H. R. 3370 
One Hundred Thirteenth Congress 
of the 
United States of America 
AT THE SECOND SESSION 
Begun and held at the City of Washington on Friday, 
the third day of January, two thousand and fourteen 
An Act 
To delay the implementation of certain provisions of the Biggert-Waters Flood 
Insurance Reform Act of 2012, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Homeowner 
Flood Insurance Affordability Act of 2014’’. 
(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. Definitions. 
Sec. 3. Repeal of certain rate increases. 
Sec. 4. Restoration of grandfathered rates. 
Sec. 5. Requirements regarding annual rate increases. 
Sec. 6. Clarification of rates for properties newly mapped into areas with special 
flood hazards. 
Sec. 7. Premiums and reports. 
Sec. 8. Annual premium surcharge. 
Sec. 9. Draft affordability framework. 
Sec. 10. Risk transfer. 
Sec. 11. Monthly installment payment for premiums. 
Sec. 12. Optional high-deductible policies for residential properties. 
Sec. 13. Exclusion of detached structures from mandatory purchase requirement. 
Sec. 14. Accounting for flood mitigation activities in estimates of premium rates. 
Sec. 15. Home improvement fairness. 
Sec. 16. Affordability study and report. 
Sec. 17. Flood insurance rate map certification. 
Sec. 18. Funds to reimburse homeowners for successful map appeals. 
Sec. 19. Flood protection systems. 
Sec. 20. Quarterly reports regarding Reserve Fund ratio. 
Sec. 21. Treatment of floodproofed residential basements. 
Sec. 22. Exemption from fees for certain map change requests. 
Sec. 23. Study of voluntary community-based flood insurance options. 
Sec. 24. Designation of flood insurance advocate. 
Sec. 25. Exceptions to escrow requirement for flood insurance payments. 
Sec. 26. Flood mitigation methods for buildings. 
Sec. 27. Mapping of non-structural flood mitigation features. 
Sec. 28. Clear communications. 
Sec. 29. Protection of small businesses, non-profits, houses of worship, and resi-
dences. 
Sec. 30. Mapping. 
Sec. 31. Disclosure. 
SEC. 2. DEFINITIONS. 
For purposes of this title, the following definitions shall apply: 
(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 
Administrator of the Federal Emergency Management Agency. 
(2) NATIONAL
FLOOD
INSURANCE
PROGRAM.—The term 
‘‘National Flood Insurance Program’’ means the program estab-
lished under the National Flood Insurance Act of 1968 (42 
U.S.C. 4001 et seq.).
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SEC. 3. REPEAL OF CERTAIN RATE INCREASES. 
(a) REPEAL.— 
(1) IN GENERAL.—Section 1307(g) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4014(g)) is amended— 
(A) by striking paragraphs (1) and (2); 
(B) in paragraph (3), by striking ‘‘as a result of the 
deliberate choice of the holder of such policy’’ and inserting 
‘‘, unless the decision of the policy holder to permit a 
lapse in flood insurance coverage was as a result of the 
property covered by the policy no longer being required 
to retain such coverage’’; and 
(C) by redesignating paragraphs (3) and (4) as para-
graphs (1) and (2), respectively. 
(2) EFFECTIVE DATE.—The Administrator shall make avail-
able such rate tables, as necessary to implement the amend-
ments made by paragraph (1) as if it were enacted as part 
of the Biggert-Waters Flood Insurance Reform Act of 2012 
(Public Law 112–141; 126 Stat. 957). 
(3) IMPLEMENTATION, COORDINATION, AND GUIDANCE.— 
(A) FACILITATION OF TIMELY REFUNDS.—To ensure the 
participation of Write Your Own companies (as such term 
is defined in section 100202(a) of the Biggert-Waters Flood 
Insurance Reform Act of 2012 (42 U.S.C. 4004(a)), the 
Administrator and the Federal Emergency Management 
Agency shall consult with Write Your Own companies 
throughout the development of guidance and rate tables 
necessary to implement the provisions of and the amend-
ments made by this Act. 
(B) IMPLEMENTATION
AND
GUIDANCE.—The Adminis-
trator shall issue final guidance and rate tables necessary 
to implement the provisions of and the amendments made 
by this Act not later than eight months following the date 
of the enactment of this Act. Write Your Own companies, 
in coordination with the Federal Emergency Management 
Agency, shall have not less than six months but not more 
than eight months following the issuance of such final 
guidance and rate tables to implement the changes required 
by such final guidance and rate tables. 
(4) REFUND OF EXCESS PREMIUM CHARGES COLLECTED.— 
The Administrator shall refund directly to insureds any pre-
miums for flood insurance coverage under the National Flood 
Insurance Program collected in excess of the rates required 
under the provisions of and amendments made by this section. 
To allow for necessary and appropriate implementation of such 
provisions and amendments, any premium changes necessary 
to implement such provisions and amendments, including any 
such premium refund due to policy holders, which shall be 
paid directly by the National Flood Insurance Program, shall 
not be charged or paid to policyholders by the National Flood 
Insurance Program until after the Administrator issues guid-
ance and makes available such rate tables to implement the 
provisions of and amendments made by this Act. 
(b) ASSUMPTION OF POLICIES AT EXISTING PREMIUM RATES.— 
The Administrator shall provide that the purchaser of a property 
that, as of the date of such purchase, is covered under an existing 
flood insurance policy under this title may assume such existing 
policy and coverage for the remainder of the term of the policy
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at the chargeable premium rates under such existing policy. Such 
rates shall continue with respect to such property until the 
implementation of subsection (a). 
SEC. 4. RESTORATION OF GRANDFATHERED RATES. 
(a) IN GENERAL.—Section 1308 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4015) is amended— 
(1) by striking subsection (h); and 
(2) by redesignating subsection (i) as subsection (h). 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect as if enacted as part of the Biggert-Waters 
Flood Insurance Reform Act of 2012 (Public Law 112–141; 126 
Stat. 957). 
SEC. 5. REQUIREMENTS REGARDING ANNUAL RATE INCREASES. 
Section 1308(e) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4015(e)) is amended— 
(1) in the matter preceding paragraph (1), by striking ‘‘, 
the chargeable risk premium rates for flood insurance under 
this title for any properties’’; 
(2) in paragraph (1), by inserting ‘‘the chargeable risk pre-
mium rates for flood insurance under this title for any prop-
erties’’ before ‘‘within any’’; 
(3) in paragraph (2), by inserting ‘‘the chargeable risk pre-
mium rates for flood insurance under this title for any prop-
erties’’ before ‘‘described in’’; 
(4) by redesignating paragraphs (1) and (2), as so amended, 
as paragraphs (3) and (4), respectively; and 
(5) by inserting before paragraph (3), as so redesignated, 
the following new paragraphs: 
‘‘(1) the chargeable risk premium rate for flood insurance 
under this title for any property may not be increased by 
more than 18 percent each year, except— 
‘‘(A) as provided in paragraph (4); 
‘‘(B) in the case of property identified under section 
1307(g); or 
‘‘(C) in the case of a property that— 
‘‘(i) is located in a community that has experienced 
a rating downgrade under the community rating 
system program carried out under section 1315(b); 
‘‘(ii) is covered by a policy with respect to which 
the policyholder has— 
‘‘(I) decreased the amount of the deductible; 
or 
‘‘(II) increased the amount of coverage; or 
‘‘(iii) was misrated; 
‘‘(2) the chargeable risk premium rates for flood insurance 
under this title for any properties initially rated under section 
1307(a)(2) within any single risk classification, excluding prop-
erties for which the chargeable risk premium rate is not less 
than the applicable estimated risk premium rate under section 
1307(a)(1), shall be increased by an amount that results in 
an average of such rate increases for properties within the 
risk classification during any 12-month period of not less than 
5 percent of the average of the risk premium rates for such 
properties within the risk classification upon the commence-
ment of such 12-month period;’’;
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(6) in paragraph (3) (as so redesignated by paragraph (4) 
of this section), by striking ‘‘20 percent’’ and inserting ‘‘15 
percent’’; and 
(7) in paragraph (4) (as so redesignated) by paragraph 
(4) of this section), by striking ‘‘paragraph (1)’’ and inserting 
‘‘paragraph (3)’’. 
SEC. 6. CLARIFICATION OF RATES FOR PROPERTIES NEWLY MAPPED 
INTO AREAS WITH SPECIAL FLOOD HAZARDS. 
Section 1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015), as amended by the preceding provisions of this Act, 
is further amended by adding at the end the following new sub-
section: 
‘‘(i) RATES FOR PROPERTIES NEWLY MAPPED INTO AREAS WITH 
SPECIAL FLOOD HAZARDS.—Notwithstanding subsection (f), the pre-
mium rate for flood insurance under this title that is purchased 
on or after the date of the enactment of this subsection— 
‘‘(1) on a property located in an area not previously des-
ignated as having special flood hazards and that, pursuant 
to any issuance, revision, updating, or other change in a flood 
insurance map, becomes designated as such an area; and 
‘‘(2) where such flood insurance premium rate is calculated 
under subsection (a)(1) of section 1307 (42 U.S.C. 4014(a)(1)), 
shall for the first policy year be the preferred risk premium for 
the property and upon renewal shall be calculated in accordance 
with subsection (e) of this section until the rate reaches the rate 
calculated under subsection (a)(1) of section 1307.’’. 
SEC. 7. PREMIUMS AND REPORTS. 
Section 1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015), as amended by the preceding provisions of this Act, 
is further amended by adding at the end the following new sub-
section: 
‘‘(j) PREMIUMS AND REPORTS.—In setting premium risk rates, 
in addition to striving to achieve the objectives of this title the 
Administrator shall also strive to minimize the number of policies 
with annual premiums that exceed one percent of the total coverage 
provided by the policy. For any policies premiums that exceed 
this one percent threshold, the Administrator shall report such 
exceptions to the Committee on Financial Services of the House 
of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate.’’. 
SEC. 8. ANNUAL PREMIUM SURCHARGE. 
(a) PREMIUM SURCHARGE.—Chapter I of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amended by 
inserting after section 1308 the following new section: 
‘‘SEC. 1308A. PREMIUM SURCHARGE. 
‘‘(a) IMPOSITION
AND COLLECTION.—The Administrator shall 
impose and collect an annual surcharge, in the amount provided 
in subsection (b), on all policies for flood insurance coverage under 
the National Flood Insurance Program that are newly issued or 
renewed after the date of the enactment of this section. Such 
surcharge shall be in addition to the surcharge under section 
1304(b) and any other assessments and surcharges applied to such 
coverage.
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‘‘(b) AMOUNT.—The amount of the surcharge under subsection 
(a) shall be— 
‘‘(1) $25, except as provided in paragraph (2); and 
‘‘(2) $250, in the case of a policy for any property that 
is— 
‘‘(A) a non-residential property; or 
‘‘(B) a residential property that is not the primary 
residence of an individual. 
‘‘(c) TERMINATION.—Subsections (a) and (b) shall cease to apply 
on the date on which the chargeable risk premium rate for flood 
insurance under this title for each property covered by flood insur-
ance under this title, other than properties for which premiums 
are calculated under subsection (e) or (f) of section 1307 or section 
1336 of this Act (42 U.S.C. 4014, 4056) or under section 100230 
of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 
U.S.C. 4014 note), is not less than the applicable estimated risk 
premium rate under section 1307(a)(1) for such property.’’. 
(b) DEPOSIT IN RESERVE FUND.—Subsection (c) of section 1310A 
of the National Flood Insurance Act of 1968 (42 U.S.C. 4017a) 
is amended by adding at the end the following new paragraph: 
‘‘(4) DEPOSIT OF PREMIUM SURCHARGES.—The Administrator 
shall deposit in the Reserve Fund any surcharges collected 
pursuant to section 1308A.’’. 
SEC. 9. DRAFT AFFORDABILITY FRAMEWORK. 
(a) IN GENERAL.—The Administrator shall prepare a draft 
affordability framework that proposes to address, via programmatic 
and regulatory changes, the issues of affordability of flood insurance 
sold under the National Flood Insurance Program, including issues 
identified in the affordability study required under section 100236 
of the Bigger-Waters Flood Insurance Reform Act of 2012 (Public 
Law 112–141; 126 Stat. 957). 
(b) CRITERIA.—In carrying out the requirements under sub-
section (a), the Administrator shall consider the following criteria: 
(1) Accurate communication to consumers of the flood risk 
associated with their properties. 
(2) Targeted assistance to flood insurance policy holders 
based on their financial ability to continue to participate in 
the National Flood Insurance Program. 
(3) Individual or community actions to mitigate the risk 
of flood or lower the cost of flood insurance. 
(4) The impact of increases in risk premium rates on 
participation in the National Flood Insurance Program. 
(5) The impact flood insurance rate map updates have 
on the affordability of flood insurance. 
(c) DEADLINE FOR SUBMISSION.—Not later than 18 months after 
the date on which the Administrator submits the affordability study 
referred to in subsection (a), the Administrator shall submit to 
the full Committee on Banking, Housing, and Urban Affairs and 
the full Committee on Appropriations of the Senate and the full 
Committee on Financial Services and the full Committee on Appro-
priations of the House of Representatives the draft affordability 
framework required under subsection (a). 
(d) INTERAGENCY AGREEMENTS.—The Administrator may enter 
into an agreement with another Federal agency to— 
(1) complete the affordability study referred to in subsection 
(a); or
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(2) prepare the draft affordability framework required 
under subsection (a). 
(e) RULE OF CONSTRUCTION.—Nothing in this section shall be 
construed to provide the Administrator with the authority to provide 
assistance to homeowners based on affordability that was not avail-
able prior to the enactment of the Biggert-Waters Flood Insurance 
Reform Act of 2012 (Public Law 112–141; 126 Stat. 916). 
SEC. 10. RISK TRANSFER. 
Section 1345 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4081) is amended by adding at the end the following new 
subsection: 
‘‘(e) RISK TRANSFER.—The Administrator may secure reinsur-
ance of coverage provided by the flood insurance program from 
the private reinsurance and capital markets at rates and on terms 
determined by the Administrator to be reasonable and appropriate, 
in an amount sufficient to maintain the ability of the program 
to pay claims.’’. 
SEC. 11. MONTHLY INSTALLMENT PAYMENT FOR PREMIUMS. 
(a) IN GENERAL.—Subsection (g) of section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended by 
striking ‘‘either annually or in more frequent installments’’ and 
inserting ‘‘annually or monthly’’. 
(b) IMPLEMENTATION.—The Administrator shall implement the 
requirement under section 1308(g) of the National Flood Insurance 
Act of 1968, as amended by subsection (a), not later than the 
expiration of the 18-month period beginning on the date of the 
enactment of this Act. 
SEC. 12. OPTIONAL HIGH-DEDUCTIBLE POLICIES FOR RESIDENTIAL 
PROPERTIES. 
Section 1306 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4013) is amended by adding at the end the following new 
subsection: 
‘‘(d) OPTIONAL HIGH-DEDUCTIBLE POLICIES
FOR RESIDENTIAL 
PROPERTIES.— 
‘‘(1) AVAILABILITY.—In the case of residential properties, 
the Administrator shall make flood insurance coverage avail-
able, at the option of the insured, that provides for a loss- 
deductible for damage to the covered property in various 
amounts, up to and including $10,000. 
‘‘(2) DISCLOSURE.— 
‘‘(A) FORM.—The Administrator shall provide the 
information described in subparagraph (B) clearly and 
conspicuously on the application form for flood insurance 
coverage or on a separate form, segregated from all unre-
lated information and other required disclosures. 
‘‘(B) INFORMATION.—The information described in this 
subparagraph is— 
‘‘(i) information sufficient to inform the applicant 
of the availability of the coverage option required by 
paragraph (1) to applicants for flood insurance cov-
erage; and 
‘‘(ii) a statement explaining the effect of a loss- 
deductible and that, in the event of an insured loss, 
the insured is responsible out-of-pocket for losses to 
the extent of the deductible selected.’’.
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SEC. 13. EXCLUSION OF DETACHED STRUCTURES FROM MANDATORY 
PURCHASE REQUIREMENT. 
(a) EXCLUSION.—Subsection (c) of section 102 of the Flood Dis-
aster Protection Act of 1973 (42 U.S.C. 4012a(c)) is amended by 
adding at the end the following new paragraph: 
‘‘(3) DETACHED STRUCTURES.—Notwithstanding any other 
provision of this section, flood insurance shall not be required, 
in the case of any residential property, for any structure that 
is a part of such property but is detached from the primary 
residential structure of such property and does not serve as 
a residence.’’. 
(b) RESPA STATEMENT.—Section 5(b) of the Real Estate Settle-
ment Procedures Act of 1974 (12 U.S.C. 2604(b)) is amended— 
(1) in paragraph (14), by inserting before the period at 
the end the following: ‘‘, and the following statement: ‘Although 
you may not be required to maintain flood insurance on all 
structures, you may still wish to do so, and your mortgage 
lender may still require you to do so to protect the collateral 
securing the mortgage. If you choose to not maintain flood 
insurance on a structure, and it floods, you are responsible 
for all flood losses relating to that structure.’ ’’; and 
(2) by transferring and inserting paragraph (14), as so 
amended, after paragraph (13). 
SEC. 14. ACCOUNTING FOR FLOOD MITIGATION ACTIVITIES IN ESTI-
MATES OF PREMIUM RATES. 
Subparagraph (A) of section 1307(a)(1) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(A)) is amended to 
read as follows: 
‘‘(A) based on consideration of— 
‘‘(i) the risk involved and accepted actuarial prin-
ciples; and 
‘‘(ii) the flood mitigation activities that an owner 
or lessee has undertaken on a property, including dif-
ferences in the risk involved due to land use measures, 
floodproofing, flood forecasting, and similar measures, 
and’’. 
SEC. 15. HOME IMPROVEMENT FAIRNESS. 
Section 1307(a)(2)(E)(ii) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4014(a)(2)(E)(ii)) is amended by striking ‘‘30 
percent’’ and inserting ‘‘50 percent’’. 
SEC. 16. AFFORDABILITY STUDY AND REPORT. 
(a) STUDY ISSUES.—Subsection (a) of section 100236 of the 
Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law 
112–141; 126 Stat. 957) is amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the end; 
(2) in paragraph (4), by striking the period at the end 
and inserting a semicolon; and 
(3) by adding at the end the following new paragraphs: 
‘‘(5) options for maintaining affordability if annual pre-
miums for flood insurance coverage were to increase to an 
amount greater than 2 percent of the liability coverage amount 
under the policy, including options for enhanced mitigation 
assistance and means-tested assistance;