risk premium rate for such property by 
such amount; and 
‘‘(ii) if a final determination is made 
that the grounds under subparagraph (A) 
do not exist, the Director shall promptly in-
crease the chargeable risk premium rate for 
such property to the amount established 
pursuant to paragraph (1) and shall collect 
from the property owner the amount nec-
essary to cover the stay of the applicability 
of such increased rates during the pendency 
of the appeal. 
‘‘(D) COSTS.—If the third party hearing an 
appeal under this paragraph is compensated for 
such service, the costs of such compensation shall 
be borne—
‘‘(i) by the owner of the property re-
questing the appeal, if the final determina-
tion in the appeal is that the grounds under 
subparagraph (A) do not exist; and 
‘‘(ii) by the National Flood Mitigation 
Fund, if such final determination is that 
the grounds under subparagraph (A) do 
exist.
‘‘(E) REPORT.—Not later than 6 months 
after the date of the enactment of the Two Floods 
and You Are Out of the Taxpayers’ Pocket Act 
of 2003, the Director shall submit a report to the 
House of Representatives and the Senate describ-
ing the rules, procedures, and administration for 
appeals under this paragraph, which shall be 
submitted together with the report required 
under section 1362(g)(2)(E). 
‘‘(k) DISCRETIONARY ACTIONS IN CASES OF FRAUDU-
LENT CLAIMS.—If the Director determines that a fraudu-
lent claim was made under flood insurance coverage under 
this title for a repetitive claims property, the Director 
may—
‘‘(1) cancel the policy and deny the provision to 
such policyholder of any new flood insurance coverage 
under this title for the property; or 
‘‘(2) refuse to renew the policy with such policy-
holder upon expiration and deny the provision of any 
new flood insurance coverage under this title to such 
policyholder for the property.’’. 
(e) COORDINATION
WITH
STATES
AND
COMMU-
NITIES.—Section 1366 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4104c) is amended by adding at the 
end the following new subsection:
‘‘(m) COORDINATION WITH STATES
AND COMMU-
NITIES.—The Director shall, in consultation and coordina-
tion with States and communities: 
‘‘(1) IDENTIFICATION
OF
REPETITIVE
CLAIMS 
PROPERTIES.—Identify repetitive claims properties 
and properties at risk of becoming repetitive claims 
properties. 
‘‘(2) MANAGEMENT OF 100-YEAR FLOODPLAIN.—
Take such actions as are appropriate to encourage 
and improve participation of owners of properties 
that are not located in areas having special flood haz-
ards but are located within the 100-year floodplain.’’. 
(f) DEFINITION OF REPETITIVE CLAIMS PROPERTY.—
Section 1366 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4104c) is amended by adding at the end the 
following new subsection: 
‘‘(n) DEFINITIONS.—For purposes of this section: 
‘‘(1) 
COMMUNITY.—The 
term 
‘community’ 
means—
‘‘(A) a political subdivision that—
‘‘(i) has zoning and building code ju-
risdiction over a particular area having 
special flood hazards; and 
‘‘(ii) is participating in the national 
flood insurance program; or
‘‘(B) a political subdivision of a State, or 
other authority, that is designated to develop and 
administer a mitigation plan and manage 
projects by political subdivisions, all of which 
meet the requirements of subparagraph (A). 
‘‘(2) REPETITIVE CLAIMS PROPERTY.—The term 
‘repetitive claims property’ means, without regard to 
the ownership of the property, a property with respect 
to which claim payments for losses have been made—
‘‘(A) under flood insurance coverage under 
this title, 
‘‘(B) on more than one occasion within a 
10-year period, and 
‘‘(C) for which the cumulative value of the 
amount by which such claims exceed the amount 
of any applicable deductible under such coverage 
is $5,000 or more, 
The Director may, by regulation, further define sub-
sets of repetitive claims properties for purposes of sub-
section (e)(4).’’. 
(g) FUNDING.—Section 1367(b) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4104d(b)) is amended—
(1) by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4); and
(2) by striking paragraph (1) and inserting the 
following new paragraphs: 
‘‘(1) in each fiscal year, amounts from the Na-
tional 
Flood 
Insurance 
Fund 
not 
exceeding 
$20,000,000; 
‘‘(2) in each of fiscal years 2004, 2005, 2006, 
2007, and 2008, in addition to amounts under para-
graph (1), amounts from the National Flood Insur-
ance Fund not exceeding $40,000,000, to remain 
available until expended, except that—
‘‘(A) such amounts shall be used only under 
section 1366 for mitigation activities for repet-
itive claims properties (as such term is defined 
in section 1366(n)); and 
‘‘(B) notwithstanding any other provision 
of this title, amounts made available pursuant to 
this paragraph shall not be subject to offsetting 
collections through premium rates for flood in-
surance coverage under this title; and’’. 
SEC. 6. FEMA AUTHORITY TO FUND MITIGATION ACTIVI-
TIES FOR INDIVIDUAL REPETITIVE CLAIMS 
PROPERTIES. 
(a) IN GENERAL.—Chapter I of the National Flood In-
surance Act of 1968 (42 U.S.C. 4011 et seq.) is amended 
by adding at the end the following new section:
‘‘GRANTS FOR REPETITIVE INSURANCE CLAIMS PROPERTIES 
‘‘SEC. 1323. (a) IN GENERAL.—The Director may pro-
vide funding for mitigation actions that reduce flood dam-
ages to repetitive claims properties, but only if the Director 
determines that—
‘‘(1) such activities are in the best interest of the 
National Flood Insurance Fund; and 
‘‘(2) such activities can not be funded under the 
program under section 1366 because—
‘‘(A) the requirements of section 1366(g) are 
not being met by the State or community in 
which the property is located; or 
‘‘(B) the State or community does not have 
the capacity to manage such activities. 
‘‘(b) PRIORITY FOR WORST-CASE PROPERTIES.—In 
determining properties for which funding is to be provided 
under this section, the Director shall give priority based on 
the amount of losses to the National Flood Insurance Fund 
that claims for a property have caused or are reasonably 
expected to cause. 
‘‘(c) DEFINITION.—For purposes of this section, the 
term ‘repetitive claims property’ has the meaning given 
such term in section 1366(n).’’. 
(b) AVAILABILITY OF NATIONAL FLOOD INSURANCE 
FUND AMOUNTS.—Section 1310(a) of the National Flood
graph (2) of section 1360 for the area in which such 
property is located, whichever is later, except that the 
chargeable rate for properties under this paragraph 
shall be subject to the limitation under subsection (e). 
‘‘(2) PROPERTIES REFUSING MITIGATION ASSIST-
ANCE.—Any property for which the Director has 
taken action under section 1362(g)(1) or 1366(i)(1). 
‘‘(3) CERTAIN
LEASED
COASTAL
AND
RIVER 
PROPERTIES.—Any property leased from the Federal 
Government (including residential and nonresidential 
properties) that the Director determines is located on 
the river-facing side of any dike, levee, or other 
riverine flood control structure, or seaward of any 
seawall or other coastal flood control structure.’’. 
(b) INAPPLICABILITY
OF ANNUAL LIMITATIONS
ON 
PREMIUM INCREASES.—Section 1308(e) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(e)) is amend-
ed by striking ‘‘Notwithstanding’’ and inserting ‘‘Except 
with respect to properties described under paragraph (2) 
or (3) of subsection (c) and notwithstanding’’.
SEC. 8. REMOVING REPETITIVE INSURANCE CLAIMS PROP-
ERTIES FROM FEDERAL DISASTER ASSIST-
ANCE RESPONSIBILITY. 
(a) IN GENERAL.—Section 582 of the National Flood 
Insurance Reform Act of 1994 (42 U.S.C. 5154a) is amend-
ed—
(1) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and 
(2) by inserting after subsection (c) the following 
new subsection: 
‘‘(d) UNMITIGATED REPETITIVE INSURANCE CLAIMS 
PROPERTIES.—Notwithstanding any other provision of 
law, no Federal disaster relief assistance made available in 
a flood disaster area may be used to make a payment (in-
cluding any loan assistance payment) for repair, replace-
ment, or restoration for damage to a property located in 
such area if—
‘‘(1) such property is a repetitive claims prop-
erty (as such term is defined in section 1366(n) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 
4104c(o)) or a severe repetitive loss property (as such 
term is defined in section 1362(b) of such Act (42 
U.S.C. 4103(b)); and 
‘‘(2) in accordance with such requirements as the 
Director may establish, mitigation assistance under 
section 1362 or 1366 of the National Flood Insurance
Act of 1968 has been offered to the owner of the prop-
erty, before or after the occurrence of the flood loss 
events, which was refused by the owner.’’. 
(b) EFFECTIVE DATE.—Notwithstanding subsection (f) 
of section 582 of the National Flood Insurance Reform Act 
of 1994 (as so redesignated by paragraph (1)(A) of this sub-
section), the amendment made by paragraph (1) shall apply 
to disasters declared after the date of the enactment of this 
Act. 
SEC. 9. ELECTRONIC DATABASE OF REPETITIVE CLAIMS 
PROPERTIES. 
Section 1364 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4104a) is amended by adding at the end 
the following new subsection: 
‘‘(d) ELECTRONIC DATABASE OF REPETITIVE CLAIMS 
PROPERTIES.—The Director may, if the Director deter-
mines such action is feasible, establish and maintain a 
database identifying by location and address all repetitive 
claims properties (as such term is defined in section 
1366(n)), repetitive loss structures (as such term is defined 
in section 1370), and severe repetitive loss properties (as 
such term is defined in section 1362(b)). If established, the 
Director shall make the database available to the public in 
a format that may be searched electronically. Such a data-
base shall not include any information regarding ownership 
of properties.’’. 
SEC. 10. REPLACEMENT OF MOBILE HOMES ON ORIGINAL 
SITES. 
Section 1315 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4022) is amended by adding at the end 
the following new subsection: 
‘‘(c) REPLACEMENT OF MOBILE HOMES ON ORIGINAL 
SITES.—
‘‘(1) COMMUNITY
PARTICIPATION.—The place-
ment of any mobile home on any site shall not affect 
the eligibility of any community to participate in the 
flood insurance program under this title and the 
Flood Disaster Protection Act of 1973 (notwith-
standing that such placement may fail to comply 
with any elevation or flood damage mitigation re-
quirements), if—
‘‘(A) such mobile home was previously lo-
cated on such site; 
‘‘(B) such mobile home was relocated from 
such site because of flooding that threatened or 
affected such site; and 
‘‘(C) such replacement is conducted not 
later than the expiration of the 180-day period 
that begins upon the subsidence (in the area of
such site) of the body of water that flooded to a 
level considered lower than flood levels. 
‘‘(2) DEFINITION.—For purposes of this sub-
section, the term ‘mobile home’ has the meaning given 
such term in the law of the State in which the mobile 
home is located.’’.
SEC. 11. REITERATION OF FEMA RESPONSIBILITY TO MAP 
MUDSLIDES. 
As directed in section 1360(b) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4101(b)), the Director of 
the Federal Emergency Management Agency is again di-
rected to accelerate the identification of risk zones within 
flood-prone and mudslide-prone areas, as provided by sub-
section (a)(2) of such section 1360, in order to make known 
the degree of hazard within each such zone at the earliest 
possible date.
Union Calendar No. 152
108TH CONGRESS 
1ST SESSION 
H. R. 253
[Report No. 108–266] 
A BILL 
To amend the National Flood Insurance Act of 
1968 to reduce losses to properties for which re-
petitive flood insurance claim payments have 
been made. 
SEPTEMBER 5, 2003
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed