(C) by inserting after subparagraph (D) the 
following new subparagraph: 
‘‘(E) any other information relevant to 
mapping for flood insurance purposes obtained 
pursuant to paragraph (1)(D); and’’. 
TITLE 
IV—PROTECTING 
CON-
SUMERS 
AND 
INDIVIDUALS 
THROUGH IMPROVED MITIGA-
TION 
SEC. 401. PROVISION OF COMMUNITY RATING SYSTEM PRE-
MIUM CREDITS TO MAXIMUM NUMBER OF 
COMMUNITIES PRACTICABLE. 
Subsection (b) of section 1315 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4022(b)) is amended— 
(1) in paragraph (2), by striking ‘‘may’’ and in-
serting ‘‘shall’’; and 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
(2) in paragraph (3), by inserting ‘‘, and the 
Administrator shall provide credits to the maximum 
number of communities practicable’’ after ‘‘under this 
program’’. 
TITLE V—PROGRAM INTEGRITY 
SEC. 501. INDEPENDENT ACTUARIAL REVIEW. 
Section 1309 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4016) is amended by adding at the end 
the following new subsection: 
‘‘(e) INDEPENDENT ACTUARIAL REVIEW.— 
‘‘(1) FIDUCIARY RESPONSIBILITY.—The Admin-
istrator has a responsibility to ensure that the Na-
tional Flood Insurance Program remains financially 
sound. Pursuant to this responsibility, the Adminis-
trator shall from time to time review and eliminate 
nonessential costs and positions within the Program, 
unless otherwise authorized or required by law, as the 
Administrator determines to be necessary. 
‘‘(2) 
ANNUAL
INDEPENDENT
ACTUARIAL 
STUDY.—The Administrator shall provide for an 
independent actuarial study of the National Flood In-
surance Program to be conducted annually, which 
shall analyze the financial position of the program 
based on the long-term estimated losses of the pro-
gram. The Administrator shall submit a report (to-
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
gether with the independent actuarial study) annu-
ally to the Committee on Financial Services of the 
House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
describing the results of such study, including a deter-
mination of whether the Program has collected rev-
enue sufficient to cover the administrative expenses of 
carrying out the flood insurance program, which are 
reflected in the risk premium rates, cost of capital, all 
other costs associated with the transfer of risks, and 
expected claims payments during the reporting pe-
riod, and an overall assessment of the financial status 
of the Program. 
‘‘(3) DETERMINATION
OF
ACTUARIAL
BUDGET 
DEFICIT.— 
‘‘(A) REQUIREMENT.—Within the report 
submitted under paragraph (2), the Adminis-
trator shall issue a determination of whether 
there exists an actuarial budget deficit for the 
Program for the year covered in the report. The 
report shall recommend any changes to the Pro-
gram, if necessary, to ensure that the program 
remains financially sound. 
‘‘(B) BASIS OF DETERMINATION.—The de-
termination required by subparagraph (A) shall 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
be based solely upon whether the portion of pre-
miums estimated and collected by the Program 
during the reporting period is sufficient to cover 
the administrative expenses of carrying out the 
flood insurance program, which are reflected in 
the risk premium rates, cost of capital, all other 
costs associated with the transfer of risk, and ex-
pected claims payments for the reporting period. 
‘‘(4) QUARTERLY REPORTS.—During each fiscal 
year, on a calendar quarterly basis, the Secretary 
shall cause to be published in the Federal Register or 
comparable method, with notice to the Committee on 
Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban 
Affairs of the Senate, information which shall speci-
fy— 
‘‘(A) the cumulative volume of policies that 
have been underwritten under the National Flood 
Insurance Program during such fiscal year 
through the end of the quarter for which the re-
port is submitted; 
‘‘(B) the types of policies insured, cat-
egorized by risk; 
‘‘(C) any significant changes between actual 
and projected claim activity; 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
‘‘(D) projected versus actual loss rates; 
‘‘(E) the cumulative number of currently 
insured repetitive-loss properties, severe repet-
itive-loss properties, and extreme repetitive-loss 
properties that have been identified during such 
fiscal year through the end of the quarter for 
which the report is submitted; 
‘‘(F) the cumulative number of properties 
that have undergone mitigation assistance, 
through the National Flood Insurance Program, 
during such fiscal year through the end of the 
quarter for which the report is submitted; and 
‘‘(G) the number and location, by State or 
territory, of each policyholder that has been iden-
tified for such fiscal year as an eligible household 
for purposes of the flood insurance affordability 
program under section 1326. 
The first quarterly report under this paragraph shall 
be submitted on the last day of the first quarter of fis-
cal year 2018, or on the last day of the first full cal-
endar quarter following the enactment of the 21st 
Century Flood Reform Act, whichever occurs later.’’. 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
SEC. 502. ADJUSTMENTS TO HOMEOWNER FLOOD INSUR-
ANCE AFFORDABILITY SURCHARGE. 
(a) IN GENERAL.—Section 1308A of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015a) is amend-
ed— 
(1) in subsection (a), by striking the first sen-
tence and inserting the following: ‘‘The Administrator 
shall impose and collect a non-refundable annual sur-
charge, in the amount provided in subsection (b), on 
all policies for flood insurance coverage under the Na-
tional Flood Insurance Program that are newly 
issued or renewed after the date of the enactment of 
this section.’’; and 
(2) by striking subsection (b) and inserting the 
following new subsection: 
‘‘(b) AMOUNT.—The amount of the surcharge under 
subsection (a) shall be $40, except as follows: 
‘‘(1) NON-PRIMARY RESIDENCES ELIGIBLE FOR 
PRP.—The amount of the surcharge under subsection 
(a) shall be $125 in the case of in the case of a policy 
for any property that is— 
‘‘(A) a residential property that is not the 
primary residence of an individual, and 
‘‘(B) eligible for preferred risk rate method 
premiums. 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
‘‘(2) NON-RESIDENTIAL PROPERTIES AND NON- 
PRIMARY RESIDENCES NOT ELIGIBLE FOR PRP.—The 
amount of the surcharge under subsection (a) shall be 
$275 in case of in the case of a policy for any prop-
erty that is— 
‘‘(A) a non-residential property; or 
‘‘(B) a residential property that is— 
‘‘(i) not the primary residence of an 
individual; and 
‘‘(ii) not eligible for preferred risk rate 
method premiums.’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply with respect to policies for flood in-
surance coverage under the National Flood Insurance Act 
of 1968 that are newly issued or renewed after the expira-
tion of the 12-month period beginning on the date of the 
enactment of this Act. 
SEC. 503. NATIONAL FLOOD INSURANCE RESERVE FUND 
COMPLIANCE. 
Section 1310A of the National Flood Insurance Act of 
1968 (42 U.S.C. 4017A) is amended— 
(1) in subsection (c)(2)(D), by inserting before 
the period at the end the following: ‘‘, including any 
provisions relating to chargeable premium rates or 
annual increases of such rates’’; 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
(2) in subsection (c)(3), by striking subpara-
graph (A) and inserting the following new subpara-
graph: 
‘‘(A) PARITY.—In exercising the authority 
granted under paragraph (1) to increase pre-
miums, the Administrator shall institute a single 
annual, uniform rate of assessment for all indi-
vidual policyholders.’’; and 
(3) in subsection (d)— 
(A) by striking paragraph (1) and inserting 
the following new paragraph: 
‘‘(1) IN
GENERAL.—Beginning in fiscal year 
2018 and not ending until the fiscal year in which 
the ratio required under subsection (b) is achieved— 
‘‘(A) in each fiscal year the Administrator 
shall place in the Reserve Fund an amount equal 
to not less than 7.5 percent of the reserve ratio 
required under subsection (b); and 
‘‘(B) if in any given fiscal year the Admin-
istrator fails to comply with subparagraph (A), 
for the following fiscal year the Administrator 
shall increase the rate of the annual assessment 
pursuant to subsection (c)(3)(A) by at least one 
percentage point over the rate of the annual as-
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
sessment pursuant to subsection (c)(3)(A) in ef-
fect on the first day of such given fiscal year.’’; 
(B) in paragraph (2), by inserting before 
the period at the end the following: ‘‘nor to in-
crease 
assessments 
pursuant 
to 
paragraph 
(1)(B)’’; and 
(C) in paragraph (3), by inserting before 
the period at the end the following: ‘‘and para-
graph (1)(B) shall apply until the fiscal year in 
which the ratio required under subsection (b) is 
achieved’’. 
SEC. 504. DESIGNATION AND TREATMENT OF MULTIPLE- 
LOSS PROPERTIES. 
(a) DEFINITION.—Section 1370 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4121) is amended— 
(1) in subsection (a)— 
(A) by striking paragraph (7); and 
(B) 
by 
redesignating 
paragraphs 
(8) 
through (15) as paragraphs (7) through (14), re-
spectively; and 
(2) by adding at the end the following new sub-
section: 
‘‘(d) MULTIPLE-LOSS PROPERTIES.— 
‘‘(1) DEFINITIONS.—As used in this title: 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
‘‘(A) MULTIPLE-LOSS PROPERTY.—The term 
‘multiple-loss property’ means any property that 
is a repetitive-loss property, a severe repetitive- 
loss property, or an extreme repetitive-loss prop-
erty. 
‘‘(B) 
REPETITIVE-LOSS
PROPERTY.—The 
term ‘repetitive-loss property’ means a structure 
that has incurred flood damage for which two or 
more separate claims payments of any amount 
have been made under flood insurance coverage 
under this title. 
‘‘(C) 
SEVERE
REPETITIVE-LOSS
PROP-
ERTY.—The term ‘severe repetitive-loss property’ 
means a structure that has incurred flood dam-
age for which— 
‘‘(i) 4 or more separate claims pay-
ments have been made under flood insur-
ance coverage under this title, with the 
amount of each such claim exceeding 
$5,000, and with the cumulative amount of 
such claims payments exceeding $20,000; or 
‘‘(ii) at least 2 separate claims pay-
ments have been made under flood insur-
ance coverage under this title, with the cu-
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
mulative amount of such claims payments 
exceeding the value of the structure. 
‘‘(D) EXTREME
REPETITIVE-LOSS
PROP-
ERTY.—The term ‘extreme repetitive-loss prop-
erty’ means a structure that has incurred flood 
damage for which at least 2 separate claims have 
been made under flood insurance coverage under 
this title, with the cumulative amount of such 
claims payments exceeding 150 percent of the 
maximum coverage amount available for the 
structure. 
‘‘(2) TREATMENT OF CLAIMS BEFORE COMPLI-
ANCE WITH STATE AND LOCAL REQUIREMENTS.—The 
Administrator shall not consider claims that occurred 
before a structure was made compliant with State 
and local floodplain management requirements for 
purposes of determining a structure’s status as a mul-
tiple-loss property.’’. 
(b) PREMIUM ADJUSTMENT TO REFLECT CURRENT 
FLOOD RISK.— 
(1) IN GENERAL.—Section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015), as 
amended by the preceding provisions of this Act, is 
further amended by adding at the end the following 
new subsection: 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
‘‘(o) PREMIUM ADJUSTMENT TO REFLECT CURRENT 
FLOOD RISK.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Administrator shall rate a multiple- 
loss property that is charged a risk premium rate es-
timated 
under 
section 
1307(a)(1) 
(42 
U.S.C. 
4014(a)(1)) based on the current risk of flood reflected 
in the flood insurance rate map in effect at the time 
of rating. 
‘‘(2) ADJUSTMENT FOR EXISTING POLICIES.—For 
policies for flood insurance under this title in force on 
the date of the enactment of this Act for properties de-
scribed in paragraph (1)— 
‘‘(A) notwithstanding subsection (e) of this 
section, the Administrator shall increase risk 
premium rates by not less than 15 percent each 
year until such rates comply with paragraph (1) 
of this subsection; and 
‘‘(B) any rate increases required by para-
graph (1) shall commence following a claim pay-
ment for flood loss under coverage made avail-
able this title that occurred after the date of en-
actment of this Act.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
1307(g)(2) of the National Flood Insurance Act of 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
1968 (42 U.S.C. 4014(g)(2)) is amended by striking 
subparagraph (B) and inserting the following new 
subparagraph: 
‘‘(B) in connection with a multiple-loss 
property.’’. 
(c) PRE-FIRM MULTIPLE-LOSS PROPERTY.— 
(1) TERMINATION OF SUBSIDY.—Section 1307 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 
4014) is amended— 
(A) in subsection (a)(2)— 
(i) by striking subparagraph (C) and 
inserting the following new subparagraph: 
‘‘(C) any extreme repetitive-loss property;’’; 
(ii) in subparagraph (D), by striking 
‘‘or’’; 
(iii) in subparagraph (E)— 
(I) in clause (i), by striking 
‘‘fair’’; and 
(II) in clause (ii)— 
(aa) by striking ‘‘fair’’; and 
(bb) by striking ‘‘and’’ and 
inserting ‘‘or’’; and 
(iv) by adding at the end the following 
new subparagraph: 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
‘‘(F) any repetitive-loss property that has 
received a claim payment for flood loss under 
coverage made available under this title that oc-
curred after the date of enactment of this Act; 
and’’; and 
(B) by striking subsection (h). 
(2) ANNUAL
LIMITATION
ON
PREMIUM
IN-
CREASES.—Subsection (e) of section 1308 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4015(e)) is amended— 
(A) in paragraph (3), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (4), by striking ‘‘de-
scribed under paragraph (3).’’ and inserting ‘‘es-
timated under section 1307(a)(1); and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(5) the chargeable risk premium rates for flood 
insurance under this title for any properties described 
in subparagraph (F) of section 1307(a)(2) shall be in-
creased by not less than 15 percent each year, until 
the average risk premium rate for such properties is 
equal to the average of the risk premium rates for 
properties estimated under section 1307(a)(1).’’. 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
(d) MINIMUM DEDUCTIBLES FOR CERTAIN MULTIPLE- 
LOSS PROPERTIES.— 
(1) CLERICAL AMENDMENT.—The National Flood 
Insurance Act of 1968, as amended by the preceding 
provisions of this Act, is further amended— 
(A) by transferring subsection (b) of section 
1312 (42 U.S.C. 4019(b)) to section 1306 (42 
U.S.C. 4013), inserting such subsection at the 
end of such section, and redesignating such sub-
section as subsection (f); and 
(B) in section 1312 (42 U.S.C. 4019), by re-
designating subsection (c) as subsection (b). 
(2) CERTAIN
MULTIPLE-LOSS
PROPERTIES.— 
Subsection (f) of section 1306 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4013(e)), as so 
transferred and redesignated by paragraph (1) of this 
subsection, is amended adding at the end the fol-
lowing new paragraph: 
‘‘(3) CERTAIN
MULTIPLE-LOSS
PROPERTIES.— 
Notwithstanding paragraph (1) or (2), the minimum 
annual deductible for damage to any severe repetitive- 
loss property or extreme repetitive-loss property shall 
be not less than $5,000.’’. 
(e) CLAIM
HISTORY
VALIDATION.—Beginning not 
later than the expiration of the 180-day period beginning 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
on the date of the enactment of this Act, the Administrator 
of the Federal Emergency Management Agency shall under-
take efforts to validate the reasonable accuracy of claim his-
tory data maintained pursuant to the National Flood In-
surance Act of 1968 (42 U.S.C. 4001 et seq.). 
(f) INCREASED COST OF COMPLIANCE COVERAGE.— 
Paragraph (1) of section 1304(b) of the National Flood In-
surance Act of 1968 (42 U.S.C. 4011(b)(1)) is amended by 
striking ‘‘repetitive loss structures’’ and inserting ‘‘mul-
tiple-loss properties’’. 
(g) AVAILABILITY OF INSURANCE FOR MULTIPLE-LOSS 
PROPERTIES.— 
(1) IN GENERAL.—The National Flood Insurance 
Act of 1968 is amended by inserting after section 
1304 (42 U.S.C. 4011) the following new section: 
‘‘SEC. 1304A. AVAILABILITY OF INSURANCE FOR MULTIPLE- 
LOSS PROPERTIES. 
‘‘(a) DATE AND INFORMATION IDENTIFYING CURRENT 
FLOOD RISK.—The Administrator may provide flood insur-
ance coverage under this title for a multiple-loss property 
only if the owner of the property submits to the Adminis-
trator such data and information necessary to determine 
such property’s current risk of flood, as determined by the 
Administrator, at the time of application for or renewal 
of such coverage. 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
‘‘(b) REFUSAL TO MITIGATE.— 
‘‘(1) IN GENERAL.—Except as provided pursuant 
to paragraph (2), the Administrator may not make 
flood insurance coverage available under this title for 
any extreme repetitive-loss property for which a claim 
payment for flood loss was made under coverage made 
available under this title that occurred after the date 
of enactment of the 21st Century Flood Reform Act if 
the property owner refuses an offer of mitigation for 
the property under section 1366(a)(2) (42 U.S.C. 
4104c(a)(2)). 
‘‘(2) EXCEPTIONS; APPEALS.—The Director shall 
develop guidance to provide appropriate exceptions to 
the prohibition under paragraph (1) and to allow for 
appeals to such prohibition.’’. 
(2) EFFECTIVE DATE.—Section 1304A of the Na-
tional Flood Insurance Act of 1968, as added by 
paragraph (1) of this subsection, shall apply begin-
ning upon the expiration of the 12-month period be-
ginning on the date of the enactment of this Act. 
(h) RATES FOR PROPERTIES NEWLY MAPPED INTO 
AREAS WITH SPECIAL FLOOD HAZARDS.—Subsection (i) 
of section 1308 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4015(i)) is amended— 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00064
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
(1) by striking the subsection designation and all 
that follows through ‘‘Notwithstanding’’ and inserting 
the following: 
‘‘(i) RATES FOR PROPERTIES NEWLY MAPPED INTO 
AREAS WITH SPECIAL FLOOD HAZARDS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2) and notwithstanding’’; 
(2) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively, and moving 
the left margins of such subparagraphs, as so redesig-
nated, and the matter following subparagraph (B), 2 
ems to the right; and 
(3) by adding at the end the following new para-
graph: 
‘‘(2) INAPPLICABILITY TO MULTIPLE-LOSS PROP-
ERTIES.—Paragraph (1) shall not apply to multiple- 
loss properties.’’. 
(i) CLEAR COMMUNICATION OF MULTIPLE-LOSS PROP-
ERTY STATUS.— 
(1) IN GENERAL.—Subsection (l) of section 1308 
of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(l)), as amended by the preceding provi-
sions of this Act, is further amended by adding at the 
end the following new paragraph: 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
‘‘(2) MULTIPLE-LOSS PROPERTIES.—Pursuant to 
paragraph (1), the Administrator shall clearly com-
municate to all policyholders for multiple-loss prop-
erties the effect on the premium rates charged for such 
a property of filing any further claims under a flood 
insurance policy with respect to that property.’’. 
(j) MITIGATION ASSISTANCE PROGRAM.—Section 1366 
of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104c) is amended— 
(1) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by inserting after the period at the end of the 
first sentence the following: ‘‘Priority under the 
program shall be given to providing assistance 
with respect to multiple-loss properties.’’; 
(B) in paragraph (1), by inserting ‘‘and’’ 
after the semicolon at the end; and 
(C) by striking paragraphs (2) and (3) and 
inserting the following: 
‘‘(2) to property owners, in coordination with 
the State and community, in the form of direct grants 
under this section for carrying out mitigation activi-
ties that reduce flood damage to extreme repetitive- 
loss properties. 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
The Administrator shall take such actions as may be nec-
essary to ensure that grants under this subsection are pro-
vided in a manner that is consistent with the delivery of 
coverage for increased cost of compliance provided under 
section 1304(b).’’; 
(2) in subsection (c)(2)(A)(ii), by striking ‘‘se-
vere repetitive loss structures’’ and inserting ‘‘mul-
tiple-loss properties’’; 
(3) in subsection (d)— 
(A) in paragraph (1)— 
(i) by striking ‘‘SEVERE REPETITIVE 
LOSS
STRUCTURES’’ and inserting ‘‘EX-
TREME
REPETITIVE-LOSS
PROPERTIES’’; 
and 
(ii) by striking ‘‘severe repetitive loss 
structures’’ and inserting ‘‘extreme repet-
itive-loss properties’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘REPETITIVE
LOSS 
STRUCTURES’’ and inserting ‘‘SEVERE RE-
PETITIVE-LOSS PROPERTIES’’; 
(ii) by striking ‘‘repetitive loss struc-
tures’’ and inserting ‘‘severe repetitive-loss 
properties’’; and 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
(iii) by striking ‘‘90 percent’’ and in-
serting ‘‘100 percent’’; 
(C) by redesignating paragraph (3) as 
paragraph (4); and 
(D) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) REPETITIVE-LOSS PROPERTY.—In the case 
of mitigation activities to repetitive-loss properties, in 
an amount up to 100 percent of all eligible costs.’’; 
(4) in subsection (h)— 
(A) by striking paragraphs (2) and (3); 
(B) by striking the subsection designation 
and all that follows through ‘‘shall apply:’’; and 
(C) in paragraph (1)— 
(i) by striking ‘‘COMMUNITY’’ and in-
serting ‘‘DEFINITION OF COMMUNITY’’; 
(ii) by striking ‘‘The’’ and inserting 
‘‘For purposes of this section, the’’; 
(iii) by redesignating such paragraph 
as subsection (j); 
(iv) in subparagraph (B), by striking 
‘‘subparagraph (A)’’ and inserting ‘‘para-
graph (1)’’; 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00068
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
(v) by redesignating subparagraphs 
(A) and (B) as paragraphs (1) and (2), re-
spectively; 
(vi) in paragraph (1), as so redesig-
nated by clause (v) of this subparagraph, by 
redesignating clauses (i) and (ii) as sub-
paragraphs (A) and (B), respectively (and 
moving the margins two ems to the left); 
and 
(vii) by moving the left margins of 
subsection (j) (as so redesignated) and para-
graphs (1) and (2), all as so redesignated, 
two ems to the left; and 
(5) by inserting after subsection (g) the following 
new subsections: 
‘‘(h) ALIGNMENT WITH INCREASED COST OF COMPLI-
ANCE.—Notwithstanding any provision of law, any funds 
appropriated for assistance under this title may be trans-
ferred to the National Flood Insurance Fund established 
under section 1310 (42 U.S.C. 4017) for the payment of 
claims to enable the Administrator to deliver grants under 
subsection (a)(2) of this section to align with the delivery 
of coverage for increased cost of compliance for extreme re-
petitive-loss properties. 
‘‘(i) FUNDING.— 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
Notwithstanding any other provision of law, assist-
ance provided under this section shall be funded by— 
‘‘(A) $225,000,000 in each fiscal year, sub-
ject to offsetting collections, through risk pre-
mium rates for flood insurance coverage under 
this title, and shall be available subject to section 
1310(f); 
‘‘(B) any penalties collected under section 
102(f) the Flood Disaster Protect Act of 1973 (42 
U.S.C. 4012a(f); and 
‘‘(C) any amounts recaptured under sub-
section (e) of this section. 
The Administrator may not use more than 5 percent 
of amounts made available under this subsection to 
cover salaries, expenses, and other administrative 
costs incurred by the Administrator to make grants 
and provide assistance under this section. 
‘‘(2) 
AVAILABILITY.—Amounts 
appropriated 
pursuant to this subsection for any fiscal year may 
remain available for obligation until expended.’’. 
(k) REPEAL.—Section 1367 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4104d) is repealed. 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
SEC. 505. ELIMINATION OF COVERAGE FOR PROPERTIES 
WITH EXCESSIVE LIFETIME CLAIMS. 
Section 1305 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4012) is amended by adding at the end 
the following new subsection: 
‘‘(e) PROHIBITION OF COVERAGE FOR PROPERTIES 
WITH EXCESSIVE LIFETIME CLAIMS.—After the expiration 
of the 18-month period beginning on the date of the enact-
ment of this subsection, the Administrator may not make 
available any new or renewed coverage for flood insurance 
under this title for any multiple-loss property for which the 
aggregate amount in claims payments that have been made 
after the expiration of such period under flood insurance 
coverage under this title exceeds twice the amount of the 
replacement value of the structure.’’. 
SEC. 506. ADDRESSING TOMORROW’S HIGH-RISK STRUC-
TURES TODAY. 
(a) IN GENERAL.—The National Flood Insurance Act 
of 1968 is amended— 
(1) in section 1305 (42 U.S.C. 4012), as amend-
ed by the preceding provisions of this Act, by adding 
at the end the following new subsections: 
‘‘(f) REDUCING FUTURE RISKS OF THE NATIONAL 
FLOOD INSURANCE FUND.— 
‘‘(1) PROHIBITION OF NEW COVERAGE FOR HIGH- 
RISK PROPERTIES.—Except as provided in subsection 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
(g) and notwithstanding any other provision of this 
title, in carrying out the fiduciary responsibility to 
the National Flood Insurance Program under section 
1309(e) (42 U.S.C. 4016(e)) and to reduce future risks 
to the National Flood Insurance Fund, on or after 
January 1, 2021, the Administrator may not make 
available flood insurance coverage under this title as 
follows: 
‘‘(A) NEW STRUCTURES ADDED TO FLOOD 
HAZARD
ZONES.—Any new coverage for any 
property for which new construction is com-
menced on or after such date and that, upon 
completion of such construction, is located in an 
area having special flood hazards. 
‘‘(B) STRUCTURES WITH HIGH-VALUE RE-
PLACEMENT COSTS.—Any new or renewed cov-
erage for any residential property having 4 or 
fewer residences and a replacement value of the 
structure, at the time, exclusive of the value of 
the real estate on which the structure is located, 
that is equal to or exceeds the amount that is 
equal to $1,000,000 multiplied by the number of 
dwelling units in the structure (as such amount 
is adjusted pursuant to clause (i)), subject to the 
following provisions: 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
‘‘(i) ADJUSTMENT OF AMOUNTS.—The 
dollar amount in the matter of this sub-
paragraph that precedes this clause (as it 
may have been previously adjusted) shall be 
adjusted for inflation by the Administrator 
upon the expiration of the 5-year period be-
ginning upon the enactment of this sub-
section and upon the expiration of each suc-
cessive 5-year period thereafter, in accord-
ance with an inflationary index selected by 
the Administrator. 
‘‘(ii) VALUATION.—The Administrator 
shall determine the replacement value of a 
property for purposes of this subparagraph 
using such valuation methods or indicia as 
the Administrator determines are reason-
ably accurate, consistent, reliable, and 
available for such purposes. 
‘‘(2) ACTUARIAL
STRUCTURES
WITH
HIDDEN 
RISKS.—For any property with risk premium rates 
estimated under section 1307(a)(1), on or after Janu-
ary 1, 2021, the Administrator shall charge risk pre-
mium rates based on the current risk of flood reflected 
in the flood insurance rate map or comparable risk 
rating metric in effect at the time a policy is newly 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
issued, unless the newly issued policy covers a prop-
erty with continuous flood insurance coverage under 
this title, or upon the renewal of a policy. For all 
such policy renewals, the Administrator shall increase 
the risk premium rate in accordance with section 
1308(e)(2) until the risk premium rate is equal to the 
risk of flood reflected in the flood insurance rate map 
or comparable risk rating metric in effect at the time 
of renewal. 
‘‘(3) 
IMPLEMENTATION.—The 
Administrator 
may implement this subsection without rulemaking, 
except that any such implementation shall include 
advance publication of notice in the Federal Register 
or advance notice by another comparable method, 
such as posting on an official website of the Adminis-
trator. 
‘‘(g) AVAILABILITY
OF
OTHERWISE
PROHIBITED 
FLOOD INSURANCE COVERAGE WHERE PRIVATE MARKET 
COVERAGE IS UNAVAILABLE.— 
‘‘(1) IN
GENERAL.—The Administrator may 
make available flood insurance coverage under this 
Act for a property described in subparagraph (A) or 
(B) of subsection (f)(1), notwithstanding subsection (f) 
of this section, if, within the 30-day period beginning 
upon submission to the Clearinghouse established pur-
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS
suant to section 1350 of an application for flood in-
surance coverage for such property, the Clearinghouse 
does not provide the applicant with one or more bona 
fide offers for private flood insurance coverage for 
such property. 
‘‘(2) SURCHARGE.—Any flood insurance coverage 
made available for a property pursuant to this sub-
section shall be made available at chargeable pre-
mium rates otherwise determined under this title for 
such property, except that the Administrator shall im-
pose and collect a surcharge for such coverage in an 
amount equal to 10 percent of such chargeable pre-
mium rate, which shall be deposited into the National 
Flood Insurance Fund established under section 
1310.’’; and 
(2) in section 1306(a)(1) (42 U.S.C. 4013(a)(1)), 
by inserting ‘‘, subject to subsections (f) and (g) of 
section 1305’’ before the semicolon at the end. 
(b) STUDY OF FLOOD INSURANCE CLEARINGHOUSE.— 
(1) IN GENERAL.—The Administrator of the Fed-
eral Emergency Management Agency (in this sub-
section referred to as the ‘‘Administrator’’) shall con-
duct a study— 
(A) to analyze the feasibility and effective-
ness, and problems involved, in establishing, 
VerDate Sep 11 2014 
23:48 Sep 11, 2017
Jkt 069200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6203
E:\BILLS\H2874.RH
H2874
SSpencer on DSKBBV9HB2PROD with BILLS