of section 102 of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a).’’. 
SEC. 110. ENFORCEMENT. 
Section 102(f)(5) of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4012a(f)(5)) is amended—
(1) in the first sentence, by striking ‘‘$350’’ and 
inserting ‘‘$2,000’’; and 
(2) by striking the second sentence. 
SEC. 111. ESCROW OF FLOOD INSURANCE PAYMENTS. 
(a) IN GENERAL.—Section 102(d) of the Flood Dis-
aster Protection Act of 1973 (42 U.S.C. 4012a(d)) is 
amended—
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) REGULATED LENDING INSTITUTIONS.—
‘‘(A) FEDERAL ENTITIES RESPONSIBLE FOR 
LENDING
REGULATIONS.—Each Federal entity 
for lending regulation (after consultation and co-
ordination with the Federal Financial Institu-
tions Examination Council) shall, by regulation, 
direct that any premiums and fees for flood in-
surance under the National Flood Insurance Act 
of 1968, on any property for which a loan has 
been made for acquisition or construction pur-
poses, shall be paid to the mortgage lender, with
the same frequency as payments on the loan are 
made, for the duration of the loan. Upon receipt 
of any premiums or fees, the lender shall deposit 
such premiums and fees in an escrow account on 
behalf of the borrower. Upon receipt of a notice 
from the Director or the provider of the flood in-
surance that insurance premiums are due, the 
remaining balance of an escrow account shall be 
paid to the provider of the flood insurance. 
‘‘(B) STATE
ENTITIES
RESPONSIBLE
FOR 
LENDING REGULATIONS.—In order to continue to 
participate in the flood insurance program, each 
State shall direct that its entity or agency with 
primary responsibility for the supervision of 
lending institutions in that State require that 
premiums and fees for flood insurance under the 
National Flood Insurance Act of 1968, on any 
property for which a loan has been made for ac-
quisition or construction purposes shall be paid 
to the mortgage lender, with the same frequency 
as payments on the loan are made, for the dura-
tion of the loan. Upon receipt of any premiums 
or fees, the lender shall deposit such premiums 
and fees in an escrow account on behalf of the 
borrower. Upon receipt of a notice from such
State entity or agency, the Director, or the pro-
vider of the flood insurance that insurance pre-
miums are due, the remaining balance of an es-
crow account shall be paid to the provider of the 
flood insurance.’’; and 
(2) by adding at the end the following: 
‘‘(6) NOTICE UPON LOAN TERMINATION.—Upon 
final payment of the mortgage, a regulated lending 
institution shall provide notice to the policyholder 
that insurance coverage may cease with such final 
payment. The regulated lending institution shall also 
provide direction as to how the homeowner may con-
tinue flood insurance coverage after the life of the 
loan.’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a)(1) shall apply to any mortgage outstanding or 
entered into on or after the expiration of the 2-year period 
beginning on the date of enactment of this title. 
SEC. 112. BORROWING AUTHORITY DEBT FORGIVENESS. 
(a) IN GENERAL.—The Secretary of the Treasury re-
linquishes the right to any repayment of amounts due from 
the Director in connection with the exercise of the authority 
vested to the Director to borrow such sums under section 
1309 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4016), to the extent such borrowed sums were used
to fund the payment of flood insurance claims under the 
National Flood Insurance Program for any damage to or 
loss of property resulting from the hurricanes of 2005. 
(b) CERTIFICATION.—The debt forgiveness described 
under subsection (a) shall only take effect if the Director 
certifies to the Secretary of Treasury that all authorized re-
sources or funds available to the Director to operate the Na-
tional Flood Insurance Program—
(1) have been otherwise obligated to pay claims 
under the National Flood Insurance Program; and 
(2) are not otherwise available to make pay-
ments to the Secretary on any outstanding notes or 
obligations issued by the Director and held by the 
Secretary. 
(c) DECREASE IN BORROWING AUTHORITY.—The first 
sentence of subsection (a) of section 1309 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) is amend-
ed by striking ‘‘; except that, through September 30, 2008, 
clause (2) of this sentence shall be applied by substituting 
‘$20,775,000,000’ for ‘$1,500,000,000’ ’’. 
SEC. 113. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE 
NATIONAL FLOOD INSURANCE PROGRAM. 
Section 1312 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4019) is amended—
(1) by striking ‘‘The Director is’’ and inserting 
the following: 
‘‘(a) IN GENERAL.—The Director is’’; and 
(2) by adding at the end the following: 
‘‘(b) MINIMUM ANNUAL DEDUCTIBLE.—
‘‘(1) PRE-FIRM PROPERTIES.—For any structure 
which is covered by flood insurance under this title, 
and on which construction or substantial improve-
ment occurred on or before December 31, 1974, or be-
fore the effective date of an initial flood insurance 
rate map published by the Director under section 
1360 for the area in which such structure is located, 
the minimum annual deductible for damage to such 
structure shall be—
‘‘(A) $1,500, if the flood insurance coverage 
for such structure covers loss of, or physical dam-
age to, such structure in an amount equal to or 
less than $100,000; and 
‘‘(B) $2,000, if the flood insurance coverage 
for such structure covers loss of, or physical dam-
age to, such structure in an amount greater than 
$100,000. 
‘‘(2) POST-FIRM PROPERTIES.—For any struc-
ture which is covered by flood insurance under this 
title, and on which construction or substantial im-
provement occurred after December 31, 1974, or after 
the effective date of an initial flood insurance rate 
map published by the Director under section 1360 for 
the area in which such structure is located, the min-
imum annual deductible for damage to such structure 
shall be—
‘‘(A) $750, if the flood insurance coverage 
for such structure covers loss of, or physical dam-
age to, such structure in an amount equal to or 
less than $100,000; and 
‘‘(B) $1,000, if the flood insurance coverage 
for such structure covers loss of, or physical dam-
age to, such structure in an amount greater than 
$100,000.’’. 
SEC. 114. CONSIDERATIONS IN DETERMINING CHARGEABLE 
PREMIUM RATES. 
Section 1308 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4015(b)) is amended—
(1) in subsection (a), by striking ‘‘, after con-
sultation with’’ and all that follows through ‘‘by regu-
lation’’ and inserting ‘‘prescribe, after providing no-
tice’’; 
(2) in subsection (b)—
(A) in paragraph (1), by striking the period 
at the end and inserting a semicolon;
(B) in paragraph (2), by striking the 
comma at the end and inserting a semicolon; 
(C) in paragraph (3), by striking ‘‘, and’’ 
and inserting a semicolon; 
(D) in paragraph (4), by striking the pe-
riod and inserting ‘‘; and’’; and 
(E) by adding at the end the following: 
‘‘(5) adequate, on the basis of accepted actuarial 
principles, to cover the average historical loss year ob-
ligations incurred by the National Flood Insurance 
Fund.’’; and 
(3) by adding at the end the following: 
‘‘(h) RULE OF CONSTRUCTION.—For purposes of this 
section, the calculation of an ‘average historical loss year’—
‘‘(1) includes catastrophic loss years; and 
‘‘(2) shall be computed in accordance with gen-
erally accepted actuarial principles.’’. 
SEC. 115. RESERVE FUND. 
Chapter I of the National Flood Insurance Act of 1968 
(42 U.S.C. 4011 et seq.) is amended by inserting after sec-
tion 1310 the following: 
‘‘SEC. 1310A. RESERVE FUND. 
‘‘(a) ESTABLISHMENT OF RESERVE FUND.—In car-
rying out the flood insurance program authorized by this 
chapter, the Director shall establish in the Treasury of the
United States a National Flood Insurance Reserve Fund 
(in this section referred to as the ‘Reserve Fund’) which 
shall—
‘‘(1) be an account separate from any other ac-
counts or funds available to the Director; and 
‘‘(2) be available for meeting the expected future 
obligations of the flood insurance program. 
‘‘(b) RESERVE RATIO.—Subject to the phase-in re-
quirements under subsection (d), the Reserve Fund shall 
maintain a balance equal to—
‘‘(1) 1 percent of the sum of the total potential 
loss exposure of all outstanding flood insurance poli-
cies in force in the prior fiscal year; or 
‘‘(2) such higher percentage as the Director deter-
mines to be appropriate, taking into consideration 
any circumstance that may raise a significant risk of 
substantial future losses to the Reserve Fund. 
‘‘(c) MAINTENANCE OF RESERVE RATIO.—
‘‘(1) IN GENERAL.—The Director shall have the 
authority to establish, increase, or decrease the 
amount of aggregate annual insurance premiums to 
be collected for any fiscal year necessary—
‘‘(A) to maintain the reserve ratio required 
under subsection (b); and
‘‘(B) to achieve such reserve ratio, if the ac-
tual balance of such reserve is below the amount 
required under subsection (b). 
‘‘(2) CONSIDERATIONS.—In exercising the au-
thority granted under paragraph (1), the Director 
shall consider—
‘‘(A) the expected operating expenses of the 
Reserve Fund; 
‘‘(B) the insurance loss expenditures under 
the flood insurance program; 
‘‘(C) any investment income generated 
under the flood insurance program; and 
‘‘(D) any other factor that the Director de-
termines appropriate. 
‘‘(3) LIMITATIONS.—In exercising the authority 
granted under paragraph (1), the Director shall be 
subject to all other provisions of this Act, including 
any provisions relating to chargeable premium rates 
or annual increases of such rates. 
‘‘(d) PHASE-IN REQUIREMENTS.—The phase-in re-
quirements under this subsection are as follows: 
‘‘(1) IN
GENERAL.—Beginning in fiscal year 
2008 and not ending until the fiscal year in which 
the ratio required under subsection (b) is achieved, in 
each such fiscal year the Director shall place in the
Reserve Fund an amount equal to not less than 7.5 
percent of the reserve ratio required under subsection 
(b). 
‘‘(2) AMOUNT SATISFIED.—As soon as the ratio 
required under subsection (b) is achieved, and except 
as provided in paragraph (3), the Director shall not 
be required to set aside any amounts for the Reserve 
Fund. 
‘‘(3) EXCEPTION.—If at any time after the ratio 
required under subsection (b) is achieved, the Reserve 
Fund falls below the required ratio under subsection 
(b), the Director shall place in the Reserve Fund for 
that fiscal year an amount equal to not less than 7.5 
percent of the reserve ratio required under subsection 
(b). 
‘‘(e) LIMITATION ON RESERVE RATIO.—In any given 
fiscal year, if the Director determines that the reserve ratio 
required under subsection (b) cannot be achieved, the Direc-
tor shall submit a report to Congress that—
‘‘(1) describes and details the specific concerns of 
the Director regarding such consequences; 
‘‘(2) demonstrates how such consequences would 
harm the long-term financial soundness of the flood 
insurance program; and
‘‘(3) indicates the maximum attainable reserve 
ratio for that particular fiscal year.’’. 
SEC. 116. REPAYMENT PLAN FOR BORROWING AUTHORITY. 
Section 1309 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4016) is amended by adding at the end 
the following: 
‘‘(c) Any funds borrowed by the Director under the au-
thority established in subsection (a) shall include a schedule 
for repayment of such amounts which shall be transmitted 
to the—
‘‘(1) Secretary of the Treasury; 
‘‘(2) Committee on Banking, Housing, and 
Urban Affairs of the Senate; and 
‘‘(3) Committee on Financial Services of the 
House of Representatives. 
‘‘(d) In addition to the requirement under subsection 
(c), in connection with any funds borrowed by the Director 
under the authority established in subsection (a), the Direc-
tor, beginning 6 months after the date on which such bor-
rowed funds are issued, and continuing every 6 months 
thereafter until such borrowed funds are fully repaid, shall 
submit a report on the progress of such repayment to the—
‘‘(1) Secretary of the Treasury; 
‘‘(2) Committee on Banking, Housing, and 
Urban Affairs of the Senate; and
‘‘(3) Committee on Financial Services of the 
House of Representatives.’’. 
SEC. 117. PAYMENT OF CONDOMINIUM CLAIMS. 
Section 1312 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4019), as amended by section 113, is fur-
ther amended by adding at the end the following: 
‘‘(c) PAYMENT OF CLAIMS TO CONDOMINIUM OWN-
ERS.—The Director may not deny payment for any damage 
to or loss of property which is covered by flood insurance 
to condominium owners who purchased such flood insur-
ance separate and apart from the flood insurance purchased 
by the condominium association in which such owner is a 
member, based, solely or in any part, on the flood insurance 
coverage of the condominium association or others on the 
overall property owned by the condominium association. 
Notwithstanding any regulations, rules, or restrictions es-
tablished by the Director relating to appeals and filing 
deadlines, the Director shall ensure that the requirements 
of this subsection are met with respect to any claims for 
damages resulting from flooding in 2005 and 2006.’’. 
SEC. 118. TECHNICAL MAPPING ADVISORY COUNCIL. 
(a) ESTABLISHMENT.—There is established a council 
to be known as the Technical Mapping Advisory Council 
(in this section referred to as the ‘‘Council’’). 
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Council shall consist of 
the Director, or the designee thereof, and 12 addi-
tional members to be appointed by the Director or the 
designee of the Director, who shall be—
(A) the Under Secretary of Commerce for 
Oceans and Atmosphere (or the designee thereof); 
(B) a member of a recognized professional 
surveying association or organization 
(C) a member of a recognized professional 
mapping association or organization; 
(D) a member of a recognized professional 
engineering association or organization; 
(E) a member of a recognized professional 
association or organization representing flood 
hazard determination firms; 
(F) a representative of the United States 
Geological Survey; 
(G) a representative of a recognized profes-
sional association or organization representing 
State geographic information; 
(H) a representative of State national flood 
insurance coordination offices; 
(I) a representative of the Corps of Engi-
neers;
(J) the Secretary of the Interior (or the des-
ignee thereof); 
(K) the Secretary of Agriculture (or the des-
ignee thereof); 
(L) a member of a recognized regional flood 
and storm water management organization; 
(M) a representative of a State agency that 
has entered into a cooperating technical partner-
ship with the Director and has demonstrated the 
capability to produce flood insurance rate maps; 
and 
(N) a representative of a local government 
agency that has entered into a cooperating tech-
nical partnership with the Director and has 
demonstrated the capability to produce flood in-
surance rate maps. 
(2) QUALIFICATIONS.—Members of the Council 
shall be appointed based on their demonstrated knowl-
edge and competence regarding surveying, cartog-
raphy, remote sensing, geographic information sys-
tems, or the technical aspects of preparing and using 
flood insurance rate maps. 
(c) DUTIES.—The Council shall—
(1) recommend to the Director how to improve in 
a cost-effective manner the—
(A) accuracy, general quality, ease of use, 
and distribution and dissemination of flood in-
surance rate maps and risk data; and 
(B) performance metrics and milestones re-
quired to effectively and efficiently map flood 
risk areas in the United States; 
(2) recommend to the Director mapping stand-
ards and guidelines for—
(A) flood insurance rate maps; and 
(B) data accuracy, data quality, data cur-
rency, and data eligibility; 
(3) recommend to the Director how to maintain 
on an ongoing basis flood insurance rate maps and 
flood risk identification; 
(4) recommend procedures for delegating map-
ping activities to State and local mapping partners; 
(5) recommend to the Director and other Federal 
agencies participating in the Council—
(A) methods for improving interagency and 
intergovernmental coordination on flood map-
ping and flood risk determination; and 
(B) a funding strategy to leverage and co-
ordinate budgets and expenditures across Federal 
agencies; and
(6) submit an annual report to the Director that 
contains—
(A) a description of the activities of the 
Council; 
(B) an evaluation of the status and per-
formance of flood insurance rate maps and map-
ping activities to revise and update flood insur-
ance rate maps, as required under section 119; 
and 
(C) a summary of recommendations made 
by the Council to the Director. 
(d) FUTURE CONDITIONS RISK ASSESSMENT
AND 
MODELING REPORT.—
(1) IN
GENERAL.—The Council shall consult 
with scientists and technical experts, other Federal 
agencies, States, and local communities to—
(A) develop recommendations on how to—
(i) ensure that flood insurance rate 
maps incorporate the best available climate 
science to assess flood risks; and 
(ii) ensure that the Federal Emergency 
Management Agency uses the best available 
methodology to consider the impact of—
(I) the rise in the sea level; and
(II) future development on flood 
risk; and 
(B) not later than 1 year after the date of 
enactment of this title, prepare written rec-
ommendations in a future conditions risk assess-
ment and modeling report and to submit such 
recommendations to the Director. 
(2) RESPONSIBILITY
OF
THE
DIRECTOR.—The 
Director, as part of the ongoing program to review 
and update National Flood Insurance Program rate 
maps under section 119, shall incorporate any future 
risk assessment submitted under paragraph (1)(B) in 
any such revision or update. 
(e) CHAIRPERSON.—The members of the Council shall 
elect 1 member to serve as the chairperson of the Council 
(in this section referred to as the ‘‘Chairperson’’). 
(f) COORDINATION.—To ensure that the Council’s rec-
ommendations are consistent, to the maximum extent prac-
ticable, with national digital spatial data collection and 
management standards, the Chairperson shall consult with 
the Chairperson of the Federal Geographic Data Committee 
(established pursuant to OMB Circular A–16). 
(g) COMPENSATION.—Members of the Council shall re-
ceive no additional compensation by reason of their service 
on the Council.
(h) MEETINGS AND ACTIONS.—
(1) IN GENERAL.—The Council shall meet not 
less frequently than twice each year at the request of 
the Chairperson or a majority of its members, and 
may take action by a vote of the majority of the mem-
bers. 
(2) INITIAL MEETING.—The Director, or a person 
designated by the Director, shall request and coordi-
nate the initial meeting of the Council. 
(i) OFFICERS.—The Chairperson may appoint officers 
to assist in carrying out the duties of the Council under 
subsection (c). 
(j) STAFF.—
(1) STAFF OF FEMA.—Upon the request of the 
Chairperson, the Director may detail, on a non-
reimbursable basis, personnel of the Federal Emer-
gency Management Agency to assist the Council in 
carrying out its duties. 
(2) STAFF
OF
OTHER
FEDERAL
AGENCIES.—
Upon request of the Chairperson, any other Federal 
agency that is a member of the Council may detail, 
on a non-reimbursable basis, personnel to assist the 
Council in carrying out its duties. 
(k) POWERS.—In carrying out this section, the Coun-
cil may hold hearings, receive evidence and assistance, pro-