H. R. 3474—103
ing to a loan committed by another regulated lending institution
that previously held the loan.
‘‘(8) DEPOSIT OF PENALTIES.—Any penalties collected under
this subsection shall be paid into the National Flood Mitigation
Fund under section 1367 of the National Flood Insurance Act
of 1968.
‘‘(9) ADDITIONAL PENALTIES.—Any penalty under this sub-
section shall be in addition to any civil remedy or criminal
penalty otherwise available.
‘‘(10) STATUTE
OF
LIMITATIONS.—No penalty may be
imposed under this subsection after the expiration of the 4-
year period beginning on the date of the occurrence of the
violation for which the penalty is authorized under this
subsection.
‘‘(g) OTHER ACTIONS TO REMEDY PATTERN
OF NONCOMPLI-
ANCE.—
‘‘(1) AUTHORITY OF FEDERAL ENTITIES FOR LENDING REGULA-
TION.—A Federal entity for lending regulation may require
a regulated lending institution to take such remedial actions
as are necessary to ensure that the regulated lending institution
complies with the requirements of the national flood insurance
program if the Federal agency for lending regulation makes
a determination under paragraph (2) regarding the regulated
lending institution.
‘‘(2) DETERMINATION
OF
VIOLATIONS.—A determination
under this paragraph shall be a finding that—
‘‘(A) the regulated lending institution has engaged in
a pattern and practice of noncompliance in violation of
the regulations issued pursuant to subsection (b), (d), or
(e) or the notice requirements under section 1364 of the
National Flood Insurance Act of 1968; and
‘‘(B) the regulated lending institution has not dem-
onstrated measurable improvement in compliance despite
the assessment of civil monetary penalties under subsection
(f).’’.
SEC. 526. FEES FOR DETERMINING APPLICABILITY OF FLOOD INSUR-
ANCE PURCHASE REQUIREMENTS.
Section 102 of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a) as amended by the preceding provisions of this title,
is further amended by adding at the end the following new sub-
section:
‘‘(h) FEE FOR DETERMINING LOCATION.—Notwithstanding any
other Federal or State law, any person who makes a loan secured
by improved real estate or a mobile home or any servicer for
such a loan may charge a reasonable fee for the costs of determining
whether the building or mobile home securing the loan is located
in an area having special flood hazards, but only in accordance
with the following requirements:
‘‘(1) BORROWER FEE.—The borrower under such a loan may
be charged the fee, but only if the determination—
‘‘(A) is made pursuant to the making, increasing,
extending, or renewing of the loan that is initiated by
the borrower;
‘‘(B) is made pursuant to a revision or updating under
section 1360(f) of the floodplain areas and flood-risk zones
or publication of a notice or compendia under subsection
H. R. 3474—104
(h) or (i) of section 1360 that affects the area in which
the improved real estate or mobile home securing the loan
is located or that, in the determination of the Director,
may reasonably be considered to require a determination
under this subsection; or
‘‘(C) results in the purchase of flood insurance coverage
pursuant to the requirement under subsection (e)(2).
‘‘(2) PURCHASER OR TRANSFEREE FEE.—The purchaser or
transferee of such a loan may be charged the fee in the case
of sale or transfer of the loan.’’.
SEC. 527. NOTICE REQUIREMENTS.
Section 1364 of the National Flood Insurance Act of 1968 (42
U.S.C. 4104a) is amended to read as follows:
‘‘NOTICE REQUIREMENTS
‘‘SEC. 1364. (a) NOTIFICATION OF SPECIAL FLOOD HAZARDS.—
‘‘(1) REGULATED
LENDING
INSTITUTIONS.—Each Federal
entity for lending regulation (after consultation and coordina-
tion with the Financial Institutions Examination Council) shall
by regulation require regulated lending institutions, as a condi-
tion of making, increasing, extending, or renewing any loan
secured by improved real estate or a mobile home that the
regulated lending institution determines is located or is to
be located in an area that has been identified by the Director
under this title or the Flood Disaster Protection Act of 1973
as an area having special flood hazards, to notify the purchaser
or lessee (or obtain satisfactory assurances that the seller or
lessor has notified the purchaser or lessee) and the servicer
of the loan of such special flood hazards, in writing, a reasonable
period in advance of the signing of the purchase agreement,
lease, or other documents involved in the transaction. The
regulations shall also require that the regulated lending institu-
tion retain a record of the receipt of the notices by the purchaser
or lessee and the servicer.
‘‘(2) FEDERAL
AGENCY
LENDERS.—Each Federal agency
lender shall by regulation require notification in the manner
provided under paragraph (1) with respect to any loan that
is made by the Federal agency lender and secured by improved
real estate or a mobile home located or to be located in an
area that has been identified by the Director under this title
or the Flood Disaster Protection Act of 1973 as an area having
special flood hazards. Any regulations issued under this para-
graph shall be consistent with and substantially identical to
the regulations issued under paragraph (1).
‘‘(3) CONTENTS OF NOTICE.—Written notification required
under this subsection shall include—
‘‘(A) a warning, in a form to be established by the
Director, stating that the building on the improved real
estate securing the loan is located, or the mobile home
securing the loan is or is to be located, in an area having
special flood hazards;
‘‘(B) a description of the flood insurance purchase
requirements under section 102(b) of the Flood Disaster
Protection Act of 1973;
H. R. 3474—105
‘‘(C) a statement that flood insurance coverage may
be purchased under the national flood insurance program
and is also available from private insurers; and
‘‘(D) any other information that the Director considers
necessary to carry out the purposes of the national flood
insurance program.
‘‘(b) NOTIFICATION OF CHANGE OF SERVICER.—
‘‘(1) LENDING INSTITUTIONS.—Each Federal entity for lend-
ing regulation (after consultation and coordination with the
Financial Institutions Examination Council) shall by regulation
require regulated lending institutions, in connection with the
making, increasing, extending, renewing, selling, or transfer-
ring any loan described in subsection (a)(1), to notify the Direc-
tor (or the designee of the Director) in writing during the
term of the loan of the servicer of the loan. Such institutions
shall also notify the Director (or such designee) of any change
in the servicer of the loan, not later than 60 days after the
effective date of such change. The regulations under this sub-
section shall provide that upon any change in the servicing
of a loan, the duty to provide notification under this subsection
shall transfer to the transferee servicer of the loan.
‘‘(2) FEDERAL
AGENCY
LENDERS.—Each Federal agency
lender shall by regulation provide for notification in the manner
provided under paragraph (1) with respect to any loan described
in subsection (a)(1) that is made by the Federal agency lender.
Any regulations issued under this paragraph shall be consistent
with and substantially identical to the regulations issued under
paragraph (1) of this subsection.
‘‘(c) NOTIFICATION OF EXPIRATION OF INSURANCE.—The Director
(or the designee of the Director) shall, not less than 45 days before
the expiration of any contract for flood insurance under this title,
issue notice of such expiration by first class mail to the owner
of the property covered by the contract, the servicer of any loan
secured by the property covered by the contract, and (if known
to the Director) the owner of the loan.’’.
SEC. 528. STANDARD HAZARD DETERMINATION FORMS.
Chapter III of the National Flood Insurance Act of 1968 (42
U.S.C. 4101 et seq.) is amended by adding at the end the following
new section:
‘‘STANDARD HAZARD DETERMINATION FORMS
‘‘SEC. 1365. (a) DEVELOPMENT.—The Director, in consultation
with representatives of the mortgage and lending industry, the
Federal entities for lending regulation, the Federal agency lenders,
and any other appropriate individuals, shall develop a standard
form for determining, in the case of a loan secured by improved
real estate or a mobile home, whether the building or mobile home
is located in an area identified by the Director as an area having
special flood hazards and in which flood insurance under this title
is available. The form shall be established by regulations issued
not later than 270 days after the date of enactment of the Riegle
Community Development and Regulatory Improvement Act of 1994.
‘‘(b) DESIGN AND CONTENTS.—
‘‘(1) PURPOSE.—The form under subsection (a) shall be
designed to facilitate compliance with the flood insurance pur-
chase requirements of this title.
H. R. 3474—106
‘‘(2) CONTENTS.—The form shall require identification of
the type of flood-risk zone in which the building or mobile
home is located, the complete map and panel numbers for
the improved real estate or property on which the mobile home
is located, the community identification number and community
participation status (for purposes of the national flood insurance
program) of the community in which the improved real estate
or such property is located, and the date of the map used
for the determination, with respect to flood hazard information
on file with the Director. If the building or mobile home is
not located in an area having special flood hazards the form
shall require a statement to such effect and shall indicate
the complete map and panel numbers of the improved real
estate or property on which the mobile home is located. If
the complete map and panel numbers are not available because
the building or mobile home is not located in a community
that is participating in the national flood insurance program
or because no map exists for the relevant area, the form shall
require a statement to such effect. The form shall provide
for inclusion or attachment of any relevant documents indicat-
ing revisions or amendments to maps.
‘‘(c) REQUIRED USE.—The Federal entities for lending regulation
shall by regulation require the use of the form under this section
by regulated lending institutions. Each Federal agency lender shall
by regulation provide for the use of the form with respect to any
loan made by such Federal agency lender. The Federal National
Mortgage Association and the Federal Home Loan Mortgage Cor-
poration and the Government National Mortgage Association shall
require the use of the form with respect to any loan purchased
by such entities. A lender or other person may comply with the
requirement under this subsection by using the form in a printed,
computerized, or electronic manner.
‘‘(d) GUARANTEES
REGARDING
INFORMATION.—In providing
information regarding special flood hazards on the form developed
under this section, any lender (or other person required to use
the form) who makes, increases, extends, or renews a loan secured
by improved real estate or a mobile home may provide for the
acquisition or determination of such information to be made by
a person other than such lender (or other person), only to the
extent such person guarantees the accuracy of the information.
‘‘(e) RELIANCE
ON
PREVIOUS
DETERMINATION.—Any person
increasing, extending, renewing, or purchasing a loan secured by
improved real estate or a mobile home may rely on a previous
determination of whether the building or mobile home is located
in an area having special flood hazards (and shall not be liable
for any error in such previous determination), if the previous deter-
mination was made not more than 7 years before the date of
the transaction and the basis for the previous determination has
been set forth on a form under this section, unless—
‘‘(1) map revisions or updates pursuant to section 1360(f)
after such previous determination have resulted in the building
or mobile home being located in an area having special flood
hazards; or
‘‘(2) the person contacts the Director to determine when
the most recent map revisions or updates affecting such prop-
erty occurred and such revisions and updates have occurred
after such previous determination.
H. R. 3474—107
‘‘(f) EFFECTIVE
DATE.—The regulations under this section
requiring use of the form established pursuant to this section shall
be issued together with the regulations required under subsection
(a) and shall take effect upon the expiration of the 180-day period
beginning on such issuance.’’.
SEC. 529. EXAMINATIONS REGARDING COMPLIANCE.
(a) AMENDMENT TO FEDERAL DEPOSIT INSURANCE ACT.—Section
10 of the Federal Deposit Insurance Act (12 U.S.C. 1820) is amended
by adding at the end the following new subsection:
‘‘(i) FLOOD INSURANCE COMPLIANCE BY INSURED DEPOSITORY
INSTITUTIONS.—
‘‘(1) EXAMINATIONS.—The appropriate Federal banking
agency shall, during each scheduled on-site examination
required by this section, determine whether the insured deposi-
tory institution is complying with the requirements of the
national flood insurance program.
‘‘(2) REPORT.—
‘‘(A) REQUIREMENT.—Not later than 1 year after the
date of enactment of the Riegle Community Development
and Regulatory Improvement Act of 1994 and biennially
thereafter for the next 4 years, each appropriate Federal
banking agency shall submit a report to the Congress on
compliance by insured depository institutions with the
requirements of the national flood insurance program.
‘‘(B) CONTENTS.—Each report submitted under this
paragraph shall include a description of the methods used
to determine compliance, the number of institutions exam-
ined during the reporting year, a listing and total number
of institutions found not to be in compliance, actions taken
to correct incidents of noncompliance, and an analysis of
compliance, including a discussion of any trends, patterns,
and problems, and recommendations regarding reasonable
actions to improve the efficiency of the examinations proc-
esses.’’.
(b) AMENDMENT TO FEDERAL CREDIT UNION ACT.—Section 204
of the Federal Credit Union Act (12 U.S.C. 1784) is amended
by adding at the end the following new subsection:
‘‘(e) FLOOD
INSURANCE
COMPLIANCE
BY
INSURED
CREDIT
UNIONS.—
‘‘(1) EXAMINATION.—The Board shall, during each examina-
tion conducted under this section, determine whether the
insured credit union is complying with the requirements of
the national flood insurance program.
‘‘(2) REPORT.—
‘‘(A) REQUIREMENT.—Not later than 1 year after the
date of enactment of the Riegle Community Development
and Regulatory Improvement Act of 1994 and biennially
thereafter for the next 4 years, the Board shall submit
a report to the Congress on compliance by insured credit
unions with the requirements of the national flood insur-
ance program.
‘‘(B) CONTENTS.—The report shall include a description
of the methods used to determine compliance, the number
of insured credit unions examined during the reporting
year, a listing and total number of insured credit unions
found not to be in compliance, actions taken to correct
H. R. 3474—108
incidents of noncompliance, and an analysis of compliance,
including a discussion of any trends, patterns, and prob-
lems, and recommendations regarding reasonable actions
to improve the efficiency of the examinations processes.’’.
(c) AMENDMENT TO FEDERAL HOUSING ENTERPRISES FINANCIAL
SAFETY AND SOUNDNESS ACT OF 1992.—Section 1319B(a) of the
Federal Housing Enterprises Financial Safety and Soundness Act
of 1992 (12 U.S.C. 4521(a)) is amended—
(1) in paragraph (2), by striking ‘‘and’’ at the end;
(2) in paragraph (3), by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following new paragraph:
‘‘(4) a description of—
‘‘(A) whether the procedures established by each enter-
prise pursuant to section 102(b)(3) of the Flood Disaster
Protection Act of 1973 are adequate and being complied
with, and
‘‘(B) the results and conclusions of any examination,
as determined necessary by the Director, to determine the
compliance of the enterprises with the requirements of
section 102(b)(3) of such Act, which shall include a descrip-
tion of the methods used to determine compliance and
the types and sources of deficiencies (if any), and identify
any corrective measures that have been taken to remedy
any such deficiencies,
except that the information described in this paragraph shall
be included only in each of the first, third, and fifth annual
reports under this subsection required to be submitted after
the expiration of the 1-year period beginning on the date of
enactment of the Riegle Community Development and Regu-
latory Improvement Act of 1994.’’.
SEC. 530. FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.
Section 1006 of the Federal Financial Institutions Examination
Council Act of 1978 (12 U.S.C. 3305) is amended by adding at
the end the following new subsection:
‘‘(g) FLOOD INSURANCE.—The Council shall consult with and
assist the Federal entities for lending regulation, as such term
is defined in section 1370(a) of the National Flood Insurance Act
of 1968, in developing and coordinating uniform standards and
requirements for use by regulated lending institutions under the
national flood insurance program.’’.
SEC. 531. CLERICAL AMENDMENT.
Section 102 of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a) is amended by striking the section heading and
inserting the following new section heading:
H. R. 3474—109
‘‘FLOOD INSURANCE PURCHASE AND COMPLIANCE REQUIREMENTS AND
ESCROW ACCOUNTS’’.
Subtitle C—Ratings and Incentives for
Community Floodplain Management Pro-
grams
SEC. 541. COMMUNITY RATING SYSTEM AND INCENTIVES FOR COMMU-
NITY FLOODPLAIN MANAGEMENT.
Section 1315 of the National Flood Insurance Act of 1968 (42
U.S.C. 4022) is amended—
(1) by striking ‘‘After December’’ and inserting the
following:
‘‘(a) REQUIREMENT
FOR PARTICIPATION
IN FLOOD INSURANCE
PROGRAM.—
‘‘(1) IN GENERAL.—After December’’; and
(2) by adding at the end the following new subsection:
‘‘(b) COMMUNITY RATING SYSTEM AND INCENTIVES FOR COMMU-
NITY FLOODPLAIN MANAGEMENT.—
‘‘(1) AUTHORITY AND GOALS.—The Director shall carry out
a community rating system program, under which communities
participate voluntarily—
‘‘(A) to provide incentives for measures that reduce
the risk of flood or erosion damage that exceed the criteria
set forth in section 1361 and evaluate such measures;
‘‘(B) to encourage adoption of more effective measures
that protect natural and beneficial floodplain functions;
‘‘(C) to encourage floodplain and erosion management;
and
‘‘(D) to promote the reduction of Federal flood insurance
losses.
‘‘(2) INCENTIVES.—The program shall provide incentives in
the form of credits on premium rates for flood insurance cov-
erage in communities that the Director determines have
adopted and enforced measures that reduce the risk of flood
and erosion damage that exceed the criteria set forth in section
1361. In providing incentives under this paragraph, the Director
may provide for credits to flood insurance premium rates in
communities that the Director determines have implemented
measures that protect natural and beneficial floodplain
functions.
‘‘(3) CREDITS.—The credits on premium rates for flood
insurance coverage shall be based on the estimated reduction
in flood and erosion damage risks resulting from the measures
adopted by the community under this program. If a community
has received mitigation assistance under section 1366, the cred-
its shall be phased in a manner, determined by the Director,
to recover the amount of such assistance provided for the
community.
‘‘(4) REPORTS.—Not later than 2 years after the date of
enactment of the Riegle Community Development and Regu-
latory Improvement Act of 1994 and not less than every 2
years thereafter, the Director shall submit a report to the
Congress regarding the program under this subsection. Each
report shall include an analysis of the cost-effectiveness of
H. R. 3474—110
the program, any other accomplishments or shortcomings of
the program, and any recommendations of the Director for
legislation regarding the program.’’.
SEC. 542. FUNDING.
Section 1310(a) of the National Flood Insurance Act of 1968
(42 U.S.C. 4017(a)) is amended—
(1) in paragraph (4), by striking ‘‘and’’ at the end;
(2) in paragraph (5), by striking the period at the end
and inserting a semicolon; and
(3) by adding after paragraph (5) the following new
paragraph:
‘‘(6) for carrying out the program under section 1315(b);’’.
Subtitle D—Mitigation of Flood Risks
SEC. 551. REPEAL OF FLOODED PROPERTY PURCHASE AND LOAN
PROGRAM.
(a) REPEAL.—Section 1362 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4103) is hereby repealed.
(b) TRANSITION PHASE.—Notwithstanding subsection (a), during
the 1-year period beginning on the date of enactment of this Act,
the Director of the Federal Emergency Management Agency may
enter into loan and purchase commitments as provided under sec-
tion 1362 of the National Flood Insurance Act of 1968 (as in effect
immediately before the enactment of this Act).
(c) SAVINGS PROVISION.—Notwithstanding subsection (a), the
Director shall take any action necessary to comply with any pur-
chase or loan commitment entered into before the expiration of
the period referred to in subsection (b) pursuant to authority under
section 1362 of the National Flood Insurance Act of 1968 or sub-
section (b).
SEC. 552. TERMINATION 
OF 
EROSION-THREATENED 
STRUCTURES
PROGRAM.
(a) IN GENERAL.—Section 1306 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4013) is amended by striking subsection
(c).
(b) TRANSITION PHASE.—Notwithstanding subsection (a), during
the 1-year period beginning on the date of enactment of this Act,
the Director of the Federal Emergency Management Agency may
pay amounts under flood insurance contracts for demolition or
relocation of structures as provided in section 1306(c) of the
National Flood Insurance Act of 1968 (as in effect immediately
before the enactment of this Act).
(c) SAVINGS PROVISION.—Notwithstanding subsection (a), the
Director shall take any action necessary to make payments under
flood insurance contracts pursuant to any commitments made before
the expiration of the period referred to in subsection (b) pursuant
to the authority under section 1306(c) of the National Flood Insur-
ance Act of 1968 or subsection (b).
(d) REPEAL
OF FINDINGS PROVISION.—Section 1302 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4001) is amended
by striking subsection (g).
H. R. 3474—111
SEC. 553. MITIGATION ASSISTANCE PROGRAM.
(a) IN GENERAL.—Chapter III of the National Flood Insurance
Act of 1968 (42 U.S.C. 4101 et seq.), as amended by the preceding
provisions of this title, is further amended by adding at the end
the following new section:
‘‘MITIGATION ASSISTANCE
‘‘SEC. 1366. (a) AUTHORITY.—The Director shall carry out a
program to provide financial assistance to States and communities,
using amounts made available from the National Flood Mitigation
Fund under section 1367, for planning and carrying out activities
designed to reduce the risk of flood damage to structures covered
under contracts for flood insurance under this title. Such financial
assistance shall be made available to States and communities in
the form of grants under subsection (b) for planning assistance
and in the form of grants under this section for carrying out
mitigation activities.
‘‘(b) PLANNING ASSISTANCE GRANTS.—
‘‘(1) IN GENERAL.—The Director may make grants under
this subsection to States and communities to assist in develop-
ing mitigation plans under subsection (c).
‘‘(2) FUNDING.—Of any amounts made available from the
National Flood Mitigation Fund for use under this section
in any fiscal year, the Director may use not more than
$1,500,000 to provide planning assistance grants under this
subsection.
‘‘(3) LIMITATIONS.—
‘‘(A) TIMING.—A grant under this subsection may be
awarded to a State or community not more than once
every 5 years and each grant may cover a period of 1
to 3 years.
‘‘(B) SINGLE GRANTEE AMOUNT.—A grant for planning
assistance may not exceed—
‘‘(i) $150,000, to any State; or
‘‘(ii) $50,000, to any community.
‘‘(C) CUMULATIVE STATE GRANT AMOUNT.—The sum of
the amounts of grants made under this subsection in any
fiscal year to any one State and all communities located
in such State may not exceed $300,000.
‘‘(c) ELIGIBILITY FOR MITIGATION ASSISTANCE.—To be eligible
to receive financial assistance under this section for mitigation
activities, a State or community shall develop, and have approved
by the Director, a flood risk mitigation plan (in this section referred
to as a ‘mitigation plan’), that describes the mitigation activities
to be carried out with assistance provided under this section, is
consistent with the criteria established by the Director under section
1361, and provides protection against flood losses to structures
for which contracts for flood insurance are available under this
title. The mitigation plan shall be consistent with a comprehensive
strategy for mitigation activities for the area affected by the mitiga-
tion plan, that has been adopted by the State or community follow-
ing a public hearing.
‘‘(d) NOTIFICATION OF APPROVAL AND GRANT AWARD.—
‘‘(1) IN
GENERAL.—The Director shall notify a State or
community submitting a mitigation plan of the approval or
H. R. 3474—112
disapproval of the plan not later than 120 days after submission
of the plan.
‘‘(2) NOTIFICATION OF DISAPPROVAL.—If the Director does
not approve a mitigation plan submitted under this subsection,
the Director shall notify, in writing, the State or community
submitting the plan of the reasons for such disapproval.
‘‘(e) ELIGIBLE MITIGATION ACTIVITIES.—
‘‘(1) USE OF AMOUNTS.—Amounts provided under this sec-
tion (other than under subsection (b)) may be used only for
mitigation activities specified in a mitigation plan approved
by the Director under subsection (d). The Director shall provide
assistance under this section to the extent amounts are avail-
able in the National Flood Mitigation Fund pursuant to
appropriation Acts, subject only to the absence of approvable
mitigation plans.
‘‘(2) DETERMINATION OF ELIGIBLE PLANS.—The Director may
approve only mitigation plans that specify mitigation activities
that the Director determines are technically feasible and cost-
effective and only such plans that propose activities that are
cost-beneficial to the National Flood Mitigation Fund.
‘‘(3) STANDARD FOR APPROVAL.—The Director shall approve
mitigation plans meeting the requirements for approval under
paragraph (1) that will be most cost-beneficial to the National
Flood Mitigation Fund.
‘‘(4) PRIORITY.—The Director shall make every effort to
provide mitigation assistance under this section for mitigation
plans proposing activities for repetitive loss structures and
structures that have incurred substantial damage.
‘‘(5) ELIGIBLE
ACTIVITIES.—The Director shall determine
whether mitigation activities described in a mitigation plan
submitted under subsection (d) comply with the requirements
under paragraph (1). Such activities may include—
‘‘(A) demolition or relocation of any structure located
on land that is along the shore of a lake or other body
of water and is certified by an appropriate State or local
land use authority to be subject to imminent collapse or
subsidence as a result of erosion or flooding;
‘‘(B) elevation, relocation, demolition, or floodproofing
of structures (including public structures) located in areas
having special flood hazards or other areas of flood risk;
‘‘(C) acquisition by States and communities of prop-
erties (including public properties) located in areas having
special flood hazards or other areas of flood risk and prop-
erties substantially damaged by flood, for public use, as
the Director determines is consistent with sound land
management and use in such area;
‘‘(D) minor physical mitigation efforts that do not dupli-
cate the flood prevention activities of other Federal agencies
and that lessen the frequency or severity of flooding and
decrease predicted flood damages, which shall not include
major flood control projects such as dikes, levees, seawalls,
groins, and jetties unless the Director specifically deter-
mines in approving a mitigation plan that such activities
are the most cost-effective mitigation activities for the
National Flood Mitigation Fund;
‘‘(E) beach nourishment activities;
H. R. 3474—113
‘‘(F) the provision of technical assistance by States
to communities and individuals to conduct eligible mitiga-
tion activities;
‘‘(G) other activities that the Director considers appro-
priate and specifies in regulation; and
‘‘(H) other mitigation activities not described in sub-
paragraphs (A) through (F) or the regulations issued under
subparagraph (G), that are described in the mitigation
plan of a State or community.
‘‘(f) LIMITATIONS ON AMOUNT OF ASSISTANCE.—
‘‘(1) AMOUNT.—The sum of the amounts of mitigation assist-
ance provided under this section during any 5-year period may
not exceed—
‘‘(A) $10,000,000, to any State; or
‘‘(B) $3,300,000, to any community.
‘‘(2) GEOGRAPHIC.—The sum of the amounts of mitigation
assistance provided under this section during any 5-year period
to any one State and all communities located in such State
may not exceed $20,000,000.
‘‘(3) WAIVER.—The Director may waive the dollar amount
limitations under paragraphs (1) and (2) for any State or
community for any 5-year period during which a major disaster
or emergency declared by the President (pursuant to the Robert
T. Stafford Disaster Relief and Emergency Assistance Act) as
a result of flood conditions is in effect with respect to areas
in the State or community.
‘‘(g) MATCHING REQUIREMENT.—
‘‘(1) IN GENERAL.—The Director may not provide mitigation
assistance under this section to a State or community in an
amount exceeding 3 times the amount that the State or commu-
nity certifies, as the Director shall require, that the State
or community will contribute from non-Federal funds to develop
a mitigation plan under subsection (c) and to carry out mitiga-
tion activities under the approved mitigation plan. In no case
shall any in-kind contribution by any State or community
exceed one-half of the amount of non-Federal funds contributed
by the State or community.
‘‘(2) NON-FEDERAL FUNDS.—For purposes of this subsection,
the term ‘non-Federal funds’ includes State or local agency
funds, in-kind contributions, any salary paid to staff to carry
out the mitigation activities of the recipient, the value of the
time and services contributed by volunteers to carry out such
activities (at a rate determined by the Director), and the value
of any donated material or building and the value of any
lease on a building.
‘‘(h) OVERSIGHT OF MITIGATION PLANS.—The Director shall con-
duct oversight of recipients of mitigation assistance under this
section to ensure that the assistance is used in compliance with
the approved mitigation plans of the recipients and that matching
funds certified under subsection (g) are used in accordance with
such certification.
‘‘(i) RECAPTURE.—
‘‘(1) NONCOMPLIANCE WITH PLAN.—If the Director deter-
mines that a State or community that has received mitigation
assistance under this section has not carried out the mitigation
activities as set forth in the mitigation plan, the Director shall
H. R. 3474—114
recapture any unexpended amounts and deposit the amounts
in the National Flood Mitigation Fund under section 1367.
‘‘(2) FAILURE TO PROVIDE MATCHING FUNDS.—If the Director
determines that a State or community that has received mitiga-
tion assistance under this section has not provided matching
funds in the amount certified under subsection (g), the Director
shall recapture any unexpended amounts of mitigation assist-
ance exceeding 3 times the amount of such matching funds
actually provided and deposit the amounts in the National
Flood Mitigation Fund under section 1367.
‘‘(j) REPORTS.—Not later than 1 year after the date of enactment
of the Riegle Community Development and Regulatory Improvement
Act of 1994 and biennially thereafter, the Director shall submit
a report to the Congress describing the status of mitigation activities
carried out with assistance provided under this section.
‘‘(k) DEFINITION OF COMMUNITY.—For purposes of this section,
the term ‘community’ means—
‘‘(1) a political subdivision that (A) has zoning and building
code jurisdiction over a particular area having special flood
hazards, and (B) is participating in the national flood insurance
program; or
‘‘(2) a political subdivision of a State, or other authority,
that is designated to develop and administer a mitigation plan
by political subdivisions, all of which meet the requirements
of paragraph (1).’’.
(b) REGULATIONS.—Not later than 6 months after the date
of enactment of this Act, the Director of the Federal Emergency
Management Agency shall issue regulations to carry out section
1366 of the National Flood Insurance Act of 1968, as added by
subsection (a).
SEC. 554. ESTABLISHMENT OF NATIONAL FLOOD MITIGATION FUND.
(a) IN GENERAL.—Chapter III of the National Flood Insurance
Act of 1968 (42 U.S.C. 4101 et seq.), as amended by the preceding
provisions of this title, is further amended by adding at the end
the following new section:
‘‘NATIONAL FLOOD MITIGATION FUND
‘‘SEC. 1367. (a) ESTABLISHMENT AND AVAILABILITY.—The Direc-
tor shall establish in the Treasury of the United States a fund
to be known as the National Flood Mitigation Fund, which shall
be credited with amounts described in subsection (b) and shall
be available, to the extent provided in appropriation Acts, for provid-
ing assistance under section 1366.
‘‘(b) CREDITS.—The National Flood Mitigation Fund shall be
credited with—
‘‘(1) amounts from the National Flood Insurance Fund,
in amounts not exceeding—
‘‘(A) $10,000,000 in the fiscal year ending September
30, 1994;
‘‘(B) $15,000,000 in the fiscal year ending Septem-
ber 30, 1995;
‘‘(C) $20,000,000 in the fiscal year ending September
30, 1996; and
‘‘(D) $20,000,000 in each fiscal year thereafter;
‘‘(2) any penalties collected under section 102(f) of the Flood
Disaster Protection Act of 1973; and
H. R. 3474—115
‘‘(3) any amounts recaptured under section 1366(i).
‘‘(c) INVESTMENT.—If the Director determines that the amounts
in the National Flood Mitigation Fund are in excess of amounts
needed under subsection (a), the Director may invest any excess
amounts the Director determines advisable in interest-bearing
obligations issued or guaranteed by the United States.
‘‘(d) REPORT.—The Director shall submit a report to the Con-
gress not later than the expiration of the 1-year period beginning
on the date of enactment of this Act and not less than once during
each successive 2-year period thereafter. The report shall describe
the status of the Fund and any activities carried out with amounts
from the Fund.’’.
(b) 
NATIONAL
FLOOD
INSURANCE
FUND
AS
SEPARATE
ACCOUNT.—Section 1310(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4017(a)) is amended—
(1) in the matter preceding paragraph (1)—
(A) by striking ‘‘is authorized to’’ and inserting ‘‘shall’’;
and
(B) by inserting after ‘‘which shall be’’ the following:
‘‘an account separate from any other accounts or funds
available to the Director and shall be’’; and
(2) by adding after paragraph (6) (as added by the preceding
provisions of this title) the following new paragraph:
‘‘(7) for transfers to the National Flood Mitigation Fund,
but only to the extent provided in section 1367(b)(1); and’’.
SEC. 555. ADDITIONAL COVERAGE FOR COMPLIANCE WITH LAND USE
AND CONTROL MEASURES.
(a) IN GENERAL.—Section 1304 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4011) is amended—
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following new sub-
section:
‘‘(b) ADDITIONAL COVERAGE FOR COMPLIANCE WITH LAND USE
AND CONTROL MEASURES.—The national flood insurance program
established pursuant to subsection (a) shall enable the purchase
of insurance to cover the cost of compliance with land use and
control measures established under section 1361 for—
‘‘(1) properties that are repetitive loss structures;
‘‘(2) properties that have flood damage in which the cost
of repairs equals or exceeds 50 percent of the value of the
structure at the time of the flood event; and
‘‘(3) properties that have sustained flood damage on mul-
tiple occasions, if the Director determines that it is cost-effective
and in the best interests of the National Flood Insurance Fund
to require compliance with the land use and control measures.
The Director shall impose a surcharge on each insured of not
more than $75 per policy to provide cost of compliance coverage
in accordance with the provisions of this subsection.’’.
(b) APPLICABILITY.—The provisions of subsection (a) shall apply
only to properties that sustain flood-related damage after the date
of enactment of this Act.
H. R. 3474—116
Subtitle E—Task Forces
SEC. 561. FLOOD INSURANCE INTERAGENCY TASK FORCE.
(a) ESTABLISHMENT.—There is hereby established an inter-
agency task force to be known as the Flood Insurance Task Force
(in this section referred to as the ‘‘Task Force’’).
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Task Force shall be composed of
10 members, who shall be the designees of—
(A) the Federal Insurance Administrator;
(B) the Federal Housing Commissioner;
(C) the Secretary of Veterans Affairs;
(D) 
the 
Administrator 
of 
the 
Farmers 
Home
Administration;
(E) 
the 
Administrator 
of 
the 
Small 
Business
Administration;
(F) the Chairman of the Board of Directors of the
Farm Credit Administration;
(G) a designee of the Financial Institutions Examina-
tion Council;
(H) the Director of the Office of Federal Housing Enter-
prise Oversight;
(I) the chairman of the Board of Directors of the
Federal Home Loan Mortgage Corporation; and
(J) the chairman of the Board of Directors of the
Federal National Mortgage Association.
(2) QUALIFICATIONS.—Members of the Task Force shall be
designated for membership on the Task Force by reason of
demonstrated 
knowledge 
and 
competence 
regarding 
the
national flood insurance program.
(c) DUTIES.—The Task Force shall carry out the following
duties:
(1) RECOMMENDATIONS
OF
STANDARDIZED
ENFORCEMENT
PROCEDURES.—Make recommendations to the head of each Fed-
eral agency and enterprise referred to under subsection (b)(1)
regarding establishment or adoption of standardized enforce-
ment procedures among such agencies and corporations respon-
sible for enforcing compliance with the requirements under
the national flood insurance program to ensure fullest possible
compliance with such requirements.
(2) STUDY OF COMPLIANCE ASSISTANCE.—Conduct a study
of the extent to which Federal agencies and the secondary
mortgage market can provide assistance in ensuring compliance
with the requirements under the national flood insurance pro-
gram and submit to the Congress a report describing the study
and any conclusions.
(3) STUDY
OF
COMPLIANCE
MODEL.—Conduct a study of
the extent to which existing programs of Federal agencies and
corporations for compliance with the requirements under the
national flood insurance program can serve as a model for
other Federal agencies responsible for enforcing compliance,
and submit to the Congress a report describing the study and
any conclusions.
(4) RECOMMENDATIONS FOR ENFORCEMENT AND COMPLIANCE
PROCEDURES.—Develop recommendations regarding enforce-