Title: National Flood Insurance Program Extension and Enhanced Consumer and Community Protections Act of 2018
Policy area: Finance and Financial Sector

Summary:
National Flood Insurance Program Extension and Enhanced Consumer and Community Protections Act of 2018
This bill extends through November 30, 2018, the National Flood Insurance Program and otherwise modifies the program, including with respect to coverage and premiums.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6402 Introduced in House (IH)]

<DOC>






115th CONGRESS
  2d Session
                                H. R. 6402

To extend the National Flood Insurance Program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 2018

Mr. Royce of California (for himself and Mr. Blumenauer) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
To extend 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 
Extension and Enhanced Consumer and Community Protections Act of 
2018''.

SEC. 2. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

    (a) Financing.--Section 1309(a) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4016(a)) is amended by striking ``September 30, 
2017'' and inserting ``November 30, 2018''.
    (b) Program Expiration.--Section 1319 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
``September 30, 2017'' and inserting ``November 30, 2018''.

SEC. 3. COMMUNITY ACCOUNTABILITY FOR REPETITIVELY FLOODED AREAS.

    (a) In General.--Section 1361 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4102) is amended by adding at the end the following 
new subsection:
    ``(e) Community Accountability for Repetitively Damaged Areas.--
            ``(1) In general.--The Administrator shall, by regulation, 
        require any covered community (as such term is defined in 
        paragraph (5))--
                    ``(A) to identify the areas within the community 
                where properties described in paragraph (5)(B) or 
                flood-damaged facilities are located to determine areas 
                repeatedly damaged by floods and to assess, with 
                assistance from the Administrator, the continuing risks 
                to such areas;
                    ``(B) to develop a community-specific plan for 
                mitigating continuing flood risks to such repetitively 
                flooded areas and to submit such plan and plan updates 
                to the Administrator at appropriate intervals;
                    ``(C) to implement such plans; and
                    ``(D) to make such plan, plan updates, and reports 
                on progress in reducing flood risk available to the 
                public, subject to section 552a of title 5, United 
                States Code.
            ``(2) Incorporation into existing plans.--Plans developed 
        pursuant to paragraph (1) may be incorporated into mitigation 
        plans developed under section 1366 of this Act (42 U.S.C. 
        4104c) and hazard mitigation plans developed under section 322 
        of the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5165).
            ``(3) Assistance to communities.--
                    ``(A) Data.--To assist communities in preparation 
                of plans required under paragraph (1), the 
                Administrator shall, upon request, provide covered 
                communities with appropriate data regarding the 
                property addresses and dates of claims associated with 
                insured properties within the community.
                    ``(B) Mitigation grants.--In making determinations 
                regarding financial assistance under the authorities of 
                this Act, the Administrator may consider the extent to 
                which a community has complied with this subsection and 
                is working to remedy problems with addressing 
                repeatedly flooded areas.
            ``(4) Sanctions.--
                    ``(A) In general.--The Administrator shall, by 
                regulations issued in accordance with the procedures 
                established under section 553 of title 5, United States 
                Code, regarding substantive rules, provide appropriate 
                sanctions for covered communities that fail to comply 
                with the requirements under this subsection or to make 
                sufficient progress in reducing the flood risks to 
                areas in the community that are repeatedly damaged by 
                floods.
                    ``(B) Notice.--Before imposing any sanction 
                pursuant to this paragraph, the Administrator shall 
                provide the covered community involved with notice of 
                the non-compliance that could result in the imposition 
                of sanctions, which shall include recommendations for 
                actions to bring the covered community into compliance.
                    ``(C) Considerations.--In determining appropriate 
                sanctions to impose under this paragraph, the 
                Administrator shall consider the resources available to 
                the covered community involved, including Federal 
                funding, the portion of the covered community that lies 
                within an area having special flood hazards, and other 
                factors that make it difficult for the covered 
                community to conduct mitigation activities for existing 
                flood-prone structures.
            ``(5) Covered community.--For purposes of this subsection, 
        the term `covered community' means a community--
                    ``(A) that is participating, pursuant to section 
                1315, in the national flood insurance program; and
                    ``(B) within which are located--
                            ``(i) 50 or more repetitive loss structures 
                        for each of which, during any 10-year period, 
                        two or more claims for payments under flood 
                        insurance coverage have been made with a 
                        cumulative amount exceeding $1,000;
                            ``(ii) 5 or more severe repetitive loss 
                        structures (as such term is defined in section 
                        1366(h)) for which mitigation activities 
                        meeting the standards for approval under 
                        section 1366(c)(2)(A) have not been conducted; 
                        or
                            ``(iii) a public facility or a private 
                        nonprofit facility (as such terms are as 
                        defined in section 102 of the Robert T. 
                        Stafford Disaster Relief and Emergency 
                        Assistance Act (42 U.S.C. 5122)), that has 
                        received assistance for repair, restoration, 
                        reconstruction, or replacement under section 
                        406 of the Robert T. Stafford Disaster Relief 
                        and Emergency Assistance Act (42 U.S.C. 5172) 
                        in connection with more than one flooding event 
                        in the most recent 10-year period.
            ``(6) Repetitive-loss structure.--For purposes of this 
        subsection, the term `repetitive loss structure' has the 
        meaning given such term in section 1370 (42 U.S.C. 4121).
            ``(7) Reports to congress.--Not later than the expiration 
        of the 6-year period beginning upon the date of the enactment 
        of this subsection, and not less than every 2 years thereafter, 
        the Administrator shall submit a report to the Congress 
        regarding the progress in implementing plans developed pursuant 
        to paragraph (1)(B).''.
    (b) Regulations.--The Administrator of the Federal Emergency 
Management Agency shall issue regulations necessary to carry out 
subsection (e) of section 1361 of the National Flood Insurance Act of 
1968, as added by the amendment made by subsection (a) of this section, 
not later than the expiration of the 12-month period that begins on the 
date of the enactment of this Act.

SEC. 4. INCREASED COST OF COMPLIANCE.

    (a) In General.--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 (4) as 
        subparagraphs (A) through (D), respectively, and adjusting the 
        margins accordingly;
            (3) in the matter preceding subparagraph (A), as so 
        redesignated, by striking ``The national'' and inserting the 
        following:
            ``(1) In general.--The national'';
            (4) in paragraph (1), as so designated--
                    (A) in subparagraph (A), as so redesignated, by 
                inserting ``, without regard to whether the property is 
                in an area having special flood hazards'' after ``loss 
                structures'';
                    (B) in subparagraph (C), as so redesignated, by 
                striking the period at the end and inserting a 
                semicolon;
                    (C) in subparagraph (D), as so redesignated--
                            (i) in the matter preceding clause (i), as 
                        so redesignated, by inserting ``subject to 
                        paragraph (2),'' before ``properties for 
                        which''; and
                            (ii) in clause (iv), as so redesignated, by 
                        striking the period at the end and inserting 
                        ``; and''; and
                    (D) by adding at the end the following:
                    ``(E) a property outside an area having special 
                flood hazards if the community, under section 1361, has 
                established land use and control measures for the area 
                in which the property is located.''; and
            (5) by striking the flush text following paragraph (1)(E), 
        as added by paragraph (4)(D) of this subsection, and inserting 
        the following:
            ``(2) Use of funds for mitigation projects.--The 
        Administrator shall allow a policyholder to use insurance 
        purchased under this subsection for any eligible project costs 
        under a program described in clause (i), (ii), or (iii) of 
        paragraph (1)(D) of an acquisition, demolition, elevation, 
        relocation, or small structural project funded under that 
        program, including--
                    ``(A) asbestos remediation;
                    ``(B) the demolition of a driveway or sidewalk when 
                a structure is acquired; and
                    ``(C) the addition of a lift, ramp, or other device 
                that is necessary for a homeowner or occupant with a 
                physical limitation or disability to safely access a 
                home that has been elevated.
            ``(3) Surcharges.--
                    ``(A) Primary coverage.--The Administrator shall 
                impose a surcharge on each insured of an amount per 
                policy that the Administrator determines is appropriate 
                in order to provide cost of compliance coverage in 
                accordance with paragraph (4)(A).
                    ``(B) Enhanced coverage.--For each policy for flood 
                insurance made available under this title with respect 
                to which enhanced coverage is provided under paragraph 
                (4)(B), the Administrator shall impose a surcharge, in 
                addition to the surcharge imposed under subparagraph 
                (A), in an amount that the Administrator determines 
                appropriate.
            ``(4) Amount of coverage.--
                    ``(A) Primary 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.
                    ``(B) Enhanced coverage.--Notwithstanding the 
                limitation under subparagraph (A), the Administrator 
                shall provide, upon request by a policyholder, enhanced 
                coverage under this subsection having an aggregate 
                liability for any single property in an amount that is 
                not more than $100,000.
            ``(5) Treatment of coverage limits.--The purchase of 
        insurance under this subsection with respect to a property 
        shall not be counted for the purposes of any limitation on 
        coverage with respect to that property under section 
        1306(b).''.
    (b) Technical and Conforming Amendment.--Not later than 1 year 
after the date of enactment of this Act, the Administrator of the 
Federal Emergency Management Agency shall amend the Standard Flood 
Insurance Policy set forth in appendix A to part 61 of title 44, Code 
of Federal Regulations, to conform the item relating to ``Coverage D--
Increased Cost of Compliance'' to the coverage limitations described in 
subparagraphs (A) and (B) of section 1304(b)(4) of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4011(b)(4)), as added by subsection 
(a)(5) of this section.

SEC. 5. MONTHLY INSTALLMENT PAYMENT OF PREMIUMS.

    (a) Authority.--Subsection (g) of section 1308 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended--
            (1) by striking the subsection designation and all that 
        follows through ``With respect'' and inserting the following:
    ``(g) Frequency of Premium Collection.--
            ``(1) Options.--With respect''; and
            (2) by adding at the end the following:
            ``(2) Monthly installment payment of premiums.--
                    ``(A) Exemption from rulemaking.--Until such time 
                as the Administrator promulgates regulations 
                implementing paragraph (1) of this subsection, the 
                Administrator may adopt policies and procedures, 
                notwithstanding any other provisions of law and in 
                alignment and consistent with existing industry escrow 
                and servicing standards, necessary to implement such 
                paragraph without undergoing notice and comment 
                rulemaking and without conducting regulatory analyses 
                otherwise required by statute, regulation, or Executive 
                order.
                    ``(B) Pilot program.--The Administrator may 
                initially implement paragraph (1) of this subsection as 
                a pilot program that provides for a gradual phase-in of 
                implementation.
                    ``(C) Policyholder protection.--The Administrator 
                may--
                            ``(i) during the 12-month period beginning 
                        on the date of the enactment of this 
                        subparagraph, charge policyholders choosing to 
                        pay premiums in monthly installments a fee for 
                        the total cost of the monthly collection of 
                        premiums not to exceed $25 annually; and
                            ``(ii) after the expiration of the 12-month 
                        period referred to in clause (i), adjust the 
                        fee charged annually to cover the total cost of 
                        the monthly collection of premiums as 
                        determined by the report submitted pursuant to 
                        subparagraph (D).
                    ``(D) Report.--Not later than six months after the 
                date of the enactment of this paragraph, the 
                Comptroller General 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, that sets forth all of 
                the costs associated with the monthly payment of 
                premiums, including any up-front costs associated with 
                infrastructure development, the impact on all 
                policyholders including those that exercise the option 
                to pay monthly and those that do not, options for 
                minimizing the costs, particularly the costs to 
                policyholders, and the feasibility of adopting 
                practices that serve to minimize costs to policyholders 
                such as automatic payments and electronic payments.
                    ``(E) Annual reports.--On an annual basis, the 
                Administrator shall report to the Committee on 
                Financial Services of the House of Representatives and 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate the ongoing costs associated with the 
                monthly payment of premiums.''.
    (b) Implementation.--Clause (ii) of section 1307(a)(1)(B) of the 
National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(B)(ii)) is 
amended by inserting before ``any administrative expenses'' the 
following: ``the costs associated with the monthly collection of 
premiums provided for in section 1308(g) (42 U.S.C. 4015(g)), but only 
if such costs exceed the operating costs and allowances set forth in 
clause (i) of this subparagraph, and''.

SEC. 6. 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. 7. PROVISION OF COMMUNITY RATING SYSTEM PREMIUM CREDITS TO MAXIMUM 
              NUMBER OF COMMUNITIES PRACTICABLE.

    Subsection (b) of section 1315 of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4022(b)) is amended--
            (1) in paragraph (2), by striking ``may'' and inserting 
        ``shall''; and
            (2) in paragraph (3), by inserting ``, and the 
        Administrator shall provide credits to the maximum number of 
        communities practicable'' after ``under this program''.

SEC. 8. PARTICIPATION STUDIES.

    (a) Federal Entities for Lending Regulation.--
            (1) In general.--The Federal entities for lending 
        regulation shall conduct an annual study regarding the rate at 
        which persons who are subject to the mandatory purchase 
        requirement are complying with that requirement.
            (2) Submission to congress.--The Federal entities for 
        lending regulation shall submit the result of each study 
        conducted under paragraph (1) to the appropriate committees of 
        Congress.
    (b) FEMA.--
            (1) In general.--The Administrator of the Federal Emergency 
        Management Agency shall conduct an annual study regarding the 
        rate at which individuals who live in areas that have not been 
        identified, under the National Flood Insurance Act of 1968 (42 
        U.S.C. 4001 et seq.) or the Flood Disaster Protection Act of 
        1973 (42 U.S.C. 4002 et seq.), as having a special flood hazard 
        participate in, or receive financial assistance under, the 
        National Flood Insurance Program.
            (2) Submission to congress.--The Administrator shall submit 
        the result of each study conducted under paragraph (1) to the 
        appropriate committees of Congress.
    (c) GAO.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct a study of the implementation and efficacy 
        of the requirements of section 102 of the Flood Disaster 
        Protection Act of 1973 (42 U.S.C. 4012a). Such study shall at 
        minimum consider the following questions:
                    (A) How effectively do Federal agencies, regulated 
                lending institutions, and Federal entities for lending 
                regulation implement the requirements of section 102 of 
                the Flood Disaster Protection Act of 1973?
                    (B) Does the current implementation of Flood 
                Disaster Protection Act of 1973 align with the 
                congressional findings and purposes described in 
                section 2(b) of such Act (42 U.S.C. 4002)?
                    (C) What is the current level of compliance with 
                section 102?
                    (D) What are the estimated historical impacts on 
                revenue to the National Flood Insurance Program based 
                on the current level of compliance of section 102?
                    (E) Is the current monitoring and tracking 
                framework in place sufficient to ensure compliance with 
                section 102?
                    (F) What is the best way to establish a 
                consolidated, comprehensive, and accurate repository of 
                data on compliance with section 102?
                    (G) What, if any, unintended consequences have 
                resulted from the requirements and implementation of 
                section 102?
                    (H) How can Federal agencies and regulated lending 
                institutions improve compliance with section 102?
            (2) Report.--Not later than the expiration of the 18-month 
        period beginning on the date of the enactment of this Act, the 
        Comptroller General 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 subsection.

SEC. 9. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER OF PROPERTY.

    (a) In General.--Chapter 1 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.) is amended by adding at the end the 
following new section:

``SEC. 1326. DISCLOSURE OF FLOOD RISK INFORMATION UPON TRANSFER OF 
              PROPERTY.

    ``(a) Requirement for Participation in Program.--After September 
30, 2022, no new flood insurance coverage may be provided under this 
title for any real property located in any area (or subdivision 
thereof) unless an appropriate body has imposed, by statute or 
regulation, a duty on any seller or lessor of improved real estate 
located in such area to provide to any purchaser or lessee of such 
property a property flood hazard disclosure which the Administrator has 
determined meets the requirements of subsection (b).
    ``(b) Disclosure Requirements.--A property flood hazard disclosure 
for a property shall meet the requirements of this subsection only if 
the disclosure--
            ``(1) is made in writing;
            ``(2) discloses any actual knowledge of the seller or 
        lessor of--
                    ``(A) prior physical damage caused by flood to any 
                building located on the property;
                    ``(B) prior insurance claims for losses covered 
                under the National Flood Insurance Program or private 
                flood insurance with respect to such property;
                    ``(C) any previous notification regarding the 
                designation of the property as a multiple loss 
                property; and
                    ``(D) any Federal legal obligation to obtain and 
                maintain flood insurance running with the property, 
                such as any obligation due to a previous form of 
                disaster assistance under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act received 
                by any owner of the property; and
            ``(3) is delivered by or on behalf of the seller or lessor 
        to the purchaser or lessee before such purchaser or lessee 
        becomes obligated under any contract for purchase or lease of 
        the property.''.
    (b) Availability of Flood Insurance Coverage.--Subsection (c) of 
section 1305 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;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(3) given satisfactory assurance that by September 30, 
        2022, property flood hazard disclosure requirements will have 
        been adopted for the area that meet the requirements of section 
        1326.''.

SEC. 10. GAO STUDY REGARDING BUYOUT PRACTICES.

    (a) Definitions.--In this section--
            (1) the term ``Administrator'' means the Administrator of 
        the Federal Emergency Management Agency;
            (2) the term ``appropriate committees of Congress'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate;
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (C) the Committee on Financial Services of the 
                House of Representatives; and
                    (D) the Committee on Transportation and 
                Infrastructure of the House of Representatives;
            (3) the terms ``buyout practice'' and ``buyout program'' 
        mean a practice or program, as applicable, under which the 
        Administrator provides assistance to State and local 
        governments so that those entities may acquire flood-damaged 
        properties committed to open space use in perpetuity in 
        accordance with section 404(b)(2) of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 
        5170c(b)(2));
            (4) the term ``eligible property owner'' means a 
        policyholder under the National Flood Insurance Program with a 
        household income that is not more than 120 percent of the mean 
        household income for the community in which the primary 
        residence of the policyholder is located;
            (5) 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.);
            (6) the term ``repetitive loss structure'' has the meaning 
        given the term in section 1370(a) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4121(a)); and
            (7) the term ``severe repetitive loss structure'' has the 
        meaning given the term in section 1366(h) of the National Flood 
        Insurance Act of 1968 (42 U.S.C. 4104c(h)).
    (b) Study Required.--The Comptroller General of the United States 
shall conduct a study to assess--
            (1) the efficacy of buyout practices, as in effect on the 
        date on which the study is conducted; and
            (2) ways to streamline the buyout practices described in 
        paragraph (1) in order to provide more timely assistance to a 
        larger number of State and local governments.
    (c) Considerations and Analysis.--The study conducted under 
subsection (b) shall consider and analyze the following:
            (1) To the extent possible, current (as of the date on 
        which the study is conducted) and future trends with respect to 
        repetitive loss structures and severe repetitive loss 
        structures that are insured under the National Flood Insurance 
        Program, including, with respect to both inland and coastal 
        areas--
                    (A) changes in flood risk, flood frequency, and 
                flood magnitude since the inception of the National 
                Flood Insurance Program; and
                    (B) projections for changes in flood risk, flood 
                frequency, and flood magnitude by 2025, 2050, and 2075.
            (2) To the extent possible, buyout practices (as of the 
        date on which the study is conducted), including--
                    (A) the availability of funding sources for buyout 
                programs through various grant programs;
                    (B) the total number of properties acquired though 
                buyout programs;
                    (C) the average length of time for a State or local 
                government to acquire a flood-damaged property under a 
                buyout program, with that period beginning on the date 
                on which the State or local government, as applicable, 
                begins participating in the buyout program;
                    (D) an estimate of the number of flood-damaged 
                properties that could be acquired from willing property 
                owners under buyout programs with the full cooperation 
                of State and local governments;
                    (E) the socioeconomic status of recipients of 
                buyouts under buyout programs; and
                    (F) examples of successful buyout programs, 
                including best practices employed.
            (3) Administrative, financial, or temporal constraints that 
        may impede the timely acquisition of properties under a buyout 
        program, including--
                    (A) a lack of communication or cooperation between 
                the Administrator and the State and local governments 
                that purchase properties under a buyout program;
                    (B) pressures to redevelop a property after 
                acquiring a property through a buyout program; and
                    (C) a lack of adequate funding.
            (4) Potential options, methods, and strategies to address 
        the constraints identified under paragraph (3), including 
        evaluating the feasibility of--
                    (A) a pilot program under which--
                            (i) an eligible property owner may agree, 
                        before a flood event occurs, to have the 
                        primary single-family residence of the eligible 
                        property owner purchased after the residence 
                        has been substantially damaged by a flood;
                            (ii) the Administrator may provide--
                                    (I) financial assistance to State 
                                and local governments that are willing 
                                to participate in the program to 
                                purchase and acquire the properties of 
                                owners that have incurred substantial 
                                damage from a flood event; and
                                    (II) a premium credit as an 
                                incentive to eligible property owners 
                                to agree to participate in the program;
                            (iii) properties that are acquired--
                                    (I) shall be maintained as open 
                                space in accordance with section 
                                404(b)(2) of the Robert T. Stafford 
                                Disaster Relief and Emergency 
                                Assistance Act (42 U.S.C. 5170c(b)(2)); 
                                and
                                    (II) may be used for non-structural 
                                mitigation, conservation, and 
                                recreational purposes; and
                            (iv) not fewer than 5 and not more than 10 
                        State and local governments shall participate; 
                        and
                    (B) the role that nonprofit organizations could 
                play in making buyouts more readily available or more 
                efficient, similar to the role that those organizations 
                play in the acquisition of properties for conservation 
                purposes.
            (5) The ecological, financial, and flood risk reduction 
        benefits that buyout practices, as in effect on the date on 
        which the study is conducted, provide, which shall--
                    (A) take into account the differences between 
                inland and coastal areas; and
                    (B) include--
                            (i) examples in which ecosystem restoration 
                        and other nature-based approaches have enhanced 
                        the reduction of flood risk; and
                            (ii) recommendations for best practices.
            (6) To the extent possible, an assessment of how the 
        Administrator may use buyout programs to reduce future flood 
        disaster recovery costs that are attributable to future 
        projections of flood risk as a result of sea level rise, 
        population changes, subsidence, and other factors.
            (7) A cost-benefit analysis of mitigation and buy-out 
        projects and programs, including an assessment of opportunities 
        and challenges for leveraging different Federal resources and 
        funding to maximize the value of Federal investment in disaster 
        mitigation.
    (d) Report.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall submit to the appropriate committees of Congress 
        and the Administrator a report that sets forth the analysis, 
        conclusions, and recommendations resulting from the study 
        conducted under subsection (b).
            (2) Contents.--The report submitted under paragraph (1) 
        shall detail the feasibility of the Administrator establishing, 
        and the processes required for the Administrator to establish, 
        an alternative buyout program, such as the pilot program 
        described in subsection (c)(4)(A).
                                 <all>