of any kind or nature. The term ‘‘compensatory 
damages’’ includes economic damages and non-
economic damages, as such terms are defined in this 
section. 
(5) CONTINGENT FEE.—The term ‘‘contingent 
fee’’ includes all compensation to any person or per-
sons which is payable only if a recovery is effected 
on behalf of one or more claimants. 
(6) ECONOMIC DAMAGES.—The term ‘‘economic 
damages’’ means objectively verifiable monetary 
losses incurred as a result of the provision of, use 
of, or payment for (or failure to provide, use, or pay 
for) health care services or medical products, such as 
past and future medical expenses, loss of past and 
future earnings, cost of obtaining domestic services, 
loss of employment, and loss of business or employ-
ment opportunities. 
(7) 
HEALTH
CARE
LAWSUIT.—The 
term 
‘‘health care lawsuit’’ means any health care liability 
claim concerning the provision of health care goods 
or services or any medical product affecting inter-
state commerce, or any health care liability action 
concerning the provision of health care goods or 
services or any medical product affecting interstate 
commerce, brought in a State or Federal court or 
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pursuant to an alternative dispute resolution system, 
against a health care provider, a health care organi-
zation, or the manufacturer, distributor, supplier, 
marketer, promoter, or seller of a medical product, 
regardless of the theory of liability on which the 
claim is based, or the number of claimants, plain-
tiffs, defendants, or other parties, or the number of 
claims or causes of action, in which the claimant al-
leges a health care liability claim. Such term does 
not include a claim or action which is based on 
criminal liability; which seeks civil fines or penalties 
paid to Federal, State, or local government; or which 
is grounded in antitrust. 
(8) HEALTH
CARE
LIABILITY
ACTION.—The 
term ‘‘health care liability action’’ means a civil ac-
tion brought in a State or Federal court or pursuant 
to an alternative dispute resolution system, against 
a health care provider, a health care organization, or 
the manufacturer, distributor, supplier, marketer, 
promoter, or seller of a medical product, regardless 
of the theory of liability on which the claim is based, 
or the number of plaintiffs, defendants, or other par-
ties, or the number of causes of action, in which the 
claimant alleges a health care liability claim. 
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(9) HEALTH
CARE
LIABILITY
CLAIM.—The 
term ‘‘health care liability claim’’ means a demand 
by any person, whether or not pursuant to ADR, 
against a health care provider, health care organiza-
tion, or the manufacturer, distributor, supplier, mar-
keter, promoter, or seller of a medical product, in-
cluding, but not limited to, third-party claims, cross- 
claims, counter-claims, or contribution claims, which 
are based upon the provision of, use of, or payment 
for (or the failure to provide, use, or pay for) health 
care services or medical products, regardless of the 
theory of liability on which the claim is based, or the 
number of plaintiffs, defendants, or other parties, or 
the number of causes of action. 
(10) HEALTH CARE ORGANIZATION.—The term 
‘‘health care organization’’ means any person or en-
tity which is obligated to provide or pay for health 
benefits under any health plan, including any person 
or entity acting under a contract or arrangement 
with a health care organization to provide or admin-
ister any health benefit. 
(11) HEALTH
CARE
PROVIDER.—The term 
‘‘health care provider’’ means any person or entity 
required by State or Federal laws or regulations to 
be licensed, registered, or certified to provide health 
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care services, and being either so licensed, reg-
istered, or certified, or exempted from such require-
ment by other statute or regulation. 
(12) HEALTH CARE GOODS OR SERVICES.—The 
term ‘‘health care goods or services’’ means any 
goods or services provided by a health care organiza-
tion, provider, or by any individual working under 
the supervision of a health care provider, that relates 
to the diagnosis, prevention, or treatment of any 
human disease or impairment, or the assessment or 
care of the health of human beings. 
(13) MALICIOUS
INTENT
TO
INJURE.—The 
term ‘‘malicious intent to injure’’ means inten-
tionally causing or attempting to cause physical in-
jury other than providing health care goods or serv-
ices. 
(14) MEDICAL PRODUCT.—The term ‘‘medical 
product’’ means a drug, device, or biological product 
intended for humans, and the terms ‘‘drug’’, ‘‘de-
vice’’, and ‘‘biological product’’ have the meanings 
given such terms in sections 201(g)(1) and 201(h) 
of the Federal Food, Drug and Cosmetic Act (21 
U.S.C. 321(g)(1) and (h)) and section 351(a) of the 
Public Health Service Act (42 U.S.C. 262(a)), re-
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spectively, including any component or raw material 
used therein, but excluding health care services. 
(15) 
NONECONOMIC
DAMAGES.—The 
term 
‘‘noneconomic damages’’ means damages for phys-
ical and emotional pain, suffering, inconvenience, 
physical impairment, mental anguish, disfigurement, 
loss of enjoyment of life, loss of society and compan-
ionship, loss of consortium (other than loss of do-
mestic service), hedonic damages, injury to reputa-
tion, and all other nonpecuniary losses of any kind 
or nature. 
(16) PUNITIVE DAMAGES.—The term ‘‘punitive 
damages’’ means damages awarded, for the purpose 
of punishment or deterrence, and not solely for com-
pensatory purposes, against a health care provider, 
health care organization, or a manufacturer, dis-
tributor, or supplier of a medical product. Punitive 
damages are neither economic nor noneconomic 
damages. 
(17) RECOVERY.—The term ‘‘recovery’’ means 
the net sum recovered after deducting any disburse-
ments or costs incurred in connection with prosecu-
tion or settlement of the claim, including all costs 
paid or advanced by any person. Costs of health care 
incurred by the plaintiff and the attorneys’ office 
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overhead costs or charges for legal services are not 
deductible disbursements or costs for such purpose. 
(18) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, 
Guam, American Samoa, the Northern Mariana Is-
lands, the Trust Territory of the Pacific Islands, and 
any other territory or possession of the United 
States, or any political subdivision thereof. 
SEC. 229. EFFECT ON OTHER LAWS. 
(a) VACCINE INJURY.— 
(1) To the extent that title XXI of the Public 
Health Service Act establishes a Federal rule of law 
applicable to a civil action brought for a vaccine-re-
lated injury or death— 
(A) this subtitle does not affect the appli-
cation of the rule of law to such an action; and 
(B) any rule of law prescribed by this sub-
title in conflict with a rule of law of such title 
XXI shall not apply to such action. 
(2) If there is an aspect of a civil action 
brought for a vaccine-related injury or death to 
which a Federal rule of law under title XXI of the 
Public Health Service Act does not apply, then this 
subtitle or otherwise applicable law (as determined 
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under this subtitle) will apply to such aspect of such 
action. 
(b) OTHER FEDERAL LAW.—Except as provided in 
this section, nothing in this subtitle shall be deemed to 
affect any defense available to a defendant in a health care 
lawsuit or action under any other provision of Federal law. 
SEC. 
230. 
STATE 
FLEXIBILITY 
AND 
PROTECTION 
OF 
STATES’ RIGHTS. 
(a) HEALTH CARE LAWSUITS.—The provisions gov-
erning health care lawsuits set forth in this subtitle pre-
empt, subject to subsections (b) and (c), State law to the 
extent that State law prevents the application of any pro-
visions of law established by or under this subtitle. The 
provisions governing health care lawsuits set forth in this 
subtitle supersede chapter 171 of title 28, United States 
Code, to the extent that such chapter— 
(1) provides for a greater amount of damages 
or contingent fees, a longer period in which a health 
care lawsuit may be commenced, or a reduced appli-
cability or scope of periodic payment of future dam-
ages, than provided in this subtitle; or 
(2) prohibits the introduction of evidence re-
garding collateral source benefits, or mandates or 
permits subrogation or a lien on collateral source 
benefits. 
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(b) PROTECTION OF STATES’ RIGHTS AND OTHER 
LAWS.—(1) Any issue that is not governed by any provi-
sion of law established by or under this subtitle (including 
State standards of negligence) shall be governed by other-
wise applicable State or Federal law. 
(2) This subtitle shall not preempt or supersede any 
State or Federal law that imposes greater procedural or 
substantive protections for health care providers and 
health care organizations from liability, loss, or damages 
than those provided by this subtitle or create a cause of 
action. 
(c) STATE FLEXIBILITY.—No provision of this sub-
title shall be construed to preempt— 
(1) any State law (whether effective before, on, 
or after the date of the enactment of this subtitle) 
that specifies a particular monetary amount of com-
pensatory or punitive damages (or the total amount 
of damages) that may be awarded in a health care 
lawsuit, regardless of whether such monetary 
amount is greater or lesser than is provided for 
under this subtitle, notwithstanding section 223(a); 
or 
(2) any defense available to a party in a health 
care lawsuit under any other provision of State or 
Federal law. 
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SEC. 231. APPLICABILITY; EFFECTIVE DATE. 
This subtitle shall apply to any health care lawsuit 
brought in a Federal or State court, or subject to an alter-
native dispute resolution system, that is initiated on or 
after the date of the enactment of this subtitle, except that 
any health care lawsuit arising from an injury occurring 
prior to the date of the enactment of this subtitle shall 
be governed by the applicable statute of limitations provi-
sions in effect at the time the injury occurred. 
TITLE III—FINANCIAL SERVICES 
SEC. 301. TABLE OF CONTENTS. 
The table of contents for this title is as follows: 
TITLE III—FINANCIAL SERVICES 
Sec. 301. Table of contents. 
Subtitle A—Orderly Liquidation Fund 
Sec. 311. Repeal of liquidation authority. 
Subtitle B—Home Affordable Modification Program 
Sec. 321. Short title. 
Sec. 322. Congressional findings. 
Sec. 323. Termination of authority. 
Sec. 324. Sense of Congress. 
Subtitle C—Bureau of Consumer Financial Protection 
Sec. 331. Bringing the Bureau of Consumer Financial Protection into the reg-
ular appropriations process. 
Subtitle D—Flood Insurance Reform 
Sec. 341. Short title. 
Sec. 342. Extensions. 
Sec. 343. Mandatory purchase. 
Sec. 344. Reforms of coverage terms. 
Sec. 345. Reforms of premium rates. 
Sec. 346. Technical Mapping Advisory Council. 
Sec. 347. FEMA incorporation of new mapping protocols. 
Sec. 348. Treatment of levees. 
Sec. 349. Privatization initiatives. 
Sec. 350. FEMA annual report on insurance program. 
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Sec. 351. Mitigation assistance. 
Sec. 352. Notification to homeowners regarding mandatory purchase require-
ment applicability and rate phase-ins. 
Sec. 353. Notification to members of congress of flood map revisions and up-
dates. 
Sec. 354. Notification and appeal of map changes; notification to communities 
of establishment of flood elevations. 
Sec. 355. Notification to tenants of availability of contents insurance. 
Sec. 356. Notification to policy holders regarding direct management of policy 
by FEMA. 
Sec. 357. Notice of availability of flood insurance and escrow in RESPA good 
faith estimate. 
Sec. 358. Reimbursement for costs incurred by homeowners and communities 
obtaining letters of map amendment or revision. 
Sec. 359. Enhanced communication with certain communities during map up-
dating process. 
Sec. 360. Notification to residents newly included in flood hazard areas. 
Sec. 361. Treatment of swimming pool enclosures outside of hurricane season. 
Sec. 362. Information regarding multiple perils claims. 
Sec. 363. FEMA authority to reject transfer of policies. 
Sec. 364. Appeals. 
Sec. 365. Reserve fund. 
Sec. 366. CDBG eligibility for flood insurance outreach activities and commu-
nity building code administration grants. 
Sec. 367. Technical corrections. 
Sec. 368. Requiring competition for national flood insurance program policies. 
Sec. 369. Studies of voluntary community-based flood insurance options. 
Sec. 370. Report on inclusion of building codes in floodplain management cri-
teria. 
Sec. 371. Study on graduated risk. 
Sec. 372. Report on flood-in-progress determination. 
Sec. 373. Study on repaying flood insurance debt. 
Sec. 374. No cause of action. 
Sec. 375. Authority for the corps of engineers to provide specialized or technical 
services. 
Subtitle E—Repeal of the Office of Financial Research 
Sec. 381. Repeal of the Office of Financial Research. 
Subtitle A—Orderly Liquidation 
Fund 
SEC. 311. REPEAL OF LIQUIDATION AUTHORITY. 
(a) IN GENERAL.—Title II of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act is hereby re-
pealed and any Federal law amended by such title shall, 
on and after the date of enactment of this Act, be effective 
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as if title II of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act had not been enacted. 
(b) CONFORMING AMENDMENTS.— 
(1) DODD-FRANK WALL STREET REFORM AND 
CONSUMER
PROTECTION
ACT.—The Dodd-Frank 
Wall Street Reform and Consumer Protection Act is 
amended— 
(A) in the table of contents for such Act, 
by striking all items relating to title II; 
(B) in section 165(d)(6), by striking ‘‘, a 
receiver appointed under title II,’’; 
(C) in section 716(g), by striking ‘‘or a 
covered financial company under title II’’; 
(D) in section 1105(e)(5), by striking 
‘‘amount of any securities issued under that 
chapter 31 for such purpose shall be treated in 
the same manner as securities issued under sec-
tion 208(n)(5)(E)’’ and inserting ‘‘issuances of 
such securities under that chapter 31 for such 
purpose shall by treated as public debt trans-
actions of the United States, and the proceeds 
from the sale of any obligations acquired by the 
Secretary under this paragraph shall be depos-
ited into the Treasury of the United States as 
miscellaneous receipts’’; and 
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(E) in section 1106(c)(2), by amending 
subparagraph (A) to read as follows: 
‘‘(A) require the company to file a petition 
for bankruptcy under section 301 of title 11, 
United States Code; or’’. 
(2) FEDERAL DEPOSIT INSURANCE ACT.—Sec-
tion 10(b)(3) of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(b)(3)) is amended by striking ‘‘, or 
of such nonbank financial company supervised by 
the Board of Governors or bank holding company 
described in section 165(a) of the Financial Stability 
Act of 2010, for the purpose of implementing its au-
thority to provide for orderly liquidation of any such 
company under title II of that Act’’. 
(3) FEDERAL RESERVE ACT.—Section 13(3) of 
the Federal Reserve Act is amended— 
(A) in subparagraph (B)— 
(i) in clause (ii), by striking ‘‘, resolu-
tion under title II of the Dodd-Frank Wall 
Street Reform and Consumer Protection 
Act, or’’ and inserting ‘‘or is subject to 
resolution under’’; and 
(ii) in clause (iii), by striking ‘‘, reso-
lution under title II of the Dodd-Frank 
Wall Street Reform and Consumer Protec-
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tion Act, or’’ and inserting ‘‘or resolution 
under’’; and 
(B) by striking subparagraph (E). 
Subtitle B—Home Affordable 
Modification Program 
SEC. 321. SHORT TITLE. 
This subtitle may be cited as the ‘‘HAMP Termi-
nation Act of 2012’’. 
SEC. 322. CONGRESSIONAL FINDINGS. 
The Congress finds the following: 
(1) According to the Department of the Treas-
ury— 
(A) the Home Affordable Modification Pro-
gram (HAMP) is designed to ‘‘help as many as 
3 to 4 million financially struggling homeowners 
avoid foreclosure by modifying loans to a level 
that is affordable for borrowers now and sus-
tainable over the long term’’; and 
(B) as of February 2012, only 782,609 ac-
tive permanent mortgage modifications were 
made under HAMP. 
(2) Many homeowners whose HAMP modifica-
tions were canceled suffered because they made fu-
tile payments and some of those homeowners were 
even forced into foreclosure. 
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(3) The Special Inspector General for TARP 
reported that HAMP ‘‘benefits only a small portion 
of distressed homeowners, offers others little more 
than false hope, and in certain cases causes more 
harm than good’’. 
(4) Approximately $30 billion was obligated by 
the Department of the Treasury to HAMP, however, 
approximately only $2.54 billion has been disbursed. 
(5) Terminating HAMP would save American 
taxpayers approximately $2.84 billion, according to 
the Congressional Budget Office. 
SEC. 323. TERMINATION OF AUTHORITY. 
Section 120 of the Emergency Economic Stabilization 
Act of 2008 (12 U.S.C. 5230) is amended by adding at 
the end the following new subsection: 
‘‘(c) TERMINATION
OF AUTHORITY TO PROVIDE 
NEW ASSISTANCE UNDER
THE HOME AFFORDABLE 
MODIFICATION PROGRAM.— 
‘‘(1) IN GENERAL.—Except as provided under 
paragraph (2), after the date of the enactment of 
this subsection the Secretary may not provide any 
assistance under the Home Affordable Modification 
Program under the Making Home Affordable initia-
tive of the Secretary, authorized under this Act, on 
behalf of any homeowner. 
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‘‘(2) PROTECTION OF EXISTING OBLIGATIONS 
ON BEHALF OF HOMEOWNERS ALREADY EXTENDED 
AN
OFFER
TO
PARTICIPATE
IN
THE
PROGRAM.— 
Paragraph (1) shall not apply with respect to assist-
ance provided on behalf of a homeowner who, before 
the date of the enactment of this subsection, was ex-
tended an offer to participate in the Home Afford-
able Modification Program on a trial or permanent 
basis. 
‘‘(3) DEFICIT REDUCTION.— 
‘‘(A) USE OF UNOBLIGATED FUNDS.—Not-
withstanding any other provision of this title, 
the amounts described in subparagraph (B) 
shall not be available after the date of the en-
actment of this subsection for obligation or ex-
penditure under the Home Affordable Modifica-
tion Program of the Secretary, but should be 
covered into the General Fund of the Treasury 
and should be used only for reducing the budg-
et deficit of the Federal Government. 
‘‘(B) IDENTIFICATION
OF
UNOBLIGATED 
FUNDS.—The amounts described in this sub-
paragraph are any amounts made available 
under title I of the Emergency Economic Sta-
bilization Act of 2008 that— 
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‘‘(i) have been allocated for use, but 
not yet obligated as of the date of the en-
actment of this subsection, under the 
Home Affordable Modification Program of 
the Secretary; and 
‘‘(ii) are not necessary for providing 
assistance under such Program on behalf 
of homeowners who, pursuant to para-
graph (2), may be provided assistance 
after the date of the enactment of this sub-
section. 
‘‘(4) STUDY OF USE OF PROGRAM BY MEMBERS 
OF
THE
ARMED
FORCES, VETERANS, AND
GOLD 
STAR RECIPIENTS.— 
‘‘(A) STUDY.—The Secretary shall conduct 
a study to determine the extent of usage of the 
Home Affordable Modification Program by, and 
the impact of such Program on, covered home-
owners. 
‘‘(B) REPORT.—Not later than the expira-
tion of the 90-day period beginning on the date 
of the enactment of this subsection, the Sec-
retary shall submit to the Congress a report 
setting forth the results of the study under sub-
paragraph (A) and identifying best practices, 
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derived from studying the Home Affordable 
Modification Program, that could be applied to 
existing mortgage assistance programs available 
to covered homeowners. 
‘‘(C) COVERED
HOMEOWNER.—For pur-
poses of this subsection, the term ‘covered 
homeowner’ means a homeowner who is— 
‘‘(i) a member of the Armed Forces of 
the United States on active duty or the 
spouse or parent of such a member; 
‘‘(ii) a veteran, as such term is de-
fined in section 101 of title 38, United 
States Code; or 
‘‘(iii) eligible to receive a Gold Star 
lapel pin under section 1126 of title 10, 
United States Code, as a widow, parent, or 
next of kin of a member of the Armed 
Forces person who died in a manner de-
scribed in subsection (a) of such section. 
‘‘(5) PUBLICATION OF MEMBER AVAILABILITY 
FOR ASSISTANCE.—Not later than 5 days after the 
date of the enactment of this subsection, the Sec-
retary of the Treasury shall publish to its Website 
on the World Wide Web in a prominent location, 
large point font, and boldface type the following 
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statement: ‘The Home Affordable Modification Pro-
gram (HAMP) has been terminated. If you are hav-
ing trouble paying your mortgage and need help con-
tacting your lender or servicer for purposes of nego-
tiating or acquiring a loan modification, please con-
tact your Member of Congress to assist you in con-
tacting your lender or servicer for the purpose of ne-
gotiating or acquiring a loan modification.’. 
‘‘(6) NOTIFICATION TO HAMP APPLICANTS RE-
QUIRED.—Not later than 30 days after the date of 
the enactment of this subsection, the Secretary of 
the Treasury shall inform each individual who ap-
plied for the Home Affordable Modification Program 
and will not be considered for a modification under 
such Program due to termination of such Program 
under this subsection— 
‘‘(A) that such Program has been termi-
nated; 
‘‘(B) that loan modifications under such 
Program are no longer available; 
‘‘(C) of the name and contact information 
of such individual’s Member of Congress; and 
‘‘(D) that the individual should contact his 
or her Member of Congress to assist the indi-
vidual in contacting the individual’s lender or 
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servicer for the purpose of negotiating or ac-
quiring a loan modification.’’. 
SEC. 324. SENSE OF CONGRESS. 
The Congress encourages banks to work with home-
owners to provide loan modifications to those that are eli-
gible. The Congress also encourages banks to work and 
assist homeowners and prospective homeowners with fore-
closure prevention programs and information on loan 
modifications. 
Subtitle C—Bureau of Consumer 
Financial Protection 
SEC. 331. BRINGING THE BUREAU OF CONSUMER FINAN-
CIAL PROTECTION INTO THE REGULAR AP-
PROPRIATIONS PROCESS. 
Section 1017 of the Consumer Financial Protection 
Act of 2010 is amended— 
(1) in subsection (a)— 
(A) by amending the heading of such sub-
section to read as follows: ‘‘BUDGET, FINAN-
CIAL MANAGEMENT, AND AUDIT.—’’; 
(B) by striking paragraphs (1), (2), and 
(3); 
(C) by redesignating paragraphs (4) and 
(5) as paragraphs (1) and (2), respectively; and 
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(D) by striking subparagraphs (E) and (F) 
of paragraph (1), as so redesignated; 
(2) by striking subsections (b), (c), and (d); 
(3) by redesignating subsection (e) as sub-
section (b); and 
(4) in subsection (b), as so redesignated— 
(A) by striking paragraphs (1), (2), and 
(3) and inserting the following: 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There 
is 
authorized 
to 
be 
appropriated 
$200,000,000 to carry out this title for each of fiscal 
years 2012 and 2013.’’; and 
(B) by redesignating paragraph (4) as 
paragraph (2). 
Subtitle D—Flood Insurance 
Reform 
SEC. 341. SHORT TITLE. 
This subtitle may be cited as the ‘‘Flood Insurance 
Reform Act of 2012’’. 
SEC. 342. EXTENSIONS. 
(a) EXTENSION OF PROGRAM.—Section 1319 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4026) 
is amended by striking ‘‘the earlier of the date of the en-
actment into law of an Act that specifically amends the 
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date specified in this section or May 31, 2012’’ and insert-
ing ‘‘September 30, 2016’’. 
(b) EXTENSION OF FINANCING.—Section 1309(a) of 
such Act (42 U.S.C. 4016(a)) is amended by striking ‘‘the 
earlier of the date of the enactment into law of an Act 
that specifically amends the date specified in this section 
or May 31, 2012’’ and inserting ‘‘September 30, 2016’’. 
SEC. 343. MANDATORY PURCHASE. 
(a) AUTHORITY TO TEMPORARILY SUSPEND MANDA-
TORY PURCHASE REQUIREMENT.— 
(1) 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) AUTHORITY TO TEMPORARILY SUSPEND MAN-
DATORY PURCHASE REQUIREMENT.— 
‘‘(1) FINDING BY ADMINISTRATOR THAT AREA 
IS AN ELIGIBLE AREA.—For any area, upon a re-
quest submitted to the Administrator by a local gov-
ernment authority having jurisdiction over any por-
tion of the area, the Administrator shall make a 
finding of whether the area is an eligible area under 
paragraph (3). If the Administrator finds that such 
area is an eligible area, the Administrator shall, in 
the discretion of the Administrator, designate a pe-
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riod during which such finding shall be effective, 
which shall not be longer in duration than 12 
months. 
‘‘(2) SUSPENSION
OF
MANDATORY
PURCHASE 
REQUIREMENT.—If the Administrator makes a find-
ing under paragraph (1) that an area is an eligible 
area under paragraph (3), during the period speci-
fied in the finding, the designation of such eligible 
area as an area having special flood hazards shall 
not be effective for purposes of subsections (a), (b), 
and (e) of this section, and section 202(a) of this 
Act. Nothing in this paragraph may be construed to 
prevent any lender, servicer, regulated lending insti-
tution, Federal agency lender, the Federal National 
Mortgage Association, or the Federal Home Loan 
Mortgage Corporation, at the discretion of such enti-
ty, from requiring the purchase of flood insurance 
coverage in connection with the making, increasing, 
extending, or renewing of a loan secured by im-
proved real estate or a mobile home located or to be 
located in such eligible area during such period or 
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, 
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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 2012, 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 
‘‘(iii) for which the Administrator has 
determined measurable progress toward 
completion of such improvement, construc-
tion, reconstruction is being made and to-
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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.— 
‘‘(A) EXTENSION.— 
‘‘(i) AUTHORITY.—Except as provided 
in subparagraph (B), in the case of an eli-
gible area for which the Administrator has, 
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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.— 
‘‘(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 
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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. 
‘‘(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 
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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 
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— 
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(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- 
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. 
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‘‘(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: 
‘‘(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 
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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 
(4) by adding at the end the following new 
paragraph: 
‘‘(5) PRIVATE FLOOD INSURANCE DEFINED.— 
In this subsection, the term ‘private flood insurance’ 
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means a contract for flood insurance coverage al-
lowed for sale under the laws of any State.’’. 
SEC. 344. 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 
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 
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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 
(2) in paragraph (4)— 
(A) by striking ‘‘in the case of any nonresi-
dential property, including churches,’’ and in-
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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— 
(1) in paragraph (4), by striking ‘‘and’’ at the 
end; 
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(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 2012, 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), 
(3), (4), (5), or (6), the total of such coverage shall 
be made available only at chargeable rates that are 
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SEC. 351. 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)— 
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