SEC. 112. 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 
II—FLOOD 
INSURANCE
PREMIUM RATES AND COV-
ERAGE AMOUNTS
SEC. 201. PREFERENCE FOR CHARGING ACTUARIAL RATES.
Section 1308(b) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4015(b)) is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘shall, insofar as practicable, be’’;
(2) in each of paragraphs (1), (3), and (4), by
inserting ‘‘shall, insofar as practicable, be’’ after the
paragraph designation; and
(3) by striking paragraph (2) and inserting the
following new paragraph:
‘‘(2) shall be adequate, on the basis of accepted
actuarial principles, to provide reserves for antici-
pated losses, except that such rates may be less than
such amount only if—
‘‘(A) the rates are necessary to carry out—
‘‘(i) the objective of making flood in-
surance available where necessary at rea-
sonable rates to encourage prospective
insureds to purchase such insurance, and
‘‘(ii) the purposes of this title, and
‘‘(B) with respect to rates in effect at any
time after the expiration of the 1-year period
beginning on the date of the enactment of the
Flood Insurance Risk Management Act of
1994.
‘‘(i) the Director has certified to the
President and the Congress that, during a
specified period that does not exceed 2
years and begins on or after the date of
such certification, such rates are necessary
to carry out the objective referred to in
subparagraph (A)(i), and
‘‘(ii) the period referred to in the cer-
tification has not expired,’’.
SEC. 202. COMMUNITY RATING SYSTEM AND INCENTIVES
FOR FLOOD DAMAGE MITIGATION MEAS-
URES.
(a) IN GENERAL.—Section 1315 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4022) is amend-
ed—
(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 FLOOD DAMAGE MITIGATION MEASURES.—
‘‘(1) AUTHORITY
AND
GOALS.—The Director
shall carry out a program under this subsection es-
tablishing a community rating system and providing
incentives for community floodplain management
and flood damage mitigation measures. The program
shall evaluate—
‘‘(A) measures adopted by areas (and sub-
divisions thereof) in which the Director has
made flood insurance coverage available—
‘‘(i) to provide for adequate land use
and control provisions consistent with the
comprehensive criteria for such land man-
agement and use under section 1361;
‘‘(ii) to facilitate accurate risk-rating;
‘‘(iii) to promote flood insurance
awareness;
‘‘(iv) to complement adoption of more
effective measures for floodplain and coast-
al erosion management; and
‘‘(v) to reduce the risk of flood dam-
age to properties within such area; and
‘‘(B) flood damage mitigation measures
taken by owners of properties for which such
coverage is provided.
‘‘(2) INCENTIVES.—The program under this
subsection shall provide incentives in the form of ad-
justments in the premium rates for flood insurance
coverage as follows:
‘‘(A) AREA-WIDE ADJUSTMENT FOR ADOP-
TION OF GOALS OR MITIGATION MEASURES.—
For any area that the Director determines has
adopted and enforced the goals of the commu-
nity rating system under this subsection on an
area-wide basis or completed flood damage miti-
gation or erosion control measures that reduce
the risk of flood damage to properties within
such area to the extent established by the Di-
rector, the Director shall adjust such premium
rates for flood insurance coverage for properties
located in such area.
‘‘(B) AREA-WIDE ADJUSTMENT FOR PRO-
TECTION
OF
FLOODPLAIN
FUNCTIONS.—For
any area that the Director determines has im-
plemented measures relating to the protection
of natural and beneficial floodplain functions,
the Director may provide for additional adjust-
ments in such premium rates for properties lo-
cated in such area.
‘‘(C) AREA-WIDE
ADJUSTMENT
TO
COM-
PENSATE
FOR
FLOOD
CONTROL
PROJECTS.—
For any area within which such flood insurance
premium rates have increased as a result of in-
duced flooding risk from flood control or miti-
gation projects, as determined by the Director,
the Director may provide for additional adjust-
ments in such premium rates for properties lo-
cated in such area, except that the adjustment
shall not reduce premium rates below the rate
that would have been charged absent the risk of
induced flooding from the flood control or miti-
gation projects.
‘‘(D) PROPERTY-SPECIFIC
ADJUSTMENT
FOR MITIGATION MEASURES.—For any property
for which any flood damage mitigation measure
has been completed that reduces the risk of
flood damage to the property to the extent es-
tablished by the Director, the Director shall ad-
just the premium rate for flood insurance cov-
erage for such property.
‘‘(3) FLOOD DAMAGE MITIGATION MEASURES.—
For purposes of this subsection, flood damage miti-
gation measures shall include the establishment of
buffer zones, flood proofing, dune construction and
maintenance, beach nourishment, construction and
maintenance of sea walls and levees, and any other
measures and activities that the Director considers
appropriate to reduce the risk of flood damage to a
property or an area.
‘‘(4) EROSION CONTROL MEASURES.—For pur-
poses of this subsection, the term ‘erosion control
measures’ means any activities by an area to control
erosion 
through 
structural 
and 
nonstructural
projects.
‘‘(5) 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.
‘‘(6) 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 Flood Insurance Risk Management Act
of 1994. The Director shall submit a report under
this paragraph not less than every 2 years there-
after. Each report under this paragraph shall in-
clude an analysis of the cost-effectiveness and other
accomplishments and shortcomings of the program
and any recommendations of the Director for legisla-
tion regarding the program.’’.
(b) 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);’’.
SEC. 203. COMMUNITY PREMIUM-POOLING PROGRAM.
Part C of chapter II of the National Flood Insurance
Act of 1968 (42 U.S.C. 4081 et seq.) is amended by add-
ing at the end the following new section:
‘‘COMMUNITY PREMIUM-POOLING PROGRAM
‘‘SEC. 1349. (a) IN GENERAL.—The Director shall
carry out a program under which the premiums for flood
insurance coverage under this title for all properties in an
area (or subdivision thereof) may be paid to the Director
by a single appropriate public body or agency.
‘‘(b) POOLING AGREEMENT.—Under the program,
the Director shall allow such payment to be made only
if the Director and such body or agency enter into a writ-
ten agreement under which—
‘‘(1) the area to which such agreement applies
is clearly defined;
‘‘(2) the public body or agency entering into the
agreement has jurisdiction over the entire area for
which such premium payments will be made;
‘‘(3) the term of the agreement is clearly
stated;
‘‘(4) the Director authorizes the public body or
agency to collect premiums charged for flood insur-
ance coverage under this title, on behalf of the Di-
rector during the term of the agreement, for each
property located in the area that is covered during
the term of the agreement (including structures
newly constructed during the term of the agree-
ment), or such lesser amount as may be agreed to
by the Director and the public body or agency; and
‘‘(5) the amount to be paid to the Director by
the public agency or body is equal to the sum of all
premiums charged for flood insurance coverage
under this title during the term of the agreement for
all properties located in the area that are covered
during the term of the agreement.
‘‘(c) EXEMPTION FROM ESCROW REQUIREMENTS.—
During the term of an agreement under subsection (b),
section 102(d) of the Flood Disaster Protection Act of
1973 shall not apply to any loan secured by a property
located in the area to which the agreement applies.’’.
SEC. 
204. 
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. 205. STUDY OF ECONOMIC EFFECTS OF CHARGING AC-
TUARIALLY-BASED 
PREMIUM 
RATES 
FOR
PRE-FIRM STRUCTURES.
(a) STUDY.—The Director of the Federal Emergency
Management Agency (in this section referred to as the
‘‘Director’’) shall conduct a study of the economic effects
that would result from increasing premium rates for flood
insurance coverage made available under the national
flood insurance program for pre-FIRM structures to the
full actuarially based premium rate determined under sec-
tion 1307(a)(1) of the National Flood Insurance Act of
1968 for the area in which the property is located. In con-
ducting the study, the Director shall—
(1) determine each area that would be subject
to such increased premium rates; and
(2) for each such area, determine—
(A) the amount by which premium rates
would be increased;
(B) the number and types of properties af-
fected and the number and types of properties
covered by flood insurance under this title likely
to cancel such insurance if the rate increases
were made;
(C) the effects that the increased premium
rates would have on land values and property
taxes; and
(D) any other effects that the increased
premium rates would have on the economy and
homeowners.
(b) DEFINITION OF ‘‘PRE-FIRM STRUCTURE’’.—For
purposes of subsection (a), the term ‘‘pre-FIRM struc-
ture’’ means a structure that was not constructed or sub-
stantially improved after the later of—
(1) December 31, 1974; or
(2) the effective date of the initial rate map
published by the Director under section 1360(a)(2)
of the National Flood Insurance Act of 1968 for the
area in which such structure is located.
(c) REPORT.—The Director shall submit a report to
the Congress describing and explaining the findings of the
study conducted under this section. The report shall be
submitted not later than 12 months after the date of the
enactment of this Act.
SEC. 206. GAO STUDY OF ECONOMIC IMPACT OF EROSION
HAZARD AREAS.
(a) REPORT TO CONGRESS.—Not later than 3 years
after the date of enactment of this Act, the Comptroller
General of the United States shall submit to the Congress
a report assessing the economic impact of the denial of
flood insurance and the establishment of actuarial rates
on communities that are likely to be identified as having
erosion hazard areas. The report shall include—
(1) a listing of all communities that are likely
to be identified having an erosion hazard area;
(2) an independent assessment, after consulta-
tion with such communities, of the economic impact
of the denial of flood insurance for new construction
and the assessment of actuarial rates in the erosion
hazard areas, including the impact on—
(A) the value of residential and commercial
properties in the erosion hazard area;
(B) community tax revenues due to
changes in property values or commercial activ-
ity;
(C) employment, including the potential
loss 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 that
would have otherwise been insured by available
and affordable flood insurance;
(3) an estimate of the cross-subsidy of insur-
ance premiums in such communities, and the impact
of eliminating the cross-subsidy on those commu-
nities and the financial condition of the National
Flood Insurance Fund;
(4) the estimated savings to the National Flood
Insurance Program likely to result from expending
$25,000,000 from the National Flood Insurance
Fund to map erosion hazard areas; and
(5) an assessment of the need for the develop-
ment of a Community Erosion Hazard Management
Program and, if needed, recommendations consistent
with the goal of providing affordable flood insurance
protection under the National Flood Insurance Pro-
gram, which would minimize the economic impact on
communities assessed under paragraph (2).
(b) DEFINITION OF EROSION HAZARD AREA.—For
the 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 during a 60-year period.
TITLE 
III—REVOLVING 
LOAN
FUND FOR FLOOD AND ERO-
SION 
DAMAGE 
MITIGATION
ACTIVITIES AND ADDITIONAL
MITIGATION COVERAGE
SEC. 301. FLOOD AND EROSION RISK MANAGEMENT FUND.
(a) IN GENERAL.—Chapter III of the National Flood
Insurance Act of 1968 (42 U.S.C. 4101 et seq.) is amend-
ed by adding at the end the following new section:
‘‘LOANS FOR FLOOD AND EROSION RISK MANAGEMENT
‘‘SEC. 1365. (a) ESTABLISHMENT OF FUND AND
USE.—There is established in the Treasury of the United
States a revolving fund to be known as the Flood and Ero-
sion Risk Management Fund (in this section referred to
as the ‘Fund’). To the extent provided in appropriation
Acts, amounts in the Fund may be used only by the Direc-
tor for making loans under subsection (d) and investments
under subsection (c), and to repay any amounts borrowed
pursuant to subsection (b)(2) with interest on such
amounts.
‘‘(b) CREDITS.—The Fund shall be credited with—
‘‘(1) any surcharges collected under section
1308(e);
‘‘(2) any amounts borrowed pursuant to sub-
section (e);
‘‘(3) any loan repayments under subsection
(d)(3);
‘‘(4) any interest earned on investments of the
Fund pursuant to subsection (c);
‘‘(5) any amounts repaid or recovered under
subsection (d)(4); and
‘‘(6) any other receipts or proceeds derived
from any claim or other assets acquired by the Di-
rector pursuant to this section.
‘‘(c) INVESTMENTS.—If the Director determines that
the amounts in the Fund are in excess of amounts needed
for loans under subsection (d), the Director may invest
any excess amounts the Director determines advisable in
interest-bearing obligations issued or guaranteed by the
United States.
‘‘(d) LOANS.—
‘‘(1) AUTHORITY.—Using amounts in the
Fund, the Director may make loans—
‘‘(A) to public bodies or agencies of com-
munities participating in the national flood in-
surance program pursuant to section 1315 for
the purpose of carrying out flood damage and
erosion mitigation activities for the community;
and
‘‘(B) to individuals who own property cov-
ered by a contract for flood insurance under
this title for the purposes of carrying out flood
damage and erosion mitigation activities for the
property.
‘‘(2) ELIGIBLE
ACTIVITIES.—Amounts from
loans made under this subsection may be used only
for carrying out the flood damage and erosion miti-
gation activities that have been described in the ap-
plication for the loan and approved by the Director.
The Director shall determine activities eligible for
loans under this subsection, which shall include flood
proofing, dune construction and maintenance, acqui-
sition of property by public entities for public owner-
ship or the establishment of buffer zones, beach
nourishment, construction, repair, or maintenance of
sea walls and levees, and any other measures and
activities that the Director considers appropriate to
reduce the risk of flood damage and erosion to a
property or an area.
‘‘(3) INTEREST AND REPAYMENT.—Loans made
under this section shall bear interest at a rate deter-
mined by the Director, which may not exceed 3 per-
cent per annum, and shall be repayable to the Fund
at such time and upon such terms and conditions es-
tablished and agreed to by the Director and the
borrower.
‘‘(4) DEFAULT.—Each agreement for a loan
made under this section shall provide that if the Di-
rector determines at any time that the borrower has
not used the amounts of the loan in accordance with
this subsection or the provisions of the loan agree-
ment, the Director may—
‘‘(A) recover the amount of the loan; or
‘‘(B) require the borrower to repay the
amount of the loan within the term of the loan
at an annual rate of interest over such term
equal to the sum of the existing annual rate for
comparable commercial loans, as determined by
the Director, plus 1 percent.
‘‘(e) BORROWING AUTHORITY.—
‘‘(1) INITIAL.—Pursuant to section 1310(a)(6),
upon the establishment of the Fund under this sec-
tion and with the approval of the Secretary of the
Treasury, the Director may borrow an amount from
the National Flood Insurance Fund not exceeding
$20,000,000 for deposit in the Fund under this
section.
‘‘(2) ONGOING.—In addition to any amounts
borrowed under paragraph (1), before October 1,
1999, the Director may, with the approval of the
Secretary of the Treasury, borrow amounts from the
National Flood Insurance Act pursuant to section
1310(a)(6) for deposit in the Fund under this sec-
tion. The sum of amounts borrowed under this para-
graph may not exceed $30,000,000.
‘‘(3) TERMS AND CONDITIONS.—Any amounts
borrowed under this subsection shall be repaid to the
National Flood Insurance Fund, with interest, and
shall be evidenced by notes and other obligations is-
sued by the Director. The notes and obligations shall
be in such forms and denominations, bear such ma-
turities, and be subject to such terms and conditions
as may be prescribed by the Director, with the ap-
proval of the Secretary of the Treasury. Such notes
and other obligations shall bear interest at a rate de-
termined by the Secretary of the Treasury, taking
into consideration the current average market yield
on outstanding marketable obligations of the United
States of comparable maturities during the month
preceding the issuance of such notes or other obliga-
tions.’’.
Flood Insurance Risk Management Act of 1994, a
surcharge of—
‘‘(A) $15 for each principal residence cov-
ered under the policy; and
‘‘(B) $40 for each secondary residence or
structure other than a primary residence (in-
cluding commercial structures) covered under
the policy.
The Director may not assess a surcharge under this
paragraph for any residence or other structure for
which such a surcharge has previously been assessed
and paid.
‘‘(2) 
AUTHORITY
FOR
POLICY-TERM
SUR-
CHARGES.—If the Director determines that the
amounts in the Flood Risk Management Fund es-
tablished under section 1365(a) are insufficient to
meet the demand for loans under section 1365(d),
the Director may assess, with respect to each con-
tract for flood insurance coverage under this title is-
sued or renewed after a date established by the Di-
rector, a surcharge of—
‘‘(A) $5 per policy term, for each structure
that is a principal residence covered under the
policy; and
‘‘(B) $15 per policy term, for each struc-
ture that is a secondary residence or structure
other than a primary residence (including a
commercial structure) covered under the policy.
The Director may terminate the surcharges estab-
lished under this paragraph at any time, in the dis-
cretion of the Director.
‘‘(3) DEPOSIT IN MITIGATION FUND.—Any sur-
charges collected under this subsection shall be paid
into the Flood Risk Management Fund established
under section 1365(a).
‘‘(4) EXEMPTION.—The surcharges under this
subsection shall not be subject to any agents’ com-
missions, company expenses allowances, or State or
local premium taxes.’’.
SEC. 303. ADDITIONAL COVERAGE FOR MITIGATION ACTIVI-
TIES.
(a) BASIC AUTHORITY.—Section 1304(a) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4011(a))
is amended by adding after the period at the end the fol-
lowing new sentence: ‘‘Insurance made available under
this title shall include coverage for certain costs of comply-
ing with land use and control measures adopted pursuant
to section 1315, as provided in section 1306(c)’’.
(b) TERMS
OF MITIGATION COVERAGE.—Section
1306 of the National Flood Insurance Act of 1968 (42
U.S.C. 4011(a)) is amended by adding at the end the fol-
lowing new subsection:
‘‘(d) TERMS OF MITIGATION COVERAGE.—Coverage
under flood insurance made available under this title shall
provide payment for a portion of the costs of activities to
bring a property into compliance with land use and control
measures adopted pursuant to section 1315, pursuant to
an approved claim for such costs and subject to the follow-
ing limitations:
‘‘(1) REPETITIVE LOSS REQUIREMENT.—Such
coverage shall only cover such costs incurred for a
property that is determined to be repetitive loss
structure for purposes of section 1308(g).
‘‘(2) POST-FLOOD EVENT CLAIMS.—Such cov-
erage shall provide payment for 40 percent of the
costs of such compliance activities that are per-
formed after the first flood event resulting in dam-
age to the property that occurs after the property
becomes a repetitive loss structure for purposes of
section 1308(g).
‘‘(3) PRE-FLOOD
EVENT
CLAIMS.—Such cov-
erage shall provide payment for 60 percent of the
costs of such compliance activities that are per-
formed before the flood event resulting in damage to
the property that occurs after the property becomes
a repetitive loss structure for purposes of section
1308(g).’’.
(c) SURCHARGES FOR MITIGATION COVERAGE.—
(1) IN
GENERAL.—Section 1308 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C.
4015) is amended by adding after subsection (e) (as
added by section 302 of this Act) the following new
subsection:
‘‘(f) MITIGATION COVERAGE SURCHARGES.—
‘‘(1) IN GENERAL.—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 Flood Insurance Risk Manage-
ment Act of 1994, a surcharge of—
‘‘(A) $20 per policy term, for each struc-
ture that is a principal residence covered under
the policy; and
‘‘(B) $30 per policy term, for each struc-
ture that is a secondary residence or structure
other than a primary residence (including a
commercial structure) covered under the policy.
‘‘(2) DEPOSIT IN FLOOD INSURANCE FUND.—
Any surcharges collected under this subsection shall
be paid into the National Flood Insurance Fund
established under section 1310.’’.
(2) NATIONAL FLOOD INSURANCE FUND.—Sec-
tion 1310(b) of the National Flood Insurance Act of
1968 (42 U.S.C. 4017(b)) is amended by inserting
after paragraph (7) (as added by section 301(b)(2)
of this Act) the following new paragraph:
‘‘(8) any surcharges collected under section
1308(f); and’’.
TITLE IV—MISCELLANEOUS
PROVISIONS
SEC. 401. 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, 1999’’.
(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, 1999’’.
(c) LIMITATION ON ANNUAL PREMIUM INCREASES.—
Section 541(d) of the Housing and Community Develop-
ment Act of 1987 (42 U.S.C. 4015 note) is amended by
striking ‘‘September 30, 1995’’ and inserting ‘‘September
30, 1999’’.
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 amend-
ed—
(1) by striking subsection (c); and
(2) by redesignating subsection (d) (as added
by section 303(b) of this Act) as 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-