IB 
Union Calendar No. 389 
116TH CONGRESS 
2D SESSION 
H. R. 3779 
[Report No. 116–486] 
To amend the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act to allow the Administrator of the Federal Emergency Management 
Agency to provide capitalization grants to eligible entities to establish 
revolving funds to provide assistance to reduce disaster risks, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 16, 2019 
Ms. CRAIG (for herself, Mr. RODNEY DAVIS of Illinois, Ms. MCCOLLUM, Mr. 
CRAWFORD, Mr. KIND, and Mr. SMITH of Missouri) introduced the fol-
lowing bill; which was referred to the Committee on Transportation and 
Infrastructure 
SEPTEMBER 4, 2020 
Additional sponsors: Mr. RICHMOND, Ms. TITUS, Ms. FINKENAUER, Mr. 
PAPPAS, Miss GONZA´LEZ-COLO´N of Puerto Rico, Mr. GARAMENDI, Mr. 
GRAVES of Louisiana, and Mr. LIPINSKI 
SEPTEMBER 4, 2020 
Reported with an amendment; committed to the Committee of the Whole 
House on the State of the Union and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on July 16, 2019] 
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A BILL 
To amend the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act to allow the Administrator of the 
Federal Emergency Management Agency to provide cap-
italization grants to eligible entities to establish revolving 
funds to provide assistance to reduce disaster risks, and 
for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Resilience Revolving 
Loan Fund Act of 2019’’. 
SEC. 2. GRANTS TO ENTITIES FOR ESTABLISHMENT OF 
HAZARD 
MITIGATION 
REVOLVING 
LOAN 
FUNDS. 
Title II of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5131 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 205 GRANTS TO ENTITIES FOR ESTABLISHMENT OF 
HAZARD 
MITIGATION 
REVOLVING 
LOAN 
FUNDS. 
‘‘(a) GENERAL AUTHORITY.— 
‘‘(1) IN
GENERAL.—The Administrator may 
enter into agreements with eligible entities to make 
capitalization grants to such entities for the establish-
ment of hazard mitigation revolving loan funds (re-
ferred to in this section as ‘entity loan funds’) for 
providing funding assistance to local governments to 
carry out eligible projects under this section to reduce 
disaster risks for homeowners, businesses, nonprofit 
organizations, and communities in order to de-
crease— 
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‘‘(A) the loss of life and property; 
‘‘(B) the cost of insurance claims; and 
‘‘(C) Federal disaster payments. 
‘‘(2) AGREEMENTS.—Any agreement entered into 
under this section shall require the participating enti-
ty to— 
‘‘(A) comply with the requirements of this 
section; and 
‘‘(B) use accounting, audit, and fiscal pro-
cedures conforming to generally accepted ac-
counting standards. 
‘‘(b) APPLICATION.— 
‘‘(1) IN GENERAL.—To be eligible to receive a 
capitalization grant under this section, an eligible en-
tity shall submit to the Administrator an application 
that includes the following: 
‘‘(A) Project proposals comprised of local 
government hazard mitigation projects, on the 
condition that the entity provides public notice 
not less than 6 weeks prior to the submission of 
an application. 
‘‘(B) An assessment of recurring major dis-
aster vulnerabilities impacting the entity that 
demonstrates an escalating risk to life and prop-
erty. 
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‘‘(C) A description of how the hazard miti-
gation plan of the entity has or has not taken the 
vulnerabilities described in paragraph (2) into 
account. 
‘‘(D) A description about how the projects 
described in paragraph (1) could conform with 
the hazard mitigation plans of the entity and 
local governments. 
‘‘(E) A proposal of the systematic and re-
gional approach to achieve resilience in a vul-
nerable area, including impacts to river basins, 
river corridors, watersheds, estuaries, bays, coast-
al regions, micro-basins, micro-watersheds, eco-
systems, and areas at risk of earthquakes, 
tsunamis, droughts, and wildfires, including the 
wildland-urban interface. 
‘‘(2) TECHNICAL
ASSISTANCE.—The Adminis-
trator shall provide technical assistance to eligible en-
tities for applications under this section. 
‘‘(c) ENTITY LOAN FUND.— 
‘‘(1) ESTABLISHMENT OF FUND.—An entity that 
receives a capitalization grant under this section shall 
establish an entity loan fund that complies with the 
requirements of this subsection. 
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‘‘(2) FUND MANAGEMENT.—Except as provided 
in paragraph (3), an entity loan fund shall be ad-
ministered by the agency responsible for emergency 
management for such entity and shall include only— 
‘‘(A) funds provided by a capitalization 
grant under this section; 
‘‘(B) repayments of loans under this section 
to the entity loan fund; and 
‘‘(C) interest earned on amounts in the en-
tity loan fund. 
‘‘(3) ADMINISTRATION.—A participating entity 
may combine the financial administration of the enti-
ty loan fund of such entity with the financial admin-
istration of any other revolving fund established by 
such entity if the Administrator determines that— 
‘‘(A) the capitalization grant, entity share, 
repayments of loans, and interest earned on 
amounts in the entity loan fund are accounted 
for separately from other amounts in the revolv-
ing fund; and 
‘‘(B) the authority to establish assistance 
priorities and carry out oversight activities re-
mains in the control of the agency responsible for 
emergency management for the entity. 
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‘‘(4) ENTITY SHARE OF FUNDS.—On or before 
the date on which a participating entity receives a 
capitalization grant under this section, the entity 
shall deposit into the entity loan fund of such entity, 
an amount equal to not less than 10 percent of the 
amount of the capitalization grant. 
‘‘(d) APPORTIONMENT.— 
‘‘(1) IN GENERAL.—Except as otherwise provided 
by this subsection, the Administrator shall apportion 
funds made available to carry out this section to enti-
ties that have entered into an agreement under sub-
section (a)(2) in amounts as determined by the Ad-
ministrator. 
‘‘(2) RESERVATION
OF
FUNDS.—The Adminis-
trator shall reserve not more than 2.5 percent of the 
amount made available to carry out this section for— 
‘‘(A) administrative costs incurred in car-
rying out this section; and 
‘‘(B) providing technical assistance to par-
ticipating entities under subsection (b)(2). 
‘‘(3) PRIORITY.—In the apportionment of cap-
italization grants under this subsection, the Adminis-
trator shall give priority to entity applications under 
subsection (b) that— 
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‘‘(A) propose projects increasing resilience 
and reducing risk of harm to natural and built 
infrastructure; 
‘‘(B) involve a partnership between 2 or 
more eligible entities to carry out a project or 
similar projects; 
‘‘(C) take into account regional impacts of 
hazards on river basins, river corridors, micro- 
watersheds, macro-watersheds, estuaries, bays, 
coastal regions, and areas vulnerable to earth-
quake, drought, tsunamis and wildfire, including 
the wildland-urban interface; or 
‘‘(D) propose projects for the resilience of 
major economic sectors or critical national infra-
structure, including ports, global commodity 
supply chain assets (located within an entity or 
within the jurisdiction of local governments and 
tribal governments), capacity, power and water 
production and distribution centers, and bridges 
and waterways essential to interstate commerce. 
‘‘(e) USE OF FUNDS.— 
‘‘(1) TYPES OF ASSISTANCE.—Amounts deposited 
in an entity loan fund, including loan repayments 
and interest earned on such amounts, may be used— 
‘‘(A) to make loans, on the condition that— 
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‘‘(i) such loans are made at an interest 
rate of not more than 1.5 percent; 
‘‘(ii) annual principal and interest 
payments will commence not later than 1 
year after completion of any project and all 
loans will be fully amortized— 
‘‘(I) not later than 20 years after 
the date on which the project is com-
pleted; or 
‘‘(II) for projects in a low-income 
geographic area, not later than 30 
years after the date on which the 
projects is completed and not longer 
than the expected design life of the 
project; 
‘‘(iii) the local government receiving a 
loan establishes a dedicated source of rev-
enue for repayment of the loan; 
‘‘(iv) the local government receiving a 
loan has a hazard mitigation plan that has 
been approved by the participating entity; 
and 
‘‘(v) the entity loan fund will be cred-
ited with all payments of principal and in-
terest on all loans; 
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