sions of this Act, is further amended by adding at the end 
the following new section: 
‘‘SEC. 1350. FLOOD INSURANCE CLEARINGHOUSE. 
‘‘(a) ESTABLISHMENT AND OPERATIONS.—Not later 
than January 1, 2021, the Administrator shall establish 
and commence operations of a Flood Insurance Clearing-
house (in this section referred to as the ‘Clearinghouse)’ in 
accordance with the report, plan, and guidelines required 
under section 506(b)(2) of the 21st Century Flood Reform 
Act. 
‘‘(b) PURPOSE.—The Clearinghouse shall be estab-
lished for the purpose of receiving applications from pro-
spective insureds for flood insurance coverage for properties 
for which such coverage is prohibited under section 1305(f) 
of the National Flood Insurance Act of 1968 (42 U.S.C. 
4012(f)) and for providing to such applicants offers for such 
coverage from insurers providing private flood insurance 
(as such term is defined for purposes of section 102(c) of 
the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a(c)) and, subject to the limitations in this section, for 
coverage made available under the National Flood Insur-
ance Program. 
‘‘(c) FUNCTIONS.—The Clearinghouse shall have as its 
functions— 
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‘‘(1) to provide for prospective insureds to sub-
mit to the Clearinghouse applications for flood insur-
ance coverage for properties described in subsection 
(b); 
‘‘(2) to determine, with respect to a property 
identified in an application, the chargeable premium 
rate for coverage made available under this title; 
‘‘(3) with respect to a property identified in an 
application, to solicit offers of coverage under private 
flood insurance from providers of such insurance dur-
ing a reasonable period of time after such applica-
tion, which offers shall provide terms and conditions 
of insurance, including deductibles and exclusions, 
that are sufficient to meet the requirements of section 
102 of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4012a); and 
‘‘(4) to provide to the applicant for insurance— 
‘‘(A) any bona fide offers for private insur-
ance coverage made pursuant to paragraph (3) 
for the property identified in the application; 
‘‘(B) in the case only of a property for 
which such coverage is authorized pursuant to 
subsection (g) of section 1305, a bona fide offer 
for flood insurance coverage made available 
under this title for the property; and 
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‘‘(C) information to help the applicant for 
insurance understand such offers and the limita-
tion under section 1305(g); 
‘‘(d) MANAGEMENT AND OPERATION.—The Clearing-
house shall be managed and operated by a third party pur-
suant to a contract with the Administrator. 
‘‘(e) AGREEMENTS.—The Administrator may enter 
into such agreements with insurers providing private flood 
insurance coverage as may be necessary for the Clearing-
house to carry out its functions. 
‘‘(f) FEES.—The Clearinghouse may charge a fee to 
applicants to cover administrative costs of the Clearing-
house. 
‘‘(g) REPORTS.—The Clearinghouse shall report peri-
odically, as determined by the Administrator, to the Admin-
istrator regarding the operations and activities of the Clear-
inghouse.’’. 
SEC. 507. PAY FOR PERFORMANCE AND STREAMLINING 
COSTS AND REIMBURSEMENT. 
Section 1345 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081), as amended by the preceding provi-
sions of this Act, is further amended by adding at the end 
the following subsection: 
‘‘(g) WRITE YOUR OWN ALLOWANCE AND PROGRAM 
SAVINGS.— 
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‘‘(1) ALLOWANCE RATE.— 
‘‘(A) LIMITATION.—The allowance paid to 
companies participating in the Write Your Own 
Program (as such term is defined in section 1370 
(42 U.S.C. 4004)) with respect to a policy for 
flood insurance coverage made available under 
this title shall not be greater than 27.9 percent 
of the chargeable premium for such coverage. 
‘‘(B) INAPPLICABILITY.—Subparagraph (A) 
shall not apply to actual and necessary costs re-
lated to section 1312(a) (42 U.S.C, 4019(a)), or 
to payments deemed necessary by the Adminis-
trator. 
‘‘(C) IMPLEMENTATION.—The limitation in 
subparagraph (A) shall be imposed by equal re-
ductions over the 3-year period beginning on the 
date of the enactment of this subsection. 
‘‘(2) PROGRAM SAVINGS.— 
‘‘(A) 
IMPLEMENTATION.—The 
Adminis-
trator, within three years of the date of the en-
actment of this Act, shall reduce the costs and 
unnecessary burdens for the companies partici-
pating in the Write Your Own program by at 
least half of the amount by which the limitation 
under paragraph (1)(A) reduced costs compared 
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to the costs as of the date of the enactment of this 
subsection. 
‘‘(B) 
CONSIDERATION
OF
SAVINGS.—In 
meeting the requirement of subparagraph (A), 
the Administrator shall consider savings includ-
ing— 
‘‘(i) indirect payments by the Admin-
istrator of premium; 
‘‘(ii) eliminating unnecessary commu-
nications requirements; 
‘‘(iii) reducing the frequency of Na-
tional Flood Insurance Program changes; 
‘‘(iv) simplifying the flood rating sys-
tem; and 
‘‘(v) other ways of streamlining the 
Program to reduce costs while maintaining 
customer service and distribution.’’. 
SEC. 508. ENFORCEMENT OF MANDATORY PURCHASE RE-
QUIREMENTS. 
(a) PENALTIES.—Paragraph (5) of section 102(f) of 
the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a(f)(5)) is amended by striking ‘‘$2,000’’ and inserting 
‘‘$5,000’’. 
(b) INSURED DEPOSITORY INSTITUTIONS.—Subpara-
graph (A) of section 10(i)(2) of the Federal Deposit Insur-
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ance Act (12 U.S.C. 1820(i)(2)(A)) is amended by striking 
‘‘date of enactment of the Riegle Community Development 
and Regulatory Improvement Act of 1994 and biennially 
thereafter for the next 4 years’’ and inserting ‘‘date of enact-
ment of the 21st Century Flood Reform Act and biennially 
thereafter’’. 
(c) CREDIT UNIONS.—Subparagraph (A) of section 
204(e)(2) of the Federal Credit Union Act (12 U.S.C. 
1784(e)(2)(A)) is amended by striking ‘‘date of enactment 
of the Riegle Community Development and Regulatory Im-
provement Act of 1994 and biennially thereafter for the next 
4 years’’ and inserting ‘‘date of enactment of the 21st Cen-
tury Flood Reform Act and annually thereafter’’. 
(d) GOVERNMENT-SPONSORED ENTERPRISES.—Para-
graph (4) of section 1319B(a) of the Federal Housing En-
terprises Financial Safety and Soundness Act of 1992 (12 
U.S.C. 4521(a)(4)) is amended, in the matter after and 
below subparagraph (B), by striking ‘‘first, third, and fifth 
annual reports under this subsection required to be sub-
mitted after the expiration of the 1-year period beginning 
on the date of enactment of the Riegle Community Develop-
ment and Regulatory Improvement Act of 1994’’ and in-
serting ‘‘first annual report under this subsection required 
to be submitted after the expiration of the 1-year period 
beginning on the date of enactment of the 21st Century 
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Flood Reform Act and every such second annual report 
thereafter’’. 
(e) MANDATORY PURCHASE STUDY; GUIDELINES.— 
(1) STUDY.— 
(A) IN GENERAL.—The Comptroller General 
of the United States shall conduct a study of the 
implementation and efficacy of the requirements 
of section 102 of the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4012a). Such study shall 
at minimum consider the following questions: 
(i) How effectively do Federal agencies, 
regulated lending institutions, and Federal 
entities for lending regulation implement 
the requirements of section 102 of the Flood 
Disaster Protection Act of 1973? 
(ii) Does the current implementation of 
Flood Disaster Protection Act of 1973 align 
with the congressional findings and pur-
poses described in section 2(b) of such Act 
(42 U.S.C. 4002)? 
(iii) What, if any, unintended con-
sequences have resulted from the require-
ments and implementation of section 102 of 
such Act? 
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(B) REPORT.—Not later than the expiration 
of the 18-month period beginning on the date of 
the enactment of this Act, the Comptroller Gen-
eral shall submit a report to the Committee on 
Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate regarding the 
findings and conclusions of the study conducted 
pursuant to this paragraph. 
(2) GUIDELINES.—The Federal entities for lend-
ing regulation (as such term is defined in section 3(a) 
of the Flood Disaster Protection Act of 1973 (42 
U.S.C. 4003(a))), in consultation with the Adminis-
trator of the Federal Emergency Management Agency, 
shall jointly update and reissue the rescinded docu-
ment of the Administrator entitled ‘‘Mandatory Pur-
chase of Flood Insurance Guidelines’’ (lasted updated 
on October 29, 2014). The updated document shall in-
corporate recommendations made by the Comptroller 
General pursuant to paragraph (1) of this subsection. 
SEC. 509. SATISFACTION OF MANDATORY PURCHASE RE-
QUIREMENT IN STATES ALLOWING ALL-PER-
ILS POLICIES. 
Section 102 of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a) is amended— 
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(1) in subsection (a), by striking ‘‘After’’ and in-
serting ‘‘Subject to subsection (i) of this section, 
after’’; 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘Each’’ 
and inserting ‘‘Subject to subsection (i) of this 
section, each’’; 
(B) in paragraph (2), by striking ‘‘Each’’ 
the first place such term appears and inserting 
‘‘Subject to subsection (i) of this section, A’’; and 
(C) in paragraph (3), by striking ‘‘The’’ the 
first place such term appears and inserting 
‘‘Subject to subsection (i) of this section, the’’; 
(3) in subsection (e)(1), by striking ‘‘If’’ and in-
serting ‘‘Subject to subsection (i) of this section, if’’; 
and 
(4) by adding at the end the following new sub-
section: 
‘‘(i) SATISFACTION OF MANDATORY PURCHASE RE-
QUIREMENT
IN
STATES
ALLOWING
ALL-PERILS
POLI-
CIES.— 
‘‘(1) WAIVERS.—Section 102 shall not apply 
with respect to residential properties in any State 
that allows any property insurance coverage that cov-
ers ‘all-perils’ except specifically excluded perils that 
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includes coverage for flood perils in an amount at 
least equal to the outstanding principal balance of the 
loan or the maximum limit of flood insurance cov-
erage made available under this title with respect to 
such type of residential property, whichever is less. 
‘‘(2) DEFINITIONS, PROCEDURES, STANDARDS.— 
The Administrator may establish such definitions, 
procedures, and standards as the Administrator con-
siders necessary for making determinations under 
paragraph (1).’’. 
SEC. 510. FLOOD INSURANCE PURCHASE REQUIREMENTS. 
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— 
(1) in subsection (c)(2)(A), by striking ‘‘$5,000 
or less’’ and inserting the following: ‘‘$25,000 or less, 
except that such amount (as it may have been pre-
viously adjusted) shall be adjusted for inflation by the 
Administrator upon the expiration of the 5-year pe-
riod beginning upon the enactment of the 21st Cen-
tury Flood Reform Act and upon the expiration of 
each successive 5-year period thereafter, in accordance 
with an inflationary index selected by the Adminis-
trator’’; and 
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(2) by adding at the end the following new sub-
section: 
‘‘(j) FLOOD INSURANCE PURCHASE REQUIREMENTS.— 
Notwithstanding any other provision of law, a State or 
local government or private lender may require the pur-
chase of flood insurance coverage for a structure that is lo-
cated outside of an area having special flood hazards.’’. 
SEC. 511. CLARIFICATIONS; DEADLINE FOR APPROVAL OF 
CLAIMS. 
(a) RULES OF CONSTRUCTION.—Part C of chapter II 
of the National Flood Insurance Act of 1968 (42 U.S.C. 
4081 et seq.), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 1351. RULES OF CONSTRUCTION. 
‘‘(a) DEFINITION.—For purposes of this part, the term 
‘knowingly’ means having actual knowledge of or acting 
with deliberate ignorance of or reckless disregard for the 
prohibitions under this part. 
‘‘(b) ADMINISTRATIVE REMEDY.—A policyholder of a 
policy for flood insurance coverage made available under 
this title must exhaust all administrative remedies, includ-
ing submission of disputed claims to appeal under any ap-
peal process made available by the Administrator, prior to 
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