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full cost of repair or replacement under the replace-
ment cost coverage to more clearly describe such 
coverage to flood insurance policyholders and infor-
mation to be provided by such policyholders relating 
to such coverage, and to avoid providing misleading 
information to such policyholders; 
(3) revise the language in standard flood insur-
ance policies under such program regarding rating 
and coverage descriptions in a manner that is con-
sistent with language used widely in other home-
owners and property and casualty insurance policies, 
including such language regarding classification of 
buildings, basements, crawl spaces, detached ga-
rages, enclosures below elevated buildings, and re-
placement costs; and 
(4) require the use, in connection with flood in-
surance policies, of the supplemental forms devel-
oped pursuant to section 202 of the Bunning-Bereu-
ter-Blumenauer Flood Insurance Reform Act of 
2004 (Public Law 108–264; 118 Stat. 725). 
SEC. 25. AUTHORIZATION OF ADDITIONAL FEMA STAFF. 
Notwithstanding any other provision of law, the Di-
rector of the Federal Emergency Management Agency 
may employ such additional staff as may be necessary to 
carry out all of the responsibilities of the Director pursu-
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ant to this Act and the amendments made by this Act. 
There are authorized to be appropriated to Director such 
sums as may be necessary for costs of employing such ad-
ditional staff. 
SEC. 26. EXTENSION OF DEADLINE FOR FILING PROOF OF 
LOSS. 
(a) IN GENERAL.—Section 1312 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4019) is amend-
ed— 
(1) by inserting ‘‘(a) PAYMENT.—’’ before ‘‘The 
Director’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) FILING DEADLINE FOR PROOF OF LOSS.— 
‘‘(1) IN GENERAL.—In establishing any require-
ments regarding notification, proof, or approval of 
claims for damage to or loss of property which is 
covered by flood insurance made available under this 
title, the Director may not require an insured to no-
tify the Director of such damage or loss, submit a 
claim for such damage or loss, or certify to or sub-
mit proof of such damage or loss, before the expira-
tion of the 180-day period that begins on the date 
that such damage or loss occurred. 
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‘‘(2) EXCEPTIONS.—Notwithstanding any dead-
line established in accordance with paragraph (1), 
the Director may not deny a claim for damage or 
loss described in such paragraph solely for failure to 
meet such deadline if the insured demonstrates any 
good cause for such failure.’’. 
(b) APPLICABILITY.—Subsection (b) of section 1312 
of the National Flood Insurance Act of 1968, as added 
by subsection (a)(2) of this section, shall apply with re-
spect to any claim under which the damage to or loss of 
property occurred on or after the date of the enactment 
of this Act. 
SEC. 27. 5-YEAR EXTENSION OF PROGRAM. 
Section 1319 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4026) is amended by striking ‘‘Sep-
tember 30, 2008’’ and inserting ‘‘September 30, 2013’’. 
SEC. 28. REPORT ON INCLUSION OF BUILDING CODES IN 
FLOODPLAIN MANAGEMENT CRITERIA. 
Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the 
Director of the Federal Emergency Management Agency 
shall conduct a study and submit a report to the Com-
mittee on Financial Services of the House of Representa-
tives and the Committee on Banking, Housing and Urban 
Affairs of the Senate regarding the impact, effectiveness, 
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and feasibility of amending section 1361 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4102) to include 
widely used and nationally recognized building codes as 
part of the floodplain management criteria developed 
under such section, and shall determine— 
(1) the regulatory, financial, and economic im-
pacts of such a building code requirement on home-
owners, States and local communities, local land use 
policies, and the Federal Emergency Management 
Agency; 
(2) the resources required of State and local 
communities to administer and enforce such a build-
ing code requirement; 
(3) the effectiveness of such a building code re-
quirement in reducing flood-related damage to build-
ings and contents; 
(4) the impact of such a building code require-
ment on the actuarial soundness of the National 
Flood Insurance Program; 
(5) the effectiveness of nationally recognized 
codes in allowing innovative materials and systems 
for flood-resistant construction; and 
(6) the feasibility and effectiveness of providing 
an incentive in lower premium rates for flood insur-
ance coverage under such Act for structures meeting 
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whichever of such widely used and nationally recog-
nized building code or any applicable local building 
code provides greater protection from flood damage. 
SEC. 29. STUDY OF ECONOMIC EFFECTS OF CHARGING AC-
TUARIALLY-BASED 
PREMIUM 
RATES 
FOR 
PRE-FIRM STRUCTURES. 
(a) STUDY.—The Director of the Federal Emergency 
Management Agency (in this section referred to as the 
‘‘Director’’) shall conduct a study of the economic effects 
that would result from increasing premium rates for flood 
insurance coverage made available under the national 
flood insurance program for non-primary residences and 
non-residential pre-FIRM structures (as such term is de-
fined in section 578(b) of the National Flood Insurance 
Reform Act of 1994 (42 U.S.C. 4014 note) to the full 
actuarial risk based premium rate determined under sec-
tion 1307(a)(1) of the National Flood Insurance Act of 
1968 for the area in which the property is located. In con-
ducting the study, the Director shall— 
(1) determine each area that would be subject 
to such increased premium rates; and 
(2) for each such area, determine— 
(A) the amount by which premium rates 
would be increased; 
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(B) the number and types of properties af-
fected and the number and types of properties 
covered by flood insurance under this title likely 
to cancel such insurance if the rate increases 
were made; 
(C) the effects that the increased premium 
rates would have on land values and property 
taxes; and 
(D) any other effects that the increased 
premium rates would have on the economy, 
homeowners, and renters of non-primary resi-
dences. 
(b) REPORT.—The Director shall submit a report to 
the Congress describing and explaining the findings of the 
study conducted under this section. The report shall be 
submitted not later than 12 months after the date of the 
enactment of this Act. 
SEC. 30. PROHIBITION ON ENFORCEMENT OF PENALTY AS-
SESSED ON CONDOMINIUM ASSOCIATIONS. 
Notwithstanding any other provision of law, the Di-
rector of the Federal Emergency Management Agency 
shall not apply or enforce any penalty relating to the na-
tional flood insurance program assessed, during 2005 or 
thereafter, on condominium associations that are under-
insured under such program. 
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SEC. 31. REPORT OF ADMINISTRATIVE EXPENSES OF 
WRITE-YOUR-OWN INSURERS; INDEPENDENT 
AUDITS. 
Section 1348 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4084) is amended by adding at the end 
the following new subsections: 
‘‘(c) Any insurance company or other private organi-
zation executing any contract, agreement, or other appro-
priate arrangement with the Director under this part 
shall— 
‘‘(1) annually submit to the Director a record 
of all administrative and operating costs of the pro-
gram undertaken; and 
‘‘(2) biennially submit to the Director an inde-
pendent audit of the program undertaken that is 
conducted by a certified public accountant to ensure 
that payments made are proper and in accordance 
with this Act. 
‘‘(d) The Director shall review the records and audits 
submitted under paragraphs (1) and (2) of subsection (c) 
to determine if such payments are reasonable and if the 
system by which the Director makes payments to an insur-
ance company or other private organization under this 
part should be revised.’’. 
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