HR 3121 RFS
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-
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 15 percent (or such 
lesser amount as may be necessary so that the 
chargeable rate does not exceed such applicable 
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estimated risk premium rate or to comply with 
subparagraph (C)). Any increase in chargeable 
premium rates for a property pursuant to this 
paragraph shall not be considered for purposes 
of the limitation under section 1308(e) of such 
Act. 
(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, 
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 the fol-
lowing percentage: 
(i) NONRESIDENTIAL PROPERTIES.— 
In the case of any property described in 
such section 1308(c)(2), 20 percent. 
(ii) NON-PRIMARY
RESIDENCES.—In 
the case of any property described in such 
section 1308(c)(3), 25 percent. 
(D) FULL ACTUARIAL RATES.—The provi-
sions of paragraphs (2) and (3) of such section 
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1308(c) shall apply to such a property upon the 
accomplishment of the increase under this para-
graph and thereafter. 
SEC. 5. 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 
than 30 days after such purchase or other transfer of the 
property, as applicable’’. 
SEC. 6. 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-
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