National Flood Insurance Program Affordability Act
Bill: H.R.7202 | Sponsor: Rep. Cartwright, Matt (D-PA)
Policy area: Finance and Financial Sector

Summary:
National Flood Insurance Program Affordability Act
This bill requires the Federal Emergency Management Agency (FEMA) to provide discounts on National Flood Insurance Program coverage to low-income households and other entities. Specifically, the chargeable premium rate for an eligible primary residential dwelling must not exceed 1% of the median income of the area in which the property is located.

To establish a means-tested assistance program for national flood 
        insurance program policyholders, 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 ``National Flood Insurance Program 
Affordability Act''.

SEC. 2. MEANS-TESTED ASSISTANCE FOR NATIONAL FLOOD INSURANCE PROGRAM 
              POLICYHOLDERS.

    (a) In General.--The Administrator of the Federal Emergency 
Management Agency shall, not later than 1 year after the date of the 
enactment of this Act, establish a means-tested program under which the 
Administrator provides assistance to eligible policyholders in the form 
of graduated discounts for insurance costs with respect to covered 
properties.
    (b) Discounts.--The Administrator shall use amounts provided under 
this section to establish graduated discounts available to eligible 
policyholders under this section, with respect to covered properties, 
such that the chargeable premium rate for an eligible policyholder that 
applies for assistance under this section may not exceed 1 percent of 
the area median income for the area in which the property to which the 
policy applies is located.
    (c) Application.--To receive assistance under this Act, an eligible 
policyholder shall submit an application to the Administrator at such 
time, in such manner, and containing such information as the 
Administrator may reasonably require and assistance will no longer be 
available when the amounts appropriated pursuant to subsection (f) have 
been expended for a fiscal year.
    (d) Rulemaking and Guidance.--Not later than 1 year after the date 
of the enactment of this Act, the Administrator shall issue such 
regulations and guidance as the Administrator determines necessary to 
carry out this Act, including a hardship metric for small businesses 
and not-for-profit entities to qualify for assistance under this Act.
    (e) Report.--Not later than 1 year after the date of the enactment 
of this section, the Administrator shall submit to the Congress, a 
report that--
            (1) addresses the feasibility of making eligibility for 
        assistance under the program established under this Act based 
        on a consideration of an eligible policyholder's principal, 
        interest, taxes, and insurance instead of household income as a 
        percent of area medium income; and
            (2) outlines how the Administrator could use income 
        eligibility for other Federal programs to determine eligibility 
        for participation in the program established under this Act.
    (f) Appropriation.--
            (1) In general.--There is appropriated, annually, to the 
        Administrator, out of any money in the Treasury not otherwise 
        appropriated, $250,000,000, to carry out the program 
        established by the Administrator under subsection (a).
            (2) Expenditure requirement.--The Administrator shall, each 
        fiscal year, expend not less than 95 percent of the amount 
        appropriated for such fiscal year under paragraph (1).

SEC. 3. MONTHLY INSTALLMENT PAYMENT FOR PREMIUMS.

     Not later than 180 days after the date of enactment of this Act, 
the Administrator shall--
            (1) implement the requirement for monthly installment 
        payments of premiums provided under section 1308(g) of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)); or
            (2) submit to Congress an explanation of the reasons why 
        the Administrator cannot implement the requirement described in 
        paragraph (1) during that 180-day period.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Emergency Management Agency.
            (2) Covered property.--The term ``covered property'' 
        means--
                    (A) a primary residential dwelling designed; or
                    (B) personal property relating to a dwelling 
                described in subparagraph (A).
            (3) Eligible policyholder.--The term ``eligible 
        policyholder'' means--
                    (A) a person who--
                            (i) is a national flood insurance program 
                        policyholder on or after the date of the 
                        enactment of this Act; and
                            (ii) has a household income that is not 
                        more than 120 percent of the area median income 
                        for the area in which the property to which the 
                        policy applies is located;
                    (B) a business with not more than 100 employees 
                that--
                            (i) is a national flood insurance program 
                        policyholder on or after the date of the 
                        enactment of this Act; and
                            (ii) satisfies the hardship metric 
                        published by the Administrator under section 2; 
                        or
                    (C) a not-for-profit organization that--
                            (i) is a national flood insurance program 
                        policyholder on or after the date of the 
                        enactment of this Act; and
                            (ii) satisfies the hardship metric 
                        published by the Administrator under section 2.
            (4) Insurance costs.--The term ``insurance costs'' means, 
        with respect to a covered property for a year--
                    (A) risk premiums and fees estimated under section 
                1307 of the National Flood Insurance Act of 1968 (42 
                U.S.C. 4014) and charged under section 1308 of such Act 
                (42 U.S.C. 4015);
                    (B) surcharges assessed under sections 1304 and 
                1308A of such Act (42 U.S.C. 4011, 4015a); and
                    (C) any amount established under section 1310A(c) 
                of such Act (42 U.S.C. 4017a).
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