(B) areas of residual risk, including areas 
behind levees, dams, and other man-made struc-
tures; and 
(C) areas subject to graduated and other 
risk levels, to the maximum extent possible; 
(2) ensure that any such rate maps— 
(A) include levees, including decertified lev-
ees, and the level of protection they confer; 
(B) reflect current land use and topography 
and incorporate the most current and accurate 
ground level data; 
(C) take into consideration the impacts and 
use of fill and the flood risks associated with al-
tered hydrology; 
(D) differentiate between a property that is 
located in a flood zone and a structure located 
on such property that is not at the same risk 
level for flooding as such property due to the ele-
vation of the structure; 
(E) identify and incorporate natural fea-
tures and their associated flood protection bene-
fits into mapping and rates; and 
(F) identify, analyze, and incorporate the 
impact of significant changes to building and de-
velopment throughout any river or costal water 
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system, including all tributaries, which may im-
pact 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 rec-
ommendations of the Council made under the proposed 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 Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the 
Senate specifying which such recommendations were not 
adopted and explaining the reasons 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 insurance 
rate maps pursuant to subsection (a) of this section, com-
mence use of the new standards and updating of flood insur-
ance rate maps in accordance with the new standards. Not 
later than the expiration of the 5-year period beginning 
upon the establishment of such new standards, the Adminis-
trator shall complete updating of all flood insurance rate 
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maps in accordance with the new standards, subject to the 
availability of sufficient amounts for such activities pro-
vided in appropriation Acts. 
(e) TEMPORARY SUSPENSION OF MANDATORY PUR-
CHASE REQUIREMENT FOR CERTAIN PROPERTIES.— 
(1) SUBMISSION OF ELEVATION CERTIFICATE.— 
Subject to paragraphs (2) and (3) of this subsection, 
subsections (a), (b), and (e) of section 102 of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a), 
and section 202(a) of such Act, shall not apply to a 
property located in an area designated as having a 
special flood hazard if the owner of such property sub-
mits to the Administrator an elevation certificate for 
such property showing that the lowest level of the pri-
mary residence on such property is at an elevation 
that is at least three feet higher than the elevation of 
the 100-year flood plain. 
(2) REVIEW
OF
SURVEY.—The Administrator 
shall accept as conclusive each elevation survey sub-
mitted under paragraph (1) unless the Administrator 
conducts a subsequent elevation survey and deter-
mines that the lowest level of the primary residence 
on the property in question is not at an elevation that 
is at least three feet higher than the elevation of the 
100-year flood plain. The Administrator shall provide 
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any such subsequent elevation survey to the owner of 
such property. 
(3) DETERMINATIONS FOR PROPERTIES ON BOR-
DERS OF SPECIAL FLOOD HAZARD AREAS.— 
(A) EXPEDITED
DETERMINATION.—In the 
case of any survey for a property submitted to 
the Administrator pursuant to paragraph (1) 
showing that a portion of the property is located 
within an area having special flood hazards and 
that a structure located on the property is not lo-
cated within such area having special flood haz-
ards, the Administrator shall expeditiously proc-
ess any request made by an owner of the prop-
erty for a determination pursuant to paragraph 
(2) or a determination of whether the structure 
is located within the area having special flood 
hazards. 
(B) PROHIBITION OF FEE.—If the Adminis-
trator determines pursuant to subparagraph (A) 
that the structure on the property is not located 
within the area having special flood hazards, the 
Administrator shall not charge a fee for review-
ing the flood hazard data and shall not require 
the owner to provide any additional elevation 
data. 
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(C) SIMPLIFICATION
OF
REVIEW
PROC-
ESS.—The Administrator shall collaborate with 
private sector flood insurers to simplify the re-
view process for properties described in subpara-
graph (A) and to ensure that the review process 
provides for accurate determinations. 
(4) TERMINATION
OF
AUTHORITY.—This sub-
section shall cease to apply to a property on the date 
on which the Administrator updates the flood insur-
ance rate map that applies to such property in ac-
cordance with the requirements of subsection (d). 
SEC. 8. TREATMENT OF LEVEES. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101) is amended by adding at the end 
the following new subsection: 
‘‘(k) TREATMENT
OF LEVEES.—The Administrator 
may not issue flood insurance maps, or make effective up-
dated flood insurance maps, that omit or disregard the ac-
tual protection afforded by an existing levee, floodwall, 
pump or other flood protection feature, regardless of the ac-
creditation status of such feature.’’. 
SEC. 9. 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 Fed-
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eral Emergency Management Agency and the Comptroller 
General of the United States shall each conduct a separate 
study to assess a broad range of options, methods, and strat-
egies for privatizing the national flood insurance program 
and shall each submit a report to the Committee on Finan-
cial Services of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of the Sen-
ate with recommendations for the best manner to accom-
plish such privatization. 
(b) PRIVATE RISK-MANAGEMENT INITIATIVES.— 
(1) AUTHORITY.—The Administrator of the Fed-
eral Emergency Management Agency may carry out 
such private risk-management initiatives under the 
national flood insurance program as the Adminis-
trator considers appropriate to determine the capac-
ity of private insurers, reinsurers, and financial mar-
kets to assist communities, on a voluntary basis only, 
in managing the full range of financial risks associ-
ated with flooding. 
(2) ASSESSMENT.—Not later than the expiration 
of the 12-month period beginning on the date of the 
enactment of this Act, the Administrator shall assess 
the capacity of the private reinsurance, capital, and 
financial markets by seeking proposals to assume a 
portion of the program’s insurance risk and submit to 
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the Congress a report describing the response to such 
request for proposals and the results of such assess-
ment. 
(3) PROTOCOL FOR RELEASE OF DATA.—The Ad-
ministrator shall develop a protocol to provide for the 
release of data sufficient to conduct the assessment re-
quired under paragraph (2). 
(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 insurance 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’’; 
(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 Administrator is authorized to secure rein-
surance coverage of coverage provided by the flood insurance 
program from private market insurance, reinsurance, and 
capital market sources at rates and on terms determined 
by the Administrator to be reasonable and appropriate in 
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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)— 
(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)— 
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(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 fol-
lowing 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 fol-
lowing: ‘‘, is subject to the reporting requirements of 
the Securities Exchange Act of 1934, pursuant to sec-
tion 13(a) or 15(d) of such Act (15 U.S.C. 78m(a), 
78o(d)), or is authorized by the Administrator to as-
sume reinsurance on risks insured by the flood insur-
ance program’’. 
(d) ASSESSMENT OF CLAIMS-PAYING ABILITY.— 
(1) ASSESSMENT.—Not later than September 30 
of each year, the Administrator of the Federal Emer-
gency Management Agency shall conduct an assess-
ment of the claims-paying ability of the national 
flood insurance program, including the program’s uti-
lization of private sector reinsurance and reinsurance 
equivalents, with and without reliance on borrowing 
authority under section 1309 of the National Flood 
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Insurance Act of 1968 (42 U.S.C. 4016). In con-
ducting the assessment, the Administrator shall take 
into consideration regional concentrations of coverage 
written by the program, peak flood zones, and rel-
evant mitigation measures. 
(2) REPORT.—The Administrator shall submit a 
report to the Congress of the results of each such as-
sessment, and make such report available to the pub-
lic, not later than 30 days after completion of the as-
sessment. 
SEC. 10. 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 REPORT 
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 
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(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.’’. 
SEC. 11. ACTUARIAL RATES FOR SEVERE REPETITIVE LOSS 
PROPERTIES REFUSING MITIGATION OR PUR-
CHASE OFFERS. 
Subsection (h) of section 1361A of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4102a(h)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B), by striking ‘‘150 
percent’’ and all that follows through ‘‘para-
graph (3)’’ and inserting ‘‘the applicable esti-
mated risk premium rate for such coverage for 
the area (or subdivision thereof) determined in 
accordance with section 1307(a), subject to 
phase-in of such rates in the same manner pro-
vided under paragraph (2) of section 1308(g) for 
properties described in paragraph (1) of such 
section’’; and 
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(B) by inserting after and below subpara-
graph (B) the following: 
‘‘An offer to take action under paragraph (1) or (2) 
of subsection (c) shall be considered to be made for 
purposes of this paragraph with respect to a severe re-
petitive loss property regardless of the time that the 
offer was made and regardless of whether the Admin-
istrator has transferred financial assistance under 
this section to the State or community making the 
offer for funding such action, but only if the owner 
of the property is provided a reasonable period of 
time, not to exceed 15 days, to respond to the offer.’’; 
(2) by striking paragraphs (2) and (3); and 
(3) by redesignating paragraphs (4) through (6) 
as paragraphs (2) through (4), respectively. 
SEC. 12. 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 REBUILD-
ING OF PROPERTIES.—The Administrator shall con-
sider as an eligible activity the demolition and re-
building 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 
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with project implementation criteria established by 
the Administrator.’’. 
SEC. 13. GRANTS FOR DIRECT FUNDING OF MITIGATION AC-
TIVITIES 
FOR 
INDIVIDUAL 
REPETITIVE 
CLAIMS PROPERTIES. 
(a) DIRECT GRANTS TO OWNERS.—Section 1323 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4030) is 
amended— 
(1) in the section heading, by inserting ‘‘DI-
RECT’’ before ‘‘GRANTS’’; and 
(2) in subsection (a), in the the matter preceding 
paragraph (1)— 
(A) by inserting ‘‘, to owners of such prop-
erties,’’ before ‘‘for mitigation actions’’; and 
(B) by striking ‘‘1’’ and inserting ‘‘two’’. 
(b) AVAILABILITY OF FUNDS.—Paragraph (9) of sec-
tion 1310(a) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4017(a)) is amended by inserting ‘‘which shall 
remain available until expended,’’ after ‘‘any fiscal year,’’. 
SEC. 14. NOTIFICATION TO HOMEOWNERS REGARDING 
MANDATORY PURCHASE REQUIREMENT AP-
PLICABILITY AND RATE PHASE-INS. 
Section 201 of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4105) is amended by adding at the end 
the following new subsection: 
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‘‘(f) ANNUAL NOTIFICATION.—The Administrator, in 
consultation with affected communities, shall establish and 
carry out a plan to notify residents of areas having special 
flood hazards, on an annual basis— 
‘‘(1) that they reside in such an area; 
‘‘(2) of the geographical boundaries of such area; 
‘‘(3) of whether section 1308(h) of the National 
Flood Insurance Act of 1968 applies to properties 
within such area; 
‘‘(4) of the provisions of section 102 requiring 
purchase of flood insurance coverage for properties lo-
cated in such an area, including the date on which 
such provisions apply with respect to such area, tak-
ing into consideration section 102(i); and 
‘‘(5) of a general estimate of what similar home-
owners in similar areas typically pay for flood insur-
ance coverage, taking into consideration section 
1308(g) of the National Flood Insurance Act of 
1968.’’. 
SEC. 15. NOTIFICATION OF ESTABLISHMENT OF FLOOD 
ELEVATIONS. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101), as amended by the preceding provi-
sions of this Act, is further amended by adding at the end 
the following new subsection: 
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‘‘(l) NOTIFICATION TO MEMBERS OF CONGRESS OF 
MAP MODERNIZATION.—Upon any revision or update of 
any floodplain area or flood-risk zone pursuant to sub-
section (f), any decision pursuant to subsection (f)(1) that 
such revision or update is necessary, any issuance of pre-
liminary maps for such revision or updating, or any other 
significant action relating to any such revision or update, 
the Administrator shall notify the Senators for each State 
affected, and each Member of the House of Representatives 
for each congressional district affected, by such revision or 
update in writing of the action taken.’’. 
SEC. 16. NOTIFICATION TO TENANTS OF AVAILABILITY OF 
CONTENTS INSURANCE. 
The National Flood Insurance Act of 1968 is amended 
by inserting after section 1308 (42 U.S.C. 4015) the fol-
lowing new section: 
‘‘SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY 
OF CONTENTS INSURANCE. 
‘‘(a) IN GENERAL.—The Administrator shall, upon en-
tering into a contract for flood insurance coverage under 
this title for any property— 
‘‘(1) provide to the insured sufficient copies of 
the notice developed pursuant to subsection (b); and 
‘‘(2) require the insured to provide a copy of the 
notice, or otherwise provide notification of the infor-
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mation under subsection (b) in the manner that the 
manager or landlord deems most appropriate, to each 
such tenant and to each new tenant upon commence-
ment of such a tenancy. 
‘‘(b) NOTICE.—Notice to a tenant of a property in ac-
cordance with this subsection is written notice that clearly 
informs a tenant— 
‘‘(1) whether the property is located in an area 
having special flood hazards; 
‘‘(2) that flood insurance coverage is available 
under the national flood insurance program under 
this title for contents of the unit or structure leased 
by the tenant; 
‘‘(3) of the maximum amount of such coverage 
for contents available under this title at that time; 
and 
‘‘(4) of where to obtain information regarding 
how to obtain such coverage, including a telephone 
number, mailing address, and Internet site of the Ad-
ministrator where such information is available.’’. 
SEC. 17. NOTIFICATION TO POLICY HOLDERS REGARDING 
DIRECT MANAGEMENT OF POLICY BY FEMA. 
Part C of chapter II of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4081 et seq.) is amended by adding 
at the end the following new section: 
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‘‘SEC. 1349. NOTIFICATION TO POLICY HOLDERS REGARD-
ING DIRECT MANAGEMENT OF POLICY BY 
FEMA. 
‘‘(a) NOTIFICATION.—Not later than 60 days before the 
date on which a transferred flood insurance policy expires, 
and annually thereafter until such time as the Federal 
Emergency Management Agency is no longer directly ad-
ministering such policy, the Administrator shall notify the 
holder of such policy that— 
‘‘(1) the Federal Emergency Management Agency 
is directly administering the policy; 
‘‘(2) such holder may purchase flood insurance 
that is directly administered by an insurance com-
pany; and 
‘‘(3) purchasing flood insurance offered under the 
National Flood Insurance Program that is directly 
administered by an insurance company will not alter 
the coverage provided or the premiums charged to 
such holder that otherwise would be provided or 
charged if the policy was directly administered by the 
Federal Emergency Management Agency. 
‘‘(b) DEFINITION.—In this section, the term ‘trans-
ferred flood insurance policy’ means a flood insurance pol-
icy that— 
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‘‘(1) was directly administered by an insurance 
company at the time the policy was originally pur-
chased by the policy holder; and 
‘‘(2) at the time of renewal of the policy, direct 
administration of the policy was or will be trans-
ferred to the Federal Emergency Management Agen-
cy.’’. 
SEC. 18. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 
AND ESCROW IN RESPA GOOD FAITH ESTI-
MATE. 
Subsection (c) of section 5 of the Real Estate Settle-
ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is amend-
ed by adding at the end the following new sentence: ‘‘Each 
such good faith estimate shall include the following con-
spicuous statements and information: (1) that flood insur-
ance coverage for residential real estate is generally avail-
able under the national flood insurance program whether 
or not the real estate is located in an area having special 
flood hazards and that, to obtain such coverage, a home 
owner or purchaser should contact the national flood insur-
ance program; (2) a telephone number and a location on 
the Internet by which a home owner or purchaser can con-
tact the national flood insurance program; and (3) that the 
escrowing of flood insurance payments is required for many 
loans under section 102(d) of the Flood Disaster Protection 
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Act of 1973, and may be a convenient and available option 
with respect to other loans.’’. 
SEC. 19. REIMBURSEMENT FOR COSTS INCURRED BY HOME-
OWNERS 
OBTAINING 
LETTERS 
OF 
MAP 
AMENDMENT. 
(a) IN GENERAL.—Section 1360 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4101), as amended by 
the preceding provisions of this Act, is further amended by 
adding at the end the following new subsection: 
‘‘(m) REIMBURSEMENT.— 
‘‘(1) REQUIREMENT UPON BONA FIDE OFFER.— 
If an owner of any property located in an area de-
scribed in section 102(i)(3) of the Flood Disaster Pro-
tection Act of 1973 obtains a letter of map amend-
ment due to a bona fide error on the part of the Ad-
ministrator of the Federal Emergency Management 
Agency, the Administrator shall reimburse such 
owner, or such entity or jurisdiction acting on such 
owner’s behalf, for any reasonable costs incurred in 
obtaining such letter. 
‘‘(2) REASONABLE
COSTS.—The Administrator 
shall, by regulation or notice, determine a reasonable 
amount of costs to be reimbursed under paragraph 
(1), except that such costs shall not include legal or 
attorneys fees. In determining the reasonableness of 
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costs, the Administrator shall only consider the actual 
costs to the owner of utilizing the services of an engi-
neer, surveyor, or similar services.’’. 
(b) REGULATIONS.—Not later than 90 days after the 
date of the enactment of this Act, the Administrator of the 
Federal Emergency Management Agency shall issue the reg-
ulations or notice required under section 1360(m)(2) of the 
National Flood Insurance Act of 1968, as added by the 
amendment made by subsection (a) of this section. 
SEC. 20. TREATMENT OF SWIMMING POOL ENCLOSURES 
OUTSIDE OF HURRICANE SEASON. 
Chapter I of the National Flood Insurance Act of 1968 
(42 U.S.C. 4001 et seq.) is amended by adding at the end 
the following new section: 
‘‘SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES 
OUTSIDE OF HURRICANE SEASON. 
‘‘In the case of any property that is otherwise in com-
pliance with the coverage and building requirements of the 
national flood insurance program, the presence of an en-
closed swimming pool located at ground level or in the space 
below the lowest floor of a building after November 30 and 
before June 1 of any year shall have no effect on the terms 
of coverage or the ability to receive coverage for such build-
ing under the national flood insurance program established 
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pursuant to this title, if the pool is enclosed with non-sup-
porting breakaway walls.’’. 
SEC. 21. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUT-
REACH ACTIVITIES AND COMMUNITY BUILD-
ING CODE ADMINISTRATION GRANTS. 
Section 105(a) of the Housing and Community Devel-
opment 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 a semicolon; and 
(3) by adding at the end the following new para-
graphs: 
‘‘(26) supplementing existing State or local fund-
ing for administration of building code enforcement 
by local building code enforcement departments, in-
cluding for increasing staffing, providing staff train-
ing, increasing staff competence and professional 
qualifications, and supporting individual certifi-
cation or departmental accreditation, and for capital 
expenditures specifically dedicated to the administra-
tion of the building code enforcement department, ex-
cept that, to be eligible to use amounts as provided in 
this paragraph— 
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‘‘(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 paragraph; 
‘‘(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 para-
graph; and 
‘‘(iii) in the case of a building code en-
forcement 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 para-
graph; 
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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 depart-
ment that is using amounts for purposes under 
this paragraph, and shall waive such matching 
fund requirements in whole for any recipient ju-
risdiction that has dedicated all building code 
permitting fees to the conduct of local building 
code enforcement; and 
‘‘(B) any building code enforcement depart-
ment 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 code 
enforcement officer, a city planner, and a health 
planner or similar officer; and 
‘‘(27) provision of assistance to local govern-
mental agencies responsible for floodplain manage-
ment activities (including such agencies of Indians 
tribes, as such term is defined in section 4 of the Na-
tive American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4103)) in commu-
nities that participate in the national flood insurance 
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program under the National Flood Insurance Act of 
1968 (42 U.S.C. 4001 et seq.), only for carrying out 
outreach activities to encourage and facilitate the 
purchase of flood insurance protection under such Act 
by owners and renters of properties in such commu-
nities and to promote educational activities that in-
crease awareness of flood risk reduction; except that— 
‘‘(A) amounts used as provided under this 
paragraph shall be used only for activities de-
signed to— 
‘‘(i) identify owners and renters of 
properties in communities that participate 
in the national flood insurance program, 
including owners of residential and com-
mercial properties; 
‘‘(ii) notify such owners and renters 
when their properties become included in, or 
when they are excluded from, an area hav-
ing special flood hazards and the effect of 
such inclusion or exclusion on the applica-
bility of the mandatory flood insurance 
purchase requirement under section 102 of 
the Flood Disaster Protection Act of 1973 
(42 U.S.C. 4012a) to such properties; 
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‘‘(iii) educate such owners and renters 
regarding the flood risk and reduction of 
this risk in their community, including the 
continued flood risks to areas that are no 
longer subject to the flood insurance manda-
tory purchase requirement; 
‘‘(iv) educate such owners and renters 
regarding the benefits and costs of main-
taining or acquiring flood insurance, in-
cluding, where applicable, lower-cost pre-
ferred risk policies under this title for such 
properties and the contents of such prop-
erties; 
‘‘(v) encourage such owners and renters 
to maintain or acquire such coverage; 
‘‘(vi) notify such owners of where to 
obtain information regarding how to obtain 
such coverage, including a telephone num-
ber, mailing address, and Internet site of 
the Administrator of the Federal Emergency 
Management Agency (in this paragraph re-
ferred to as the ‘Administrator’) where such 
information is available; and 
‘‘(vii) educate local real estate agents 
in communities participating in the na-
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tional flood insurance program regarding 
the program and the availability of cov-
erage under the program for owners and 
renters of properties in such communities, 
and establish coordination and liaisons 
with such real estate agents to facilitate 
purchase of coverage under the National 
Flood Insurance Act of 1968 and increase 
awareness of flood risk reduction; 
‘‘(B) in any fiscal year, a local govern-
mental agency may not use an amount under 
this paragraph that exceeds 3 times the amount 
that the agency certifies, as the Secretary, in 
consultation with the Administrator, shall re-
quire, that the agency will contribute from non- 
Federal funds to be used with such amounts used 
under this paragraph only for carrying out ac-
tivities described in subparagraph (A); and for 
purposes of this subparagraph, the term ‘non- 
Federal funds’ includes State or local govern-
ment agency amounts, in-kind contributions, 
any salary paid to staff to carry out the eligible 
activities of the local governmental agency in-
volved, the value of the time and services contrib-
uted by volunteers to carry out such services (at 
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a rate determined by the Secretary), and the 
value of any donated material or building and 
the value of any lease on a building; 
‘‘(C) a local governmental agency that uses 
amounts as provided under this paragraph may 
coordinate or contract with other agencies and 
entities having particular capacities, specialties, 
or experience with respect to certain populations 
or constituencies, including elderly or disabled 
families or persons, to carry out activities de-
scribed in subparagraph (A) with respect to such 
populations or constituencies; and 
‘‘(D) each local government agency that uses 
amounts as provided under this paragraph shall 
submit a report to the Secretary and the Admin-
istrator, not later than 12 months after such 
amounts are first received, which shall include 
such information as the Secretary and the Ad-
ministrator jointly consider appropriate to de-
scribe the activities conducted using such 
amounts and the effect of such activities on the 
retention or acquisition of flood insurance cov-
erage.’’. 
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SEC. 22. 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— 
(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.—Sec-
tion 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 ‘‘Administrator’’. 
SEC. 23. REPORT ON WRITE-YOUR-OWN PROGRAM. 
Not later than one year after the date of the enactment 
of this Act, the Administrator of the Federal Emergency 
Management Agency shall submit to Congress a report de-
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scribing procedures and policies that the Administrator can 
implement to limit the percentage of flood insurance polices 
directly managed by the Agency to not more than 10 per-
cent, if possible, of all flood insurance policies issued in ac-
cordance with the National Flood Insurance Program. 
SEC. 24. STUDIES OF VOLUNTARY COMMUNITY-BASED 
FLOOD INSURANCE OPTIONS. 
(a) STUDIES.—The Administrator of the Federal 
Emergency Management Agency and the Comptroller Gen-
eral of the United States shall each conduct a separate study 
to assess options, methods, and strategies for offering vol-
untary community-based flood insurance policy options 
and incorporating such options into the national flood in-
surance program. Such studies shall take into consideration 
and analyze how the policy options would affect commu-
nities having varying economic bases, geographic locations, 
flood hazard characteristics or classifications, and flood 
management approaches. 
(b) 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 Manage-
ment Agency and the Comptroller General of the United 
States shall each submit a report to the Committee on Fi-
nancial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the 
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Senate on the results and conclusions of the study such 
agency conducted under subsection (a), and each such re-
port shall include recommendations for the best manner to 
incorporate voluntary community-based flood insurance op-
tions into the national flood insurance program and for a 
strategy to implement such options that would encourage 
communities to undertake flood mitigation activities. 
SEC. 25. REPORT ON INCLUSION OF BUILDING CODES IN 
FLOODPLAIN MANAGEMENT CRITERIA. 
Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the Ad-
ministrator of the Federal Emergency Management Agency 
shall conduct a study and submit a report to the Committee 
on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate regarding the impact, effectiveness, and feasi-
bility of amending section 1361 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4102) to include widely used 
and nationally recognized building codes as part of the 
floodplain management criteria developed under such sec-
tion, and shall determine— 
(1) the regulatory, financial, and economic im-
pacts of such a building code requirement on home-
owners, States and local communities, local land use 
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policies, and the Federal Emergency Management 
Agency; 
(2) the resources required of State and local com-
munities to administer and enforce such a building 
code requirement; 
(3) the effectiveness of such a building code re-
quirement in reducing flood-related damage to build-
ings and contents; 
(4) the impact of such a building code require-
ment on the actuarial soundness of the National 
Flood Insurance Program; 
(5) the effectiveness of nationally recognized 
codes in allowing innovative materials and systems 
for flood-resistant construction; 
(6) the feasibility and effectiveness of providing 
an incentive in lower premium rates for flood insur-
ance coverage under such Act for structures meeting 
whichever of such widely used and nationally recog-
nized building code or any applicable local building 
code provides greater protection from flood damage; 
(7) the impact of such a building code require-
ment on rural communities with different building 
code challenges than more urban environments; and 
(8) the impact of such a building code require-
ment on Indian reservations. 
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SEC. 26. STUDY ON GRADUATED RISK. 
(a) STUDY.—The National Academy of Sciences shall 
conduct a study exploring methods for understanding grad-
uated risk behind levees and the associated land develop-
ment, insurance, and risk communication dimensions, 
which shall— 
(1) research, review, and recommend current best 
practices for estimating direct annualized flood losses 
behind levees for residential and commercial struc-
tures; 
(2) rank such practices based on their best value, 
balancing cost, scientific integrity, and the inherent 
uncertainties associated with all aspects of the loss es-
timate, including geotechnical engineering, flood fre-
quency estimates, economic value, and direct dam-
ages; 
(3) research, review, and identify current best 
floodplain management and land use practices behind 
levees that effectively balance social, economic, and 
environmental considerations as part of an overall 
flood risk management strategy; 
(4) identify examples where such practices have 
proven effective and recommend methods and proc-
esses by which they could be applied more broadly 
across the United States, given the variety of different 
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flood risks, State and local legal frameworks, and 
evolving judicial opinions; 
(5) research, review, and identify a variety of 
flood insurance pricing options for flood hazards be-
hind levees which are actuarially sound and based on 
the flood risk data developed using the top three best 
value approaches identified pursuant to paragraph 
(1); 
(6) evaluate and recommend methods to reduce 
insurance costs through creative arrangements be-
tween insureds and insurers while keeping a clear ac-
counting of how much financial risk is being borne by 
various parties such that the entire risk is accounted 
for, including establishment of explicit limits on dis-
aster aid or other assistance in the event of a flood; 
and 
(7) taking into consideration the recommenda-
tions pursuant to paragraphs (1) through (3), rec-
ommend approaches to communicating the associated 
risks to community officials, homeowners, and other 
residents. 
(b) REPORT.—Not later than the expiration of the 12- 
month period beginning on the date of the enactment of this 
Act, the National Academy of Sciences shall submit a report 
to the Committees on Financial Services and Science, 
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Space, and Technology of the House of Representatives and 
the Committees on Banking, Housing, and Urban Affairs 
and Commerce, Science and Transportation of the Senate 
on the study under subsection (a) including the information 
and recommendations required under such subsection. 
SEC. 27. NO CAUSE OF ACTION. 
No cause of action shall exist and no claim may be 
brought against the United States for violation of any noti-
fication requirement imposed upon the United States by 
this Act or any amendment made by this Act. 
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Union Calendar No. 57 
112TH CONGRESS 
1ST SESSION 
H. R. 1309 
[Report No. 112–102] 
A BILL 
To extend the authorization of the national flood 
insurance program, to achieve reforms to improve 
the financial integrity and stability of the pro-
gram, and to increase the role of private markets 
in the management of flood insurance risk, and 
for other purposes. 
JUNE 9, 2011 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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