I 
115TH CONGRESS 
1ST SESSION H. R. 2874 
To achieve reforms to improve the financial stability of the National Flood 
Insurance Program, to enhance the development of more accurate esti-
mates of flood risk through new technology and better maps, to increase 
the role of private markets in the management of flood insurance risks, 
and to provide for alternative methods to insure against flood peril, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2017 
Mr. DUFFY introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To achieve reforms to improve the financial stability of the 
National Flood Insurance Program, to enhance the devel-
opment of more accurate estimates of flood risk through 
new technology and better maps, to increase the role 
of private markets in the management of flood insurance 
risks, and to provide for alternative methods to insure 
against flood peril, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘21st Century Flood Reform Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—POLICYHOLDER PROTECTIONS AND INFORMATION 
Sec. 101. Annual limitation on premium increases. 
Sec. 102. Flood insurance affordability program. 
Sec. 103. Disclosure of premium methodology. 
Sec. 104. Consideration of coastal and inland locations in premium rates. 
Sec. 105. Monthly installment payment of premiums. 
Sec. 106. Enhanced clear communication of flood risks. 
Sec. 107. Availability of flood insurance information upon request. 
TITLE II—INCREASING CONSUMER CHOICE THROUGH PRIVATE 
MARKET DEVELOPMENT 
Sec. 201. Elimination of non-compete requirement. 
Sec. 202. Public availability of program information. 
Sec. 203. Refund of premiums upon cancellation of policy because of replace-
ment with private flood insurance. 
Sec. 204. GAO study of flood damage savings accounts. 
Sec. 205. Demonstration program for flood damage savings accounts. 
TITLE III—MAPPING FAIRNESS 
Sec. 301. Use of other risk assessment tools in determining premium rates. 
Sec. 302. Appeals regarding existing flood maps. 
Sec. 303. Appeals and publication of projected special flood hazard areas. 
Sec. 304. Communication and outreach regarding map changes. 
TITLE IV—PROTECTING CONSUMERS AND INDIVIDUALS 
THROUGH IMPROVED MITIGATION 
Sec. 401. Provision of Community Rating System premium credits to maximum 
number of communities practicable. 
TITLE V—PROGRAM INTEGRITY 
Sec. 501. Independent actuarial review. 
Sec. 502. Adjustments to homeowner flood insurance affordability surcharge. 
Sec. 503. National Flood Insurance Reserve Fund compliance. 
Sec. 504. Designation and treatment of multiple-loss properties. 
Sec. 505. Elimination of coverage for properties with excessive lifetime claims. 
Sec. 506. Addressing tomorrow’s high-risk structures today. 
Sec. 507. Allowance for Write Your Own companies. 
Sec. 508. Enforcement of mandatory purchase requirements. 
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Sec. 509. Satisfaction of mandatory purchase requirement in States requiring 
flood coverage in all-perils policies. 
Sec. 510. Flood insurance purchase requirements. 
TITLE I—POLICYHOLDER PRO-
TECTIONS AND INFORMATION 
SEC. 101. ANNUAL LIMITATION ON PREMIUM INCREASES. 
Section 1308(e) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015(e)) is amended— 
(1) in paragraph (1), by striking ‘‘18 percent’’ 
and inserting ‘‘15 percent’’; and 
(2) in paragraph (2), by striking ‘‘5 percent’’ 
and inserting ‘‘8 percent’’. 
SEC. 102. FLOOD INSURANCE AFFORDABILITY PROGRAM. 
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. FLOOD INSURANCE AFFORDABILITY PROGRAM. 
‘‘(a) AUTHORITY.—The Administrator shall carry out 
a program under this section to provide financial assist-
ance, through State programs carried out by participating 
States, for eligible low-income households residing in eligi-
ble properties to purchase policies for flood insurance cov-
erage made available under this title. 
‘‘(b) PARTICIPATION.—Participation in the program 
under this section shall be voluntary on the part of a State 
or consortium of States. 
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‘‘(c) STATE ADMINISTRATION.—Each participating 
State shall delegate to a State agency or nonprofit organi-
zation the responsibilities for administrating the State’s 
program under this section. 
‘‘(d) ELIGIBLE HOUSEHOLDS.— 
‘‘(1) IN GENERAL.—During any fiscal year, as-
sistance under the program under this section may 
be provided only for a household that has an income, 
as determined for such fiscal year by the partici-
pating State in which such household resides, that is 
less than the income limitation established for such 
fiscal year for purposes of the State program by the 
participating State, except that— 
‘‘(A) assistance under the program under 
this section may not be provided for a house-
hold having a income that exceeds the greater 
of— 
‘‘(i) the amount equal to 150 percent 
of the poverty level for such State; or 
‘‘(ii) the amount equal to 60 percent 
of the median income of households resid-
ing in such State; and 
‘‘(B) a State may not exclude a household 
from eligibility in a fiscal year solely on the 
basis of household income if such income is less 
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than 110 percent of the poverty level for the 
State in which such household resides. 
‘‘(2) STATE VERIFICATION OF INCOME ELIGI-
BILITY.—In verifying income eligibility for purposes 
of paragraph (1), the participating State may apply 
procedures and policies consistent with procedures 
and policies used by the State agency administering 
programs under part A of title IV of the Social Se-
curity Act (42 U.S.C. 601 et seq.), under title XX 
of the Social Security Act (42 U.S.C. 1397 et seq.), 
under subtitle B of title VI of the Omnibus Budget 
Reconciliation Act of 1981 (42 U.S.C. 9901 et seq.; 
relating to community services block grant pro-
gram), under any other provision of law that carries 
out programs which were administered under the 
Economic Opportunity Act of 1964 (42 U.S.C. 2701 
et seq.) before August 13, 1981, or under other in-
come assistance or service programs (as determined 
by the State). 
‘‘(3) CERTIFICATION BY STATE OF ELIGIBILITY 
HOUSEHOLDS.—For each fiscal year, each partici-
pating State shall certify to the Administrator com-
pliance of households who are to be provided assist-
ance under the State program during such fiscal 
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year with the income requirements under paragraph 
(1). 
‘‘(e) ELIGIBLE PROPERTIES.—Assistance under the 
program under this section may be provided only for a 
residential property— 
‘‘(1) that has 4 or fewer residences; 
‘‘(2) that is owned and occupied by an eligible 
household; 
‘‘(3) for which a base flood elevation is identi-
fied on a flood insurance rate map of the Adminis-
trator that is in effect; 
‘‘(4) for which such other information is avail-
able as the Administrator considers necessary to de-
termine the flood risk associated with such property; 
and 
‘‘(5) that is located in a community that is par-
ticipating in the national flood insurance program. 
‘‘(f) TYPES OF ASSISTANCE.—Under the program 
under this section, a participating State shall elect to pro-
vide financial assistance for eligible households in one of 
the following forms: 
‘‘(1) LIMITATION ON RATE INCREASES.—By es-
tablishing a limitation on the rate of increases in the 
amount of chargeable premiums paid by eligible 
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households for flood insurance coverage made avail-
able under this title. 
‘‘(2) LIMITATION ON RATES.—By establishing a 
limitation on the amount of chargeable premiums 
paid by eligible households for flood insurance cov-
erage made available under this title. 
‘‘(g) NOTIFICATION TO FEMA.—Under the program 
under this section, a participating State shall, on a fiscal 
year basis and at the time and in the manner provided 
by the Administrator— 
‘‘(1) identify for the Administrator the eligible 
households residing in the State who are to be pro-
vided assistance under the State program during 
such fiscal year; and 
‘‘(2) notify the Administrator of the type and 
levels of assistance elected under subsection (f) to be 
provided under the State program with respect to 
such eligible households residing in the State. 
‘‘(h) AMOUNT OF ASSISTANCE.—Under the program 
under this section, in each fiscal year the Administrator 
shall, notwithstanding section 1308, make flood insurance 
coverage available for purchase by households identified 
as eligible households for such fiscal year by a partici-
pating State pursuant to subsection (e) at chargeable pre-
mium rates that are discounted by an amount that is 
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based on the type and levels of assistance elected pursuant 
to subsection (f) by the participating State for such fiscal 
year. 
‘‘(i) BILLING STATEMENT.—In the case of an eligible 
household for which assistance under the program under 
this section is provided with respect to a policy for flood 
insurance coverage, the annual billing statement for such 
policy shall include statements of the following amounts: 
‘‘(1) The estimated risk premium rate for the 
property under section 1307(a)(1). 
‘‘(2) If applicable, the estimated risk premium 
rate for the property under section 1307(a)(2). 
‘‘(3) The chargeable risk premium rate for the 
property taking into consideration the discount pur-
suant to subsection (h). 
‘‘(4) The amount of the discount pursuant to 
subsection (h) for the property. 
‘‘(5) The number and dollar value of claims 
filed for the property, over the life of the property, 
under a flood insurance policy made available under 
the Program and the effect, under this Act, of filing 
any further claims under a flood insurance policy 
with respect to that property. 
‘‘(j) FUNDING THROUGH STATE AFFORDABILITY 
SURCHARGES.— 
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‘‘(1) IMPOSITION AND COLLECTION.—Notwith-
standing section 1308, for each fiscal year in which 
flood insurance coverage under this title is made 
available for properties in a participating State at 
chargeable premium rates that are discounted pursu-
ant to subsection (f), the Administrator shall impose 
and collect a State affordability surcharge on each 
policy for flood insurance coverage for a property lo-
cated in such participating State that is (A) not a 
residential property having 4 or fewer residences, or 
(B) is such a residential property but is owned by 
a household that is not an eligible household for pur-
poses of such fiscal year. 
‘‘(2) AMOUNT.—The amount of the State af-
fordability surcharge imposed during a fiscal year on 
each such policy for a property in a participating 
State shall be— 
‘‘(A) sufficient such that the aggregate 
amount of all such State affordability sur-
charges imposed on properties in such partici-
pating State during such fiscal year is equal to 
the aggregate amount by which all policies for 
flood insurance coverage under this title sold 
during such fiscal year for properties owned by 
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eligible households in the participating State 
are discounted pursuant to subsection (f); and 
‘‘(B) the same amount for each property in 
the participating State being charged such a 
surplus. 
‘‘(k) TREATMENT
OF OTHER SURCHARGES.—The 
provision of assistance under the program under this sec-
tion with respect to any property and any limitation on 
premiums or premium increases pursuant to subsection (f) 
for the property shall not affect the applicability or 
amount of any surcharge under section 1308A for the 
property, of any increase in premiums charged for the 
property pursuant to section 1310A(c), or of any equiva-
lency fee under section 1308B for the property. 
‘‘(l) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) PARTICIPATING
STATE.—The term ‘par-
ticipating State’ means, with respect to a fiscal year, 
a State that is participating in the program under 
this section for such fiscal year. 
‘‘(2) ELIGIBLE HOUSEHOLD.—The term ‘eligi-
ble household’ means, with respect to a fiscal year 
and a participating State, a household that has an 
income that is less than the amount of the income 
limitation for the fiscal year established for purposes 
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of the State program of such participating State 
pursuant to subsection (g)(1). 
‘‘(3) POVERTY
LEVEL.—The term ‘poverty 
level’’ means, with respect to a household in any 
State, the income poverty line as prescribed and re-
vised at least annually pursuant to section 673(2) of 
the Community Services Block Grant Act (42 U.S.C. 
9902(2)), as applicable to such State. 
‘‘(4) STATE.—The term ‘State’ shall include a 
consortium of States established for purposes of ad-
ministrating the program under this section with re-
spect to the member States of the consortium. 
‘‘(5) STATE PROGRAM.—The term ‘State pro-
gram’ means a program carried out in compliance 
with this section by a participating State in conjunc-
tion with the program under this section of the Ad-
ministrator. 
‘‘(m) REGULATIONS.—The Administrator shall issue 
such regulations as may be necessary to carry out the pro-
gram under this section.’’. 
SEC. 103. DISCLOSURE OF PREMIUM METHODOLOGY. 
Section 1308 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4015) is amended by adding at the end 
the following new subsection: 
‘‘(n) DISCLOSURE OF PREMIUM METHODOLOGY.— 
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‘‘(1) DISCLOSURE.—Six months prior to the ef-
fective date of risk premium rates, the Adminis-
trator shall cause to be published in the Federal 
Register an explanation of the bases for, and meth-
odology used to determine, the chargeable premium 
rates to be effective for flood insurance coverage 
under this title. 
‘‘(2) 
ALIGNMENT
WITH
INDUSTRY
PRAC-
TICES.—The disclosure required under paragraph 
(1) shall, to the extent practicable, be aligned with 
industry patterns and practices and shall include in-
formation and data recommended by the State in-
surance commissioners guidelines on rate filings. 
‘‘(3) PUBLIC
MEETINGS.—The Administrator 
shall, on an annual basis, hold at least one public 
meeting in each of the geographical regions of the 
United States, as defined by the Administrator for 
purposes of the National Flood Insurance Program, 
for the purpose of explaining the methodology de-
scribed in paragraph (1) and answering questions 
and receiving comments regarding such method-
ology. The Administrator shall provide notice of each 
such public meeting in advance, in such manner, and 
in using such means as are reasonably designed to 
notify interested parties and members of the public 
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of the date and time, location, and purpose of such 
meeting, and of how to submit questions or com-
ments.’’. 
SEC. 104. CONSIDERATION OF COASTAL AND INLAND LOCA-
TIONS IN PREMIUM RATES. 
(a) ESTIMATES OF PREMIUM RATES.—Subparagraph 
(A) of section 1307(a)(1) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4014(a)(1)(A)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
and 
(2) by adding at the end the following new 
clause: 
‘‘(iii) the differences in flood risk for 
properties located in coastal areas and 
properties located inland; and’’. 
(b) ESTABLISHMENT
OF CHARGEABLE PREMIUM 
RATES.—Paragraph (1) of section 1308(b) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4015(b)(1)) is amended by inserting ‘‘due to differences 
in flood risk for properties located in coastal areas and 
properties located inland and’’ after ‘‘including differences 
in risks’’. 
(c) REVISED RATES.—Not later than the expiration 
of the two-year period beginning on the date of the enact-
ment of this Act, the Administrator of the Federal Emer-
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gency Management Agency shall revise risk premium rates 
under the National Flood Insurance Program to imple-
ment the amendments made by this section. 
SEC. 105. MONTHLY INSTALLMENT PAYMENT OF PRE-
MIUMS. 
Subsection (g) of section 1308 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended— 
(1) by striking the subsection designation and 
all that follows through ‘‘With respect’’ and insert-
ing the following: 
‘‘(g) FREQUENCY OF PREMIUM COLLECTION.— 
‘‘(1) OPTIONS.—With respect’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) MONTHLY
INSTALLMENT
PAYMENT
OF 
PREMIUMS.— 
‘‘(A) EXEMPTION
FROM
RULEMAKING.— 
Until such time as the Administrator promul-
gates regulations implementing paragraph (1) 
of this subsection, the Administrator may adopt 
policies and procedures, notwithstanding any 
other provisions of law and in alignment and 
consistent with existing industry escrow and 
servicing standards, necessary to implement 
such paragraph without undergoing notice and 
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comment rulemaking and without conducting 
regulatory analyses otherwise required by stat-
ute, regulation, or Executive order. 
‘‘(B) INSTALLMENT PLAN FEE.—The Ad-
ministrator may charge policyholders choosing 
to pay premiums in monthly installments a fee 
not to exceed $50 annually. 
‘‘(C) 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.’’. 
SEC. 106. ENHANCED CLEAR COMMUNICATION OF FLOOD 
RISKS. 
(a) IN GENERAL.—Subsection (l) of section 1308 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 
4015(l)) is amended to read as follows: 
‘‘(l) CLEAR COMMUNICATIONS.— 
‘‘(1) NEWLY
ISSUED
AND
RENEWED
POLI-
CIES.—For all policies for flood insurance coverage 
under the National Flood Insurance Program that 
are newly issued or renewed, the Administrator shall 
clearly communicate to policyholders— 
‘‘(A) their full flood risk determinations, 
regardless of whether their premium rates are 
full actuarial rates; and 
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‘‘(B) the number and dollar value of claims 
filed for the property, over the life of the prop-
erty, under a flood insurance policy made avail-
able under the Program and the effect, under 
this Act, of filing any further claims under a 
flood insurance policy with respect to that prop-
erty.’’. 
(b) EFFECTIVE DATE.—Subsection (l) of section 
1308 of the National Flood Insurance Act of 1968, as 
added by subsection (a) of this section, shall take effect 
beginning upon the expiration of the 12-month period that 
begins on the date of the enactment of this Act. Such sub-
section (l), as in effect immediately before the amendment 
made by paragraph (1), shall apply during such 12-month 
period. 
SEC. 107. AVAILABILITY OF FLOOD INSURANCE INFORMA-
TION UPON REQUEST. 
Section 1313 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4020) is amended— 
(1) by inserting ‘‘(a) PUBLIC INFORMATION 
AND DATA.—’’ after ‘‘SEC. 1313.’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) AVAILABILITY OF FLOOD INSURANCE INFORMA-
TION UPON REQUEST.—Not later than 30 days after a 
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request for such information by the current owner of a 
property, the Administrator shall provide to the owner any 
information, including historical information, available to 
the Administrator on flood insurance program coverage, 
payment of claims, and flood damages for the property 
at issue, and any information the Administrator has on 
whether the property owner may be required to purchase 
coverage under the National Flood Insurance Program 
due to previous receipt of Federal disaster assistance, in-
cluding assistance provided by the Small Business Admin-
istration, the Department of Housing and Urban Develop-
ment, or the Federal Emergency Management Agency, or 
any other type of assistance that subjects the property to 
the mandatory purchase requirement under section 102 
of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a).’’. 
TITLE 
II—INCREASING 
CON-
SUMER 
CHOICE 
THROUGH 
PRIVATE MARKET DEVELOP-
MENT 
SEC. 201. ELIMINATION OF NON-COMPETE REQUIREMENT. 
Section 1345 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081) is amended by adding at the end 
the following new subsection: 
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‘‘(f) AUTHORITY TO PROVIDE OTHER FLOOD COV-
ERAGE.— 
‘‘(1) IN
GENERAL.—The Administrator may 
not, as a condition of participating in the Write 
Your Own Program (as such term is defined in sec-
tion 1370(a)) or in otherwise participating in the 
utilization by the Administrator of the facilities and 
services of insurance companies, insurers, insurance 
agents and brokers, and insurance adjustment orga-
nizations pursuant to the authority in this section, 
nor as a condition of eligibility to engage in any 
other activities under the National Flood Insurance 
Program under this title, restrict any such company, 
insurer, agent, broker, or organization from offering 
and selling private flood insurance (as such term is 
defined in section 102(b)(9) of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4012a(b)(9))). 
‘‘(2) 
FINANCIAL
ASSISTANCE/SUBSIDY
AR-
RANGEMENT.—After the date of the enactment of 
this subsection— 
‘‘(A) the Administrator may not include in 
any agreement entered into with any insurer for 
participation in the Write Your Own Program 
any provision establishing a condition prohib-
ited by paragraph (1), including the provisions 
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of Article XIII of the Federal Emergency Man-
agement Agency, Federal Insurance Adminis-
tration, Financial Assistance/Subsidy Arrange-
ment, as adopted pursuant to section 62.23(a) 
of title 44 of the Code of Federal Regulations; 
and 
‘‘(B) any such provision in any such agree-
ment entered into before such date of enact-
ment shall not have any force or effect, and the 
Administrator may not take any action to en-
force such provision.’’. 
SEC. 202. PUBLIC AVAILABILITY OF PROGRAM INFORMA-
TION. 
Part C of chapter II of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4081 et seq.) is amended by add-
ing at the end the following new section: 
‘‘SEC. 1349. PUBLIC AVAILABILITY OF PROGRAM INFORMA-
TION. 
‘‘(a) FLOOD RISK INFORMATION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), to facilitate the National Flood Insurance 
Program becoming a source of information and data 
for research and development of technology that bet-
ter understands flooding, the risk of flooding, and 
the predictability of perils of flooding, the Adminis-
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trator shall make publicly available all data, models, 
assessments, analytical tools, and other information 
in the possession of the Administrator relating to 
the National Flood Insurance Program under this 
title that is used in assessing flood risk or identi-
fying and establishing flood elevations and pre-
miums, including— 
‘‘(A) data relating to risk on individual 
properties and loss ratio information and other 
information identifying losses under the pro-
gram; 
‘‘(B) current and historical policy informa-
tion, limited to the amount and term only, for 
properties currently covered by flood insurance 
and for properties that are no longer covered by 
flood insurance; 
‘‘(C) current and historical claims informa-
tion, limited to the date and amount paid only, 
for properties currently covered by flood insur-
ance and for properties that are no longer cov-
ered by flood insurance; 
‘‘(D) identification of whether a property 
was constructed before or after the effective 
date of the first flood insurance rate map for a 
community; 
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‘‘(E) identification of properties that have 
been mitigated through elevation, a buyout, or 
any other mitigation action; and 
‘‘(F) identification of unmitigated multiple- 
loss properties. 
‘‘(2) OPEN SOURCE DATA SYSTEM.—In carrying 
out paragraph (1), the Administrator shall establish 
an open source data system by which all information 
required to be made publicly available by such sub-
section may be accessed by the public on an imme-
diate basis by electronic means. 
‘‘(b) COMMUNITY INFORMATION.—Not later than the 
expiration of the 12-month period beginning upon the date 
of the enactment of this section, the Administrator shall 
establish and maintain a publicly searchable database that 
provides information about each community participating 
in the National Flood Insurance Program, which shall in-
clude the following information: 
‘‘(1) The status of the community’s compliance 
with the National Flood Insurance Program, includ-
ing any findings of noncompliance, the status of any 
enforcement actions initiated by a State or by the 
Administrator, and the number of days of any such 
continuing noncompliance. 
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‘‘(2) The number of properties located in the 
community’s special flood hazard areas that were 
built before the effective date of the first flood insur-
ance rate map for the community. 
‘‘(3) The number of properties located in the 
community’s special flood hazard areas that were 
built after the effective date of the first flood insur-
ance rate map for the community. 
‘‘(4) The total number of current and historical 
claims located outside the community’s special flood 
hazard areas. 
‘‘(5) The total number of multiple-loss prop-
erties in the community. 
‘‘(6) The portion of the community, stated as a 
percentage and in terms of square miles, that is lo-
cated within special flood hazard areas. 
‘‘(c) IDENTIFICATION OF PROPERTIES.—The infor-
mation provided pursuant to subsections (a) and (b) shall 
be based on data that identifies properties at the zip code 
or census block level, and shall include the name of the 
community and State in which a property is located. 
‘‘(d) PROTECTION OF PERSONALLY IDENTIFIABLE 
INFORMATION.—The information provided pursuant to 
subsections (a) and (b) shall be disclosed in a format that 
does not reveal individually identifiable information about 
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property owners in accordance with the section 552a of 
title 5, United States Code. 
‘‘(e) DEFINITION OF LOSS RATIO.—For purposes of 
this section, the term ‘loss ratio’ means, with respect to 
the National Flood Insurance Program, the ratio of the 
amount of claims paid under the Program to the amount 
of premiums paid under the Program.’’. 
SEC. 203. REFUND OF PREMIUMS UPON CANCELLATION OF 
POLICY BECAUSE OF REPLACEMENT WITH 
PRIVATE FLOOD INSURANCE. 
Section 1306 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4013) is amended by adding at the end 
the following new subsection: 
‘‘(e) REFUND OF UNEARNED PREMIUMS FOR POLI-
CIES CANCELED BECAUSE OF REPLACEMENT WITH PRI-
VATE FLOOD INSURANCE.— 
‘‘(1) REQUIRED
REFUND.—Subject to sub-
section (c), if at any time an insured under a policy 
for flood insurance coverage for a property that is 
made available under this title cancels such policy 
because other duplicate flood insurance coverage for 
the same property has been obtained from a source 
other than the National Flood Insurance Program 
under this title, the Administrator shall refund to 
the former insured a portion of the premiums paid 
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for the coverage made available under this title, as 
determined consistent with industry practice accord-
ing to the portion of the term of the policy that such 
coverage was in effect, but only if a copy of declara-
tions page of the new policy obtained from a source 
other than the program under this title is provided 
to the Administrator. 
‘‘(2) EFFECTIVE
DATE
OF
CANCELLATION.— 
For purposes of this subsection, a cancellation of a 
policy for coverage made available under the na-
tional flood insurance program under this title, for 
the reason specified in paragraph (1), shall be effec-
tive— 
‘‘(A) on the effective date of the new policy 
obtained from a source other than the program 
under this title, if the request for such cancella-
tion was received by the Administrator before 
the expiration of the 6-month period beginning 
on the effective date of the new policy; or 
‘‘(B) on the date of the receipt by the Ad-
ministrator of the request for cancellation, if 
the request for such cancellation was received 
by the Administrator after the expiration of the 
6-month period beginning on the effective date 
of the new policy. 
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‘‘(3) PROHIBITION
OF
REFUNDS
FOR
PROP-
ERTIES
RECEIVING
INCREASED
COST
OF
COMPLI-
ANCE CLAIMS.—No premium amounts paid for cov-
erage made available under this title may be re-
funded pursuant to this subsection— 
‘‘(A) with respect to coverage for any prop-
erty for which measures have been implemented 
using amounts received pursuant to a claim 
under increased cost of compliance coverage 
made available pursuant to section 1304(b); or 
‘‘(B) if a claim has been paid or is pending 
under the policy term for which the refund is 
sought.’’. 
SEC. 204. GAO STUDY OF FLOOD DAMAGE SAVINGS AC-
COUNTS. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study to analyze the feasi-
bility and effectiveness, and problems involved, in reducing 
flood insurance premiums and eliminating the need for 
purchase of flood insurance coverage by authorizing own-
ers of residential properties to establish flood damage sav-
ings accounts described in subsection (b) in lieu of com-
plying with the mandatory requirements under section 102 
of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a) to purchase flood insurance for such properties. 
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(b) FLOOD DAMAGE SAVINGS ACCOUNT.—A flood 
damage savings account described in this subsection is a 
savings account— 
(1) that would be established by an owner of 
residential property with respect to such property in 
accordance with requirements established by the Ad-
ministrator of the Federal Emergency Management 
Agency; and 
(2) the proceeds of which would be available for 
use only to cover losses to such properties resulting 
from flooding, pursuant to adjustment of a claim for 
such losses in the same manner and according to the 
same procedures as apply to claims for losses under 
flood insurance coverage made available under the 
National Flood Insurance Act of 1968. 
(c) ISSUES.—Such study shall include an analysis of, 
and recommendation regarding, each of the following 
issues: 
(1) Whether authorizing the establishment of 
such flood damage savings accounts would be effec-
tive and efficient in reducing flood insurance pre-
miums, eliminating the need for purchase of flood 
insurance coverage made available under the Na-
tional Flood Insurance Program, and reducing risks 
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to the financial safety and soundness of the National 
Flood Insurance Fund. 
(2) Possible options for structuring such flood 
damage savings accounts, including— 
(A) what types of institutions could hold 
such accounts and the benefits and problems 
with each such type of institution; 
(B) considerations affecting the amounts 
required to be held in such accounts; and 
(C) options regarding considerations the 
conditions under which such an account may be 
terminated. 
(3) The feasibility and effectiveness, and prob-
lems involved in, authorizing the Administrator of 
the Federal Emergency Management Agency to 
make secondary flood insurance coverage available 
under the National Flood Insurance Program to 
cover the portion of flood losses or damages to prop-
erties for which such flood damage savings accounts 
have been established that exceed the amounts held 
in such accounts. 
(4) The benefits and problems involved in au-
thorizing the establishment of such accounts for 
non-residential properties. 
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(d) REPORT.—Not later than the expiration of the 
12-month period beginning on the date of the enactment 
of this Act, the Comptroller General shall submit a report 
to the Committee on Financial Services of the House of 
Representatives, the Committee on Banking, Housing, 
and Urban Affairs of the Senate, and the Administrator 
that sets forth the analysis, conclusions, and recommenda-
tions resulting from the study under this section. Such re-
port shall identify elements that should be taken into con-
sideration by the Administrator in designing and carrying 
out the demonstration program under section 205. 
SEC. 205. DEMONSTRATION PROGRAM FOR FLOOD DAMAGE 
SAVINGS ACCOUNTS. 
(a) PLAN.—If the Comptroller General of the United 
States concludes in the report required under section 204 
that a demonstration program under this section is fea-
sible and should be considered, then the Administrator of 
the Federal Emergency Management Agency shall, not 
later than the expiration of the 12-month period beginning 
upon the submission of the report under section 204(d), 
submit to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate a plan and 
guidelines for a demonstration program, to be carried out 
by the Administrator, to demonstrate the feasibility and 
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effectiveness of authorizing the establishment of flood 
damage savings accounts, taking into consideration the 
analysis, conclusions, and recommendations included in 
such report. 
(b) AUTHORITY.—The Administrator of the Federal 
Emergency Management Agency shall carry out a pro-
gram to demonstrate the feasibility and effectiveness of 
authorizing the establishment of flood damage savings ac-
counts in the manner provided in plan and guidelines for 
the demonstration program submitted pursuant to sub-
section (a). 
(c) SCOPE.—The demonstration program under this 
section shall provide for the establishment of flood damage 
savings accounts with respect to not more than 5 percent 
of the residential properties that have 4 or fewer resi-
dences and that are covered by flood insurance coverage 
made available under the National Flood Insurance Pro-
gram. 
(d) TIMING.—The Administrator shall commence the 
demonstration program under this section not later than 
the expiration of the 12-month period beginning upon the 
submission of the plan and guidelines for the demonstra-
tion pursuant to subsection (a). 
(e) GEOGRAPHICAL DIVERSITY.—The Administrator 
shall ensure that properties for which flood damage sav-
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ings accounts are established under the demonstration are 
located in diverse geographical areas throughout the 
United States. 
(f) REPORT.—Upon the expiration of the 2-year pe-
riod beginning upon the date of the commencement of the 
demonstration program under this section, the Adminis-
trator shall submit a report to the Committee on Financial 
Services of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate describing and assessing the demonstration, and 
setting forth conclusions and recommendations regarding 
continuing and expanding the demonstration. 
(g) FEASIBILITY.—The Administrator shall imple-
ment this section only after determining that implementa-
tion is supported by the Comptroller’s conclusions and rec-
ommendations contained in the report required under sec-
tion 204. 
TITLE III—MAPPING FAIRNESS 
SEC. 301. USE OF OTHER RISK ASSESSMENT TOOLS IN DE-
TERMINING PREMIUM RATES. 
(a) ESTIMATES OF PREMIUM RATES.—Subparagraph 
(A) of section 1307(a)(1) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4014(a)(1)(A)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
and 
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(2) by adding at the end the following new 
clause: 
‘‘(iii) both the risk identified by the 
applicable flood insurance rate maps and 
by other risk assessment data and tools, 
including risk assessment models and 
scores from appropriate sources; and’’. 
(b) ESTABLISHMENT
OF CHARGEABLE PREMIUM 
RATES.—Paragraph (1) of section 1308(b) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4015(b)(1)) is amended by inserting before ‘‘; and’’ the 
following: ‘‘, taking into account both the risk identified 
by the applicable flood insurance rate maps and by other 
risk assessment data and tools, including risk assessment 
models and scores from appropriate sources’’. 
(c) EFFECTIVE DATE AND REGULATIONS.— 
(1) EFFECTIVE DATE.—The amendments made 
by subsections (a) and (b) shall be made, and shall 
take effect, upon the expiration of the 36-month pe-
riod beginning on the date of the enactment of this 
Act. 
(2) REGULATIONS.—The Administrator of the 
Federal Emergency Management Agency shall issue 
regulations necessary to implement the amendments 
made by subsections (a) and (b), which shall identify 
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risk assessment data and tools to be used in identi-
fying flood risk and appropriate sources for risk as-
sessment models and scores to be so used. Such reg-
ulations shall be issued not later than the expiration 
of the 36-month period beginning on the date of the 
enactment of this Act and shall take effect upon the 
expiration of such period. 
SEC. 302. APPEALS REGARDING EXISTING FLOOD MAPS. 
(a) IN GENERAL.—Section 1360 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4101) is amended 
by adding at the end the following new subsection: 
‘‘(k) APPEALS OF EXISTING MAPS.— 
‘‘(1) RIGHT TO APPEAL.—Subject to paragraph 
(6), a State or local government, or the owner or les-
see of real property, who has made a formal request 
to the Administrator to update a flood map that the 
Administrator has denied may at any time appeal 
such a denial as provided in this subsection. 
‘‘(2) BASIS FOR APPEAL.—The basis for appeal 
under this subsection shall be the possession of 
knowledge or information that— 
‘‘(A) the base flood elevation level or des-
ignation of any aspect of a flood map is sci-
entifically or technically inaccurate; or 
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‘‘(B) factors exist that mitigate the risk of 
flooding, including ditches, banks, walls, vegeta-
tion, levees, lakes, dams, reservoirs, basin, re-
tention ponds, and other natural or manmade 
topographical features. 
‘‘(3) APPEALS PROCESS.— 
‘‘(A) ADMINISTRATIVE
ADJUDICATION.— 
An appeal under this subsection shall be deter-
mined by a final adjudication on the record, 
and after opportunity for an administrative 
hearing. 
‘‘(B) RIGHTS UPON ADVERSE DECISION.— 
If an appeal pursuant to subparagraph (A) does 
not result in a decision in favor of the State, 
local government, owner, or lessee, such party 
may appeal the adverse decision to the Sci-
entific Resolution Panel provided for in section 
1363A, which shall recommend a non-binding 
decision to the Administrator. 
‘‘(4) RELIEF.— 
‘‘(A) WHOLLY SUCCESSFUL APPEALS.—In 
the case of a successful appeal resulting in a 
policyholder’s property being removed from a 
special flood hazard area, such policyholder may 
cancel the policy at any time within the current 
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policy year, and the Administrator shall provide 
such policyholder a refund in the amount of any 
premiums paid for such policy year, plus any 
premiums paid for flood insurance coverage 
that the policyholder was required to purchase 
or maintain during the 2-year period preceding 
such policy year. 
‘‘(B) PARTIALLY SUCCESSFUL APPEALS.— 
In the case of any appeal in which mitigating 
factors were determined to have reduced, but 
not eliminated, the risk of flooding, the Admin-
istrator shall reduce the amount of flood insur-
ance coverage required to be maintained for the 
property concerned by the ratio of the success-
ful portion of the appeal as compared to the en-
tire appeal. The Administrator shall refund to 
the policyholder any payments made in excess 
of the amount necessary for such new coverage 
amount, effective from the time when the miti-
gating factor was created or the beginning of 
the second policy year preceding the determina-
tion of the appeal, whichever occurred later. 
‘‘(C) ADDITIONAL RELIEF.—The Adminis-
trator may provide additional refunds in excess 
of the amounts specified in subparagraphs (A) 
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and (B) if the Administrator determines that 
such additional amounts are warranted. 
‘‘(5) RECOVERY OF COSTS.—When, incident to 
any appeal which is successful in whole or part re-
garding the designation of the base flood elevation 
or any aspect of the flood map, including elevation 
or designation of a special flood hazard area, the 
community, or the owner or lessee of real property, 
as the case may be, incurs expense in connection 
with the appeal, including services provided by sur-
veyors, engineers, and scientific experts, the Admin-
istrator shall reimburse such individual or commu-
nity for reasonable expenses to an extent measured 
by the ratio of the successful portion of the appeal 
as compared to the entire appeal, but not including 
legal services, in the effecting of an appeal based on 
a scientific or technical error on the part of the Fed-
eral Emergency Management Agency. No reimburse-
ment shall be made by the Administrator in respect 
to any fee or expense payment, the payment of 
which was agreed to be contingent upon the result 
of the appeal. The Administrator may use such 
amounts from the National Flood Insurance Fund 
established under section 1310 as may be necessary 
to carry out this paragraph. 
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‘‘(6) INAPPLICABILITY TO COMMUNITY FLOOD 
MAPS.—This subsection shall not apply with respect 
to any flood map that is in effect pursuant to certifi-
cation under the standards, guidelines, and proce-
dures 
established 
pursuant 
to 
section 
100215(m)(1)(B) of the Biggert-Waters Flood In-
surance 
Reform 
Act 
of 
2012 
(42 
U.S.C. 
4101a(m)(1)(B)). 
‘‘(7) 
GUIDANCE.—The 
Administrator 
shall 
issue guidance to implement this subsection, which 
shall not be subject to the notice and comment re-
quirements under section 553 of title 5, United 
States Code.’’. 
(b) DEADLINE.—The Administrator of the Federal 
Emergency Management Agency shall issue the guidance 
referred to section 1360(k)(7) of the National Flood In-
surance Act of 1968 (42 U.S.C. 4101(k)(7)), as added by 
the amendment made by subsection (a) of this section, not 
later than the expiration of the 6-month period beginning 
on the date of the enactment of this Act. 
SEC. 303. APPEALS AND PUBLICATION OF PROJECTED SPE-
CIAL FLOOD HAZARD AREAS. 
(a) APPEALS.—Section 1363 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4104) is amended— 
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(1) in subsection (b), by striking the second 
sentence and inserting the following: ‘‘Any owner or 
lessee of real property within the community who be-
lieves the owner’s or lessee’s rights to be adversely 
affected by the Administrator’s proposed determina-
tion may appeal such determination to the local gov-
ernment no later than 90 days after the date of the 
second publication.’’; 
(2) in subsection (d), by striking ‘‘subsection 
(e)’’ and inserting ‘‘subsection (f)’’; 
(3) by redesignating subsections (e), (f), and 
(g) as subsections (f), (g), and (h), respectively; and 
(4) by inserting after subsection (d) the fol-
lowing new subsection: 
‘‘(e) DETERMINATION BY ADMINISTRATOR IN THE 
ABSENCE OF APPEALS.—If the Administrator has not re-
ceived any appeals, upon expiration of the 90-day appeal 
period established under subsection (b) of this section the 
Administrator’s proposed determination shall become 
final. The community shall be given a reasonable time 
after the Administrator’s final determination in which to 
adopt local land use and control measures consistent with 
the Administrator’s determination.’’. 
(b) PUBLICATION.—Subsection (a) of section 1363 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 
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4104(a)) is amended by striking ‘‘in the Federal Reg-
ister’’. 
(c) INAPPLICABILITY TO PRIVATE AND COMMUNITY 
FLOOD MAPS.—Section 1363 of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4104), as amended by the 
preceding provisions of this section, is further amended 
by adding at the end the following new subsection: 
‘‘(i) 
INAPPLICABILITY
TO
COMMUNITY
FLOOD 
MAPS.—This section shall not apply with respect to any 
flood map that is in effect pursuant to certification under 
the standards, guidelines, and procedures established pur-
suant to section 100215(m)(1) of the Biggert-Waters 
Flood Insurance Reform Act of 2012 (42 U.S.C. 
4101a(m)(1)), which shall include procedures for pro-
viding notification and appeal rights to individuals within 
the communities of the proposed flood elevation deter-
minations.’’. 
SEC. 304. COMMUNICATION AND OUTREACH REGARDING 
MAP CHANGES. 
Paragraph (1) of section 100216(d) of the Biggert- 
Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 
4101b(d)(1)) is amended— 
(1) in subparagraph (B), by inserting ‘‘max-
imum’’ before ‘‘30-day period’’; and 
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(2) in subparagraph (C), by inserting ‘‘max-
imum’’ before ‘‘30-day period’’. 
TITLE 
IV—PROTECTING 
CON-
SUMERS 
AND 
INDIVIDUALS 
THROUGH 
IMPROVED 
MITI-
GATION 
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 
(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-
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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 
Insurance 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-
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 de-
termination of whether the Program has collected 
revenue sufficient to cover the administrative ex-
penses 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 
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reporting period, and an overall assessment of the fi-
nancial 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 
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 
expected claims payments for the reporting pe-
riod. 
‘‘(4) QUARTERLY REPORTS.—During each fiscal 
year, on a calendar quarterly basis, the Secretary 
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shall cause to be published in the Federal Register 
or comparable method, with notice to the Committee 
on Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate, information which shall 
specify— 
‘‘(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 report is submitted; 
‘‘(B) the types of policies insured, cat-
egorized by risk; 
‘‘(C) any significant changes between ac-
tual and projected claim activity; 
‘‘(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, 
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lotter on DSKBCFDHB2PROD with BILLS
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 
identified 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 
fiscal year 2018, or on the last day of the first full 
calendar quarter following the enactment of the 21st 
Century Flood Reform Act, whichever occurs later.’’. 
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 Adminis-
trator shall impose and collect a non-refundable an-
nual surcharge, in the amount provided in sub-
section (b), on all policies for flood insurance cov-
erage under the National Flood Insurance Program 
that are newly issued or renewed after the date of 
the enactment of this section’’; and 
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(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 sub-
section (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. 
‘‘(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 property 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 
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insurance coverage under the National Flood Insurance 
Act of 1968 that are newly issued or renewed after the 
expiration 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’’; 
(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 sin-
gle annual, uniform rate of assessment for all 
individual policyholders.’’; and 
(3) in subsection (d)— 
(A) by striking paragraph (1) and insert-
ing the following new paragraph: 
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‘‘(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-
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’’. 
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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 amend-
ed— 
(1) in subsection (a)— 
(A) by striking paragraph (7); and 
(B) 
by 
redesignating 
paragraphs 
(8) 
through (15) as paragraphs (7) through (14), 
respectively; and 
(2) by adding at the end the following new sub-
section: 
‘‘(d) MULTIPLE-LOSS PROPERTIES.— 
‘‘(1) DEFINITIONS.—As used in this title: 
‘‘(A) 
MULTIPLE-LOSS
PROPERTY.—The 
term ‘multiple-loss property’ means any prop-
erty that is a repetitive-loss property, a severe 
repetitive-loss property, or an extreme repet-
itive-loss property. 
‘‘(B) REPETITIVE-LOSS
PROPERTY.—The 
term ‘repetitive-loss property’ means a struc-
ture 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. 
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‘‘(C) SEVERE
REPETITIVE-LOSS
PROP-
ERTY.—The term ‘severe repetitive-loss prop-
erty’ means a structure that has incurred flood 
damage 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-
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. 
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‘‘(2) TREATMENT OF CLAIMS BEFORE COMPLI-
ANCE WITH STATE AND LOCAL REQUIREMENTS.— 
The Administrator shall not consider claims that oc-
curred before a structure was made compliant with 
State and local floodplain management requirements 
for purposes of determining a structure’s status as 
a multiple-loss property.’’. 
(b) PREMIUM ADJUSTMENT TO REFLECT CURRENT 
FLOOD RISK.— 
(1) IN
GENERAL.—Section 1308 of the Na-
tional 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: 
‘‘(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 re-
flected 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 
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force on the date of the enactment of this Act for 
properties described 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 
payment for flood loss under coverage made 
available this title that occurred after the date 
of enactment of this Act.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
1307(g)(2) of the National Flood Insurance Act of 
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)— 
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lotter on DSKBCFDHB2PROD with BILLS
(i) by striking subparagraph (C) and 
inserting the following new subparagraph: 
‘‘(C) any extreme repetitive-loss prop-
erty;’’; 
(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: 
‘‘(F) any repetitive-loss property that has 
received a claim payment for flood loss under 
coverage made available this title that occurred 
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 
National Flood Insurance Act of 1968 (42 U.S.C. 
4015(e)) is amended— 
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(A) in paragraph (3), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (4), by striking ‘‘de-
scribed under paragraph (3).’’ and inserting 
‘‘estimated 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 increased 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 pre-
mium rates for properties estimated under section 
1307(a)(1).’’. 
(d) MINIMUM DEDUCTIBLES
FOR CERTAIN MUL-
TIPLE-LOSS PROPERTIES.— 
(1) CLERICAL
AMENDMENT.—The National 
Flood Insurance Act of 1968 is amended— 
(A) by transferring subsection (b) of sec-
tion 1312 (42 U.S.C. 4019(b)) to 1306 (42 
U.S.C. 4013), inserting such subsection at the 
end of such section, and redesignating such 
subsection as subsection (e); and 
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(B) in section 1312 (42 U.S.C. 4019), by 
redesignating subsection (c) as subsection (b). 
(2) CERTAIN
MULTIPLE-LOSS
PROPERTIES.— 
Subsection (e) of section 1306 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4013(e)), as so 
added 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 repet-
itive-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 
on the date of the enactment of this Act, the Adminis-
trator of the Federal Emergency Management Agency 
shall undertake efforts to validate the reasonable accuracy 
of claim history data maintained pursuant to the National 
Flood Insurance 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 
Insurance Act of 1968 (42 U.S.C. 4011(b)(1)) is amended 
by striking ‘‘repetitive loss structures’’ and inserting 
‘‘multiple-loss properties’’. 
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(g) AVAILABILITY OF INSURANCE FOR MULTIPLE- 
LOSS PROPERTIES.— 
(1) IN GENERAL.—The National Flood Insur-
ance Act of 1968 is amended by inserting after sec-
tion 1304 (42 U.S.C. 4011) the following new sec-
tion: 
‘‘SEC. 1304A. AVAILABILITY OF INSURANCE FOR MULTIPLE- 
LOSS PROPERTIES. 
‘‘(a) DATE AND INFORMATION IDENTIFYING CUR-
RENT FLOOD RISK.—The Administrator may provide 
flood insurance coverage under this title for a multiple- 
loss property only if the owner of the property submits 
to the Administrator such data and information necessary 
to determine such property’s current risk of flood, as de-
termined by the Administrator, at the time of application 
for or renewal of such coverage. 
‘‘(b) REFUSAL TO MITIGATE.— 
‘‘(1) IN GENERAL.—Except as provided pursu-
ant 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 re-
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lotter on DSKBCFDHB2PROD with BILLS
fuses 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 excep-
tions to the prohibition under paragraph (1) and to 
allow for appeals to such prohibition.’’. 
(2) EFFECTIVE DATE.—Section 1304A of the 
National 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— 
(1) by striking the subsection designation and 
all that follows through ‘‘Notwithstanding’’ and in-
serting 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 mov-
ing the left margins of such subparagraphs, as so re-
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designated, and the matter following subparagraph 
(B), 2 ems to the right; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) 
INAPPLICABILITY
TO
MULTIPLE-LOSS 
PROPERTIES.—Paragraph (1) shall not apply to 
multiple-loss properties.’’. 
(i) CLEAR
COMMUNICATION
OF
MULTIPLE-LOSS 
PROPERTY 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 
provisions of this Act, is further amended by adding 
at the end the following new paragraph: 
‘‘(2) MULTIPLE-LOSS
PROPERTIES.—Pursuant 
to paragraph (1), the Administrator shall clearly 
communicate to all policyholders for multiple-loss 
properties 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)— 
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(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 
activities that reduce flood damage to extreme repet-
itive-loss properties. 
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)— 
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lotter on DSKBCFDHB2PROD with BILLS
(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 
(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 
following 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)— 
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lotter on DSKBCFDHB2PROD with BILLS
(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)’’; 
(v) by redesignating subparagraphs 
(A) and (B) as paragraphs (1) and (2), re-
spectively; and 
(vi) by moving the left margins of 
subsection (h) and paragraphs (1) and (2), 
all as so redesignated, two ems to the left; 
and 
(5) by inserting after subsection (g) the fol-
lowing new subsections: 
‘‘(h) ALIGNMENT WITH INCREASED COST OF COM-
PLIANCE.—Notwithstanding any provision of law, any 
funds appropriated for assistance under this title may be 
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transferred to the National Flood Insurance Fund estab-
lished under section 1310 (42 U.S.C. 4017) for the pay-
ment 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 repetitive-loss properties. 
‘‘(i) FUNDING.— 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There 
is 
authorized 
to 
be 
appropriated 
$225,000,000 for each fiscal year for flood mitiga-
tion assistance grants. 
‘‘(2) 
AVAILABILITY.—Amounts 
appropriated 
pursuant to this subsection for any fiscal year may 
remain available for obligation until expended.’’. 
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 expira-
tion of the 18-month period beginning on the date of the 
enactment of this subsection, the Administrator may not 
make available any new or renewed coverage for flood in-
surance under this title for any multiple-loss property for 
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lotter on DSKBCFDHB2PROD with BILLS
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. 
The National Flood Insurance Act of 1968 is amend-
ed— 
(1) in section 1305 (42 U.S.C. 4012), as 
amended 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 (g) and notwithstanding any other provi-
sion of this title, in carrying out the fiduciary re-
sponsibility to the National Flood Insurance Pro-
gram under section 1309(e) (42 U.S.C. 4016(e)) 
and to reduce future risks to the National Flood In-
surance Fund, on or after January 1, 2021, the Ad-
ministrator 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 
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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 lo-
cated, of $1,000,000 or more (as such amount 
is adjusted pursuant to clause (i)), subject to 
the following provisions: 
‘‘(i) ADJUSTMENT
OF
AMOUNTS.— 
The dollar amount in the matter of this 
subparagraph that precedes this clause (as 
it may have been previously adjusted) shall 
be adjusted for inflation by the Adminis-
trator upon the expiration of the 5-year pe-
riod beginning upon the enactment of this 
subsection and upon the expiration of each 
successive 5-year period thereafter, in ac-
cordance with an inflationary index se-
lected by the Administrator. 
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‘‘(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 Jan-
uary 1, 2021, the Administrator shall charge risk 
premium rates based on the current risk of flood re-
flected in the flood insurance rate map or com-
parable risk rating metric in effect at the time a pol-
icy is newly issued, unless the newly issued policy 
covers a property with continuous flood insurance 
coverage under this title, or upon the renewal of a 
policy. For all such policy renewals, the Adminis-
trator shall increase the risk premium rate in ac-
cordance with section 1308(e)(2) until the risk pre-
mium rate is equal to the risk of flood reflected in 
the flood insurance rate map or comparable risk rat-
ing metric in effect at the time of renewal. 
‘‘(3) IMPLEMENTATION.—The Administrator 
may implement this subsection without rulemaking, 
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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 Admin-
istrator. 
‘‘(g) AVAILABILITY
OF OTHERWISE PROHIBITED 
FLOOD INSURANCE DURING COUNTER-CYCLICAL MAR-
KET ADJUSTMENT.— 
‘‘(1) AUTHORITY.—Upon the effectiveness of a 
determination under paragraph (2) with respect to a 
geographical area, the Administrator may tempo-
rarily make available, for properties that are de-
scribed in subparagraph (A) or (B), or both, of sub-
section (f)(1), and are located in such area, coverage 
for flood insurance under such Act, notwithstanding 
subsection (f), during the period that begins upon 
such determination and ends upon the termination 
date with respect to such period determined under 
paragraph (7) of this subsection. 
‘‘(2) DETERMINATION
OF
MARKET
CONTRAC-
TION.—A determination under this paragraph for a 
geographical area is a determination, made by the 
State insurance regulator for the affected geo-
graphical area, that the availability or affordability 
of private flood insurance coverage in the United 
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States for properties that are described in subpara-
graph (A) or (B), or both, of subsection (f)(1) and 
are located in such area has contracted significantly, 
made in accordance with the following requirements: 
‘‘(A) The State insurance coordinator has 
determined that there is no evidence that the 
State regulatory or legislative structure has un-
duly hindered the ability of private insurance 
carriers to compete in the State. 
‘‘(B) The State insurance coordinator has 
determined that there is evidence of a low mar-
ket penetration of private flood insurance in the 
State, or a geographic area of the State, where 
private insurance carriers have been allowed to 
participate in the market in a fair process. 
‘‘(C) The State insurance coordinator has 
determined that private insurers have been 
given an opportunity to offer flood insurance 
but have failed to penetrate the markets by 
more than 10 percent of the market share for 
flood insurance. 
‘‘(D) The determination under this para-
graph was made after the State insurance com-
missioner provided private insurance carriers 
and consumers an opportunity to provide infor-
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lotter on DSKBCFDHB2PROD with BILLS
mation regarding the determination under this 
paragraph, which included holding a public 
hearing regarding such determination at which 
to provide such information that was held not 
less than 45 days after public notice of the time 
and place of such hearing was first made avail-
able. 
‘‘(E) The Secretary of the Treasury has 
confirmed the determination under this para-
graph based on the conditions of the insurance 
market for such determination, including the 
geographic area subject to the determination. 
‘‘(3) 
EFFECTIVE
DATE.—A 
determination 
under paragraph (2) shall take effect for purposes of 
paragraph (1) upon receipt by the Administrator of 
written notice of such determination, in accordance 
with such requirements as the Administrator shall 
establish. 
‘‘(4) SURCHARGE.—Any flood insurance cov-
erage made available for a property pursuant to this 
subsection shall be made available at chargeable pre-
mium rates otherwise determined under this title for 
such property, notwithstanding subsection (f), except 
that the Administrator shall impose and collect a 
surcharge for such coverage in an amount equal to 
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lotter on DSKBCFDHB2PROD with BILLS
10 percent of such chargeable premium rate, which 
shall be deposited into the National Flood Insurance 
Fund established under section 1310. 
‘‘(5) CONDITIONS
FOR
TERMINATION.—Upon 
making a determination under paragraph (2), the 
Administrator shall also identify measurable criteria 
for determining when the conditions determined 
under paragraph (2) have ceased to exist for the af-
fected geographical area. 
‘‘(6) NOTICE TO CONGRESS.—Upon making a 
determination under paragraph (2), the Adminis-
trator shall provide, to the Committee on Financial 
Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs 
of the Senate, written notice of such determination, 
the geographical area to which such determination 
applies, and the specific measurable criteria identi-
fied pursuant to paragraph (5). 
‘‘(7) TERMINATION.—The authority to make di-
rect flood insurance coverage available pursuant to 
this subsection shall terminate upon the earlier of— 
‘‘(A) the expiration of the 12-month period 
beginning upon the date that notice under para-
graph (6) is provided to the specified Commit-
tees; or 
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‘‘(B) the occurrence of the conditions iden-
tified pursuant to paragraph (5). 
‘‘(8) RULES OF CONSTRUCTION.— 
‘‘(A) MULTIPLE DETERMINATIONS.—Noth-
ing in this subsection may be construed to pre-
vent multiple or consecutive periods during 
which direct flood insurance coverage may be 
made available pursuant to this subsection for 
properties referred to in subsection (f)(1). 
‘‘(B) EFFECTIVENESS OF POLICIES.—The 
termination pursuant to paragraph (7) of au-
thority to make direct flood insurance coverage 
available pursuant to this subsection may not 
be construed to affect the effectiveness or term 
of coverage of any policy for such coverage pur-
chased pursuant to such authority.’’; 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. 
SEC. 507. ALLOWANCE FOR WRITE YOUR OWN COMPANIES. 
Section 1345 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081), as amended by the preceding pro-
visions of this Act, is further amended by adding at the 
end the following new subsection: 
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‘‘(g) ALLOWANCE FOR WRITE YOUR OWN COMPA-
NIES.—The allowance paid to companies participating in 
the Write Your Own Program (as such term is defined 
in section 1370 (42 U.S.C. 4121)) with respect to a policy 
for flood insurance coverage made available under this 
title shall not be greater than 25 percent of the chargeable 
premium for such coverage.’’. 
SEC. 508. ENFORCEMENT OF MANDATORY PURCHASE RE-
QUIREMENTS. 
(a) PENALTIES.—Paragraph (5) of section 102(f) of 
the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a(f)(5)) is amended by striking ‘‘$2,000’’ and insert-
ing ‘‘$5,000’’. 
(b) INSURED DEPOSITORY INSTITUTIONS.—Subpara-
graph (A) of section 10(i)(2) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1820(i)(2)(A)) is amended by strik-
ing ‘‘date of enactment of the Riegle Community Develop-
ment and Regulatory Improvement Act of 1994 and bien-
nially thereafter for the next 4 years’’ and inserting ‘‘date 
of enactment of the 21st Century Flood Reform Act and 
biennially thereafter’’. 
(c) CREDIT UNIONS.—Subparagraph (A) of section 
204(e)(2) of the Federal Credit Union Act (12 U.S.C. 
1784(e)(2)(A)) is amended by striking ‘‘date of enactment 
of the Riegle Community Development and Regulatory 
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Improvement Act of 1994 and biennially thereafter for the 
next 4 years’’ and inserting ‘‘date of enactment of the 21st 
Century Flood Reform Act and annually thereafter’’. 
(d) 
GOVERNMENT-SPONSORED
ENTERPRISES.— 
Paragraph (4) of section 1319B(a) of the Federal Hous-
ing Enterprises Financial Safety and Soundness Act of 
1992 (12 U.S.C. 4521(a)(4)) is amended, in the matter 
after and below subparagraph (B), by striking ‘‘first, 
third, and fifth annual reports under this subsection re-
quired to be submitted after the expiration of the 1-year 
period beginning on the date of enactment of the Riegle 
Community Development and Regulatory Improvement 
Act of 1994’’ and inserting ‘‘first annual report under this 
subsection required to be submitted after the expiration 
of the 1-year period beginning on the date of enactment 
of the 21st Century Flood Reform Act and every such sec-
ond annual report thereafter’’. 
(e) MANDATORY PURCHASE STUDY; GUIDELINES.— 
(1) STUDY.— 
(A) IN GENERAL.—The Comptroller Gen-
eral of the United States shall conduct a study 
of the implementation and efficacy of the re-
quirements of section 102 of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4012a). 
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Such study shall at minimum consider the fol-
lowing questions: 
(i) How effectively do Federal agen-
cies, regulated lending institutions, and 
Federal entities for lending regulation im-
plement the requirements of section 102 of 
the Flood Disaster Protection Act of 1973? 
(ii) Does the current implementation 
of Flood Disaster Protection Act of 1973 
align with the congressional findings and 
purposes described in section 2(b) of such 
Act (42 U.S.C. 4002)? 
(iii) What, if any, unintended con-
sequences have resulted from the require-
ments and implementation of section 102 
of such Act? 
(B) REPORT.—Not later than the expira-
tion of the 18-month period beginning on the 
date of the enactment of this Act, the Comp-
troller General shall submit a report to the 
Committee on Financial Services of the House 
of Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
regarding the findings and conclusions of the 
study conducted pursuant to this paragraph. 
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