HR 5652 PCS 
surance Act of 1968 (42 U.S.C. 4015(e)) is amended by 
striking ‘‘10 percent’’ and inserting ‘‘20 percent’’. 
(b) PHASE-IN OF RATES FOR CERTAIN PROPERTIES 
IN NEWLY MAPPED AREAS.— 
(1) IN
GENERAL.—Section 1308 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4015) is amended— 
(A) in subsection (a), in the matter pre-
ceding paragraph (1), by inserting ‘‘or notice’’ 
after ‘‘prescribe by regulation’’; 
(B) in subsection (c), by inserting ‘‘and 
subsection (g)’’ before the first comma; and 
(C) by adding at the end the following new 
subsection: 
‘‘(g) 5-YEAR
PHASE-IN
OF
FLOOD
INSURANCE 
RATES FOR CERTAIN PROPERTIES IN NEWLY MAPPED 
AREAS.— 
‘‘(1) 
5-YEAR
PHASE-IN
PERIOD.—Notwith-
standing subsection (c) or any other provision of law 
relating to chargeable risk premium rates for flood 
insurance coverage under this title, in the case of 
any area that was not previously designated as an 
area having special flood hazards and that, pursuant 
to any issuance, revision, updating, or other change 
in flood insurance maps, becomes designated as such 
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HR 5652 PCS 
an area, during the 5-year period that begins, except 
as provided in paragraph (2), upon the date that 
such maps, as issued, revised, updated, or otherwise 
changed, become effective, the chargeable premium 
rate for flood insurance under this title with respect 
to any covered property that is located within such 
area shall be the rate described in paragraph (3). 
‘‘(2) APPLICABILITY TO PREFERRED RISK RATE 
AREAS.—In the case of any area described in para-
graph (1) that consists of or includes an area that, 
as of date of the effectiveness of the flood insurance 
maps for such area referred to in paragraph (1) as 
so issued, revised, updated, or changed, is eligible 
for any reason for preferred risk rate method pre-
miums for flood insurance coverage and was eligible 
for such premiums as of the enactment of the Flood 
Insurance Reform Act of 2012, the 5-year period re-
ferred to in paragraph (1) for such area eligible for 
preferred risk rate method premiums shall begin 
upon the expiration of the period during which such 
area is eligible for such preferred risk rate method 
premiums. 
‘‘(3) PHASE-IN OF FULL ACTUARIAL RATES.— 
With respect to any area described in paragraph (1), 
the chargeable risk premium rate for flood insurance 
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HR 5652 PCS 
under this title for a covered property that is located 
in such area shall be— 
‘‘(A) for the first year of the 5-year period 
referred to in paragraph (1), the greater of— 
‘‘(i) 20 percent of the chargeable risk 
premium rate otherwise applicable under 
this title to the property; and 
‘‘(ii) in the case of any property that, 
as of the beginning of such first year, is el-
igible for preferred risk rate method pre-
miums for flood insurance coverage, such 
preferred risk rate method premium for 
the property; 
‘‘(B) for the second year of such 5-year pe-
riod, 40 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; 
‘‘(C) for the third year of such 5-year pe-
riod, 60 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; 
‘‘(D) for the fourth year of such 5-year pe-
riod, 80 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; and 
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HR 5652 PCS 
‘‘(E) for the fifth year of such 5-year pe-
riod, 100 percent of the chargeable risk pre-
mium rate otherwise applicable under this title 
to the property. 
‘‘(4) COVERED PROPERTIES.—For purposes of 
the subsection, the term ‘covered property’ means 
any residential property occupied by its owner or a 
bona fide tenant as a primary residence.’’. 
(2) REGULATION
OR
NOTICE.—The Adminis-
trator of the Federal Emergency Management Agen-
cy shall issue an interim final rule or notice to im-
plement this subsection and the amendments made 
by this subsection as soon as practicable after the 
date of the enactment of this Act. 
(c) PHASE-IN OF ACTUARIAL RATES FOR CERTAIN 
PROPERTIES.— 
(1) IN GENERAL.—Section 1308(c) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4015(c)) is amended— 
(A) by redesignating paragraph (2) as 
paragraph (7); and 
(B) by inserting after paragraph (1) the 
following new paragraphs: 
‘‘(2) COMMERCIAL PROPERTIES.—Any nonresi-
dential property. 
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HR 5652 PCS 
‘‘(3) SECOND HOMES AND VACATION HOMES.— 
Any residential property that is not the primary res-
idence of any individual. 
‘‘(4) HOMES SOLD TO NEW OWNERS.—Any sin-
gle family property that— 
‘‘(A) has been constructed or substantially 
improved and for which such construction or 
improvement was started, as determined by the 
Administrator, before December 31, 1974, or 
before the effective date of the initial rate map 
published by the Administrator under para-
graph (2) of section 1360(a) for the area in 
which such property is located, whichever is 
later; and 
‘‘(B) is purchased after the effective date 
of 
this 
paragraph, 
pursuant 
to 
section 
345(c)(3)(A) of the Flood Insurance Reform 
Act of 2012. 
‘‘(5) HOMES
DAMAGED
OR
IMPROVED.—Any 
property that, on or after the date of the enactment 
of the Flood Insurance Reform Act of 2012, has ex-
perienced or sustained— 
‘‘(A) substantial flood damage exceeding 
50 percent of the fair market value of such 
property; or 
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HR 5652 PCS 
‘‘(B) substantial improvement exceeding 
30 percent of the fair market value of such 
property. 
‘‘(6) HOMES WITH MULTIPLE CLAIMS.—Any se-
vere repetitive loss property (as such term is defined 
in section 1366(j)).’’. 
(2) TECHNICAL AMENDMENTS.—Section 1308 
of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015) is amended— 
(A) in subsection (c)— 
(i) in the matter preceding paragraph 
(1), by striking ‘‘the limitations provided 
under paragraphs (1) and (2)’’ and insert-
ing ‘‘subsection (e)’’; and 
(ii) in paragraph (1), by striking ‘‘, 
except’’ and all that follows through ‘‘sub-
section (e)’’; and 
(B) in subsection (e), by striking ‘‘para-
graph (2) or (3)’’ and inserting ‘‘paragraph 
(7)’’. 
(3) EFFECTIVE DATE AND TRANSITION.— 
(A) EFFECTIVE DATE.—The amendments 
made by paragraphs (1) and (2) shall apply be-
ginning upon the expiration of the 12-month 
period that begins on the date of the enactment 
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