National Flood Insurance Program Reauthorization and Reform Act of 2021
Bill: H.R.5802 | Sponsor: Rep. Pallone, Frank, Jr. (D-NJ)
Policy area: Finance and Financial Sector

Summary:
National Flood Insurance Program Reauthorization and Reform Act of 2021
This bill generally revises the National Flood Insurance Program (NFIP) and reauthorizes the program through FY2026.
The bill addresses NFIP coverage, cost, and availability, including by
The bill also revises administrative provisions of the NFIP, including by
The bill sets forth requirements for Write Your Own companies related to reimbursements, agent commissions, and penalties for underpayment of claims. (A Write Your Own company writes and services federal standard flood insurance policies in its own name.)
The bill establishes state or tribal government revolving funds for flood mitigation activities and also provides for loans, grants, and other incentives regarding mitigation.

To reauthorize the National Flood Insurance Program, 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 
Reauthorization and Reform Act of 2021''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
               TITLE I--REAUTHORIZATION AND AFFORDABILITY

Sec. 101. Reauthorization.
Sec. 102. Cap on annual premium increases.
Sec. 103. Targeted means-tested assistance.
Sec. 104. Optional monthly installment premium payment plans.
Sec. 105. Study on business interruption coverage.
Sec. 106. Cooperative coverage fairness.
Sec. 107. Coverage limits.
Sec. 108. Study on participation rates.
Sec. 109. National Flood Insurance Act definitions regarding the Write 
                            Your Own Program.
                    TITLE II--MITIGATION AND MAPPING

Sec. 201. Mitigation for high-risk properties.
Sec. 202. Increased cost of compliance coverage.
Sec. 203. Flood mitigation assistance grants.
Sec. 204. Urban mitigation opportunities.
Sec. 205. Community Rating System Regional Coordinator.
Sec. 206. Mitigation loan program.
Sec. 207. Revolving loan funds.
Sec. 208. Mapping modernization.
Sec. 209. Levee-protected areas.
Sec. 210. Community-wide flood mitigation activities.
                          TITLE III--SOLVENCY

Sec. 301. Forbearance on NFIP interest payments.
Sec. 302. Cap on Write Your Own company compensation.
Sec. 303. Third-party service provider costs; transparency.
Sec. 304. Availability of NFIP claims data.
Sec. 305. Refusal of mitigation assistance.
Sec. 306. Multiple structure mitigation.
             TITLE IV--POLICYHOLDER PROTECTION AND FAIRNESS

Sec. 401. Earth movement fix and engineer standards.
Sec. 402. Coverage of pre-FIRM condominium basements and study on 
                            street raising.
Sec. 403. Guidance on remediation and policyholder duties.
Sec. 404. Appeal of decisions relating to flood insurance coverage.
Sec. 405. Accountability for underpayments and overpayments by Write 
                            Your Own companies.
Sec. 406. Policyholders' right to know.
Sec. 407. Exclusion of service providers from participation in the 
                            National Flood Insurance Program.
Sec. 408. Deadline for claim processing.
Sec. 409. No manipulation of engineer reports.
Sec. 410. Improved training of floodplain managers, agents, and 
                            adjusters.
Sec. 411. Flood insurance continuing education and training.
Sec. 412. Shifting of attorney fees and other expenses.
Sec. 413. Restriction on defense of claims litigation.
Sec. 414. Reforming use of proof of loss forms.
Sec. 415. Agent Advisory Council.
Sec. 416. Disclosure of flood risk information prior to transfer of 
                            property.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Emergency Management Agency.
            (2) National flood insurance program.--The term ``National 
        Flood Insurance Program'' means the program established under 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et 
        seq.).
            (3) National flood mitigation fund.--The term ``National 
        Flood Mitigation Fund'' means the fund established under 
        section 1367 of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4104d).
            (4) Write your own company.--The term ``Write Your Own 
        Company'' has the meaning given the term in section 1370(a) of 
        the National Flood Insurance Act of 1968 (42 U.S.C. 4121(a)), 
        as amended by section 109 of this Act.

               TITLE I--REAUTHORIZATION AND AFFORDABILITY

SEC. 101. REAUTHORIZATION.

    (a) In General.--
            (1) Financing.--Section 1309(a) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by 
        striking ``September 30, 2021'' and inserting ``September 30, 
        2026''.
            (2) Program expiration.--Section 1319 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
        ``September 30, 2021'' and inserting ``September 30, 2026''.
            (3) Retroactive effective date.--If this Act is enacted 
        after December 3, 2021, the amendments made by paragraphs (1) 
        and (2) shall take effect as if enacted on December 3, 2021.
    (b) Continued Operation During Lapse of Appropriations.--Section 
1310(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(f)) 
is amended--
            (1) by inserting ``(1)'' after ``(f)''; and
            (2) by adding at the end the following:
    ``(2)(A) In this paragraph, the term `period of a lapse in 
appropriations from the Fund' means a period, on or after the first day 
of a fiscal year, during which an appropriation Act for the fiscal year 
with respect to the Fund has not been enacted and continuing 
appropriations are not in effect for the fiscal year with respect to 
the Fund.
    ``(B) Notwithstanding paragraph (1), during a period of a lapse in 
appropriations from the Fund, amounts in the Fund not otherwise 
appropriated shall be available to the Administrator to carry out the 
flood insurance program under this title, subject to the same terms and 
conditions (except with respect to the period of availability), and in 
an amount not greater than the rate for operations, provided for the 
Fund in the most recently enacted regular or continuing appropriation 
Act.
    ``(C) Amounts in the Fund shall be available under subparagraph (B) 
for a fiscal year during the period beginning on the first day of a 
period of a lapse in appropriations from the Fund during the fiscal 
year and ending on the date on which the regular appropriation Act for 
the fiscal year with respect to the Fund is enacted (whether or not 
such law makes amounts available from the Fund) or a law making 
continuing appropriations with respect to the Fund is enacted, as the 
case may be.
    ``(D) Expenditures and obligations made under this paragraph shall 
be charged to the Fund whenever a regular appropriation Act, or a law 
making continuing appropriations, with respect to the Fund is enacted 
for the applicable fiscal year.''.

SEC. 102. CAP ON ANNUAL PREMIUM INCREASES.

    (a) Definition.--In this section, the term ``covered cost''--
            (1) means--
                    (A) the amount of an annual premium with respect to 
                any policy for flood insurance under the National Flood 
                Insurance Program;
                    (B) any surcharge imposed with respect to a policy 
                described in subparagraph (A) (other than a surcharge 
                imposed under section 1304(b) of the National Flood 
                Insurance Act of 1968 (42 U.S.C. 4011(b))), including a 
                surcharge imposed under section 1308A(a) of that Act 
                (42 U.S.C. 4015a(a)); and
                    (C) a fee described in paragraph (1)(B)(iii) or (2) 
                of section 1307(a) of the National Flood Insurance Act 
                of 1968 (42 U.S.C. 4014(a)); and
            (2) does not include any cost associated with the purchase 
        of insurance under section 1304(b) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4011(b)), including any 
        surcharge that relates to insurance purchased under such 
        section 1304(b).
    (b) Limitation on Increases.--
            (1) Limitation.--
                    (A) In general.--During the 5-year period beginning 
                on the date of enactment of this Act, notwithstanding 
                section 1308(e) of the National Flood Insurance Act of 
                1968 (42 U.S.C. 4015(e)), and subject to subparagraph 
                (B), the Administrator may not, in any year, increase 
                the amount of any covered cost by an amount that is 
                more than 9 percent, as compared with the amount of the 
                covered cost during the previous year, except where the 
                increase in the covered cost relates to an exception 
                under paragraph (1)(C)(iii) of such section 1308(e).
                    (B) Decrease of amount of deductible or increase in 
                amount of coverage.--In the case of a policyholder 
                described in section 1308(e)(1)(C)(ii) of the National 
                Flood Insurance Act of 1968 (42 U.S.C. 
                4015(e)(1)(C)(ii)), the Administrator shall establish a 
                process by which the Administrator determines an 
                increase in covered costs for the policyholder that 
                is--
                            (i) proportional to the relative change in 
                        risk based on the action taken by the 
                        policyholder; and
                            (ii) in compliance with subparagraph (A).
            (2) New rating systems.--
                    (A) Classification.--With respect to a property, 
                the limitation under paragraph (1) shall remain in 
                effect for each year until the covered costs with 
                respect to the property reflect full actuarial rates, 
                without regard to whether, at any time until the year 
                in which those covered costs reflect full actuarial 
                rates, the property is rated or classified under the 
                Risk Rating 2.0 methodology (or any substantially 
                similar methodology).
                    (B) New policyholder.--If a property to which the 
                limitation under paragraph (1) applies is sold before 
                the covered costs for the property reflect full 
                actuarial rates determined under the Risk Rating 2.0 
                methodology (or any substantially similar methodology), 
                that limitation shall remain in effect for each year 
                until the year in which those full actuarial rates 
                takes effect.
    (c) Rule of Construction.--Nothing in subsection (b) may be 
construed as prohibiting the Administrator from reducing, in any year, 
the amount of any covered cost, as compared with the amount of the 
covered cost during the previous year.
    (d) Average Historical Loss Year.--Section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by striking 
subsection (h) and inserting the following:
    ``(h) Rule of Construction.--For purposes of this section, the 
calculation of an `average historical loss year' shall be computed in 
accordance with generally accepted actuarial principles.''.
    (e) Disclosure With Respect to the Affordability Standard.--Section 
1308(j) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(j)) 
is amended, in the second sentence, by inserting ``and shall include in 
the report the number of those exceptions as of the date on which the 
Administrator submits the report and the location of each policyholder 
insured under those exceptions, organized by county and State'' after 
``of the Senate''.

SEC. 103. TARGETED MEANS-TESTED ASSISTANCE.

    (a) Means-Tested Program.--
            (1) In general.--Chapter I of the National Flood Insurance 
        Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting 
        after section 1308A (42 U.S.C. 4015a) the following:

``SEC. 1308B. FLOOD INSURANCE ASSISTANCE.

    ``(a) Definitions.--In this section:
            ``(1) Covered property.--The term `covered property' 
        means--
                    ``(A) a primary residential dwelling designed for 
                the occupancy of from 1 to 4 families; or
                    ``(B) personal property relating to a dwelling 
                described in subparagraph (A).
            ``(2) Eligible policyholder.--The term `eligible 
        policyholder' means a policyholder with 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.
            ``(3) Housing expenses.--The term `housing expenses' means, 
        with respect to a household, the total amount that the 
        household spends in a year on--
                    ``(A) mortgage payments or rent;
                    ``(B) property taxes;
                    ``(C) homeowners insurance; and
                    ``(D) premiums for flood insurance under the 
                national flood insurance program.
            ``(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 and charged under section 1308;
                    ``(B) surcharges assessed under sections 1304 and 
                1308A; and
                    ``(C) any amount established under section 
                1310A(c).
    ``(b) Authority.--Subject to the availability of appropriations, 
the Administrator is authorized to carry out 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.
    ``(c) Eligibility.--To determine eligibility for means-tested 
assistance under this section, the Administrator may accept any of the 
following with respect to an eligible policyholder:
            ``(1) Income verification from the National Directory of 
        New Hires established under section 453(i) of the Social 
        Security Act (42 U.S.C. 653(i)).
            ``(2) A self-certification of eligibility by the eligible 
        policyholder that is provided under penalty of perjury pursuant 
        to section 1746 of title 28, United States Code.
            ``(3) Any other method identified by the Administrator in 
        interim guidance, or a final rule, issued under subsection (e).
    ``(d) Discount.--The Administrator may establish graduated 
discounts available to eligible policyholders under this section, which 
shall be based on the following factors:
            ``(1) The percentage by which the household income of an 
        eligible policyholder is equal to, or less than, 120 percent of 
        the area median income for the area in which the property to 
        which the policy applies is located.
            ``(2) The housing expenses of an eligible policyholder.
            ``(3) The number of eligible policyholders participating in 
        the program established under this section.
            ``(4) The availability of funding.
            ``(5) Any other factor that the Administrator finds 
        reasonable and necessary to carry out the purposes of this 
        section.
    ``(e) Implementation.--
            ``(1) In general.--The Administrator shall issue final 
        rules to implement this section.
            ``(2) Interim guidance.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this section, the Administrator 
                shall issue interim guidance to implement this section, 
                which shall--
                            ``(i) include--
                                    ``(I) a description of how the 
                                Administrator will determine--
                                            ``(aa) eligibility for 
                                        households to participate in 
                                        the program established under 
                                        this section; and
                                            ``(bb) assistance levels 
                                        for eligible households to 
                                        which assistance is provided 
                                        under this section;
                                    ``(II) the methodology that the 
                                Administrator will use to determine the 
                                amount of assistance provided to 
                                eligible households under this section; 
                                and
                                    ``(III) any requirements to which 
                                eligible policyholders to which 
                                assistance is provided under this 
                                section will be subject; and
                            ``(ii) expire on the later of--
                                    ``(I) the date that is 84 months 
                                after the date of enactment of this 
                                section; or
                                    ``(II) the date on which the final 
                                rules issued under paragraph (1) take 
                                effect.
                    ``(B) Rule of construction.--Nothing in 
                subparagraph (A) may be construed to preclude the 
                Administrator from amending the interim guidance issued 
                under that subparagraph.
    ``(f) Collection of Demographic Information.--The Administrator, in 
order to evaluate and monitor the effectiveness of this section, and to 
comply with the reporting requirements under subsection (g), may 
request demographic information, and other information, with respect to 
an eligible policyholder to which assistance is provided under this 
section, which may include--
            ``(1) the income of the eligible policyholder, as compared 
        with the area median income for the area in which the property 
        to which the policy applies is located; and
            ``(2) demographic characteristics of the eligible 
        policyholder, including the race and ethnicity of the eligible 
        policyholder.
    ``(g) Reports to Congress.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of this section, and biennially thereafter, the 
        Administrator shall submit to Congress a report regarding the 
        implementation and effectiveness of this section.
            ``(2) Contents.--Each report submitted under paragraph (1) 
        shall include information regarding, for the period covered by 
        the report--
                    ``(A) the distribution of household area median 
                income for eligible policyholders to which assistance 
                is provided under this section;
                    ``(B) the number of eligible policyholders to which 
                assistance is provided under this section, which shall 
                be disaggregated by income and demographic 
                characteristics;
                    ``(C) the cost of providing assistance under this 
                section; and
                    ``(D) the average amount of assistance provided to 
                an eligible policyholder under this section, which 
                shall be disaggregated as described in subparagraph 
                (B).
    ``(h) Risk Communication.--For the purposes of the communication 
required under section 1308(l), the Administrator shall provide to an 
eligible policyholder to which assistance is provided under this 
section a full flood risk determination with respect to the property of 
the eligible policyholder, which shall reflect the insurance costs with 
respect to the property before that assistance is provided.
    ``(i) Funding.--
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated to the Administrator to carry out this 
        section--
                    ``(A) $250,000,000 for fiscal year 2022;
                    ``(B) $340,000,000 for fiscal year 2023;
                    ``(C) $400,000,000 for fiscal year 2024;
                    ``(D) $500,000,000 for fiscal year 2025; and
                    ``(E) $600,000,000 for fiscal year 2026.
            ``(2) Notification.--If, in a fiscal year, the 
        Administrator determines that the amount made available to 
        carry out this section is insufficient to provide assistance 
        under this section, the Administrator shall submit to Congress 
        a notification of the remaining amounts necessary to provide 
        that assistance for that fiscal year.
            ``(3) Distribution of premium.--With respect to the amount 
        of the discounts provided under this section in a fiscal year, 
        and any administrative expenses incurred in carrying out this 
        section for that fiscal year, the Administrator shall, from 
        amounts made available to carry out this section for that 
        fiscal year, deposit in the National Flood Insurance Fund 
        established under section 1310 an amount equal to those 
        discounts and administrative expenses, except to the extent 
        that section 1310A applies to any portion of those discounts or 
        administrative expenses, in which case the Administrator shall 
        deposit an amount equal to those amounts to which section 1310A 
        applies in the National Flood Insurance Reserve Fund 
        established under section 1310A.''.
            (2) Use of savings.--In addition to any amounts made 
        available to the Administrator to carry out section 1308B of 
        the National Flood Insurance Act of 1968, as added by paragraph 
        (1), the Administrator shall use any amounts saved as a direct 
        result of the amendments made by section 302(a) of this Act to 
        carry out such section 1308B.
    (b) National Flood Insurance Act of 1968.--The National Flood 
Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is amended--
            (1) in section 1308(e) (42 U.S.C. 4015(e))--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by striking ``or'' 
                        at the end;
                            (ii) in subparagraph (C)(iii), by adding 
                        ``or'' at the end; and
                            (iii) by adding at the end the following:
                    ``(D) in the case of a property with respect to 
                which assistance is provided under section 1308B, if--
                            ``(i) the applicable policyholder is no 
                        longer eligible to receive assistance under 
                        that section;
                            ``(ii) the assistance so provided has been 
                        decreased under that section; or
                            ``(iii) the Administrator is not 
                        authorized, or lacks appropriated funds, to 
                        carry out that section;''; and
                    (B) in paragraph (3), by striking ``period; and'' 
                and inserting the following: ``period, except in the 
                case of a property with respect to which assistance is 
                provided under section 1308B if a condition described 
                in clause (i), (ii), or (iii) of paragraph (1)(D) is 
                applicable; and''; and
            (2) in section 1366(d) (42 U.S.C. 4104c(d))--
                    (A) by redesignating paragraph (3) as paragraph 
                (4); and
                    (B) by inserting after paragraph (2) the following:
            ``(3) Flood insurance assistance.--In the case of 
        mitigation activities to structures insured by policyholders 
        that are eligible for assistance under section 1308B, in an 
        amount up to 100 percent of all eligible costs.''.
    (c) Information Comparisons With the National Directory of New 
Hires for Flood Insurance Assistance Income Verification.--Section 
453(j) of the Social Security Act (42 U.S.C. 653(j)) is amended by 
adding at the end the following new paragraph:
            ``(12) Information comparisons for flood insurance 
        assistance.--
                    ``(A) Furnishing of information by fema.--The 
                Administrator of the Federal Emergency Management 
                Agency (in this paragraph, referred to as the 
                `Administrator') shall furnish to the Secretary, on 
                such periodic basis as determined by the Administrator 
                in consultation with the Secretary, information in the 
                custody of the Administrator for comparison with 
                information in the National Directory of New Hires, in 
                order to obtain information in such Directory with 
                respect to individuals who are applying for, or 
                receiving benefits under, section 1308B of the National 
                Flood Insurance Act of 1968.
                    ``(B) Requirement to seek minimum information.--The 
                Administrator shall seek information pursuant to this 
                paragraph only to the extent necessary to verify the 
                employment and income of individuals described in 
                subparagraph (A).
                    ``(C) Duties of the secretary.--
                            ``(i) Information disclosure.--The 
                        Secretary, in cooperation with the 
                        Administrator, shall compare information in the 
                        National Directory of New Hires with 
                        information provided by the Administrator with 
                        respect to individuals described in 
                        subparagraph (A), and shall disclose 
                        information in such Directory regarding such 
                        individuals to the Administrator, in accordance 
                        with this paragraph, for the purposes specified 
                        in this paragraph.
                            ``(ii) Condition on disclosure.--The 
                        Secretary shall make disclosures in accordance 
                        with clause (i) only to the extent that the 
                        Secretary determines that such disclosures do 
                        not interfere with the effective operation of 
                        the program under this part.
                    ``(D) Use of information by fema.--The 
                Administrator may use information resulting from a data 
                match pursuant to this paragraph only--
                            ``(i) for the purpose of verifying the 
                        employment and income of individuals described 
                        in subparagraph (A); and
                            ``(ii) after removal of personal 
                        identifiers, to conduct analyses of the 
                        employment and income reporting of individuals 
                        described in subparagraph (A).
                    ``(E) Disclosure of information by fema.--
                            ``(i) Purpose of disclosure.--The 
                        Administrator may make a disclosure under this 
                        subparagraph only for the purpose of verifying 
                        the employment and income of individuals 
                        described in subparagraph (A).
                            ``(ii) Disclosures permitted.--Subject to 
                        clause (iii), the Administrator may disclose 
                        information resulting from a data match 
                        pursuant to this paragraph only to contractors 
                        of the Federal Emergency Management Agency, 
                        private insurance companies participating in 
                        the Write Your Own Program of the Federal 
                        Emergency Management Agency, the Inspector 
                        General of the Department of Homeland Security, 
                        and the Attorney General, in connection with 
                        the administration of a program described in 
                        subparagraph (A). Information obtained by the 
                        Administrator pursuant to this paragraph shall 
                        not be made available under section 552 of 
                        title 5, United States Code.
                            ``(iii) Conditions on disclosure.--
                        Disclosures under this paragraph shall be--
                                    ``(I) made in accordance with data 
                                security and control policies 
                                established by the Administrator and 
                                approved by the Secretary;
                                    ``(II) subject to audit in a manner 
                                satisfactory to the Secretary; and
                                    ``(III) subject to the sanctions 
                                under subsection (l)(2).
                            ``(iv) Restrictions on redisclosure.--A 
                        person or entity to which information is 
                        disclosed under this subparagraph may use or 
                        disclose such information only as needed for 
                        verifying the employment and income of 
                        individuals described in subparagraph (A), 
                        subject to the conditions in clause (iii) and 
                        such additional conditions as agreed to by the 
                        Secretary and the Administrator.
                    ``(F) Reimbursement of hhs costs.--The 
                Administrator shall reimburse the Secretary, in 
                accordance with subsection (k)(3), for the costs 
                incurred by the Secretary in furnishing the information 
                requested under this paragraph.
                    ``(G) Consent.--The Administrator shall not seek, 
                use, or disclose information under this paragraph 
                relating to an individual without the prior written 
                consent of such individual (or of a person legally 
                authorized to consent on behalf of such individual).''.

SEC. 104. OPTIONAL MONTHLY INSTALLMENT PREMIUM PAYMENT PLANS.

    Section 1308(g) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015(g)) is amended--
            (1) by striking ``With respect to'' and inserting the 
        following:
            ``(1) Annual or monthly option.--Subject to paragraph (2), 
        with respect to''; and
            (2) by adding at the end the following:
            ``(2) Monthly installment.--With respect to a policyholder 
        that opts under paragraph (1) to pay premiums on a monthly 
        basis, the Administrator may charge the policyholder an annual 
        fee of not more than $15.
            ``(3) Exemption from rule making; pilot program.--During 
        the period beginning on the date of enactment of this paragraph 
        and ending on the date on which the Administrator promulgates 
        regulations carrying out paragraph (1), the Administrator may, 
        notwithstanding any other provision of law--
                    ``(A) adopt policies and procedures to carry out 
                that paragraph without--
                            ``(i) undergoing notice and comment rule 
                        making under section 553 of title 5, United 
                        States Code; or
                            ``(ii) conducting regulatory analyses 
                        otherwise required by statute, regulation, or 
                        Executive order; or
                    ``(B) carry out that paragraph by establishing a 
                pilot program that gradually implements the 
                requirements of that paragraph.''.

SEC. 105. STUDY ON BUSINESS INTERRUPTION COVERAGE.

    (a) In General.--The Administrator shall conduct a study on the 
feasibility and soundness of offering coverage for interruption 
business losses caused by a flood under the National Flood Insurance 
Program (referred to in this section as ``business interruption 
coverage'').
    (b) Contents.--In conducting the study under subsection (a), the 
Administrator shall, at a minimum--
            (1) evaluate insurance industry best practices for offering 
        business interruption coverage, including the types of coverage 
        provided and the utilization rate;
            (2) estimate the potential risk premium rates for business 
        interruption coverage based on the flood risk reflected in the 
        flood insurance rate map or other risk metrics in effect at the 
        time of purchase;
            (3) analyze the operational and administrative expenses 
        associated with providing business interruption coverage and 
        adjusting claims;
            (4) identify potential obstacles that may prevent the 
        Administrator from offering business interruption coverage;
            (5) evaluate the benefits of providing business 
        interruption coverage;
            (6) analyze any potential impacts on the financial position 
        of the National Flood Insurance Program; and
            (7) develop a feasibility implementation plan and projected 
        timelines for offering business interruption coverage.
    (c) Availability of Experts.--In conducting the study under 
subsection (a), the Administrator may accept and utilize the personnel 
and services of any other Federal agency, and appoint and fix the 
compensation of temporary personnel without regard to the provisions of 
title 5, United States Code, governing appointments in the competitive 
service, or employ experts and consultants in accordance with the 
provisions of section 3109 of such title, without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of such title 
relating to classification and General Schedule pay rates.
    (d) Deadline.--The Administrator shall complete the study required 
under subsection (a) not later than September 30 of the second full 
fiscal year after the date of enactment of this Act.

SEC. 106. COOPERATIVE COVERAGE FAIRNESS.

    (a) In General.--Section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013) is amended by adding at the end the following:
    ``(e) Cooperatives.--
            ``(1) Definition.--In this subsection, the term 
        `cooperative building' has the meaning given the term in 
        section 1312(d).
            ``(2) Equal treatment with condominiums.--Notwithstanding 
        any other provision of law, an owner of a share of a 
        cooperative building shall be eligible to purchase flood 
        insurance coverage under the national flood insurance program 
        on the same terms as a condominium owner.''.
    (b) Payment of Claims.--Section 1312 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4019) is amended--
            (1) in subsection (c)--
                    (A) in the subsection heading, by inserting ``and 
                Cooperative'' after ``Condominium'';
                    (B) by inserting ``or owners of a share of a 
                cooperative building'' after ``condominium owners''; 
                and
                    (C) by inserting ``or cooperative association'' 
                after ``condominium association'' each place that term 
                appears; and
            (2) by adding at the end the following:
    ``(d) Definitions.--In this section, the terms `cooperative 
association' and `cooperative building' have the meanings given the 
terms by the Administrator.''.

SEC. 107. COVERAGE LIMITS.

    (a) In General.--Section 1306 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4013), as amended by section 106(a), is amended--
            (1) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``In addition to any other terms and 
                conditions under subsection (a), such regulations'' and 
                inserting ``The Administrator'';
                    (B) in paragraph (2)--
                            (i) by striking ``shall be made'' and 
                        inserting ``may be made''; and
                            (ii) by striking ``$250,000'' and inserting 
                        ``the baseline amount'';
                    (C) in paragraph (3)--
                            (i) by striking ``shall be made'' and 
                        inserting ``may be made''; and
                            (ii) by striking ``$100,000'' and inserting 
                        ``50 percent of the baseline amount''; and
                    (D) in paragraph (4)--
                            (i) by striking ``shall be made'' each 
                        place that term appears and inserting ``may be 
                        made''; and
                            (ii) by striking ``$500,000'' each place 
                        that term appears and inserting ``200 percent 
                        of the baseline amount''; and
            (2) by adding at the end the following:
    ``(f) Definition.--Subject to paragraph (2), in this section, the 
term `baseline amount' means an amount determined by the Administrator 
that is equal to the maximum original principal obligation of a 
conventional mortgage secured by a single-family residence that may be 
purchased by the Federal National Mortgage Association, as established 
under the seventh sentence of section 302(b)(2) of the Federal National 
Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)), which the 
Administrator may not--
            ``(1) increase more than once every 5 years;
            ``(2) increase with respect to any particular property 
        pursuant to the 11th or 12th sentence of such section 
        302(b)(2); or
            ``(3) decrease.''.
    (b) Authority of Administrator To Sell Policies.--The Administrator 
may sell a policy for flood insurance under the National Flood 
Insurance Program that meets the requirements of paragraphs (2), (3), 
and (4) of section 1306(b) of the National Flood Insurance Act of 1968 
(42 U.S.C. 4013(b)), as amended by subsection (a), without regard to--
            (1) section 61.6 of title 44, Code of Federal Regulations, 
        as in effect on the day before the date of enactment of this 
        Act; or
            (2) any other provision of law.

SEC. 108. STUDY ON PARTICIPATION RATES.

    (a) Definitions.--In this section--
            (1) the term ``500-year floodplain'' has the meaning given 
        the term in section 100202(a) of the Biggert-Waters Flood 
        Insurance Reform Act of 2012 (40 U.S.C. 4004(a));
            (2) the terms ``Federal agency lender'', ``improved real 
        estate'', and ``regulated lending institution'' have the 
        meanings given those terms in section 3(a) of the Flood 
        Disaster Protection Act of 1973 (42 U.S.C. 4003(a)); and
            (3) the term ``property with a Federally backed mortgage'' 
        means improved real estate or a mobile home securing a loan 
        that was--
                    (A) made by a regulated lending institution or 
                Federal agency lender; or
                    (B) purchased by the Federal National Mortgage 
                Association or the Federal Home Loan Mortgage 
                Corporation.
    (b) Study.--The Comptroller General of the United States shall 
conduct a study that proposes to address, through programmatic and 
regulatory changes, how to increase the rate at which properties in the 
United States are covered by flood insurance.
    (c) Considerations.--In conducting the study required under 
subsection (b), the Comptroller General of the United States shall--
            (1) consider--
                    (A) expanding participation in the National Flood 
                Insurance Program beyond areas having special flood 
                hazards to areas of moderate or minimum risk with 
                respect to flooding;
                    (B) automatically enrolling consumers in the 
                National Flood Insurance Program and providing those 
                consumers with the opportunity to decline such 
                enrollment; and
                    (C) bundling flood insurance coverage that 
                diversifies risk across all or multiple forms of peril; 
                and
            (2) determine--
                    (A) the percentage of properties with Federally 
                backed mortgages located in an area having special 
                flood hazards that are covered by flood insurance that 
                satisfies the requirement under section 102(b) of the 
                Flood Disaster Protection Act of 1973 (42 U.S.C. 
                4012a(b)); and
                    (B) the percentage of properties with Federally 
                backed mortgages located in the 500-year floodplain 
                that are covered by flood insurance that would satisfy 
                the requirement described in subparagraph (A) if that 
                requirement applied to such properties.
    (d) Report.--Not later than 18 months after the date of enactment 
of this Act, the Comptroller General of the United States shall submit 
to the Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of Representatives 
a report regarding the results of the study conducted under subsection 
(b).

SEC. 109. NATIONAL FLOOD INSURANCE ACT DEFINITIONS REGARDING THE WRITE 
              YOUR OWN PROGRAM.

    Section 1370(a) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4121(a)) is amended--
            (1) in paragraph (14), by striking ``and'' at the end;
            (2) in paragraph (15), by striking the period at the end; 
        and
            (3) by adding at the end the following:
            ``(16) the term `Write Your Own Program' means the program 
        under which the Federal Emergency Management Agency enters into 
        a standard arrangement with private property insurance 
        companies to--
                    ``(A) sell contracts for Federal flood insurance 
                under their own business lines of insurance; and
                    ``(B) adjust and pay claims arising under the 
                contracts described in subparagraph (A); and
            ``(17) the term `Write Your Own Company' means a private 
        property insurance company that participates in the Write Your 
        Own Program.''.

                    TITLE II--MITIGATION AND MAPPING

SEC. 201. MITIGATION FOR HIGH-RISK PROPERTIES.

    (a) In General.--Section 203 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5133) is amended by 
adding at the end the following:
    ``(n) Flood Mitigation Activities.--The President shall set aside 
from the Disaster Relief Fund an amount equal to 10 percent of the 
average amount appropriated to the Fund during the preceding 10 fiscal 
years to provide assistance for mitigation activities under section 
1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) 
for--
            ``(1) severe repetitive loss structures; and
            ``(2) properties insured under the national flood insurance 
        program with the largest increase in the actuarial risk for the 
        property compared to the actuarial risk for the previous fiscal 
        year as a result of Risk Rating 2.0, as in effect on October 1, 
        2021.''.
    (b) Applicability.--The amendment made to section 203 of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5133) by subsection (a) shall apply to funds appropriated on or after 
the date of enactment of this Act.
    (c) Technical and Conforming Amendment.--Effective on October 5, 
2023, section 203 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5133) is amended by redesignating 
subsection (n), as added by subsection (a) of this section, as 
subsection (m).

SEC. 202. INCREASED COST OF COMPLIANCE COVERAGE.

    Section 1304(b) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4011(b)) is amended--
            (1) in paragraph (4), by redesignating subparagraphs (A) 
        through (D) as clauses (i) through (iv), respectively, and 
        adjusting the margins accordingly;
            (2) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively, and adjusting the 
        margins accordingly;
            (3) in subparagraph (C), as so redesignated, by striking 
        the period at the end and inserting a semicolon;
            (4) by redesignating paragraph (4) as subparagraph (F), and 
        adjusting the margins accordingly;
            (5) by inserting after subparagraph (C), as so 
        redesignated, the following:
                    ``(D) properties identified by the Administrator as 
                priorities for mitigation activities before the 
                occurrence of damage to or loss of property which is 
                covered by flood insurance;
                    ``(E) properties outside an area having special 
                flood hazards if the communities in which the 
                properties are located have, under section 1361, 
                established land use and control measures for the areas 
                in which the properties are located; and'';
            (6) by inserting before ``The national flood insurance 
        program'' the following: ``(1) In general.--'';
            (7) in the flush text following subparagraph (F)(iv), as so 
        redesignated, by striking ``The Administrator'' and inserting 
        the following:
    ``(2) Premium.--The Administrator''; and
            (8) by adding at the end the following:
    ``(3) Amount of Coverage.--Each policy for flood insurance coverage 
made available under this title shall provide coverage under this 
subsection having an aggregate liability for any single property of 
$60,000.
    ``(4) Eligible Mitigation Activities.--
            ``(A) In general.--Eligible mitigation methods the cost of 
        which is covered by coverage provided under this subsection 
        shall include--
                    ``(i) alternative methods of mitigation identified 
                in the guidelines issued pursuant to section 1361(d);
                    ``(ii) pre-disaster mitigation projects for 
                eligible structures; and
                    ``(iii) costs associated with the purchase, 
                clearing, and stabilization of property that is part of 
                an acquisition or relocation project that complies with 
                subparagraph (B).
            ``(B) Acquisition and relocation project eligibility and 
        requirements.--
                    ``(i) In general.--An acquisition or relocation 
                project shall be eligible to receive assistance 
                pursuant to subparagraph (A)(iii) only if--
                            ``(I) any property acquired, accepted, or 
                        from which a structure will be removed shall be 
                        dedicated and maintained in perpetuity for a 
                        use that is compatible with open space, 
                        recreational, or wetland and natural floodplain 
                        management practices; and
                            ``(II) any new structure erected on such 
                        property will be--
                                    ``(aa) a public facility that is 
                                open on all sides and functionally 
                                related to a designated open space;
                                    ``(bb) a restroom; or
                                    ``(cc) a structure that the 
                                Administrator approves in writing 
                                before the commencement of the 
                                construction of the structure.
                    ``(ii) Further assistance.--If an acquisition or 
                relocation project is assisted pursuant to subparagraph 
                (A)(iii)--
                            ``(I) no person may apply to a Federal 
                        entity for disaster assistance with regard to 
                        any property acquired, accepted, or from which 
                        a structure was removed as part of such 
                        acquisition or relocation project; and
                            ``(II) no Federal entity may provide 
                        disaster assistance for such property.
                    ``(iii) Requirement to maintain flood insurance 
                coverage.--
                            ``(I) In general.--Notwithstanding any 
                        other provision of law, any assisted structure 
                        shall, at all times, maintain insurance against 
                        flood damage, in accordance with Federal law, 
                        for the life of such structure.
                            ``(II) Transfer of property.--
                                    ``(aa) Duty to notify.--If any part 
                                of a property on which an assisted 
                                structure is located is transferred, 
                                the transferor shall, not later than 
                                the date on which such transfer occurs, 
                                notify the transferee in writing, 
                                including in all documents evidencing 
                                the transfer of ownership of the 
                                property, that such transferee is 
                                required to--
                                            ``(AA) obtain flood 
                                        insurance in accordance with 
                                        applicable Federal law with 
                                        respect to such assisted 
                                        structure, if such structure is 
                                        not so insured on the date on 
                                        which the structure is 
                                        transferred; and
                                            ``(BB) maintain flood 
                                        insurance in accordance with 
                                        applicable Federal law with 
                                        respect to such structure.
                                    ``(bb) Failure to notify.--If a 
                                transferor fails to make a notification 
                                in accordance with item (aa) and such 
                                assisted structure is damaged by a 
                                flood disaster, the transferor shall 
                                pay the Federal Government an amount 
                                equal to the amount of any disaster 
                                relief provided by the Federal 
                                Government with respect to such 
                                assisted structure.
                            ``(III) Assisted structure defined.--For 
                        the purposes of this clause, the term `assisted 
                        structure' means a structure on property that 
                        is part of an acquisition or relocation project 
                        assisted pursuant to subparagraph (A) that was, 
                        as part of such acquisition or relocation 
                        project--
                                    ``(aa) altered;
                                    ``(bb) improved;
                                    ``(cc) replaced;
                                    ``(dd) repaired; or
                                    ``(ee) restored.
            ``(C) Eligible structure defined.--For purposes of this 
        paragraph, the term `eligible structure' means any structure 
        that--
                    ``(i) was constructed in compliance with the Flood 
                Insurance Rate Map and local building and zoning codes 
                in effect on the date of construction of the structure; 
                and
                    ``(ii) has not previously been altered, improved, 
                replaced, or repaired using assistance provided under 
                this subsection.
    ``(5) Treatment of Coverage Limits.--Any amount of coverage 
provided for a property pursuant to this subsection shall not be 
considered or counted for purposes of any limitation on coverage 
applicable to such property under section 1306(b) and any claim on such 
coverage shall not be considered a claim for purposes of section 
1307(h) or subsection (a)(3) or (h)(3) of section 1366.
    ``(6) Implementation.--Notwithstanding any other provision of law, 
the Administrator may implement this subsection by adopting 1 or more 
standard endorsements to the Standard Flood Insurance Policy by 
publication of such standards in the Federal Register, or by comparable 
means.''.

SEC. 203. FLOOD MITIGATION ASSISTANCE GRANTS.

    (a) Flood Mitigation Assistance Grant Program Priority.--Section 
1366 of the National Flood Insurance Act (42 U.S.C. 4104c) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1), (2), and (3) 
                as subparagraphs (A), (B), and (C), respectively, and 
                adjusting the margins accordingly;
                    (B) in the second sentence of the matter preceding 
                subparagraph (A), as so redesignated, by striking 
                ``assistance shall be'' and inserting the following: 
                ``assistance shall--
            ``(1) be'';
                    (C) in paragraph (1)(C), as so redesignated, by 
                striking the period at the end and inserting ``; and''; 
                and
                    (D) by adding at the end the following:
            ``(2) in addition to the requirement under paragraph 
        (1)(C), give priority to properties--
                    ``(A) that are repetitive loss structures;
                    ``(B) with respect to which the Administrator makes 
                a determination that the premium rates with respect to 
                a policy for flood insurance coverage under this 
                title--
                            ``(i) are unaffordable; or
                            ``(ii) will soon become unaffordable as a 
                        result of a risk adjustment under Risk Rating 
                        2.0, as in effect on the date of that 
                        determination; and
                    ``(C) for which aggregate losses exceed the 
                replacement value of the properties.''; and
            (2) in subsection (h), by adding at the end the following:
            ``(4) Unaffordable.--The term `unaffordable' means, with 
        respect to the premium rates for a policy for flood insurance 
        coverage under this title, that, in a year, those rates are in 
        such an amount that the housing expenses (as defined in section 
        1308B(a)) of the household that is the subject of the policy 
        are, for that year, more than 30 percent of the adjusted gross 
        income (as defined in section 62 of the Internal Revenue Code 
        of 1986).''.
    (b) Additional Mitigation Assistance.--
            (1) Appropriations from general fund of treasury.--For each 
        of the first 5 full fiscal years after the date of enactment of 
        this Act, there is authorized to be appropriated $1,000,000,000 
        to the National Flood Mitigation Fund to provide mitigation 
        assistance under this subsection.
            (2) Rule of construction.--The authorization of 
        appropriations under subparagraph (A) shall not be construed to 
        authorize the transfer or crediting to the National Flood 
        Mitigation Fund of any amounts from the National Flood 
        Insurance Fund.

SEC. 204. URBAN MITIGATION OPPORTUNITIES.

    (a) Mitigation Strategies.--Section 1361(d)(1) 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 following:
                    ``(C) with respect to buildings in dense urban 
                environments, methods that can be deployed on a block 
                or neighborhood scale; and
                    ``(D) elevation of mechanical systems; and''.
    (b) Mitigation Credit.--Section 1308(k) 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 
        ``shall--
            ``(1) take into account'';
            (2) in paragraph (1), as so designated, by striking the 
        period at the end and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(2) offer a reduction of the risk premium rate charged to 
        a policyholder in an amount that is not less than 10 percent of 
        that rate if the policyholder implements any mitigation method 
        described in paragraph (1).''.

SEC. 205. COMMUNITY RATING SYSTEM REGIONAL COORDINATOR.

    Section 1315(b) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4022(b)) is amended by adding at the end the following:
            ``(5) Regional coordinator.--
                    ``(A) In general.--The Administrator shall appoint 
                a regional coordinator in each region served by a 
                Regional Office (as defined in section 501 of the 
                Homeland Security Act of 2002 (6 U.S.C. 311)) to 
                provide technical assistance to small communities to 
                enable those communities to effectively participate in 
                and benefit from the community rating system program.
                    ``(B) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as may be 
                necessary to carry out this paragraph, which shall 
                remain available until expended.''.

SEC. 206. MITIGATION LOAN PROGRAM.

    (a) Definition.--In this section, the term ``mitigation measure'' 
means, with respect to a structure, a measure undertaken to reduce the 
risk of flood damage to the structure.
    (b) Establishment.--The Administrator may establish a pilot program 
through which the Administrator may provide low-interest loans to 
policyholders under the National Flood Insurance Program for the 
purposes described in subsection (c).
    (c) Purposes of Loans.--A loan provided to a policyholder under the 
pilot program established under subsection (b) shall be used to 
undertake mitigation measures with respect to the insured property that 
cost less than the cost of the estimated amount of premiums that would 
be paid with respect to the property during the 50-year period 
beginning in the year in which the loan is made and if those mitigation 
measures were not undertaken.
    (d) Sale of Property.--If a property with respect to which a loan 
has been made under this section is sold, upon that sale, the 
outstanding loan balance shall--
            (1) be repaid using the proceeds of the sale; or
            (2) carry over to the purchaser of the property if the 
        purchaser so consents before the execution of the sale.

SEC. 207. REVOLVING LOAN FUNDS.

    (a) In General.--Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.), as amended by section 103, is amended by 
adding at the end the following:

``SEC. 1327. STATE OR TRIBAL GOVERNMENT REVOLVING LOAN FUNDS FOR FLOOD 
              MITIGATION.

    ``(a) Definitions.--In this section:
            ``(1) Community rating system.--The term `Community Rating 
        System' means the community rating system program carried out 
        under section 1315(b).
            ``(2) Intended use plan.--The term `intended use plan' 
        means a plan prepared under subsection (d)(1).
            ``(3) Low-income geographic area.--The term `low-income 
        geographic area' means an area described in paragraph (1) or 
        (2) of section 301(a) of the Public Works and Economic 
        Development Act of 1965 (42 U.S.C. 3161(a)).
            ``(4) Low-income homeowner.--The term `low-income 
        homeowner' means the owner of a primary residence, the 
        household income of which in a taxable year is not more than 80 
        percent of the median income for the area in which the 
        residence is located.
            ``(5) Participating entity.--The term `participating 
        entity' means a State or Tribal government that--
                    ``(A) has entered into an agreement under 
                subsection (b)(1); and
                    ``(B) agrees to comply with the requirements of 
                this section.
            ``(6) Pre-FIRM building.--The term `pre-FIRM building' 
        means a building for which construction or substantial 
        improvement occurred before the later of--
                    ``(A) December 31, 1974; or
                    ``(B) the effective date of the rate map published 
                by the Administrator under section 1360 for the area in 
                which the building is located.
            ``(7) State or tribal government loan fund.--The term 
        `State or Tribal government loan fund' means a flood mitigation 
        assistance revolving loan fund established by a State or Tribal 
        government under this section.
            ``(8) Tribal government.--The term `Tribal government' 
        means the recognized government of an Indian tribe, or the 
        governing body of an Alaska Native regional or village 
        corporation, that has been determined eligible to receive 
        services from the Bureau of Indian Affairs.
    ``(b) General Authority.--
            ``(1) In general.--The Administrator may enter into an 
        agreement with a State or Tribal government to provide a 
        capitalization grant for the State or Tribal government to 
        establish a revolving fund that will provide funding assistance 
        to help homeowners, businesses, nonprofit organizations, and 
        communities reduce flood risk in order to decrease--
                    ``(A) the loss of life and property;
                    ``(B) the cost of flood insurance; and
                    ``(C) Federal disaster payments.
            ``(2) Timing of deposit and agreements for distribution of 
        funds.--
                    ``(A) In general.--Not later than the last day of 
                the fiscal year following the fiscal year in which a 
                capitalization grant is made to a participating entity 
                under paragraph (1), the participating entity shall--
                            ``(i) deposit the grant in the State or 
                        Tribal government loan fund of the 
                        participating entity; and
                            ``(ii) enter into 1 or more binding 
                        agreements that provide for the participating 
                        entity to distribute the grant funds for 
                        purposes authorized under subsection (c) such 
                        that--
                                    ``(I) in the case of the initial 
                                grant made to a participating entity 
                                under this section, not less than 75 
                                percent of the amount of the grant 
                                shall be distributed before the end of 
                                the 2-year period beginning on the date 
                                on which the funds are deposited in the 
                                State or Tribal government loan fund of 
                                the participating entity; and
                                    ``(II) in the case of any 
                                subsequent grant made to a 
                                participating entity under this 
                                section, not less than 90 percent of 
                                the amount of the grant shall be 
                                distributed before the end of the 1-
                                year period beginning on the date on 
                                which the funds are deposited in the 
                                State or Tribal government loan fund of 
                                the participating entity.
                    ``(B) Noncompliance.--Except as provided in 
                subparagraph (C), if a participating entity does not 
                comply with subparagraph (A) with respect to a grant, 
                the Administrator shall reallocate the grant in 
                accordance with paragraph (3)(B).
                    ``(C) Exception.--The Administrator may not 
                reallocate any funds under subparagraph (B) to a 
                participating entity that violated subparagraph (A) 
                with respect to a grant made during the same fiscal 
                year in which the funds to be reallocated were 
                originally made available.
            ``(3) Allocation.--
                    ``(A) In general.--The Administrator shall allocate 
                amounts made available to carry out this section to 
                participating entities--
                            ``(i) for the participating entities to 
                        deposit in the State or Tribal government loan 
                        fund established by the participating entity; 
                        and
                            ``(ii) except as provided in paragraph (6), 
                        in accordance with the requirements described 
                        in subparagraph (B).
                    ``(B) Requirements.--The requirements described in 
                this subparagraph are as follows:
                            ``(i) Fifty percent of the total amount 
                        made available under subparagraph (A) shall be 
                        allocated so that each participating entity 
                        receives the percentage amount that is obtained 
                        by dividing the number of properties that were 
                        insured under the national flood insurance 
                        program in that State or Tribal government 
                        jurisdiction, as applicable, in the fiscal year 
                        preceding the fiscal year in which the amount 
                        is allocated by the total number of properties 
                        that were insured under the national flood 
                        insurance program in the fiscal year preceding 
                        the fiscal year in which the amount is 
                        allocated.
                            ``(ii) Fifty percent of the total amount 
                        made available under subparagraph (A) shall be 
                        allocated so that each participating entity 
                        receives a percentage of funds that is equal to 
                        the product obtained under clause (iii)(IV) 
                        with respect to that participating entity after 
                        following the procedures described in clause 
                        (iii).
                            ``(iii) The procedures described in this 
                        clause are as follows:
                                    ``(I) Divide the total amount 
                                collected in premiums for properties 
                                insured under the national flood 
                                insurance program in each participating 
                                entity during the previous fiscal year 
                                by the number of properties insured 
                                under the national flood insurance 
                                program in that State or Tribal 
                                government jurisdiction, as applicable, 
                                for that fiscal year.
                                    ``(II) Add together each quotient 
                                obtained under subclause (I).
                                    ``(III) For each participating 
                                entity, divide the quotient obtained 
                                under subclause (I) with respect to 
                                that State or Tribal government 
                                jurisdiction, as applicable, by the sum 
                                obtained under subclause (II).
                                    ``(IV) For each participating 
                                entity, multiply the amount that is 50 
                                percent of the total amount made 
                                available under subparagraph (A) by the 
                                quotient obtained under subclause 
                                (III).
                            ``(iv) Except as provided in paragraph (5), 
                        in a fiscal year--
                                    ``(I) a participating entity may 
                                not receive more than 15 percent of the 
                                total amount that is made available 
                                under subparagraph (A) in that fiscal 
                                year; and
                                    ``(II) if a participating entity, 
                                based on the requirements under clauses 
                                (i) through (iii), would, but for the 
                                limitation under subclause (I) of this 
                                clause, receive an amount that is 
                                greater than the amount that the State 
                                or Tribal government jurisdiction, as 
                                applicable, is authorized to receive 
                                under that subclause, the difference 
                                between the authorized amount and the 
                                amount otherwise due to the State or 
                                Tribal government jurisdiction, as 
                                applicable, under clauses (i) through 
                                (iii) shall be allocated to other 
                                participating entities--
                                            ``(aa) that, in that fiscal 
                                        year, have not received an 
                                        amount under subparagraph (A) 
                                        that is more than the 
                                        authorized amount under 
                                        subclause (I) of this clause; 
                                        and
                                            ``(bb) by using the 
                                        requirements under clauses (i) 
                                        through (iii), except that a 
                                        participating entity may 
                                        receive an allocation under 
                                        this subclause only if the 
                                        allocation does not result in 
                                        the State or Tribal government 
                                        jurisdiction, as applicable, 
                                        receiving a total amount for 
                                        the fiscal year under 
                                        subparagraph (A) that is 
                                        greater than the authorized 
                                        amount under subclause (I).
            ``(4) No revolving fund required.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this section, and subject to subparagraph 
                (B), a participating entity that receives less than 
                $4,000,000 under paragraph (3)(B) in a fiscal year may 
                distribute the funds directly in the form of grants or 
                technical assistance for a purpose described in 
                subsection (c)(2), without regard to whether the 
                participating entity has established a State or Tribal 
                government loan fund.
                    ``(B) Matching.--A participating entity that 
                exercises the authority under subparagraph (A) in a 
                fiscal year shall provide matching funds from non-
                Federal sources in an amount that is equal to 25 
                percent of the amount that the participating entity 
                receives under paragraph (3)(B) in that fiscal year for 
                purposes described in subparagraph (A).
            ``(5) Allocation of remaining funds.--After allocating 
        amounts made available to carry out this section for a fiscal 
        year in accordance with paragraph (3), the Administrator shall 
        allocate any remaining amounts made available for that fiscal 
        year to participating entities, using the procedures described 
        in clauses (i) through (iii) of paragraph (3)(B).
            ``(6) Reservation of funds.--The Administrator shall 
        reserve not more than 1.5 percent of the amount made available 
        to carry out this section in a fiscal year--
                    ``(A) for administrative costs incurred by the 
                Federal Emergency Management Agency in carrying out 
                this section;
                    ``(B) to provide technical assistance to recipients 
                of grants under this section; and
                    ``(C) to enter into grant agreements with insular 
                areas, with the grant funds to be distributed--
                            ``(i) according to criteria established by 
                        the Administrator; and
                            ``(ii) for a purpose described in 
                        subsection (c)(2).
    ``(c) Use of Funds.--
            ``(1) In general.--Amounts deposited in a State or Tribal 
        government loan fund, including repayments of loans made from 
        the fund and interest earned on the amounts in the fund, shall 
        be used--
                    ``(A) consistent with paragraph (2) and subsection 
                (g), to provide financial assistance for--
                            ``(i) homeowners, businesses, and nonprofit 
                        organizations that are eligible to participate 
                        in the national flood insurance program; and
                            ``(ii) any local government that 
                        participates in the national flood insurance 
                        program;
                    ``(B) as a source of revenue and security for 
                leveraged loans, the proceeds of which shall be 
                deposited in the State or Tribal government loan fund; 
                or
                    ``(C) for the sale of bonds as security for payment 
                of the principal and interest on revenue or general 
                obligation bonds issued by the participating entity to 
                provide matching funds under subsection (f), if the 
                proceeds from the sale of the bonds are deposited in 
                the State or Tribal government loan fund.
            ``(2) Purposes.--A recipient of financial assistance 
        provided through amounts from a State or Tribal government loan 
        fund--
                    ``(A) shall use the amounts to reduce--
                            ``(i) flood risk; or
                            ``(ii) potential claims for losses covered 
                        under the national flood insurance program;
                    ``(B) shall use the amounts in a cost-effective 
                manner under requirements established by the 
                participating entity, which may require an applicant 
                for financial assistance to submit any information that 
                the participating entity considers relevant or 
                necessary before the date on which the applicant 
                receives the assistance;
                    ``(C) shall use the amounts for projects that--
                            ``(i) meet design and construction 
                        standards established by the Administrator;
                            ``(ii) are located in communities that--
                                    ``(I) participate in the national 
                                flood insurance program; and
                                    ``(II) have developed a community 
                                flood risk mitigation plan that has 
                                been approved by the Administrator 
                                under section 1366;
                            ``(iii) address--
                                    ``(I) a repetitive loss structure 
                                or a severe repetitive loss property; 
                                or
                                    ``(II) flood risk in the 500-year 
                                floodplain, areas of residual flood 
                                risk, or other areas of potential flood 
                                risk, as identified by the 
                                Administrator; and
                            ``(iv) address current risk and anticipate 
                        future risk, such as sea-level rise, and flood 
                        risk resulting from wildfire;
                    ``(D) may use the amounts--
                            ``(i) for projects relating to--
                                    ``(I) structural elevation;
                                    ``(II) floodproofing;
                                    ``(III) the relocation or removal 
                                of buildings from the 100-year 
                                floodplain or other areas of flood 
                                risk, including the acquisition of 
                                properties for such a purpose;
                                    ``(IV) environmental restoration 
                                activities that directly reduce flood 
                                risk, including green infrastructure;
                                    ``(V) any eligible activity 
                                described in subparagraphs (A) through 
                                (G) of section 1366(c)(3); or
                                    ``(VI) other activities determined 
                                appropriate by the Administrator;
                            ``(ii) with respect to a project described 
                        in clause (i), only for expenditures directly 
                        related to a project described in that clause, 
                        including expenditures for planning, design, 
                        and associated pre-construction activities;
                            ``(iii) to acquire, for the purposes of 
                        permanent protection, land, buildings, or a 
                        conservation easement from a willing seller or 
                        grantor, provided that--
                                    ``(I) the use of the land will be 
                                committed in perpetuity, with 
                                assurances from the recipient, that the 
                                land will only be used for open spaces, 
                                recreational use, or wetland management 
                                practices; and
                                    ``(II) no new structure will be 
                                erected on the property acquired other 
                                than--
                                            ``(aa) a public facility 
                                        that is open on all sides and 
                                        functionally related to a 
                                        designated open space;
                                            ``(bb) a restroom; or
                                            ``(cc) a structure that the 
                                        Administrator approves in 
                                        writing before the commencement 
                                        of a construction of the 
                                        structure; and
                            ``(iv) the recipient may make no subsequent 
                        application for disaster assistance for any 
                        purpose and no such assistance will be provided 
                        to the applicant from any Federal source;
                    ``(E) may not use the amounts--
                            ``(i) to construct buildings or expand 
                        existing buildings, unless the activity is for 
                        the purpose of flood mitigation;
                            ``(ii) to improve any structure, unless the 
                        recipient has obtained flood insurance 
                        coverage, which shall be maintained for the 
                        useful life of the structure, in an amount that 
                        is not less than the lesser of--
                                    ``(I) the eligible project costs 
                                with respect to the structure; and
                                    ``(II) the maximum insurable limit 
                                for the structure under the national 
                                flood insurance program coverage for 
                                the structure;
                            ``(iii) to improve a residential property 
                        with an appraised value that is not less than 
                        125 percent of the limitation on the maximum 
                        original principal obligation of a conventional 
                        mortgage that may be purchased by the Federal 
                        National Mortgage Association or the Federal 
                        Home Loan Mortgage Corporation in the area in 
                        which the property is located, as established 
                        under section 302(b)(2) of the Federal National 
                        Mortgage Association Charter Act (12 U.S.C. 
                        1717(b)(2)) and section 305(a)(2) of the 
                        Federal Home Loan Mortgage Corporation Act (12 
                        U.S.C. 1454(a)(2));
                            ``(iv) for the direct benefit of a 
                        homeowner if the annual household adjusted 
                        gross income of the homeowner during the 
                        previous fiscal year was not less than 
                        $200,000, as annually adjusted by the 
                        Administrator to reflect changes in the 
                        Consumer Price Index for All Urban Consumers, 
                        as published by the Bureau of Labor Statistics 
                        of the Department of Labor and rounded to the 
                        nearest $25; or
                            ``(v) to acquire real property or an 
                        interest in real property unless the property 
                        is purchased from a willing seller; and
                    ``(F) to the maximum extent practicable, shall, in 
                using those amounts, give priority to projects that 
                assist low-income homeowners and low-income 
                geographical areas.
    ``(d) Intended Use Plans.--
            ``(1) In general.--After providing the opportunity for 
        public review and comment, each participating entity shall 
        annually prepare a plan that identifies, for the year following 
        the date of issuance of the intended use plan, the intended 
        uses of the amounts available in the State or Tribal government 
        loan fund of the participating entity.
            ``(2) Consultation during preparation.--Each participating 
        entity, in preparing an intended use plan, shall ensure that 
        the State or Tribal government agency with primary 
        responsibility for floodplain management--
                    ``(A) provides oversight with respect to the 
                preparation of the intended use plan; and
                    ``(B) consults with any other appropriate State or 
                Tribal government agency, including agencies 
                responsible for coastal and environmental management.
            ``(3) Contents.--A participating entity shall, in each 
        intended use plan--
                    ``(A) include--
                            ``(i) an explanation of the mitigation and 
                        resiliency benefits the participating entity 
                        intends to achieve, including by--
                                    ``(I) reducing future damage and 
                                loss associated with flooding;
                                    ``(II) reducing the number of 
                                severe repetitive loss properties and 
                                repetitive loss structures in the State 
                                or Tribal government jurisdiction, as 
                                applicable;
                                    ``(III) decreasing the number of 
                                flood insurance claims in the State or 
                                Tribal government jurisdiction, as 
                                applicable; and
                                    ``(IV) increasing the rating under 
                                the Community Rating System for 
                                communities in the State or Tribal 
                                government jurisdiction, as applicable;
                            ``(ii) information with respect to the 
                        availability of, and the application process 
                        for receiving, financial assistance from the 
                        State or Tribal government loan fund of the 
                        participating entity;
                            ``(iii) the criteria and methods 
                        established for the distribution of amounts 
                        from the State or Tribal government loan fund 
                        of the participating entity;
                            ``(iv) the amount of financial assistance 
                        that the participating entity anticipates 
                        providing to--
                                    ``(I) local government projects; 
                                and
                                    ``(II) projects for homeowners, 
                                business, or nonprofit organizations;
                            ``(v) the expected terms of the assistance 
                        provided under clause (iv); and
                            ``(vi) a description of the financial 
                        status of the State or Tribal government loan 
                        fund and the short-term and long-term goals of 
                        the State or Tribal government loan fund; and
                    ``(B) provide, to the maximum extent practicable, 
                that priority for the use of amounts from the State or 
                Tribal government loan fund shall be given to projects 
                that--
                            ``(i) address severe repetitive loss 
                        properties and repetitive loss structures;
                            ``(ii) assist low-income homeowners and 
                        low-income geographic areas; and
                            ``(iii) address flood risk for pre-FIRM 
                        buildings.
            ``(4) Publication.--Each participating entity shall publish 
        and periodically update a list of all projects receiving 
        funding from the State or Tribal government loan fund of the 
        participating entity, which shall include identification of--
                    ``(A) the community in which the project is 
                located;
                    ``(B) the type and amount of assistance provided 
                for each project; and
                    ``(C) the expected funding schedule and date of 
                completion of each project.
    ``(e) Fund Management.--Amounts in a State or Tribal government 
loan fund shall--
            ``(1) remain available for providing financial assistance 
        under this section until distributed;
            ``(2) if the amounts are not required for immediate 
        distribution or expenditure, be invested in interest-bearing 
        obligations; and
            ``(3) except as provided in subsection (i), include only--
                    ``(A) amounts received from capitalization grants 
                made under this section;
                    ``(B) repayments of loans made from the fund; and
                    ``(C) interest earned on amounts in the fund.
    ``(f) Matching Funds.--
            ``(1) Full grant.--On or before the date on which a 
        participating entity receives a capitalization grant, the 
        participating shall deposit into the State or Tribal government 
        loan fund of the participating entity, in addition to the 
        amount of the capitalization grant, an amount from non-Federal 
        sources that is not less than 20 percent of the total amount of 
        the capitalization grant.
            ``(2) Reduced grant.--If, with respect to a capitalization 
        grant, a participating entity deposits in the State or Tribal 
        government loan fund of the participating entity an amount from 
        non-Federal sources that is less than 20 percent of the total 
        amount of the capitalization grant that the participating 
        entity would otherwise receive, the Administrator shall--
                    ``(A) reduce the amount of the capitalization grant 
                received by the participating entity to the amount that 
                is 5 times the amount so deposited; and
                    ``(B) in accordance with subsection (b)(5), 
                allocate the difference between the amount that the 
                participating entity would have received if the 
                participating entity had complied with paragraph (1) 
                and the amount of the reduced grant that the 
                participating entity receives under subparagraph (A).
    ``(g) Types of Assistance.--Unless otherwise prohibited by law of a 
participating entity, the participating entity may use the amounts 
deposited into a State or Tribal government loan fund under this 
section only--
            ``(1) to make a loan, on the condition that--
                    ``(A) the interest rate for the loan is not more 
                than the market interest rate;
                    ``(B) the recipient of the loan will begin making 
                principal and interest payments on the loan not later 
                than 1 year after the date on which the project for 
                which the loan was made is completed;
                    ``(C) the loan will be fully amortized not later 
                than 20 years after the date on which the project for 
                which the loan was made is completed, except that, in 
                the case of a loan made for a project in a low-income 
                geographic area or to a low-income homeowner, the State 
                may provide a longer amortization period for the loan 
                if that longer period--
                            ``(i) ends on a date that is not later than 
                        30 years after the date on which the project is 
                        completed; and
                            ``(ii) is not longer than the expected 
                        design life of the project;
                    ``(D) the recipient of the loan demonstrates, based 
                on verified and documented information that, as of the 
                date on which the loan is made, the recipient has a 
                reasonable ability to repay the loan, according to the 
                terms of the loan, except that this subparagraph may 
                not be construed to authorize any reduction or 
                limitation in efforts to comply with the requirements 
                of subsection (c)(2)(F); and
                    ``(E) payments of principal and interest with 
                respect to the loan will be deposited into the State or 
                Tribal government loan fund;
            ``(2) to buy or refinance the debt obligation of a local 
        government at an interest rate that is not more than the market 
        interest rate;
            ``(3) to guarantee, or purchase insurance for, a local 
        obligation, the proceeds of which finance a project eligible 
        for assistance under this section, if the guarantee or 
        purchase, as applicable, would--
                    ``(A) improve credit market access; or
                    ``(B) reduce the interest rate with respect to the 
                obligation;
            ``(4) as a source of revenue or as security for the payment 
        of principal and interest on revenue or general obligation 
        bonds issued by the participating entity if the proceeds of the 
        sale of the bonds will be deposited into the State or Tribal 
        government loan fund; or
            ``(5) to earn interest on those amounts.
    ``(h) Assistance for Low-Income Homeowners and Low-Income 
Geographic Areas.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, if a participating entity uses amounts from a 
        State or Tribal government loan fund to provide financial 
        assistance under subsection (c) in a low-income geographic area 
        or to a low-income homeowner, the participating entity may 
        provide additional subsidization to the recipient of the 
        assistance, including forgiveness of the principal of a loan.
            ``(2) Limitation.--For each fiscal year, the total amount 
        of additional subsidization provided by a participating entity 
        under paragraph (1) may not exceed 30 percent of the amount of 
        the capitalization grant allocated to the participating entity 
        for that fiscal year.
    ``(i) Administration of Fund.--
            ``(1) In general.--A participating entity may combine the 
        financial administration of a State or Tribal government loan 
        fund with the financial administration of any other revolving 
        fund established by the participating entity if--
                    ``(A) combining the administration of the funds 
                would--
                            ``(i) be convenient and avoid 
                        administrative costs; and
                            ``(ii) not violate the law of the 
                        participating entity; and
                    ``(B) the Administrator determines that--
                            ``(i) amounts obtained from a grant made 
                        under this section, amounts obtained from the 
                        repayment of a loan made from a State or Tribal 
                        government loan fund, and interest earned on 
                        amounts in a State or Tribal government loan 
                        fund will be--
                                    ``(I) accounted for separately from 
                                amounts from other revolving funds; and
                                    ``(II) used only for purposes 
                                authorized under this section; and
                            ``(ii) after consulting with the 
                        appropriate State or Tribal government 
                        agencies, the authority to establish assistance 
                        priorities and carry out oversight and related 
                        activities, other than financial 
                        administration, with respect to flood 
                        assistance remains with the State or Tribal 
                        government agency with primary responsibility 
                        for floodplain management.
            ``(2) Administrative and technical costs.--
                    ``(A) In general.--For each fiscal year, a 
                participating entity may use the amount described in 
                subparagraph (B) to--
                            ``(i) pay the reasonable costs of 
                        administration of the programs under this 
                        section, including the recovery of reasonable 
                        costs incurred in establishing a State or 
                        Tribal government loan fund;
                            ``(ii) provide appropriate oversight of 
                        projects authorized under this section; and
                            ``(iii) provide technical assistance and 
                        outreach to recipients in the State or Tribal 
                        government jurisdiction of amounts under this 
                        section, including with respect to updating 
                        hazard mitigation plans and participating in 
                        the Community Rating System, in an amount that 
                        is not more than 4 percent of the funds made 
                        available to the State or Tribal government 
                        jurisdiction under this section.
                    ``(B) Description.--The amount described in this 
                subparagraph is an amount equal to the sum of--
                            ``(i) any fees collected by a participating 
                        entity to recover the costs described in 
                        subparagraph (A)(i), regardless of the source; 
                        and
                            ``(ii) the greatest of--
                                    ``(I) $400,000;
                                    ``(II) 0.2 percent of the value of 
                                the State or Tribal government loan 
                                fund of a participating entity, as of 
                                the date on which the valuation is 
                                made; and
                                    ``(III) an amount equal to 7 
                                percent of all grant awards made to a 
                                participating entity for the State or 
                                Tribal government loan fund of the 
                                participating entity under this section 
                                for the fiscal year.
            ``(3) Audit and report.--
                    ``(A) Audit requirement.--Not less frequently than 
                biennially, each participating entity shall conduct an 
                audit of the State or Tribal government loan fund of 
                the participating entity.
                    ``(B) Report.--Each participating entity shall 
                submit to the Administrator a biennial report regarding 
                the activities of the participating entity under this 
                section during the period covered by the report, 
                including--
                            ``(i) the result of any audit conducted by 
                        the participating entity under subparagraph 
                        (A); and
                            ``(ii) a review of the effectiveness of the 
                        State or Tribal government loan fund of the 
                        participating entity with respect to--
                                    ``(I) the intended use plans of the 
                                participating entity; and
                                    ``(II) meeting the objectives 
                                described in subsection (b)(1).
            ``(4) Oversight.--In conducting oversight with respect to 
        State or Tribal government loan funds established under this 
        section, the Administrator--
                    ``(A) shall--
                            ``(i) periodically audit the funds in 
                        accordance with procedures established by the 
                        Comptroller General of the United States; and
                            ``(ii) not less frequently than once every 
                        4 years, review each State or Tribal government 
                        loan fund to determine the effectiveness of the 
                        fund in reducing flood risk; and
                    ``(B) may, at any time--
                            ``(i) make recommendations to a 
                        participating entity with respect to the 
                        administration of the State or Tribal 
                        government loan fund of the participating 
                        entity; or
                            ``(ii) require specific changes with 
                        respect to a State or Tribal government loan 
                        fund of the participating entity in order to 
                        improve the effectiveness of the fund.
    ``(j) Liability Protections.--The Federal Emergency Management 
Agency shall not be liable for any claim based on the exercise or 
performance of, or the failure to exercise or perform, a discretionary 
function or duty by the Agency, or an employee of the Agency, in 
carrying out this section.
    ``(k) Regulations.--The Administrator shall promulgate such 
guidance or regulations as may be necessary to carry out this section, 
including guidance or regulations that--
            ``(1) ensure that each participating entity to which funds 
        are allocated under this section uses the funds as efficiently 
        as possible;
            ``(2) reduce, to the maximum extent practicable, waste, 
        fraud, and abuse with respect to the implementation of this 
        section; and
            ``(3) require any party that receives funds directly or 
        indirectly under this section, including a participating entity 
        and a recipient of amounts from a State or Tribal government 
        loan fund, to use procedures with respect to the management of 
        the funds that conform to generally accepted accounting 
        standards.
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section 
for fiscal years 2022 through 2031.''.
    (b) Consideration of Mitigation Measures Funded by State Loan Funds 
in Flood Insurance Premium Rates.--
            (1) Estimated rates.--Section 1307(a)(1)(A)(ii) of the 
        National Flood Insurance Act of 1968 (42 U.S.C. 
        4014(a)(1)(A)(ii)) is amended by striking ``and similar 
        measures'' and inserting ``similar measures, and any activities 
        funded through amounts from a State or Tribal government loan 
        fund established under section 1327''.
            (2) Chargeable rates.--Section 1308(b)(1) of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4015(b)(1)) is amended 
        by striking ``and similar measures'' and inserting ``similar 
        measures, and any activities funded through amounts from a 
        State or Tribal government loan fund established under section 
        1327''.

SEC. 208. MAPPING MODERNIZATION.

    (a) Amendments to the Biggert-Waters Flood Insurance Reform Act of 
2012.--The Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 
4004 et seq.) is amended--
            (1) in section 100215 (42 U.S.C. 4101a)--
                    (A) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) by redesignating subparagraphs 
                                (A) through (E) as subparagraphs (B) 
                                through (F), respectively;
                                    (II) by inserting before 
                                subparagraph (B), as so redesignated, 
                                the following:
                    ``(A) the Director of the United States Geological 
                Survey;''; and
                                    (III) in subparagraph (F), as so 
                                redesignated--
                                            (aa) in the matter 
                                        preceding clause (i), by 
                                        striking ``16'' and inserting 
                                        ``17'';
                                            (bb) in clause (xiii), by 
                                        striking ``and'' at the end;
                                            (cc) in clause (xiv), by 
                                        striking the period at the end 
                                        and inserting ``; and''; and
                                            (dd) by adding at the end 
                                        the following:
                            ``(xv) an expert in the field of 
                        catastrophic risk modeling.'';
                            (ii) in paragraph (2), in the second 
                        sentence, by striking ``paragraph (1)(E)'' and 
                        inserting ``paragraph (1)(F)''; and
                            (iii) by adding at the end the following:
            ``(3) Conflicts of interest.--A member of the Council--
                    ``(A) may not, while serving on the Council, be 
                employed or retained by--
                            ``(i) a Federal Emergency Management Agency 
                        contractor or consultant; or
                            ``(ii) a nongovernmental entity that was 
                        awarded a Federal grant during the 5-year 
                        period preceding the date on which the member 
                        was appointed to the Council; and
                    ``(B) may not have been employed by a Federal 
                Emergency Management Agency contractor or consultant 
                during the 5-year period preceding the date on which 
                the member was appointed to the Council.''; and
                    (B) by adding at the end the following:
    ``(m) Private or Community Flood Maps.--
            ``(1) Standards and procedures.--In addition to the other 
        duties of the Council under this section, not later than 1 year 
        after the date of enactment of this subsection, the Council 
        shall develop and establish a set of standards, guidelines, and 
        procedures for--
                    ``(A) State and local governments, federally or 
                State-recognized metropolitan planning organizations 
                (commonly known as `MPOs'), federally or State-
                recognized councils of local governments, and federally 
                or State-recognized rural transportation planning 
                organizations to use in mapping flood risks and 
                developing alternative maps to the flood insurance rate 
                maps developed by the Administrator; and
                    ``(B) certification, by the Administrator not later 
                than 90 days after the date on which a map developed 
                under subparagraph (A) is submitted to the 
                Administrator, for use under the National Flood 
                Insurance Program in the case of any area covered by a 
                flood insurance rate map developed or approved by the 
                Administrator that has not been updated or reissued 
                during the preceding 3-year period.
            ``(2) Treatment.--On and after the date on which the 
        Administrator certifies a map under paragraph (1)(B), and 
        subject to the requirements of section 1363 of the National 
        Flood Insurance Act of 1968 (42 U.S.C. 4104), the map--
                    ``(A) shall be considered the flood insurance rate 
                map in effect for all purposes of the National Flood 
                Insurance Program with respect to the area covered by 
                the map; and
                    ``(B) may not be revised, updated, or replaced in 
                accordance with the standards, guidelines, and 
                procedures established under paragraph (1) before the 
                expiration of the 3-year period beginning on that date 
                of certification.
            ``(3) Exemption from rulemaking.--Until the date on which 
        the Administrator promulgates regulations implementing 
        paragraphs (1) and (2), the Administrator may adopt policies 
        and procedures, notwithstanding any other provision of law, 
        necessary to implement those paragraphs without regard to 
        section 553 of title 5, United States Code, and without 
        conducting regulatory analyses otherwise required by statute, 
        regulation, or Executive order.''; and
            (2) in section 100216 (42 U.S.C. 4101b)--
                    (A) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A)--
                                            (aa) in clause (v), by 
                                        striking ``and'' at the end;
                                            (bb) in clause (vi), by 
                                        adding ``and'' at the end; and
                                            (cc) by inserting after 
                                        clause (vi) the following:
                            ``(vii) all other areas of the United 
                        States that are not described in clauses (i) 
                        through (vi);'';
                                    (II) in subparagraph (B), by 
                                striking ``and'' at the end;
                                    (III) in subparagraph (C), by 
                                striking the period at the end and 
                                inserting ``, including the most 
                                recently available and best remote 
                                sensing technology;''; and
                                    (IV) by adding at the end the 
                                following:
                    ``(D) when appropriate, partner with other Federal 
                agencies, States, and private entities in order to meet 
                the objectives of the program; and
                    ``(E) consult and coordinate with the Secretary of 
                Defense, the Director of the United States Geological 
                Survey, the Director of the Fish and Wildlife Service, 
                and the Administrator of the National Oceanic and 
                Atmospheric Administration to obtain the most up-to-
                date maps and other information of those agencies, 
                including information relating to topography, water 
                flow, watershed characteristics, and any other issues 
                that are relevant to identifying, reviewing, updating, 
                maintaining, and publishing National Flood Insurance 
                Program rate maps.''; and
                            (ii) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                redesignating clauses (i) and (ii) as 
                                subclauses (I) and (II), respectively, 
                                and adjusting the margins accordingly;
                                    (II) by redesignating subparagraphs 
                                (A) through (E) as clauses (i) through 
                                (v), respectively, and adjusting the 
                                margins accordingly;
                                    (III) in the matter preceding 
                                clause (i), as so redesignated, by 
                                striking ``Administrator shall 
                                include--'' and inserting the 
                                following: ``Administrator--
                    ``(A) shall include--'';
                                    (IV) in subparagraph (A)(v), as so 
                                redesignated, by striking the period at 
                                the end and inserting ``; and''; and
                                    (V) by adding at the end the 
                                following:
                    ``(B) may include--
                            ``(i) any relevant information that is 
                        obtained under paragraph (1)(E); and
                            ``(ii) cadastral features, including, for 
                        each cadastral feature--
                                    ``(I) the associated parcel 
                                identification data for that feature; 
                                and
                                    ``(II) to the maximum extent 
                                practicable, using public and private 
                                sector address data, the address of 
                                that feature.'';
                    (B) in subsection (c)(2)--
                            (i) in subparagraph (B), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (C), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                            (iii) by adding at the end the following:
                    ``(D) not later than 5 years after the date on 
                which the National Geodetic Survey completes the 
                modernization of the National Spatial Reference System 
                in 2022, updated to conform with the geospatial data 
                provided by that system; and
                    ``(E) spatially accurate in accordance with the 
                common protocols for geographic information systems 
                under applicable law.'';
                    (C) by redesignating subsection (f) as subsection 
                (g);
                    (D) by inserting after subsection (e) the 
                following:
    ``(f) Incorporating Building-Specific Flood Risk Information.--
            ``(1) Establishment.--
                    ``(A) In general.--Not later than 5 years after the 
                date of enactment of the National Flood Insurance 
                Program Reauthorization and Reform Act of 2021, the 
                Administrator, in coordination with, and as recommended 
                by, the Technical Mapping Advisory Council, shall 
                establish a dynamic, database-derived digital display 
                environment for flood hazard risk production and 
                dissemination.
                    ``(B) Consultation with states and communities.--In 
                designing and constructing the environment under 
                subparagraph (A), the Administrator shall--
                            ``(i) leverage and partner with States and 
                        communities that have successfully implemented 
                        the same approach; and
                            ``(ii) consider adopting the techniques and 
                        technologies used by States and communities 
                        described in clause (i) and applying them 
                        nationwide.
            ``(2) Digital display.--
                    ``(A) In general.--In carrying out paragraph (1), 
                the Administrator shall create a digital display 
                prompted through dynamic querying of a spatial, 
                relational building database that includes--
                            ``(i) special flood hazard areas and base 
                        flood elevations for purposes of lender 
                        compliance with the requirements under section 
                        102 of the Flood Disaster Protection Act of 
                        1973 (42 U.S.C. 4012a); and
                            ``(ii) structure-specific flood risk 
                        information, including, for each property 
                        address--
                                    ``(I) the spatial footprint and 
                                elevation of the structure relative to 
                                special flood hazard areas and base 
                                flood elevations;
                                    ``(II) elevation data applicable to 
                                the property;
                                    ``(III) any letter of map changes;
                                    ``(IV) to the maximum extent 
                                practicable, the full risk premium rate 
                                estimated for the structure under 
                                section 1307(a)(1) of the National 
                                Flood Insurance Act of 1968 (42 U.S.C. 
                                4014(a)(1)) based on elevation data 
                                and, where applicable, the level of 
                                protection provided by levee systems;
                                    ``(V) the disclosure described in 
                                section 1308(l) of the National Flood 
                                Insurance Act of 1968 (42 U.S.C. 
                                4015(l)), which shall include--
                                            ``(aa) the extent to which, 
                                        if any, the chargeable premium 
                                        rate applicable to the property 
                                        is less than the full risk 
                                        premium rate under section 
                                        1307(a)(1) of that Act (42 
                                        U.S.C. 4014(a)(1)); and
                                            ``(bb) an explanation of 
                                        the difference described in 
                                        item (aa) and the methodology 
                                        used to rate the property;
                                    ``(VI) the estimated cost to repair 
                                the structure in the case of damage 
                                from floods with recurrence intervals 
                                ranging from the 10 percent annual 
                                chance event to the 0.2 percent annual 
                                chance event;
                                    ``(VII) the cost-effectiveness of 
                                mitigating the structure using common 
                                methods and how the chargeable premium 
                                rate would change based on each 
                                mitigation method; and
                                    ``(VIII) the claims history of the 
                                structure, including the amount and 
                                date of each loss.
                    ``(B) Privacy requirements.--With respect to the 
                database described in subparagraph (A), including any 
                data used to create that database, the Administrator 
                may not disseminate the database to any person other 
                than the owner or leaseholder of a property identified 
                in the database.
            ``(3) Database.--
                    ``(A) In general.--The Administrator shall--
                            ``(i) develop a spatial, relational 
                        database of buildings for which flood hazard 
                        has been identified through the National Flood 
                        Insurance Program; and
                            ``(ii) obtain the data necessary to support 
                        the digital display created under paragraph 
                        (2).
                    ``(B) Data.--The data obtained under subparagraph 
                (A) shall include, at a minimum--
                            ``(i) footprints and elevations (including 
                        lowest adjacent grade and first floor) from 
                        Light Detection and Ranging (commonly known as 
                        `LiDAR') data collections or other data 
                        collection methods that meet or exceed the 
                        standards for buildings, as determined by the 
                        Administrator;
                            ``(ii) elevation data;
                            ``(iii) parcel, address, and imagery data 
                        necessary for the identification, assessment, 
                        and reduction of flood hazards for individual 
                        properties;
                            ``(iv) flood insurance rate maps, studies, 
                        and supporting data;
                            ``(v) letters of map change; and
                            ``(vi) any other data that the 
                        Administrator determines necessary to collect 
                        to meet the objectives of this section.
            ``(4) Data procurement.--The Administrator shall obtain any 
        data necessary to establish the environment under paragraph 
        (1), including by--
                    ``(A) directing communities participating in the 
                National Flood Insurance Program, by regulation, to 
                collect and supply information, including elevation 
                data, for each structure that obtains a construction or 
                other development permit within--
                            ``(i) a special flood hazard area; or
                            ``(ii) an advisory special flood hazard 
                        area adopted by the community;
                    ``(B) issuing guidelines and standards, as 
                determined by the Administrator;
                    ``(C) partnering with other Federal, State, local, 
                and private stakeholders to the greatest extent 
                possible to obtain and share existing data that meets 
                or exceeds the standards determined by the 
                Administrator under subparagraph (B); and
                    ``(D) contracting with private companies to obtain 
                new LiDAR data collections or elevation data.
            ``(5) NFIP premium credit.--The Administrator shall provide 
        a 1-time premium credit of not more than $500 to a policyholder 
        for the purchase of an elevation certificate.
            ``(6) Mass letters of map change.--In coordination with 
        States and communities that have successfully implemented a 
        dynamic, database-derived digital display environment for flood 
        hazard risk production and dissemination, the Administrator 
        shall issue guidelines for the adoption and integration into 
        the program established under subsection (a) of LiDAR-based 
        letter of map amendment approaches.
            ``(7) Annual report.--The Administrator shall submit to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Financial Services of the House of 
        Representatives an annual progress report on the implementation 
        of this subsection, which shall include recommendations to 
        reduce the cost and improve the implementation of this 
        subsection.''; and
                    (E) in subsection (g), as so redesignated--
                            (i) by striking ``this section 
                        $400,000,000'' and inserting the following: 
                        ``this section--
            ``(1) $500,000,000''; and
                            (ii) by striking the period at the end and 
                        inserting the following: ``; and
            ``(2) $500,000,000 for each of fiscal years 2022 through 
        2027.''.
    (b) Appeals.--
            (1) In general.--
                    (A) Right to appeal.--Section 1360 of the National 
                Flood Insurance Act of 1968 (42 U.S.C. 4101) is amended 
                by adding at the end the following:
    ``(k) Appeals of Existing Maps.--
            ``(1) Right to appeal.--Subject to paragraph (6), a State 
        or local government, or the owner or lessee of real property, 
        that makes a formal request to the Administrator to update a 
        flood insurance rate map that the Administrator denies may at 
        any time appeal the denial in accordance with this subsection.
            ``(2) Basis for appeal.--The basis for an appeal under this 
        subsection shall be the possession of knowledge or information 
        that--
                    ``(A) the base flood elevation level or designation 
                of any aspect of a flood insurance rate map is 
                scientifically or technically inaccurate; or
                    ``(B) factors exist that mitigate the risk of 
                flooding, including ditches, banks, walls, vegetation, 
                levees, lakes, dams, reservoirs, basin, retention 
                ponds, and other natural or manmade topographical 
                features.
            ``(3) Appeals process.--
                    ``(A) Administrative adjudication.--The 
                Administrator shall determine an appeal under this 
                subsection by making a final adjudication on the 
                record, after providing an opportunity for an 
                administrative hearing.
                    ``(B) Rights upon adverse decision.--
                            ``(i) Optional arbitration.--If an appeal 
                        determined under subparagraph (A) does not 
                        result in a decision in favor of the State, 
                        local government, owner, or lessee, that party 
                        may request that an appeal of the adverse 
                        decision be heard through independent, non-
                        binding arbitration.
                            ``(ii) Process.--The Administrator shall 
                        establish a process for arbitration under 
                        clause (i) under which the arbitrator provides 
                        a non-binding recommendation to the 
                        Administrator.
            ``(4) Relief.--
                    ``(A) Wholly successful appeals.--If the 
                Administrator determines in an appeal under this 
                subsection that the property of a policyholder that had 
                been included in a special flood hazard area under the 
                flood insurance rate map is actually not in a special 
                flood hazard area--
                            ``(i) the policyholder may cancel the 
                        policy at any time during the year in which the 
                        Administrator makes the determination; and
                            ``(ii) the Administrator shall provide the 
                        policyholder a refund equal to the amount of--
                                    ``(I) any premiums that the 
                                policyholder paid during the year 
                                described in clause (i); and
                                    ``(II) any premiums that the 
                                policyholder paid for flood insurance 
                                coverage that the policyholder was 
                                required to purchase or maintain during 
                                the 2-year period preceding the year 
                                described in clause (i).
                    ``(B) Partially successful appeals.--If the 
                Administrator determines in an appeal under this 
                subsection that mitigating factors have reduced, but 
                not eliminated, the risk of flooding to a property, the 
                Administrator shall--
                            ``(i) reduce the amount of flood insurance 
                        coverage required to be maintained for the 
                        property by the ratio of the successful portion 
                        of the appeal as compared to the entire appeal; 
                        and
                            ``(ii) provide the policyholder a refund 
                        equal to the difference between--
                                    ``(I) the amount of any premiums 
                                that the policyholder paid during the 
                                period--
                                            ``(aa) beginning on the 
                                        later of--

                                                    ``(AA) the date on 
                                                which the mitigating 
                                                factor was created; or

                                                    ``(BB) January 1 of 
                                                the second year 
                                                preceding the date on 
                                                which the determination 
                                                is made; and

                                            ``(bb) ending on the date 
                                        on which the reduction in the 
                                        amount of flood insurance 
                                        required, as described in 
                                        clause (i), takes effect; and
                                    ``(II) the amount of premiums that 
                                the policyholder would have been 
                                required to pay if the reduced amount 
                                of flood insurance coverage required, 
                                as described in clause (i), had been in 
                                effect during the period described in 
                                subclause (I) of this clause.
                    ``(C) Additional relief.--The Administrator may 
                provide additional refunds in excess of the amounts 
                required under subparagraphs (A) and (B) if the 
                Administrator determines that such additional refunds 
                are warranted.
            ``(5) Recovery of costs.--
                    ``(A) Appeal expenses.--If a State or local 
                government, or the owner or lessee of real property, 
                incurs any expense in connection with an appeal under 
                this subsection that is based on a scientific or 
                technical error made by the Administrator and that is 
                successful in whole or part regarding the designation 
                of the base flood elevation or any aspect of a flood 
                insurance rate map, including elevation or designation 
                of a special flood hazard area, the Administrator shall 
                reimburse the State, local government, owner, or lessee 
                in accordance with subparagraph (B).
                    ``(B) Reimbursable expenses.--The Administrator--
                            ``(i) may reimburse a party under 
                        subparagraph (A) for reasonable expenses 
                        described in that subparagraph--
                                    ``(I) including for a service 
                                provided by a surveyor, engineer, or 
                                scientific expert; and
                                    ``(II) to the extent measured by 
                                the ratio of the successful portion of 
                                the appeal as compared to the entire 
                                appeal; and
                            ``(ii) may not reimburse a party under 
                        subparagraph (A) for--
                                    ``(I) the cost of legal services; 
                                or
                                    ``(II) the payment of any fee or 
                                expense, the payment of which was 
                                agreed to be contingent upon the result 
                                of the appeal.
            ``(6) Guidance.--The Administrator shall issue guidance to 
        implement this subsection, which shall not be subject to the 
        notice and comment requirements under section 553 of title 5, 
        United States Code.''.
                    (B) Technical and conforming amendments.--Section 
                1310(a) of the National Flood Insurance Act of 1968 (42 
                U.S.C. 4017(a)) is amended--
                            (i) in paragraph (7), by striking ``and'' 
                        at the end;
                            (ii) in paragraph (8), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(9) for providing reimbursements of expenses of flood 
        insurance rate map appeals under section 1360(k)(5).''.
            (2) Deadline for issuance of guidance.--Not later than 180 
        days after the date of enactment of this Act, the Administrator 
        shall issue the guidance required under subsection (k)(6) of 
        section 1360 of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4101), as added by paragraph (1)(A).
            (3) Issuance of regulations for map appeals.--Not later 
        than 180 days after the date of enactment of this Act, the 
        Administrator shall issue the regulations required to be issued 
        under subsection (f) of section 1363 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4104) and any relevant 
        guidance to implement that subsection.

SEC. 209. LEVEE-PROTECTED AREAS.

    Section 100216(b) of the Biggert-Waters Flood Insurance Reform Act 
of 2012 (42 U.S.C. 4101b(b)) is amended by adding at the end the 
following:
            ``(4) Areas protected by levee systems.--
                    ``(A) Applicability.--To facilitate the 
                implementation of this section, and notwithstanding any 
                other provision of law, this paragraph shall apply to a 
                community in which the Administrator establishes rates 
                for flood insurance under the National Flood Insurance 
                Program in a levee-protected area.
                    ``(B) Non-accredited levee systems.--
                            ``(i) Assessment of protection provided by 
                        non-accredited levee systems.--With respect to 
                        an area in which the pertinent levee system 
                        fails to meet the minimum design, operation, 
                        and maintenance standards of the National Flood 
                        Insurance Program described in section 65.10 of 
                        title 44, Code of Federal Regulations, or any 
                        successor regulation, for levee accreditation 
                        on a National Flood Insurance Program rate map 
                        under the Risk Rating 2.0 methodology (or any 
                        substantially similar methodology), the 
                        Administrator shall, not later than 1 year 
                        after the date of enactment of this paragraph--
                                    ``(I) through rules issued under 
                                section 553 of title 5, United States 
                                Code, establish--
                                            ``(aa) the analysis that 
                                        the Administrator will perform 
                                        to determine the level of 
                                        protection provided by the non-
                                        accredited levee system; and
                                            ``(bb) the procedure by 
                                        which the Administrator will 
                                        establish rates for flood 
                                        insurance under the National 
                                        Flood Insurance Program for 
                                        that area; and
                                    ``(II)(aa) issue guidance with 
                                respect to the matters described in 
                                items (aa) and (bb) of subclause (I); 
                                or
                                    ``(bb) use the levee analysis and 
                                mapping procedure of the Federal 
                                Emergency Management Agency, as in 
                                effect on the date of enactment of this 
                                paragraph, for purposes of updating 
                                flood insurance rate maps and 
                                establishing rates for flood insurance 
                                under the National Flood Insurance 
                                Program, working with established Local 
                                Levee Partnership Teams or their 
                                equivalent for verification of accurate 
                                results.
                            ``(ii) Rate for areas without sufficient 
                        data.--With respect to a structure that is 
                        located in an area described in clause (i), and 
                        for which the Administrator does not have 
                        sufficient data to assess risk, the 
                        Administrator may not increase the rates for 
                        flood insurance under the National Flood 
                        Insurance Program for that structure until the 
                        Administrator--
                                    ``(I) carries out clause (i) with 
                                respect to that area; and
                                    ``(II) makes available to all 
                                parties affected by the increased rate 
                                the data on which the Administrator is 
                                relying in establishing that increased 
                                rate.
                    ``(C) Mandatory purchase requirement for levee 
                systems.--In any area in which the pertinent levee 
                system meets the minimum design, operation, and 
                maintenance standards described in section 65.10 of 
                title 44, Code of Federal Regulations, or any successor 
                regulation, the Administrator may not--
                            ``(i) designate the levee-protected area a 
                        special flood hazard area; or
                            ``(ii) impose any requirement to purchase 
                        flood insurance for a structure located in the 
                        area.
                    ``(D) Appeals process.--
                            ``(i) In general.--Not later than 1 year 
                        after the date of enactment of this paragraph, 
                        the Administrator shall develop an appeals 
                        process for communities located within a levee-
                        protected area described in this paragraph that 
                        disputes the assessment made by the 
                        Administrator of the level of protection 
                        provided by the levee or the residual risk 
                        associated with the levee.
                            ``(ii) Definition requirements.--With 
                        respect to the appeals process established 
                        under clause (i)--
                                    ``(I) subject to subclause (II), 
                                the Administrator shall make clear 
                                which definition of the terms `levee' 
                                and `residual risk' shall apply for the 
                                purposes of the appeal; and
                                    ``(II) an appellant in an appeal 
                                brought under that process may require 
                                that the Administrator use the 
                                definition of the term `levee' in 
                                section 59.1 of title 44, Code of 
                                Federal Regulations, or any successor 
                                regulation.''.

SEC. 210. COMMUNITY-WIDE FLOOD MITIGATION ACTIVITIES.

    It is the sense of Congress that the Administrator should consider 
flood mitigation activities that--
            (1) provide benefits to an entire floodplain or community, 
        or to a portion of such a community;
            (2) consider all available and practicable approaches; and
            (3) the Administrator determines--
                    (A) are technically feasible;
                    (B) have the highest net benefits; and
                    (C) are consistent with mitigation plans approved 
                by the Administrator.

                          TITLE III--SOLVENCY

SEC. 301. FORBEARANCE ON NFIP INTEREST PAYMENTS.

    (a) In General.--During the 5-year period beginning on the date of 
enactment of this Act, the Secretary of the Treasury may not charge the 
Administrator interest on amounts borrowed by the Administrator under 
section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 
4016(a)) that were outstanding as of the date of enactment of this Act, 
including amounts borrowed after the date of enactment of this Act that 
refinance debts that existed before the date of enactment of this Act.
    (b) Use of Saved Amounts.--There shall be deposited into the 
National Flood Mitigation Fund an amount equal to the interest that 
would have accrued on the borrowed amounts during the 5-year period 
described in subsection (a) at the time at which those interest 
payments would have otherwise been paid, which, notwithstanding any 
provision of section 1367 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4104d), the Administrator shall use to carry out the program 
established under section 1366 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4104c).
    (c) No Retroactive Accrual.--After the 5-year period described in 
subsection (a), the Secretary of the Treasury shall not require the 
Administrator to repay any interest that, but for that subsection, 
would have accrued on the borrowed amounts described in that subsection 
during that 5-year period.

SEC. 302. CAP ON WRITE YOUR OWN COMPANY COMPENSATION.

    (a) In General.--Section 1311 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4018) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Limitation on Compensation; Minimum Agent Commissions.--In 
negotiating with appropriate representatives of the insurance industry 
under subsection (a), the Administrator shall ensure that--
            ``(1) any reimbursement paid to a property and casualty 
        insurance company for selling, writing, and servicing flood 
        insurance policies is not more than 22.46 percent of the 
        aggregate amount of premiums charged by the insurance company; 
        and
            ``(2) an insurance company pays a portion of the 
        reimbursement described in paragraph (1) to agents of the 
        company as a commission, in an amount that is not less than 15 
        percent of the aggregate amount of the premiums sold by the 
        agent.''.
    (b) Technical and Conforming Amendments.--Section 1311 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4018), as amended by 
subsection (a), is amended--
            (1) in subsection (a), by striking ``The Administrator'' 
        and inserting ``In General.--The Administrator''; and
            (2) in subsection (c), as so redesignated by subsection (a) 
        of this section, by striking ``For purposes of subsection (a)'' 
        and inserting ``Definitions.--For purposes of this section''.

SEC. 303. THIRD-PARTY SERVICE PROVIDER COSTS; TRANSPARENCY.

    (a) In General.--Section 100224(d) of the Biggert-Waters Flood 
Insurance Reform Act of 2012 (42 U.S.C. 4081 note) is amended--
            (1) by striking ``Not later than 12 months after the date 
        of enactment of this Act, the Administrator'' and inserting the 
        following:
            ``(1) In general.--The Administrator''; and
            (2) by adding at the end the following:
            ``(2) Vendor costs; transparency.--In issuing the rule 
        under paragraph (1), the Administrator shall--
                    ``(A) develop a schedule to determine the actual 
                costs of Write Your Own third-party service providers, 
                including claims adjusters and engineering companies;
                    ``(B) provide that if a Write Your Own company 
                requests reimbursement for the costs of a service or 
                product provided to the company by a vendor, the 
                Administrator only reimburses the company for the 
                actual costs of the service or products; and
                    ``(C) require that all reimbursements to Write Your 
                Own companies be made public, including a description 
                of the product or service provided to which the 
                reimbursement pertains.''.
    (b) Deadline for Revised Rule.--Not later than 90 days after the 
date of enactment of this Act, the Administrator shall issue a revised 
rule under section 100224(d) of the Biggert-Waters Flood Insurance 
Reform Act of 2012 (42 U.S.C. 4081 note), as amended by subsection (a).

SEC. 304. AVAILABILITY OF NFIP CLAIMS DATA.

    (a) Study Required.--
            (1) In general.--The Administrator shall study the 
        feasibility of selling or licensing the use of historical 
        structure-specific National Flood Insurance Program claims data 
        (referred to in this section as ``covered claims data'') to 
        nongovernmental entities.
            (2) Contents.--In conducting the study required under 
        paragraph (1), the Administrator shall, at a minimum--
                    (A) investigate 1 or more methods of providing the 
                most specific covered claims data possible while 
                reasonably protecting policyholder privacy;
                    (B) review existing means, as of the date of 
                enactment of this Act, by which the Federal Government 
                and nongovernmental entities provide leases or licenses 
                to private persons, and the various regulations, terms, 
                conditions, and guidance employed;
                    (C) identify potential uses for covered claims data 
                and any known risks concerning those uses, including 
                the risk that private insurance companies will use the 
                data to issue flood insurance policies with respect to 
                properties that have the lowest level of flood risk, 
                which would require the National Flood Insurance 
                Program to issue those policies with respect to 
                properties with higher levels of flood risk;
                    (D) identify mechanisms for determining the likely 
                market value for access to covered claims data;
                    (E) consider whether selling or licensing the use 
                of covered claims data, as described in paragraph (1), 
                would be in compliance with section 552a of title 5, 
                United States Code (commonly known as the ``Privacy Act 
                of 1974'');
                    (F) review the costs of researching, developing, 
                and producing previous releases of covered claims data 
                and identify if releasing this data has benefitted the 
                National Flood Insurance Program in a tangible way that 
                benefits policyholders; and
                    (G) recommend actions the Administrator could take, 
                if any, to prevent unintended consequences associated 
                with the sale or licensing for private insurance 
                purposes covered claims data.
    (b) Report by Administrator.--Not later than 1 year after the date 
of enactment of this Act, the Administrator shall submit to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives a 
report that contains the results and conclusions of the study conducted 
under subsection (a), which shall include an analysis of any 
recommendations made by the study.

SEC. 305. REFUSAL OF MITIGATION ASSISTANCE.

    Section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4104c) is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), in the first sentence, by inserting ``and, with respect to 
        financial assistance described in paragraph (2), using amounts 
        made available from the Disaster Relief Fund in accordance with 
        section 203(n) of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5133(n))'' after ``section 
        1367'';
            (2) by redesignating subsection (h) as subsection (i); and
            (3) by inserting after subsection (g) the following:
    ``(h) Refusal of Assistance.--
            ``(1) Definition.--In this subsection, the term `bona fide 
        offer of assistance' means an offer of assistance made by the 
        Administrator to a policyholder under the national flood 
        insurance program that--
                    ``(A) relates to mitigation activities with respect 
                to the structure insured under that program;
                    ``(B) covers 100 percent of the cost of the 
                mitigation activities described in subparagraph (A);
                    ``(C) permits the policyholder to continue to live 
                in the structure to which the policy relates; and
                    ``(D) is carried out under a mitigation plan.
            ``(2) Penalty.--If, after the date of enactment of the 
        National Flood Insurance Program Reauthorization and Reform Act 
        of 2021, a policyholder under the national flood insurance 
        program refuses a bona fide offer of assistance with respect to 
        the property so insured, the Administrator shall, 
        notwithstanding any other provision of this title, increase the 
        chargeable risk premium rate for flood insurance under this 
        title for the property by 25 percent each year until--
                    ``(A) the policyholder accepts the bona fide offer 
                of assistance; or
                    ``(B) that chargeable risk premium rate is 
                actuarially sound.''.

SEC. 306. MULTIPLE STRUCTURE MITIGATION.

    Section 1308A(a) of the National Flood Insurance Act of 1968 (42 
U.S.C. 4015a(a)) is amended--
            (1) in the first sentence, by striking ``The 
        Administrator'' and inserting the following:
            ``(1) In general.--Except as provided in paragraph (2), the 
        Administrator''; and
            (2) by adding at the end the following:
            ``(2) Relief for small businesses and nonprofits.--
                    ``(A) Definition.--In this paragraph, the term 
                `covered small business or nonprofit organization' 
                means a small business concern (as defined in section 3 
                of the Small Business Act (15 U.S.C. 632)) or an 
                organization that is described in section 501(c)(3) of 
                the Internal Revenue Code of 1986 and is exempt from 
                taxation under section 501(a) of such Code that owns 
                not fewer than 3 structures that are located on a 
                single property.
                    ``(B) Relief.--The Administrator may not impose a 
                surcharge under this section for a policy for flood 
                insurance coverage under the National Flood Insurance 
                Program for a covered small business concern or 
                nonprofit organization with respect to more than 2 
                detached units or buildings located on a single 
                property if the covered small business or nonprofit 
                organization certifies to the Administrator that the 
                savings from the surcharge not being imposed shall be 
                used for flood mitigation on the property on which the 
                units or buildings are located.
                    ``(C) Rules.--Not later than 1 year after the date 
                of enactment of this paragraph, the Administrator shall 
                issue rules establishing the process for submitting a 
                certification described in subparagraph (B).''.

             TITLE IV--POLICYHOLDER PROTECTION AND FAIRNESS

SEC. 401. EARTH MOVEMENT FIX AND ENGINEER STANDARDS.

    (a) Rebuttable Presumption for Foundation and Structural Damage.--
            (1) In general.--Section 1312 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4019), as amended by section 
        106(b), is amended by adding at the end the following:
    ``(e) Rebuttable Presumption for Foundation and Structural 
Damage.--
            ``(1) In general.--For the purposes of the Administrator 
        determining coverage under the standard flood insurance policy 
        under the national flood insurance program, a rebuttable 
        presumption that physical damage to the foundation of, or 
        structural damage to, a structure was not caused by earth 
        movement shall apply if--
                    ``(A) flood caused direct physical change to the 
                structure; and
                    ``(B) there is damage to the foundation of, or 
                structural damage to, the structure that was not 
                present before the flood, as demonstrated by a 
                certification from the policyholder.
            ``(2) Rebuttal.--In determining coverage as a result of the 
        rebuttable presumption under paragraph (1), an insurance 
        company may rebut the presumption only by providing the 
        Administrator with an engineering report that--
                    ``(A) meets standards issued by the Administrator 
                under paragraph (3); and
                    ``(B) clearly demonstrates that the physical damage 
                to the foundation of, or structural damage to, a 
                structure described in paragraph (1) was caused 
                directly by earth movement that was not--
                            ``(i) caused by the horizontal pressure 
                        from standing or slow-moving floodwater 
                        (commonly known as `hydrostatic pressure');
                            ``(ii) caused by the force of floodwater 
                        that causes the vertical uplift from the 
                        underside of a horizontal foundation component, 
                        such as a concrete slab, footer, or structural 
                        floor assembly (commonly known as `buoyancy');
                            ``(iii) caused by pressure imposed on an 
                        object, such as a wall of a building, by high-
                        velocity floodwater or waves flowing against 
                        and around the building (commonly known as 
                        `hydrodynamic force');
                            ``(iv) caused by floodwater moving along 
                        the surface of the ground causing soil to 
                        suddenly erode or undermine, resulting in 
                        failure of a foundation or to one of the 
                        structural components of the foundation 
                        (commonly known as `scouring'); or
                            ``(v) otherwise caused by flood.
            ``(3) Minimum standards for engineering reports.--The 
        Administrator shall issue minimum standards--
                    ``(A) regarding the form and content of engineering 
                reports used to assist insurance claims adjusters with 
                respect to carrying out this subsection; and
                    ``(B) that--
                            ``(i) include a requirement that any such 
                        engineering report shall be signed and have a 
                        seal affixed by an engineer who is licensed in 
                        the State in which the property to which the 
                        claim relates is located; and
                            ``(ii) are consistent with generally 
                        accepted practices in--
                                    ``(I) the field of forensic 
                                engineering; and
                                    ``(II) the insurance industry.
            ``(4) Documentation of condition of foundation.--
                    ``(A) In general.--If the holder of a policy for 
                flood insurance coverage made available under this 
                title documents the condition of the foundation of a 
                structure covered by the policy with a photograph, 
                video recording, or otherwise, and submits the 
                documentation to the Administrator or the Write Your 
                Own Company that sold the policy, as applicable, the 
                Administrator or Write Your Own Company, respectively, 
                shall keep the documentation and use the documentation 
                when adjusting a claim that arises under the policy.
                    ``(B) Notice to policyholders.--The Administrator 
                shall notify a policyholder, when the policyholder 
                purchases or renews a flood insurance policy sold under 
                this title, that the policyholder may document the 
                condition of the foundation of a structure covered by 
                the policy in accordance with subparagraph (A).
            ``(5) Rule of construction.--Nothing in this subsection may 
        be construed to modify the terms and conditions of the standard 
        flood insurance policy.''.
            (2) Application.--The amendment made by paragraph (1) shall 
        apply with respect to a claim with a date of loss that is on or 
        after the date that is 90 days after the date of enactment of 
        this Act.
    (b) Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall issue the standards 
required under subsection (e)(3) of section 1312 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4019), as added by subsection (a)(1).

SEC. 402. COVERAGE OF PRE-FIRM CONDOMINIUM BASEMENTS AND STUDY ON 
              STREET RAISING.

    (a) Basement Clarification.--
            (1) In general.--Section 1305 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4012) is amended by adding at 
        the end the following:
    ``(e) Availability of Insurance for Pre-FIRM Condominium 
Basements.--
            ``(1) Definition.--In this subsection, the term `pre-FIRM 
        condominium building' means a condominium building that was not 
        constructed or substantially improved after the later of--
                    ``(A) December 31, 1974; or
                    ``(B) the effective date of the initial flood 
                insurance rate map published by the Administrator under 
                section 1360 for the area in which the building is 
                located.
            ``(2) Coverage.--The Administrator shall offer an optional 
        rider to a contract for flood insurance made available under 
        this title that covers the basement of a pre-FIRM condominium 
        building that serves as a separate residential unit within that 
        condominium building.''.
            (2) Amendments to regulations.--Not later than 180 days 
        after the date of enactment of this Act, the Administrator 
        shall make any amendments to the regulations of the Federal 
        Emergency Management Agency that are necessary as a result of 
        the amendment made by paragraph (1).
    (b) Study on Consequences of Street-Raising.--
            (1) Definition.--In this subsection, the term ``affected 
        property'' means a property containing an area--
                    (A) the floor of which was located at or above 
                grade before the community raised the street adjacent 
                to the property; and
                    (B) after the street-raising described in 
                subparagraph (A), that was designated as a basement 
                because of the street-raising.
            (2) Study; report.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall study and submit 
        to Congress a report on the consequences of street-raising on 
        flood insurance coverage for an affected property under the 
        National Flood Insurance Program, including the cost 
        implications for the property owner.

SEC. 403. GUIDANCE ON REMEDIATION AND POLICYHOLDER DUTIES.

    (a) In General.--Section 1312 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4019), as amended by section 401(a)(1), is amended 
by adding at the end the following:
    ``(f) Guidance on Mold Remediation.--
            ``(1) In general.--The Administrator shall issue guidance 
        relating to the identification of reasonable actions that a 
        policyholder of coverage for flood insurance made available 
        under this title may take to inspect and maintain the property 
        to which that coverage applies--
                    ``(A) after a flood recedes; and
                    ``(B) in order to avoid damage to the property that 
                is caused by mold, mildew, moisture, or water.
            ``(2) Considerations.--In developing guidance under 
        paragraph (1), the Administrator shall consider--
                    ``(A) any applicable laws and regulations;
                    ``(B) the terms and conditions of the standard 
                flood insurance policy;
                    ``(C) technical best practices;
                    ``(D) the costs of remediation in relation to the 
                condition of a property described in that paragraph; 
                and
                    ``(E) the actions that the Administrator may 
                reasonably expect a policyholder described in that 
                paragraph to take, given the likely challenges faced by 
                the policyholder after a flood.
            ``(3) Regular review.--The Administrator shall--
                    ``(A) regularly review the guidance issued under 
                paragraph (1); and
                    ``(B) revise the guidance issued under paragraph 
                (1) as the Administrator determines appropriate.
            ``(4) Annual distribution.--The Administrator shall provide 
        a copy of the guidance issued under paragraph (1) to a 
        policyholder at the time of the purchase or renewal of a flood 
        insurance policy sold under this title.''.
    (b) Initial Issuance.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall issue the guidance 
required under subsection (f) of section 1312 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4019), as added by subsection (a) of 
this section.
    (c) Accessibility, Reasonableness, and Degree of Damage.--Section 
1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as 
amended by subsection (a), is amended by adding at the end the 
following:
    ``(g) Exclusion of Certain Damage.--For purposes of determining 
whether damage caused by mold, mildew, moisture, or water to a property 
shall be excluded from coverage under the standard flood insurance 
policy--
            ``(1) subject to paragraph (2), only the degree of damage 
        caused by mold, mildew, moisture, or water that could have been 
        avoided through inspection and maintenance may be excluded from 
        that coverage; and
            ``(2) the condition of the property to which the damage 
        relates may not be considered to be attributable to the 
        policyholder with respect to the property, including any 
        failure by the policyholder to inspect and maintain the 
        property after a flood recedes, if--
                    ``(A) the policyholder was denied access to the 
                property after the flood receded because of--
                            ``(i) a lawful government order;
                            ``(ii) a determination by local authorities 
                        that the property--
                                    ``(I) is unsafe or unstable; or
                                    ``(II) shall be condemned; or
                            ``(iii) otherwise unsafe conditions;
                    ``(B) a reasonable individual exercising reasonable 
                judgment could not be expected to inspect, maintain, or 
                mitigate the damage to the property under the 
                circumstances; or
                    ``(C) the policyholder faced particular challenges, 
                including--
                            ``(i) practical or financial difficulty in 
                        inspecting or maintaining the property;
                            ``(ii) the need to address other more 
                        immediate priorities, including--
                                    ``(I) the health and well-being of 
                                the policyholder and the family of the 
                                policyholder;
                                    ``(II) the preservation of basic 
                                items;
                                    ``(III) displacement; and
                                    ``(IV) other issues that make 
                                inspection and maintenance of the 
                                property a near-term challenge for the 
                                policyholder; and
                            ``(iii) the unavailability of contractors 
                        or other individuals to perform any required 
                        inspection and maintenance.''.

SEC. 404. APPEAL OF DECISIONS RELATING TO FLOOD INSURANCE COVERAGE.

    (a) Enhanced Policyholder Appeals Process.--
            (1) In general.--Part C of chapter II of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4081 et seq.) is amended by 
        adding at the end the following:

``SEC. 1349. APPEAL OF DECISIONS RELATING TO FLOOD INSURANCE COVERAGE.

    ``(a) Definition.--In this section, the term `Office', except as 
otherwise specified, means the Independent Office for Policyholder 
Appeals established under subsection (b).
    ``(b) Independent Office for Policyholder Appeals.--Not later than 
180 days after the date of enactment of this section, the Administrator 
shall establish an Independent Office for Policyholder Appeals to 
provide for a non-adversarial and fair administrative review of appeals 
submitted under subsection (c)(1).
    ``(c) Appeals Process.--
            ``(1) Right to appeal.--A policyholder of a flood insurance 
        policy issued under the National Flood Insurance Program may 
        appeal the denial of a claim arising under the policy in 
        writing to the Office not later than 1 year after receipt of 
        the denial.
            ``(2) Exhaustion of administrative appeals required before 
        filing civil action.--A policyholder of a flood insurance 
        policy issued under the National Flood Insurance Program may 
        not institute an action on a denied claim arising under the 
        policy against the Administrator in a United States district 
        court under section 1333 or 1341, as applicable, unless the 
        policyholder has exhausted the appeals process under this 
        section.
    ``(d) Duties and Responsibilities.--In administering appeals 
submitted under subsection (c)(1), the Office shall--
            ``(1) issue final appeal decisions through an appeal 
        process established by the Office;
            ``(2) disseminate information to appellants concerning the 
        information that an appellant may include in the appeal 
        submissions;
            ``(3) provide an appellant with an opportunity to discuss 
        any issue on appeal with a claims expert in the Office;
            ``(4) provide aggregated appeals data to the Office of the 
        Flood Insurance Advocate for use in fulfilling the duties and 
        responsibilities of that office under section 24(b) of the 
        Homeowner Flood Insurance Affordability Act of 2014 (42 U.S.C. 
        4033(b)); and
            ``(5) publish final appeal decisions to a public-facing 
        website--
                    ``(A) to inform the public; and
                    ``(B) for awareness to support transparency and 
                training for Write Your Own Companies and contractors 
                of the Federal Emergency Management Agency.
    ``(e) Regulations.--
            ``(1) In general.--For purposes of implementing the appeals 
        process under this section, the Administrator may promulgate 
        new regulations or use regulations that were in effect on the 
        date of enactment of this section, except that--
                    ``(A) the Administrator may not declare any appeal 
                ineligible if the policyholder submits the appeal to 
                the Office not later than 1 year after the date on 
                which the policyholder receives the denial of the 
                applicable claim, as required under subsection (c)(1);
                    ``(B) upon receiving all information necessary to 
                complete an appeal, the Office shall notify the 
                appellant that the Office will make a final decision 
                not later than 90 days after receipt of that 
                information; and
                    ``(C) not later than 90 days after receipt of all 
                information necessary to complete an appeal, the Office 
                shall make a final decision on the appeal.
            ``(2) Enforcement of final decision deadline.--If the 
        Office does not comply with the deadline under paragraph (1)(C) 
        with respect to an appeal, and the policyholder that brought 
        the appeal is ultimately successful, the Administrator shall 
        pay to the policyholder interest on the claim that is the 
        subject of the appeal, which shall--
                    ``(A) begin accruing on the date on which the 
                policyholder submits the appeal; and
                    ``(B) be calculated using the rate of return on a 
                3-year Treasury bill, as in effect on the date 
                described in subparagraph (A).
            ``(3) All information necessary.--For purposes of paragraph 
        (1), the term `all information necessary' includes information 
        obtained from a physical reinspection of the property or from 
        an expert report, if that information is needed in order to 
        complete the review of the appeal.
            ``(4) Liability protection.--No cause of action shall lie 
        or be maintained in any court against the United States, and 
        any such action shall be promptly dismissed, for violation of 
        the notification requirement under paragraph (1)(B).''.
            (2) Effective date for new appeals process.--Subsection (c) 
        of section 1349 of the National Flood Insurance Act of 1968, as 
        added by paragraph (1), shall take effect on the date that is 
        180 days after the date of enactment of this Act.
    (b) Repeal and Transfer.--
            (1) In general.--Effective on the date that is 180 days 
        after the date of enactment of this Act, section 205 of the 
        Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 
        (42 U.S.C. 4011 note; Public Law 108-264) is repealed, and any 
        appeals that were pending before the Administrator under that 
        section on the day before that effective date shall be 
        transferred to the Independent Office for Policyholder Appeals 
        established under section 1349 of the National Flood Insurance 
        Act of 1968 (as added by subsection (a)) for disposition under 
        such section 1349.
            (2) Technical and conforming amendments.--
                    (A) Table of contents.--The table of contents for 
                the Bunning-Bereuter-Blumenauer Flood Insurance Reform 
                Act of 2004 (Public Law 108-264; 118 Stat. 712) is 
                amended by striking the item relating to section 205.
                    (B) Other amendment.--Section 204(a)(3) of the 
                Bunning-Bereuter-Blumenauer Flood Insurance Reform Act 
                of 2004 (42 U.S.C. 4011 note; Public Law 108-264) is 
                amended by striking ``section 205'' and inserting 
                ``section 1349 of the National Flood Insurance Act of 
                1968''.
    (c) Judicial Review Reform.--
            (1) Government program with industry assistance.--Section 
        1341 of the National Flood Insurance Act of 1968 (42 U.S.C. 
        4072) is amended--
                    (A) by striking ``In the event the program'' and 
                inserting the following:
    ``(a) In General.--If the program'';
                    (B) in subsection (a), as so designated--
                            (i) by inserting ``or the Administrator's 
                        fiscal agent'' after ``upon the disallowance by 
                        the Administrator'';
                            (ii) by striking ``within one year after 
                        the date of mailing of notice of disallowance 
                        or partial disallowance by the Administrator, 
                        may institute an action against the 
                        Administrator on such claim'' and inserting 
                        ``not later than 1 year after exhausting 
                        available administrative remedies, may 
                        institute an action against the insurer on such 
                        claim''; and
                    (C) by adding at the end the following:
    ``(b) Exhaustion of Administrative Remedies.--For the purposes of 
subsection (a), a claimant exhausts available administrative remedies 
if--
            ``(1) the claimant submits an appeal and complies with all 
        requirements of the appeal process established under section 
        1349 and other applicable requirements; and
            ``(2) the Administrator--
                    ``(A) issues a final decision on the appeal that 
                partially or fully concurs with the insurer's 
                disallowance or partial disallowance of the claim; or
                    ``(B) the Administrator makes no finding regarding 
                the appeal by the date that is 90 days after the date 
                on which the Administrator acknowledges receipt and 
                acceptance of the appeal.
    ``(c) Limitations.--
            ``(1) Issues raised on appeal.--An action may not be 
        instituted under this section for any issue of a claim that was 
        not presented to the Administrator on appeal.
            ``(2) Weight of administrator's disposition.--For purposes 
        of this section, disposition of an appeal by the Administrator 
        shall not be competent evidence of liability or the amount of 
        damages.''.
            (2) Industry program with federal financial assistance.--
        Section 1333 of the National Flood Insurance Act of 1968 (42 
        U.S.C. 4053) is amended--
                    (A) by striking ``The insurance companies and other 
                insurers'' and inserting the following:
    ``(a) In General.--The insurance companies and other insurers'';
                    (B) in subsection (a), as so designated, by 
                striking ``within one year after the date of mailing of 
                notice of disallowance or partial disallowance of the 
                claim, may institute an action on such claim against 
                such company or other insurer'' and inserting ``not 
                later than 1 year after exhausting available 
                administrative remedies, may institute an action on the 
                claim against the company or other insurer''; and
                    (C) by adding at the end the following:
    ``(b) Exhaustion of Administrative Remedies.--For the purposes of 
subsection (a), a claimant exhausts available administrative remedies 
if--
            ``(1) the claimant submits an appeal and complies with all 
        requirements of the appeal process established under section 
        1349 and other applicable requirements; and
            ``(2) the Administrator--
                    ``(A) issues a final decision on the appeal that 
                partially or fully concurs with the insurer's 
                disallowance or partial disallowance of the claim; or
                    ``(B) the Administrator makes no finding regarding 
                the appeal by the date that is 90 days after the date 
                on which the Administrator acknowledges receipt and 
                acceptance of the appeal.
    ``(c) Limitations.--
            ``(1) Issues raised on appeal.--An action may not be 
        instituted under this section for any issue of a claim that was 
        not presented to the Administrator on appeal.
            ``(2) Weight of administrator's disposition.--For purposes 
        of this section, disposition of an appeal by the Administrator 
        shall not be competent evidence of liability or the amount of 
        damages.''.

SEC. 405. ACCOUNTABILITY FOR UNDERPAYMENTS AND OVERPAYMENTS BY WRITE 
              YOUR OWN COMPANIES.

    Section 1348 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4084) is amended by adding at the end the following:
    ``(c) Underpayments and Overpayments.--
            ``(1) Accountability for underpayments.--If the 
        Administrator determines through any audit that the pool or an 
        insurance company or other private organization described in 
        subsection (a) has not adjusted a claim in accordance with 
        adjusting standards that are in effect as of the date on which 
        the adjustment is performed and, as a result of that failure, 
        has underpaid or overpaid a claim of a policyholder, the 
        penalty imposed by the Administrator with respect to such a 
        failure may not be less for an overpayment of a claim than for 
        an underpayment of a claim.
            ``(2) Safe harbor for certain overpayments.--The 
        Administrator may not impose a penalty on the pool or an 
        insurance company or other private organization described in 
        subsection (a) for overpayment of a claim of a policyholder for 
        reasons described in paragraph (1) of this subsection if--
                    ``(A) the overpayment was not in bad faith; and
                    ``(B) the amount of the overpayment was not more 
                than 4 percent of the coverage limit of the policy.
    ``(d) GAO Report.--Not later than 2 years after the date of 
enactment of this subsection, and triennially thereafter, the 
Comptroller General of the United States shall submit to the Committee 
on Banking, Housing, and Urban Affairs of the Senate and the Committee 
on Financial Services of the House of Representatives a report 
regarding any penalties imposed by the Administrator under subsection 
(c)(1).''.

SEC. 406. POLICYHOLDERS' RIGHT TO KNOW.

    (a) Use.--Section 1312 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4019), as amended by section 403(c), is amended by adding at 
the end the following:
    ``(h) Use of Technical Assistance Reports.--When adjusting claims 
for any damage to or loss of property that is covered by flood 
insurance made available under this title, the Administrator may rely 
upon technical assistance reports, as defined in section 1312A(a), only 
if the reports are final and are prepared in compliance with applicable 
State and Federal laws regarding professional licensure and conduct.''.
    (b) Disclosure.--Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.) is amended by inserting after section 
1312 (42 U.S.C. 4019) the following:

``SEC. 1312A. DISCLOSURE OF CLAIMS DOCUMENTS AND TECHNICAL ASSISTANCE 
              REPORTS.

    ``(a) Definitions.--In this section--
            ``(1) the term `policyholder' means any person listed as a 
        named or additional insured on the declarations page of a 
        policy for flood insurance coverage made available under this 
        title; and
            ``(2) the term `technical assistance report' means a report 
        created for the purpose of furnishing technical assistance to 
        an insurance claims adjuster assigned under the national flood 
        insurance program, including any report created by an engineer, 
        a surveyor, a salvor, an architect, or a certified public 
        accountant.
    ``(b) Provision of Copies.--
            ``(1) In general.--Notwithstanding section 552a of title 5, 
        United States Code, not later than 1 week after the date on 
        which the Administrator receives a written request, or a 
        request submitted online, from a policyholder, and with respect 
        to a claim for loss submitted by the policyholder for any 
        damage to or loss of property that is covered by the policy, 
        the Administrator shall provide a true, complete, and 
        unredacted copy of--
                    ``(A) all documents that constitute the claim file 
                of the insurance company with respect to the claim, in 
                accordance with the memorandum issued by the 
                Administrator on June 1, 2018, entitled `Guidance for 
                the Release of Claim File Information to Policyholders' 
                (WYO Bulletin W-18012) (or any successor document);
                    ``(B) any document created by any adjuster in 
                scoping the loss, including measurements, photographs, 
                and notes;
                    ``(C) any estimates of damages with respect to the 
                claim;
                    ``(D) any draft and final technical assistance 
                report relating to adjusting and paying or denying the 
                claim;
                    ``(E) any proof of loss, supplemental proofs of 
                loss, or any equivalent notices, together with 
                supporting documentation, with respect to the claim; 
                and
                    ``(F) any document relating to the denial or 
                partial denial of the claim.
            ``(2) Rule of construction.--Nothing in paragraph (1) may 
        be construed to limit the right of a policyholder to receive a 
        disclosure under section 552a of title 5, United States Code, 
        or any other provision of law.
    ``(c) Direct Disclosure by Write Your Own Companies and Direct 
Servicing Agents.--
            ``(1) In general.--A Write Your Own Company or direct 
        servicing agent in possession of any technical assistance 
        report that is subject to disclosure under subsection (b) may 
        disclose such technical assistance report without further 
        review or approval by the Administrator.
            ``(2) Affirmative notification.--A Write Your Own Company, 
        or any other entity servicing a claim under the national flood 
        insurance program, shall, not later than 30 days after the date 
        on which the company or entity receives notice of a claim, 
        notify the claimant that the claimant or an authorized 
        representative of the claimant may obtain, upon request, a copy 
        of any claim-related document described in subsection (b)(1) 
        that pertains to the claimant.''.
    (c) Transmission of Report Without Approval.--
            (1) Definition.--In this subsection, the term ``final 
        engineering report'' means an engineering report, survey, or 
        other document in connection with a claim for losses covered by 
        a policy for flood insurance coverage made available under the 
        National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) 
        that--
                    (A) is based on an on-site inspection;
                    (B) contains final conclusions with respect to an 
                engineering issue or issues involved in the claim; and
                    (C) is signed by the responsible in charge or 
                affixed with the seal of the responsible in charge, or 
                both.
            (2) Transmission.--A Write Your Own Company or a National 
        Flood Insurance Program direct servicer may, without obtaining 
        further review or approval by the Administrator, transmit to a 
        policyholder a final engineering report in the possession of 
        the Write Your Own Company or the direct servicer in connection 
        with a claim submitted by the policyholder.

SEC. 407. EXCLUSION OF SERVICE PROVIDERS FROM PARTICIPATION IN THE 
              NATIONAL FLOOD INSURANCE PROGRAM.

    Part C of chapter II of the National Flood Insurance Act of 1968 
(42 U.S.C. 4081 et seq.), as amended by section 404, is amended by 
adding at the end the following:

``SEC. 1350. EXCLUSION OF CERTAIN SERVICE PROVIDERS FROM PARTICIPATION 
              IN THE NATIONAL FLOOD INSURANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Excluded service provider.--The term `excluded 
        service provider' means a service provider that is excluded by 
        the Administrator under this section from participation in the 
        National Flood Insurance Program.
            ``(2) Service provider.--The term `service provider' means 
        any attorney, accountant, appraiser, adjuster, engineer, or 
        other individual or entity that directly or indirectly 
        provides, has provided, or is likely to provide services to the 
        National Flood Insurance Program.
            ``(3) Should know.--The term `should know'--
                    ``(A) means that a person, with respect to 
                information, acts in deliberate ignorance of, or in 
                reckless disregard of, the truth or falsity of the 
                information; and
                    ``(B) does not require specific intent to defraud.
    ``(b) Effect of Exclusion.--
            ``(1) Prohibition on making payments to excluded service 
        providers.--The Administrator may not make any payment or 
        reimbursement for any service furnished under this title by a 
        service provider excluded under this section during the period 
        of exclusion.
            ``(2) Prohibition on entering into new contracts or 
        agreements.--The Administrator may not enter into or extend any 
        contract or agreement under this title with a service provider 
        excluded under this section during the period of exclusion.
            ``(3) Exception.--The Administrator may waive the 
        applicability of paragraph (1) or (2) to a particular 
        transaction upon making a written determination that the waiver 
        is essential for the operation of the National Flood Insurance 
        Program.
    ``(c) Causes for Exclusion.--The Administrator may exclude from 
participation in the National Flood Insurance Program a service 
provider--
            ``(1) that is criminally convicted or found civilly liable 
        (as applicable) for--
                    ``(A) any act in connection with obtaining, 
                attempting to obtain, or performing a contract or 
                subcontract for the National Flood Insurance Program;
                    ``(B) fraud, embezzlement, theft, forgery, bribery, 
                falsification or destruction of records, making false 
                statements, tax evasion, violating Federal tax laws, or 
                receiving stolen property;
                    ``(C) an act relating to fraud, corruption, breach 
                of fiduciary responsibility, or other financial 
                misconduct in connection with the business of 
                insurance;
                    ``(D) any other act indicating a lack of business 
                integrity or business honesty that seriously and 
                directly affects the responsibility of a service 
                provider to provide services to the National Flood 
                Insurance Program; or
                    ``(E) attempting, soliciting, or conspiring to 
                commit an act described in subparagraphs (A) through 
                (D);
            ``(2) that is, at the time of the exclusion under this 
        subsection, debarred, suspended, or otherwise excluded from any 
        procurement or nonprocurement activity (within the meaning of 
        section 2455 of the Federal Acquisition Streamlining Act of 
        1994 (31 U.S.C. 6101 note; Public Law 103-355));
            ``(3) whose license to provide professional services has 
        been revoked, suspended, restricted, or not renewed, by a State 
        licensing authority for reasons relating to the provider's 
        professional competence, professional performance, or financial 
        integrity;
            ``(4) that surrendered a license described in paragraph (3) 
        while a formal disciplinary proceeding was pending before a 
        State licensing authority, if the proceeding concerned the 
        provider's professional competence, professional performance, 
        or financial integrity;
            ``(5) that has provided professional services to the 
        National Flood Insurance Program--
                    ``(A) at a price or rate substantially higher than 
                the provider's customary charge for such services;
                    ``(B) in a manner that substantially exceeds the 
                needs of the National Flood Insurance Program; or
                    ``(C) that are of a quality that fails to meet 
                professionally recognized standards for those services;
            ``(6) that has violated the terms of a contract or 
        agreement related to the National Flood Insurance Program to an 
        extent so serious as to justify exclusion under this 
        subsection, such as--
                    ``(A) willful failure to perform in accordance with 
                the terms of a contract or agreement related to the 
                National Flood Insurance Program; or
                    ``(B) a history of failure to perform, or of 
                unsatisfactory performance of, a contract or agreement 
                related to the National Flood Insurance Program;
            ``(7) that has engaged in conduct detrimental to the 
        National Flood Insurance Program so serious or compelling in 
        nature that it affects the responsibility of the service 
        provider to provide services to the National Flood Insurance 
        Program; or
            ``(8) that, in the case of an attorney, has committed an 
        act subject to disbarment under paragraph (1), regardless of 
        criminal or civil findings of liability.
    ``(d) Exclusion of Affiliates.--The Administrator may exclude from 
participation in the National Flood Insurance Program a service 
provider that--
            ``(1) is an entity directly or indirectly owned, or with a 
        control interest of 5 percent or more held, by an individual or 
        entity excluded from participation under this section; or
            ``(2)(A) directly or indirectly owns, has a control 
        interest in, or is an officer or managing employee of an entity 
        excluded under this section; and
            ``(B) knows or should know of the action constituting the 
        basis for the entity's exclusion.
    ``(e) Notice and Decision-Making.--
            ``(1) Notice of proposal to exclude.--Before excluding a 
        service provider under this section, the Administrator shall 
        issue a notice of proposed exclusion to the service provider, 
        by certified mail, return receipt requested, that states--
                    ``(A) that the exclusion is being considered;
                    ``(B) the reasons for the proposed exclusion in 
                terms sufficient to put the service provider on notice 
                of the conduct or transaction upon which it is based;
                    ``(C) the cause relied upon under subsection (c) 
                for proposing exclusion;
                    ``(D) that, not later than 30 days after receipt of 
                the notice, the service provider may submit, in person, 
                in writing, or through a representative, information 
                and argument in opposition to the proposed exclusion, 
                including any additional specific information that 
                raises a genuine dispute over the material facts;
                    ``(E) the Administrator's procedures governing 
                exclusion decision-making;
                    ``(F) the effect of the issuance of the notice of 
                proposed exclusion; and
                    ``(G) the potential effect of an actual exclusion.
            ``(2) Administrator's decision to exclude.--
                    ``(A) Exclusion based on conviction or judgment or 
                without dispute over material facts.--
                            ``(i) In general.--In the case of a 
                        proposed exclusion under this section based on 
                        a criminal conviction or civil judgment, or in 
                        which there is no genuine dispute over material 
                        facts, the Administrator shall make an 
                        exclusion decision on the basis of all the 
                        information in the administrative record, 
                        including any submission made by the service 
                        provider.
                            ``(ii) Timing.--The Administrator shall 
                        make a decision under clause (i) not later 
                        than--
                                    ``(I) 30 days after receipt of any 
                                information and argument submitted by 
                                the service provider in opposition to 
                                the proposed exclusion, unless the 
                                Administrator extends that period for 
                                good cause; or
                                    ``(II) if the service provider does 
                                not submit any information or argument 
                                in opposition to the proposed 
                                exclusion, 60 days after the date on 
                                which the Administrator issues the 
                                notice of proposed exclusion under 
                                paragraph (1), unless the Administrator 
                                extends that period for good cause.
                    ``(B) Exclusion proceedings involving dispute of 
                material fact.--
                            ``(i) Written findings of fact.--In the 
                        case of a proposed exclusion under this section 
                        in which additional proceedings are necessary 
                        to resolve disputed material facts, the 
                        Administrator shall prepare written findings of 
                        fact.
                            ``(ii) Basis for factual findings.--The 
                        Administrator shall base a determination under 
                        clause (i) on the facts as found, together with 
                        any information and argument submitted by the 
                        service provider and any other information in 
                        the administrative record.
                            ``(iii) Referral to administrative law 
                        judge.--The Administrator--
                                    ``(I) may refer a matter involving 
                                disputed material facts to an 
                                administrative law judge for findings 
                                of fact; and
                                    ``(II) may reject any findings of 
                                fact made under subclause (I), in whole 
                                or in part, only after specifically 
                                determining them to be arbitrary and 
                                capricious or clearly erroneous.
                            ``(iv) Conclusion of proceedings.--The 
                        Administrator shall make a decision regarding a 
                        proposed exclusion under this subparagraph 
                        after the conclusion of the proceedings with 
                        respect to disputed facts.
                    ``(C) Burden of proof.--In the case of any proposed 
                exclusion under this section that is not based on a 
                criminal conviction or civil judgment, the cause for 
                exclusion shall be established by a preponderance of 
                the evidence.
            ``(3) Notice of exclusion decision.--
                    ``(A) Notice of exclusion.--If the Administrator 
                decides to exclude a service provider from 
                participation in the National Flood Insurance Program 
                under this section, the Administrator shall provide the 
                service provider prompt notice by certified mail, 
                return receipt requested--
                            ``(i) referring to the notice of proposed 
                        exclusion;
                            ``(ii) specifying the reasons for 
                        exclusion; and
                            ``(iii) stating the period of exclusion, 
                        including effective dates.
                    ``(B) Notice of no exclusion.--If the Administrator 
                decides not to exclude a service provider from 
                participation in the National Flood Insurance Program 
                under this section, the Administrator shall promptly 
                notify the service provider, by certified mail, return 
                receipt requested.
    ``(f) Considerations When Making Exclusion Determination.--A 
determination relating to the appropriateness of excluding a service 
provider under this section or the length of such an exclusion is 
committed to the Administrator's sole discretion, but in making such a 
determination, the Administrator shall consider--
            ``(1) the nature of any services involved and the 
        circumstances under which they were provided;
            ``(2) the degree of culpability and history of prior 
        offenses or improper conduct of the service provider involved; 
        and
            ``(3) such other matters as justice may require.
    ``(g) Notification to Licensing Agencies of Exclusion.--The 
Administrator shall--
            ``(1) promptly notify the appropriate agency or authority 
        having responsibility for the licensing or certification of a 
        service provider excluded under this section of the fact of the 
        exclusion, as well as the reasons for the exclusion;
            ``(2) request that appropriate investigations be made and 
        sanctions invoked in accordance with applicable law and policy; 
        and
            ``(3) request that the agency or authority keep the 
        Administrator fully and currently informed with respect to any 
        actions taken in response to the request.
    ``(h) Construction.--
            ``(1) Determination of conviction.--
                    ``(A) In general.--For the purposes of this 
                section, an individual or entity shall be considered to 
                have been convicted of a criminal offense if--
                            ``(i) a judgment of conviction for the 
                        offense has been entered against the individual 
                        or entity by a Federal, State, or local court;
                            ``(ii) there has been a finding of guilt 
                        against the individual or entity by a Federal, 
                        State, or local court with respect to the 
                        offense;
                            ``(iii) a plea of guilty or nolo contendere 
                        by the individual or entity has been accepted 
                        by a Federal, State, or local court with 
                        respect to the offense; or
                            ``(iv) the case of an individual, the 
                        individual has entered a first offender or 
                        other program pursuant to which a judgment of 
                        conviction for the offense has been withheld.
                    ``(B) Effect of appeal or request for relief.--A 
                determination of conviction under subparagraph (A) 
                shall be made without regard to the pendency or outcome 
                of any appeal (other than a judgment of acquittal based 
                on innocence) or request for relief on behalf of the 
                individual or entity.
            ``(2) Application of other proceedings.--This section shall 
        not be construed to limit or supersede any other Federal or 
        State criminal or civil action or Federal suspension or 
        debarment proceeding.''.

SEC. 408. DEADLINE FOR CLAIM PROCESSING.

    (a) In General.--Section 1312 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4019), as amended by section 406(a), is amended by 
adding at the end the following:
    ``(i) Deadline for Approval of Claims.--
            ``(1) In general.--The Administrator shall provide that, in 
        the case of a claim for damage to or loss of property that is 
        covered by a policy for flood insurance made available under 
        this title--
                    ``(A) except as provided in paragraph (2), not 
                later than 60 days after the date on which a proof of 
                loss or comparable submission is provided to the 
                Administrator--
                            ``(i) an initial determination regarding 
                        approval of the claim for payment or 
                        disapproval of the claim shall be made; and
                            ``(ii) notification of the determination 
                        described in clause (i) shall be provided to 
                        the policyholder making the claim; and
                    ``(B) payment of an approved claim shall be made as 
                soon as possible after that approval.
            ``(2) Extension of deadline.--The Administrator shall--
                    ``(A) provide that the period described in 
                paragraph (1)(A) may be extended by an additional 
                period of 30 days under extraordinary circumstances; 
                and
                    ``(B) by regulation--
                            ``(i) establish criteria for--
                                    ``(I) demonstrating the 
                                extraordinary circumstances described 
                                in subparagraph (A); and
                                    ``(II) determining to which claims 
                                the extraordinary circumstances 
                                described in subparagraph (A) apply; 
                                and
                            ``(ii) provide that, if the deadline 
                        imposed under paragraph (1)(A), as extended 
                        under subparagraph (A), if applicable, is not 
                        satisfied the amount of the claim to which the 
                        deadline relates shall be increased with 
                        interest, which shall begin accruing on the 
                        date on which the initial claim is filed.
            ``(3) Deadline tolled during certain communication with 
        policyholder.--The deadline under paragraph (1) shall be tolled 
        during any period during which the Administrator or a Write 
        Your Own Company is trying to obtain more information from a 
        policyholder regarding a claim made by the policyholder, or is 
        otherwise working with a policyholder to develop such a 
        claim.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to any claim for damage to or loss of property that is covered by 
a policy for flood insurance made available under the National Flood 
Insurance Program that is made after the date of enactment of this Act.

SEC. 409. NO MANIPULATION OF ENGINEER REPORTS.

    Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 
4019), as amended by section 408(a), is amended by adding at the end 
the following:
    ``(j) Final Engineering Reports.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `covered claim' means any claim for 
                losses covered by a policy for flood insurance coverage 
                made available under this title; and
                    ``(B) the term `final engineering report' means an 
                engineering report, survey, or other document in 
                connection with a covered claim that--
                            ``(i) is based on an on-site inspection;
                            ``(ii) contains final conclusions with 
                        respect to an engineering issue or issues 
                        involved in the claim; and
                            ``(iii) is signed by the responsible in 
                        charge or affixed with the seal of the 
                        responsible in charge, or both.
            ``(2) Prohibition on manipulation and transmission to third 
        parties.--The Administrator shall require that, in the case of 
        any on-site inspection of a property by an engineer for the 
        purpose of assessing any covered claim, the final engineering 
        report--
                    ``(A) may not--
                            ``(i) include alterations by, or at the 
                        request of, anyone other than the person 
                        responsible for the report; or
                            ``(ii) be transmitted to any other person 
                        before the final engineering report is 
                        transmitted to the policyholder who submitted 
                        the covered claim; and
                    ``(B) shall include a certification, signed by the 
                person responsible for the final engineering report, 
                that the final engineering report does not contain any 
                alterations described in subparagraph (A).''.

SEC. 410. IMPROVED TRAINING OF FLOODPLAIN MANAGERS, AGENTS, AND 
              ADJUSTERS.

    (a) Local Floodplain Managers.--Each regional office of the Federal 
Emergency Management Agency shall--
            (1) provide training to local floodplain managers, agents, 
        and claim adjusters in the region regarding the 
        responsibilities and procedures of local floodplain managers 
        with respect to conducting substantial damage and substantial 
        improvement determinations;
            (2) work with applicable State agencies to provide the 
        training described in paragraph (1); and
            (3) verify that the individuals described in paragraph (1) 
        are completing the training described in that paragraph.
    (b) Major Disaster Training.--After a flood that is declared a 
major disaster by the President under section 401 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), 
the Administrator shall, if determined appropriate, provide--
            (1) refresher training to prepare insurance claims 
        adjusters for the unique circumstances of the major disaster; 
        and
            (2) any briefings that are necessary to prepare and inform 
        floodplain managers, agents, and claim adjusters regarding any 
        atypical circumstances and issues arising from the natural 
        disaster.

SEC. 411. FLOOD INSURANCE CONTINUING EDUCATION AND TRAINING.

    (a) In General.--The Bunning-Bereuter-Blumenauer Flood Insurance 
Reform Act of 2004 (Public Law 108-264; 118 Stat. 712) is amended--
            (1) in section 201 (42 U.S.C. 4011 note)--
                    (A) in paragraph (1), by striking ``Director of 
                the'' and inserting ``Administrator of the''; and
                    (B) in paragraph (2), by inserting ``4001'' after 
                ``U.S.C.''; and
            (2) by striking section 207 (42 U.S.C. 4011 note) and 
        inserting the following:

``SEC. 207. CONTINUING EDUCATION REQUIREMENTS FOR INSURANCE AGENTS.

    ``(a) In General.--The Director shall require each insurance agent 
who sells flood insurance policies to, once every 2 years, complete a 
3-hour continuing education course that--
            ``(1) subject to subsection (c), is approved by the 
        insurance commissioner of the State in which the agent is a 
        legal resident; and
            ``(2) focuses on issues with respect to the Program.
    ``(b) Failure To Complete Course.--If an insurance agent who sells 
flood insurance policies does not complete a continuing education 
course required under subsection (a), the agent, until the date on 
which the agent completes the course in accordance with the 
requirements of this section, may not--
            ``(1) sell flood insurance policies; or
            ``(2) perform any duties with respect to the Program.
    ``(c) Agents Licensed in Multiple States.--
            ``(1) In general.--If an insurance agent who sells flood 
        insurance policies is licensed to sell insurance in more than 1 
        State--
                    ``(A) the agent shall submit proof of completion of 
                a continuing education course required under subsection 
                (a) to the insurance commissioner of each State in 
                which the agent is licensed; and
                    ``(B) each insurance commissioner to whom an 
                insurance agent submits a proof of completion under 
                subparagraph (A) may determine whether the course to 
                which that proof of completion relates meets the 
                minimum standards established by that insurance 
                commissioner.
            ``(2) Effect of denial.--If an insurance commissioner of a 
        State (referred to in this paragraph as the `rejecting 
        commissioner') determines under paragraph (1)(B) that a 
        continuing education course taken in another State by an 
        insurance agent who sells flood insurance policies does not 
        meet the minimum standards established by the rejecting 
        commissioner, the insurance agent may not take any action 
        described in paragraph (1) or (2) of subsection (b) until the 
        agent satisfies the minimum requirements established by the 
        rejecting commissioner.
    ``(d) Rule of Construction.--Any reference in this section to an 
insurance commissioner of a State shall be construed as a reference to 
an equivalent official with respect to any State in which there is no 
official who has the title of insurance commissioner.''.
    (b) Technical and Conforming Amendment.--The table of contents for 
the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 
(Public Law 108-264; 118 Stat. 712) is amended by striking the item 
relating to section 207 and inserting the following:

``Sec. 207. Continuing education requirements for insurance agents.''.

SEC. 412. SHIFTING OF ATTORNEY FEES AND OTHER EXPENSES.

     Section 1341 of the National Flood Insurance Act of 1968 (42 
U.S.C. 4072), as amended by section 405(c), is amended by adding at the 
end the following:
    ``(d) Attorney Fees and Other Expenses.--A Write Your Own Company 
against which an action is instituted under this subsection shall be 
considered an agency of the United States for the purposes of section 
2412(d) of title 28, United States Code.''.

SEC. 413. RESTRICTION ON DEFENSE OF CLAIMS LITIGATION.

    (a) Restriction on Defense of Claims Litigation.--
            (1) In general.--Section 1345 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4081) is amended by adding at 
        the end the following:
    ``(f) Restriction on Defense of Claims Litigation.--The 
Administrator may not enter into any contract, agreement, or other 
appropriate arrangement under subsection (a) that delegates the 
authority of the Administrator to defend actions instituted under 
section 1341.''.
            (2) Implementation.--Notwithstanding any other provision of 
        law, the Administrator may implement the amendment made by 
        paragraph (1) by adopting 1 or more standard endorsements to 
        the Standard Flood Insurance Policy by publication of those 
        standards in the Federal Register, or by comparable means.
            (3) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date that is 1 year after the date of 
        enactment of this Act.
            (4) Transition.--Notwithstanding the amendment made by 
        paragraph (1), in the case of an action instituted under 
        subsection (b) of section 1341 of the National Flood Insurance 
        Act of 1968 (42 U.S.C. 4072), as added by section 407, before 
        the effective date under paragraph (3) of this subsection, the 
        Administrator may authorize a Write Your Own Company to 
        continue to defend the action after that effective date.
    (b) Appointment of Temporary Personnel.--
            (1) In general.--Section 1341 of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4072), as amended by section 
        412, is amended by adding at the end the following:
    ``(e) Appointment of Temporary Personnel.--The Administrator may 
appoint and fix the compensation of such temporary personnel as may be 
necessary to support the defense of an action instituted under this 
section, without regard to the provisions of title 5, United States 
Code, governing appointments in the competitive service.''.
            (2) Funding.--Section 1310(d)(1) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4017(d)(1)) is amended by 
        inserting after ``losses,'' the following: ``including the 
        costs associated with the hiring of temporary personnel under 
        section 1341(e),''.

SEC. 414. REFORMING USE OF PROOF OF LOSS FORMS.

    (a) In General.--Section 1312 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4019), as amended by section 409, is amended by 
adding at the end the following:
    ``(k) No Condition of Payment of Undisputed Claim on Proof of 
Loss.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, or any term or condition of a standard flood insurance 
        policy, the Administrator--
                    ``(A) may not condition payment of an undisputed 
                claim based on the submission of a proof of loss; and
                    ``(B) may instead accept a report submitted by the 
                insurance adjuster the Administrator hires to 
                investigate the claim, if the report is signed by the 
                policyholder, unless the Administrator determines that 
                conditions make signature impracticable.
            ``(2) Refusal to accept amount paid.--Upon the refusal of a 
        policyholder to accept the amount paid under paragraph (1), the 
        Administrator may require the policyholder to submit a proof of 
        loss within a timeframe determined by the Administrator.''.
    (b) Guidance to Defense Attorneys.--The Administrator shall issue 
guidance for best practices for attorneys defending actions instituted 
under section 1333 or 1341, as applicable, of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4053, 4072) (as amended by section 
404(c)) relating to how to respond to unintentional errors in a proof 
of loss submitted by a policyholder under the National Flood Insurance 
Policy.

SEC. 415. AGENT ADVISORY COUNCIL.

    Part C of chapter II of the National Flood Insurance Act of 1968 
(42 U.S.C. 4081 et seq.), as amended by section 407, is amended by 
adding at the end the following:

``SEC. 1351. AGENT ADVISORY COUNCIL.

    ``(a) Establishment.--There is established a council to be known as 
the Agent Advisory Council (in this section referred to as the 
`Council').
    ``(b) Membership.--
            ``(1) Members.--The Council shall consist of--
                    ``(A) the Administrator, or the designee of the 
                Administrator; and
                    ``(B) 11 additional members appointed by the 
                Administrator or the designee of the Administrator, of 
                whom--
                            ``(i) 1 shall be a member of the National 
                        Association of Insurance Commissioners;
                            ``(ii) 2 shall be members of the 
                        Independent Insurance Agents and Brokers of 
                        America;
                            ``(iii) 1 shall be a member of United 
                        Policyholders;
                            ``(iv) 1 shall be a representative of the 
                        Emergency Management Institute of the Federal 
                        Emergency Management Agency;
                            ``(v) 1 shall be a representative of the 
                        Office of the Flood Insurance Advocate of the 
                        Federal Emergency Management Agency;
                            ``(vi) 2 shall be members of the National 
                        Association of Professional Insurance Agents;
                            ``(vii) 1 shall be a representative of a 
                        recognized professional association or 
                        organization representing homebuilders or land 
                        developers;
                            ``(viii) 1 shall be a representative of a 
                        recognized professional association or 
                        organization representing the real estate 
                        industry; and
                            ``(ix) 1 of whom shall be a representative 
                        of a recognized consumer protection group.
            ``(2) Qualifications.--
                    ``(A) In general.--Each member of the Council shall 
                have experience with--
                            ``(i) contacting policyholders under the 
                        national flood insurance program, including 
                        with respect to applying for flood insurance 
                        and processing a claim for damage to or loss of 
                        property that is covered by flood insurance; 
                        and
                            ``(ii) riverine and coastal flood insurance 
                        policies.
                    ``(B) Considerations.--The Administrator shall, to 
                the maximum extent practicable, ensure that the 
                membership of the Council has a balance of governmental 
                and private members, and includes geographic diversity.
                    ``(C) Conflicts of interest.--A member of the 
                Council--
                            ``(i) may not, while serving on the 
                        Council, be employed or retained--
                                    ``(I) by a Federal Emergency 
                                Management Agency contractor or 
                                consultant; or
                                    ``(II) by a nongovernmental entity 
                                that was awarded a Federal grant during 
                                the 5-year period preceding the date on 
                                which the member was appointed to the 
                                Council; and
                            ``(ii) may not have been employed by a 
                        Federal Emergency Management Agency contractor 
                        or consultant during the 5-year period 
                        preceding the date on which the member was 
                        appointed to the Council.
            ``(3) Consultation.--In appointing a member of the Council 
        from an entity described in clauses (i) through (viii) of 
        paragraph (1)(B), the Administrator or the designee of the 
        Administrator, as applicable, shall consult with the entity.
            ``(4) Chairperson.--The members of the Council shall elect 
        1 member to serve as the chairperson of the Council (in this 
        section referred to as the `Chairperson').
    ``(c) Duties.--The Council shall--
            ``(1) provide recommendations to the Administrator on--
                    ``(A) improving the customer experience for 
                policyholders under the national flood insurance 
                program;
                    ``(B) training insurance agents that issue flood 
                insurance policies; and
                    ``(C) improving the processing and handling of 
                claims for damage to or loss of property that is 
                covered by flood insurance; and
            ``(2) submit to the Administrator an annual report that 
        includes--
                    ``(A) a description of the activities of the 
                Council; and
                    ``(B) a summary of recommendations made by the 
                Council to the Administrator.
    ``(d) Compensation.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        member of the Council shall receive no additional compensation 
        for serving on the Council.
            ``(2) Travel expenses.--Each member of the Council may be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, in accordance with sections 5702 and 5703 of title 
        5, United States Code, while away from their homes or regular 
        places of business in performance of services for the Council.
    ``(e) Meetings and Actions.--
            ``(1) Meetings.--
                    ``(A) In general.--The Council shall meet not less 
                frequently than twice each year at the request of the 
                Chairperson or a majority of the members of the 
                Council.
                    ``(B) Initial meeting.--The Administrator, or a 
                designee of the Administrator, shall request and 
                coordinate the initial meeting of the Council.
            ``(2) Action by majority vote.--The Council may take action 
        by a vote of the majority of the members.
    ``(f) Officers.--The Chairperson may appoint officers to assist in 
carrying out the duties of the Council under subsection (c).
    ``(g) Staff.--Upon the request of the Chairperson, the 
Administrator may detail, on a nonreimbursable basis, personnel of the 
Office of the Flood Insurance Advocate of the Federal Emergency 
Management Agency to assist the Council in carrying out the duties of 
the Council.
    ``(h) Powers.--In carrying out this section, the Council may hold 
hearings, receive evidence and assistance, provide information, and 
conduct research as the Council considers appropriate.
    ``(i) Report to Congress and OMB.--The Administrator shall submit 
to the Committee on Banking, Housing, and Urban Affairs of the Senate, 
the Committee on Financial Services of the House of Representatives, 
and the Director of the Office of Management and Budget an annual 
report on--
            ``(1) the recommendations made by the Council; and
            ``(2) any recommendations made by the Council during the 
        year covered by the report that, as of the date on which the 
        report is submitted, have been deferred or not acted upon, 
        together with an explanatory statement with respect to those 
        recommendations.
    ``(j) Applicability of the Federal Advisory Committee Act.--Section 
14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the Council.''.

SEC. 416. DISCLOSURE OF FLOOD RISK INFORMATION PRIOR TO TRANSFER OF 
              PROPERTY.

    (a) In General.--Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.), as amended by section 207, is amended by 
adding at the end the following:

``SEC. 1328. DISCLOSURE OF FLOOD RISK INFORMATION PRIOR TO TRANSFER OF 
              PROPERTY.

    ``(a) In General.--After September 30, 2022, no new flood insurance 
coverage may be provided under this title for any real property unless 
an appropriate public body has imposed, by statute or regulation, a 
duty on any seller or lessor of improved real estate to provide to any 
purchaser or lessee (with respect to a lease for a term that is not 
shorter than 30 days) of the property a property flood hazard 
disclosure that the Administrator has determined meets the requirements 
of subsection (b).
    ``(b) Disclosure Requirements.--
            ``(1) Requirements for sellers.--A property flood hazard 
        disclosure for the sale of a property shall meet the 
        requirements of this subsection only if the disclosure--
                    ``(A) is made in writing;
                    ``(B) discloses any actual knowledge of the seller 
                of any--
                            ``(i) prior physical damage caused by flood 
                        to a structure located on the property;
                            ``(ii) prior insurance claim for a loss 
                        covered under the national flood insurance 
                        program or private flood insurance with respect 
                        to the property;
                            ``(iii) previous notification regarding the 
                        designation of the property as a repetitive 
                        loss structure or severe repetitive loss 
                        structure (as defined in section 1366(h)); and
                            ``(iv) Federal legal obligation to obtain 
                        and maintain flood insurance running with the 
                        property;
                    ``(C) discloses to the maximum extent feasible, in 
                a manner to be determined by the Administrator--
                            ``(i) the relative flood risk associated 
                        with the property as indicated in flood hazard 
                        data maintained by the Administrator under this 
                        title; and
                            ``(ii) the availability of and approximate 
                        cost of flood insurance for the property; and
                    ``(D) is delivered by, or on behalf of, the seller 
                to the purchaser before the purchaser becomes obligated 
                under any contract to purchase the property.
            ``(2) Requirements for lessors.--A property flood hazard 
        disclosure for a rental property with a lease for a term that 
        is not shorter than 30 days shall meet the requirements of this 
        subsection only if the disclosure--
                    ``(A) is made in writing;
                    ``(B) discloses any actual knowledge of the 
                lessor--
                            ``(i) of any Federal legal obligation to 
                        obtain and maintain flood insurance running 
                        with the property;
                            ``(ii) regarding any prior physical damage 
                        caused by flood with respect to the unit being 
                        leased; and
                            ``(iii) of the availability of coverage 
                        under this title for contents located in a 
                        structure on the property; and
                    ``(C) is delivered by, or on behalf of, the lessor 
                to the lessee before the lessee becomes obligated under 
                any contract to lease the property.
            ``(3) Rule of construction.--Nothing in this section may be 
        construed as preventing a State from adopting disclosure 
        requirements in addition to the requirements of this 
        section.''.
    (b) Availability of Flood Insurance Coverage.--Section 1305(c) 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 and 
        inserting a semicolon;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) given satisfactory assurance that, not later than 
        October 1, 2024, property flood hazard disclosure requirements 
        will have been adopted for the area (or subdivision) that meet 
        the requirements of section 1328.''.
                                 <all>