SECTION 1. PHASE-IN OF ACTUARIAL RATES FOR CERTAIN 
PRE-FIRM PROPERTIES. 
(a) IN GENERAL.—Section 1308(c) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(c)) is amend-
ed— 
(1) by redesignating paragraph (2) as para-
graph (3); and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) RECENTLY PURCHASED PRE-FIRM SINGLE 
FAMILY
PROPERTIES
USED
AS
PRINCIPAL
RESI-
DENCES.—Any single family property that is used as 
a principal residence that— 
‘‘(A) has been constructed or substantially 
improved and for which such construction or im-
provement was started, as determined by the Di-
rector, before December 31, 1974, or before the ef-
fective date of the initial rate map published by 
the Director under paragraph (2) of section 1360 
for the area in which such property is located, 
whichever is later; and 
‘‘(B) is purchased— 
‘‘(i) after the date of enactment of this 
paragraph; and 
‘‘(ii) for not less than $600,000.’’. 
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(b) TECHNICAL AMENDMENTS.—Section 1308(c) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4015(c)) 
is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘the limitations provided under paragraphs 
(1) and (2)’’ and inserting ‘‘subsection (e)’’; and 
(2) in paragraph (1), by striking ‘‘, except’’ and 
all that follows through ‘‘subsection (e)’’. 
(c) EFFECTIVE DATE AND TRANSITION.— 
(1) EFFECTIVE DATE.—The amendments made 
by subsections (a) and (b) shall apply beginning on 
January 1, 2011, 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) of section 1308(c) of the National Flood In-
surance Act of 1968, as amended by subsection 
(a) of this section, that, as of the effective date 
under paragraph (1) of this subsection, is cov-
ered under a policy for flood insurance made 
available under the national flood insurance pro-
gram for which the chargeable premium rates 
are less than the applicable estimated risk pre-
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mium rate under section 1307(a)(1) for the area 
in which the property is located, the Director of 
the Federal Emergency Management Agency 
shall increase the chargeable premium rates for 
such property over time to such applicable esti-
mated 
risk 
premium 
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 ap-
plicable 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 increase is 
accomplished, by 15 percent (or such lesser 
amount as may be necessary so that the charge-
able rate does not exceed such applicable esti-
mated risk premium rate or to comply with sub-
paragraph (C)). Any increase in chargeable pre-
mium 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) FULL ACTUARIAL RATES.—The provi-
sions of paragraph (2) of such section 1308(c) 
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shall apply to such a property upon the accom-
plishment of the increase under this paragraph 
and thereafter. 
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Union Calendar No. 311 
110TH CONGRESS 
2D SESSION 
H. R. 3959 
[Report No. 110–510] 
A BILL 
To amend the National Flood Insurance Act of 
1968 to provide for the phase-in of actuarial 
rates for certain pre-FIRM properties. 
JANUARY 16, 2008 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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