IIA
103D CONGRESS
2D SESSION
H. R. 3191
IN THE SENATE OF THE UNITED STATES
MAY 4 (legislative day, MAY 2), 1994
Received; read twice and referred to the Committee on Banking, Housing, and
Urban Affairs
AN ACT
To revise the national flood insurance program to promote
compliance with requirements for mandatory purchase
of flood insurance, to provide assistance for mitigation
activities designed to reduce damages to structures sub-
ject to flooding and shoreline erosion, and to increase
the maximum coverage amounts under 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
‘‘National Flood Insurance Reform Act of 1994’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title and table of contents.
Sec. 2. Declaration of purpose under National Flood Insurance Act of 1968.
TITLE I—DEFINITIONS
Sec. 101. Flood Disaster Protection Act of 1973.
Sec. 102. National Flood Insurance Act of 1968.
TITLE II—COMPLIANCE AND INCREASED PARTICIPATION
Sec. 201. Existing flood insurance purchase requirements.
Sec. 202. Expanded flood insurance purchase requirements.
Sec. 203. Escrow of flood insurance payments.
Sec. 204. Placement of flood insurance by lenders.
Sec. 205. Penalties for failure to require flood insurance or notify.
Sec. 206. Ongoing compliance with flood insurance purchase requirements.
Sec. 207. Fees for determining applicability of flood insurance purchase re-
quirements.
Sec. 208. Notice requirements.
Sec. 209. Standard hazard determination forms.
Sec. 210. Examinations regarding compliance.
Sec. 211. Financial Institutions Examination Council.
Sec. 212. Clerical amendments.
TITLE III—RATINGS AND INCENTIVES FOR COMMUNITY
FLOODPLAIN MANAGEMENT PROGRAMS
Sec. 301. Community rating system and incentives for community floodplain
management.
Sec. 302. Funding.
TITLE IV—MITIGATION OF FLOOD RISKS
Sec. 401. Repeal of flooded property purchase and loan program.
Sec. 402. Termination of erosion-threatened structures program.
Sec. 403. Mitigation assistance program.
Sec. 404. Establishment of National Flood Mitigation Fund.
Sec. 405. Insurance premium mitigation surcharge.
Sec. 406. Study of mitigation insurance.
TITLE V—FLOOD INSURANCE TASK FORCE
Sec. 501. Flood Insurance Interagency Task Force.
TITLE VI—MISCELLANEOUS PROVISIONS
Sec. 601. Extension of flood insurance program.
Sec. 602. Limitation on premium increases.
Sec. 603. Maximum flood insurance coverage amounts.
Sec. 604. Flood insurance program arrangements with private insurance enti-
ties.
Sec. 605. Updating of flood maps.
Sec. 606. Technical Mapping Advisory Council.
Sec. 607. Evaluation of erosion hazards.
Sec. 608. Study of economic effects of charging actuarially-based premium
rates for pre-firm structures.
primarily responsible for the supervision, approval,
or regulation of the institution;’’;
(2) in paragraph (6), by striking the period at
the end and inserting a semicolon; and
(3) by inserting after paragraph (6) the follow-
ing new paragraphs:
‘‘(7) ‘Federal agency lender’ means a Federal
agency that makes direct loans secured by improved
real estate or a mobile home, to the extent such
agency acts in such capacity;
‘‘(8) ‘lender’ includes any regulated lending in-
stitution, other lending institution, and Federal
agency lender, but does not include any agency en-
gaged primarily in the purchase of mortgage loans;
‘‘(9) ‘other lending institution’ means any lend-
ing institution that is not subject to the supervision,
approval, regulation, or insuring of any Federal en-
tity for lending regulation and that is not a Federal
agency lender, but does not include institutions en-
gaged primarily in the purchase of mortgage loans;
‘‘(10) ‘regulated lending institution’ means any
bank, savings and loan association, credit union, or
similar institution subject to the supervision, ap-
proval, regulation, or insuring of a Federal entity for
lending regulation; and
‘‘(11) ‘servicer’ means the person responsible
for receiving any scheduled periodic payments from
a borrower pursuant to the terms of a loan, includ-
ing amounts for taxes, insurance premiums, and
other charges with respect to the property, and mak-
ing the payments of principal and interest and such
other payments with respect to the amounts received
from the borrower as may be required pursuant to
the terms of the loan.’’.
(b) CONFORMING AMENDMENT.—Section 202(b) of
the Flood Disaster Protection Act of 1973 (42 U.S.C.
4106(b)) is amended by striking ‘‘Federal instrumentality
described in such section shall by regulation require the
institutions’’ and inserting ‘‘Federal entity for lending reg-
ulation (with respect to regulated lending institutions), the
Secretary of Housing and Urban Development (with re-
spect to other lending institutions), and the appropriate
head of each Federal agency lender, shall by regulation
require the lenders’’.
SEC. 102. NATIONAL FLOOD INSURANCE ACT OF 1968.
(a) IN GENERAL.—Section 1370(a) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4121(a)) is
amended—
(1) in paragraph (5), by striking ‘‘and’’ at the
end;
(2) in paragraph (6), by striking the period at
the end and inserting a semicolon; and
(3) by inserting after paragraph (6) the follow-
ing new paragraphs:
‘‘(7) the term ‘repetitive loss structure’ means
a structure covered by a contract for flood insurance
under this title that has incurred flood-related dam-
age on 2 occasions during a 10-year period ending
on the date of the event for which a second claim
is made, in which the cost of repair, on the average,
equaled or exceeded 25 percent of the value of the
structure at the time of each such flood event;
‘‘(8) the term ‘coastal’ means relating to the
coastlines and bays of the tidal waters of the United
States or the shorelines of the Great Lakes, but does
not refer to bayous, riverine areas, and riverine por-
tions of estuaries;
‘‘(9) the term ‘Federal agency lender’ means a
Federal agency that makes direct loans secured by
improved real estate or a mobile home, to the extent
such agency acts in such capacity;
‘‘(10) the term ‘Federal entity for lending regu-
lation’ means the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Cor-
poration, the Comptroller of the Currency, the Office
of Thrift Supervision, and the National Credit
Union Administration, and with respect to a particu-
lar regulated lending institution means the entity
primarily responsible for the supervision, approval,
or regulation of the institution;
‘‘(11) the term ‘lender’ includes any regulated
lending institution, other lending institution, and
Federal agency lender, but does not include any
agency engaged primarily in the purchase of mort-
gage loans;
‘‘(12) the term ‘natural and beneficial flood-
plain functions’ means—
‘‘(A) the functions associated with the nat-
ural or relatively undisturbed floodplain that (i)
moderate flooding, retain flood waters, reduce
erosion and sedimentation, and mitigate the ef-
fect of waves and storm surge from storms, and
(ii) reduce flood related damage; and
‘‘(B) ancillary beneficial functions, includ-
ing maintenance of water quality and recharge
of ground water, that reduce flood related dam-
age;
‘‘(13) the term ‘regulated lending institution’
means a bank, savings and loan association, credit
union, or similar institution subject to the super-
vision, approval, regulation, or insuring of a Federal
entity for lending regulation;
‘‘(14) the term ‘other lending institution’ means
any lending institution that is not subject to the su-
pervision, approval, regulation, or insuring of any
Federal entity for lending regulation and that is not
a Federal agency lender, but does not include insti-
tutions engaged primarily in the purchase of mort-
gage loans; and
‘‘(15) the term ‘servicer’ means the person re-
sponsible for receiving any scheduled periodic pay-
ments from a borrower pursuant to the terms of a
loan, including amounts for taxes, insurance pre-
miums, and other charges with respect to the prop-
erty, and making the payments of principal and in-
terest and such other payments with respect to the
amounts received from the borrower as may be re-
quired pursuant to the terms of the loan.’’.
(b) CONFORMING AMENDMENT.—Section 1322(d) of
the National Flood Insurance Act of 1968 (42 U.S.C.
4029(d)) is amended by striking ‘‘federally supervised, ap-
proved, regulated or insured financial institution’’ and in-
serting ‘‘regulated lending institution, other lending insti-
tution, or Federal agency lender’’.
TITLE II—COMPLIANCE AND
INCREASED PARTICIPATION
SEC. 201. EXISTING FLOOD INSURANCE PURCHASE RE-
QUIREMENTS.
Section 102(a) of the Flood Disaster Protection Act
of 1973 (42 U.S.C. 4012a(a)) is amended—
(1) by inserting after ‘‘(a)’’ the following: ‘‘RE-
QUIREMENT FOR FEDERAL ASSISTANCE FOR ACQUI-
SITION OR CONSTRUCTION.—’’; and
(2) by adding at the end the following new sen-
tence: ‘‘This subsection may not be construed to per-
mit the provision of any amount of financial assist-
ance with respect to any building or mobile home
and related personal property for which flood insur-
ance is required under this subsection, unless the re-
quirements under this subsection are complied with
in full. The prohibitions and requirements of this
subsection relating to financial assistance may not
be waived for any purpose.’’.
SEC. 202. EXPANDED FLOOD INSURANCE PURCHASE RE-
QUIREMENTS.
Section 102(b) of the Flood Disaster Protection Act
of 1973 (42 U.S.C. 4012a(b)) is amended to read as fol-
lows:
‘‘(b) REQUIREMENT FOR MORTGAGE LOANS.—
‘‘(1) REGULATED
LENDING
INSTITUTIONS.—
Each Federal entity for lending regulation (after
consultation and coordination with the Financial In-
stitutions Examination Council established under the
Federal Financial Institutions Examination Council
Act of 1974) shall by regulation direct regulated
lending institutions not to make, increase, extend, or
renew, after the expiration of 60 days following the
date of the enactment of this Act, any loan secured
by improved real estate or a mobile home located or
to be located in an area that has been identified by
the Director as an area having special flood hazards
and in which flood insurance has been made avail-
able under the National Flood Insurance Act of
1968, unless the building or mobile home and any
personal property securing such loan is covered for
the term of the loan by flood insurance in an
amount at least equal to the outstanding principal
balance of the loan or the maximum limit of cov-
erage made available under the Act with respect to
the particular type of property, whichever is less.
‘‘(2) OTHER
LENDING
INSTITUTIONS.—The
Secretary of Housing and Urban Development (after
consultation and coordination with the Financial In-
stitutions Examination Council) shall by regulation
direct that—
‘‘(A) any other lending institution may not
make, increase, extend, or renew any loan se-
cured by improved real estate consisting of a 1-
to 4-family residence or a mobile home located
or to be located in an area that has been identi-
fied by the Director of the Federal Emergency
Management Agency as an area having special
flood hazards and in which flood insurance has
been made available under the National Flood
Insurance Act of 1968, unless the building or
mobile home and any personal property secur-
ing such loan is covered for the term of the loan
by flood insurance in the amount provided in
paragraph (1); and
‘‘(B) any loan that is—
‘‘(i) secured by improved real estate
or a mobile home located in an area that
has been identified at the time of the origi-
nation of the loan by the Director of the
Federal Emergency Management Agency,
as an area of special flood hazards and in
which flood insurance is available under
the National Flood Insurance Act of 1968,
and
‘‘(ii) purchased by the Government
National Mortgage Association,
is covered for the term of the loan by flood in-
surance in the amount provided in paragraph
(1).
‘‘(3) FEDERAL AGENCY LENDERS.—A Federal
agency lender may not make, increase, extend, or
renew any loan secured by improved real estate or
a mobile home located or to be located in an area
that has been identified by the Director of the Fed-
eral Emergency Management Agency as an area
having special flood hazards and in which flood in-
surance has been made available under the National
Flood Insurance Act of 1968, unless the building or
mobile home and any personal property securing
such loan is covered for the term of the loan by flood
insurance in the amount provided in paragraph (1).
The relevant head of each Federal agency lender
shall issue any regulations necessary to carry out
this paragraph. Such regulations shall be consistent
with and substantially identical to the regulations is-
sued under paragraphs (1) and (2).
‘‘(4) GOVERNMENT-SPONSORED
ENTERPRISES
FOR HOUSING.—The Federal National Mortgage As-
sociation and the Federal Home Loan Mortgage
Corporation shall implement procedures reasonably
designed to ensure that any loan that is—
‘‘(A) secured by improved real estate or a
mobile home located in an area that has been
identified at the time of the origination of the
loan by the Director as an area of special flood
hazards and in which flood insurance is avail-
able under the National Flood Insurance Act of
1968, and
‘‘(B) purchased by either such entity,
is covered for the term of the loan by flood insur-
ance in the amount provided in paragraph (1).
‘‘(5) CONTESTED DETERMINATIONS.—If a bor-
rower under a loan disputes or challenges the deter-
mination of the lender that the improved real estate
or mobile home securing the loan is located in an
area of special flood hazards, the lender shall review
and consider any relevant information, as deter-
mined by the Director, submitted to the lender by
the borrower.
‘‘(6) APPLICABILITY.—Paragraphs (2) through
(4) shall apply only with respect to any loan made,
increased, extended, or renewed after the expiration
of the 1-year period beginning on the date of the en-
actment of the National Flood Insurance Reform
Act of 1994.’’.
SEC. 203. ESCROW OF FLOOD INSURANCE PAYMENTS.
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:
‘‘(d) ESCROW OF FLOOD INSURANCE PAYMENTS.—
‘‘(1) PRIVATE LENDERS.—For loans secured by
residential real estate, each Federal entity for lend-
ing regulation (with respect to any loans of regu-
lated lending institutions) and the Secretary of
Housing and Urban Development (with respect to
any loans of other lending institutions), after con-
sultation and coordination with the Financial Insti-
tutions Examination Council, shall by regulation re-
quire that, if a lender or other servicer of the loan
requires the escrowing of taxes, insurance premiums,
fees, or any other charges for a loan secured by resi-
dential real estate or a mobile home, then all pre-
miums and fees for flood insurance under the Na-
tional Flood Insurance Act of 1968 for the residen-
tial real estate or mobile home shall be paid to the
lender or servicer of the loan. Premiums and fees
paid to the lender or servicer shall be paid in a man-
ner sufficient to make payments as due for the dura-
tion of the loan. Upon receipt of the premiums, the
lender or servicer of the loan shall deposit the pre-
miums in an escrow account on behalf of the bor-
rower. Upon receipt of a notice from the Director or
the provider of the insurance that insurance pre-
miums are due, the lender or servicer shall pay from
the escrow account to the provider of the insurance
the amount of insurance premiums owed.
‘‘(2) FEDERAL AGENCY LENDERS.—The appro-
priate head of each Federal agency lender shall by
regulation require and provide for escrow and pay-
ment of any flood insurance premiums and fees re-
lating to residential property securing loans made by
the Federal agency lender under the circumstances
and in the manner provided under paragraph (1).
Any regulations issued under this paragraph shall be
consistent with and substantially identical to the
regulations issued under paragraph (1).
‘‘(3) APPLICABILITY
OF
RESPA.—Escrow ac-
counts established pursuant to this subsection shall
be subject to the provisions of section 10 of the Real
Estate Settlement Procedures Act of 1974.
‘‘(4) APPLICABILITY.—This subsection shall
apply only with respect to any loan made, increased,
extended, or renewed after the expiration of the 1-
year period beginning on the date of the enactment
of the National Flood Insurance Reform Act of
1994.’’.
SEC. 204. PLACEMENT OF FLOOD INSURANCE BY LENDERS.
(a) ACTIONS REQUIRED BY LENDER.—Section 102
of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following
new subsection:
‘‘(e) PLACEMENT OF FLOOD INSURANCE BY LEND-
ER.—
‘‘(1) NOTIFICATION TO BORROWER OF LACK OF
COVERAGE.—If, at any time during the term of a
loan secured by improved real estate or by a mobile
home located in an area that has been identified by
the Director as an area having special flood hazards
and in which flood insurance is available under the
National Flood Insurance Act of 1968, the lender or
servicer for the loan determines that the building or
mobile home and any personal property securing the
loan is covered by flood insurance in an amount less
than the amount required for the property pursuant
to subsection (b), the lender or servicer shall notify
the borrower under the loan that the borrower
should obtain, at the borrower’s expense, an amount
of flood insurance for the property that is not less
than the amount under subsection (b)(1), for the
term of the loan.
‘‘(2) PURCHASE OF COVERAGE ON BEHALF OF
BORROWER.—If the borrower fails to purchase such
flood insurance within 60 days after such notifica-
tion, the lender or servicer for the loan shall pur-
chase the insurance on behalf of the borrower and
may charge the borrower for the cost of premiums
and fees incurred by the lender or servicer for the
loan in purchasing the insurance.
‘‘(3) REVIEW OF DETERMINATION REGARDING
REQUIRED PURCHASE.—
‘‘(A) IN GENERAL.—A borrower may re-
quest that the Director review a determination
that the improved real estate or mobile home
securing the loan is located in an area of special
flood hazards. Not later than 45 days after the
Director receives the request, the Director shall
review the determination and provide the bor-
rower with a letter stating whether or not the
property is in a special flood hazards area. The
determination of the Director shall be final.
‘‘(B) EFFECT OF DETERMINATION.—Any
person to whom a borrower provides a letter is-
sued by the Director pursuant to subparagraph
(A), stating that the property of the borrower
is not in an area of special flood hazards, shall
have no obligation under this title to require the
purchase of flood insurance on the property
during the 1-year period beginning upon the
date that such letter is provided.
‘‘(4) APPLICABILITY.—This subsection shall
apply to all loans outstanding on or after the date
of enactment of the National Flood Insurance Re-
form Act of 1994.’’.
SEC. 205. PENALTIES FOR FAILURE TO REQUIRE FLOOD IN-
SURANCE OR NOTIFY.
Section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a), as amended by the preceding
provisions of this Act, is further amended by adding at
the end the following new subsections:
‘‘(f) CIVIL MONETARY PENALTIES FOR FAILURE TO
REQUIRE FLOOD INSURANCE OR NOTIFY.—
‘‘(1) CIVIL
MONETARY
PENALTIES
AGAINST
LENDERS.—Any regulated or other lending institu-
tion that is found to have a pattern or practice of
committing violations under paragraph (2) shall be
assessed a civil penalty by the appropriate Federal
entity for lending regulation (with respect to regu-
lated lending institutions) or the Secretary of Hous-
ing and Urban Development (with respect to other
lending institutions) in the amount provided under
paragraph (5).
‘‘(2) LENDER VIOLATIONS.—The violations re-
ferred to in paragraph (1) shall be—
‘‘(A) making, increasing, extending, or re-
newing loans in violation of—
‘‘(i) the regulations issued pursuant to
subsection (b) of this section;
‘‘(ii) the escrow requirements under
subsection (d) of this section; or
‘‘(iii) the notice requirements under
section 1364 of the National Flood Insur-
ance Act of 1968; or
‘‘(B) failure to provide notice or purchase
flood insurance coverage in violation of sub-
section (e) of this section.
‘‘(3) CIVIL
MONETARY
PENALTIES
AGAINST
GSE’S.—If the Federal National Mortgage Associa-
tion or the Federal Home Loan Mortgage Corpora-
tion is found by the Director of the Office of Federal
Housing Enterprise Oversight of the Department of
Housing and Urban Development to have a pattern
or practice of purchasing loans in violation of the
procedures established pursuant to subsection (b)(4)
of this section, the Director of such Office shall as-
sess a civil penalty against such enterprise in the
amount provided under paragraph (5) of this sub-
section. For purposes of this subsection, the term
‘enterprise’ means the Federal National Mortgage
Association or the Federal Home Loan Mortgage
Corporation.
‘‘(4) NOTICE AND HEARING.—A penalty under
this subsection may be issued only after notice and
an opportunity for a hearing on the record.
‘‘(5) AMOUNT.—A civil monetary penalty under
this subsection may not exceed $350 for each viola-
tion under paragraph (2) or paragraph (3). The
total amount of penalties assessed under this sub-
section against any single regulated lending institu-
tion, other lending institution, or enterprise for any
calendar year may not exceed $100,000.
‘‘(6) LENDER
COMPLIANCE.—Notwithstanding
any State or local law, for purposes of this sub-
section, any lender that purchases flood insurance or
renews a contract for flood insurance on behalf of or
as an agent of a borrower of a loan for which flood
insurance is required shall be considered to have
complied with the regulations issued under sub-
section (b).
‘‘(7) EFFECT OF TRANSFER ON LIABILITY.—
Any sale or other transfer of a loan by a lender who
has committed a violation under paragraph (1), that
occurs subsequent to the violation, shall not affect
the liability of the transferring lender with respect to
any penalty under this subsection. A lender shall not
be liable for any violations relating to a loan com-
mitted by another lender who previously held the
loan.
‘‘(8) DEPOSIT OF PENALTIES.—Any penalties
collected under this subsection shall be paid into the
National Flood Mitigation Fund under section 1367
of the National Flood Insurance Act of 1968.
‘‘(9) ADDITIONAL
PENALTIES.—Any penalty
under this subsection shall be in addition to any civil
remedy or criminal penalty otherwise available.
‘‘(10) STATUTE OF LIMITATIONS.—No penalty
may be imposed under this subsection after the expi-
ration of the 5-year period beginning on the date of
the occurrence of the violation for which the penalty
is authorized under this subsection.
‘‘(g) OTHER ACTIONS
TO REMEDY PATTERN
OF
NONCOMPLIANCE.—
‘‘(1) AUTHORITY OF FEDERAL ENTITIES FOR
LENDING REGULATION.—The head of the applicable
Federal entity for lending regulation may require a
regulated lending institution to take such remedial
actions as are necessary to ensure that the regulated
lending institution complies with the requirements of
the national flood insurance program if the Federal
agency for lending regulation makes a determination
under paragraph (3) regarding the regulated lending
institution.
‘‘(2) AUTHORITY OF SECRETARY OF HUD.—The
Secretary of Housing and Urban Development may
require an other lending institution to take such re-
medial actions as are necessary to ensure that the
other lending institution complies with the require-
ments of the national flood insurance program if
such Secretary makes a determination under para-
graph (3) regarding the other lending institution.
‘‘(3) DETERMINATION OF VIOLATIONS.—A de-
termination under this paragraph shall be a finding
that—
‘‘(A) the regulated lending institution or
other lending institution, as the case may be,
has engaged in a pattern and practice of non-
compliance in violation of the regulations issued
pursuant to subsection (b), (d), or (e) of this
section or the notice requirements under section
1364 of the National Flood Insurance Act of
1968; and
‘‘(B) the regulated lending institution or
other lending institution, as the case may be,
has not demonstrated measurable improvement
in compliance despite the assessment of civil
monetary penalties under subsection (f).’’.
SEC. 206. ONGOING COMPLIANCE WITH FLOOD INSURANCE
PURCHASE REQUIREMENTS.
Section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a), as amended by the preceding
provisions of this Act, is further amended by adding at
the end the following new subsection:
‘‘(h) NOTIFICATION OF FLOOD HAZARDS TO LOAN
TRANSFEREE.—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) through (5), before the sale or transfer
of any loan secured by improved real estate or a mo-
bile home, the seller or transferor of the loan shall
determine whether the property is in an area that
has been designated by the Director as an area hav-
ing special flood hazards. The seller or transferor
shall, before sale or transfer, notify the purchaser or
transferee and any servicer of the loan in writing re-
garding the results of the determination. A deter-
mination under this paragraph shall be evidenced
using the standard hazard determination form under
section 1365 of the National Flood Insurance Act of
1968.
‘‘(2) EXCEPTIONS.—For any loan secured by
improved real estate or a mobile home, a determina-
tion and notice under paragraph (1) shall not be re-
quired if, during the 5-year period ending on the
date of the sale or transfer of the loan—
‘‘(A) a determination and notice under
paragraph (1) has been made for the property
secured by the loan; or
‘‘(B)(i) the loan has been made, increased,
extended, or renewed; and
‘‘(ii) the lender making, increasing, extend-
ing, or renewing the loan was subject, at the
time of such transaction, to regulations issued
pursuant to paragraph (1), (2), or (3) of sub-
section (b).
‘‘(3) LOANS TRANSFERRED BY FDIC.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), for any loan secured by im-
proved real estate or a mobile home that is sold
or transferred by the Federal Deposit Insurance
Corporation acting in its corporate capacity or
in its capacity as conservator or receiver, the
purchaser or transferee of the loan shall deter-
mine whether the property is in an area that
has been designated by the Director as an area
having special flood hazards.
‘‘(B) EXCEPTIONS.—Such determination
and notice shall not be required for any loan—
‘‘(i) sold or transferred to an entity
under the control of the Federal Deposit
Insurance Corporation; or
‘‘(ii) for which the purchaser or trans-
feree exercises any available option to
transfer or put the loan back to the Fed-
eral Deposit Insurance Corporation.
‘‘(C) NOTICE TO DIRECTOR.—A purchaser
or transferee of a loan required to make a de-
termination and notification under subpara-
graph (A) shall notify the Director and any
servicer of the loan of the results of the deter-
mination (using the standard hazard determina-
tion form under section 1365 of the National
Flood Insurance Act of 1968) before the expira-
tion of the 90-day period beginning on the later
of (i) the purchase or transfer of the loan, or
(ii) the expiration of any option that the pur-
chaser or transferee may have to transfer or
put the loan back to the Federal Deposit Insur-
ance Corporation.
‘‘(4) LOANS TRANSFERRED BY RTC.—
‘‘(A) IN GENERAL.—For any loan secured
by improved real estate or a mobile home that
is sold or transferred by the Resolution Trust
Corporation acting in its corporate capacity or
in its capacity as a conservator or receiver, the
purchaser or transferee of the loan shall deter-
mine whether the property is in an area that
has been designated by the Director as an area
having special flood hazards if—
‘‘(i) the Resolution Trust Corporation
acquires the loan after the date of the ef-
fectiveness of this subsection and sells or
transfers the loan before the expiration of
the 12-month period beginning on such ef-
fective date; or
‘‘(ii) the Corporation holds the loan
on the date of the effectiveness of this sub-
section and sells or transfers the loan be-
fore the expiration of the 6-month period
beginning on such effective date.
‘‘(B) NOTICE TO DIRECTOR.—A purchaser
or transferee of a loan required to make a de-
termination and notification under subpara-
graph (A) shall notify the Director and any
servicer of the loan of the results of the deter-
mination (using the standard hazard determina-
tion form under section 1365 of the National
Flood Insurance Act of 1968) before the expira-
tion of the 90-day period beginning upon the
purchase or transfer of the loan.
‘‘(5) LOANS TRANSFERRED BY NCUA.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (C), for any loan secured by im-
proved real estate or a mobile home that is sold
or transferred by the National Credit Union
Administration acting in its corporate capacity
or in its capacity as a conservator or liquidating
agent, the purchaser or transferee of the loan
shall determine whether the property is in an
area that has been designated by the Director
as an area having special flood hazards.
‘‘(B) NOTICE TO DIRECTOR.—A purchaser
or transferee of a loan required to make a de-
termination and notification under subpara-
graph (A) shall notify the Director and any
servicer of the loan of the results of the deter-
mination (using the standard hazard determina-
tion form under section 1365 of the National
Flood Insurance Act of 1968) before the expira-
tion of the 90-day period beginning upon the
purchase or transfer of the loan.
‘‘(C) 
EXCEPTION.—Such 
determination
and notice shall not be required for any loan
sold or transferred to an entity under the con-
trol of the National Credit Union Administra-
tion.
‘‘(6) APPLICABILITY.—This subsection shall
apply only with respect to any loan outstanding or
entered into after the expiration of the 1-year period
beginning on the date of the enactment of the Na-
tional Flood Insurance Reform Act of 1994.’’.
SEC. 207. FEES FOR DETERMINING APPLICABILITY OF
FLOOD 
INSURANCE 
PURCHASE 
REQUIRE-
MENTS.
Section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a) as amended by the preceding pro-
visions of this Act, is further amended by adding at the
end the following new subsection:
‘‘(i) FEE FOR DETERMINING LOCATION.—Notwith-
standing any other Federal or State law, any lender for
a loan described in paragraph (1), (2), or (3) of subsection
(b) may charge a reasonable fee (as determined by the
Director) for the costs of determining whether the prop-
erty securing the loan is located in an area of special flood
hazards, but only in accordance with the following require-
ments:
‘‘(1) BORROWER
FEE.—The borrower under
such a loan may be charged the fee, but only if the
determination is made pursuant to—
‘‘(A) the making, increasing, extending, or
renewing of the loan that is initiated by the
borrower; or
‘‘(B) a revision or updating under section
1360(f) of the floodplain areas and flood-risk
zones or publication of a notice or compendia
under subsection (h) or (i) of section 1360 that
affects the area in which the property securing
the loan is located or that, in the determination
of the Director, may reasonably be considered
to require a determination under this sub-
section.
‘‘(2) PURCHASER OR TRANSFEREE FEE.—The
purchaser or transferee of such a loan may be
charged the fee in the case of sale or transfer of the
loan.’’.
SEC. 208. NOTICE REQUIREMENTS.
Section 1364 of the National Flood Insurance Act of
1968 (42 U.S.C. 4104a) is amended to read as follows:
‘‘NOTICE REQUIREMENTS
‘‘SEC. 1364. (a) NOTIFICATION OF SPECIAL FLOOD
HAZARDS.—
‘‘(1) REGULATED
LENDING
INSTITUTIONS.—
Each Federal entity for lending regulation, after
consultation and coordination with the Financial In-
stitutions Examination Council, shall by regulation
require regulated lending institutions, as a condition
of making, increasing, extending, or renewing any
loan secured by improved real estate or a mobile
home located or to be located in an area that has
been identified by the Director under this title or the
Flood Disaster Protection Act of 1973 as an area
having special flood hazards, to notify the purchaser
or lessee (or obtain satisfactory assurances that the
seller or lessor has notified the purchaser or lessee)
and the servicer of the loan of such special flood
hazards, in writing, a reasonable period in advance
of the signing of the purchase agreement, lease, or
other documents involved in the transaction. The
regulations shall also require that the lenders retain
a record of the receipt of the notices by the pur-
chaser or lessee and the servicer.
‘‘(2) OTHER
LENDING
INSTITUTIONS.—The
Secretary of Housing and Urban Development shall
by regulation require notification in the manner pro-
vided under paragraph (1) with respect to any loan
made by another lending institution and secured by
improved real estate consisting of a 1- to 4-family
residence or a mobile home located or to be located
in an area that has been identified by the Director
under this title or the Flood Disaster Protection Act
of 1973 as an area having special flood hazards. Any
regulations issued under this paragraph shall be con-
sistent with and substantially identical to the regula-
tions issued under paragraph (1) (except to the ex-
tent necessary to provide for differences between the
types of loans for which notice is required under this
paragraph and the types for which notice is required
under paragraph (1)).
‘‘(3) FEDERAL AGENCY LENDERS.—The appro-
priate head of each Federal agency lender shall by
regulation require notification in the manner pro-
vided under paragraph (1) with respect to any loan
that is made by the Federal agency lender and se-
cured by improved real estate or a mobile home lo-
cated or to be located in an area that has been iden-
tified by the Director under this title or the Flood
Disaster Protection Act of 1973 as an area having
special flood hazards. Any regulations issued under
this paragraph shall be consistent with and substan-
tially identical to the regulations issued under para-
graph (1).
‘‘(4) CONTENTS OF NOTICE.—Written notifica-
tion required under this subsection shall include—
‘‘(A) a warning, in a form to be established
in consultation with and subject to the approval
of the Director, stating that the real estate or
mobile home securing the loan is located or is
to be located in an area having special flood
hazards;
‘‘(B) a description of the flood insurance
purchase requirements under section 102(b) of
the Flood Disaster Protection Act of 1973;
‘‘(C) a statement that flood insurance cov-
erage may be purchased under the national
flood insurance program and is also available
from private insurers; and
‘‘(D) any other information that the Direc-
tor considers necessary to carry out the pur-
poses of the national flood insurance program.
‘‘(b) NOTIFICATION OF CHANGE OF SERVICER.—
‘‘(1) LENDING
INSTITUTIONS.—Each Federal
entity for lending regulation (with respect to regu-
lated lending institutions) and the Secretary of
Housing and Urban Development (with respect to
other lending institutions), after consultation and co-
ordination with the Financial Institutions Examina-
tion Council, shall by regulation require such institu-
tions, as a condition of making, increasing, extend-
ing, renewing, selling, or transferring any loan de-
scribed in subsection (a)(1), to notify the Director
(or the designee of the Director) in writing during
the term of the loan of the servicer of the loan. Such
institutions shall also notify the Director (or such
designee) of any change in the servicer of the loan,
not later than 60 days after the effective date of
such change. The regulations under this subsection
shall provide that upon any change in the servicing
of a loan, the duty to provide notification under this
subsection shall transfer to the transferee servicer of
the loan.
‘‘(2) FEDERAL AGENCY LENDERS.—The appro-
priate head of each Federal agency lender shall by
regulation provide for notification in the manner
provided under paragraph (1) with respect to any
loan described in subsection (a)(1) that is made by
the Federal agency lender. Any regulations issued
under this paragraph shall be consistent with and
substantially identical to the regulations issued
under paragraph (1) of this subsection.
‘‘(c) NOTIFICATION
OF
EXPIRATION
OF
INSUR-
ANCE.—The Director (or the designee of the Director)
shall, not less than 45 days before the expiration of any
contract for flood insurance under this title, issue notice
of such expiration by first class mail to the owner of the
property, the servicer of any loan secured by the property
covered by the contract, and the owner of the loan.’’.
SEC. 209. STANDARD HAZARD DETERMINATION FORMS.
Chapter III of the National Flood Insurance Act of
1968 (42 U.S.C. 4101 et seq.) is amended by adding at
the end the following new section:
‘‘STANDARD HAZARD DETERMINATION FORMS
‘‘SEC. 1365. (a) DEVELOPMENT.—The Director, in
consultation with representatives of the mortgage and
lending industry, the Federal entities for lending regula-
tion, the Federal agency lenders, and any other appro-
priate individuals, shall develop standard written and elec-
tronic forms for determining the flood hazard exposure of
a property for use in connection with loans secured by im-
proved real estate or a mobile home. The written and elec-
tronic forms shall be established by regulations issued not
later than 270 days after the date of the enactment of
the National Flood Insurance Reform Act of 1994.
‘‘(b) DESIGN AND CONTENTS.—
‘‘(1) PURPOSE.—The form under subsection (a)
shall be designed to facilitate a determination of the
exposure to flood hazards of structures located on
the property to which the loan application relates.
The form shall be designed to facilitate compliance
with the provisions of this title.
‘‘(2) CONTENTS.—The form shall require iden-
tification of the type of flood-risk zone in which the
property is located, the complete map and panel
numbers for the property, and the date of the map
used for the determination, with respect to flood
hazard information on file with the Director. If the
property is not located in an area of special flood
hazards the form shall require a statement to such
effect and shall indicate the complete map and panel
numbers of the property. If the complete map and
panel numbers for the property are not available be-
cause the property is not located in a community
that is participating in the national flood insurance
program or because no map exists for the relevant
area, the form shall require a statement to such ef-
fect. The form shall provide for inclusion or attach-
ment of any relevant documents indicating revisions
or amendments to maps.
‘‘(c) REQUIRED USE.—The Federal entities for lend-
ing regulation shall by regulation require the use of the
form under this section by regulated lending institutions.
The appropriate head of each Federal agency lender shall
by regulation provide for the use of the form with respect
to any loan made by such Federal agency lender. The Sec-
retary of Housing and Urban Development shall by regu-
lation require use of the form in connection with loans
purchased by Federal National Mortgage Association and
the Federal Home Loan Mortgage Corporation and the
Government National Mortgage Association. The Sec-
retary of Housing and Urban Development shall encour-
age the use of the form by other lending institutions.
‘‘(d) GUARANTEES REGARDING INFORMATION.—In
providing information regarding special flood hazards on
the form developed under this section (or otherwise re-
quired of a lender not required to use the form under this
section) any lender making, increasing, extending, or re-
newing a loan secured by improved real estate or a mobile
home may provide for the acquisition or determination of
such information to be made by a person other than such
institution, only to the extent such person guarantees the
accuracy of the information. The Director shall by regula-
tions establish requirements relating to the nature and
manner of such guarantees.
‘‘(e) ELECTRONIC FORM.—The Federal entities for
lending regulation, the Secretary of Housing and Urban
Development, and the appropriate head of each Federal
agency lender shall by regulation require any lender using
the electronic form developed under this section with re-
spect to any loan to make available upon the request of
such Federal entity, Secretary, or agency head, a written
form under this section for such loan within 48 hours after
such request.
‘‘(f) EFFECTIVE DATE.—The regulations under this
section requiring use of the written and electronic forms
established pursuant to this section shall be issued to-
gether with the regulations required under subsection (a)
and shall take effect upon the expiration of the 90-day
period beginning on such issuance.’’.
SEC. 210. EXAMINATIONS REGARDING COMPLIANCE.
(a) AMENDMENT TO FEDERAL DEPOSIT INSURANCE
ACT.—Section 10 of the Federal Deposit Insurance Act
(12 U.S.C. 1820) is amended by adding at the end the
following new subsection:
‘‘(h) FLOOD INSURANCE COMPLIANCE BY INSURED
DEPOSITORY INSTITUTIONS.—
‘‘(1) EXAMINATIONS.—The appropriate Federal
banking agency shall, during each scheduled on-site
examination required by this section, determine
whether the insured depository institution is comply-
ing with the requirements of the national flood in-
surance program.
‘‘(2) REPORT.—
‘‘(A) REQUIREMENT.—Not later than 1
year after the date of enactment of the Na-
tional Flood Insurance Reform Act of 1994 and
biennially thereafter for the next 4 years, each
appropriate Federal banking agency shall sub-
mit a report to the Congress on compliance by
insured depository institutions with the require-
ments of the national flood insurance program.
‘‘(B) CONTENTS.—The report shall include
a description of the methods used to determine
compliance, the number of institutions exam-
ined during the reporting year, a listing and
total number of institutions found not to be in
compliance, actions taken to correct incidents of
noncompliance, and an analysis of compliance,
including a discussion of any trends, patterns,
and problems, and recommendations regarding
reasonable actions to improve the efficiency of
the examinations processes.’’.
(b) AMENDMENT
TO
FEDERAL
CREDIT
UNION
ACT.—Section 204 of the Federal Credit Union Act (12
U.S.C. 1784) is amended by adding at the end the follow-
ing new subsection:
‘‘(e) FLOOD INSURANCE COMPLIANCE BY INSURED
CREDIT UNIONS.—
‘‘(1) EXAMINATION.—The Board shall, during
each examination conducted under this section, de-
termine whether the insured credit union is comply-
ing with the requirements of the national flood in-
surance program.
‘‘(2) REPORT.—
‘‘(A) REQUIREMENT.—Not later than 1
year after the date of enactment of the Na-
tional Flood Insurance Reform Act of 1994 and
biennially thereafter for the next 4 years, the
Board shall submit a report to Congress on
compliance by insured credit unions with the re-
quirements of the national flood insurance pro-
gram.
‘‘(B) CONTENTS.—The report shall include
a description of the methods used to determine
compliance, the number of insured credit unions
examined during the reporting year, a listing
and total number of insured credit unions found
not to be in compliance, actions taken to correct
incidents of noncompliance, and an analysis of
compliance, including a discussion of any
trends, patterns, and problems, and rec-
ommendations regarding reasonable actions to
improve the efficiency of the examinations proc-
esses.’’.
(c) AMENDMENT
TO FEDERAL HOUSING ENTER-
PRISES FINANCIAL SAFETY
AND SOUNDNESS ACT
OF
1992.—Section 1317 of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (12 U.S.C.
4517) is amended by adding at the end the following new
subsection:
‘‘(g) FLOOD INSURANCE COMPLIANCE BY ENTER-
PRISES.—
‘‘(1) EXAMINATION.—After the submission of
the report under section 210(d) of the National
Flood Insurance Reform Act of 1994, the Director
shall, during each annual examination of an enter-
prise conducted under this section, determine wheth-
er the enterprise has established adequate proce-
dures required under section 102(b)(4) of the Flood
Disaster Protection Act of 1973 and is complying
with such procedures.
‘‘(2) EXCEPTION.—The provisions of paragraph
(1) shall not apply with respect to an enterprise if
the Director—
‘‘(A) determines, pursuant to the report
under section 210(d) of the National Flood In-
surance Reform Act of 1994, that the enter-
prise has established adequate procedures pur-
suant to section 102(b)(4) of the Flood Disas-
ter Protection Act of 1973 and has a pattern
of compliance with such procedures; and
‘‘(B) certifies such finding in writing to
the Congress.
‘‘(3) REPORT.—
‘‘(A) REQUIREMENT.—Not later than 1
year after the date of enactment of the Na-
tional Flood Insurance Reform Act of 1994 and
biennially thereafter for the next 4 years, the
Director shall submit a report to Congress on
compliance by the enterprises with the proce-
dures established pursuant to section 102(b)(4)
of the Flood Disaster Protection Act of 1973.
‘‘(B) CONTENTS.—The report shall include
a description of the methods used to determine
compliance, identification of any enterprise
found not to be in compliance, actions taken to
correct incidents of noncompliance, and an
analysis of compliance, including a discussion of
any trends, patterns, and problems, and rec-
ommendations regarding reasonable actions to
improve the efficiency of the examinations proc-
esses.’’.
(d) GAO REPORT ON GSE COMPLIANCE.—Not later
than 18 months after the date of enactment of this Act,
the Comptroller General of the United States shall submit
a report to the Congress and the Director of the Office
of Federal Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development regarding the
procedures established by the Federal National Mortgage
Association and the Federal Home Loan Mortgage Cor-
poration pursuant to section 102(b)(4) of the Flood Disas-
ter Protection Act of 1973. The report shall include a de-
scription of such procedures, an analysis of whether such
procedures are sufficient to comply with the requirements
of such section, a determination of whether each enter-
prise has complied with such procedures, a description of
any actions taken by each enterprise to correct any inci-
dents of noncompliance, and any recommendations regard-
ing reasonable actions to improve the procedures estab-
lished by the enterprises and compliance with such proce-
dures.
SEC. 211. FINANCIAL INSTITUTIONS EXAMINATION COUN-
CIL.
Section 1006 of the Federal Financial Institutions
Examination Council Act of 1978 (12 U.S.C. 3305) is
amended by adding at the end the following new sub-
section:
‘‘(g) The council shall consult and assist the Federal
entities for lending regulation and the Secretary of Hous-
ing and Urban Development in developing and coordinat-
ing uniform standards and requirements for use by lenders
as provided under the National Flood Insurance Act of
1968 and the Flood Disaster Protection Act of 1973.’’.
SEC. 212. CLERICAL AMENDMENTS.
Section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a) is amended—
(1) by striking the section heading and insert-
ing the following new section heading:
‘‘FLOOD INSURANCE PURCHASE AND COMPLIANCE
REQUIREMENTS AND ESCROW ACCOUNTS’’; and
(2) in subsection (c), by inserting ‘‘EXCEPTION
TO PURCHASE REQUIREMENTS FOR STATE-OWNED
PROPERTY.—’’ before ‘‘Notwithstanding’’.
TITLE III—RATINGS AND INCEN-
TIVES 
FOR 
COMMUNITY
FLOODPLAIN 
MANAGEMENT
PROGRAMS
SEC. 301. COMMUNITY RATING SYSTEM AND INCENTIVES
FOR 
COMMUNITY 
FLOODPLAIN 
MANAGE-
MENT.
Section 1315 of the National Flood Insurance Act of
1968 (42 U.S.C. 4022) is amended—
(1) by inserting after ‘‘SEC. 1315.’’ the follow-
ing: ‘‘(a) REQUIREMENT
FOR PARTICIPATION
IN
FLOOD INSURANCE PROGRAM.—’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) COMMUNITY RATING SYSTEM AND INCENTIVES
FOR COMMUNITY FLOODPLAIN MANAGEMENT.—
‘‘(1) AUTHORITY
AND
GOALS.—The Director
shall carry out a community rating system program
to evaluate the measures adopted by areas (and sub-
divisions thereof) in which the Director has made
flood insurance coverage available to provide for ade-
quate land use and control provisions consistent with
the comprehensive criteria for such land manage-
ment and use under section 1361, to facilitate accu-
rate risk-rating, to promote flood insurance aware-
ness, and to complement adoption of more effective
measures for floodplain and erosion management.
‘‘(2) INCENTIVES.—The program under this
subsection shall provide incentives in the form of ad-
justments in the premium rates for flood insurance
coverage in areas that the Director determines have
adopted and enforced the goals of the community
rating system under this subsection. In providing in-
centives under this paragraph, the Director may pro-
vide for additional adjustments in premium rates for
flood insurance coverage (A) in areas that the Direc-
tor determines have implemented measures relating
to the protection of natural and beneficial floodplain
functions, and (B) in areas within which such pre-
mium rates have increased as a result of induced
flooding risk from flood control or mitigation
projects, as determined by the Director, except that
the adjustment shall not reduce premium rates
below the rate which would have been charged ab-
sent the risk of induced flooding from the flood con-
trol or mitigation projects.
‘‘(3) FUNDS.—The Director shall carry out the
program under this subsection with amounts, as the
Director determines necessary, from the National
Flood Insurance Fund under section 1310 and any
other amounts that may be appropriated for such
purpose.
‘‘(4) REPORTS.—The Director shall submit a
report to the Congress regarding the program under
this subsection not later than the expiration of the
2-year period beginning on the date of the enact-
ment of the National Flood Insurance Reform Act of
1994. The Director shall submit a report under this
paragraph not less than every 2 years thereafter.
Each report under this paragraph shall include an
analysis of the cost-effectiveness and other accom-
plishments and shortcomings of the program and
any recommendations of the Director for legislation
regarding the program.’’.
SEC. 302. FUNDING.
Section 1310(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4017(a)) is amended—
(1) in paragraph (4), by striking ‘‘and’’ at the
end;
(2) by redesignating paragraph (5) as para-
graph (7); and
(3) by inserting after paragraph (4) the follow-
ing new paragraph:
‘‘(5) for carrying out the program under section
1315(b);’’.
TITLE IV—MITIGATION OF
FLOOD RISKS
SEC. 401. REPEAL OF FLOODED PROPERTY PURCHASE AND
LOAN PROGRAM.
(a) REPEAL.—Section 1362 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4103) is hereby repealed.
(b) TRANSITION
PHASE.—Notwithstanding sub-
section (a), during the 1-year period beginning on the date
of the enactment of this Act, the Director of the Federal
Emergency Management Agency may enter into loan and
purchase commitments as provided under section 1362 of
such Act (as in effect immediately before the enactment
of this Act).
(c) SAVINGS
PROVISION.—Notwithstanding sub-
section (a), the Director shall take any action necessary
to comply with any purchase or loan commitment entered
into before the expiration of the period referred to in sub-
section (b) pursuant to authority under section 1362 of
the National Flood Insurance Act of 1968 or subsection
(b).
SEC. 402. TERMINATION OF EROSION-THREATENED STRUC-
TURES PROGRAM.
(a) IN GENERAL.—Section 1306 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4013) is amended
by striking subsection (c).
(b) TRANSITION
PHASE.—Notwithstanding sub-
section (a), during the 1-year period beginning on the date
of the enactment of this Act, the Director of the Federal
Emergency Management Agency may pay amounts under
flood insurance contracts for demolition or relocation of
structures as provided in section 1306(c) of the National
Flood Insurance Act of 1968 (as in effect immediately be-
fore the enactment of this Act).
(c) SAVINGS
PROVISION.—Notwithstanding sub-
section (a), the Director shall take any action necessary
to make payments under flood insurance contracts pursu-
ant to any commitments made before the expiration of the
period referred to in subsection (b) pursuant to the au-
thority under section 1306(c) of the National Flood Insur-
ance Act of 1968 or subsection (b).
(d) REPEAL
OF
FINDINGS
PROVISION.—Section
1302 of the National Flood Insurance Act of 1968 (42
U.S.C. 4001) is amended by striking subsection (g).
SEC. 403. MITIGATION ASSISTANCE PROGRAM.
(a) IN GENERAL.—Chapter III of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101 et seq.), as
amended by the preceding provisions of this Act, is further
amended by adding at the end the following new section:
‘‘MITIGATION ASSISTANCE
‘‘SEC. 1366. (a) AUTHORITY.—The Director shall
carry out a program to provide financial assistance to
States, communities, and individuals, using amounts made
available from the National Flood Mitigation Fund under
section 1367, for planning and carrying out activities de-
signed to reduce the risk of flood damage to structures
covered under contracts for flood insurance under this
title. Such financial assistance shall be made available to
States and communities in the form of grants under sub-
section (b) for planning assistance and to States, commu-
nities, and individuals in the form of grants under this
section for carrying out mitigation activities.
‘‘(b) PLANNING ASSISTANCE GRANTS.—
‘‘(1) IN
GENERAL.—The Director may make
grants under this subsection to States and commu-
nities to assist in developing mitigation plans under
subsection (c)(1).
‘‘(2) FUNDING.—Of any amounts made avail-
able from the National Flood Mitigation Fund for
use under this section in any fiscal year, the Direc-
or community of the approval or disapproval of the
plan not later than 30 days after submission of the
plan.
‘‘(3) INDIVIDUAL
APPLICATIONS
FOR
MITIGA-
TION
ASSISTANCE
TO
RESPOND
TO
FLOOD
EVENTS.—The Director shall notify an individual
who submits an application for mitigation assistance
under subsection (c)(2) of the approval or dis-
approval of the application not later than—
‘‘(A) 30 days after the submission of the
application, except in cases described in sub-
paragraph (B); or
‘‘(B) in any case in which the structure
subject to the application submitted by the indi-
vidual is subject to a mitigation plan subse-
quently submitted under paragraph (2) by the
State or community in which the structure is
located, the expiration of the 30-day period re-
ferred to in paragraph (2).
‘‘(4) NOTIFICATION OF DISAPPROVAL.—If the
Director does not approve a mitigation plan or appli-
cation submitted under this subsection, the Director
shall notify, in writing, the State, community, or in-
dividual submitting the plan or application of the
reasons for such disapproval.
‘‘(5) AVAILABILITY OF GRANT AMOUNTS.—Any
financial assistance to be provided under this section
to an individual pursuant to an application for miti-
gation assistance submitted and approved under
subsection (c)(2) shall be made available to the indi-
vidual not later than 15 days after the individual is
notified under paragraph (2) of this subsection of
the approval of the application, unless otherwise
agreed to by the Director and the individual.
‘‘(e) ELIGIBLE MITIGATION ACTIVITIES.—
‘‘(1) 
DETERMINATION.—Amounts 
provided
under this section (other than under subsection (b))
may be used only for mitigation activities specified
in an application for mitigation assistance or mitiga-
tion plan approved by the Director under subsection
(d). The Director may approve only applications and
mitigation plans that specify mitigation activities
that the Director determines are technically feasible
and cost-effective and only such applications and
plans that propose activities that are cost-beneficial
to the National Flood Mitigation Fund. The Direc-
tor shall provide assistance under this section to the
extent amounts are available in the National Flood
Mitigation Fund pursuant to appropriation Acts,
subject only to the absence of approvable applica-
tions and mitigation plans.
‘‘(2) PRIORITY.—The Director shall make every
effort to provide mitigation assistance under this
section for applications and mitigation plans propos-
ing activities for repetitive loss structures and struc-
tures that have incurred substantial damage.
‘‘(3) ELIGIBLE ACTIVITIES.—The Director shall
determine whether mitigation activities described in
an application for mitigation assistance or a mitiga-
tion plan submitted under subsection (d) comply
with the requirements under paragraph (1). Such
activities may include—
‘‘(A) demolition or relocation of any struc-
ture located on land that is along the shore of
a lake or other body of water and is certified
by an appropriate State or local land use au-
thority to be subject to imminent collapse or
subsidence as a result of erosion or flooding;
‘‘(B) elevation, relocation, demolition, or
floodproofing of structures (including public
structures) located in special flood hazard areas
or other areas of flood risk;
‘‘(C) acquisition by States and commu-
nities of properties (including public properties)
located in special flood hazard areas or other
areas of flood risk and properties substantially
damaged by flood, for public use, as the Direc-
tor determines is consistent with sound land
management and use in such area;
‘‘(D) minor physical mitigation efforts that
do not duplicate the flood prevention activities
of other Federal agencies and that lessen the
frequency or severity of flooding and decrease
predicted flood damages, which shall not in-
clude major flood control projects such as dikes,
levees, seawalls, groins, and jetties unless the
Director specifically determines in approving a
mitigation plan that such activities are the most
cost-effective mitigation activities for the Na-
tional Flood Mitigation Fund;
‘‘(E) beach nourishment activities;
‘‘(F) the provision of technical assistance
by States to communities and individuals to
conduct eligible mitigation activities;
‘‘(G) other activities that the Director con-
siders appropriate and specifies in regulation;
and
‘‘(H) other mitigation activities not de-
scribed in subparagraphs (A) through (F) or
the regulations issued under subparagraph (G),
that are described in the mitigation plan of a
State or community or the application of an in-
dividual for mitigation assistance.
‘‘(f) LIMITATIONS ON AMOUNT OF ASSISTANCE.—
‘‘(1) AMOUNT.—The sum of the amounts of
mitigation assistance provided under this section
during any 5-year period may not exceed—
‘‘(A) $10,000,000, to any State;
‘‘(B) $3,300,000, to any community; or
‘‘(C) $20,000, to any individual.
‘‘(2) GEOGRAPHIC.—The sum of the amounts
of mitigation assistance provided under this section
during any 5-year period to any one State and all
communities located in such State may not exceed
$20,000,000.
‘‘(3) WAIVER.—The Director may waive the
dollar amount limitations under subparagraphs (A)
and (B) of paragraph (1) and paragraph (2) for any
State or community for any 5-year period during
which a major disaster or emergency declared by the
President (pursuant to the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act) as a re-
sult of flood conditions is in effect with respect to
areas in the State or community.
‘‘(g) MATCHING REQUIREMENT.—
‘‘(1) IN GENERAL.—The Director may not pro-
vide mitigation assistance under this section to a
State, community, or individual in an amount ex-
ceeding 3 times the amount that the State, commu-
nity, or individual certifies, as the Director shall re-
quire, that the State, community, or individual will
contribute from non-Federal funds to develop a miti-
gation plan or application under subsection (c) and
to carry out mitigation activities under the approved
mitigation plan or application. In no case shall any
in-kind contribution by any State, community, or in-
dividual exceed one-half of the amount of non-Fed-
eral funds contributed by the State, community, or
individual.
‘‘(2) NON-FEDERAL FUNDS.—For purposes of
this subsection, the term ‘non-Federal funds’ in-
cludes State or local agency funds, in-kind contribu-
tions, any salary paid to staff to carry out the miti-
gation activities of the recipient, the value of the
time and services contributed by volunteers to carry
out such activities (at a rate determined by the Di-
rector), and the value of any donated material or
building and the value of any lease on a building.
‘‘(h) OVERSIGHT OF MITIGATION PLANS.—The Di-
rector shall conduct oversight of recipients of mitigation
assistance under this section to ensure that the assistance
is used in compliance with the approved mitigation plans
or applications of the recipients and that matching funds
certified under subsection (g) are used in accordance with
such certification.
‘‘(i) RECAPTURE.—
‘‘(1) NONCOMPLIANCE WITH PLAN.—If the Di-
rector determines that a State, community, or indi-
vidual that has received mitigation assistance under
this section has not carried out the mitigation activi-
ties as set forth in the mitigation plan or applica-
tion, the Director shall recapture any unexpended
amounts and deposit the amounts in the National
Flood Mitigation Fund under section 1367.
‘‘(2) 
FAILURE
TO
PROVIDE
MATCHING
FUNDS.—If the Director determines that a State,
community, or individual that has received mitiga-
tion assistance under this section has not provided
matching funds in the amount certified under sub-
section (g), the Director shall recapture any unex-
pended amounts of mitigation assistance exceeding 3
times the amount of such matching funds actually
provided and deposit the amounts in the National
Flood Mitigation Fund under section 1367.
‘‘(j) REPORTS.—Not later than 1 year after the date
of enactment of the National Flood Insurance Reform Act
of 1994 and biennially thereafter, the Director shall sub-
mit a report to the Congress describing the status of miti-
gation activities carried out with assistance provided under
this section.
‘‘(k) DEFINITION OF COMMUNITY.—For purposes of
this section, the term ‘community’ means—
‘‘(1) a political subdivision that (A) has zoning
and building code jurisdiction over a particular area
of special flood hazards, and (B) is participating in
the national flood insurance program; or
‘‘(2) a political subdivision of a State, or other
authority, that is designated to develop and admin-
ister a mitigation plan by political subdivisions, all
of which meet the requirements of paragraph (1).’’.
(b) REGULATIONS.—Not later than 6 months after
date of enactment of this Act, the Director of the Federal
Emergency Management Agency shall issue regulations to
carry out section 1366 of the National Flood Insurance
Act of 1968, as added by subsection (a).
SEC. 404. ESTABLISHMENT OF NATIONAL FLOOD MITIGA-
TION FUND.
(a) IN GENERAL.—Chapter III of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101 et seq.), as
amended by the preceding provisions of this Act, is further
amended by adding at the end the following new section:
‘‘NATIONAL FLOOD MITIGATION FUND
‘‘SEC. 1367. (a) ESTABLISHMENT AND AVAILABIL-
ITY.—The Director shall establish in the Treasury of the
United States a fund to be known as the National Flood
Mitigation Fund, which shall be credited with amounts de-
scribed in subsection (b) and shall be available, to the ex-
tent provided in appropriation Acts, for providing assist-
ance under section 1366.
‘‘(b) CREDITS.—The National Flood Mitigation Fund
shall be credited with—
‘‘(1) any premium surcharges assessed under
section 1308(f);
‘‘(2) any penalties collected under section
102(f) of the Flood Disaster Protection Act of 1973;
and
‘‘(3) any amounts recaptured under section
1366(i).
‘‘(c) INVESTMENT.—If the Director determines that
the amounts in the National Flood Mitigation Fund are
in excess of amounts needed under subsection (a), the Di-
rector may invest any excess amounts the Director deter-
mines advisable in interest-bearing obligations issued or
guaranteed by the United States.
‘‘(d) REPORT.—The Director shall submit a report
to the Congress not later than the expiration of the 1-
year period beginning on the date of the enactment of this
Act and not less than once during each successive 2-year
period thereafter. The report shall describe the status of
the Fund and any activities carried out with amounts from
the Fund.’’.
(b) NATIONAL FLOOD INSURANCE FUND AS SEPA-
RATE ACCOUNT.—Section 1310(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended
in the matter preceding paragraph (1)—
(1) by striking ‘‘is authorized to’’ and inserting
‘‘shall’’; and
(2) by inserting after ‘‘which shall be’’ the fol-
lowing: ‘‘an account separate from any other ac-
counts or funds available to the Director and shall
be’’.
SEC. 405. INSURANCE PREMIUM MITIGATION SURCHARGE.
Section 1308 of the National Flood Insurance Act of
1968 (42 U.S.C. 4015) is amended by adding at the end
the following new subsection:
‘‘(f) 
INSURANCE
PREMIUM
MITIGATION
SUR-
CHARGE.—
‘‘(1) ASSESSMENT.—Notwithstanding any other
provision of this title, the Director shall assess, with
respect to each contract for flood insurance coverage
under this title issued or renewed after the date of
the enactment of the National Flood Insurance Re-
form Act of 1994, a mitigation surcharge of—
‘‘(A) $10 per policy term, for policies hav-
ing a total coverage amount of $150,000 or less
that cover structures that are principal resi-
dences;
‘‘(B) $20 per policy term, for policies hav-
ing a total coverage amount of more than
$150,000 that cover structures that are prin-
cipal residences; and
‘‘(C) the amount established by the Direc-
tor not to exceed $40 per policy term, for poli-
cies covering other structures.
‘‘(2) DEPOSIT
IN
MITIGATION
FUND.—Any
mitigation surcharges collected shall be paid into the
National Flood Mitigation Fund under section 1367.
‘‘(3) EXEMPTION.—The mitigation surcharges
shall not be subject to any agents’ commissions,
company expenses allowances, or State or local pre-
mium taxes.’’.
SEC. 406. STUDY OF MITIGATION INSURANCE.
(a) STUDY.—The Director of the Federal Emergency
Management Agency shall conduct a study to determine
the feasibility of providing, as part of the flood insurance
policy, insurance coverage to provide for increases in the
costs of repair and reconstruction of repetitively and sub-
stantially flood-damaged insured buildings, in order to re-
pair, reconstruct, or otherwise mitigate future hazards to
those buildings to comply with local building codes and
floodplain management ordinances to the greatest extent
possible. In conducting the study, the Director shall seek
involvement from other Federal, State, and local agencies,
and representation from the insurance, construction, and
floodplain management interests. Under the study the Di-
rector shall—
(1) identify potential activities related to repair,
reconstruction, or otherwise achieving mitigation re-
quired to comply with standards under the national
flood insurance program and local building codes,
and evaluate the costs of such activities;
(2) evaluate how such insurance coverage could
be utilized to achieve economically justified acquisi-
tion, relocation, or elevation of certain structures
under certain circumstances;
(3) evaluate the cost of providing the additional
coverage and investigate a full range of measures for
funding such costs, including changes in coverage,
rates, and deductibles;
(4) evaluate the effects changes identified in
paragraph (3) would have on the entire policy base,
the cost of flood insurance, retention of policies,
marketing of policies, the number and magnitude of
claims paid, and the economic soundness and value
of flood-prone property, and provide detail on such
effects by State and, for communities participating
in the national flood insurance program, by commu-
nity; and
(5) identify mechanisms required to identify
qualifying structures, determine appropriate mitiga-
tion measures, coordinate with State and local offi-
cials, provide consistency with State and local plans
and programs, deliver the increased insurance pay-
ments, and verify appropriate actions by policy-
holders.
(b) REPORT.—The Director shall submit to the Con-
gress a report describing the study not later than the expi-
ration of the 18-month period beginning on the date of
the enactment of this Act. The report shall include conclu-
sions and recommendations of the Director in conducting
the study.
TITLE V—FLOOD INSURANCE
TASK FORCE
SEC. 501. FLOOD INSURANCE INTERAGENCY TASK FORCE.
(a) ESTABLISHMENT.—There is hereby established
an interagency task force to be known as the Flood Insur-
ance Task Force (in this section referred to as the ‘‘Task
Force’’).
(b) MEMBERSHIP.—
(1) IN
GENERAL.—The Task Force shall be
composed of 12 members, who shall be the designees
of—
(A) the Federal Insurance Administrator;
(B) the Federal Housing Commissioner;
(C) the Secretary of Veterans Affairs;
(D) the Administrator of the Farmers
Home Administration;
(E) the Administrator of the Small Busi-
ness Administration;
(F) a designee of the Financial Institutions
Examination Council;
(G) the chairman of the Board of Direc-
tors of the Federal Home Loan Mortgage Cor-
poration;
(H) the chairman of the Board of Direc-
tors of the Federal National Mortgage Associa-
tion;
(I) the Under Secretary of Commerce for
Oceans and Atmosphere;
(J) the Director of the United States Fish
and Wildlife Service;
(K) the Administrator of the Environ-
mental Protection Agency; and
(L) the Secretary of the Army, acting
through the Chief of Engineers.
(2) QUALIFICATIONS.—Members of the Task
Force shall be designated for membership on the
Task Force by reason of demonstrated knowledge
and competence regarding the national flood insur-
ance program.
(c) DUTIES.—The Task Force shall carry out the fol-
lowing duties:
(1) Make recommendations to the head of each
Federal agency and enterprise referred to under sub-
section (b)(1) regarding establishment or adoption of
standardized enforcement procedures among such
agencies and corporations responsible for enforcing
compliance with the requirements under the national
flood insurance program to ensure fullest possible
compliance with such requirements.
(2) Conduct a study of the extent to which Fed-
eral agencies and the secondary mortgage market
can provide assistance in ensuring compliance with
the requirements under the national flood insurance
program and submit to the Congress a report de-
scribing the study and any conclusions.
(3) Conduct a study of the extent to which ex-
isting programs of Federal agencies and corpora-
tions for compliance with the requirements under
the national flood insurance program can serve as a
model for other Federal agencies responsible for en-
forcing compliance, and submit to the Congress a re-
port describing the study and any conclusions.
(4) Develop guidelines regarding enforcement
and compliance procedures, based on the studies and
findings of the Task Force, and publish the guide-
lines in a usable format.
(d) NONCOMPENSATION.—Members of the Task
Force shall receive no additional pay by reason of their
service on the Task Force.
(e) CHAIRPERSON.—The members of the Task Force
shall elect one member as chairperson of the Task Force.
(f) MEETINGS AND ACTION.—The Task Force shall
meet at the call of the chairman or a majority of the mem-
bers of the Task Force and may take action by a vote
of the majority of the members. The Federal Insurance
Administrator shall coordinate and call the initial meeting
of the Task Force.
(g) OFFICERS.—The chairperson of the Task Force
may appoint any officers to carry out the duties of the
Task Force under subsection (c).
(h) STAFF OF FEDERAL AGENCIES.—Upon request
of the chairperson of the Task Force, the head of any of
the Federal agencies and corporations referred to under
subsection (b)(1) may detail, on a nonreimbursable basis,
any of the personnel of such agency to the Task Force
to assist the Task Force in carrying out its duties under
this Act.
(i) POWERS.—In carrying out this section, the Task
Force may hold hearings, sit and act at times and places,
take testimony, receive evidence and assistance, provide
information, and conduct research as the Task Force con-
siders appropriate.
(j) SUBCOMMITTEE ON NATURAL AND BENEFICIAL
FUNCTIONS OF THE FLOODPLAIN.—The members of the
Task Force appointed under subparagraphs (I), (J), (K),
and (L) of subsection (b)(1) shall constitute a select sub-
committee which, in addition to carrying out the duties
under subsection (c), shall make recommendations regard-
ing the implementation of the provisions of the National
Flood Insurance Act of 1968 that deal with protection of
the natural and beneficial functions of the floodplain.
(k) TERMINATION.—The Task Force shall terminate
upon the expiration of the 24-month period beginning
upon the designation of the last member to be designated
under subsection (b)(1).
TITLE VI—MISCELLANEOUS
PROVISIONS
SEC. 601. EXTENSION OF FLOOD INSURANCE PROGRAM.
(a) IN GENERAL.—Section 1319 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4026) is amended
by striking ‘‘September 30, 1995’’ and inserting ‘‘Septem-
ber 30, 1996’’.
(b) 
EMERGENCY
IMPLEMENTATION.—Section
1336(a) of the National Flood Insurance Act of 1968 (42
U.S.C. 4056(a)) is amended by striking ‘‘September 30,
1995’’ and inserting ‘‘September 30, 1996’’.
SEC. 602. LIMITATION ON PREMIUM INCREASES.
(a) PROPERTY-SPECIFIC LIMITATION.—Section 1308
of the National Flood Insurance Act of 1968 (42 U.S.C.
4013(b)) is amended—
(1) in subsection (c), by striking ‘‘Notwith-
standing any other provision of this title’’ and in-
serting ‘‘Subject only to the limitation under sub-
section (e)’’; and
(2) by inserting after subsection (d) the follow-
ing new subsection:
‘‘(e) 
ANNUAL
LIMITATION
ON
PREMIUM
IN-
CREASES.—Notwithstanding any other provision of this
title, the risk premium rate for flood insurance that is
charged under this title for any property may not be in-
creased in an amount that would result in such rate in-
creases for the property during any 12-month period ex-
ceeding 10 percent of the amount of the risk premium rate
applicable to the property upon the commencement of such
12-month period.’’.
(b) REPEAL OF PROGRAM-WIDE LIMITATION.—Sub-
section (d) of section 541 of the Housing and Community
Development Act of 1987 (42 U.S.C. 4015 note) is hereby
repealed.
SEC. 
603. 
MAXIMUM 
FLOOD 
INSURANCE 
COVERAGE
AMOUNTS.
(a) IN GENERAL.—Section 1306(b) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4013(b)) is
amended as follows:
(1) RESIDENTIAL
PROPERTY.—In paragraph
(2), by striking ‘‘an amount of $150,000 under the
provisions of this clause’’ and inserting the follow-
ing: ‘‘a total amount (including such limits specified
in paragraph (1)(A)(i)) equal to the dollar amount
limitation pursuant to section 305(a)(2) of the Fed-
eral Home Loan Mortgage Corporation Act in effect
for a single-family residence’’.
(2) RESIDENTIAL
PROPERTY
CONTENTS.—In
paragraph (3), by striking ‘‘an amount of $50,000
under the provisions of this clause’’ and inserting
the following: ‘‘a total amount (including such limits
specified in paragraph (1)(A)(ii)) of $100,000’’.
(3) NONRESIDENTIAL
PROPERTY
AND
CON-
TENTS.—By striking paragraph (4) and inserting
the following new paragraph:
‘‘(4) in the case of any nonresidential property,
including churches, for which the risk premium rate
is determined in accordance with the provisions of
section 1307(a)(1), additional flood insurance in ex-
cess of the limits specified in subparagraphs (B) and
(C) of paragraph (1) 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 limits specified in
subparagraph (B) or (C) or paragraph (1), as appli-
cable) of $500,000 for each structure and $500,000
for any contents related to each structure; and’’.
(b) REMOVAL
OF
CEILING
ON
COVERAGE
RE-
QUIRED.—Section 1306(b) of the National Flood Insur-
ance Act of 1968 (42 U.S.C. 4013(b)) is amended—
(1) in paragraph (5), by striking ‘‘; and’’ at the
end and inserting a period; and
(2) by striking paragraph (6).
SEC. 604. FLOOD INSURANCE PROGRAM ARRANGEMENTS
WITH PRIVATE INSURANCE ENTITIES.
Section 1345(b) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4081(b)) is amended by striking the
period at the end and inserting the following: ‘‘and without
regard to the provisions of the Federal Advisory Commit-
tee Act (5 U.S.C. App.).’’.
SEC. 605. UPDATING OF FLOOD MAPS.
Section 1360 of the National Flood Insurance Act of
1968 (42 U.S.C. 4101) is amended by adding at the end
the following new subsections:
‘‘(e) REVIEW OF FLOOD MAPS.—Once during each
5-year period (the 1st such period beginning on the date
of the enactment of the National Flood Insurance Reform
Act of 1994) or more often as the Director determines
necessary, the Director shall assess the need to revise and
update all floodplain areas and flood risk zones identified,
delineated, or established under this section.
‘‘(f) UPDATING FLOOD MAPS.—The Director shall
revise and update any floodplain areas and flood-risk
zones—
‘‘(1) upon the determination of the Director,
according to the assessment under subsection (e),
that revision and updating are necessary for the
areas and zones; or
‘‘(2) upon the request from any State or local
government stating that specific floodplain areas or
flood-risk zones in the State or locality need revision
or updating, if sufficient technical data justifying
the request is submitted and the unit of government
making the request agrees to provide funds in an
amount equal to the amount of funds provided by
the Director (or the equivalent value of data, tech-
nical analysis, or other in-kind services) for the re-
quested revision or update.
‘‘(g) AVAILABILITY OF FLOOD MAPS.—To promote
compliance with the requirements of this title, the Director
shall make flood insurance rate maps and related informa-
tion available free of charge to State agencies directly re-
sponsible for coordinating the national flood insurance
program and to appropriate representatives of commu-
nities participating in the national flood insurance pro-
gram, and at a reasonable cost to all other persons. Any
receipts resulting from this subsection shall be deposited
in the National Flood Insurance Fund, pursuant to sec-
tion 1310(b)(6).
‘‘(h) NOTIFICATION OF FLOOD MAP CHANGES.—The
Director shall cause notice to be published in the Federal
Register (or shall provide notice by another comparable
method) of any change to flood insurance map panels and
any change to flood insurance map panels issued in the
form of a letter of map amendment or a letter of map
revision. Such notice shall be published or otherwise pro-
vided not later than 30 days after the map change or revi-
sion becomes effective. Notice by any method other than
publication in the Federal Register shall include all perti-
nent information, provide for regular and frequent dis-
tribution, and be at least as accessible to map users as
notice in the Federal Register. All notices under this sub-
section shall include information on how to obtain copies
of the changes or revisions.
‘‘(i) COMPENDIA OF FLOOD MAP CHANGES.—Every
6 months, the Director shall publish separately in their
entirety within a compendium, all changes and revisions
to flood insurance map panels and all letters of map
amendment and letters of map revision for which notice
was published in the Federal Register or otherwise pro-
vided during the preceding 6 months. The Director shall
make such compendia available, free of charge, to States
and communities participating in the national flood insur-
ance program pursuant to section 1310 and at cost to all
other parties. Any receipts resulting from this subsection
shall be deposited in the National Flood Insurance Fund,
pursuant to section 1310(b)(6).’’.
SEC. 606. TECHNICAL MAPPING ADVISORY COUNCIL.
(a) ESTABLISHMENT.—There is established a council
to be known as the Technical Mapping Advisory Council
(in this section referred to as the ‘‘Council’’).
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Council shall consist of
the Director of the Federal Emergency Management
Agency, or the Director’s designee, and 11 addi-
tional members to be appointed by the Director or
the designee of the Director, and shall include—
(A) the Under Secretary of Commerce for
Oceans and Atmosphere (or his or her des-
ignee);
(B) a member of recognized surveying and
mapping professional associations and organiza-
tions;
(C) a member of recognized professional
engineering associations and organizations;
(D) a member of recognized professional
associations or organizations representing flood
hazard determination firms;
(E) a representative of the United States
Geologic Survey;
(F) a representative of State geologic sur-
vey programs;
(G) a representative of State national flood
insurance coordination offices; and
(H) a representative of a regulated lending
institution.
(2) QUALIFICATIONS.—Members of the Council
shall be appointed based on their demonstrated
knowledge and competence regarding surveying, car-
tography, remote sensing, geographic information
systems, or the technical aspects of preparing and
using flood insurance rate maps.
(c) DUTIES.—The Council shall—
(1) make recommendations to the Director on
how to improve in a cost-effective manner the accu-
racy, general quality, ease of use, and distribution
and dissemination of flood insurance rate maps;
(2) recommend to the Director mapping stand-
ards and guidelines for flood insurance rate maps;
and
(3) submit an annual report to the Director
that contains—
(A) a description of the activities of the
Council;
(B) an evaluation of the status and per-
formance of flood insurance rate maps and
mapping activities to revise and update flood in-
surance rate maps, as established pursuant to
the amendment made by section 605; and
(C) a summary of recommendations made
by the Council to the Director.
(d) CHAIRPERSON.—The members of the Council
shall elect 1 member to serve as the chairperson of the
Council (in this section referred to as the ‘‘Chairperson’’).
(e) COORDINATION.—To ensure that the Council’s
recommendations are consistent to the maximum extent
practicable with national digital spatial data collection and
management standards, the Chairperson shall consult with
the Chairperson of the Federal Geographic Data Commit-
tee (established pursuant to OMB Circular A–16).
(f) COMPENSATION.—Members of the Council shall
receive no additional compensation by reason of their serv-
ice on the Council.
(g) MEETINGS AND ACTIONS.—
(1) IN GENERAL.—The Council shall meet not
less than twice each year at the request of the
Chairperson or a majority of its members and may
take action by a vote of the majority of the mem-
bers.
(2) INITIAL MEETING.—The Director, or a per-
son designated by the Director, shall request and co-
ordinate the initial meeting of the Council.
(h) OFFICERS.—The Chairperson may appoint offi-
cers to assist in carrying out the duties of the Council
under subsection (c).
(i) STAFF OF THE FEDERAL EMERGENCY MANAGE-
MENT AGENCY.—Upon the request of the Chairperson,
the Director may detail, on a nonreimbursable basis, per-
sonnel of the Federal Emergency Management Agency to
assist the Council in carrying out its duties.
(j) POWERS.—In carrying out this section, the Coun-
cil may hold hearings, receive evidence and assistance, pro-
vide information, and conduct research as it considers ap-
propriate.
(k) TERMINATION.—The Council shall terminate 5
years after the date on which all members of the Council
have been appointed under subsection (b)(1).
SEC. 607. EVALUATION OF EROSION HAZARDS.
(a) REPORT REQUIREMENT.—The Director of the
Federal Emergency Management Agency (in this section
referred to as the ‘‘Director’’) shall submit a report under
this section to the Congress evaluating erosion hazards,
determining the economic impact of erosion hazards, and
assessing the costs and benefits of mapping erosion hazard
areas.
(b) EROSION HAZARD AREAS AND NFIP COSTS.—
The report required under this section shall—
(1) identify all communities that are likely to be
identified as having erosion hazard areas;
(2) estimate the amount of flood insurance
claims under the national flood insurance program
that are attributable to erosion;
(3) state the amount of flood insurance claims
under such program that are attributable to claims
under section 1306(c) of the National Flood Insur-
ance Act of 1968;
(4) assess the full economic impact of erosion
on the National Flood Insurance Fund; and
(5) determine the costs and benefits of expendi-
tures necessary from the National Flood Insurance
Fund to complete mapping of erosion hazard areas.
To identify communities under paragraph (1), the Direc-
tor may map a statistically valid and representative num-
ber of communities with erosion hazard areas throughout
the United States, including coastal, Great Lakes, and,
if technologically feasible, riverine areas. The information
provided under this subsection shall take into consider-
ation the efforts of State and local governments to assess,
measure, and reduce erosion hazards.
(c) ECONOMIC IMPACT.—The report under this sec-
tion shall—
(1) assess the economic impact of—
(A) the mapping of erosion hazard areas;
(B) the denial of flood insurance for struc-
tures that are newly constructed in whole in
communities likely to be identified as having
erosion hazard areas and the establishment of
actuarial rates for existing structures in such
communities;
(C) the denial of flood insurance pursuant
to existing requirements for coverage under the
national flood insurance program; and
(D) erosion hazard management activities
undertaken by State and local governments, in-
cluding building restrictions, beach nourish-
ment, construction of sea walls and levees, and
other activities that reduce the risk of damage
due to erosion; and
(2) address the economic impact of designating
erosion hazard areas on—
(A) the value of residential and commercial
properties in communities with erosion hazards;
(B) community tax revenues due to poten-
tial changes in property values or commercial
activity;
(C) employment, including the potential
loss or gain of existing and new jobs in the
community;
(D) existing businesses and future eco-
nomic development; and
(E) the estimated cost of Federal and
State disaster assistance to flood victims.
(d) COSTS AND BENEFITS OF MAPPING.—The report
under this section shall—
(1) determine the costs and benefits of mapping
erosion hazard areas, based upon the Director’s esti-
mate of the actual and prospective amount of flood
insurance claims attributable to erosion, and if the
Director determines that the savings to the National
Flood Insurance Fund will exceed the cost of map-
ping erosion hazard areas, the report shall assess
whether using flood insurance premiums for costs of
mapping erosion hazard areas is cost-beneficial com-
pared to alternative uses of such amounts, includ-
ing—
(A) funding the mitigation assistance pro-
gram under section 1366 of the National Flood
Insurance Act of 1968 (as added by section 403
of this Act); and
(B) funding a program that would provide
additional coverage under the national flood in-
surance program for compliance with land use
and control measures; and
(C) reviewing, revising, and updating flood
insurance rate maps under subsections (e) and
(f) of section 1360 of the National Flood Insur-
ance Act of 1968 (as added by the amendment
made by section 605 of this Act);
(2) if the Director determines under subsection
(b) that mapping of riverine areas for erosion hazard
areas is technologically feasible, determine the costs
and benefits of mapping erosion in riverine areas;
and
(3) determine the costs and benefits of mapping
erosion, other than those directly related to the fi-
nancial condition of the National Flood Insurance
Program, and the costs of not mapping erosion.
(e) DEFINITION.—For purposes of this section, the
term ‘‘erosion hazard area’’ means, based on erosion rate
information and other historical data available, an area
where erosion or avulsion is likely to result in damage to
or loss of buildings and infrastructure within a 60-year
period.
(f) PROCEDURE.—
(1) PREPARATION AND SUBMISSION.—The re-
port required under this section shall be prepared by
a private independent entity selected by the Direc-
tor. The Director shall submit the report to the Con-
gress as soon as practicable, but not later than 2
years after the date of the enactment of this Act.
(2) CONSULTATION.—In preparing the report,
the private entity shall consult with—
(A) a statistically valid and representative
number of communities likely to be identified as
having erosion hazard areas;
(B) representatives from State coastal zone
management programs approved under section
306 of the Coastal Zone Management Act of
1972;
(C) the Administrator of the National Oce-
anic and Atmospheric Administration;
(D) the Director of the Federal Emergency
Management Agency; and
(E) and any other persons, officials, or en-
tities that the Director considers appropriate.
(g) AVAILABILITY OF NATIONAL FLOOD INSURANCE
FUND.—Section 1310(a) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4017(a)) is amended—
(1) in the matter preceding paragraph (1), by
inserting ‘‘(except as otherwise provided in this sec-
tion)’’ after ‘‘without fiscal year limitation’’; and
(2) by inserting after paragraph (5) (as added
by the preceding provisions of this Act) the following
new paragraph:
‘‘(6) for costs of preparing the report under
section 607 of the National Flood Insurance Reform
Act of 1994, except that the fund shall be available