115TH CONGRESS 
1ST SESSION H. R. 2874 
AN ACT 
To achieve reforms to improve the financial stability of the 
National Flood Insurance Program, to enhance the devel-
opment of more accurate estimates of flood risk through 
new technology and better maps, to increase the role 
of private markets in the management of flood insurance 
risks, and to provide for alternative methods to insure 
against flood peril, 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 
‘‘21st Century Flood Reform Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—POLICYHOLDER PROTECTIONS AND INFORMATION 
Sec. 101. Extension of National Flood Insurance Program. 
Sec. 102. Annual limitation on premium increases. 
Sec. 103. Flood insurance affordability program. 
Sec. 104. Disclosure of premium methodology. 
Sec. 105. Consideration of coastal and inland locations in premium rates. 
Sec. 106. Monthly installment payment of premiums. 
Sec. 107. Enhanced clear communication of flood risks. 
Sec. 108. Availability of flood insurance information upon request. 
Sec. 109. Disclosure of flood risk information upon transfer of property. 
Sec. 110. Voluntary community-based flood insurance pilot program. 
Sec. 111. Use of replacement cost in determining premium rates. 
Sec. 112. Cap on premiums. 
Sec. 113. Premium rates for certain mitigated properties. 
Sec. 114. Study of flood insurance coverage for units in cooperative housing. 
Sec. 115. Pilot program for properties with preexisting conditions. 
Sec. 116. Federal Flood Insurance Advisory Committee. 
Sec. 117. Interagency guidance on compliance. 
Sec. 118. GAO study of claims adjustment practices. 
Sec. 119. GAO study of flood insurance coverage treatment of earth movement. 
Sec. 120. Definitions. 
TITLE II—INCREASING CONSUMER CHOICE THROUGH PRIVATE 
MARKET DEVELOPMENT 
Sec. 201. Private flood insurance. 
Sec. 202. Opt-out of mandatory coverage requirement for commercial prop-
erties. 
Sec. 203. Elimination of non-compete requirement. 
Sec. 204. Public availability of program information. 
Sec. 205. Refund of premiums upon cancellation of policy because of replace-
ment with private flood insurance. 
Sec. 206. GAO study of flood damage savings accounts. 
Sec. 207. Demonstration program for flood damage savings accounts. 
TITLE III—MAPPING FAIRNESS 
Sec. 301. Use of other risk assessment tools in determining premium rates.
Sec. 302. Appeals regarding existing flood maps. 
Sec. 303. Appeals and publication of projected special flood hazard areas. 
Sec. 304. Communication and outreach regarding map changes. 
Sec. 305. Sharing and use of maps and data. 
Sec. 306. Community flood maps. 
TITLE IV—PROTECTING CONSUMERS AND INDIVIDUALS 
THROUGH IMPROVED MITIGATION 
Sec. 401. Provision of Community Rating System premium credits to maximum 
number of communities practicable. 
Sec. 402. Community accountability for repetitively flooded areas. 
Sec. 403. Increased cost of compliance coverage. 
TITLE V—PROGRAM INTEGRITY 
Sec. 501. Independent actuarial review. 
Sec. 502. Adjustments to homeowner flood insurance affordability surcharge. 
Sec. 503. National Flood Insurance Reserve Fund compliance. 
Sec. 504. Designation and treatment of multiple-loss properties. 
Sec. 505. Elimination of coverage for properties with excessive lifetime claims. 
Sec. 506. Pay for performance and streamlining costs and reimbursement. 
Sec. 507. Enforcement of mandatory purchase requirements. 
Sec. 508. Satisfaction of mandatory purchase requirement in States allowing 
all-perils policies. 
Sec. 509. Flood insurance purchase requirements. 
Sec. 510. Clarifications; deadline for approval of claims. 
Sec. 511. Risk transfer requirement. 
Sec. 512. GAO study of simplification of National Flood Insurance Program. 
Sec. 513. GAO study on enforcement of mandatory purchase requirements. 
TITLE VI—ADMINISTRATIVE REFORMS 
Sec. 601. Penalties for fraud and false statements in the National Flood Insur-
ance Program. 
Sec. 602. Enhanced policyholder appeals process rights. 
Sec. 603. Deadline for approval of claims. 
Sec. 604. Litigation process oversight and reform. 
Sec. 605. Prohibition on hiring disbarred attorneys. 
Sec. 606. Technical assistance reports. 
Sec. 607. Improved disclosure requirement for standard flood insurance poli-
cies. 
Sec. 608. Reserve Fund amounts. 
Sec. 609. Sufficient staffing for Office of Flood Insurance Advocate. 
Sec. 610. Limited exemption for disaster or catastrophe claims adjusters.
TITLE I—POLICYHOLDER PRO-
TECTIONS AND INFORMATION 
SEC. 101. EXTENSION OF NATIONAL FLOOD INSURANCE 
PROGRAM. 
(a) FINANCING.—Section 1309(a) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) is 
amended by striking ‘‘September 30, 2017’’ and inserting 
‘‘September 30, 2022’’. 
(b) PROGRAM EXPIRATION.—Section 1319 of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 4026) is 
amended by striking ‘‘September 30, 2017’’ and inserting 
‘‘September 30, 2022’’. 
SEC. 102. ANNUAL LIMITATION ON PREMIUM INCREASES. 
Section 1308(e) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015(e)) is amended— 
(1) in paragraph (1), by striking ‘‘18 percent’’ 
and inserting ‘‘15 percent’’; and 
(2) in paragraph (2)— 
(A) by striking ‘‘5 percent’’ and inserting 
‘‘6.5 percent’’; and 
(B) by inserting before the semicolon at 
the end the following: ‘‘, except that (A) during 
the 12-month period on the date of the enact-
ment of the 21st Century Flood Reform Act 
this paragraph shall be applied by substituting
‘5 percent’ for ‘6.5 percent’, (B) during the 12- 
month period beginning upon the expiration of 
the period referred to in clause (A), this para-
graph shall be applied by substituting ‘5.5 per-
cent’ for ‘6.5 percent’, and (C) during the 12- 
month period beginning upon the expiration of 
the period referred to in clause (B), this para-
graph shall be applied by substituting ‘6.0 per-
cent’ for ‘6.5 percent’ ’’. 
SEC. 103. FLOOD INSURANCE AFFORDABILITY PROGRAM. 
Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.) is amended by adding at 
the end the following new section: 
‘‘SEC. 1326. FLOOD INSURANCE AFFORDABILITY PROGRAM. 
‘‘(a) AUTHORITY.—The Administrator shall carry out 
a program under this section to provide financial assist-
ance, through State programs carried out by participating 
States, for eligible low-income households residing in eligi-
ble properties to purchase policies for flood insurance cov-
erage made available under this title. 
‘‘(b) PARTICIPATION.—Participation in the program 
under this section shall be voluntary on the part of a State 
or consortium of States. 
‘‘(c) STATE ADMINISTRATION.—Each participating 
State shall delegate to a State agency or nonprofit organi-