Title: National Flood Insurance Program Policyholder Protection Act of 2017
Policy area: Finance and Financial Sector

Summary:
National Flood Insurance Program Policyholder Protection Act of 2017
This bill amends the National Flood Insurance Act of 1968 to limit the flood insurance premium for a residential property having four or fewer residences to no more than $10,000 a year, subject to adjustments for future inflation.
In determining premium rates, the Federal Emergency Management Agency (FEMA) shall offer a rate reduction if policyholders implement specified flood damage mitigation methods. Mitigation techniques that qualify for a rate reduction include methods that can be utilized on a block or neighborhood scale, and the elevation of mechanical systems.
FEMA shall conduct a study of the feasibility of providing coverage for individual units in cooperative housing projects.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2868 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2868

    To protect National Flood Insurance Program policyholders from 
 unreasonable premium rates and to require the Program to consider the 
  unique characteristics of urban properties, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 8, 2017

  Mr. Zeldin introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
    To protect National Flood Insurance Program policyholders from 
 unreasonable premium rates and to require the Program to consider the 
  unique characteristics of urban properties, 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 
Policyholder Protection Act of 2017''.

SEC. 2. CAP ON PREMIUMS.

    Paragraph (1) of section 1308(e) of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4015(e)(1)) is amended--
            (1) by striking ``except --'' and inserting ``except as 
        provided in paragraph (4); and'';
            (2) by striking subparagraphs (A) and (B);
            (3) in subparagraph (C)--
                    (A) in clause (ii), by redesignating subclauses (I) 
                and (II) as items (aa) and (bb), respectively;
                    (B) by redesignating clauses (i) through (iii) as 
                subclauses (I) through (III), respectively; and
                    (C) by striking ``(C) in the case of a property 
                that--'' and inserting the following:
            ``(B) The limitations under clauses (i) and (ii) of 
        subparagraph (A) shall not apply in the case of--
                    ``(i) a property identified under section 1307(g); 
                or
                    ``(ii) a property that--'';
            (4) by striking ``under this title for any property'' and 
        inserting the following: ``under this title--
                    ``(i) for any property'';
            (5) by inserting ``(A) subject to subparagraph (B),'' after 
        the paragraph designation; and
            (6) by inserting before subparagraph (B), as so 
        redesignated by the amendment made by paragraph (3)(C) of this 
        section, the following new clause:
                    ``(ii) for any residential property having 4 or 
                fewer residences and for which a valid National Flood 
                Insurance Program Elevation Certificate has been filed 
                with the National Flood Insurance Program within the 
                proceeding calendar year, may not exceed $10,000 in any 
                single year, except that such amount (as it may have 
                been previously adjusted) shall be adjusted for 
                inflation by the Administrator upon the expiration of 
                the 5-year period beginning upon the enactment of the 
                National Flood Insurance Program Policyholder 
                Protection Act of 2017 and upon the expiration of each 
                successive 5-year period thereafter, in accordance with 
                an inflationary index selected by the Administrator.''.

SEC. 3. PREMIUM RATES FOR CERTAIN MITIGATED PROPERTIES.

    (a) Mitigation Strategies.--Paragraph (1) of section 1361(d) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4102(d)(1)) is 
amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking ``and'' at the end; 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraphs:
                    ``(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.--Subsection (k) of section 1308 of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4015(k)) is amended--
            (1) by striking ``shall take into account'' and inserting 
        the following: ``shall--
            ``(1) take into account'';
            (2) in paragraph (1), as so designated by the amendment 
        made by paragraph (1) of this subsection, by striking the 
        period at the end and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(2) offer a reduction of the risk premium rate charged to 
        a policyholder, as determined by the Administrator, if the 
        policyholder implements any mitigation method described in 
        paragraph (1).''.

SEC. 4. STUDY OF FLOOD INSURANCE COVERAGE FOR UNITS IN COOPERATIVE 
              HOUSING.

    The Administrator of the Federal Emergency Management Agency shall 
conduct a study to analyze and determine the feasibility of providing 
flood insurance coverage under the National Flood Insurance Program 
under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) 
for individual dwelling units in cooperative housing projects. Not 
later than the expiration of the 24-month period beginning on the date 
of the enactment of this Act, the Administrator shall submit a report 
to the Committee on Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the Senate 
regarding the findings and conclusions of the study conducted pursuant 
to this section, which shall include a plan setting forth specific 
actions to implement the development of such flood insurance coverage.
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