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‘‘(A) believes there are property owners or les-
sees in the community who are unaware of such pe-
riod for appeals; and 
‘‘(B) will utilize the extension under this para-
graph to notify property owners or lessees who are 
affected by the proposed flood elevation determina-
tions of the period for appeals and the opportunity 
to appeal the determinations proposed by the Ad-
ministrator.’’. 
(c) APPLICABILITY.—The amendments made by sub-
sections (a) and (b) shall apply with respect to any flood 
elevation determination for any area in a community that 
has not, as of the date of the enactment of this Act, been 
issued a Letter of Final Determination for such deter-
mination under the flood insurance map modernization 
process. 
SEC. 365. RESERVE FUND. 
(a) ESTABLISHMENT.—Chapter I of the National 
Flood Insurance Act of 1968 is amended by inserting after 
section 1310 (42 U.S.C. 4017) the following new section: 
‘‘SEC. 1310A. RESERVE FUND. 
‘‘(a) ESTABLISHMENT OF RESERVE FUND.—In car-
rying out the flood insurance program authorized by this 
title, the Administrator shall establish in the Treasury of 
the United States a National Flood Insurance Reserve 
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Fund (in this section referred to as the ‘Reserve Fund’) 
which shall— 
‘‘(1) be an account separate from any other ac-
counts or funds available to the Administrator; and 
‘‘(2) be available for meeting the expected fu-
ture obligations of the flood insurance program. 
‘‘(b) RESERVE RATIO.—Subject to the phase-in re-
quirements under subsection (d), the Reserve Fund shall 
maintain a balance equal to— 
‘‘(1) 1 percent of the sum of the total potential 
loss exposure of all outstanding flood insurance poli-
cies in force in the prior fiscal year; or 
‘‘(2) such higher percentage as the Adminis-
trator determines to be appropriate, taking into con-
sideration any circumstance that may raise a signifi-
cant risk of substantial future losses to the Reserve 
Fund. 
‘‘(c) MAINTENANCE OF RESERVE RATIO.— 
‘‘(1) IN
GENERAL.—The Administrator shall 
have the authority to establish, increase, or decrease 
the amount of aggregate annual insurance premiums 
to be collected for any fiscal year necessary— 
‘‘(A) to maintain the reserve ratio required 
under subsection (b); and 
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‘‘(B) to achieve such reserve ratio, if the 
actual balance of such reserve is below the 
amount required under subsection (b). 
‘‘(2) CONSIDERATIONS.—In exercising the au-
thority under paragraph (1), the Administrator shall 
consider— 
‘‘(A) the expected operating expenses of 
the Reserve Fund; 
‘‘(B) the insurance loss expenditures under 
the flood insurance program; 
‘‘(C) any investment income generated 
under the flood insurance program; and 
‘‘(D) any other factor that the Adminis-
trator determines appropriate. 
‘‘(3) LIMITATIONS.—In exercising the authority 
under paragraph (1), the Administrator shall be 
subject to all other provisions of this Act, including 
any provisions relating to chargeable premium rates 
and annual increases of such rates. 
‘‘(d) PHASE-IN REQUIREMENTS.—The phase-in re-
quirements under this subsection are as follows: 
‘‘(1) IN
GENERAL.—Beginning in fiscal year 
2012 and not ending until the fiscal year in which 
the ratio required under subsection (b) is achieved, 
in each such fiscal year the Administrator shall 
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place in the Reserve Fund an amount equal to not 
less than 7.5 percent of the reserve ratio required 
under subsection (b). 
‘‘(2) AMOUNT SATISFIED.—As soon as the ratio 
required under subsection (b) is achieved, and except 
as provided in paragraph (3), the Administrator 
shall not be required to set aside any amounts for 
the Reserve Fund. 
‘‘(3) EXCEPTION.—If at any time after the 
ratio required under subsection (b) is achieved, the 
Reserve Fund falls below the required ratio under 
subsection (b), the Administrator shall place in the 
Reserve Fund for that fiscal year an amount equal 
to not less than 7.5 percent of the reserve ratio re-
quired under subsection (b). 
‘‘(e) LIMITATION ON RESERVE RATIO.—In any given 
fiscal year, if the Administrator determines that the re-
serve ratio required under subsection (b) cannot be 
achieved, the Administrator shall submit a report to the 
Congress that— 
‘‘(1) describes and details the specific concerns 
of the Administrator regarding such consequences; 
‘‘(2) demonstrates how such consequences 
would harm the long-term financial soundness of the 
flood insurance program; and 
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‘‘(3) indicates the maximum attainable reserve 
ratio for that particular fiscal year. 
‘‘(f) AVAILABILITY OF AMOUNTS.—The reserve ratio 
requirements under subsection (b) and the phase-in re-
quirements under subsection (d) shall be subject to the 
availability of amounts in the National Flood Insurance 
Fund for transfer under section 1310(a)(10), as provided 
in section 1310(f).’’. 
(b) FUNDING.—Subsection (a) of section 1310 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 
4017(a)), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following 
new paragraph: 
‘‘(10) for transfers to the National Flood Insur-
ance Reserve Fund under section 1310A, in accord-
ance with such section.’’. 
SEC. 366. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUT-
REACH ACTIVITIES AND COMMUNITY BUILD-
ING CODE ADMINISTRATION GRANTS. 
Section 105(a) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5305(a)) is amended— 
(1) in paragraph (24), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (25), by striking the period at 
the end and inserting a semicolon; and 
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(3) by adding at the end the following new 
paragraphs: 
‘‘(26) supplementing existing State or local 
funding for administration of building code enforce-
ment by local building code enforcement depart-
ments, including for increasing staffing, providing 
staff training, increasing staff competence and pro-
fessional qualifications, and supporting individual 
certification or departmental accreditation, and for 
capital expenditures specifically dedicated to the ad-
ministration of the building code enforcement de-
partment, except that, to be eligible to use amounts 
as provided in this paragraph— 
‘‘(A) a building code enforcement depart-
ment shall provide matching, non-Federal funds 
to be used in conjunction with amounts used 
under this paragraph in an amount— 
‘‘(i) in the case of a building code en-
forcement department serving an area with 
a population of more than 50,000, equal to 
not less than 50 percent of the total 
amount of any funds made available under 
this title that are used under this para-
graph; 
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