zation the responsibilities for administrating the State’s 
program under this section. 
‘‘(d) ELIGIBLE HOUSEHOLDS.— 
‘‘(1) IN GENERAL.—During any fiscal year, as-
sistance under the program under this section may 
be provided only for a household that has an income, 
as determined for such fiscal year by the partici-
pating State in which such household resides, that is 
less than the income limitation established for such 
fiscal year for purposes of the State program by the 
participating State, except that— 
‘‘(A) assistance under the program under 
this section may not be provided for a house-
hold having a income that exceeds the greater 
of— 
‘‘(i) the amount equal to 150 percent 
of the poverty level for such State; or 
‘‘(ii) the amount equal to 60 percent 
of the median income of households resid-
ing in such State; and 
‘‘(B) a State may not exclude a household 
from eligibility in a fiscal year solely on the 
basis of household income if such income is less 
than 110 percent of the poverty level for the 
State in which such household resides.
‘‘(2) STATE VERIFICATION OF INCOME ELIGI-
BILITY.—In verifying income eligibility for purposes 
of paragraph (1), the participating State may apply 
procedures and policies consistent with procedures 
and policies used by the State agency administering 
programs under part A of title IV of the Social Se-
curity Act (42 U.S.C. 601 et seq.), under title XX 
of the Social Security Act (42 U.S.C. 1397 et seq.), 
under subtitle B of title VI of the Omnibus Budget 
Reconciliation Act of 1981 (42 U.S.C. 9901 et seq.; 
relating to community services block grant pro-
gram), under any other provision of law that carries 
out programs which were administered under the 
Economic Opportunity Act of 1964 (42 U.S.C. 2701 
et seq.) before August 13, 1981, or under other in-
come assistance or service programs (as determined 
by the State). 
‘‘(3) CERTIFICATION BY STATE OF ELIGIBILITY 
HOUSEHOLDS.—For each fiscal year, each partici-
pating State shall certify to the Administrator com-
pliance of households who are to be provided assist-
ance under the State program during such fiscal 
year with the income requirements under paragraph 
(1).
‘‘(e) ELIGIBLE PROPERTIES.—Assistance under the 
program under this section may be provided only for a 
residential property— 
‘‘(1) that has 4 or fewer residences; 
‘‘(2) that is owned and occupied by an eligible 
household; 
‘‘(3) for which a base flood elevation is identi-
fied on a flood insurance rate map of the Adminis-
trator that is in effect; 
‘‘(4) for which such other information is avail-
able as the Administrator considers necessary to de-
termine the flood risk associated with such property; 
and 
‘‘(5) that is located in a community that is par-
ticipating in the national flood insurance program. 
‘‘(f) TYPES OF ASSISTANCE.—Under the program 
under this section, a participating State shall elect to pro-
vide financial assistance for eligible households in one of 
the following forms: 
‘‘(1) LIMITATION ON RATE INCREASES.—By es-
tablishing a limitation on the rate of increases in the 
amount of chargeable premiums paid by eligible 
households for flood insurance coverage made avail-
able under this title.
‘‘(2) LIMITATION ON RATES.—By establishing a 
limitation on the amount of chargeable premiums 
paid by eligible households for flood insurance cov-
erage made available under this title. 
‘‘(g) NOTIFICATION TO FEMA.—Under the program 
under this section, a participating State shall, on a fiscal 
year basis and at the time and in the manner provided 
by the Administrator— 
‘‘(1) identify for the Administrator the eligible 
households residing in the State who are to be pro-
vided assistance under the State program during 
such fiscal year; and 
‘‘(2) notify the Administrator of the type and 
levels of assistance elected under subsection (f) to be 
provided under the State program with respect to 
such eligible households residing in the State. 
‘‘(h) AMOUNT OF ASSISTANCE.—Under the program 
under this section, in each fiscal year the Administrator 
shall, notwithstanding section 1308, make flood insurance 
coverage available for purchase by households identified 
as eligible households for such fiscal year by a partici-
pating State pursuant to subsection (e) at chargeable pre-
mium rates that are discounted by an amount that is 
based on the type and levels of assistance elected pursuant
to subsection (f) by the participating State for such fiscal 
year. 
‘‘(i) BILLING STATEMENT.—In the case of an eligible 
household for which assistance under the program under 
this section is provided with respect to a policy for flood 
insurance coverage, the annual billing statement for such 
policy shall include statements of the following amounts: 
‘‘(1) The estimated risk premium rate for the 
property under section 1307(a)(1). 
‘‘(2) If applicable, the estimated risk premium 
rate for the property under section 1307(a)(2). 
‘‘(3) The chargeable risk premium rate for the 
property taking into consideration the discount pur-
suant to subsection (h). 
‘‘(4) The amount of the discount pursuant to 
subsection (h) for the property. 
‘‘(5) The number and dollar value of claims 
filed for the property, over the life of the property, 
under a flood insurance policy made available under 
the Program and the effect, under this Act, of filing 
any further claims under a flood insurance policy 
with respect to that property. 
‘‘(j) FUNDING THROUGH STATE AFFORDABILITY 
SURCHARGES.—
‘‘(1) IMPOSITION AND COLLECTION.—Notwith-
standing section 1308, for each fiscal year in which 
flood insurance coverage under this title is made 
available for properties in a participating State at 
chargeable premium rates that are discounted pursu-
ant to subsection (f), the Administrator shall impose 
and collect a State affordability surcharge on each 
policy for flood insurance coverage for a property lo-
cated in such participating State that is (A) not a 
residential property having 4 or fewer residences, or 
(B) is such a residential property but is owned by 
a household that is not an eligible household for pur-
poses of such fiscal year. 
‘‘(2) AMOUNT.—The amount of the State af-
fordability surcharge imposed during a fiscal year on 
each such policy for a property in a participating 
State shall be— 
‘‘(A) sufficient such that the aggregate 
amount of all such State affordability sur-
charges imposed on properties in such partici-
pating State during such fiscal year is equal to 
the aggregate amount by which all policies for 
flood insurance coverage under this title sold 
during such fiscal year for properties owned by
eligible households in the participating State 
are discounted pursuant to subsection (f); and 
‘‘(B) the same amount for each property in 
the participating State being charged such a 
surplus. 
‘‘(k) TREATMENT
OF OTHER SURCHARGES.—The 
provision of assistance under the program under this sec-
tion with respect to any property and any limitation on 
premiums or premium increases pursuant to subsection (f) 
for the property shall not affect the applicability or 
amount of any surcharge under section 1308A for the 
property, of any increase in premiums charged for the 
property pursuant to section 1310A(c), or of any equiva-
lency fee under section 1308B for the property. 
‘‘(l) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) PARTICIPATING
STATE.—The term ‘par-
ticipating State’ means, with respect to a fiscal year, 
a State that is participating in the program under 
this section for such fiscal year. 
‘‘(2) ELIGIBLE HOUSEHOLD.—The term ‘eligi-
ble household’ means, with respect to a fiscal year 
and a participating State, a household that has an 
income that is less than the amount of the income 
limitation for the fiscal year established for purposes
of the State program of such participating State 
pursuant to subsection (g)(1). 
‘‘(3) POVERTY
LEVEL.—The term ‘poverty 
level’’ means, with respect to a household in any 
State, the income poverty line as prescribed and re-
vised at least annually pursuant to section 673(2) of 
the Community Services Block Grant Act (42 U.S.C. 
9902(2)), as applicable to such State. 
‘‘(4) STATE.—The term ‘State’ shall include a 
consortium of States established for purposes of ad-
ministrating the program under this section with re-
spect to the member States of the consortium. 
‘‘(5) STATE PROGRAM.—The term ‘State pro-
gram’ means a program carried out in compliance 
with this section by a participating State in conjunc-
tion with the program under this section of the Ad-
ministrator. 
‘‘(m) REGULATIONS.—The Administrator shall issue 
such regulations as may be necessary to carry out the pro-
gram under this section.’’. 
SEC. 104. DISCLOSURE OF PREMIUM METHODOLOGY. 
Section 1308 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4015) is amended by adding at the end 
the following new subsection: 
‘‘(n) DISCLOSURE OF PREMIUM METHODOLOGY.—
‘‘(1) DISCLOSURE.—Six months prior to the ef-
fective date of risk premium rates, the Adminis-
trator shall cause to be published in the Federal 
Register an explanation of the bases for, and meth-
odology used to determine, the chargeable premium 
rates to be effective for flood insurance coverage 
under this title. 
‘‘(2) 
ALIGNMENT
WITH
INDUSTRY
PRAC-
TICES.—The disclosure required under paragraph 
(1) shall, to the extent practicable, be aligned with 
industry patterns and practices and shall include in-
formation and data recommended by the State in-
surance commissioners guidelines on rate filings. 
‘‘(3) PUBLIC
MEETINGS.—The Administrator 
shall, on an annual basis, hold at least one public 
meeting in each of the geographical regions of the 
United States, as defined by the Administrator for 
purposes of the National Flood Insurance Program, 
for the purpose of explaining the methodology de-
scribed in paragraph (1) and answering questions 
and receiving comments regarding such method-
ology. The Administrator shall provide notice of each 
such public meeting in advance, in such manner, and 
in using such means as are reasonably designed to 
notify interested parties and members of the public
of the date and time, location, and purpose of such 
meeting, and of how to submit questions or com-
ments.’’. 
SEC. 105. CONSIDERATION OF COASTAL AND INLAND LOCA-
TIONS IN PREMIUM RATES. 
(a) ESTIMATES OF PREMIUM RATES.—Subparagraph 
(A) of section 1307(a)(1) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4014(a)(1)(A)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end; 
and 
(2) by adding at the end the following new 
clause: 
‘‘(iii) the differences in flood risk for 
properties impacted by coastal flood risk 
and properties impacted by riverine, or in-
land flood risk; and’’. 
(b) ESTABLISHMENT
OF CHARGEABLE PREMIUM 
RATES.—Paragraph (1) of section 1308(b) of the Na-
tional Flood Insurance Act of 1968 (42 U.S.C. 
4015(b)(1)) is amended by inserting ‘‘due to differences 
in flood risk resulting from coastal flood hazards and 
riverine, or inland flood hazards and’’ after ‘‘including dif-
ferences in risks’’. 
(c) REVISED RATES.—Not later than the expiration 
of the two-year period beginning on the date of the enact-
ment of this Act, the Administrator of the Federal Emer-
gency Management Agency shall revise risk premium rates 
under the National Flood Insurance Program to imple-
ment the amendments made by this section. 
SEC. 106. MONTHLY INSTALLMENT PAYMENT OF PRE-
MIUMS. 
(a) AUTHORITY.—Subsection (g) of section 1308 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 
4015(g)) is amended— 
(1) by striking the subsection designation and 
all that follows through ‘‘With respect’’ and insert-
ing the following: 
‘‘(g) FREQUENCY OF PREMIUM COLLECTION.— 
‘‘(1) OPTIONS.—With respect’’; and 
(2) by adding at the end the following: 
‘‘(2) MONTHLY
INSTALLMENT
PAYMENT
OF 
PREMIUMS.— 
‘‘(A) EXEMPTION
FROM
RULEMAKING.— 
Until such time as the Administrator promul-
gates regulations implementing paragraph (1) 
of this subsection, the Administrator may adopt 
policies and procedures, notwithstanding any 
other provisions of law and in alignment and 
consistent with existing industry escrow and 
servicing standards, necessary to implement
such paragraph without undergoing notice and 
comment rulemaking and without conducting 
regulatory analyses otherwise required by stat-
ute, regulation, or Executive order. 
‘‘(B) PILOT
PROGRAM.—The Adminis-
trator may initially implement paragraph (1) of 
this subsection as a pilot program that provides 
for a gradual phase-in of implementation. 
‘‘(C) POLICYHOLDER
PROTECTION.—The 
Administrator may— 
‘‘(i) during the 12-month period be-
ginning on the date of the enactment of 
this subparagraph, charge policyholders 
choosing to pay premiums in monthly in-
stallments a fee for the total cost of the 
monthly collection of premiums not to ex-
ceed $25 annually; and 
‘‘(ii) after the expiration of the 12- 
month period referred to in clause (i), ad-
just the fee charged annually to cover the 
total cost of the monthly collection of pre-
miums as determined by the report sub-
mitted pursuant to subparagraph (D). 
‘‘(D) REPORT.—Not later than six months 
after the date of the enactment of this Act, the
Comptroller General shall 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, that sets forth all of the costs associ-
ated with the monthly payment of premiums, 
including any up-front costs associated with in-
frastructure development, the impact on all pol-
icyholders including those that exercise the op-
tion to pay monthly and those that do not, op-
tions for minimizing the costs, particularly the 
costs to policyholders, and the feasibility of 
adopting practices that serve to minimize costs 
to policyholders such as automatic payments 
and electronic payments. 
‘‘(E) ANNUAL
REPORTS.—On an annual 
basis, the Administrator shall report to the 
Committee on Financial Services of the House 
of Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
the ongoing costs associated with the monthly 
payment of premiums.’’. 
(b) 
IMPLEMENTATION.—Clause 
(ii) 
of 
section 
1307(a)(1)(B) of the National Flood Insurance Act of 
1968 (42 U.S.C. 4014(a)(1)(B)(ii)) is amended by insert-
ing before ‘‘any administrative expenses’’ the following: 
‘‘the costs associated with the monthly collection of pre-
miums provided for in section 1308(g) (42 U.S.C. 
4015(g)), but only if such costs exceed the operating costs 
and allowances set forth in clause (i) of this subparagraph, 
and’’. 
SEC. 107. ENHANCED CLEAR COMMUNICATION OF FLOOD 
RISKS. 
(a) IN GENERAL.—Subsection (l) of section 1308 of 
the National Flood Insurance Act of 1968 (42 U.S.C. 
4015(l)) is amended to read as follows: 
‘‘(l) CLEAR COMMUNICATIONS.— 
‘‘(1) NEWLY
ISSUED
AND
RENEWED
POLI-
CIES.—For all policies for flood insurance coverage 
under the National Flood Insurance Program that 
are newly issued or renewed, the Administrator shall 
clearly communicate to policyholders— 
‘‘(A) their full flood risk determinations, 
regardless of whether their premium rates are 
full actuarial rates; and 
‘‘(B) the number and dollar value of claims 
filed for the property, over the life of the prop-
erty, under a flood insurance policy made avail-
able under the Program and the effect, under 
this Act, of filing any further claims under a
flood insurance policy with respect to that prop-
erty.’’. 
(b) EFFECTIVE DATE.—Subsection (l) of section 
1308 of the National Flood Insurance Act of 1968, as 
added by subsection (a) of this section, shall take effect 
beginning upon the expiration of the 12-month period that 
begins on the date of the enactment of this Act. Such sub-
section (l), as in effect immediately before the amendment 
made by paragraph (1), shall apply during such 12-month 
period. 
SEC. 108. AVAILABILITY OF FLOOD INSURANCE INFORMA-
TION UPON REQUEST. 
Section 1313 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4020) is amended— 
(1) by inserting ‘‘(a) PUBLIC INFORMATION 
AND DATA.—’’ after ‘‘SEC. 1313.’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) AVAILABILITY OF FLOOD INSURANCE INFORMA-
TION UPON REQUEST.—Not later than 30 days after a 
request for such information by the current owner of a 
property, the Administrator shall provide to the owner any 
information, including historical information, available to 
the Administrator on flood insurance program coverage, 
payment of claims, and flood damages for the property
at issue, and any information the Administrator has on 
whether the property owner may be required to purchase 
coverage under the National Flood Insurance Program 
due to previous receipt of Federal disaster assistance, in-
cluding assistance provided by the Small Business Admin-
istration, the Department of Housing and Urban Develop-
ment, or the Federal Emergency Management Agency, or 
any other type of assistance that subjects the property to 
the mandatory purchase requirement under section 102 
of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a).’’. 
SEC. 109. DISCLOSURE OF FLOOD RISK INFORMATION 
UPON TRANSFER OF PROPERTY. 
(a) IN GENERAL.—Chapter 1 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4011 et seq.), as 
amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new section: 
‘‘SEC. 1327. DISCLOSURE OF FLOOD RISK INFORMATION 
UPON TRANSFER OF PROPERTY. 
‘‘(a) REQUIREMENT FOR PARTICIPATION IN PRO-
GRAM.—After September 30, 2022, no new flood insur-
ance coverage may be provided under this title for any 
real property located in any area (or subdivision thereof) 
unless an appropriate body has imposed, by statute or reg-
ulation, a duty on any seller or lessor of improved real
estate located in such area to provide to any purchaser 
or lessee of such property a property flood hazard disclo-
sure which the Administrator has determined meets the 
requirements of subsection (b). 
‘‘(b) DISCLOSURE
REQUIREMENTS.—A property 
flood hazard disclosure for a property shall meet the re-
quirements of this subsection only if the disclosure— 
‘‘(1) is made in writing; 
‘‘(2) discloses any actual knowledge of the seller 
or lessor of— 
‘‘(A) prior physical damage caused by flood 
to any building located on the property; 
‘‘(B) prior insurance claims for losses cov-
ered under the National Flood Insurance Pro-
gram or private flood insurance with respect to 
such property; 
‘‘(C) any previous notification regarding 
the designation of the property as a multiple 
loss property; and 
‘‘(D) any Federal legal obligation to obtain 
and maintain flood insurance running with the 
property, such as any obligation due to a pre-
vious form of disaster assistance under the 
Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act received by any owner of 
the property; and 
‘‘(3) is delivered by or on behalf of the seller or 
lessor to the purchaser or lessee before such pur-
chaser or lessee becomes obligated under any con-
tract for purchase or lease of the property.’’. 
(b) AVAILABILITY
OF
FLOOD
INSURANCE
COV-
ERAGE.—Subsection (c) of section 1305 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4012(c)) is 
amended— 
(1) in paragraph (1), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (2), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) given satisfactory assurance that by Sep-
tember 30, 2022, property flood hazard disclosure 
requirements will have been adopted for the area 
that meet the requirements of section 1326.’’. 
SEC. 110. VOLUNTARY COMMUNITY-BASED FLOOD INSUR-
ANCE PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Administrator of the 
Federal Emergency Management Agency (in this section 
referred to as the ‘‘Administrator’’) may carry out a com-
munity-based flood insurance pilot program to make avail-
able, for purchase by participating communities, a single, 
community-wide flood insurance policy under the National 
Flood Insurance Program that— 
(1) covers all residential and non-residential 
properties within the community; and 
(2) satisfies, for all such properties within the 
community, the mandatory purchase requirements 
under section 102 of the Flood Disaster Protection 
Act of 1973 (42 U.S.C. 4012a). 
(b) PARTICIPATION.—Participation by a community 
in the pilot program under this section shall be entirely 
voluntary on the part of the community. 
(c) REQUIREMENTS
FOR COMMUNITY-WIDE POLI-
CIES.—The Administrator shall ensure that a community- 
wide flood insurance policy made available under the pilot 
program under this section incorporates the following re-
quirements: 
(1) A mapping requirement for properties cov-
ered by the policy. 
(2) A cap on premiums. 
(3) A deductible. 
(4) Certification or accreditation of mitigation 
infrastructure when available and appropriate. 
(5) A community audit.
(6) The Community Rating System under sec-
tion 1315(b) of the National Flood Insurance Act of 
1968 (42 U.S.C. 4022(b)). 
(7) A method of preventing redundant claims 
payments by the National Flood Insurance Program 
in the case of a claim by an individual property 
owner who is covered by a community-wide flood in-
surance policy and an individual policy obtained 
through the Program. 
(8) Coverage for damage arising from flooding 
that complies with the standards under the National 
Flood Insurance Program appropriate to the nature 
and type of property covered. 
(d) TIMING.—The Administrator may establish the 
demonstration program under this section not later than 
the expiration of the 180-day period beginning on the date 
of the enactment of this Act and the program shall termi-
nate on September 30, 2022. 
(e) DEFINITION OF COMMUNITY.—For purposes of 
this section, the term ‘‘community’’ means any unit of 
local government, within the meaning given such term 
under the laws of the applicable State.
SEC. 111. USE OF REPLACEMENT COST IN DETERMINING 
PREMIUM RATES. 
(a) STUDY OF RISK RATING REDESIGN FLOOD IN-
SURANCE PREMIUM RATING OPTIONS.— 
(1) STUDY.—The Administrator of the Federal 
Emergency Management Agency shall conduct a 
study to— 
(A) evaluate insurance industry best prac-
tices for risk rating and classification, including 
practices related to replacement cost value in 
premium rate estimations; 
(B) assess options, methods, and strategies 
for including replacement cost value in the Ad-
ministrator’s 
estimates 
under 
section 
1307(a)(1) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4014(a)(1)); 
(C) provide recommendations for including 
replacement cost value in the estimate of the 
risk premium rates for flood insurance under 
such section 1307(a)(1); 
(D) identify an appropriate methodology to 
incorporate replacement cost value into the Ad-
ministrator’s estimates under such section 
1307(a)(1); 
(E) develop a feasible implementation plan 
and projected timeline for including replace-
ment cost value in the estimates of risk pre-
mium rates for flood insurance made available 
under the National Flood Insurance Program. 
(2) REPORT.— 
(A) REQUIREMENT.—Not later than the 
expiration of the 12-month period beginning on 
the date of the enactment of this Act, the Ad-
ministrator shall submit to the Committee on 
Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate a report that 
contains the results and conclusions of the 
study required under paragraph (1). 
(B) CONTENTS.—The report submitted 
under subparagraph (A) shall include— 
(i) an analysis of the recommenda-
tions resulting from the study under para-
graph (1) and any potential impacts on the 
National Flood Insurance Program, includ-
ing cost considerations; 
(ii) a description of any actions taken 
by the Administrator to implement the 
study recommendations; and 
(iii) a description of any study rec-
ommendations that have been deferred or
not acted upon, together with a statement 
explaining the reasons for such deferral or 
inaction. 
(b) USE OF REPLACEMENT COST VALUE IN PRE-
MIUM RATES; IMPLEMENTATION.— 
(1) ESTIMATED RATES.—Paragraph (1) of sec-
tion 1307(a) of the National Flood Insurance Act of 
1968 (42 U.S.C. 4014(a)(1)) is amended, in the 
matter preceding subparagraph (A), by inserting 
after ‘‘flood insurance’’ the following: ‘‘, which shall 
incorporate replacement cost value, and’’. 
(2) CHARGEABLE
RATES.—Subsection (b) of 
section 1308 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4015(b)) is amended, in the matter 
preceding paragraph (1), by inserting after ‘‘Such 
rates’’ the following: ‘‘shall incorporate replacement 
cost value and’’. 
(3) EFFECTIVE DATE.—The amendments under 
paragraphs (1) and (2) of this subsection shall be 
made upon the expiration of the 12-month period 
beginning on the date of the enactment of this Act. 
(4) APPLICABILITY
AND
PHASE-IN.—The Ad-
ministrator of the Federal Emergency Management 
Agency shall apply the amendments under para-
graphs (1) and (2) to flood insurance coverage made
available under the National Flood Insurance Act of 
1968 for properties located in various geographic re-
gions in the United States such that— 
(A) over the period beginning upon the ex-
piration of the period referred to in paragraph 
(3) of this subsection and ending on December 
31, 2020, the requirement under such amend-
ments shall be gradually phased in geographi-
cally throughout the United States as sufficient 
information for such implementation becomes 
available; and 
(B) after the expiration of such period re-
ferred to in subparagraph (A), such amend-
ments shall apply to all flood insurance cov-
erage made available under the National Flood 
Insurance Act of 1968. 
SEC. 112. CAP ON PREMIUMS. 
Paragraph (1) of section 1308(e) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(e)(1)) is 
amended— 
(1) by striking ‘‘except —’’ and inserting ‘‘ex-
cept as provided in paragraph (4); and’’; 
(2) by striking subparagraphs (A) and (B); 
(3) in subparagraph (C)—
(A) in clause (ii), by redesignating sub-
clauses (I) and (II) as items (aa) and (bb), re-
spectively; 
(B) by redesignating clauses (i) through 
(iii) as subclauses (I) through (III), respec-
tively; and 
(C) by striking ‘‘(C) in the case of a prop-
erty that—’’ and inserting the following: 
‘‘(B) The limitations under clauses (i) and (ii) 
of subparagraph (A) shall not apply in the case of— 
‘‘(i) a property identified under section 
1307(g); or 
‘‘(ii) a property that—’’; 
(4) by striking ‘‘under this title for any prop-
erty’’ and inserting the following: ‘‘under this title— 
‘‘(i) for any property’’; 
(5) by inserting ‘‘(A) subject to subparagraph 
(B),’’ after the paragraph designation; and 
(6) by inserting before subparagraph (B), as so 
redesignated by the amendment made by paragraph 
(3)(C) of this section, the following new clause: 
‘‘(ii) for any residential property having 4 
or fewer residences and for which there is ele-
vation data meeting standards of the Adminis-
trator, may not exceed $10,000 in any single
year, except that such amount (as it may have 
been previously adjusted) shall be adjusted for 
inflation by the Administrator upon the expira-
tion of the 5-year period beginning upon the 
date of the enactment of the 21st Century 
Flood Reform Act and upon the expiration of 
each successive 5-year period thereafter, in ac-
cordance with an inflationary index selected by 
the Administrator.’’. 
SEC. 113. PREMIUM RATES FOR CERTAIN MITIGATED PROP-
ERTIES. 
(a) MITIGATION STRATEGIES.—Paragraph (1) of sec-
tion 1361(d) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4102(d)(1)) is amended— 
(1) in subparagraph (A), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (B), by striking ‘‘and’’ at 
the end; and 
(3) by inserting after subparagraph (B) the fol-
lowing new subparagraphs: 
‘‘(C) with respect to buildings in dense 
urban environments, methods that can be de-
ployed on a block or neighborhood scale; and 
‘‘(D) elevation of mechanical systems; 
and’’.
(b) MITIGATION CREDIT.—Subsection (k) of section 
1308 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(k)) is amended— 
(1) by striking ‘‘shall take into account’’ and 
inserting the following: ‘‘shall— 
‘‘(1) take into account’’; 
(2) in paragraph (1), as so designated by the 
amendment made by paragraph (1) of this sub-
section, by striking the period at the end and insert-
ing ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) offer a reduction of the risk premium rate 
charged to a policyholder, as determined by the Ad-
ministrator, if the policyholder implements any miti-
gation method described in paragraph (1).’’. 
SEC. 114. STUDY OF FLOOD INSURANCE COVERAGE FOR 
UNITS IN COOPERATIVE HOUSING. 
The Administrator of the Federal Emergency Man-
agement Agency shall conduct a study to analyze and de-
termine the feasibility of providing flood insurance cov-
erage under the National Flood Insurance Program under 
the National Flood Insurance Act of 1968 (42 U.S.C. 
4001 et seq.) for individual dwelling units in cooperative 
housing projects. Not later than the expiration of the 24-
month period beginning on the date of the enactment of 
this Act, the Administrator shall submit a report to the 
Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate regarding the findings and 
conclusions of the study conducted pursuant to this sec-
tion, which shall include a plan setting forth specific ac-
tions to implement the development of such flood insur-
ance coverage. 
SEC. 115. PILOT PROGRAM FOR PROPERTIES WITH PRE-
EXISTING CONDITIONS. 
Section 1311 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4018) is amended by adding at the end 
the following new subsection: 
‘‘(c) PILOT PROGRAM FOR INVESTIGATION OF PRE-
EXISTING STRUCTURAL CONDITIONS.— 
‘‘(1) VOLUNTARY
PROGRAM.—The Adminis-
trator shall carry out a pilot program under this 
subsection to provide for companies participating in 
the Write Your Own program (as such term is de-
fined in section 1370(a) (42 U.S.C. 4121(a))) to in-
vestigate preexisting structural conditions of insured 
properties and potentially insured properties that 
could result in the denial of a claim under a policy 
for flood insurance coverage under this title in the
event of a flood loss to such property. Participation 
in the pilot program shall be voluntary on the part 
of Write Your Own companies. 
‘‘(2) INVESTIGATION OF PROPERTIES.—Under 
the pilot program under this subsection, a Write 
Your Own company participating in the program 
shall— 
‘‘(A) provide in policies for flood insurance 
coverage under this title covered by the pro-
gram that, upon the request of the policyholder, 
the company shall provide for— 
‘‘(i) an investigation of the property 
covered by such policy, using common 
methods, to determine whether preexisting 
structural conditions are present that could 
result in the denial of a claim under such 
policy for flood losses; and 
‘‘(ii) if such investigation is not deter-
minative, an on-site inspection of the prop-
erty to determine whether such preexisting 
structural conditions are present; 
‘‘(B) upon completion of an investigation 
or inspection pursuant to subparagraph (A) 
that determines that such a preexisting struc-
tural condition is present or absent, submit a
Housing, and Urban Affairs of the Senate. The re-
port shall include any findings and recommendations 
of the Administrator regarding the pilot program.’’. 
SEC. 116. FEDERAL FLOOD INSURANCE ADVISORY COM-
MITTEE. 
(a) ESTABLISHMENT.—There is established an advi-
sory committee to be known as the Federal Flood Insur-
ance Advisory Committee (in this section referred to as 
the ‘‘Committee’’). 
(b) MEMBERSHIP.— 
(1) MEMBERS.—The Committee shall consist 
of— 
(A) the Administrator of the Federal 
Emergency Management Agency (in this section 
referred to as the ‘‘Administrator’’), or the des-
ignee thereof; 
(B) the Secretary of the Treasury, or the 
designee thereof; and 
(C) additional members appointed by the 
Administrator or the designee of the Adminis-
trator, who shall be— 
(i) two representatives of the property 
and casualty insurance sector; 
(ii) one individual who served in the 
past, or is currently serving, as an insur-
(ix) 
one 
individual 
having 
dem-
onstrated expertise in the challenges in in-
suring low-income communities; 
(x) one representative from an aca-
demic institution who has demonstrated 
expertise in insurance; and 
(xi) such other recognized experts in 
the field of insurance as the Administrator 
considers necessary. 
(2) QUALIFICATIONS.—In appointing members 
under paragraph (1)(C), the Administrator shall, to 
the maximum extent practicable, ensure the mem-
bership of the Committee has a balance of members 
reflecting geographic diversity, including representa-
tion from areas inland or with coastline identified by 
the Administrator as at high risk for flooding or as 
areas having special flood hazards. 
(c) DUTIES.—The Committee shall review, and make 
recommendations to the Administrator, upon request, on 
matters related to the insurance aspects of the National 
Flood Insurance Program, including ratemaking, tech-
nology to administer insurance, risk assessment, actuarial 
practices, claims practices, sales and insurance delivery, 
compensation and allowances, generally and based on the 
complexities of the program, and best insurance practices.
(d) CHAIRPERSON.—The members of the Committee 
shall elect one member to serve as the chairperson of the 
Committee (in this section referred to as the ‘‘Chair-
person’’). 
(e) COMPENSATION.—Members of the Committee 
shall receive no additional compensation by reason of their 
service on the Committee. 
(f) MEETINGS AND ACTIONS.— 
(1) IN GENERAL.—The Committee shall meet 
not less frequently than twice each year at the re-
quest of the Chairperson or a majority of its mem-
bers, and may take action by a vote of the majority 
of the members in accordance with the Committee’s 
charter. 
(2) INITIAL MEETING.—The Administrator, or 
a person designated by the Administrator, shall re-
quest and coordinate the initial meeting of the Com-
mittee. 
(g) STAFF OF FEMA.—Upon the request of the 
Chairperson, the Administrator may detail, on a nonreim-
bursable basis, personnel of the Federal Emergency Man-
agement Agency to assist the Committee in carrying out 
its duties. 
(h) POWERS.—In carrying out this section, the Com-
mittee may hold hearings, receive evidence and assistance,
provide information, and conduct research, as it considers 
appropriate. 
(i) REPORTS TO CONGRESS.—The Administrator, on 
an annual basis, shall report to the Committee on Finan-
cial Services of the House of Representatives, the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate, and the Office of Management and Budget on— 
(1) the recommendations made by the Com-
mittee; 
(2) actions taken by the Federal Emergency 
Management Agency to address such recommenda-
tions to improve the insurance aspects of the na-
tional flood insurance program; and 
(3) any recommendations made by the Com-
mittee that have been deferred or not acted upon, 
together with an explanatory statement. 
SEC. 117. INTERAGENCY GUIDANCE ON COMPLIANCE. 
The Federal entities for lending regulation (as such 
term is defined in section 3(a) of the Flood Disaster Pro-
tection Act of 1973 (42 U.S.C. 4003(a))), in consultation 
with the Administrator of the Federal Emergency Man-
agement Agency, shall update and reissue the document 
entitled ‘‘Interagency Questions and Answers Regarding 
Flood Insurance’’ not later than the expiration of the 12-
month period beginning on the date of the enactment of 
this Act and not less frequently than biennially thereafter. 
SEC. 118. GAO STUDY OF CLAIMS ADJUSTMENT PRACTICES. 
The Comptroller General of the United States shall 
conduct a study of the policies and practices for adjust-
ment of claims for losses under flood insurance coverage 
made available under the National Flood Insurance Act, 
which shall include— 
(1) a comparison of such policies and practices 
with the policies and practices for adjustment of 
claims for losses under other insurance coverage; 
(2) an assessment of the quality of the adjust-
ments conducted and the effects of such policies and 
practices on such quality; 
(3) identification of any incentives under such 
policies and practices that affect the speed with 
which such adjustments are conducted; and 
(4) identification of the affects of such policies 
and practices on insureds submitting such claims for 
losses. 
SEC. 119. GAO STUDY OF FLOOD INSURANCE COVERAGE 
TREATMENT OF EARTH MOVEMENT. 
The Comptroller General of the United States shall 
conduct a study of the treatment, under flood insurance 
coverage made available under the National Flood Insur-
ance Act, of earth movement and subsidence, including 
earth movement and subsidence caused by flooding, which 
shall include— 
(1) identification and analysis of the effects of 
such treatment on the National Flood Insurance 
Program and insureds under the program; 
(2) an assessment of the availability and afford-
ability of coverage in the private insurance market 
for earth movement and subsidence caused by flood-
ing; 
(3) an assessment of the effects on the National 
Flood Insurance Program of covering earth move-
ment and subsidence caused by flooding; and 
(4) a projection of the increased premiums that 
would be required to make coverage for earth move-
ment losses actuarially sound and not fiscally detri-
mental to the continuation of the National Flood In-
surance Program. 
SEC. 120. DEFINITIONS. 
(a) NATIONAL FLOOD INSURANCE ACT OF 1968.— 
Subsection (a) of section 1370 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4121(a)) is amended— 
(1) in paragraph (14), by striking ‘‘and’’ at the 
end;
TITLE 
II—INCREASING 
CON-
SUMER 
CHOICE 
THROUGH 
PRIVATE MARKET DEVELOP-
MENT 
SEC. 201. PRIVATE FLOOD INSURANCE. 
(a) MANDATORY PURCHASE REQUIREMENT.— 
(1) AMOUNT AND TERM OF COVERAGE.—Sec-
tion 102 of the Flood Disaster Protection Act of 
1973 (42 U.S.C. 4012a) is amended by striking 
‘‘Sec. 102. (a)’’ and all that follows through the end 
of subsection (a) and inserting the following: 
‘‘SEC. 102. (a) AMOUNT AND TERM OF COVERAGE.— 
After the expiration of sixty days following the date of the 
enactment of this Act, no Federal officer or agency shall 
approve any financial assistance for acquisition or con-
struction purposes for use in any area that has been iden-
tified by the Administrator as an area having special flood 
hazards and in which the sale of flood insurance has been 
made available under the National Flood Insurance Act 
of 1968, unless the building or mobile home and any per-
sonal property to which such financial assistance relates 
is covered by flood insurance: Provided, That the amount 
of flood insurance (1) in the case of Federal flood insur-
ance, is at least equal to the development or project cost 
of the building, mobile home, or personal property (less
estimated land cost), the outstanding principal balance of 
the loan, or the maximum limit of Federal flood insurance 
coverage made available with respect to the particular type 
of property, whichever is less; or (2) in the case of private 
flood insurance, is at least equal to the development or 
project cost of the building, mobile home, or personal 
property (less estimated land cost), the outstanding prin-
cipal balance of the loan, or the maximum limit of Federal 
flood insurance coverage made available with respect to 
the particular type of property, whichever is less: Provided 
further, That if the financial assistance provided is in the 
form of a loan or an insurance or guaranty of a loan, the 
amount of flood insurance required need not exceed the 
outstanding principal balance of the loan and need not be 
required beyond the term of the loan. The requirement 
of maintaining flood insurance shall apply during the life 
of the property, regardless of transfer of ownership of such 
property.’’. 
(2) REQUIREMENT
FOR
MORTGAGE
LOANS.— 
Subsection (b) of section 102 of the Flood Disaster 
Protection Act of 1973 (42 U.S.C. 4012a(b)) is 
amended— 
(A) by striking paragraph (7); 
(B) by redesignating paragraph (6) as 
paragraph (7);
(C) by striking the subsection designation 
and all that follows through the end of para-
graph (5) and inserting the following: 
‘‘(b) REQUIREMENT FOR MORTGAGE LOANS.— 
‘‘(1) REGULATED
LENDING
INSTITUTIONS.— 
Each Federal entity for lending regulation (after 
consultation and coordination with the Financial In-
stitutions Examination Council established under the 
Federal Financial Institutions Examination Council 
Act of 1974) shall by regulation direct regulated 
lending institutions not to make, increase, extend, or 
renew any loan secured by improved real estate or 
a mobile home located or to be located in an area 
that has been identified by the Administrator as an 
area having special flood hazards and in which flood 
insurance has been made available under the Na-
tional Flood Insurance Act of 1968, unless the 
building or mobile home and any personal property 
securing such loan is covered for the term of the 
loan by flood insurance: Provided, That the amount 
of flood insurance (A) in the case of Federal flood 
insurance, is at least equal to the outstanding prin-
cipal balance of the loan or the maximum limit of 
Federal flood insurance coverage made available 
with respect to the particular type of property,
whichever is less; or (B) in the case of private flood 
insurance, is at least equal to the outstanding prin-
cipal balance of the loan or the maximum limit of 
Federal flood insurance coverage made available 
with respect to the particular type of property, 
whichever is less. 
‘‘(2) FEDERAL AGENCY LENDERS AND MORT-
GAGE INSURANCE AND GUARANTEE AGENCIES.— 
‘‘(A) FEDERAL
AGENCY
LENDERS.—A 
Federal agency lender may not make, increase, 
extend, or renew any loan secured by improved 
real estate or a mobile home located or to be lo-
cated in an area that has been identified by the 
Administrator as an area having special flood 
hazards and in which flood insurance has been 
made available under the National Flood Insur-
ance Act of 1968, unless the building or mobile 
home and any personal property securing such 
loan is covered for the term of the loan by flood 
insurance in accordance with paragraph (1). 
Each Federal agency lender may issue any reg-
ulations necessary to carry out this paragraph. 
Such regulations shall be consistent with and 
substantially identical to the regulations issued 
under paragraph (1).
‘‘(B) OTHER FEDERAL MORTGAGE ENTI-
TIES.— 
‘‘(i) 
COVERAGE
REQUIREMENTS.— 
Each covered Federal mortgage entity 
shall implement procedures reasonably de-
signed to ensure that, for any loan that— 
‘‘(I) is secured by improved real 
estate or a mobile home located in an 
area that has been identified, at the 
time of the origination of the loan or 
at any time during the term of the 
loan, by the Administrator as an area 
having special flood hazards and in 
which flood insurance is available 
under the National Flood Insurance 
Act of 1968, and 
‘‘(II) is made, insured, held, or 
guaranteed by such entity, or backs or 
on which is based any trust certificate 
or other security for which such entity 
guarantees the timely payment of 
principal and interest, 
the building or mobile home and any per-
sonal property securing the loan is covered
ing is located, by the insurance 
regulator of that State; or 
‘‘(bb) eligible as a non-
admitted insurer to provide in-
surance in the home State of the 
insured, in accordance with sec-
tions 521 through 527 of the 
Dodd-Frank Wall Street Reform 
and Consumer Protection Act 
(15 U.S.C. 8201 through 8206); 
‘‘(II) is issued by an insurance 
company that is not otherwise dis-
approved as a surplus lines insurer by 
the insurance regulator of the State in 
which the property to be insured is lo-
cated; and 
‘‘(III) provides flood insurance 
coverage that complies with the laws 
and regulations of that State; or 
‘‘(ii) an agreement with a mutual aid 
society for such society to cover expenses 
arising from damage to property of the 
members of such society caused by flood-
ing, unless the State in which the property 
to be insured is located has—