IB 
Union Calendar No. 404 
114TH CONGRESS 
2D SESSION 
H. R. 2901 
[Report No. 114–524] 
To amend the Flood Disaster Protection Act of 1973 to require that certain 
buildings and personal property be covered by flood insurance, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 25, 2015 
Mr. ROSS (for himself and Mr. MURPHY of Florida) introduced the following 
bill; which was referred to the Committee on Financial Services 
APRIL 26, 2016 
Additional sponsors: Mr. JOLLY, Mr. EMMER of Minnesota, Mr. POSEY, Mr. 
NEUGEBAUER, Mr. PITTENGER, Mr. MULVANEY, Mr. HILL, Mrs. WAG-
NER, Mr. HUIZENGA of Michigan, Mr. BARR, Mr. KING of New York, Mr. 
LUCAS, Mr. MARINO, Mr. ZINKE, Mr. FORTENBERRY, Mr. MACARTHUR, 
Mr. PALAZZO, Mr. WILLIAMS, Mr. SCALISE, Mr. SMITH of Texas, Mr. 
COFFMAN, Mr. ROYCE, Mr. MESSER, Mr. SHERMAN, Mr. BILIRAKIS, Mr. 
HULTGREN, Mr. ROTHFUS, Mr. ASHFORD, Mr. JOHNSON of Ohio, Mr. 
PERLMUTTER, Mr. RICE
of South Carolina, Mr. ROKITA, Mr. 
MOOLENAAR, Ms. MOORE, Mr. HECK of Washington, Mr. VARGAS, Mrs. 
CAROLYN B. MALONEY of New York, Mrs. BUSTOS, Ms. CASTOR of Flor-
ida, Mr. BRENDAN F. BOYLE of Pennsylvania, Mr. CAPUANO, Mr. KIL-
DEE, and Mr. BOUSTANY 
APRIL 26, 2016 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 25, 2015] 
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
A BILL 
To amend the Flood Disaster Protection Act of 1973 to 
require that certain buildings and personal property be 
covered by flood insurance, and for other purposes. 
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6652
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Flood Insurance Market 
Parity and Modernization Act’’. 
SEC. 2. PRIVATE FLOOD INSURANCE. 
(a) MANDATORY PURCHASE REQUIREMENT.— 
(1) AMOUNT AND TERM OF COVERAGE.—Section 
102 of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a) is amended by striking ‘‘Sec. 102. (a)’’ 
and all that follows through the end of subsection (a) 
and inserting the following: 
‘‘SEC. 102. (a) AMOUNT AND TERM OF COVERAGE.— 
After the expiration of sixty days following the date of en-
actment of this Act, no Federal officer or agency shall ap-
prove any financial assistance for acquisition or construc-
tion purposes for use in any area that has been identified 
by the Administrator as an area having special flood haz-
ards and in which the sale of flood insurance has been made 
available under the National Flood Insurance Act of 1968, 
unless the building or mobile home and any personal prop-
erty to which such financial assistance relates is covered 
by flood insurance: Provided, That the amount of flood in-
surance (1) in the case of Federal flood insurance, is at 
least equal to the development or project cost of the building, 
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6203
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
mobile home, or personal property (less estimated land 
cost), the outstanding principal balance of the loan, or the 
maximum limit of Federal flood insurance coverage made 
available with respect to the particular type of property, 
whichever is less; or (2) in the case of private flood insur-
ance, is at least equal to the development or project cost 
of the building, mobile home, or personal property (less esti-
mated land cost), the outstanding principal balance of the 
loan, or the maximum limit of Federal flood insurance cov-
erage made available with respect to the particular type of 
property, whichever is less: Provided further, That if the 
financial assistance provided is in the form of a loan or 
an insurance or guaranty of a loan, the amount of flood 
insurance required need not exceed the outstanding prin-
cipal balance of the loan and need not be required beyond 
the term of the loan. The requirement of maintaining flood 
insurance shall apply during the life of the property, re-
gardless of transfer of ownership of such property.’’. 
(2) REQUIREMENT
FOR
MORTGAGE
LOANS.— 
Subsection (b) of section 102 of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4012a(b)) is 
amended— 
(A) by striking the subsection designation 
and all that follows through the end of para-
graph (5) and inserting the following: 
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6203
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
‘‘(b) REQUIREMENT FOR MORTGAGE LOANS.— 
‘‘(1) REGULATED LENDING INSTITUTIONS.—Each 
Federal entity for lending regulation (after consulta-
tion and coordination with the Financial Institutions 
Examination Council established under the Federal 
Financial Institutions Examination Council Act of 
1974) shall by regulation direct regulated lending in-
stitutions not to make, increase, extend, or renew any 
loan secured by improved real estate or a mobile home 
located or to be located in an area that has been iden-
tified by the Administrator as an area having special 
flood hazards and in which flood insurance has been 
made available under the National Flood Insurance 
Act of 1968, unless the building or mobile home and 
any personal property securing such loan is covered 
for the term of the loan by flood insurance: Provided, 
That the amount of flood insurance (A) in the case 
of Federal flood insurance, is at least equal to the out-
standing principal balance of the loan or the max-
imum limit of Federal flood insurance coverage made 
available with respect to the particular type of prop-
erty, whichever is less; or (B) in the case of private 
flood insurance, is at least equal to the outstanding 
principal balance of the loan or the maximum limit 
of Federal flood insurance coverage made available 
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6203
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
with respect to the particular type of property, which-
ever is less. 
‘‘(2) FEDERAL AGENCY LENDERS.— 
‘‘(A) IN GENERAL.—A Federal agency lend-
er may not make, increase, extend, or renew any 
loan secured by improved real estate or a mobile 
home located or to be located in an area that has 
been identified by the Administrator as an area 
having special flood hazards and in which flood 
insurance has been made available under the Na-
tional Flood Insurance Act of 1968, unless the 
building or mobile home and any personal prop-
erty securing such loan is covered for the term of 
the loan by flood insurance in accordance with 
paragraph (1). Each Federal agency lender may 
issue any regulations necessary to carry out this 
paragraph. Such regulations shall be consistent 
with and substantially identical to the regula-
tions issued under paragraph (1). 
‘‘(B) REQUIREMENT TO ACCEPT FLOOD IN-
SURANCE.—Each Federal agency lender shall ac-
cept flood insurance as satisfaction of the flood 
insurance coverage requirement under subpara-
graph (A) if the flood insurance coverage meets 
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6203
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
the requirements for coverage under that sub-
paragraph. 
‘‘(3) 
GOVERNMENT-SPONSORED
ENTERPRISES 
FOR HOUSING.—The Federal National Mortgage Asso-
ciation and the Federal Home Loan Mortgage Cor-
poration shall implement procedures reasonably de-
signed to ensure that, for any loan that is— 
‘‘(A) secured by improved real estate or a 
mobile home located in an area that has been 
identified, at the time of the origination of the 
loan or at any time during the term of the loan, 
by the Administrator as an area having special 
flood hazards and in which flood insurance is 
available under the National Flood Insurance 
Act of 1968, and 
‘‘(B) purchased or guaranteed by such enti-
ty, 
the building or mobile home and any personal prop-
erty securing the loan is covered for the term of the 
loan by flood insurance in the amount provided in 
paragraph (1). The Federal National Mortgage Asso-
ciation and the Federal Home Loan Mortgage Cor-
poration shall accept flood insurance as satisfaction 
of the flood insurance coverage requirement under 
paragraph (1) if the flood insurance coverage pro-
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6203
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
vided meets the requirements for coverage under that 
paragraph and any requirements established by the 
Federal National Mortgage Association or the Federal 
Home Loan Corporation, respectively, relating to the 
financial strength of private insurance companies 
from which the Federal National Mortgage Associa-
tion or the Federal Home Loan Mortgage Corporation 
will accept private flood insurance, provided that 
such requirements shall not affect or conflict with any 
State law, regulation, or procedure concerning the 
regulation of the business of insurance. 
‘‘(4) APPLICABILITY.— 
‘‘(A) EXISTING COVERAGE.—Except as pro-
vided in subparagraph (B), paragraph (1) shall 
apply on the date of enactment of the Riegle 
Community Development and Regulatory Im-
provement Act of 1994. 
‘‘(B) NEW COVERAGE.—Paragraphs (2) and 
(3) shall apply only with respect to any loan 
made, increased, extended, or renewed after the 
expiration of the 1-year period beginning on the 
date of enactment of the Riegle Community De-
velopment and Regulatory Improvement Act of 
1994. Paragraph (1) shall apply with respect to 
any loan made, increased, extended, or renewed 
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6203
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
by any lender supervised by the Farm Credit 
Administration only after the expiration of the 
period under this subparagraph. 
‘‘(C) CONTINUED
EFFECT
OF
REGULA-
TIONS.—Notwithstanding any other provision of 
this subsection, the regulations to carry out 
paragraph (1), as in effect immediately before 
the date of enactment of the Riegle Community 
Development and Regulatory Improvement Act 
of 1994, shall continue to apply until the regula-
tions issued to carry out paragraph (1) as 
amended by section 522(a) of such Act take ef-
fect. 
‘‘(5) RULE OF CONSTRUCTION.—Except as other-
wise specified, any reference to flood insurance in this 
section shall be considered to include Federal flood in-
surance and private flood insurance. Nothing in this 
subsection shall be construed to supersede or limit the 
authority of a Federal entity for lending regulation, 
the Federal Housing Finance Agency, a Federal agen-
cy lender, the Federal National Mortgage Association, 
or the Federal Home Loan Mortgage Corporation to 
establish requirements relating to the financial 
strength of private insurance companies from which 
the entity or agency will accept private flood insur-
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6203
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
ance, provided that such requirements shall not affect 
or conflict with any State law, regulation, or proce-
dure concerning the regulation of the business of in-
surance.’’; and 
(B) by striking paragraph (7) and inserting 
the following new paragraph: 
‘‘(7) DEFINITIONS.—In this section: 
‘‘(A) FLOOD INSURANCE.—The term ‘flood 
insurance’ means— 
‘‘(i) Federal flood insurance; and 
‘‘(ii) private flood insurance. 
‘‘(B) FEDERAL
FLOOD
INSURANCE.—the 
term ‘Federal flood insurance’ means an insur-
ance policy made available under the National 
Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
seq.). 
‘‘(C) PRIVATE
FLOOD
INSURANCE.—The 
term ‘private flood insurance’ means an insur-
ance policy that— 
‘‘(i) is issued by an insurance com-
pany that is— 
‘‘(I) licensed, admitted, or other-
wise approved to engage in the busi-
ness of insurance in the State in which 
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6203
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
the insured building is located, by the 
insurance regulator of that State; or 
‘‘(II) eligible as a nonadmitted 
insurer to provide insurance in the 
home State of the insured, in accord-
ance with sections 521 through 527 of 
the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (15 
U.S.C. 8201 through 8206); 
‘‘(ii) is issued by an insurance com-
pany that is not otherwise disapproved as a 
surplus lines insurer by the insurance regu-
lator of the State in which the property to 
be insured is located; and 
‘‘(iii) provides flood insurance coverage 
that complies with the laws and regulations 
of that State. 
‘‘(D) STATE.—The term ‘State’ means any 
State of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, Guam, 
the Northern Mariana Islands, the Virgin Is-
lands, and American Samoa.’’. 
(b) EFFECT
OF PRIVATE FLOOD INSURANCE COV-
ERAGE ON CONTINUOUS COVERAGE REQUIREMENTS.—Sec-
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6203
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
tion 1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015) is amended by adding at the end the following: 
‘‘(n) EFFECT OF PRIVATE FLOOD INSURANCE COV-
ERAGE ON CONTINUOUS COVERAGE REQUIREMENTS.—For 
purposes of applying any statutory, regulatory, or adminis-
trative continuous coverage requirement, including under 
section 1307(g)(1), the Administrator shall consider any pe-
riod during which a property was continuously covered by 
private flood insurance (as defined in section 102(b)(7) of 
the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a(b)(7))) to be a period of continuous coverage.’’. 
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6203
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6203
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS
Union Calendar No. 404 
114TH CONGRESS 
2D SESSION 
H. R. 2901 
[Report No. 114–524] 
A BILL 
To amend the Flood Disaster Protection Act of 
1973 to require that certain buildings and per-
sonal property be covered by flood insurance, and 
for other purposes. 
APRIL 26, 2016 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Sep 11 2014 
21:56 Apr 26, 2016
Jkt 059200
PO 00000
Frm 00014
Fmt 6651
Sfmt 6651
E:\BILLS\H2901.RH
H2901
srobinson on DSK5SPTVN1PROD with BILLS