IB 
Union Calendar No. 155 
115TH CONGRESS 
1ST SESSION H. R. 1422 
[Report No. 115–220] 
To amend the Flood Disaster Protection Act of 1973 to require that certain 
buildings and personal property be covered by flood insurance, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 8, 2017 
Mr. ROSS (for himself and Ms. CASTOR of Florida) introduced the following 
bill; which was referred to the Committee on Financial Services 
JULY 14, 2017 
Additional sponsors: Mr. HOLLINGSWORTH, Mr. MOONEY of West Virginia, 
Mr. POSEY, Mr. LOUDERMILK, Mr. PALAZZO, Mr. KIND, Mr. THOMAS J. 
ROONEY of Florida, Mr. HASTINGS, Mr. ROKITA, Mr. DIAZ-BALART, Mr. 
BILIRAKIS, Mr. BUDD, Mr. FITZPATRICK, Mr. COFFMAN, Mrs. DEMINGS, 
Mr. LUETKEMEYER, Mr. SMITH of Missouri, Mr. HIMES, Mr. WILLIAMS, 
and Mr. RENACCI 
JULY 14, 2017 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on March 8, 2017] 
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A BILL 
To amend the Flood Disaster Protection Act of 1973 to 
require that certain buildings and personal property be 
covered by flood insurance, and for other purposes. 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Private Flood Insurance 
Market Development Act of 2017’’. 
SEC. 2. PRIVATE FLOOD INSURANCE. 
(a) MANDATORY PURCHASE REQUIREMENT.— 
(1) AMOUNT AND TERM OF COVERAGE.—Section 
102 of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a) is amended by striking ‘‘Sec. 102. (a)’’ 
and all that follows through the end of subsection (a) 
and inserting the following: 
‘‘SEC. 102. (a) AMOUNT AND TERM OF COVERAGE.— 
After the expiration of sixty days following the date of the 
enactment of this Act, no Federal officer or agency shall 
approve any financial assistance for acquisition or con-
struction purposes for use in any area that has been identi-
fied by the Administrator as an area having special flood 
hazards and in which the sale of flood insurance has been 
made available under the National Flood Insurance Act of 
1968, unless the building or mobile home and any personal 
property to which such financial assistance relates is cov-
ered by flood insurance: Provided, That the amount of flood 
insurance (1) in the case of Federal flood insurance, is at 
least equal to the development or project cost of the building, 
mobile home, or personal property (less estimated land 
cost), the outstanding principal balance of the loan, or the 
maximum limit of Federal flood insurance coverage made 
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available with respect to the particular type of property, 
whichever is less; or (2) in the case of private flood insur-
ance, is at least equal to the development or project cost 
of the building, mobile home, or personal property (less esti-
mated land cost), the outstanding principal balance of the 
loan, or the maximum limit of Federal flood insurance cov-
erage made available with respect to the particular type of 
property, whichever is less: Provided further, That if the 
financial assistance provided is in the form of a loan or 
an insurance or guaranty of a loan, the amount of flood 
insurance required need not exceed the outstanding prin-
cipal balance of the loan and need not be required beyond 
the term of the loan. The requirement of maintaining flood 
insurance shall apply during the life of the property, re-
gardless of transfer of ownership of such property.’’. 
(2) REQUIREMENT
FOR
MORTGAGE
LOANS.— 
Subsection (b) of section 102 of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4012a(b)) is 
amended— 
(A) by striking paragraph (7); 
(B) by redesignating paragraph (6) as 
paragraph (7); 
(C) by striking the subsection designation 
and all that follows through the end of para-
graph (5) and inserting the following: 
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‘‘(b) REQUIREMENT FOR MORTGAGE LOANS.— 
‘‘(1) REGULATED LENDING INSTITUTIONS.—Each 
Federal entity for lending regulation (after consulta-
tion and coordination with the Financial Institutions 
Examination Council established under the Federal 
Financial Institutions Examination Council Act of 
1974) shall by regulation direct regulated lending in-
stitutions not to make, increase, extend, or renew any 
loan secured by improved real estate or a mobile home 
located or to be located in an area that has been iden-
tified by the Administrator as an area having special 
flood hazards and in which flood insurance has been 
made available under the National Flood Insurance 
Act of 1968, unless the building or mobile home and 
any personal property securing such loan is covered 
for the term of the loan by flood insurance: Provided, 
That the amount of flood insurance (A) in the case 
of Federal flood insurance, is at least equal to the out-
standing principal balance of the loan or the max-
imum limit of Federal flood insurance coverage made 
available with respect to the particular type of prop-
erty, whichever is less; or (B) in the case of private 
flood insurance, is at least equal to the outstanding 
principal balance of the loan or the maximum limit 
of Federal flood insurance coverage made available 
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with respect to the particular type of property, which-
ever is less. 
‘‘(2) FEDERAL AGENCY LENDERS AND MORTGAGE 
INSURANCE AND GUARANTEE AGENCIES.— 
‘‘(A) FEDERAL AGENCY LENDERS.—A Fed-
eral agency lender may not make, increase, ex-
tend, or renew any loan secured by improved 
real estate or a mobile home located or to be lo-
cated in an area that has been identified by the 
Administrator as an area having special flood 
hazards and in which flood insurance has been 
made available under the National Flood Insur-
ance Act of 1968, unless the building or mobile 
home and any personal property securing such 
loan is covered for the term of the loan by flood 
insurance in accordance with paragraph (1). 
Each Federal agency lender may issue any regu-
lations necessary to carry out this paragraph. 
Such regulations shall be consistent with and 
substantially identical to the regulations issued 
under paragraph (1). 
‘‘(B) OTHER
FEDERAL
MORTGAGE
ENTI-
TIES.— 
‘‘(i) 
COVERAGE
REQUIREMENTS.— 
Each covered Federal mortgage entity shall 
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implement procedures reasonably designed 
to ensure that, for any loan that— 
‘‘(I) is secured by improved real 
estate or a mobile home located in an 
area that has been identified, at the 
time of the origination of the loan or 
at any time during the term of the 
loan, by the Administrator as an area 
having special flood hazards and in 
which flood insurance is available 
under the National Flood Insurance 
Act of 1968, and 
‘‘(II) is made, insured, held, or 
guaranteed by such entity, or backs or 
on which is based any trust certificate 
or other security for which such entity 
guarantees the timely payment of prin-
cipal and interest, 
the building or mobile home and any per-
sonal property securing the loan is covered 
for the term of the loan by flood insurance 
in the amount provided in paragraph (1). 
‘‘(ii) DEFINITION.—For purposes of 
this subparagraph, the term ‘covered Fed-
eral mortgage entity’ means— 
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‘‘(I) the Secretary of Housing and 
Urban Development, with respect to 
mortgages insured under the National 
Housing Act; 
‘‘(II) the Secretary of Agriculture, 
with respect to loans made, insured, or 
guaranteed under title V of the Hous-
ing Act of 1949; and 
‘‘(III) the Government National 
Mortgage Association. 
‘‘(C) REQUIREMENT TO ACCEPT FLOOD IN-
SURANCE.—Each Federal agency lender and 
each covered Federal mortgage entity shall accept 
flood insurance as satisfaction of the flood insur-
ance coverage requirement under subparagraph 
(A) or (B), respectively, if the flood insurance 
coverage meets the requirements for coverage 
under such subparagraph and the requirements 
relating to financial strength issued pursuant to 
paragraph (4). 
‘‘(3) 
GOVERNMENT-SPONSORED
ENTERPRISES 
FOR HOUSING.—The Federal National Mortgage Asso-
ciation and the Federal Home Loan Mortgage Cor-
poration shall implement procedures reasonably de-
signed to ensure that, for any loan that is— 
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‘‘(A) secured by improved real estate or a 
mobile home located in an area that has been 
identified, at the time of the origination of the 
loan or at any time during the term of the loan, 
by the Administrator as an area having special 
flood hazards and in which flood insurance is 
available under the National Flood Insurance 
Act of 1968, and 
‘‘(B) purchased or guaranteed by such enti-
ty, 
the building or mobile home and any personal prop-
erty securing the loan is covered for the term of the 
loan by flood insurance in the amount provided in 
paragraph (1). The Federal National Mortgage Asso-
ciation and the Federal Home Loan Mortgage Cor-
poration shall accept flood insurance as satisfaction 
of the flood insurance coverage requirement under 
paragraph (1) if the flood insurance coverage pro-
vided meets the requirements for coverage under that 
paragraph and the requirements relating to financial 
strength issued pursuant to paragraph (4). 
‘‘(4) REQUIREMENTS
REGARDING
FINANCIAL 
STRENGTH.—The Director of the Federal Housing Fi-
nance Agency, in consultation with the Federal Na-
tional Mortgage Association, the Federal Home Loan 
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Mortgage Corporation, the Secretary of Housing and 
Urban Development, the Government National Mort-
gage Association, and the Secretary of Agriculture 
shall develop and implement requirements relating to 
the financial strength of private insurance companies 
from which such entities and agencies will accept pri-
vate flood insurance, provided that such requirements 
shall not affect or conflict with any State law, regula-
tion, or procedure concerning the regulation of the 
business of insurance. 
‘‘(5) APPLICABILITY.— 
‘‘(A) EXISTING COVERAGE.—Except as pro-
vided in subparagraph (B), paragraph (1) shall 
apply on the date of enactment of the Riegle 
Community Development and Regulatory Im-
provement Act of 1994. 
‘‘(B) NEW COVERAGE.—Paragraphs (2) and 
(3) shall apply only with respect to any loan 
made, increased, extended, or renewed after the 
expiration of the 1-year period beginning on the 
date of enactment of the Riegle Community De-
velopment and Regulatory Improvement Act of 
1994. Paragraph (1) shall apply with respect to 
any loan made, increased, extended, or renewed 
by any lender supervised by the Farm Credit 
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Administration only after the expiration of the 
period under this subparagraph. 
‘‘(C) CONTINUED
EFFECT
OF
REGULA-
TIONS.—Notwithstanding any other provision of 
this subsection, the regulations to carry out 
paragraph (1), as in effect immediately before 
the date of enactment of the Riegle Community 
Development and Regulatory Improvement Act 
of 1994, shall continue to apply until the regula-
tions issued to carry out paragraph (1) as 
amended by section 522(a) of such Act take ef-
fect. 
‘‘(6) RULE OF CONSTRUCTION.—Except as other-
wise specified, any reference to flood insurance in this 
section shall be considered to include Federal flood in-
surance and private flood insurance. Nothing in this 
subsection shall be construed to supersede or limit the 
authority of a Federal entity for lending regulation, 
the Federal Housing Finance Agency, a Federal agen-
cy lender, a covered Federal mortgage entity (as such 
term is defined in paragraph (2)(B)(ii)), the Federal 
National Mortgage Association, or the Federal Home 
Loan Mortgage Corporation to establish requirements 
relating to the financial strength of private insurance 
companies from which the entity or agency will ac-
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cept private flood insurance, provided that such re-
quirements shall not affect or conflict with any State 
law, regulation, or procedure concerning the regula-
tion of the business of insurance.’’; and 
(D) by adding at the end the following new 
paragraphs: 
‘‘(8) DEFINITIONS.—In this section: 
‘‘(A) FLOOD INSURANCE.—The term ‘flood 
insurance’ means— 
‘‘(i) Federal flood insurance; and 
‘‘(ii) private flood insurance. 
‘‘(B) FEDERAL
FLOOD
INSURANCE.—The 
term ‘Federal flood insurance’ means an insur-
ance policy made available under the National 
Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
seq.). 
‘‘(C) PRIVATE
FLOOD
INSURANCE.—The 
term ‘private flood insurance’ means an insur-
ance policy that— 
‘‘(i) is issued by an insurance com-
pany that is— 
‘‘(I) licensed, admitted, or other-
wise approved to engage in the busi-
ness of insurance in the State in which 
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the insured building is located, by the 
insurance regulator of that State; or 
‘‘(II) eligible as a nonadmitted 
insurer to provide insurance in the 
home State of the insured, in accord-
ance with sections 521 through 527 of 
the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (15 
U.S.C. 8201 through 8206); 
‘‘(ii) is issued by an insurance com-
pany that is not otherwise disapproved as a 
surplus lines insurer by the insurance regu-
lator of the State in which the property to 
be insured is located; and 
‘‘(iii) provides flood insurance coverage 
that complies with the laws and regulations 
of that State. 
‘‘(D) STATE.—The term ‘State’ means any 
State of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, Guam, 
the Northern Mariana Islands, the Virgin Is-
lands, and American Samoa.’’. 
(b) EFFECT
OF PRIVATE FLOOD INSURANCE COV-
ERAGE ON CONTINUOUS COVERAGE REQUIREMENTS.—Sec-
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tion 1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015) is amended by adding at the end the following: 
‘‘(n) EFFECT OF PRIVATE FLOOD INSURANCE COV-
ERAGE ON CONTINUOUS COVERAGE REQUIREMENTS.—For 
purposes of applying any statutory, regulatory, or adminis-
trative continuous coverage requirement, including under 
section 1307(g)(1), the Administrator shall consider any pe-
riod during which a property was continuously covered by 
private flood insurance (as defined in section 102(b)(8) of 
the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a(b)(8))) to be a period of continuous coverage.’’. 
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Union Calendar No. 155 
115TH CONGRESS 
1ST SESSION 
H. R. 1422 
[Report No. 115–220] 
A BILL 
To amend the Flood Disaster Protection Act of 
1973 to require that certain buildings and per-
sonal property be covered by flood insurance, and 
for other purposes. 
JULY 14, 2017 
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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