property owners and renters on flood insurance options 
while strengthening the national flood insurance program. 
SEC. 3. FLOOD INSURANCE OUTREACH GRANTS. 
Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.) is amended by adding at 
the end the following new section: 
‘‘SEC. 1325. GRANTS FOR OUTREACH TO PROPERTY OWN-
ERS AND RENTERS. 
‘‘(a) IN GENERAL.—The Director may, to the extent 
amounts are made available pursuant to subsection (h), 
make grants to local governmental agencies responsible for 
floodplain management activities (including such agencies 
of Indians tribes, as such term is defined in section 4 of 
the Native American Housing Assistance and Self-Deter-
mination Act of 1996 (25 U.S.C. 4103)) in communities 
that participate in the national flood insurance program 
under this title, for use by such agencies to carry out out-
reach activities to encourage and facilitate the purchase 
of flood insurance protection under this Act by owners and 
renters of properties in such communities and to promote 
educational activities that increase awareness of flood risk 
reduction. 
‘‘(b) OUTREACH ACTIVITIES.—Amounts from a grant 
under this section shall be used only for activities designed 
to— 
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‘‘(1) identify owners and renters of properties 
in communities that participate in the national flood 
insurance program, including owners of residential 
and commercial properties; 
‘‘(2) notify such owners and renters when their 
properties become included in, or when they are ex-
cluded from, an area having special flood hazards 
and the effect of such inclusion or exclusion on the 
applicability of the mandatory flood insurance pur-
chase requirement under section 102 of the Flood 
Disaster Protection Act of 1973 (42 U.S.C. 4012a) 
to such properties; 
‘‘(3) 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 insur-
ance mandatory purchase requirement; 
‘‘(4) educate such owners and renters regarding 
the benefits and costs of maintaining or acquiring 
flood insurance, including, where applicable, lower- 
cost preferred risk policies under this title for such 
properties and the contents of such properties; and 
‘‘(5) encouraging such owners and renters to 
maintain or acquire such coverage. 
‘‘(c) COST SHARING REQUIREMENT.— 
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‘‘(1) IN GENERAL.—In any fiscal year, the Di-
rector may not provide a grant under this section to 
a local governmental agency in an amount exceeding 
3 times the amount that the agency certifies, as the 
Director shall require, that the agency will con-
tribute from non-Federal funds to be used with 
grant amounts only for carrying out activities de-
scribed in subsection (b). 
‘‘(2) NON-FEDERAL FUNDS.—For purposes of 
this subsection, the term ‘non-Federal funds’ in-
cludes State or local government agency amounts, 
in-kind contributions, any salary paid to staff to 
carry out the eligible activities of the grant recipient, 
the value of the time and services contributed by vol-
unteers to carry out such services (at a rate deter-
mined by the Director), and the value of any do-
nated material or building and the value of any lease 
on a building. 
‘‘(d) ADMINISTRATIVE COST LIMITATION.—Notwith-
standing subsection (b), the Director may use not more 
than 5 percent of amounts made available under sub-
section (g) to cover salaries, expenses, and other adminis-
trative costs incurred by the Director in making grants 
and provide assistance under this section. 
‘‘(e) APPLICATION AND SELECTION.— 
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‘‘(1) IN GENERAL.—The Director shall provide 
for local governmental agencies described in sub-
section (a) to submit applications for grants under 
this section and for competitive selection, based on 
criteria established by the Director, of agencies sub-
mitting such applications to receive such grants. 
‘‘(2) SELECTION CONSIDERATIONS.—In select-
ing applications of local government agencies to re-
ceive grants under paragraph (1), the Director shall 
consider— 
‘‘(A) the existence of a cooperative tech-
nical partner agreement between the local gov-
ernmental agency and the Federal Emergency 
Management Agency; 
‘‘(B) the history of flood losses in the rel-
evant area that have occurred to properties, 
both inside and outside the special flood haz-
ards zones, which are not covered by flood in-
surance coverage; 
‘‘(C) the estimated percentage of high-risk 
properties located in the relevant area that are 
not covered by flood insurance; 
‘‘(D) demonstrated success of the local 
governmental agency in generating voluntary 
purchase of flood insurance; and 
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‘‘(E) demonstrated technical capacity of 
the local governmental agency for outreach to 
individual property owners. 
‘‘(f) DIRECT OUTREACH BY FEMA.—In each fiscal 
year that amounts for grants are made available pursuant 
to subsection (g), the Director may use not more than 50 
percent of such amounts to carry out, and to enter into 
contracts with other entities to carry out, activities de-
scribed in subsection (b) in areas that the Director deter-
mines have the most immediate need for such activities. 
‘‘(g) REPORTING.—Each local government agency 
that receives a grant under this section, and each entity 
that receives amounts pursuant to subsection (f), shall 
submit a report to the Director, not later than 12 months 
after such amounts are first received, which shall include 
such information as the Director considers appropriate to 
describe the activities conducted using such amounts and 
the effect of such activities on the retention or acquisition 
of flood insurance coverage. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated for grants under this sec-
tion $50,000,000 for each of fiscal years 2007 through 
2011.’’. 
Æ 
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