routes under the evacuation plan referred to in 
subparagraph (A), the opportunity to purchase 
flood insurance, and the consequences of failure 
to purchase flood insurance. 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
paragraph (1) may be construed to affect the appli-
cability of a designation of any area as an area hav-
ing special flood hazards for purposes of the avail-
ability of flood insurance coverage, criteria for land 
management and use, notification of flood hazards, 
eligibility for mitigation assistance, or any other pur-
pose or provision not specifically referred to in para-
graph (1). 
‘‘(j) AVAILABILITY
OF PREFERRED RISK RATING 
METHOD PREMIUMS.—The preferred risk rate method 
premium shall be available for flood insurance coverage 
for properties located in areas referred to in subsection 
(i)(1) and during the time period referred to in subsection 
(i)(1).’’. 
(b) CONFORMING AMENDMENT.—The second sen-
tence of subsection (h) of section 1360 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4101(h)) is 
amended by striking ‘‘Such’’ and inserting ‘‘Except for no-
tice regarding a change described in section 102(i)(1) of
the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a(i)(1)), such’’. 
(c) NO REFUNDS.—Nothing in this section or the 
amendments made by this section may be construed to au-
thorize or require any payment or refund for flood insur-
ance coverage purchased for any property that covered any 
period during which such coverage is not required for the 
property pursuant to the applicability of the amendment 
made by subsection (a). 
SEC. 7. 5-YEAR PHASE-IN OF FLOOD INSURANCE RATES 
FOR NEWLY MAPPED AREAS. 
(a) IN GENERAL.—Section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015), as amend-
ed by the preceding provisions of this Act, is further 
amended— 
(1) in subsection (a), in the matter preceding 
paragraph (1), by inserting ‘‘or notice’’ after ‘‘pre-
scribe by regulation’’; 
(2) in subsection (c), by inserting ‘‘and sub-
section (g)’’ before the first comma; and 
(3) by adding at the end the following new sub-
section: 
‘‘(g) 5-YEAR
PHASE-IN
OF
FLOOD
INSURANCE 
RATES FOR NEWLY MAPPED AREAS.—Notwithstanding 
any other provision of law relating to chargeable risk pre-
mium rates for flood insurance coverage under this title, 
in the case of any area that was not previously designated 
as an area having special flood hazards and that, pursuant 
to any issuance, revision, updating, or other change in 
flood insurance maps, becomes designated as such an 
area, during the 5-year period that begins upon the expira-
tion of the period referred to in section 102(i)(1) of the 
Flood Disaster Protection Act of 1973 with respect to 
such area, the chargeable premium rate for flood insur-
ance under this title with respect to any property that is 
located within such area shall be— 
‘‘(1) for the first year of such 5-year period, 20 
percent of the chargeable risk premium rate other-
wise applicable under this title to the property; 
‘‘(2) for the second year of such 5-year period, 
40 percent of the chargeable risk premium rate oth-
erwise applicable under this title to the property; 
‘‘(3) for the third year of such 5-year period, 60 
percent of the chargeable risk premium rate other-
wise applicable under this title to the property; 
‘‘(4) for the fourth year of such 5-year period, 
80 percent of the chargeable risk premium rate oth-
erwise applicable under this title to the property; 
and
‘‘(5) for the fifth year of such 5-year period, 
100 percent of the chargeable risk premium rate 
otherwise applicable under this title to the prop-
erty.’’. 
(b) REGULATION OR NOTICE.—The Administrator of 
the Federal Emergency Management Agency shall issue 
an interim final rule or notice to implement this section 
and the amendments made by this section as soon as prac-
ticable after the date of the enactment of this Act. 
SEC. 8. INCREASE IN ANNUAL LIMITATION ON PREMIUM IN-
CREASES. 
Section 1308(e) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015(e)) is amended by striking ‘‘10 
percent’’ and inserting ‘‘20 percent’’. 
SEC. 
9. 
CONSIDERATION 
OF 
CONSTRUCTION, 
RECON-
STRUCTION, AND IMPROVEMENT OF FLOOD 
PROTECTION SYSTEMS IN DETERMINATION 
OF FLOOD INSURANCE RATES. 
(a) IN GENERAL.—Section 1307 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4014) is amend-
ed— 
(1) in subsection (e)— 
(A) in the first sentence, by striking ‘‘con-
struction of a flood protection system’’ and in-
serting ‘‘construction, reconstruction, or im-
provement of a flood protection system (without 
respect to the level of Federal investment or 
participation)’’; and 
(B) in the second sentence— 
(i) by striking ‘‘construction of a flood 
protection system’’ and inserting ‘‘con-
struction, reconstruction, or improvement 
of a flood protection system’’; and 
(ii) by inserting ‘‘based on the present 
value of the completed system’’ after ‘‘has 
been expended’’; and 
(2) in subsection (f)— 
(A) in the first sentence in the matter pre-
ceding paragraph (1), by inserting ‘‘(without re-
spect to the level of Federal investment or par-
ticipation)’’ before the period at the end; 
(B) in the third sentence in the matter 
preceding paragraph (1), by inserting ‘‘, wheth-
er coastal or riverine,’’ after ‘‘special flood haz-
ard’’; and 
(C) in paragraph (1), by striking ‘‘a Fed-
eral agency in consultation with the local 
project sponsor’’ and inserting ‘‘the entity or 
entities that own, operate, maintain, or repair 
such system’’.
(b) REGULATIONS.—The Administrator of the Fed-
eral Emergency Management Agency shall promulgate 
regulations to implement this section and the amendments 
made by this section as soon as practicable, but not more 
than 18 months after the date of the enactment of this 
Act. Section 5 may not be construed to annul, alter, affect, 
authorize any waiver of, or establish any exception to, the 
requirement under the preceding sentence. 
(c) IMPLEMENTATION.—The Administrator of the 
Federal Emergency Management Agency shall implement 
this section and the amendments made by this section in 
a manner that will not materially weaken the financial po-
sition of the national flood insurance program or increase 
the risk of financial liability to Federal taxpayers. 
SEC. 10. DISCOUNTED FLOOD INSURANCE RATES FOR 
PROPERTIES PROTECTED BY A FLOOD-PRO-
TECTION SYSTEM FROM LESS THAN A 100- 
YEAR FREQUENCY FLOOD. 
Section 1307 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4014) is amended by adding at the end 
the following new subsection: 
‘‘(g) Except as provided in subsection (f) and not-
withstanding any other provision of law, flood insurance 
coverage shall be made available for a property that the 
Director determines is protected by a flood-protection sys-
tem that does not provide protection against a 100-year 
frequency flood at premium rates that reflect a discount 
for the actual protection against flood risk afforded by 
such flood-protection system.’’. 
SEC. 11. TREATMENT OF CERTAIN FLOOD PROTECTION 
PROJECTS. 
Section 1308 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4015), as amended by the preceding pro-
visions of this Act, is further amended by adding at the 
end the following new subsection: 
‘‘(h) TREATMENT OF CERTAIN FLOOD PROTECTION 
PROJECTS.— 
‘‘(1) INAPPLICABILITY
OF
MANDATORY
PUR-
CHASE REQUIREMENT; PREMIUM RATES.—Notwith-
standing any other provision of law, upon full com-
pletion, as designed, of a flood protection system 
that was intended to provide flood protection with 
respect to a covered area, such covered area— 
‘‘(A) shall not be considered to be an area 
having special flood hazards for purposes of this 
Act or subsections (a), (b), or (e) of section 
102, or section 202(a) of the Flood Disaster 
Protection Act of 1973; and 
‘‘(B) shall be eligible for flood insurance 
under this Act, if and to the extent that such
area is eligible for such insurance under the 
other provisions of this Act, at premium rates 
not exceeding those that would be applicable 
under this section if the flood protection system 
referred to in paragraph (2) for such area had 
been completed and accredited as providing pro-
tection from floods at the level that the system 
was designed to provide (before construction, 
reconstruction, or improvement of the system, 
as applicable, began). 
The flood insurance rate maps shall indicate, for 
each covered area, the status of the area under sub-
paragraphs (A) and (B). 
‘‘(2) COVERED
AREA.—For purposes of this 
subsection, a covered area is an area that was in-
tended to be protected by a flood protection sys-
tem— 
‘‘(A)(i) for which, as of April 15, 2010— 
‘‘(I) construction, reconstruction, or 
improvement has not been completed; 
‘‘(II) adequate progress, within the 
meaning of section 1307(e), has been made 
on such construction, reconstruction, or 
improvement; and
‘‘(III) is in an area having special 
flood hazards; or 
‘‘(ii) for which, as of such date— 
‘‘(I) construction, reconstruction, or 
improvement has been completed; 
‘‘(II) a determination regarding ac-
creditation has not been made; and 
‘‘(III) is in an area having special 
flood hazards; 
‘‘(B) that was designed to provide protec-
tion for at least the 100-year frequency flood; 
and 
‘‘(C) that has been determined, pursuant 
to waterflow data or other scientific information 
of a Federal agency obtained after, or that has 
changed since, commencement of construction, 
reconstruction, or improvement, will not provide 
protection from floods at the level referred to in 
subparagraph (B).’’. 
SEC. 12. PROHIBITION OF EXTENSION OF SUBSIDIZED 
RATES TO LAPSED POLICIES. 
Section 1308 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4015), as amended by the preceding pro-
visions of this Act, is further amended by adding at the 
end the following new subsection:
‘‘(i) PROHIBITION OF EXTENSION OF SUBSIDIZED 
RATES TO LAPSED POLICIES.—The Director shall not 
provide flood insurance coverage under this title to any 
prospective insured at a rate less than the applicable esti-
mated risk premium rates for the area (or subdivision 
thereof) for any policy under the flood insurance program 
that has lapsed in coverage, as a result of the deliberate 
choice of the holder of such policy.’’. 
SEC. 13. 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 Director, in con-
sultation 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; 
‘‘(2) of the geographical boundaries of such 
area; 
‘‘(3) of whether section 1308(h) of the National 
Flood Insurance Act of 1968 applies to properties 
within such area;