(D) identify and incorporate natural fea-
tures and their associated flood protection bene-
fits into mapping and rates; and 
(E) identify, analyze, and incorporate the 
impact of significant changes to building and 
development throughout any river or costal 
water system, including all tributaries, which 
may impact flooding in areas downstream; and 
(3) provide that such rate maps are developed 
on a watershed basis. 
(c) REPORT.—If, in establishing new standards for 
flood insurance rate maps pursuant to subsection (a) of 
this section, the Administrator does not implement all of 
the recommendations of the Council made under the pro-
posed new mapping standards developed by the Council 
pursuant to section 6(c), upon establishment of the new 
standards the Administrator shall submit a report to the 
Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate specifying which such rec-
ommendations were not adopted and explaining the rea-
sons such recommendations were not adopted. 
(d) IMPLEMENTATION.—The Administrator shall, not 
later than the expiration of the 6-month period beginning 
upon establishment of the new standards for flood insur-
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ance rate maps pursuant to subsection (a) of this section, 
commence use of the new standards and updating of flood 
insurance rate maps in accordance with the new stand-
ards. Not later than the expiration of the 5-year period 
beginning upon the establishment of such new standards, 
the Administrator shall complete updating of all flood in-
surance rate maps in accordance with the new standards, 
subject to the availability of sufficient amounts for such 
activities provided in appropriation Acts. 
SEC. 8. PRIVATIZATION INITIATIVES. 
(a) FEMA AND GAO REPORTS.—Not later than the 
expiration of the 18-month period beginning on the date 
of the enactment of this Act, the Administrator of the 
Federal Emergency Management Agency and the Comp-
troller General of the United States shall each conduct a 
separate study to assess a broad range of options, meth-
ods, and strategies for privatizing the national flood insur-
ance program and shall each 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 with recommendations for the best 
manner to accomplish such privatization. 
(b) PRIVATE RISK-MANAGEMENT INITIATIVES.— 
(1) AUTHORITY.—The Administrator of the 
Federal Emergency Management Agency may carry 
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out such private risk-management initiatives under 
the national flood insurance program as the Admin-
istrator considers appropriate to determine the ca-
pacity of private insurers, reinsurers, and financial 
markets to assist communities, on a voluntary basis 
only, in managing the full range of financial risks 
associated with flooding. 
(2) ASSESSMENT.—Not later than the expira-
tion of the 6-month period beginning on the date of 
the enactment of this Act, the Administrator shall 
assess the capacity of the private reinsurance, cap-
ital, and financial markets by seeking proposals to 
assume a portion of the program’s insurance risk 
and submit to the Congress a report describing the 
response to such request for proposals and the re-
sults of such assessment. 
(c) REINSURANCE.—The National Flood Insurance 
Act of 1968 is amended— 
(1) 
in 
section 
1331(a)(2) 
(42 
U.S.C. 
4051(a)(2)), by inserting ‘‘, including as reinsurance 
of insurance coverage provided by the flood insur-
ance program’’ before ‘‘, on such terms’’; 
(2) 
in 
section 
1332(c)(2) 
(42 
U.S.C. 
4052(c)(2)), by inserting ‘‘or reinsurance’’ after 
‘‘flood insurance coverage’’; 
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(3) in section 1335(a) (42 U.S.C. 4055(a))— 
(A) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) The Director is authorized to secure reinsurance 
coverage of coverage provided by the flood insurance pro-
gram from private market insurance, reinsurance, and 
capital market sources at rates and on terms determined 
by the Director to be reasonable and appropriate in an 
amount sufficient to maintain the ability of the program 
to pay claims and that minimizes the likelihood 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)— 
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(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 
(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 Di-
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rector to assume reinsurance on risks insured by the 
flood insurance program’’. 
SEC. 9. FEMA ANNUAL REPORT ON INSURANCE PROGRAM. 
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 
(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.’’. 
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SEC. 10. MITIGATION ASSISTANCE. 
Subsection (e) of section 1366 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4104c(e)) is amended 
by adding at the end the following new paragraph: 
‘‘(6) ELIGIBILITY
OF
DEMOLITION
AND
RE-
BUILDING
OF
PROPERTIES.—The Administrator 
shall consider as an eligible activity the demolition 
and rebuilding of properties to at least base flood 
levels or higher, if required by the Administrator or 
if required by any State or local ordinance, and in 
accordance with project implementation criteria es-
tablished by the Administrator.’’. 
SEC. 11. TECHNICAL CORRECTIONS. 
(a) FLOOD DISASTER PROTECTION ACT OF 1973.— 
The Flood Disaster Protection Act of 1973 (42 U.S.C. 
4002 et seq.) is amended— 
(1) by striking ‘‘Director’’ each place such term 
appears, except in section 102(f)(3) (42 U.S.C. 
4012a(f)(3)), and inserting ‘‘Administrator’’; and 
(2) in section 201(b) (42 U.S.C. 4105(b)), by 
striking ‘‘Director’s’’ and inserting ‘‘Administra-
tor’s’’. 
(b) NATIONAL FLOOD INSURANCE ACT OF 1968.— 
The National Flood Insurance Act of 1968 (42 U.S.C. 
4001 et seq.) is amended— 
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(1) by striking ‘‘Director’’ each place such term 
appears and inserting ‘‘Administrator’’; and 
(2) in sections 1363 (42 U.S.C. 4104), by strik-
ing ‘‘Director’s’’ each place such term appears and 
inserting ‘‘Administrator’s’’. 
(c) FEDERAL FLOOD INSURANCE ACT OF 1956.— 
Section 15(e) of the Federal Flood Insurance Act of 1956 
(42 U.S.C. 2414(e)) is amended by striking ‘‘Director’’ 
each place such term appears and inserting ‘‘Adminis-
trator’’. 
SEC. 12. COMMUNITY BUILDING 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 ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(26) to supplement 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-
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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; 
‘‘(ii) in the case of a building code en-
forcement department serving an area with 
a population of between 20,001 and 
50,000, equal to not less than 25 percent 
of the total amount of any funds made 
available under this title that are used 
under this paragraph; and 
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‘‘(iii) in the case of a building code 
enforcement department serving an area 
with a population of less than 20,000, 
equal to not less than 12.5 percent of the 
total amount of any funds made available 
under this title that are used under this 
paragraph; 
except that the Secretary may waive the match-
ing fund requirements under this subparagraph, 
in whole or in part, based upon the level of eco-
nomic distress of the jurisdiction in which is lo-
cated the local building code enforcement de-
partment that is using amounts for purposes 
under this paragraph, and shall waive such 
matching fund requirements in whole for any 
recipient jurisdiction that has dedicated all 
building code permitting fees to the conduct of 
local building code enforcement; and 
‘‘(B) any building code enforcement de-
partment using funds made available under this 
title for purposes under this paragraph shall 
empanel a code administration and enforcement 
team consisting of at least 1 full-time building 
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code enforcement officer, a city planner, and a 
health planner or similar officer.’’. 
Æ 
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