HR 1309 RFS
a lender or servicer from purchasing coverage on be-
half of a borrower pursuant to subsection (e). 
‘‘(3) ELIGIBLE AREAS.—An eligible area under 
this paragraph is an area that is designated or will, 
pursuant to any issuance, revision, updating, or 
other change in flood insurance maps that takes ef-
fect on or after the date of the enactment of the 
Flood Insurance Reform Act of 2011, become des-
ignated as an area having special flood hazards and 
that meets any one of the following 3 requirements: 
‘‘(A) AREAS WITH NO HISTORY OF SPE-
CIAL FLOOD HAZARDS.—The area does not in-
clude any area that has ever previously been 
designated as an area having special flood haz-
ards. 
‘‘(B) AREAS
WITH
FLOOD
PROTECTION 
SYSTEMS
UNDER
IMPROVEMENTS.—The area 
was intended to be protected by a flood protec-
tion system— 
‘‘(i) that has been decertified, or is re-
quired to be certified, as providing protec-
tion for the 100-year frequency flood 
standard; 
‘‘(ii) that is being improved, con-
structed, or reconstructed; and 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
‘‘(iii) for which the Administrator has 
determined measurable progress toward 
completion of such improvement, construc-
tion, reconstruction is being made and to-
ward securing financial commitments suffi-
cient to fund such completion. 
‘‘(C) AREAS
FOR
WHICH
APPEAL
HAS 
BEEN FILED.—An area for which a community 
has appealed designation of the area as having 
special flood hazards in a timely manner under 
section 1363. 
‘‘(4) EXTENSION OF DELAY.—Upon a request 
submitted by a local government authority having 
jurisdiction over any portion of the eligible area, the 
Administrator may extend the period during which a 
finding under paragraph (1) shall be effective, ex-
cept that— 
‘‘(A) each such extension under this para-
graph shall not be for a period exceeding 12 
months; and 
‘‘(B) for any area, the cumulative number 
of such extensions may not exceed 2. 
‘‘(5) ADDITIONAL
EXTENSION
FOR
COMMU-
NITIES MAKING MORE THAN ADEQUATE PROGRESS 
ON FLOOD PROTECTION SYSTEM.— 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
‘‘(A) EXTENSION.— 
‘‘(i) AUTHORITY.—Except as provided 
in subparagraph (B), in the case of an eli-
gible area for which the Administrator has, 
pursuant to paragraph (4), extended the 
period of effectiveness of the finding under 
paragraph (1) for the area, upon a request 
submitted by a local government authority 
having jurisdiction over any portion of the 
eligible area, if the Administrator finds 
that more than adequate progress has been 
made on the construction of a flood protec-
tion system for such area, as determined in 
accordance with the last sentence of sec-
tion 1307(e) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4014(e)), the 
Administrator may, in the discretion of the 
Administrator, further extend the period 
during which the finding under paragraph 
(1) shall be effective for such area for an 
additional 12 months. 
‘‘(ii) LIMIT.—For any eligible area, 
the cumulative number of extensions under 
this subparagraph may not exceed 2. 
‘‘(B) EXCLUSION FOR NEW MORTGAGES.— 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
‘‘(i) 
EXCLUSION.—Any 
extension 
under subparagraph (A) of this paragraph 
of a finding under paragraph (1) shall not 
be effective with respect to any excluded 
property after the origination, increase, ex-
tension, or renewal of the loan referred to 
in clause (ii)(II) for the property. 
‘‘(ii) EXCLUDED
PROPERTIES.—For 
purposes of this subparagraph, the term 
‘excluded property’ means any improved 
real estate or mobile home— 
‘‘(I) that is located in an eligible 
area; and 
‘‘(II) for which, during the period 
that any extension under subpara-
graph (A) of this paragraph of a find-
ing under paragraph (1) is otherwise 
in effect for the eligible area in which 
such property is located— 
‘‘(aa) a loan that is secured 
by the property is originated; or 
‘‘(bb) any existing loan that 
is secured by the property is in-
creased, extended, or renewed. 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
‘‘(6) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection may be construed to affect the appli-
cability of a designation of any area as an area hav-
ing special flood hazards for purposes of the avail-
ability of flood insurance coverage, criteria for land 
management and use, notification of flood hazards, 
eligibility for mitigation assistance, or any other pur-
pose or provision not specifically referred to in para-
graph (2). 
‘‘(7) REPORTS.—The Administrator shall, in 
each annual report submitted pursuant to section 
1320, include information identifying each finding 
under paragraph (1) by the Administrator during 
the preceding year that an area is an area having 
special flood hazards, the basis for each such find-
ing, any extensions pursuant to paragraph (4) of the 
periods of effectiveness of such findings, and the 
reasons for such extensions.’’. 
(2) NO REFUNDS.—Nothing in this subsection 
or the amendments made by this subsection may be 
construed to authorize or require any payment or re-
fund for flood insurance coverage purchased for any 
property that covered any period during which such 
coverage is not required for the property pursuant to 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
the applicability of the amendment made by para-
graph (1). 
(b) TERMINATION OF FORCE-PLACED INSURANCE.— 
Section 102(e) of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a(e)) is amended— 
(1) in paragraph (2), by striking ‘‘insurance.’’ 
and inserting ‘‘insurance, including premiums or 
fees incurred for coverage beginning on the date on 
which flood insurance coverage lapsed or did not 
provide a sufficient coverage amount.’’; 
(2) by redesignating paragraphs (3) and (4) as 
paragraphs (5) and 6), respectively; and 
(3) by inserting after paragraph (2) the fol-
lowing new paragraphs: 
‘‘(3) TERMINATION OF FORCE-PLACED INSUR-
ANCE.—Within 30 days of receipt by the lender or 
servicer of a confirmation of a borrower’s existing 
flood insurance coverage, the lender or servicer 
shall— 
‘‘(A) terminate the force-placed insurance; 
and 
‘‘(B) refund to the borrower all force- 
placed insurance premiums paid by the bor-
rower during any period during which the bor-
rower’s flood insurance coverage and the force- 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
placed flood insurance coverage were each in ef-
fect, and any related fees charged to the bor-
rower with respect to the force-placed insurance 
during such period. 
‘‘(4) SUFFICIENCY OF DEMONSTRATION.—For 
purposes of confirming a borrower’s existing flood 
insurance coverage, a lender or servicer for a loan 
shall accept from the borrower an insurance policy 
declarations page that includes the existing flood in-
surance policy number and the identity of, and con-
tact information for, the insurance company or 
agent.’’. 
(c) USE OF PRIVATE INSURANCE TO SATISFY MAN-
DATORY PURCHASE REQUIREMENT.—Section 102(b) of 
the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a(b)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘lending institutions not to 
make’’ and inserting ‘‘lending institutions— 
‘‘(A) not to make’’; 
(B) in subparagraph (A), as designated by 
subparagraph (A) of this paragraph, by striking 
‘‘less.’’ and inserting ‘‘less; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
‘‘(B) to accept private flood insurance as 
satisfaction of the flood insurance coverage re-
quirement under subparagraph (A) if the cov-
erage provided by such private flood insurance 
meets the requirements for coverage under such 
subparagraph.’’; 
(2) in paragraph (2), by inserting after ‘‘pro-
vided in paragraph (1).’’ the following new sentence: 
‘‘Each Federal agency lender shall accept private 
flood insurance as satisfaction of the flood insurance 
coverage requirement under the preceding sentence 
if the flood insurance coverage provided by such pri-
vate flood insurance meets the requirements for cov-
erage under such sentence.’’; 
(3) in paragraph (3), in the matter following 
subparagraph (B), by adding at the end the fol-
lowing new sentence: ‘‘The Federal National Mort-
gage Association and the Federal Home Loan Mort-
gage Corporation shall accept private flood insurance 
as satisfaction of the flood insurance coverage re-
quirement under the preceding sentence if the flood 
insurance coverage provided by such private flood in-
surance meets the requirements for coverage under 
such sentence.’’; and 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(4) by adding at the end the following new 
paragraph: 
‘‘(5) PRIVATE FLOOD INSURANCE DEFINED.— 
In this subsection, the term ‘private flood insurance’ 
means a contract for flood insurance coverage al-
lowed for sale under the laws of any State.’’. 
SEC. 4. REFORMS OF COVERAGE TERMS. 
(a) MINIMUM DEDUCTIBLES FOR CLAIMS.—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 Adminis-
trator is’’; and 
(2) by adding at the end the following: 
‘‘(b) MINIMUM ANNUAL DEDUCTIBLES.— 
‘‘(1) SUBSIDIZED RATE PROPERTIES.—For any 
structure that is covered by flood insurance under 
this title, and for which the chargeable rate for such 
coverage is less than the applicable estimated risk 
premium rate under section 1307(a)(1) for the area 
(or subdivision thereof) in which such structure is 
located, the minimum annual deductible for damage 
to or loss of such structure shall be $2,000. 
‘‘(2) ACTUARIAL RATE PROPERTIES.—For any 
structure that is covered by flood insurance under 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
this title, for which the chargeable rate for such cov-
erage is not less than the applicable estimated risk 
premium rate under section 1307(a)(1) for the area 
(or subdivision thereof) in which such structure is 
located, the minimum annual deductible for damage 
to or loss of such structure shall be $1,000.’’. 
(b) CLARIFICATION OF RESIDENTIAL AND COMMER-
CIAL COVERAGE LIMITS.—Section 1306(b) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) 
is amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘in the case of any residen-
tial property’’ and inserting ‘‘in the case of any 
residential building designed for the occupancy 
of from one to four families’’; and 
(B) by striking ‘‘shall be made available to 
every insured upon renewal and every applicant 
for insurance so as to enable such insured or 
applicant to receive coverage up to a total 
amount (including such limits specified in para-
graph (1)(A)(i)) of $250,000’’ and inserting 
‘‘shall be made available, with respect to any 
single such building, up to an aggregate liability 
(including such limits specified in paragraph 
(1)(A)(i)) of $250,000’’; and 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(2) in paragraph (4)— 
(A) by striking ‘‘in the case of any nonresi-
dential property, including churches,’’ and in-
serting ‘‘in the case of any nonresidential build-
ing, including a church,’’; and 
(B) by striking ‘‘shall be made available to 
every insured upon renewal and every applicant 
for insurance, in respect to any single structure, 
up to a total amount (including such limit spec-
ified in subparagraph (B) or (C) of paragraph 
(1), as applicable) of $500,000 for each struc-
ture and $500,000 for any contents related to 
each structure’’ and inserting ‘‘shall be made 
available with respect to any single such build-
ing, up to an aggregate liability (including such 
limits specified in subparagraph (B) or (C) of 
paragraph (1), as applicable) of $500,000, and 
coverage shall be made available up to a total 
of $500,000 aggregate liability for contents 
owned by the building owner and $500,000 ag-
gregate liability for each unit within the build-
ing for contents owned by the tenant’’. 
(c) INDEXING OF MAXIMUM COVERAGE LIMITS.— 
Subsection (b) of section 1306 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4013(b)) is amended— 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(1) in paragraph (4), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (5), by striking the period at 
the end and inserting ‘‘; and’’; 
(3) by redesignating paragraph (5) as para-
graph (7); and 
(4) by adding at the end the following new 
paragraph: 
‘‘(8) each of the dollar amount limitations 
under paragraphs (2), (3), (4), (5), and (6) shall be 
adjusted effective on the date of the enactment of 
the Flood Insurance Reform Act of 2011, such ad-
justments shall be calculated using the percentage 
change, over the period beginning on September 30, 
1994, and ending on such date of enactment, in 
such inflationary index as the Administrator shall, 
by regulation, specify, and the dollar amount of such 
adjustment shall be rounded to the next lower dollar; 
and the Administrator shall cause to be published in 
the Federal Register the adjustments under this 
paragraph to such dollar amount limitations; except 
that in the case of coverage for a property that is 
made available, pursuant to this paragraph, in an 
amount that exceeds the limitation otherwise appli-
cable to such coverage as specified in paragraph (2), 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(3), (4), (5), or (6), the total of such coverage shall 
be made available only at chargeable rates that are 
not less than the estimated premium rates for such 
coverage determined in accordance with section 
1307(a)(1).’’. 
(d) OPTIONAL COVERAGE FOR LOSS OF USE OF PER-
SONAL RESIDENCE AND BUSINESS INTERRUPTION.—Sub-
section (b) of section 1306 of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4013(b)), as amended by 
the preceding provisions of this section, is further amend-
ed by inserting after paragraph (4) the following new 
paragraphs: 
‘‘(5) the Administrator may provide that, in the 
case of any residential property, each renewal or new 
contract for flood insurance coverage may provide 
not more than $5,000 aggregate liability per dwell-
ing unit for any necessary increases in living ex-
penses incurred by the insured when losses from a 
flood make the residence unfit to live in, except 
that— 
‘‘(A) purchase of such coverage shall be at 
the option of the insured; 
‘‘(B) any such coverage shall be made 
available only at chargeable rates that are not 
less than the estimated premium rates for such 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
coverage determined in accordance with section 
1307(a)(1); and 
‘‘(C) the Administrator may make such 
coverage available only if the Administrator 
makes a determination and causes notice of 
such determination to be published in the Fed-
eral Register that— 
‘‘(i) a competitive private insurance 
market for such coverage does not exist; 
and 
‘‘(ii) the national flood insurance pro-
gram has the capacity to make such cov-
erage available without borrowing funds 
from the Secretary of the Treasury under 
section 1309 or otherwise; 
‘‘(6) the Administrator may provide that, in the 
case of any commercial property or other residential 
property, including multifamily rental property, cov-
erage for losses resulting from any partial or total 
interruption of the insured’s business caused by 
damage to, or loss of, such property from a flood 
may be made available to every insured upon re-
newal and every applicant, up to a total amount of 
$20,000 per property, except that— 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
‘‘(A) purchase of such coverage shall be at 
the option of the insured; 
‘‘(B) any such coverage shall be made 
available only at chargeable rates that are not 
less than the estimated premium rates for such 
coverage determined in accordance with section 
1307(a)(1); and 
‘‘(C) the Administrator may make such 
coverage available only if the Administrator 
makes a determination and causes notice of 
such determination to be published in the Fed-
eral Register that— 
‘‘(i) a competitive private insurance 
market for such coverage does not exist; 
and 
‘‘(ii) the national flood insurance pro-
gram has the capacity to make such cov-
erage available without borrowing funds 
from the Secretary of the Treasury under 
section 1309 or otherwise;’’. 
(e) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR 
RESIDENTIAL PROPERTIES.—Section 1306 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4013) is 
amended by adding at the end the following new sub-
section: 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
‘‘(d) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR 
RESIDENTIAL PROPERTIES.— 
‘‘(1) AUTHORITY.—In addition to any other 
terms and conditions under subsection (a), such reg-
ulations shall provide that, in the case of any resi-
dential property, premiums for flood insurance cov-
erage made available under this title for such prop-
erty may be paid in installments. 
‘‘(2) LIMITATIONS.—In implementing the au-
thority under paragraph (1), the Administrator may 
establish increased chargeable premium rates and 
surcharges, and deny coverage and establish such 
other sanctions, as the Administrator considers nec-
essary to ensure that insureds purchase, pay for, 
and maintain coverage for the full term of a contract 
for flood insurance coverage or to prevent insureds 
from purchasing coverage only for periods during a 
year when risk of flooding is comparatively higher or 
canceling coverage for periods when such risk is 
comparatively lower.’’. 
(f) EFFECTIVE DATE OF POLICIES COVERING PROP-
ERTIES AFFECTED
BY FLOODS
IN PROGRESS.—Para-
graph (1) of section 1306(c) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4013(c)) is amended by add-
ing after the period at the end the following: ‘‘With respect 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
to any flood that has commenced or is in progress before 
the expiration of such 30-day period, such flood insurance 
coverage for a property shall take effect upon the expira-
tion of such 30-day period and shall cover damage to such 
property occurring after the expiration of such period that 
results from such flood, but only if the property has not 
suffered damage or loss as a result of such flood before 
the expiration of such 30-day period.’’. 
SEC. 5. REFORMS OF PREMIUM RATES. 
(a) INCREASE IN ANNUAL LIMITATION ON PREMIUM 
INCREASES.—Section 1308(e) of the National Flood In-
surance Act of 1968 (42 U.S.C. 4015(e)) is amended by 
striking ‘‘10 percent’’ and inserting ‘‘20 percent’’. 
(b) PHASE-IN OF RATES FOR CERTAIN PROPERTIES 
IN NEWLY MAPPED AREAS.— 
(1) IN
GENERAL.—Section 1308 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4015) is amended— 
(A) in subsection (a), in the matter pre-
ceding paragraph (1), by inserting ‘‘or notice’’ 
after ‘‘prescribe by regulation’’; 
(B) in subsection (c), by inserting ‘‘and 
subsection (g)’’ before the first comma; and 
(C) by adding at the end the following new 
subsection: 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
‘‘(g) 5-YEAR
PHASE-IN
OF
FLOOD
INSURANCE 
RATES FOR CERTAIN PROPERTIES IN NEWLY MAPPED 
AREAS.— 
‘‘(1) 
5-YEAR
PHASE-IN
PERIOD.—Notwith-
standing subsection (c) or any other provision of law 
relating to chargeable risk premium rates for flood 
insurance coverage under this title, in the case of 
any area that was not previously designated as an 
area having special flood hazards and that, pursuant 
to any issuance, revision, updating, or other change 
in flood insurance maps, becomes designated as such 
an area, during the 5-month period that begins, ex-
cept as provided in paragraph (2), upon the date 
that such maps, as issued, revised, updated, or oth-
erwise changed, become effective, the chargeable pre-
mium rate for flood insurance under this title with 
respect to any covered property that is located with-
in such area shall be the rate described in paragraph 
(3). 
‘‘(2) APPLICABILITY TO PREFERRED RISK RATE 
AREAS.—In the case of any area described in para-
graph (1) that consists of or includes an area that, 
as of date of the effectiveness of the flood insurance 
maps for such area referred to in paragraph (1) as 
so issued, revised, updated, or changed, is eligible 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
for any reason for preferred risk rate method pre-
miums for flood insurance coverage and was eligible 
for such premiums as of the enactment of the Flood 
Insurance Reform Act of 2011, the 5-month period 
referred to in paragraph (1) for such area eligible 
for preferred risk rate method premiums shall begin 
upon the expiration of the period during which such 
area is eligible for such preferred risk rate method 
premiums. 
‘‘(3) PHASE-IN OF FULL ACTUARIAL RATES.— 
With respect to any area described in paragraph (1), 
the chargeable risk premium rate for flood insurance 
under this title for a covered property that is located 
in such area shall be— 
‘‘(A) for the first year of the 5-year period 
referred to in paragraph (1), the greater of— 
‘‘(i) 20 percent of the chargeable risk 
premium rate otherwise applicable under 
this title to the property; and 
‘‘(ii) in the case of any property that, 
as of the beginning of such first year, is el-
igible for preferred risk rate method pre-
miums for flood insurance coverage, such 
preferred risk rate method premium for 
the property; 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
‘‘(B) for the second year of such 5-year pe-
riod, 40 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; 
‘‘(C) for the third year of such 5-year pe-
riod, 60 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; 
‘‘(D) for the fourth year of such 5-year pe-
riod, 80 percent of the chargeable risk premium 
rate otherwise applicable under this title to the 
property; and 
‘‘(E) for the fifth year of such 5-year pe-
riod, 100 percent of the chargeable risk pre-
mium rate otherwise applicable under this title 
to the property. 
‘‘(4) COVERED PROPERTIES.—For purposes of 
the subsection, the term ‘covered property’ means 
any residential property occupied by its owner or a 
bona fide tenant as a primary residence.’’. 
(2) REGULATION
OR
NOTICE.—The Adminis-
trator of the Federal Emergency Management Agen-
cy shall issue an interim final rule or notice to im-
plement this subsection and the amendments made 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
by this subsection as soon as practicable after the 
date of the enactment of this Act. 
(c) PHASE-IN OF ACTUARIAL RATES FOR CERTAIN 
PROPERTIES.— 
(1) IN GENERAL.—Section 1308(c) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4015(c)) is amended— 
(A) by redesignating paragraph (2) as 
paragraph (7); and 
(B) by inserting after paragraph (1) the 
following new paragraphs: 
‘‘(2) COMMERCIAL PROPERTIES.—Any nonresi-
dential property. 
‘‘(3) SECOND HOMES AND VACATION HOMES.— 
Any residential property that is not the primary res-
idence of any individual. 
‘‘(4) HOMES SOLD TO NEW OWNERS.—Any sin-
gle family property that— 
‘‘(A) has been constructed or substantially 
improved and for which such construction or 
improvement was started, as determined by the 
Administrator, before December 31, 1974, or 
before the effective date of the initial rate map 
published by the Administrator under para-
graph (2) of section 1360(a) for the area in 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
which such property is located, whichever is 
later; and 
‘‘(B) is purchased after the effective date 
of 
this 
paragraph, 
pursuant 
to 
section 
5(c)(3)(A) of the Flood Insurance Reform Act 
of 2011. 
‘‘(5) HOMES
DAMAGED
OR
IMPROVED.—Any 
property that, on or after the date of the enactment 
of the Flood Insurance Reform Act of 2011, has ex-
perienced or sustained— 
‘‘(A) substantial flood damage exceeding 
50 percent of the fair market value of such 
property; or 
‘‘(B) substantial improvement exceeding 
30 percent of the fair market value of such 
property. 
‘‘(6) HOMES WITH MULTIPLE CLAIMS.—Any se-
vere repetitive loss property (as such term is defined 
in section 1366(j)).’’. 
(2) TECHNICAL AMENDMENTS.—Section 1308 
of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015) is amended— 
(A) in subsection (c)— 
(i) in the matter preceding paragraph 
(1), by striking ‘‘the limitations provided 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
under paragraphs (1) and (2)’’ and insert-
ing ‘‘subsection (e)’’; and 
(ii) in paragraph (1), by striking ‘‘, 
except’’ and all that follows through ‘‘sub-
section (e)’’; and 
(B) in subsection (e), by striking ‘‘para-
graph (2) or (3)’’ and inserting ‘‘paragraph 
(7)’’. 
(3) EFFECTIVE DATE AND TRANSITION.— 
(A) EFFECTIVE DATE.—The amendments 
made by paragraphs (1) and (2) shall apply be-
ginning upon the expiration of the 12-month 
period that begins on the date of the enactment 
of this Act, except as provided in subparagraph 
(B) of this paragraph. 
(B) TRANSITION
FOR
PROPERTIES
COV-
ERED BY FLOOD INSURANCE UPON EFFECTIVE 
DATE.— 
(i) INCREASE OF RATES OVER TIME.— 
In the case of any property described in 
paragraph (2), (3), (4), (5), or (6) of sec-
tion 1308(c) of the National Flood Insur-
ance Act of 1968, as amended by para-
graph (1) of this subsection, that, as of the 
effective date under subparagraph (A) of 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
this paragraph, is covered under a policy 
for flood insurance made available under 
the national flood insurance program for 
which the chargeable premium rates are 
less than the applicable estimated risk pre-
mium rate under section 1307(a)(1) of 
such Act for the area in which the prop-
erty is located, the Administrator of the 
Federal Emergency Management Agency 
shall increase the chargeable premium 
rates for such property over time to such 
applicable estimated risk premium rate 
under section 1307(a)(1). 
(ii) AMOUNT OF ANNUAL INCREASE.— 
Such increase shall be made by increasing 
the chargeable premium rates for the prop-
erty (after application of any increase in 
the premium rates otherwise applicable to 
such property), once during the 12-month 
period that begins upon the effective date 
under subparagraph (A) of this paragraph 
and once every 12 months thereafter until 
such increase is accomplished, by 20 per-
cent (or such lesser amount as may be nec-
essary so that the chargeable rate does not 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
exceed such applicable estimated risk pre-
mium rate or to comply with clause (iii)). 
(iii) PROPERTIES SUBJECT TO PHASE- 
IN AND ANNUAL INCREASES.—In the case 
of any pre-FIRM property (as such term is 
defined in section 578(b) of the National 
Flood Insurance Reform Act of 1974), the 
aggregate increase, during any 12-month 
period, in the chargeable premium rate for 
the property that is attributable to this 
subparagraph or to an increase described 
in section 1308(e) of the National Flood 
Insurance Act of 1968 may not exceed 20 
percent. 
(iv) FULL
ACTUARIAL
RATES.—The 
provisions of paragraphs (2), (3), (4), (5), 
and (6) of such section 1308(c) shall apply 
to such a property upon the accomplish-
ment of the increase under this subpara-
graph and thereafter. 
(d) PROHIBITION OF EXTENSION OF SUBSIDIZED 
RATES TO LAPSED POLICIES.—Section 1308 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4015), as 
amended by the preceding provisions of this Act, is further 
amended— 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(1) in subsection (e), by inserting ‘‘or sub-
section (h)’’ after ‘‘subsection (c)’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(h) PROHIBITION OF EXTENSION OF SUBSIDIZED 
RATES
TO
LAPSED
POLICIES.—Notwithstanding any 
other provision of law relating to chargeable risk premium 
rates for flood insurance coverage under this title, the Ad-
ministrator shall not provide flood insurance coverage 
under this title for any property for which a policy for 
such coverage for the property has previously lapsed in 
coverage as a result of the deliberate choice of the holder 
of such policy, at a rate less than the applicable estimated 
risk premium rates for the area (or subdivision thereof) 
in which such property is located.’’. 
(e) RECOGNITION OF STATE AND LOCAL FUNDING 
FOR CONSTRUCTION, RECONSTRUCTION, AND IMPROVE-
MENT OF FLOOD PROTECTION SYSTEMS IN DETERMINA-
TION OF RATES.— 
(1) IN
GENERAL.—Section 1307 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4014) is amended— 
(A) in subsection (e)— 
(i) in the first sentence, by striking 
‘‘construction of a flood protection system’’ 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
and inserting ‘‘construction, reconstruc-
tion, or improvement of a flood protection 
system (without respect to the level of Fed-
eral investment or participation)’’; and 
(ii) in the second sentence— 
(I) by striking ‘‘construction of a 
flood protection system’’ and inserting 
‘‘construction, reconstruction, or im-
provement of a flood protection sys-
tem’’; and 
(II) by inserting ‘‘based on the 
present value of the completed sys-
tem’’ after ‘‘has been expended’’; and 
(B) in subsection (f)— 
(i) in the first sentence in the matter 
preceding paragraph (1), by inserting 
‘‘(without respect to the level of Federal 
investment or participation)’’ before the 
period at the end; 
(ii) in the third sentence in the matter 
preceding paragraph (1), by inserting ‘‘, 
whether coastal or riverine,’’ after ‘‘special 
flood hazard’’; and 
(iii) in paragraph (1), by striking ‘‘a 
Federal agency in consultation with the 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
local project sponsor’’ and inserting ‘‘the 
entity or entities that own, operate, main-
tain, or repair such system’’. 
(2) REGULATIONS.—The Administrator of the 
Federal Emergency Management Agency shall pro-
mulgate regulations to implement this subsection 
and the amendments made by this subsection as 
soon as practicable, but not more than 18 months 
after the date of the enactment of this Act. Para-
graph (3) may not be construed to annul, alter, af-
fect, authorize any waiver of, or establish any excep-
tion to, the requirement under the preceding sen-
tence. 
SEC. 6. 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— 
(A) the Administrator of the Federal 
Emergency Management Agency (in this section 
referred to as the ‘‘Administrator’’), or the des-
ignee thereof; 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(B) the Director of the United States Geo-
logical Survey of the Department of the Inte-
rior, or the designee thereof; 
(C) the Under Secretary of Commerce for 
Oceans and Atmosphere, or the designee there-
of; 
(D) the commanding officer of the United 
States Army Corps of Engineers, or the des-
ignee thereof; 
(E) the chief of the Natural Resources 
Conservation Service of the Department of Ag-
riculture, or the designee thereof; 
(F) the Director of the United States Fish 
and Wildlife Service of the Department of the 
Interior, or the designee thereof; 
(G) the Assistant Administrator for Fish-
eries of the National Oceanic and Atmospheric 
Administration of the Department of Com-
merce, or the designee thereof; and 
(H) 14 additional members to be appointed 
by the Administrator of the Federal Emergency 
Management Agency, who shall be— 
(i) an expert in data management; 
(ii) an expert in real estate; 
(iii) an expert in insurance; 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(iv) a member of a recognized regional 
flood and storm water management organi-
zation; 
(v) a representative of a State emer-
gency management agency or association 
or organization for such agencies; 
(vi) a member of a recognized profes-
sional surveying association or organiza-
tion; 
(vii) a member of a recognized profes-
sional mapping association or organization; 
(viii) a member of a recognized pro-
fessional engineering association or organi-
zation; 
(ix) a member of a recognized profes-
sional association or organization rep-
resenting flood hazard determination firms; 
(x) a representative of State national 
flood insurance coordination offices; 
(xi) representatives of two local gov-
ernments, at least one of whom is a local 
levee flood manager or executive, des-
ignated by the Federal Emergency Man-
agement Agency as Cooperating Technical 
Partners; and 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(xii) representatives of two State gov-
ernments designated by the Federal Emer-
gency Management Agency as Cooperating 
Technical States. 
(2) QUALIFICATIONS.—Members of the Council 
shall be appointed based on their demonstrated 
knowledge and competence regarding surveying, car-
tography, remote sensing, geographic information 
systems, or the technical aspects of preparing and 
using flood insurance rate maps. In appointing 
members under paragraph (1)(I), the Administrator 
shall ensure that the membership of the Council has 
a balance of Federal, State, local, and private mem-
bers, and includes an adequate number of represent-
atives from the States with coastline on the Gulf of 
Mexico and other States containing areas identified 
by the Administrator of the Federal Emergency 
Management Agency as at high-risk for flooding or 
special flood hazard areas. 
(c) DUTIES.— 
(1) NEW MAPPING STANDARDS.—Not later than 
the expiration of the 12-month period beginning 
upon the date of the enactment of this Act, the 
Council shall develop and submit to the Adminis-
trator and the Congress proposed new mapping 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
standards for 100-year flood insurance rate maps 
used under the national flood insurance program 
under the National Flood Insurance Act of 1968. In 
developing such proposed standards the Council 
shall— 
(A) ensure that the flood insurance rate 
maps reflect true risk, including graduated risk 
that better reflects the financial risk to each 
property; such reflection of risk should be at 
the smallest geographic level possible (but not 
necessarily property-by-property) to ensure that 
communities are mapped in a manner that 
takes into consideration different risk levels 
within the community; 
(B) ensure the most efficient generation, 
display, and distribution of flood risk data, 
models, and maps where practicable through 
dynamic digital environments using spatial 
database technology and the Internet; 
(C) ensure that flood insurance rate maps 
reflect current hydrologic and hydraulic data, 
current land use, and topography, incorporating 
the most current and accurate ground and 
bathymetric elevation data; 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(D) determine the best ways to include in 
such flood insurance rate maps levees, decerti-
fied levees, and areas located below dams, in-
cluding determining a methodology for ensuring 
that decertified levees and other protections are 
included in flood insurance rate maps and their 
corresponding flood zones reflect the level of 
protection conferred; 
(E) consider how to incorporate restored 
wetlands and other natural buffers into flood 
insurance rate maps, which may include wet-
lands, groundwater recharge areas, erosion 
zones, meander belts, endangered species habi-
tat, barrier islands and shoreline buffer fea-
tures, riparian forests, and other features; 
(F) consider whether to use vertical posi-
tioning (as defined by the Administrator) for 
flood insurance rate maps; 
(G) ensure that flood insurance rate maps 
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 elevation 
of the structure; 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(H) ensure that flood insurance rate maps 
take into consideration the best scientific data 
and potential future conditions (including pro-
jections for sea level rise); and 
(I) consider how to incorporate the new 
standards proposed pursuant to this paragraph 
in existing mapping efforts. 
(2) ONGOING DUTIES.—The Council shall, on 
an ongoing basis, review the mapping protocols de-
veloped pursuant to paragraph (1), and make rec-
ommendations to the Administrator when the Coun-
cil determines that mapping protocols should be al-
tered. 
(3) MEETINGS.—In carrying out its duties 
under this section, the Council shall consult with 
stakeholders through at least 4 public meetings an-
nually, and shall seek input of all stakeholder inter-
ests including State and local representatives, envi-
ronmental and conservation organizations, insurance 
industry representatives, advocacy groups, planning 
organizations, and mapping organizations. 
(d) PROHIBITION ON COMPENSATION.—Members of 
the Council shall receive no additional compensation by 
reason of their service on the Council. 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(e) CHAIRPERSON.—The Administrator shall serve as 
the Chairperson of the Council. 
(f) STAFF.— 
(1) FEMA.—Upon the request of the Council, 
the Administrator may detail, on a nonreimbursable 
basis, personnel of the Federal Emergency Manage-
ment Agency to assist the Council in carrying out its 
duties. 
(2) OTHER FEDERAL AGENCIES.—Upon request 
of the Council, any other Federal agency that is a 
member of the Council may detail, on a non-reim-
bursable basis, personnel to assist the Council in 
carrying out its duties. 
(g) POWERS.—In carrying out this section, the Coun-
cil may hold hearings, receive evidence and assistance, pro-
vide information, and conduct research, as the Council 
considers appropriate. 
(h) TERMINATION.—The Council shall terminate 
upon the expiration of the 5-year period beginning on the 
date of the enactment of this Act. 
(i) MORATORIUM ON FLOOD MAP CHANGES.— 
(1) MORATORIUM.—Except as provided in para-
graph (2) and notwithstanding any other provision 
of this Act, the National Flood Insurance Act of 
1968, or the Flood Disaster Protection Act of 1973, 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
during the period beginning upon the date of the en-
actment of this Act and ending upon the submission 
by the Council to the Administrator and the Con-
gress of the proposed new mapping standards re-
quired under subsection (c)(1), the Administrator 
may not make effective any new or updated rate 
maps for flood insurance coverage under the na-
tional flood insurance program that were not in ef-
fect for such program as of such date of enactment, 
or otherwise revise, update, or change the flood in-
surance rate maps in effect for such program as of 
such date. 
(2) LETTERS OF MAP CHANGE.—During the pe-
riod described in paragraph (1), the Administrator 
may revise, update, and change the flood insurance 
rate maps in effect for the national flood insurance 
program only pursuant to a letter of map change 
(including a letter of map amendment, letter of map 
revision, and letter of map revision based on fill). 
SEC. 7. FEMA INCORPORATION OF NEW MAPPING PROTO-
COLS. 
(a) NEW RATE MAPPING STANDARDS.—Not later 
than the expiration of the 6-month period beginning upon 
submission by the Technical Mapping Advisory Council 
under section 6 of the proposed new mapping standards 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
for flood insurance rate maps used under the national 
flood insurance program developed by the Council pursu-
ant to section 6(c), the Administrator of the Federal 
Emergency Management Agency (in this section referred 
to as the ‘‘Administrator’’) shall establish new standards 
for such rate maps based on such proposed new standards 
and the recommendations of the Council. 
(b) REQUIREMENTS.—The new standards for flood 
insurance rate maps established by the Administrator pur-
suant to subsection (a) shall— 
(1) delineate and include in any such rate 
maps— 
(A) all areas located within the 100-year 
flood plain; and 
(B) 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 topog-
raphy and incorporate the most current and ac-
curate ground level data; 
(C) take into consideration the impacts 
and use of fill and the flood risks associated 
with altered hydrology; 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(D) differentiate between a property that 
is located in a flood zone and a structure lo-
cated on such property that is not at the same 
risk level for flooding as such property due to 
the elevation 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 
development throughout any river or costal 
water system, including all tributaries, which 
may impact 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 recommendations of the Council made under the pro-
posed 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 Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate specifying which such rec-
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
ommendations were not adopted and explaining the rea-
sons 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 insur-
ance rate maps pursuant to subsection (a) of this section, 
commence use of the new standards and updating of flood 
insurance rate maps in accordance with the new stand-
ards. Not later than the expiration of the 10-year period 
beginning upon the establishment of such new standards, 
the Administrator shall complete updating of all flood in-
surance rate maps in accordance with the new standards, 
subject to the availability of sufficient amounts for such 
activities provided in appropriation Acts. 
(e) TEMPORARY SUSPENSION OF MANDATORY PUR-
CHASE REQUIREMENT FOR CERTAIN PROPERTIES.— 
(1) 
SUBMISSION
OF
ELEVATION
CERTIFI-
CATE.—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 des-
ignated as having a special flood hazard if the owner 
of such property submits to the Administrator an 
elevation certificate for such property showing that 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
the lowest level of the primary 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 CERTIFICATE.—The Adminis-
trator shall accept as conclusive each elevation cer-
tificate submitted under paragraph (1) unless the 
Administrator conducts a subsequent elevation sur-
vey and determines that the lowest level of the pri-
mary 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 Ad-
ministrator shall provide any such subsequent ele-
vation survey to the owner of such property. 
(3) DETERMINATIONS
FOR
PROPERTIES
ON 
BORDERS 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 lo-
cated within an area having special flood haz-
ards and that a structure located on the prop-
erty is not located within such area having spe-
cial flood hazards, the Administrator shall expe-
ditiously process any request made by an owner 
of the property for a determination pursuant to 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
paragraph (2) or a determination of whether 
the structure is located within the area having 
special flood hazards. 
(B) PROHIBITION OF FEE.—If the Admin-
istrator determines pursuant to subparagraph 
(A) that the structure on the property is not lo-
cated within the area having special flood haz-
ards, the Administrator shall not charge a fee 
for reviewing the flood hazard data and shall 
not require the owner to provide any additional 
elevation data. 
(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 sub-
paragraph (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). 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
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 
actual protection afforded by an existing levee, floodwall, 
pump or other flood protection feature, regardless of the 
accreditation 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 
Federal Emergency Management Agency and the Comp-
troller General of the United States shall each conduct a 
separate study to assess a broad range of options, meth-
ods, and strategies for privatizing the national flood insur-
ance program and shall each submit a report to the Com-
mittee on Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate with recommendations for the best 
manner to accomplish such privatization. 
(b) PRIVATE RISK-MANAGEMENT INITIATIVES.— 
(1) AUTHORITY.—The Administrator of the 
Federal Emergency Management Agency may carry 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
out such private risk-management initiatives under 
the national flood insurance program as the Admin-
istrator considers appropriate to determine the ca-
pacity of private insurers, reinsurers, and financial 
markets to assist communities, on a voluntary basis 
only, in managing the full range of financial risks 
associated with flooding. 
(2) ASSESSMENT.—Not later than the expira-
tion 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, cap-
ital, and financial markets by seeking proposals to 
assume a portion of the program’s insurance risk 
and submit to the Congress a report describing the 
response to such request for proposals and the re-
sults of such assessment. 
(3) PROTOCOL FOR RELEASE OF DATA.—The 
Administrator shall develop a protocol to provide for 
the release of data sufficient to conduct the assess-
ment required 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 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
of insurance coverage provided by the flood insur-
ance 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 insur-
ance program from private market insurance, reinsurance, 
and capital market sources at rates and on terms deter-
mined by the Administrator to be reasonable and appro-
priate in an amount sufficient to maintain the ability of 
the program to pay claims and that minimizes the likeli-
hood 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)— 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(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)— 
(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 
following 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 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
end the following: ‘‘, is subject to the reporting re-
quirements of the Securities Exchange Act of 1934, 
pursuant to section 13(a) or 15(d) of such Act (15 
U.S.C. 78m(a), 78o(d)), or is authorized by the Ad-
ministrator to assume reinsurance on risks insured 
by the flood insurance program’’. 
(d) ASSESSMENT OF CLAIMS-PAYING ABILITY.— 
(1) ASSESSMENT.—Not later than September 
30 of each year, the Administrator of the Federal 
Emergency Management Agency shall conduct an 
assessment of the claims-paying ability of the na-
tional flood insurance program, including the pro-
gram’s utilization of private sector reinsurance and 
reinsurance equivalents, with and without reliance 
on borrowing authority under section 1309 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 
4016). In conducting the assessment, the Adminis-
trator shall take into consideration regional con-
centrations of coverage written by the program, peak 
flood zones, and relevant mitigation measures. 
(2) REPORT.—The Administrator shall submit 
a report to the Congress of the results of each such 
assessment, and make such report available to the 
public, not later than 30 days after completion of 
the assessment. 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
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 RE-
PORT 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 
(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.’’. 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
SEC. 11. MITIGATION ASSISTANCE. 
(a) MITIGATION
ASSISTANCE
GRANTS.—Section 
1366 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4104c) is amended— 
(1) in subsection (a), by striking the last sen-
tence and inserting the following: ‘‘Such financial 
assistance shall be made available— 
‘‘(1) to States and communities in the form of 
grants under this section for carrying out mitigation 
activities; 
‘‘(2) to States and communities in the form of 
grants under this section for carrying out mitigation 
activities that reduce flood damage to severe repet-
itive loss structures; and 
‘‘(3) to property owners in the form of direct 
grants under this section for carrying out mitigation 
activities that reduce flood damage to individual 
structures for which 2 or more claim payments for 
losses have been made under flood insurance cov-
erage under this title if the Administrator, after con-
sultation with the State and community, determines 
that neither the State nor community in which such 
a structure is located has the capacity to manage 
such grants.’’. 
(2) by striking subsection (b); 
(3) in subsection (c)— 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(A) by striking ‘‘flood risk’’ and inserting 
‘‘multi-hazard’’; 
(B) 
by 
striking 
‘‘provides 
protection 
against’’ and inserting ‘‘examines reduction of’’; 
and 
(C) by redesignating such subsection as 
subsection (b); 
(4) by striking subsection (d); 
(5) in subsection (e)— 
(A) in paragraph (1), by striking the para-
graph designation and all that follows through 
the end of the first sentence and inserting the 
following: 
‘‘(1) REQUIREMENT OF CONSISTENCY WITH AP-
PROVED
MITIGATION
PLAN.—Amounts 
provided 
under this section may be used only for mitigation 
activities that are consistent with mitigation plans 
that are approved by the Administrator and identi-
fied under subparagraph (4).’’; 
(B) by striking paragraphs (2), (3), and 
(4) and inserting the following new paragraphs: 
‘‘(2) REQUIREMENTS
OF
TECHNICAL
FEASI-
BILITY, COST EFFECTIVENESS, AND INTEREST OF 
NFIF.—The Administrator may approve only mitiga-
tion activities that the Administrator determines are 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
technically feasible and cost-effective and in the in-
terest of, and represent savings to, the National 
Flood Insurance Fund. In making such determina-
tions, the Administrator shall take into consideration 
recognized benefits that are difficult to quantify. 
‘‘(3) PRIORITY FOR MITIGATION ASSISTANCE.— 
In providing grants under this section for mitigation 
activities, the Administrator shall give priority for 
funding to activities that the Administrator deter-
mines will result in the greatest savings to the Na-
tional Flood Insurance Fund, including activities 
for— 
‘‘(A) severe repetitive loss structures; 
‘‘(B) repetitive loss structures; and 
‘‘(C) other subsets of structures as the Ad-
ministrator may establish.’’; 
(C) in paragraph (5)— 
(i) by striking all of the matter that 
precedes subparagraph (A) and inserting 
the following: 
‘‘(4) ELIGIBLE
ACTIVITIES.—Eligible ac-
tivities may include—’’; 
(ii) by striking subparagraphs (E) and 
(H); 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(iii) by redesignating subparagraphs 
(D), (F), and (G) as subparagraphs (E), 
(G), and (H); 
(iv) by inserting after subparagraph 
(C) the following new subparagraph: 
‘‘(D) 
elevation, 
relocation, 
and 
floodproofing of utilities (including equipment 
that serve structures);’’; 
(v) by inserting after subparagraph 
(E), as so redesignated by clause (iii) of 
this subparagraph, the following new sub-
paragraph: 
‘‘(F) the development or update of State, 
local, or Indian tribal mitigation plans which 
meet the planning criteria established by the 
Administrator, except that the amount from 
grants under this section that may be used 
under this subparagraph may not exceed 
$50,000 for any mitigation plan of a State or 
$25,000 for any mitigation plan of a local gov-
ernment or Indian tribe;’’; 
(vi) in subparagraph (H); as so redes-
ignated by clause (iii) of this subpara-
graph, by striking ‘‘and’’ at the end; and 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(vii) by adding at the end the fol-
lowing new subparagraphs: 
‘‘(I) other mitigation activities not de-
scribed in subparagraphs (A) through (G) or 
the regulations issued under subparagraph (H), 
that are described in the mitigation plan of a 
State, community, or Indian tribe; and 
‘‘(J) personnel costs for State staff that 
provide technical assistance to communities to 
identify eligible activities, to develop grant ap-
plications, and to implement grants awarded 
under this section, not to exceed $50,000 per 
State in any Federal fiscal year, so long as the 
State applied for and was awarded at least 
$1,000,000 in grants available under this sec-
tion in the prior Federal fiscal year; the re-
quirements of subsections (d)(1) and (d)(2) 
shall not apply to the activity under this sub-
paragraph.’’; 
(D) by adding at the end the following new 
paragraph: 
‘‘(6) ELIGIBILITY
OF
DEMOLITION
AND
RE-
BUILDING
OF
PROPERTIES.—The Administrator 
shall consider as an eligible activity the demolition 
and rebuilding of properties to at least base flood 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
elevation or greater, if required by the Administrator 
or if required by any State regulation or local ordi-
nance, and in accordance with criteria established by 
the Administrator.’’; and 
(E) by redesignating such subsection as 
subsection (c); 
(6) by striking subsections (f), (g), and (h) and 
inserting the following new subsection: 
‘‘(d) MATCHING REQUIREMENT.—The Administrator 
may provide grants for eligible mitigation activities as fol-
lows: 
‘‘(1) SEVERE REPETITIVE LOSS STRUCTURES.— 
In the case of mitigation activities to severe repet-
itive loss structures, in an amount up to 100 percent 
of all eligible costs. 
‘‘(2) REPETITIVE LOSS STRUCTURES.—In the 
case of mitigation activities to repetitive loss struc-
tures, in an amount up to 90 percent of all eligible 
costs. 
‘‘(3) OTHER MITIGATION ACTIVITIES.—In the 
case of all other mitigation activities, in an amount 
up to 75 percent of all eligible costs.’’; 
(7) in subsection (i)— 
(A) in paragraph (2)— 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
(i) by striking ‘‘certified under sub-
section (g)’’ and inserting ‘‘required under 
subsection (d)’’; and 
(ii) by striking ‘‘3 times the amount’’ 
and inserting ‘‘the amount’’; and 
(B) by redesignating such subsection as 
subsection (e); 
(8) in subsection (j)— 
(A) in paragraph (1), by striking ‘‘Riegle 
Community Development and Regulatory Im-
provement Act of 1994’’ and inserting ‘‘Flood 
Insurance Reform Act of 2011’’; 
(B) by redesignating such subsection as 
subsection (f); and 
(9) by striking subsections (k) and (m) and in-
serting the following new subsections: 
‘‘(g) FAILURE TO MAKE GRANT AWARD WITHIN 5 
YEARS.—For any application for a grant under this sec-
tion for which the Administrator fails to make a grant 
award within 5 years of the date of application, the grant 
application shall be considered to be denied and any fund-
ing amounts allocated for such grant applications shall re-
main in the National Flood Mitigation Fund under section 
1367 of this title and shall be made available for grants 
under this section. 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS
HR 1309 RFS
and the participating company, upon the request of 
the insured, shall provide to the insured, within 30 
days of such request— 
‘‘(A) a copy of the estimate of structure 
damage; 
‘‘(B) proofs of loss; 
‘‘(C) any expert or engineering reports or 
documents commissioned by or relied upon by 
the Administrator or participating company in 
determining whether the damage was caused by 
flood or any other peril; and 
‘‘(D) the Administrator’s or the partici-
pating company’s final determination on the 
claim. 
‘‘(2) TIMING.—Paragraph (1) shall apply only 
with respect to a request described in such para-
graph made by an insured after the Administrator 
or the participating company, or both, as applicable, 
have issued a final decision on the flood claim in-
volved and resolution of all appeals with respect to 
such claim.’’. 
VerDate Mar 15 2010 
22:35 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H1309.RFS
H1309
mstockstill on DSK4VPTVN1PROD with BILLS