HR 5652 PCS 
ance program from private market insurance, reinsurance, 
and capital market sources at rates and on terms deter-
mined by the Administrator to be reasonable and appro-
priate in an amount sufficient to maintain the ability of 
the program to pay claims and that minimizes the likeli-
hood that the program will utilize the borrowing authority 
provided under section 1309.’’; 
(4) in section 1346(a) (12 U.S.C. 4082(a))— 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘, or for purposes of securing rein-
surance of insurance coverage provided by the 
program,’’ before ‘‘of any or all of’’; 
(B) in paragraph (1)— 
(i) by striking ‘‘estimating’’ and in-
serting ‘‘Estimating’’; and 
(ii) by striking the semicolon at the 
end and inserting a period; 
(C) in paragraph (2)— 
(i) by striking ‘‘receiving’’ and insert-
ing ‘‘Receiving’’; and 
(ii) by striking the semicolon at the 
end and inserting a period; 
(D) in paragraph (3)— 
(i) by striking ‘‘making’’ and inserting 
‘‘Making’’; and 
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(ii) by striking ‘‘; and’’ and inserting 
a period; 
(E) in paragraph (4)— 
(i) by striking ‘‘otherwise’’ and insert-
ing ‘‘Otherwise’’; and 
(ii) by redesignating such paragraph 
as paragraph (5); and 
(F) by inserting after paragraph (3) the 
following new paragraph: 
‘‘(4) Placing reinsurance coverage on insurance 
provided by such program.’’; and 
(5) 
in 
section 
1370(a)(3) 
(42 
U.S.C. 
4121(a)(3)), by inserting before the semicolon at the 
end the following: ‘‘, is subject to the reporting re-
quirements of the Securities Exchange Act of 1934, 
pursuant to section 13(a) or 15(d) of such Act (15 
U.S.C. 78m(a), 78o(d)), or is authorized by the Ad-
ministrator to assume reinsurance on risks insured 
by the flood insurance program’’. 
(d) ASSESSMENT OF CLAIMS-PAYING ABILITY.— 
(1) ASSESSMENT.—Not later than September 
30 of each year, the Administrator of the Federal 
Emergency Management Agency shall conduct an 
assessment of the claims-paying ability of the na-
tional flood insurance program, including the pro-
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gram’s utilization of private sector reinsurance and 
reinsurance equivalents, with and without reliance 
on borrowing authority under section 1309 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 
4016). In conducting the assessment, the Adminis-
trator shall take into consideration regional con-
centrations of coverage written by the program, peak 
flood zones, and relevant mitigation measures. 
(2) REPORT.—The Administrator shall submit 
a report to the Congress of the results of each such 
assessment, and make such report available to the 
public, not later than 30 days after completion of 
the assessment. 
SEC. 350. FEMA ANNUAL REPORT ON INSURANCE PRO-
GRAM. 
Section 1320 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4027) is amended— 
(1) in the section heading, by striking ‘‘REPORT 
TO THE PRESIDENT’’ and inserting ‘‘ANNUAL RE-
PORT TO CONGRESS’’; 
(2) in subsection (a)— 
(A) by striking ‘‘biennially’’; 
(B) by striking ‘‘the President for submis-
sion to’’; and 
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(C) by inserting ‘‘not later than June 30 
of each year’’ before the period at the end; 
(3) in subsection (b), by striking ‘‘biennial’’ and 
inserting ‘‘annual’’; and 
(4) by adding at the end the following new sub-
section: 
‘‘(c) FINANCIAL STATUS OF PROGRAM.—The report 
under this section for each year shall include information 
regarding the financial status of the national flood insur-
ance program under this title, including a description of 
the financial status of the National Flood Insurance Fund 
and current and projected levels of claims, premium re-
ceipts, expenses, and borrowing under the program.’’. 
SEC. 351. MITIGATION ASSISTANCE. 
(a) MITIGATION
ASSISTANCE
GRANTS.—Section 
1366 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4104c) is amended— 
(1) in subsection (a), by striking the last sen-
tence and inserting the following: ‘‘Such financial 
assistance shall be made available— 
‘‘(1) to States and communities in the form of 
grants under this section for carrying out mitigation 
activities; 
‘‘(2) to States and communities in the form of 
grants under this section for carrying out mitigation 
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activities that reduce flood damage to severe repet-
itive loss structures; and 
‘‘(3) to property owners in the form of direct 
grants under this section for carrying out mitigation 
activities that reduce flood damage to individual 
structures for which 2 or more claim payments for 
losses have been made under flood insurance cov-
erage under this title if the Administrator, after con-
sultation with the State and community, determines 
that neither the State nor community in which such 
a structure is located has the capacity to manage 
such grants.’’. 
(2) by striking subsection (b); 
(3) in subsection (c)— 
(A) by striking ‘‘flood risk’’ and inserting 
‘‘multi-hazard’’; 
(B) 
by 
striking 
‘‘provides 
protection 
against’’ and inserting ‘‘examines reduction of’’; 
and 
(C) by redesignating such subsection as 
subsection (b); 
(4) by striking subsection (d); 
(5) in subsection (e)— 
(A) in paragraph (1), by striking the para-
graph designation and all that follows through 
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the end of the first sentence and inserting the 
following: 
‘‘(1) REQUIREMENT OF CONSISTENCY WITH AP-
PROVED
MITIGATION
PLAN.—Amounts 
provided 
under this section may be used only for mitigation 
activities that are consistent with mitigation plans 
that are approved by the Administrator and identi-
fied under subparagraph (4).’’; 
(B) by striking paragraphs (2), (3), and 
(4) and inserting the following new paragraphs: 
‘‘(2) REQUIREMENTS
OF
TECHNICAL
FEASI-
BILITY, COST EFFECTIVENESS, AND INTEREST OF 
NFIF.—The Administrator may approve only mitiga-
tion activities that the Administrator determines are 
technically feasible and cost-effective and in the in-
terest of, and represent savings to, the National 
Flood Insurance Fund. In making such determina-
tions, the Administrator shall take into consideration 
recognized benefits that are difficult to quantify. 
‘‘(3) PRIORITY FOR MITIGATION ASSISTANCE.— 
In providing grants under this section for mitigation 
activities, the Administrator shall give priority for 
funding to activities that the Administrator deter-
mines will result in the greatest savings to the Na-
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