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‘‘(h) LIMITATION ON FUNDING FOR MITIGATION AC-
TIVITIES FOR SEVERE REPETITIVE LOSS STRUCTURES.— 
The amount used pursuant to section 1310(a)(8) in any 
fiscal year may not exceed $40,000,000 and shall remain 
available until expended. 
‘‘(i) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) 
COMMUNITY.—The 
term 
‘community’ 
means— 
‘‘(A) a political subdivision that— 
‘‘(i) has zoning and building code ju-
risdiction over a particular area having 
special flood hazards, and 
‘‘(ii) is participating in the national 
flood insurance program; or 
‘‘(B) a political subdivision of a State, or 
other authority, that is designated by political 
subdivisions, all of which meet the requirements 
of subparagraph (A), to administer grants for 
mitigation activities for such political subdivi-
sions. 
‘‘(2) REPETITIVE LOSS STRUCTURE.—The term 
‘repetitive loss structure’ has the meaning given 
such term in section 1370. 
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‘‘(3) SEVERE REPETITIVE LOSS STRUCTURE.— 
The term ‘severe repetitive loss structure’ means a 
structure that— 
‘‘(A) is covered under a contract for flood 
insurance made available under this title; and 
‘‘(B) has incurred flood-related damage— 
‘‘(i) for which 4 or more separate 
claims payments have been made under 
flood insurance coverage under this title, 
with the amount of each such claim ex-
ceeding $15,000, and with the cumulative 
amount of such claims payments exceeding 
$60,000; or 
‘‘(ii) for which at least 2 separate 
claims payments have been made under 
such coverage, with the cumulative amount 
of such claims exceeding the value of the 
insured structure.’’. 
(b) ELIMINATION OF GRANTS PROGRAM FOR REPET-
ITIVE INSURANCE CLAIMS PROPERTIES.—Chapter I of 
the National Flood Insurance Act of 1968 is amended by 
striking section 1323 (42 U.S.C. 4030). 
(c) ELIMINATION OF PILOT PROGRAM FOR MITIGA-
TION OF SEVERE REPETITIVE LOSS PROPERTIES.—Chap-
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ter III of the National Flood Insurance Act of 1968 is 
amended by striking section 1361A (42 U.S.C. 4102a). 
(d) 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 paragraph (6), by inserting ‘‘and’’ after 
the semicolon; 
(2) in paragraph (7), by striking the semicolon 
and inserting a period; and 
(3) by striking paragraphs (8) and (9). 
(e) NATIONAL FLOOD MITIGATION FUND.—Section 
1367 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4104d) is amended— 
(1) in subsection (b)— 
(A) by striking paragraph (1) and insert-
ing the following new paragraph: 
‘‘(1) in each fiscal year, from the National 
Flood Insurance Fund in amounts not exceeding 
$90,000,000 to remain available until expended, of 
which— 
‘‘(A) not more than $40,000,000 shall be 
available pursuant to subsection (a) of this sec-
tion only for assistance described in section 
1366(a)(1); 
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‘‘(B) not more than $40,000,000 shall be 
available pursuant to subsection (a) of this sec-
tion only for assistance described in section 
1366(a)(2); and 
‘‘(C) not more than $10,000,000 shall be 
available pursuant to subsection (a) of this sec-
tion only for assistance described in section 
1366(a)(3).’’. 
(B) in paragraph (3), by striking ‘‘section 
1366(i)’’ and inserting ‘‘section 1366(e)’’; 
(2) in subsection (c), by striking ‘‘sections 1366 
and 1323’’ and inserting ‘‘section 1366’’; 
(3) by redesignating subsections (d) and (e) as 
subsections (f) and (g), respectively; and 
(4) by inserting after subsection (c) the fol-
lowing new subsections: 
‘‘(d) PROHIBITION ON OFFSETTING COLLECTIONS.— 
Notwithstanding any other provision of this title, amounts 
made available pursuant to this section shall not be sub-
ject to offsetting collections through premium rates for 
flood insurance coverage under this title. 
‘‘(e) CONTINUED AVAILABILITY
AND REALLOCA-
TION.—Any amounts made available pursuant to subpara-
graph (A), (B), or (C) of subsection (b)(1) that are not 
used in any fiscal year shall continue to be available for 
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the purposes specified in such subparagraph of subsection 
(b)(1) pursuant to which such amounts were made avail-
able, unless the Administrator determines that realloca-
tion of such unused amounts to meet demonstrated need 
for other mitigation activities under section 1366 is in the 
best interest of the National Flood Insurance Fund.’’. 
(f) INCREASED COST OF COMPLIANCE COVERAGE.— 
Section 1304(b)(4) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4011(b)(4)) is amended— 
(1) by striking subparagraph (B); and 
(2) by redesignating subparagraphs (C), (D), 
and (E) as subparagraphs (B), (C), and (D), respec-
tively. 
SEC. 12. NOTIFICATION TO HOMEOWNERS REGARDING 
MANDATORY PURCHASE REQUIREMENT AP-
PLICABILITY AND RATE PHASE-INS. 
Section 201 of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4105) is amended by adding at the end 
the following new subsection: 
‘‘(f) ANNUAL NOTIFICATION.—The Administrator, in 
consultation with affected communities, shall establish and 
carry out a plan to notify residents of areas having special 
flood hazards, on an annual basis— 
‘‘(1) that they reside in such an area; 
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‘‘(2) of the geographical boundaries of such 
area; 
‘‘(3) of whether section 1308(g) of the National 
Flood Insurance Act of 1968 applies to properties 
within such area; 
‘‘(4) of the provisions of section 102 requiring 
purchase of flood insurance coverage for properties 
located in such an area, including the date on which 
such provisions apply with respect to such area, tak-
ing into consideration section 102(i); and 
‘‘(5) of a general estimate of what similar 
homeowners in similar areas typically pay for flood 
insurance coverage, taking into consideration section 
1308(g) of the National Flood Insurance Act of 
1968.’’. 
SEC. 13. NOTIFICATION TO MEMBERS OF CONGRESS OF 
FLOOD MAP REVISIONS AND UPDATES. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101), as amended by the preceding pro-
visions of this Act, is further amended by adding at the 
end the following new subsection: 
‘‘(l) NOTIFICATION TO MEMBERS OF CONGRESS OF 
MAP MODERNIZATION.—Upon any revision or update of 
any floodplain area or flood-risk zone pursuant to sub-
section (f), any decision pursuant to subsection (f)(1) that 
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such revision or update is necessary, any issuance of pre-
liminary maps for such revision or updating, or any other 
significant action relating to any such revision or update, 
the Administrator shall notify the Senators for each State 
affected, and each Member of the House of Representa-
tives for each congressional district affected, by such revi-
sion or update in writing of the action taken.’’. 
SEC. 14. NOTIFICATION AND APPEAL OF MAP CHANGES; 
NOTIFICATION TO COMMUNITIES OF ESTAB-
LISHMENT OF FLOOD ELEVATIONS. 
Section 1363 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4104) is amended by striking the section 
designation and all that follows through the end of sub-
section (a) and inserting the following: 
‘‘SEC. 1363. (a) In establishing projected flood ele-
vations for land use purposes with respect to any commu-
nity pursuant to section 1361, the Director shall first pro-
pose such determinations— 
‘‘(1) by providing the chief executive officer of 
each community affected by the proposed elevations, 
by certified mail, with a return receipt requested, 
notice of the elevations, including a copy of the maps 
for the elevations for such community and a state-
ment explaining the process under this section to ap-
peal for changes in such elevations; 
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‘‘(2) by causing notice of such elevations to be 
published in the Federal Register, which notice shall 
include information sufficient to identify the ele-
vation determinations and the communities affected, 
information explaining how to obtain copies of the 
elevations, and a statement explaining the process 
under this section to appeal for changes in the ele-
vations; 
‘‘(3) by publishing in a prominent local news-
paper the elevations, a description of the appeals 
process for flood determinations, and the mailing ad-
dress and telephone number of a person the owner 
may contact for more information or to initiate an 
appeal; and 
‘‘(4) by providing written notification, by first 
class mail, to each owner of real property affected by 
the proposed elevations of— 
‘‘(A) the status of such property, both 
prior to and after the effective date of the pro-
posed determination, with respect to flood zone 
and flood insurance requirements under this 
Act and the Flood Disaster Protection Act of 
1973; 
‘‘(B) the process under this section to ap-
peal a flood elevation determination; and 
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‘‘(C) the mailing address and phone num-
ber of a person the owner may contact for more 
information or to initiate an appeal.’’. 
SEC. 15. NOTIFICATION TO TENANTS OF AVAILABILITY OF 
CONTENTS INSURANCE. 
The National Flood Insurance Act of 1968 is amend-
ed by inserting after section 1308 (42 U.S.C. 4015) the 
following new section: 
‘‘SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY 
OF CONTENTS INSURANCE. 
‘‘(a) IN GENERAL.—The Administrator shall, upon 
entering into a contract for flood insurance coverage under 
this title for any property— 
‘‘(1) provide to the insured sufficient copies of 
the notice developed pursuant to subsection (b); and 
‘‘(2) require the insured to provide a copy of 
the notice, or otherwise provide notification of the 
information under subsection (b) in the manner that 
the manager or landlord deems most appropriate, to 
each such tenant and to each new tenant upon com-
mencement of such a tenancy. 
‘‘(b) NOTICE.—Notice to a tenant of a property in 
accordance with this subsection is written notice that 
clearly informs a tenant— 
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‘‘(1) whether the property is located in an area 
having special flood hazards; 
‘‘(2) that flood insurance coverage is available 
under the national flood insurance program under 
this title for contents of the unit or structure leased 
by the tenant; 
‘‘(3) of the maximum amount of such coverage 
for contents available under this title at that time; 
and 
‘‘(4) of where to obtain information regarding 
how to obtain such coverage, including a telephone 
number, mailing address, and Internet site of the 
Administrator where such information is available.’’. 
SEC. 16. NOTIFICATION TO POLICY HOLDERS REGARDING 
DIRECT MANAGEMENT OF POLICY BY FEMA. 
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: 
‘‘SEC. 1349. NOTIFICATION TO POLICY HOLDERS REGARD-
ING DIRECT MANAGEMENT OF POLICY BY 
FEMA. 
‘‘(a) NOTIFICATION.—Not later than 60 days before 
the date on which a transferred flood insurance policy ex-
pires, and annually thereafter until such time as the Fed-
eral Emergency Management Agency is no longer directly 
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administering such policy, the Administrator shall notify 
the holder of such policy that— 
‘‘(1) the Federal Emergency Management 
Agency is directly administering the policy; 
‘‘(2) such holder may purchase flood insurance 
that is directly administered by an insurance com-
pany; and 
‘‘(3) purchasing flood insurance offered under 
the National Flood Insurance Program that is di-
rectly administered by an insurance company will 
not alter the coverage provided or the premiums 
charged to such holder that otherwise would be pro-
vided or charged if the policy was directly adminis-
tered by the Federal Emergency Management Agen-
cy. 
‘‘(b) DEFINITION.—In this section, the term ‘trans-
ferred flood insurance policy’ means a flood insurance pol-
icy that— 
‘‘(1) was directly administered by an insurance 
company at the time the policy was originally pur-
chased by the policy holder; and 
‘‘(2) at the time of renewal of the policy, direct 
administration of the policy was or will be trans-
ferred to the Federal Emergency Management Agen-
cy.’’. 
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SEC. 17. NOTICE OF AVAILABILITY OF FLOOD INSURANCE 
AND ESCROW IN RESPA GOOD FAITH ESTI-
MATE. 
Subsection (c) of section 5 of the Real Estate Settle-
ment Procedures Act of 1974 (12 U.S.C. 2604(c)) is 
amended by adding at the end the following new sentence: 
‘‘Each such good faith estimate shall include the following 
conspicuous statements and information: (1) that flood in-
surance coverage for residential real estate is generally 
available under the national flood insurance program 
whether or not the real estate is located in an area having 
special flood hazards and that, to obtain such coverage, 
a home owner or purchaser should contact the national 
flood insurance program; (2) a telephone number and a 
location on the Internet by which a home owner or pur-
chaser can contact the national flood insurance program; 
and (3) that the escrowing of flood insurance payments 
is required for many loans under section 102(d) of the 
Flood Disaster Protection Act of 1973, and may be a con-
venient and available option with respect to other loans.’’. 
SEC. 18. REIMBURSEMENT FOR COSTS INCURRED BY 
HOMEOWNERS AND COMMUNITIES OBTAIN-
ING LETTERS OF MAP AMENDMENT OR REVI-
SION. 
(a) IN GENERAL.—Section 1360 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4101), as amend-
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ed by the preceding provisions of this Act, is further 
amended by adding at the end the following new sub-
section: 
‘‘(m) REIMBURSEMENT.— 
‘‘(1) 
REQUIREMENT
UPON
BONA
FIDE 
ERROR.—If an owner of any property located in an 
area described in section 102(i)(3) of the Flood Dis-
aster Protection Act of 1973, or a community in 
which such a property is located, obtains a letter of 
map amendment, or a letter of map revision, due to 
a bona fide error on the part of the Administrator 
of the Federal Emergency Management Agency, the 
Administrator shall reimburse such owner, or such 
entity or jurisdiction acting on such owner’s behalf, 
or such community, as applicable, for any reasonable 
costs incurred in obtaining such letter. 
‘‘(2) REASONABLE COSTS.—The Administrator 
shall, by regulation or notice, determine a reasonable 
amount of costs to be reimbursed under paragraph 
(1), except that such costs shall not include legal or 
attorneys fees. In determining the reasonableness of 
costs, the Administrator shall only consider the ac-
tual costs to the owner or community, as applicable, 
of utilizing the services of an engineer, surveyor, or 
similar services.’’. 
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(b) REGULATIONS.—Not later than 90 days after the 
date of the enactment of this Act, the Administrator of 
the Federal Emergency Management Agency shall issue 
the regulations or notice required under section 
1360(m)(2) of the National Flood Insurance Act of 1968, 
as added by the amendment made by subsection (a) of 
this section. 
SEC. 19. ENHANCED COMMUNICATION WITH CERTAIN COM-
MUNITIES DURING MAP UPDATING PROCESS. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101), as amended by the preceding pro-
visions of this Act, is further amended by adding at the 
end the following new subsection: 
‘‘(n) ENHANCED COMMUNICATION WITH CERTAIN 
COMMUNITIES DURING MAP UPDATING PROCESS.—In 
updating flood insurance maps under this section, the Ad-
ministrator shall communicate with communities located 
in areas where flood insurance rate maps have not been 
updated in 20 years or more and the appropriate State 
emergency agencies to resolve outstanding issues, provide 
technical assistance, and disseminate all necessary infor-
mation to reduce the prevalence of outdated maps in flood- 
prone areas.’’. 
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SEC. 20. NOTIFICATION TO RESIDENTS NEWLY INCLUDED 
IN FLOOD HAZARD AREAS. 
Section 1360 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4101), as amended by the preceding pro-
visions of this Act, is further amended by adding at the 
end the following new subsection: 
‘‘(o) NOTIFICATION
TO
RESIDENTS
NEWLY
IN-
CLUDED IN FLOOD HAZARD AREA.—In revising or updat-
ing any areas having special flood hazards, the Adminis-
trator shall provide to each owner of a property to be 
newly included in such a special flood hazard area, at the 
time of issuance of such proposed revised or updated flood 
insurance maps, a copy of the proposed revised or updated 
flood insurance maps together with information regarding 
the appeals process under section 1363 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104).’’. 
SEC. 21. TREATMENT OF SWIMMING POOL ENCLOSURES 
OUTSIDE OF HURRICANE SEASON. 
Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4001 et seq.) is amended by adding at 
the end the following new section: 
‘‘SEC. 1325. TREATMENT OF SWIMMING POOL ENCLOSURES 
OUTSIDE OF HURRICANE SEASON. 
‘‘In the case of any property that is otherwise in com-
pliance with the coverage and building requirements of the 
national flood insurance program, the presence of an en-
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closed swimming pool located at ground level or in the 
space below the lowest floor of a building after November 
30 and before June 1 of any year shall have no effect on 
the terms of coverage or the ability to receive coverage 
for such building under the national flood insurance pro-
gram established pursuant to this title, if the pool is en-
closed with non-supporting breakaway walls.’’. 
SEC. 22. INFORMATION REGARDING MULTIPLE PERILS 
CLAIMS. 
Section 1345 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081) is amended by adding at the end 
the following new subsection: 
‘‘(d) INFORMATION REGARDING MULTIPLE PERILS 
CLAIMS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
if an insured having flood insurance coverage under 
a policy issued under the program under this title by 
the Administrator or a company, insurer, or entity 
offering flood insurance coverage under such pro-
gram (in this subsection referred to as a ‘partici-
pating company’) has wind or other homeowners 
coverage from any company, insurer, or other entity 
covering property covered by such flood insurance, in 
the case of damage to such property that may have 
been caused by flood or by wind, the Administrator 
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SEC. 23. FEMA AUTHORITY TO REJECT TRANSFER OF POLI-
CIES. 
Section 1345 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4081) is amended by adding at the end 
the following new subsection: 
‘‘(e) FEMA AUTHORITY TO REJECT TRANSFER OF 
POLICIES.—Notwithstanding any other provision of this 
Act, the Administrator may, at the discretion of the Ad-
ministrator, refuse to accept the transfer of the adminis-
tration of policies for coverage under the flood insurance 
program under this title that are written and administered 
by any insurance company or other insurer, or any insur-
ance agent or broker.’’. 
SEC. 24. APPEALS. 
(a) TELEVISION AND RADIO ANNOUNCEMENT.—Sec-
tion 1363 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4104) is amended— 
(1) in subsection (a), by inserting after ‘‘deter-
minations’’ by inserting the following: ‘‘by notifying 
a local television and radio station,’’; and 
(2) in the first sentence of subsection (b), by in-
serting before the period at the end the following: 
‘‘and shall notify a local television and radio station 
at least once during the same 10-day period’’. 
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(b) EXTENSION OF APPEALS PERIOD.—Subsection 
(b) of section 1363 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4104(b)) is amended— 
(1) by striking ‘‘(b) The Director’’ and insert-
ing ‘‘(b)(1) The Administrator’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) The Administrator shall grant an extension of 
the 90-day period for appeals referred to in paragraph (1) 
for 90 additional days if an affected community certifies 
to the Administrator, after the expiration of at least 60 
days of such period, that the community— 
‘‘(A) believes there are property owners or les-
sees in the community who are unaware of such pe-
riod for appeals; and 
‘‘(B) will utilize the extension under this para-
graph to notify property owners or lessees who are 
affected by the proposed flood elevation determina-
tions of the period for appeals and the opportunity 
to appeal the determinations proposed by the Ad-
ministrator.’’. 
(c) APPLICABILITY.—The amendments made by sub-
sections (a) and (b) shall apply with respect to any flood 
elevation determination for any area in a community that 
has not, as of the date of the enactment of this Act, been 
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issued a Letter of Final Determination for such deter-
mination under the flood insurance map modernization 
process. 
SEC. 25. RESERVE FUND. 
(a) ESTABLISHMENT.—Chapter I of the National 
Flood Insurance Act of 1968 is amended by inserting after 
section 1310 (42 U.S.C. 4017) the following new section: 
‘‘SEC. 1310A. RESERVE FUND. 
‘‘(a) ESTABLISHMENT OF RESERVE FUND.—In car-
rying out the flood insurance program authorized by this 
title, the Administrator shall establish in the Treasury of 
the United States a National Flood Insurance Reserve 
Fund (in this section referred to as the ‘Reserve Fund’) 
which shall— 
‘‘(1) be an account separate from any other ac-
counts or funds available to the Administrator; and 
‘‘(2) be available for meeting the expected fu-
ture obligations of the flood insurance program. 
‘‘(b) RESERVE RATIO.—Subject to the phase-in re-
quirements under subsection (d), the Reserve Fund shall 
maintain a balance equal to— 
‘‘(1) 1 percent of the sum of the total potential 
loss exposure of all outstanding flood insurance poli-
cies in force in the prior fiscal year; or 
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‘‘(2) such higher percentage as the Adminis-
trator determines to be appropriate, taking into con-
sideration any circumstance that may raise a signifi-
cant risk of substantial future losses to the Reserve 
Fund. 
‘‘(c) MAINTENANCE OF RESERVE RATIO.— 
‘‘(1) IN
GENERAL.—The Administrator shall 
have the authority to establish, increase, or decrease 
the amount of aggregate annual insurance premiums 
to be collected for any fiscal year necessary— 
‘‘(A) to maintain the reserve ratio required 
under subsection (b); and 
‘‘(B) to achieve such reserve ratio, if the 
actual balance of such reserve is below the 
amount required under subsection (b). 
‘‘(2) CONSIDERATIONS.—In exercising the au-
thority under paragraph (1), the Administrator shall 
consider— 
‘‘(A) the expected operating expenses of 
the Reserve Fund; 
‘‘(B) the insurance loss expenditures under 
the flood insurance program; 
‘‘(C) any investment income generated 
under the flood insurance program; and 
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‘‘(D) any other factor that the Adminis-
trator determines appropriate. 
‘‘(3) LIMITATIONS.—In exercising the authority 
under paragraph (1), the Administrator shall be 
subject to all other provisions of this Act, including 
any provisions relating to chargeable premium rates 
and annual increases of such rates. 
‘‘(d) PHASE-IN REQUIREMENTS.—The phase-in re-
quirements under this subsection are as follows: 
‘‘(1) IN
GENERAL.—Beginning in fiscal year 
2012 and not ending until the fiscal year in which 
the ratio required under subsection (b) is achieved, 
in each such fiscal year the Administrator shall 
place in the Reserve Fund an amount equal to not 
less than 7.5 percent of the reserve ratio required 
under subsection (b). 
‘‘(2) AMOUNT SATISFIED.—As soon as the ratio 
required under subsection (b) is achieved, and except 
as provided in paragraph (3), the Administrator 
shall not be required to set aside any amounts for 
the Reserve Fund. 
‘‘(3) EXCEPTION.—If at any time after the 
ratio required under subsection (b) is achieved, the 
Reserve Fund falls below the required ratio under 
subsection (b), the Administrator shall place in the 
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Reserve Fund for that fiscal year an amount equal 
to not less than 7.5 percent of the reserve ratio re-
quired under subsection (b). 
‘‘(e) LIMITATION ON RESERVE RATIO.—In any given 
fiscal year, if the Administrator determines that the re-
serve ratio required under subsection (b) cannot be 
achieved, the Administrator shall submit a report to the 
Congress that— 
‘‘(1) describes and details the specific concerns 
of the Administrator regarding such consequences; 
‘‘(2) demonstrates how such consequences 
would harm the long-term financial soundness of the 
flood insurance program; and 
‘‘(3) indicates the maximum attainable reserve 
ratio for that particular fiscal year. 
‘‘(f) AVAILABILITY OF AMOUNTS.—The reserve ratio 
requirements under subsection (b) and the phase-in re-
quirements under subsection (d) shall be subject to the 
availability of amounts in the National Flood Insurance 
Fund for transfer under section 1310(a)(10), as provided 
in section 1310(f).’’. 
(b) FUNDING.—Subsection (a) of section 1310 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 
4017(a)) is amended— 
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(1) in paragraph (8), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (9), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(10) for transfers to the National Flood Insur-
ance Reserve Fund under section 1310A, in accord-
ance with such section.’’. 
SEC. 26. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUT-
REACH ACTIVITIES AND COMMUNITY BUILD-
ING CODE ADMINISTRATION GRANTS. 
Section 105(a) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5305(a)) is amended— 
(1) in paragraph (24), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (25), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(26) supplementing existing State or local 
funding for administration of building code enforce-
ment by local building code enforcement depart-
ments, including for increasing staffing, providing 
staff training, increasing staff competence and pro-
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‘‘(iii) in the case of a building code 
enforcement department serving an area 
with a population of less than 20,000, 
equal to not less than 12.5 percent of the 
total amount of any funds made available 
under this title that are used under this 
paragraph; 
except that the Secretary may waive the match-
ing fund requirements under this subparagraph, 
in whole or in part, based upon the level of eco-
nomic distress of the jurisdiction in which is lo-
cated the local building code enforcement de-
partment that is using amounts for purposes 
under this paragraph, and shall waive such 
matching fund requirements in whole for any 
recipient jurisdiction that has dedicated all 
building code permitting fees to the conduct of 
local building code enforcement; and 
‘‘(B) any building code enforcement de-
partment using funds made available under this 
title for purposes under this paragraph shall 
empanel a code administration and enforcement 
team consisting of at least 1 full-time building 
code enforcement officer, a city planner, and a 
health planner or similar officer; and 
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‘‘(27) provision of assistance to local govern-
mental agencies responsible for floodplain manage-
ment activities (including such agencies of Indians 
tribes, as such term is defined in section 4 of the 
Native American Housing Assistance and Self-De-
termination Act of 1996 (25 U.S.C. 4103)) in com-
munities that participate in the national flood insur-
ance program under the National Flood Insurance 
Act of 1968 (42 U.S.C. 4001 et seq.), only for car-
rying out outreach activities to encourage and facili-
tate the purchase of flood insurance protection 
under such Act by owners and renters of properties 
in such communities and to promote educational ac-
tivities that increase awareness of flood risk reduc-
tion; except that— 
‘‘(A) amounts used as provided under this 
paragraph shall be used only for activities de-
signed to— 
‘‘(i) identify owners and renters of 
properties in communities that participate 
in the national flood insurance program, 
including owners of residential and com-
mercial properties; 
‘‘(ii) notify such owners and renters 
when their properties become included in, 
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or when they are excluded from, an area 
having special flood hazards and the effect 
of such inclusion or exclusion on the appli-
cability of the mandatory flood insurance 
purchase requirement under section 102 of 
the Flood Disaster Protection Act of 1973 
(42 U.S.C. 4012a) to such properties; 
‘‘(iii) educate such owners and renters 
regarding the flood risk and reduction of 
this risk in their community, including the 
continued flood risks to areas that are no 
longer subject to the flood insurance man-
datory purchase requirement; 
‘‘(iv) educate such owners and renters 
regarding the benefits and costs of main-
taining or acquiring flood insurance, in-
cluding, where applicable, lower-cost pre-
ferred risk policies under this title for such 
properties and the contents of such prop-
erties; 
‘‘(v) encourage such owners and rent-
ers to maintain or acquire such coverage; 
‘‘(vi) notify such owners of where to 
obtain information regarding how to obtain 
such coverage, including a telephone num-
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ber, mailing address, and Internet site of 
the Administrator of the Federal Emer-
gency Management Agency (in this para-
graph referred to as the ‘Administrator’) 
where such information is available; and 
‘‘(vii) educate local real estate agents 
in communities participating in the na-
tional flood insurance program regarding 
the program and the availability of cov-
erage under the program for owners and 
renters of properties in such communities, 
and establish coordination and liaisons 
with such real estate agents to facilitate 
purchase of coverage under the National 
Flood Insurance Act of 1968 and increase 
awareness of flood risk reduction; 
‘‘(B) in any fiscal year, a local govern-
mental agency may not use an amount under 
this paragraph that exceeds 3 times the amount 
that the agency certifies, as the Secretary, in 
consultation with the Administrator, shall re-
quire, that the agency will contribute from non- 
Federal funds to be used with such amounts 
used under this paragraph only for carrying out 
activities described in subparagraph (A); and 
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for purposes of this subparagraph, the term 
‘non-Federal funds’ includes State or local gov-
ernment agency amounts, in-kind contributions, 
any salary paid to staff to carry out the eligible 
activities of the local governmental agency in-
volved, the value of the time and services con-
tributed by volunteers to carry out such services 
(at a rate determined by the Secretary), and 
the value of any donated material or building 
and the value of any lease on a building; 
‘‘(C) a local governmental agency that uses 
amounts as provided under this paragraph may 
coordinate or contract with other agencies and 
entities having particular capacities, specialties, 
or experience with respect to certain popu-
lations or constituencies, including elderly or 
disabled families or persons, to carry out activi-
ties described in subparagraph (A) with respect 
to such populations or constituencies; and 
‘‘(D) each local government agency that 
uses amounts as provided under this paragraph 
shall submit a report to the Secretary and the 
Administrator, not later than 12 months after 
such amounts are first received, which shall in-
clude such information as the Secretary and the 
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Administrator jointly consider appropriate to 
describe the activities conducted using such 
amounts and the effect of such activities on the 
retention or acquisition of flood insurance cov-
erage.’’. 
SEC. 27. TECHNICAL CORRECTIONS. 
(a) FLOOD DISASTER PROTECTION ACT OF 1973.— 
The Flood Disaster Protection Act of 1973 (42 U.S.C. 
4002 et seq.) is amended— 
(1) by striking ‘‘Director’’ each place such term 
appears, except in section 102(f)(3) (42 U.S.C. 
4012a(f)(3)), and inserting ‘‘Administrator’’; and 
(2) in section 201(b) (42 U.S.C. 4105(b)), by 
striking ‘‘Director’s’’ and inserting ‘‘Administra-
tor’s’’. 
(b) NATIONAL FLOOD INSURANCE ACT OF 1968.— 
The National Flood Insurance Act of 1968 (42 U.S.C. 
4001 et seq.) is amended— 
(1) by striking ‘‘Director’’ each place such term 
appears and inserting ‘‘Administrator’’; and 
(2) in section 1363 (42 U.S.C. 4104), by strik-
ing ‘‘Director’s’’ each place such term appears and 
inserting ‘‘Administrator’s’’. 
(c) FEDERAL FLOOD INSURANCE ACT OF 1956.— 
Section 15(e) of the Federal Flood Insurance Act of 1956 
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(42 U.S.C. 2414(e)) is amended by striking ‘‘Director’’ 
each place such term appears and inserting ‘‘Adminis-
trator’’. 
SEC. 28. REQUIRING COMPETITION FOR NATIONAL FLOOD 
INSURANCE PROGRAM POLICIES. 
(a) REPORT.—Not later than the expiration of the 
90-day period beginning upon the date of the enactment 
of this Act, the Administrator of the Federal Emergency 
Management Agency, in consultation with insurance com-
panies, insurance agents and other organizations with 
which the Administrator has contracted, shall submit to 
the Congress a report describing procedures and policies 
that the Administrator shall implement to limit the per-
centage of policies for flood insurance coverage under the 
national flood insurance program that are directly man-
aged by the Agency to not more than 10 percent of the 
aggregate number of flood insurance policies in force 
under such program. 
(b) IMPLEMENTATION.—Upon submission of the re-
port under subsection (a) to the Congress, the Adminis-
trator shall implement the policies and procedures de-
scribed in the report. The Administrator shall, not later 
than the expiration of the 12-month period beginning 
upon submission of such report, reduce the number of 
policies for flood insurance coverage that are directly man-
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aged by the Agency, or by the Agency’s direct servicing 
contractor that is not an insurer, to not more than 10 
percent of the aggregate number of flood insurance poli-
cies in force as of the expiration of such 12-month period. 
(c) CONTINUATION OF CURRENT AGENT RELATION-
SHIPS.—In carrying out subsection (b), the Administrator 
shall ensure that— 
(1) agents selling or servicing policies described 
in such subsection are not prevented from con-
tinuing to sell or service such policies; and 
(2) insurance companies are not prevented from 
waiving any limitation such companies could other-
wise enforce to limit any such activity. 
SEC. 29. STUDIES OF VOLUNTARY COMMUNITY-BASED 
FLOOD INSURANCE OPTIONS. 
(a) STUDIES.—The Administrator of the Federal 
Emergency Management Agency and the Comptroller 
General of the United States shall each conduct a separate 
study to assess options, methods, and strategies for offer-
ing voluntary community-based flood insurance policy op-
tions and incorporating such options into the national 
flood insurance program. Such studies shall take into con-
sideration and analyze how the policy options would affect 
communities having varying economic bases, geographic 
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locations, flood hazard characteristics or classifications, 
and flood management approaches. 
(b) REPORTS.—Not later than the expiration of the 
18-month period beginning on the date of the enactment 
of this Act, the Administrator of the Federal Emergency 
Management Agency and the Comptroller General of the 
United States shall each submit a report to the Committee 
on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate on the results and conclusions of the study 
such agency conducted under subsection (a), and each 
such report shall include recommendations for the best 
manner to incorporate voluntary community-based flood 
insurance options into the national flood insurance pro-
gram and for a strategy to implement such options that 
would encourage communities to undertake flood mitiga-
tion activities. 
SEC. 30. REPORT ON INCLUSION OF BUILDING CODES IN 
FLOODPLAIN MANAGEMENT CRITERIA. 
Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the 
Administrator of the Federal Emergency Management 
Agency shall conduct a study and submit a report to the 
Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
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Urban Affairs of the Senate regarding the impact, effec-
tiveness, and feasibility of amending section 1361 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4102) 
to include widely used and nationally recognized building 
codes as part of the floodplain management criteria devel-
oped under such section, and shall determine— 
(1) the regulatory, financial, and economic im-
pacts of such a building code requirement on home-
owners, States and local communities, local land use 
policies, and the Federal Emergency Management 
Agency; 
(2) the resources required of State and local 
communities to administer and enforce such a build-
ing code requirement; 
(3) the effectiveness of such a building code re-
quirement in reducing flood-related damage to build-
ings and contents; 
(4) the impact of such a building code require-
ment on the actuarial soundness of the National 
Flood Insurance Program; 
(5) the effectiveness of nationally recognized 
codes in allowing innovative materials and systems 
for flood-resistant construction; 
(6) the feasibility and effectiveness of providing 
an incentive in lower premium rates for flood insur-
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ance coverage under such Act for structures meeting 
whichever of such widely used and nationally recog-
nized building code or any applicable local building 
code provides greater protection from flood damage; 
(7) the impact of such a building code require-
ment on rural communities with different building 
code challenges than more urban environments; and 
(8) the impact of such a building code require-
ment on Indian reservations. 
SEC. 31. STUDY ON GRADUATED RISK. 
(a) STUDY.—The National Academy of Sciences shall 
conduct a study exploring methods for understanding 
graduated risk behind levees and the associated land de-
velopment, insurance, and risk communication dimensions, 
which shall— 
(1) research, review, and recommend current 
best practices for estimating direct annualized flood 
losses behind levees for residential and commercial 
structures; 
(2) rank such practices based on their best 
value, balancing cost, scientific integrity, and the in-
herent uncertainties associated with all aspects of 
the loss estimate, including geotechnical engineering, 
flood frequency estimates, economic value, and direct 
damages; 
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(3) research, review, and identify current best 
floodplain management and land use practices be-
hind levees that effectively balance social, economic, 
and environmental considerations as part of an over-
all flood risk management strategy; 
(4) identify examples where such practices have 
proven effective and recommend methods and proc-
esses by which they could be applied more broadly 
across the United States, given the variety of dif-
ferent flood risks, State and local legal frameworks, 
and evolving judicial opinions; 
(5) research, review, and identify a variety of 
flood insurance pricing options for flood hazards be-
hind levees which are actuarially sound and based on 
the flood risk data developed using the top three 
best value approaches identified pursuant to para-
graph (1); 
(6) evaluate and recommend methods to reduce 
insurance costs through creative arrangements be-
tween insureds and insurers while keeping a clear 
accounting of how much financial risk is being borne 
by various parties such that the entire risk is ac-
counted for, including establishment of explicit limits 
on disaster aid or other assistance in the event of a 
flood; and 
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