IB 
Union Calendar No. 282 
111TH CONGRESS 
2D SESSION 
H. R. 5114 
[Report No. 111–495] 
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 
MAY 26, 2010 
Additional sponsors: Mr. STARK and Mr. SIRES 
MAY 26, 2010 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 22, 2010] 
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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. 
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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’’. 
(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, certain pre- 
FIRM properties, and non-primary 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. Notification to homeowners regarding mandatory purchase requirement 
applicability and rate phase-ins. 
Sec. 12. Coverage for additional living expenses and business interruption. 
Sec. 13. Exception to waiting period for effective date of policies. 
Sec. 14. Minimum deductibles for claims. 
Sec. 15. Payment of premiums in installments for low-income policyholders. 
Sec. 16. Enforcement. 
Sec. 17. Notification to tenants of availability of contents insurance. 
Sec. 18. Flood insurance outreach. 
Sec. 19. Notice of availability of flood insurance and escrow in RESPA good 
faith estimate. 
Sec. 20. Authorization of additional FEMA staff. 
Sec. 21. Plan to verify maintenance of flood insurance on Mississippi and Lou-
isiana properties receiving emergency supplemental funds. 
Sec. 22. Flood insurance advocate. 
Sec. 23. Eligibility of property demolition and rebuilding under flood mitigation 
assistance program. 
Sec. 24. Study regarding mandatory purchase requirement for non-federally re-
lated loans. 
Sec. 25. Study of methods to increase flood insurance program participation by 
low-income families. 
Sec. 26. Report on inclusion of building codes in floodplain management criteria. 
Sec. 27. Study on repaying flood insurance debt. 
Sec. 28. Study regarding impact of rate increases on pre-FIRM properties. 
Sec. 29. Study of effects of Act. 
Sec. 30. Rulemaking. 
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SEC. 2. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) since the enactment of National Flood Insur-
ance Act of 1968, the national flood insurance pro-
gram has been the primary source of reliable, reason-
ably priced, flood insurance coverage for millions of 
American homes and businesses; 
(2) today over 5,500,000 homes and businesses in 
the United States rely on the national flood insurance 
program to provide a degree of financial security; 
(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 partici-
pation since the establishment of the mandatory flood 
insurance purchase requirement; 
(4) several years of below-average flood claims 
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-
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gram to pay $598,000,000 of the principal of that 
outstanding debt; 
(5) though significant reforms are needed to fur-
ther 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; 
(6) increased flooding in areas outside des-
ignated special flood hazard areas prompted the Exec-
utive 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; 
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(9) the maximum coverage limits for flood insur-
ance policies should be increased to reflect inflation 
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 sig-
nificant 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 
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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’’. 
(c) EXTENSION OF PILOT PROGRAM FOR MITIGATION 
OF
SEVERE
REPETITIVE
LOSS
PROPERTIES.—Section 
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 nonresi-
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dential property that is a structure containing 
more than one dwelling unit that is made avail-
able for occupancy by rental (notwithstanding 
the provisions applicable to the determination of 
the risk premium rate for such property), addi-
tional flood insurance in excess of such limits 
shall be made available to every insured upon re-
newal and every applicant for insurance so as to 
enable any such insured or applicant to receive 
coverage up to a total amount that is equal to 
the product of the total number of such rental 
dwelling units in such property and the max-
imum coverage limit per dwelling unit specified 
in paragraph (2); except that in the case of any 
such multi-unit, nonresidential rental property 
that is a pre-FIRM structure (as such term is 
defined in section 578(b) of the National Flood 
Insurance Reform Act of 1994 (42 U.S.C. 4014 
note)), the risk premium rate for the first 
$500,000 of coverage shall be determined in ac-
cordance with section 1307(a)(2) and the risk 
premium rate for any coverage in excess of such 
amount shall be determined in accordance with 
section 1307(a)(1)’’. 
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SEC. 5. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDEN-
TIAL PROPERTIES, CERTAIN PRE-FIRM PROP-
ERTIES, AND NON-PRIMARY RESIDENCES. 
(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 (5); 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. 
‘‘(4) RECENTLY PURCHASED PRE-FIRM SINGLE- 
FAMILY
PROPERTIES
USED
AS
PRINCIPAL 
RESIDENCIES.—Any single family property 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-
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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 after the date of enact-
ment of the Flood Insurance Reform Priorities 
Act of 2010.’’. 
(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 
paragraphs (1) and (2)’’ and inserting ‘‘sub-
section (e)’’; and 
(B) in paragraph (1), by striking ‘‘, except’’ 
and all that follows through ‘‘subsection (e)’’; 
and 
(2) in subsection (e), by striking ‘‘paragraph (2) 
or (3)’’ and inserting ‘‘paragraph (5)’’. 
(c) EFFECTIVE DATE AND TRANSITION.— 
(1) EFFECTIVE DATE.—The amendments made 
by subsections (a) and (b) shall apply beginning upon 
the expiration of the 3-year period that begins on the 
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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 20 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)). 
(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, dur-
ing any 12-month period, in the chargeable pre-
mium rate for the property that is attributable 
to this paragraph or to an increase described in 
section 1308(e) of the National Flood Insurance 
Act of 1968 may not exceed 20 percent. 
(D) FULL ACTUARIAL RATES.—The provi-
sions of paragraphs (2), (3), and (4) of such sec-
tion 1308(c) shall apply to such a property upon 
the accomplishment of the increase under this 
paragraph and thereafter. 
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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 PUR-
CHASE REQUIREMENT FOR NEW FLOOD HAZARD AREAS.— 
‘‘(1) IN GENERAL.—In the case of any area that 
was not previously designated as an area having spe-
cial flood hazards and that, pursuant to any issuance, 
revision, updating, or other change in flood insurance 
maps that takes effect on or after September 1, 2008, 
becomes designated as an area having 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 purposes 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, up-
date, or otherwise changed, become effective. 
‘‘(2) NOTICE REQUIREMENTS.—A State or local 
government shall be considered to have complied with 
this paragraph with respect to any geographic area 
described in paragraph (1) only if the State or local 
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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 Di-
rector— 
‘‘(A) developed an evacuation plan to be im-
plemented in the event of flooding in such por-
tion 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 purchase 
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 applica-
bility of a designation of any area as an area having 
special flood hazards for purposes of the availability 
of flood insurance coverage, criteria for land manage-
ment and use, notification of flood hazards, eligibility 
for mitigation assistance, or any other purpose or 
provision not specifically referred to in paragraph 
(1).’’. 
(b) CONFORMING AMENDMENT.—The second sentence 
of subsection (h) of section 1360 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4101(h)) is amended by 
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striking ‘‘Such’’ and inserting ‘‘Except for notice 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’’. 
(c) NO REFUNDS.—Nothing in this section or the 
amendments made by this section may be construed to au-
thorize or require any payment or refund for flood insur-
ance 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 subsection (a). 
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 provi-
sions of this Act, is further amended— 
(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 premium rates 
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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 insur-
ance maps, becomes designated as such an area, during the 
5-year period that begins upon the expiration of the period 
referred to in section 102(i)(1) of the Flood Disaster Protec-
tion Act of 1973 with respect to such area, the chargeable 
premium rate for flood insurance under this title with re-
spect 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 otherwise 
applicable under this title to the property; 
‘‘(2) for the second year of such 5-year period, 40 
percent of the chargeable risk premium rate otherwise 
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 otherwise 
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 otherwise 
applicable under this title to the property; and 
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‘‘(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 property.’’. 
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’’. 
SEC. 9. CONSIDERATION OF CONSTRUCTION, RECONSTRUC-
TION, AND IMPROVEMENT OF FLOOD PRO-
TECTION 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 amended— 
(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 par-
ticipation)’’; and 
(B) in the second sentence— 
(i) by striking ‘‘construction of a flood 
protection system’’ and inserting ‘‘construc-
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tion, 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-
spect to the level of Federal investment or par-
ticipation)’’ before the period at the end; 
(B) in the third sentence in the matter pre-
ceding paragraph (1), by inserting ‘‘, whether 
coastal or riverine,’’ after ‘‘special flood hazard’’; 
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 sys-
tem’’. 
(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 promulgate 
regulations to carry out the amendments made by sub-
section (a). Section 5 may not be construed to annul, alter, 
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affect, authorize any waiver of, or establish any exception 
to, the requirement under the preceding sentence. 
(c) IMPLEMENTATION.—The Administrator of the Fed-
eral Emergency Management Agency shall implement this 
section and the amendments made by this section in a man-
ner that will not materially weaken the financial position 
of the national flood insurance program or increase the risk 
of financial liability to Federal taxpayers. 
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 provi-
sions 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 PURCHASE 
REQUIREMENT; PREMIUM
RATES.—Notwithstanding 
any other provision of law, upon full completion, as 
designed, of a flood protection system that was in-
tended 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, 
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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 
been completed and accredited as providing pro-
tection from floods at the level that the system 
was designed to provide (before construction, re-
construction, or improvement of the system, as 
applicable, began). 
The flood insurance rate maps shall indicate, for each 
covered area, the status of the area under subpara-
graphs (A) and (B). 
‘‘(2) COVERED AREA.—For purposes of this sub-
section, a covered area is an area that was intended 
to be protected by a flood protection system— 
‘‘(A)(i) for which, as of April 15, 2010— 
‘‘(I) construction, reconstruction, or 
improvement has not been completed; 
‘‘(II) adequate progress, within the 
meaning of section 1307(e), has been made 
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on such construction, reconstruction, or im-
provement; and 
‘‘(III) is in an area having special 
flood hazards; or 
‘‘(ii) for which, as of such date— 
‘‘(I) construction, reconstruction, or 
improvement has been completed; 
‘‘(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, re-
construction, or improvement, will not provide 
protection from floods at the level referred to in 
subparagraph (B).’’. 
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SEC. 11. NOTIFICATION TO HOMEOWNERS REGARDING 
MANDATORY PURCHASE REQUIREMENT AP-
PLICABILITY AND RATE PHASE-INS. 
Section 201 of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4105) is amended by adding at the end 
the following new subsection: 
‘‘(f) ANNUAL NOTIFICATION.—The Director, in con-
sultation with affected communities, shall establish and 
carry out a plan to notify residents of areas having special 
flood hazards, on an annual basis— 
‘‘(1) that they reside in such an area; 
‘‘(2) of the geographical boundaries of such area; 
‘‘(3) of whether section 1308(h) of the National 
Flood Insurance Act of 1968 applies to properties 
within such area; and 
‘‘(4) of the provisions of section 102 requiring 
purchase of flood insurance coverage for properties lo-
cated in such an area, including the date on which 
such provisions apply with respect to such area, tak-
ing into consideration section 102(i); and 
‘‘(5) of a general estimate of what similar home-
owners in similar areas typically pay for flood insur-
ance coverage, taking into consideration section 
1308(g) of the National Flood Insurance Act of 
1968;’’. 
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SEC. 12. COVERAGE FOR ADDITIONAL LIVING EXPENSES 
AND BUSINESS INTERRUPTION. 
Subsection (b) of section 1306 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4013) is amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (5)— 
(A) by inserting ‘‘pursuant to paragraph 
(2), (3), or (4)’’ after ‘‘any flood insurance cov-
erage’’; and 
(B) by striking the period at the end and 
inserting a semicolon; and 
(3) by adding at the end the following new para-
graphs: 
‘‘(6) in the case of any residential property, each 
renewal or new contract for flood insurance coverage 
shall provide not less than $1,000 aggregate liability 
per dwelling unit for any necessary increases in liv-
ing expenses incurred by the insured when losses from 
a flood make the residence unfit to live in, which cov-
erage shall be 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); 
‘‘(7) in the case of any residential property, op-
tional coverage for additional living expenses de-
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erage determined in accordance with section 
1307(a)(1).’’. 
SEC. 13. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE 
DATE OF POLICIES. 
Section 1306(c)(2)(A) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4013(c)(2)(A)) is amended by insert-
ing before the semicolon the following: ‘‘or is in connection 
with the purchase or other transfer of the property 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 coverage is made not later 
30 days after such making, increasing, extension, or re-
newal of the loan or not later than 30 days after such pur-
chase or other transfer of the property, as applicable’’. 
SEC. 14. 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 Director is’’; 
and 
(2) by adding at the end the following: 
‘‘(b) MINIMUM ANNUAL DEDUCTIBLES.— 
‘‘(1) PRE-FIRM PROPERTIES.—For any struc-
ture that is covered by flood insurance under this 
title, and on which construction or substantial im-
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provement occurred on or before December 31, 1974, 
or before the effective date of an initial flood insur-
ance rate map published by the Director under sec-
tion 1360 for the area in which such structure is lo-
cated, the minimum annual deductible for damage to 
or loss of such structure shall be— 
‘‘(A) $1,500, if the flood insurance coverage 
for such structure covers loss of, or physical dam-
age to, such structure in an amount equal to or 
less than $100,000; and 
‘‘(B) $2,000, if the flood insurance coverage 
for such structure covers loss of, or physical dam-
age to, such structure in an amount greater than 
$100,000. 
‘‘(2) POST-FIRM PROPERTIES.—For any struc-
ture that is covered by flood insurance under this 
title, and on which construction or substantial im-
provement occurred after December 31, 1974, or after 
the effective date of an initial flood insurance rate 
map published by the Director under section 1360 for 
the area in which such structure is located, the min-
imum annual deductible for damage to or loss of such 
structure shall be— 
‘‘(A) $750, if the flood insurance coverage 
for such structure covers loss of, or physical dam-
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age to, such structure in an amount equal to or 
less than $100,000; and 
‘‘(B) $1,000, if the flood insurance coverage 
for such structure covers loss of, or physical dam-
age to, such structure in an amount greater than 
$100,000.’’. 
SEC. 15. PAYMENT OF PREMIUMS IN INSTALLMENTS FOR 
LOW-INCOME POLICYHOLDERS. 
Section 1306 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4013) is amended by adding at the end 
the following new subsection: 
‘‘(d) PAYMENT OF PREMIUMS IN INSTALLMENTS FOR 
LOW-INCOME POLICYHOLDERS.—In addition to any other 
terms and conditions under subsection (a), such regulations 
shall provide that, in the case of any residential property 
that is owned by a family whose income level is at or below 
200 percent of the poverty line (as defined by the Office 
of Management and Budget, and revised annually in ac-
cordance with section 673 of the Omnibus Budget Reconcili-
ation Act of 1981 (42 U.S.C. 9902)) applicable to the size 
of such family, or a family that has no adult member who 
is employed, premiums for flood insurance coverage for such 
property may be paid in monthly installments.’’. 
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SEC. 16. ENFORCEMENT. 
Section 102(f) of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a(f)) is amended— 
(1) in paragraph (2)— 
(A) in subparagraph (A)(iii), by striking 
‘‘or’’ at the end; 
(B) in subparagraph (B), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(C) in connection with the making, in-
creasing, extending, servicing, or renewing of 
any loan, requiring the purchase of flood insur-
ance coverage under the National Flood Insur-
ance Act of 1968, or purchasing such coverage 
pursuant to subsection (e)(2), in an amount in 
excess of the minimum amount required under 
subsections (a) and (b) of this section.’’; 
(2) 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 
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calendar years immediately preceding such cal-
endar year, the total amount of penalties as-
sessed under this subsection against such lending 
institution or enterprise was $1,000,000’’; and 
(3) in paragraph (6), by adding after the period 
at the end the following: ‘‘No penalty may be imposed 
under this subsection on a regulated lending institu-
tion or enterprise that has made a good faith effort 
to comply with the requirements of the provisions re-
ferred to in paragraph (2) or for any non-material 
violation of such requirements.’’. 
SEC. 17. NOTIFICATION TO TENANTS OF AVAILABILITY OF 
CONTENTS INSURANCE. 
The National Flood Insurance Act of 1968 is amended 
by inserting after section 1308 (42 U.S.C. 4015) the fol-
lowing new section: 
‘‘SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY 
OF CONTENTS INSURANCE. 
‘‘(a) IN GENERAL.—The Director shall, upon entering 
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 infor-
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mation under subsection (b) in the manner that the 
manager or landlord deems most appropriate, to each 
such tenant and to each new tenant upon commence-
ment of such a tenancy. 
‘‘(b) NOTICE.—Notice to a tenant of a property in ac-
cordance 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 
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 Di-
rector where such information is available.’’. 
SEC. 18. FLOOD INSURANCE OUTREACH. 
Chapter I of the National Flood Insurance Act of 1968 
(42 U.S.C. 4011 et seq.), as amended by the preceding pro-
visions of this Act, is further amended by adding at the 
end the following new section: 
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‘‘SEC. 1326. GRANTS FOR OUTREACH TO PROPERTY OWNERS 
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-
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 in-
surance 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 
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and the effect of such inclusion or exclusion on the ap-
plicability of the mandatory flood insurance purchase 
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 com-
munity, including the continued flood risks to areas 
that are no longer subject to the flood insurance man-
datory purchase requirement; 
‘‘(4) educate such owners and renters regarding 
the benefits and costs of maintaining or acquiring 
flood insurance, including, where applicable, lower- 
cost preferred risk policies under this title for such 
properties and the contents of such properties; and 
‘‘(5) encouraging such owners and renters to 
maintain or acquire such coverage. 
‘‘(c) COST SHARING REQUIREMENT.— 
‘‘(1) IN GENERAL.—In any fiscal year, the Di-
rector may not provide a grant under this section to 
a local governmental agency in an amount exceeding 
3 times the amount that the agency certifies, as the 
Director shall require, that the agency will contribute 
from non-Federal funds to be used with grant 
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amounts only for carrying out activities described in 
subsection (b). 
‘‘(2) NON-FEDERAL
FUNDS.—For purposes of 
this subsection, the term ‘non-Federal funds’ includes 
State or local government agency amounts, in-kind 
contributions, any salary paid to staff to carry out 
the eligible activities of the grant recipient, the value 
of the time and services contributed by volunteers to 
carry out such services (at a rate determined by the 
Director), and the value of any donated material or 
building and the value of any lease on a building. 
‘‘(d) ADMINISTRATIVE COST LIMITATION.—Notwith-
standing subsection (b), the Director may use not more than 
5 percent of amounts made available under subsection (g) 
to cover salaries, expenses, and other administrative costs 
incurred by the Director in making grants and provide as-
sistance under this section. 
‘‘(e) APPLICATION AND SELECTION.— 
‘‘(1) IN GENERAL.—The Director shall provide 
for local governmental agencies described in sub-
section (a) to submit applications for grants under 
this section and for competitive selection, based on 
criteria established by the Director, of agencies sub-
mitting such applications to receive such grants. 
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‘‘(2) SELECTION CONSIDERATIONS.—In selecting 
applications of local government agencies to receive 
grants under paragraph (1), the Director shall con-
sider— 
‘‘(A) the existence of a cooperative technical 
partner agreement between the local govern-
mental agency and the Federal Emergency Man-
agement Agency; 
‘‘(B) the history of flood losses in the rel-
evant area that have occurred to properties, both 
inside and outside the special flood hazards 
zones, which are not covered by flood insurance 
coverage; 
‘‘(C) the estimated percentage of high-risk 
properties located in the relevant area that are 
not covered by flood insurance; 
‘‘(D) demonstrated success of the local gov-
ernmental agency in generating voluntary pur-
chase of flood insurance; and 
‘‘(E) demonstrated technical capacity of the 
local governmental agency for outreach to indi-
vidual property owners. 
‘‘(f) DIRECT OUTREACH BY FEMA.—In each fiscal 
year that amounts for grants are made available pursuant 
to subsection (h), the Director may use not more than 50 
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percent of such amounts to carry out, and to enter into con-
tracts with other entities to carry out, activities described 
in subsection (b) in areas that the Director determines have 
the most immediate need for such activities. 
‘‘(g) REPORTING.—Each local government agency that 
receives a grant under this section, and each entity that 
receives amounts pursuant to subsection (f), shall submit 
a report to the Director, not later than 12 months after such 
amounts are first received, which shall include such infor-
mation as the Director considers appropriate to describe the 
activities conducted using such amounts and the effect of 
such activities on the retention or acquisition of flood insur-
ance coverage. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated for grants under this section 
$50,000,000 for each of fiscal years 2011 through 2015.’’. 
SEC. 19. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 
AND ESCROW IN RESPA GOOD FAITH ESTI-
MATE. 
Subsection (c) of section 5 of the Real Estate Settle-
ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is amend-
ed by adding at the end the following new sentence: ‘‘Each 
such good faith estimate shall include the following con-
spicuous statements and information: (1) that flood insur-
ance coverage for residential real estate is generally avail-
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