Protecting Families and the Solvency of the National Flood Insurance Program Act of 2022
Bill: H.R.7842 | Sponsor: Rep. Casten, Sean (D-IL)
Policy area: Finance and Financial Sector

Summary:
Protecting Families and the Solvency of the National Flood Insurance Program Act of 2022
This bill revises the National Flood Insurance Program and expands assistance for properties that have experienced repetitive flood-related losses. For example, the bill expedites the voluntary buyouts of such property.
Additionally, the bill requires community plans for addressing repetitive loss properties and expands mitigation assistance for repairs to structures facing repetitive losses.
The bill also addresses the equity of NFIP mitigation assistance by requiring equity considerations in eligibility determinations, waiving the matching requirement for underserved communities, and expanding predisaster hazard mitigation assistance to high-risk communities.

To amend the National Flood Insurance Act of 1968 to expand 
opportunities for families living in areas of high flood risk to access 
  Federal assistance for voluntary relocation, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Families and the Solvency 
of the National Flood Insurance Program Act of 2022''.

SEC. 2. VOLUNTARY BUYOUTS IN LIEU OF FLOOD CLAIMS.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019) is amended by adding at the end the following new subsection:
    ``(d) Expedited Voluntary Buyouts.--
            ``(1) Expedited assistance in lieu of claims.--The 
        Administrator may provide for expedited mitigation assistance 
        for cases in which a policyholder making a claim with respect 
        to a property expresses interest in a voluntary buyout in lieu 
        of a claims payment. Such determinations shall apply regardless 
        of location of a property in relation to an area designated as 
        an area having special flood hazards.
            ``(2) Eligibility.--The Administration may provide 
        expedited assistance under this subsection with respect to a 
        property only if both of the following requirements have been 
        met:
                    ``(A) Property eligibility.--The insured property--
                            ``(i) has been identified as a repetitive 
                        loss or severe repetitive loss property;
                            ``(ii) has been designated by the 
                        participating community as substantially 
                        damaged; or
                            ``(iii) would otherwise be filing a claim 
                        for the maximum level of coverage.
                    ``(B) Community eligibility.--The relevant 
                community participating in the national flood insurance 
                program agrees to take title to the property in 
                accordance with the terms under section 404(b) of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5170c(b)) and has prioritized 
                mitigation to such property or to the area in which 
                such property is located through an appropriate action 
                or plan, as determined by the Administrator, 
                including--
                            ``(i) a repetitive loss area analysis plan 
                        conducted for and consistent with criteria for 
                        the community rating system authorized under 
                        section 1315(b) (42 U.S.C. 4022(b));
                            ``(ii) a locally adopted plan completed in 
                        compliance with requirements of section 1361(e) 
                        (42 U.S.C. 4102(e));
                            ``(iii) a locally adopted flood risk 
                        mitigation plan consistent with the 
                        requirements of section 1366(b) (42 U.S.C. 
                        4104c(b));
                            ``(iv) an ongoing local or State program 
                        for property buyouts to address flooding 
                        problems that conforms with such requirement as 
                        the Administrator may establish; or
                            ``(v) such other action or plan as the 
                        Administrator may provide.
            ``(3) Long-term benefits to fund.--Whenever claims are 
        filed and the conditions under paragraph (2) exist, the 
        Administrator shall expeditiously determine, considering 
        current and future risks, if a property buyout would result in 
        long-term benefits to the National Flood Insurance Fund. For 
        buyouts determined to be beneficial, amounts in the National 
        Flood Insurance Fund may be used immediately to make 
        acquisition offers under this subsection in lieu of full claims 
        payments. Such offers may exceed the amount of the claim and 
        shall comply with requirements for buyout offers authorized 
        under section 404 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170c). In no case shall 
        such expedited buyout offers delay or reduce the amount of 
        claims due to a policyholder for contents coverage or necessary 
        clean-up costs.''.

SEC. 3. COMMUNITY ACTION TO ADDRESS REPETITIVELY FLOODED AREAS.

    Section 1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4102) is amended by adding at the end the following new subsection:
    ``(e) Community Action for Repeatedly Flooded Areas.--
            ``(1) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Covered community.--The term `covered 
                community' means a community--
                            ``(i) that is participating in the national 
                        flood insurance program under section 1315 (42 
                        U.S.C. 4022);
                            ``(ii) within which are located--
                                    ``(I) not fewer than 50 repetitive 
                                loss structures; or
                                    ``(II) not fewer than 5 severe 
                                repetitive loss structures for which 
                                mitigation activities meeting the 
                                standards for approval under section 
                                1366(c)(2)(A) (42 U.S.C. 
                                4101c(c)(2)(A)) have not been 
                                conducted; and
                            ``(iii) which has been identified by the 
                        Administrator as a priority for assessment and 
                        mitigation in accordance with the regulations 
                        authorized by this section.
                    ``(B) Repetitive loss structure.--The term 
                `repetitive loss structure' has the meaning given such 
                term in section 1370 (42 U.S.C. 4121).
                    ``(C) Severe repetitive loss structure.--The term 
                `severe repetitive loss structure' has the meaning 
                given such term in section 1366(h) (42 U.S.C. 
                4101c(h)).
            ``(2) Requirements for covered communities.--The 
        Administrator shall, by regulation, require a covered community 
        to--
                    ``(A) determine, with assistance from the 
                Administrator, the areas within the covered community 
                in which properties described in paragraph (1)(A)(ii) 
                are located in order to identify areas that are 
                repeatedly damaged by floods;
                    ``(B) assess, with assistance from the 
                Administrator, future conditions which may represent 
                continuing risks to the repeatedly damaged areas 
                identified pursuant to subparagraph (A);
                    ``(C) develop a community-specific plan for 
                mitigating continuing flood risks to the repeatedly 
                damaged areas identified pursuant to subparagraph (A);
                    ``(D) submit the plan described in subparagraph (C) 
                and any plan updates to the Administrator at 
                appropriate intervals;
                    ``(E) implement the plan described in subparagraph 
                (C); and
                    ``(F) subject to section 552a of title 5, United 
                States Code, make the plan described in subparagraph 
                (C), any updates to the plan, and reports on progress 
                in reducing flood risk available to the public.
            ``(3) Coordination with existing planning efforts.--As 
        determined by the Administrator, a covered community may 
        address the planning requirements of this subsection in 
        coordination with other planning efforts, including--
                    ``(A) a plan developed under section 1366 of this 
                title (42 U.S.C. 4104c);
                    ``(B) a plan developed under section 322 of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5165); or
                    ``(C) a plan completed for, conducted for, and 
                consistent with criteria for the community rating 
                system authorized under section 1315(b) of this title 
                (42 U.S.C. 4022(b)).
            ``(4) Authorization and assistance.--
                    ``(A) In general.--The Administrator may issue 
                appropriate policies and regulations to assist covered 
                communities in identification of repeatedly flooded 
                areas and in implementing practical plans for 
                addressing the identified flooding problems.
                    ``(B) Types of assistance.--Assistance authorized 
                under this section may include--
                            ``(i) sharing of information in accordance 
                        with the requirements of section 552a of title 
                        5, United States Code, and the subchapter II of 
                        chapter 35 of title 44, United States Code;
                            ``(ii) consideration of possible sources of 
                        financial assistance to communities, 
                        including--
                                    ``(I) potential waiver or lowering 
                                of non-Federal cost shares for 
                                mitigation of properties; and
                                    ``(II) potential priority for 
                                applicable grant mitigation funding 
                                managed by the Administrator;
                            ``(iii) additional technical assistance to 
                        communities the Administrator may deem most at-
                        risk for repeated flooding events;
                            ``(iv) reasonable considerations and 
                        targeted assistance for communities defined as 
                        small and impoverished or high-risk under 
                        section 203(a) of the Robert T. Stafford 
                        Disaster Relief and Emergency Assistance Act 
                        (42 U.S.C 5133(a)); and
                            ``(v) special assistance aimed at 
                        implementing Executive Order 13985 (January 20, 
                        2021) on Advancing Racial Equity and Support 
                        for Underserved Communities Through the Federal 
                        Government, as defined by the Administrator.
                    ``(C) Special considerations.--In determining an 
                appropriate level of assistance for a covered 
                community, as provided in subparagraph (B), the 
                Administrator shall consider the extent to which the 
                community is working to remedy problems associated with 
                repeated flooding and the resources available to the 
                covered community, including--
                            ``(i) any Federal or State funding received 
                        by the covered community;
                            ``(ii) the portion of the covered community 
                        that is located within areas having special 
                        flood hazards; and
                            ``(iii) any other factor that makes it 
                        difficult for the covered community to conduct 
                        mitigation activities for flood-prone 
                        structures.
            ``(5) Reports to congress.--Not later than 3 years after 
        the date of enactment of this subsection, and not less 
        frequently than once every 2 years thereafter, the 
        Administrator shall submit to the Congress a report regarding 
        the progress made by covered communities with respect to 
        implementing plans developed under paragraph (2)(C) and, to the 
        extent possible, the trends in numbers of repetitive loss and 
        severe repetitive loss properties.''.

SEC. 4. FLOOD MITIGATION ASSISTANCE.

    (a) Authority.--Paragraph (2) of section 1366(a) of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4104c(a)(2)) is amended--
            (1) by inserting ``repetitive loss structures,'' after 
        ``damage to''; and
            (2) by inserting before ``; and'' the following: ``, and 
        other structures within an area that has been identified by the 
        State or community as a repetitive loss area or has been 
        determined by the Administrator to pose a significant risk of 
        recurrent flooding''.
    (b) Eligible Mitigation Activities.--Subsection (c) of section 1366 
of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is 
amended--
            (1) in paragraph (2)--
                    (A) in the paragraph heading, by inserting 
                ``fairness,'' after ``cost-effectiveness'';
                            (i) in subparagraph (A)--
                                    (I) in clause (i)--
                                            (aa) by inserting ``, 
                                        equitable,'' after 
                                        ``feasible''; and
                                            (bb) by inserting ``over 
                                        the long term'' after ``cost-
                                        effective''; and
                                    (II) in clause (ii), by inserting 
                                ``repetitive loss or'' before 
                                ``severe''; and
                            (ii) in subparagraph (B) by inserting ``, 
                        including benefits that provide needed 
                        assistance to vulnerable populations'' before 
                        the period at the end;
            (2) in paragraph (3)--
                    (A) in subparagraph (C)--
                            (i) by striking ``for public use,''; and
                            (ii) by inserting ``, considering current 
                        and future risks'' before the period at the 
                        end;
                    (B) in subparagraph (H) by inserting ``and'' after 
                the semicolon at the end;
                    (C) in subparagraph (I) by striking ``; and'' and 
                inserting a period; and
                    (D) by striking subparagraph (J); and
            (3) in paragraph (4), by adding after the period, the 
        following: ``In any case in which elevation or rebuilding is 
        authorized by the Administrator, the appropriate level of 
        elevation shall incorporate appropriate freeboard or other 
        safety factor based on an assessment using the best scientific 
        information to determine risk levels over the expected lifetime 
        of the structure.''.
    (c) Matching Requirement.--Subsection (d) of section 1366 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4104c(d)) is amended--
            (1) in paragraph (2), by inserting before the period at the 
        end the following: ``, except in cases in which the repetitive 
        loss structure lies within an area identified under a local 
        plan adopted pursuant to section 1361(e) (42 U.S.C. 4102(e)). 
        In such cases, mitigation activities, including acquisitions, 
        shall be funded in an amount up to 100 percent of all eligible 
        costs'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) Waiver of matching requirements for properties within 
        underserved communities.--The matching requirement under this 
        subsection shall be waived for the following properties:
                    ``(A) Properties located within a census tract with 
                a Centers for Disease Control and Prevention Social 
                Vulnerability Index score of not less than 0.5001.
                    ``(B) Properties serving as the primary residence 
                for a household having a household income of not more 
                than 100 percent of the applicable area median 
                income.''.

SEC. 5. PREDISASTER MITIGATION.

    (a) Definitions.--Subsection (a) of section 203 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C 5133) 
is amended to read as follows:
    ``(a) Definition of Small Impoverished Community and High-Risk 
Community.--In this section--
            ``(1) the term `small impoverished community' means a 
        community of 3,000 or fewer individuals that is economically 
        disadvantaged, as determined by the State in which the 
        community is located and based on criteria established by the 
        President; and
            ``(2) the term `high-risk community' means a community that 
        has significant risk to health, safety, or economic stability 
        from natural disasters and also has limited resources to plan 
        for and mitigate against such risks, as determined by the 
        Administrator. In making such determination, the Administrator 
        may consider information on past natural disasters, claims 
        against the National Flood Insurance Fund, and other federal 
        expenditures for disaster response and recovery as well as data 
        related to size of the community, social vulnerability, poverty 
        levels, unemployment, housing shortages, or other factors that 
        affect the community's capacity to prepare for and recover from 
        natural disasters.''.
    (b) State Recommendations.--Subparagraph (B) of section 203(d)(2) 
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C 5133) is amended to read as follows:
                    ``(B) Exceptions.--In providing assistance to local 
                governments under this section, the President may 
                select a local government has been identified as a 
                small impoverished community or a high-risk community, 
                or, if the President determines that extraordinary 
                circumstances justify the selection and that making the 
                selection will further the purpose of this section, 
                another community that has not been recommended by a 
                Governor under this subsection.''.
    (c) Criteria for Assistance Awards.--Subsection (g) of section 203 
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C 5133(g)) is amended--
            (1) in paragraph (1) by inserting ``, including the 
        likelihood that identified hazards will increase in severity, 
        frequency, or impact in the future'' before the semicolon at 
        the end;
            (2) in paragraph (8) by inserting ``, including securing 
        improved protections for vulnerable populations'' before the 
        semicolon at the end; and
            (3) in paragraph (9) by inserting ``and high-risk 
        communities'' before the semicolon at the end.
    (d) Federal Share.--Paragraph (2) of section 203(h) of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C 
5133(h)(2)) is amended to read as follows:
            ``(2) Small impoverished and high-risk communities.--
        Notwithstanding paragraph (1), the President may contribute up 
        to 100 percent of the total cost of a mitigation activity 
        carried out in a small impoverished community or in a high-risk 
        community.''.

SEC. 6. HAZARD MITIGATION GRANT PROGRAM.

    Subsection (b) of section 404 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5170c(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``section'' and replacing with 
                ``Act or under the National Flood Insurance Act (42 
                U.S.C. 4001 et. seq.)''; and
                    (B) by inserting after the period at the end the 
                following: ``In providing such assistance, the 
                Administrator shall allow for participating property 
                owners, as well as any affected tenants, to be treated 
                as displaced persons under the Uniform Relocation 
                Assistance and Real property Acquisition Policies Act 
                of 1970 (42 U.S.C. 4601 et seq.).''; and
            (2) by adding at the end the following new paragraph:
            ``(4) Special considerations.--In the case of an 
        acquisition or relocation project undertaken in cooperation 
        with a community which meets the criteria set forth under 
        subsection 1312(d) of the National Flood Insurance Act (42 
        U.S.C. 4019(d)), the Administrator may recognize for credit 
        toward necessary local cost shares any properly documented 
        expenditures related to such project which may have been made 
        before the date of the grant award. Such expenditures may 
        include costs related to structure inspections and appraisals, 
        title searches, outreach to potentially affected property 
        owners, real estate counseling and other necessary assistance, 
        and planning for reuse of the properties in compliance with 
        this subsection.''.
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