I 
111TH CONGRESS 
2D SESSION 
H. R. 5114 
To extend the authorization for the national flood insurance program, to 
identify priorities essential to reform and ongoing stable functioning 
of the program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 22, 2010 
Ms. WATERS (for herself, Mr. FRANK of Massachusetts, Mr. KANJORSKI, Mr. 
COSTELLO, Ms. MATSUI, Mr. THOMPSON of Mississippi, Mr. PATRICK J. 
MURPHY of Pennsylvania, Mrs. CAPPS, Mr. CARDOZA, Mr. HARE, Mr. AL 
GREEN of Texas, and Ms. LINDA T. SA´NCHEZ of California) introduced 
the following bill; which was referred to the Committee on Financial Serv-
ices 
A BILL 
To extend the authorization for the national flood insurance 
program, to identify priorities essential to reform and 
ongoing stable functioning of the program, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Flood Insurance Reform Priorities Act of 2010’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. Findings and purposes. 
Sec. 3. Extension of national flood insurance program. 
Sec. 4. Maximum coverage limits. 
Sec. 5. Phase-in of actuarial rates for nonresidential properties and non-pri-
mary residences. 
Sec. 6. 5-year delay in effective date of mandatory purchase requirement for 
new flood hazard areas. 
Sec. 7. 5-year phase-in of flood insurance rates for newly mapped areas. 
Sec. 8. Increase in annual limitation on premium increases. 
Sec. 9. Consideration of construction, reconstruction, and improvement of flood 
protection systems in determination of flood insurance rates. 
Sec. 10. Treatment of certain flood protection projects. 
Sec. 11. Exception to waiting period for effective date of policies. 
Sec. 12. Enforcement. 
Sec. 13. Notification to tenants of availability of contents insurance. 
Sec. 14. Flood insurance outreach. 
Sec. 15. Notice of availability of flood insurance and escrow in RESPA good 
faith estimate. 
Sec. 16. Authorization of additional FEMA staff. 
Sec. 17. Plan to verify maintenance of flood insurance on Mississippi and Lou-
isiana properties receiving emergency supplemental funds. 
Sec. 18. Flood insurance advocate. 
Sec. 19. Study regarding mandatory purchase requirement for natural 100-year 
floodplain and non-federally related loans. 
Sec. 20. Study of methods to increase flood insurance program participation by 
low-income families. 
Sec. 21. Report on inclusion of building codes in floodplain management cri-
teria. 
SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) since the enactment of National Flood In-
surance Act of 1968, the national flood insurance 
program has been the primary source of reliable, 
reasonably priced, flood insurance coverage for mil-
lions of American homes and businesses; 
(2) today over 5,500,000 homes and businesses 
in the United States rely on the national flood insur-
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ance program to provide a degree of financial secu-
rity; 
(3) although participation in the national flood 
insurance program has, in the past, largely been lim-
ited to properties required to participate in the pro-
gram because of the program’s mandatory purchase 
requirement for properties in special flood hazard 
areas with loans from federally regulated lenders, re-
cent annual and extraordinary flooding has resulted 
in the program enjoying its highest voluntary par-
ticipation since the establishment of the mandatory 
flood insurance purchase requirement; 
(4) several years of below-average flood claim 
losses and increased voluntary participation in the 
national flood insurance program have allowed the 
program to fully service the debt incurred following 
Hurricanes Katrina and Rita and allowed the pro-
gram to pay $500,000,000 of the principal of that 
outstanding debt; 
(5) though significant reforms are needed to 
further improve the financial outlook of the national 
flood insurance program, long-term and reliable au-
thorization of the program is an essential element to 
stabilizing the already fragile United States housing 
market; 
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(6) increased flooding in areas outside des-
ignated special flood hazard areas prompted the Ex-
ecutive and the Congress in 2002 to begin calling for 
the national flood insurance program to develop and 
disseminate revised, updated flood insurance rate 
maps that reflect the real risk of flooding for prop-
erties not previously identified as being located with-
in a special flood hazard area; 
(7) dissemination of accurate, up-to-date, flood- 
risk information remains a primary goal of the na-
tional flood insurance program and such information 
should be disseminated as soon as such information 
is collected and available; 
(8) communities should be encouraged to make 
their residents aware of updated flood-risk data 
while communities are assessing and incorporating 
updated flood-risk data into long-term community 
planning; 
(9) the maximum coverage limits for flood in-
surance policies should be increased to reflect infla-
tion and the increased cost of housing; and 
(10) phasing out flood insurance premium sub-
sidies currently extended to vacation homes, second 
homes, and commercial properties would result in 
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significant average annual savings to the national 
flood insurance program. 
(b) PURPOSES.—The purposes of this Act are— 
(1) to identify priorities essential to the reform 
and ongoing stable functioning of the national flood 
insurance program; 
(2) to increase incentives for homeowners and 
communities to participate in the national flood in-
surance program and to improve oversight to ensure 
better accountability of the national flood insurance 
program and the Federal Emergency Management 
Agency; and 
(3) to increase awareness of homeowners of 
flood risks and improve the information regarding 
such risks provided to homeowners. 
SEC. 3. EXTENSION OF NATIONAL FLOOD INSURANCE PRO-
GRAM. 
(a) PROGRAM EXTENSION.—Section 1319 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4026) is 
amended by striking ‘‘September 30, 2008’’ and inserting 
‘‘September 30, 2015’’. 
(b) FINANCING.—Section 1309(a) of such Act (42 
U.S.C. 4016(a)) is amended by striking ‘‘September 30, 
2008’’ and inserting ‘‘September 30, 2015’’. 
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(c) EXTENSION OF PILOT PROGRAM FOR MITIGA-
TION OF SEVERE REPETITIVE LOSS PROPERTIES.—Sec-
tion 1361A of the National Flood Insurance Act of 1968 
(42 U.S.C. 4102a) is amended— 
(1) in subsection (k)(1), by striking ‘‘2005, 
2006, 2007, 2008, and 2009’’ and inserting ‘‘2011, 
2012, 2013, 2014, and 2015’’; and 
(2) by striking subsection (l). 
SEC. 4. MAXIMUM COVERAGE LIMITS. 
Subsection (b) of section 1306 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended— 
(1) in paragraph (2), by striking ‘‘$250,000’’ 
and inserting ‘‘$335,000’’; 
(2) in paragraph (3), by striking ‘‘$100,000’’ 
and inserting ‘‘$135,000’’; and 
(3) in paragraph (4)— 
(A) by striking ‘‘$500,000’’ each place 
such term appears and inserting ‘‘$670,000’’; 
and 
(B) by inserting before ‘‘; and’’ the fol-
lowing: ‘‘; except that, in the case of any non-
residential property that is a structure con-
taining more than one dwelling unit that is 
made available for occupancy by rental (not-
withstanding the provisions applicable to the 
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SEC. 5. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDEN-
TIAL PROPERTIES AND NON-PRIMARY RESI-
DENCES. 
(a) IN GENERAL.—Section 1308(c) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(c)) is 
amended— 
(1) by redesignating paragraph (2) as para-
graph (4); and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraphs: 
‘‘(2) NONRESIDENTIAL PROPERTIES.—Any non-
residential property, which term shall not include 
any multifamily rental property that consists of four 
or more dwelling units. 
‘‘(3) NON-PRIMARY RESIDENCES.—Any residen-
tial property that is not the primary residence of any 
individual, including the owner of the property or 
any other individual who resides in the property as 
a tenant.’’. 
(b) TECHNICAL AMENDMENTS.—Section 1308 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4015) 
is amended— 
(1) in subsection (c)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘the limitations provided under 
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paragraphs (1) and (2)’’ and inserting ‘‘sub-
section (e)’’; and 
(B) in paragraph (1), by striking ‘‘, ex-
cept’’ and all that follows through ‘‘subsection 
(e)’’; and 
(2) in subsection (e), by striking ‘‘paragraph 
(2) or (3)’’ and inserting ‘‘paragraph (4)’’. 
(c) EFFECTIVE DATE AND TRANSITION.— 
(1) EFFECTIVE DATE.—The amendments made 
by subsections (a) and (b) shall apply beginning 
upon the expiration of the 9-month period that be-
gins on the date of the enactment of this Act, except 
as provided in paragraph (2) of this subsection. 
(2) TRANSITION FOR PROPERTIES COVERED BY 
FLOOD INSURANCE UPON EFFECTIVE DATE.— 
(A) INCREASE OF RATES OVER TIME.—In 
the case of any property described in paragraph 
(2) or (3) of section 1308(c) of the National 
Flood Insurance Act of 1968, as amended by 
subsection (a) of this section, that, as of the ef-
fective date under paragraph (1) of this sub-
section, is covered under a policy for flood in-
surance made available under the national flood 
insurance program for which the chargeable 
premium rates are less than the applicable esti-
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mated 
risk 
premium 
rate 
under 
section 
1307(a)(1) for the area in which the property 
is located, the Director of the Federal Emer-
gency Management Agency shall increase the 
chargeable premium rates for such property 
over time to such applicable estimated risk pre-
mium rate under section 1307(a)(1). 
(B) ANNUAL
INCREASE.—Such increase 
shall be made by increasing the chargeable pre-
mium rates for the property (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 paragraph (1) of this subsection and 
once every 12 months thereafter until such in-
crease is accomplished, by 20 percent (or such 
lesser amount as may be necessary so that the 
chargeable rate does not exceed such applicable 
estimated risk premium rate or to comply with 
subparagraph (C)). 
(C) 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, 
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during any 12-month period, in the chargeable 
premium rate for the property that is attrib-
utable to this paragraph or to an increase de-
scribed in section 1308(e) of the National Flood 
Insurance Act of 1968 may not exceed 20 per-
cent. 
(D) FULL ACTUARIAL RATES.—The provi-
sions of paragraphs (2) and (3) of such section 
1308(c) shall apply to such a property upon the 
accomplishment of the increase under this para-
graph and thereafter. 
SEC. 6. 5-YEAR DELAY IN EFFECTIVE DATE OF MANDATORY 
PURCHASE REQUIREMENT FOR NEW FLOOD 
HAZARD AREAS. 
(a) IN GENERAL.—Section 102 of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4012a) is amended by 
adding at the end the following new subsection: 
‘‘(i) DELAYED EFFECTIVE DATE OF MANDATORY 
PURCHASE REQUIREMENT
FOR NEW FLOOD HAZARD 
AREAS.— 
‘‘(1) IN GENERAL.—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 an area hav-
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ing special flood hazards, if each State and local 
government having jurisdiction over any portion of 
the geographic area has complied with paragraph 
(2), such designation shall not take effect for pur-
poses of subsection (a), (b), or (e) of this section, or 
section 202(a) of this Act, until the expiration of the 
5-year period beginning upon the date that such 
maps, as issued, revised, update, or otherwise 
changed, become effective. 
‘‘(2) NOTICE REQUIREMENTS.—A State or local 
government having shall be considered to have com-
plied with this paragraph with respect to any geo-
graphic area described in paragraph (1) only if the 
State or local government has, before the effective 
date of the issued, revised, updated, or changed 
maps, and in accordance with such standards as 
shall be established by the Director— 
‘‘(A) developed an evacuation plan to be 
implemented in the event of flooding in such 
portion of the geographic area; and 
‘‘(B) developed and implemented an out-
reach and communication plan to advise occu-
pants in such portion of the geographic area of 
potential flood risks, the opportunity to pur-
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chase flood insurance, and the consequences of 
failure to purchase flood insurance. 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
paragraph (1) 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 (1).’’. 
(b) CONFORMING AMENDMENT.—The second sen-
tence of subsection (h) of section 1360 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4101(h)) is 
amended by striking ‘‘Such’’ and inserting ‘‘Except for no-
tice regarding a change described in section 102(i)(1) of 
the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a(i)(1)), such’’. 
SEC. 7. 5-YEAR PHASE-IN OF FLOOD INSURANCE RATES 
FOR NEWLY MAPPED AREAS. 
Section 1308 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4015), as amended by the preceding pro-
visions of this Act, is further amended— 
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(1) in subsection (a), in the matter preceding 
paragraph (1), by inserting ‘‘or notice’’ after ‘‘pre-
scribe by regulation’’; 
(2) in subsection (c), by inserting ‘‘and sub-
section (g)’’ before the first comma; and 
(3) by adding at the end the following new sub-
section: 
‘‘(g) 5-YEAR
PHASE-IN
OF
FLOOD
INSURANCE 
RATES FOR NEWLY MAPPED AREAS.—Notwithstanding 
any other provision of law relating to chargeable risk pre-
mium 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-year period that begins upon the expira-
tion of the period referred to in section 102(i)(1) of the 
Flood Disaster Protection Act of 1973 with respect to 
such area, the chargeable premium rate for flood insur-
ance under this title with respect to any property that is 
located within such area shall be— 
‘‘(1) for the first year of such 5-year period, 20 
percent of the chargeable risk premium rate other-
wise applicable under this title to the property; 
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‘‘(2) for the second year of such 5-year period, 
40 percent of the chargeable risk premium rate oth-
erwise applicable under this title to the property; 
‘‘(3) for the third year of such 5-year period, 60 
percent of the chargeable risk premium rate other-
wise applicable under this title to the property; 
‘‘(4) for the fourth year of such 5-year period, 
80 percent of the chargeable risk premium rate oth-
erwise applicable under this title to the property; 
and 
‘‘(5) for the fifth year of such 5-year period, 
100 percent of the chargeable risk premium rate 
otherwise applicable under this title to the prop-
erty.’’. 
SEC. 8. INCREASE IN ANNUAL LIMITATION ON PREMIUM IN-
CREASES. 
Section 1308(e) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015(e)) is amended by striking ‘‘10 
percent’’ and inserting ‘‘20 percent’’. 
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SEC. 
9. 
CONSIDERATION 
OF 
CONSTRUCTION, 
RECON-
STRUCTION, AND IMPROVEMENT OF FLOOD 
PROTECTION SYSTEMS IN DETERMINATION 
OF FLOOD INSURANCE RATES. 
(a) IN GENERAL.—Section 1307 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4014) is amend-
ed— 
(1) in subsection (e)— 
(A) in the first sentence, by striking ‘‘con-
struction of a flood protection system’’ and in-
serting ‘‘construction, reconstruction, or im-
provement of a flood protection system (without 
respect to the level of Federal investment or 
participation)’’; and 
(B) in the second sentence— 
(i) by striking ‘‘construction of a flood 
protection system’’ and inserting ‘‘con-
struction, reconstruction, or improvement 
of a flood protection system’’; and 
(ii) by inserting ‘‘based on the present 
value of the completed system’’ after ‘‘has 
been expended’’; and 
(2) in subsection (f)— 
(A) in the first sentence in the matter pre-
ceding paragraph (1), by inserting ‘‘(without re-
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spect to the level of Federal investment or par-
ticipation)’’ before the period at the end; 
(B) in the third sentence in the matter 
preceding paragraph (1), by inserting ‘‘, wheth-
er coastal or riverine,’’ after ‘‘special flood haz-
ard’’; and 
(C) in paragraph (1), by striking ‘‘a Fed-
eral agency in consultation with the local 
project sponsor’’ and inserting ‘‘the entity or 
entities that own, operate, maintain, or repair 
such system’’. 
(b) REGULATIONS.—Not later than 90 days after the 
date of the enactment of this Act, the Administrator of 
the Federal Emergency Management Agency shall promul-
gate regulations to carry out the amendments made by 
subsection (a). Section 5 may not be construed to annul, 
alter, affect, authorize any waiver of, or establish any ex-
ception to, the requirement under the preceding sentence. 
(c) IMPLEMENTATION.—The Administrator of the 
Federal Emergency Management Agency shall implement 
this section and the amendments made by this section in 
a manner that will not materially weaken the financial po-
sition of the national flood insurance program or increase 
the risk of financial liability to Federal taxpayers. 
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SEC. 10. TREATMENT OF CERTAIN FLOOD PROTECTION 
PROJECTS. 
Section 1308 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4015), as amended by the preceding pro-
visions of this Act, is further amended by adding at the 
end the following new subsection: 
‘‘(h) TREATMENT OF CERTAIN FLOOD PROTECTION 
PROJECTS.— 
‘‘(1) INAPPLICABILITY
OF
MANDATORY
PUR-
CHASE REQUIREMENT; PREMIUM RATES.—Notwith-
standing any other provision of law, upon full com-
pletion, as designed, of a flood protection system 
that was intended to provide flood protection with 
respect to a covered area, such covered area— 
‘‘(A) shall not be considered to be an area 
having special flood hazards for purposes of this 
Act or subsections (a), (b), or (e) of section 
102, or section 202(a) of the Flood Disaster 
Protection Act of 1973; and 
‘‘(B) shall be eligible for flood insurance 
under this Act, if and to the extent that such 
area is eligible for such insurance under the 
other provisions of this Act, at premium rates 
not exceeding those that would be applicable 
under this section if the flood protection system 
referred to in paragraph (2) for such area had 
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‘‘(II) a determination regarding ac-
creditation has not been made; and 
‘‘(III) is in an area having special 
flood hazards; 
‘‘(B) that was designed to provide protec-
tion for at least the 100-year frequency flood; 
and 
‘‘(C) that has been determined, pursuant 
to waterflow data or other scientific information 
of a Federal agency obtained after, or that has 
changed since, commencement of construction, 
reconstruction, or improvement, will not provide 
protection from floods at the level referred to in 
subparagraph (B).’’. 
SEC. 11. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE 
DATE OF POLICIES. 
Section 1306(c)(2)(A) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4013(c)(2)(A)) is amended 
by inserting before the semicolon the following: ‘‘or is in 
connection with the purchase or other transfer of the prop-
erty for which the coverage is provided (regardless of 
whether a loan is involved in the purchase or transfer 
transaction), but only when such initial purchase of cov-
erage is made not later 30 days after such making, in-
creasing, extension, or renewal of the loan or not later 
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than 30 days after such purchase or other transfer of the 
property, as applicable’’. 
SEC. 12. ENFORCEMENT. 
Section 102(f) of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4012a(f)) is amended— 
(1) in paragraph (5)— 
(A) in the first sentence, by striking 
‘‘$350’’ and inserting ‘‘$2,000’’; and 
(B) in the last sentence, by striking 
‘‘$100,000’’ and inserting ‘‘$1,000,000; except 
that such limitation shall not apply to a regu-
lated lending institution or enterprise for a cal-
endar year if, in any three (or more) of the five 
calendar years immediately preceding such cal-
endar year, the total amount of penalties as-
sessed under this subsection against such lend-
ing institution or enterprise was $1,000,000’’; 
and 
(2) in paragraph (6), by adding after the period 
at the end the following: ‘‘No penalty may be im-
posed under this subsection on a regulated lending 
institution or enterprise that has made a good faith 
effort to comply with the requirements of the provi-
sions referred to in paragraph (2) or for any non- 
material violation of such requirements.’’. 
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SEC. 13. NOTIFICATION TO TENANTS OF AVAILABILITY OF 
CONTENTS INSURANCE. 
The National Flood Insurance Act of 1968 is amend-
ed by inserting after section 1308 (42 U.S.C. 4015) the 
following new section: 
‘‘SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY 
OF CONTENTS INSURANCE. 
‘‘(a) IN GENERAL.—The Director shall, upon enter-
ing into a contract for flood insurance coverage under this 
title for any property— 
‘‘(1) provide to the insured sufficient copies of 
the notice developed pursuant to subsection (b); and 
‘‘(2) require the insured to provide a copy of 
the notice, or otherwise provide notification of the 
information under subsection (b) in the manner that 
the manager or landlord deems most appropriate, to 
each such tenant and to each new tenant upon com-
mencement of such a tenancy. 
‘‘(b) NOTICE.—Notice to a tenant of a property in 
accordance with this subsection is written notice that 
clearly informs a tenant— 
‘‘(1) whether the property is located in an area 
having special flood hazards; 
‘‘(2) that flood insurance coverage is available 
under the national flood insurance program under 
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this title for contents of the unit or structure leased 
by the tenant; 
‘‘(3) of the maximum amount of such coverage 
for contents available under this title at that time; 
and 
‘‘(4) of where to obtain information regarding 
how to obtain such coverage, including a telephone 
number, mailing address, and Internet site of the 
Director where such information is available.’’. 
SEC. 14. FLOOD INSURANCE OUTREACH. 
Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.), as amended by the pre-
ceding provisions of this Act, is further amended by add-
ing at the end the following new section: 
‘‘SEC. 1326. 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-
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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— 
‘‘(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; 
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