Title: Resilient Communities Act of 2019
Policy area: Emergency Management

Summary:
Resilient Communities Act of 2019
This bill permits the Federal Emergency Management Agency (FEMA) to provide capitalization grants to states to establish revolving funds to mitigate disaster risks for homeowners, businesses, nonprofit organizations, and communities from multiple hazards.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3531 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 3531

     To amend the Robert T. Stafford Disaster Relief and Emergency 
  Assistance Act to allow the Administrator of the Federal Emergency 
    Management Agency to provide capitalization grants to States to 
 establish revolving funds to provide assistance to reduce the harmful 
  impacts to people and property from multiple hazards, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 27, 2019

    Mr. Graves of Missouri introduced the following bill; which was 
     referred to the Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
     To amend the Robert T. Stafford Disaster Relief and Emergency 
  Assistance Act to allow the Administrator of the Federal Emergency 
    Management Agency to provide capitalization grants to States to 
 establish revolving funds to provide assistance to reduce the harmful 
  impacts to people and property from multiple hazards, 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 ``Resilient Communities Act of 2019''.

SEC. 2. REVOLVING LOAN FUNDS TO MITIGATE FOR MULTIPLE HAZARDS.

    Title II of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5131 et seq.) is amended by adding at the end 
the following:

``SEC. 205. REVOLVING LOAN FUND.

    ``(a) Definitions.--In this section--
            ``(1) the term `eligible entity' means a State or Indian 
        Tribal Government as those terms are defined in section 102 of 
        this Act;
            ``(2) the term `participating entity' means an eligible 
        entity that--
                    ``(A) has entered into an agreement under 
                subsection (b)(1); and
                    ``(B) agrees to comply with the requirements of 
                this section;
            ``(3) the term `mitigation loan fund' means a multihazard 
        mitigation assistance revolving loan fund established by an 
        eligible entity under this section; and
            ``(4) the term `eligible recipient' means a local 
        governmental entity, a State agency or subdivision thereof.
    ``(b) General Authority.--
            ``(1) In general.--The Administrator may enter into an 
        agreement with an eligible entity to provide a capitalization 
        grant for the eligible entity to establish a revolving loan 
        fund that will provide funding assistance to an eligible 
        recipient to reduce disaster risks for homeowners, businesses, 
        nonprofit organizations, and communities in order to decrease--
                    ``(A) the loss of life and property;
                    ``(B) the cost of 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 mitigation 
                        loan fund of the eligible entity; and
                            ``(ii) enter into 1 or more agreements to 
                        distribute the grant funds for purposes 
                        authorized under subsection (d).
                    ``(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).
                    ``(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 mitigation loan funds 
                        established by the participating entities; and
                            ``(ii) except as provided in paragraph (5), 
                        in accordance with the requirements described 
                        in subparagraph (B).
                    ``(B) Requirements.--The requirements described in 
                this subparagraph are as follows:
                            ``(i) Eligible entities must apply to the 
                        Administrator for an allocation of financial 
                        assistance to capitalize the loans and commit 
                        to a 10 percent match of the requested funds.
                            ``(ii) Seventy-five percent of the project 
                        selection must be composed of local government 
                        hazard mitigation projects and eligible 
                        entities must give at least 3 weeks notice to 
                        their local governments before requiring all 
                        hazard mitigation projects to be submitted.
                            ``(iii) Eligible entities may not provide 
                        more than $5,000,000 in loan funds toward the 
                        completion of any single hazard mitigation 
                        project.
                            ``(iv) A participating entity must agree to 
                        the revolving loan repayment terms issued by 
                        the Administrator upon being selected to 
                        participate.
                            ``(v) No more than 10 percent of the loan 
                        funds provided to a participating entity may be 
                        used for the purposes of planning.
                    ``(C) Prioritization.--The Administrator shall 
                prioritize loan funds to participating entities with 
                intended use plans that include projects that--
                            ``(i) include the restoration and 
                        augmentation of natural and built 
                        infrastructure;
                            ``(ii) involve more than 1 eligible entity 
                        or recipient partnering together;
                            ``(iii) take into account regional impacts 
                        of hazards such as--
                                    ``(I) river basins;
                                    ``(II) river corridors;
                                    ``(III) micro and macro watersheds; 
                                and
                                    ``(IV) estuaries, bays, and coastal 
                                regions; and
                            ``(iv) involve the resilience of major 
                        economic sectors and critical national 
                        infrastructure such as ports, power and water 
                        production and distribution centers, bridges, 
                        and waterways essential to interstate commerce.
            ``(4) Further revolving fund requirements.--A participating 
        entity that exercises the authority under paragraph (3)(A) in a 
        fiscal year shall provide matching funds from non-Federal 
        sources in an amount that is equal to 10 percent of the amount 
        that the participating entity receives under paragraph (3)(A) 
        in that fiscal year for purposes described in the respective 
        intended use plan.
            ``(5) 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 FEMA in 
                carrying out this section; and
                    ``(B) for FEMA to provide technical assistance to 
                recipients of loans under this section.
            ``(6) Partnerships.--Eligible recipients may partner with 
        nongovernmental organizations to ensure projects reduce 
        disaster risks for homeowners, businesses, nonprofit 
        organizations, and communities.
    ``(c) Environmental Review of Revolving Loan Fund Projects.--
Notwithstanding any other Federal law, Federal environmental review of 
the mitigation loan fund projects shall be delegated to the 
participating entities but only for the purposes of carrying out the 
mitigation revolving loan fund program as authorized under this 
section. Such participating entities shall establish a Federal 
equivalency environmental review involving consideration of 
alternatives, analysis of potential effects, opportunity for public 
notice and comments, and compliance with Federal environmental laws and 
Executive orders.
    ``(d) Use of Funds.--
            ``(1) In general.--Amounts deposited in a mitigation 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 paragraphs (2) and (3) and 
                subsection (h), to provide financial assistance for any 
                eligible recipient;
                    ``(B) as a source of revenue and security for 
                leveraged loans, the proceeds of which shall be 
                deposited in the mitigation 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 (g), if the 
                proceeds from the sale of the bonds are deposited in 
                the mitigation loan fund.
            ``(2) Purposes.--An eligible recipient of financial 
        assistance provided through amounts from a mitigation loan 
        fund--
                    ``(A) 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 a cost-benefit 
                analysis before the date on which the applicant 
                receives the assistance;
                    ``(B) shall use the amounts for projects that are 
                located in communities that have developed a local 
                hazard mitigation plan that has been approved by the 
                Administrator;
                    ``(C) may use the amounts to--
                            ``(i) establish and carry out enforcement 
                        activities and implement consensus-based codes, 
                        specifications, and standards;
                            ``(ii) study special zoning overlay 
                        districts that better interface waterfront 
                        development with natural assets through the use 
                        of buffer zones and shoreline set-backs, 
                        protect freshwater resources for drinking and 
                        manufacturing, and flood prevention through 
                        installation and restoration of natural 
                        infrastructure such as connected floodplain, 
                        wetlands, marshes, setback areas, and 
                        riverfront parks;
                            ``(iii) study agriculture risk compensation 
                        districts where there is a desire to remove or 
                        set-back levees protecting highly developed 
                        agricultural land to mitigate for flooding, 
                        allowing agricultural producers to receive 
                        compensation for assuming greater flood risk 
                        that would alleviate flood exposure to 
                        population centers and areas with critical 
                        national infrastructure;
                            ``(iv) study land use incentives that 
                        reward developers for greater reliance on LID 
                        stormwater best management practices, exchange 
                        density increases for increased open space and 
                        improvement of neighborhood catch basins to 
                        mitigate urban flooding, reward developers for 
                        including and augmenting natural infrastructure 
                        adjacent to and around building projects 
                        without reliance on increased sprawl;
                            ``(v) study an erosion response plan that 
                        accommodates river, lake, and ocean shoreline 
                        retreating or bluff stabilization due to 
                        increased flooding and disaster impacts.
            ``(3) Allowance.--The Administrator shall promulgate an 
        allowance within this section to allow participating entities 
        to use revolving loan funds toward resilience to hazards. 
        Participating entities may direct a portion of revolving loan 
        funds toward resilience activities that mitigate for the 
        impacts of the following:
                    ``(A) Flooding.--Funds may be applied to--
                            ``(i) structural elevation;
                            ``(ii) flood proofing;
                            ``(iii) the relocation or removal of 
                        buildings;
                            ``(iv) environmental restoration activities 
                        that directly reduce flood risk;
                            ``(v) construction, repair or replacement 
                        of non-Federal levees;
                            ``(vi) nonprofits, businesses, and other 
                        nongovernmental entities for projects that will 
                        reduce flood risk; and
                            ``(vii) other activities determined 
                        appropriate by the Administrator.
                    ``(B) Drought and prolonged episodes of intense 
                heat.--Funds may be applied to--
                            ``(i) planning and protocols for healthcare 
                        facility response and plans that add heat-
                        related illness treatment capacities;
                            ``(ii) planning and protocols for the 
                        deployment of cooling centers for vulnerable 
                        populations;
                            ``(iii) heat island and heat sink effect 
                        reduction activities such as--
                                    ``(I) increasing urban canopies; 
                                and
                                    ``(II) replacing natural assets 
                                more suited to drought and warmer 
                                climates;
                            ``(iv) replacing infrastructure vulnerable 
                        to the rapid deteriorating effects of intense 
                        heat with better alternatives including natural 
                        solutions;
                            ``(v) restoration of natural infrastructure 
                        such as forests to absorb heat effects;
                            ``(vi) restoration and installment of 
                        wetlands and marshes to retain moisture during 
                        drought and intensely hot periods;
                            ``(vii) increased urban green space that 
                        works to reduce heat island effects;
                            ``(viii) water conservation plans and 
                        protocols designed for severe drought; and
                            ``(ix) small business assistance program 
                        assembly and planning for businesses likely to 
                        be most impacted by drought.
                    ``(C) Severe storms.--Funds may be applied to 
                mitigation and resilience for the following:
                            ``(i) Straight-line winds and tornadic 
                        activity.--Funds may be used for infrastructure 
                        resilience activities that mitigate against 
                        significant wind storms especially where there 
                        is high vulnerability to utility systems that 
                        may incur prolonged service interruption due to 
                        canopy overgrowth and exposed transmission 
                        links, including restoration of forests, tree 
                        lines, and natural buffer zones designed to 
                        channel, shield, and reduce wind damage to 
                        critical infrastructure.
                            ``(ii) Tropical cyclones.--Funds may be 
                        used for infrastructure resilience activities 
                        that mitigate against impacts associated with 
                        tropical cyclones.
                            ``(iii) Ice, snow, extreme cold.--Funds may 
                        be used for infrastructure resilience 
                        activities that mitigate against impacts 
                        associated with winter storms, including--
                                    ``(I) physical improvement and 
                                signage of evacuation routes;
                                    ``(II) establishment or improvement 
                                of shelters or warming centers; and
                                    ``(III) insulating, relocating, or 
                                rerouting critical infrastructure that 
                                mitigates for exposure of utility and 
                                public transportation assets to snow, 
                                ice, and extreme cold.
                    ``(D) Wildfires.--Funds may be applied to--
                            ``(i) planning and protocols that reduce 
                        the risk of wildfires, improve evacuation 
                        routes, and better inform the public on 
                        prevention of and response to wildfires;
                            ``(ii) installation of built and natural 
                        infrastructure that reduces the risk of 
                        wildfires, including--
                                    ``(I) deployment of vegetation and 
                                ecosystems that retain moisture during 
                                long hot periods native to the region 
                                such as marshes and wetlands, if 
                                appropriate;
                                    ``(II) replacement of vegetation 
                                native to the region more suited to 
                                increased hot and dry periods;
                                    ``(III) physical improvement and 
                                signage of evacuation routes;
                                    ``(IV) establishment or improvement 
                                of evacuation centers;
                                    ``(V) training of first responders 
                                and public safety personnel on how to 
                                prevent, mitigate, and respond to 
                                wildfires;
                                    ``(VI) acquisition of equipment and 
                                supplies suited to mitigating and 
                                responding to wildfires, including 
                                acquisition of technology-based 
                                solutions;
                                    ``(VII) activities that increase 
                                the capacity of healthcare facilities 
                                to treat wildfire-related injuries; and
                                    ``(VIII) activities that address 
                                wildfire primary impacts such as from 
                                burn and secondary impacts to property 
                                and infrastructure.
                    ``(E) Other catastrophic events.--
                            ``(i) In general.--Eligible entities may 
                        apply revolving loan funds toward resilience 
                        and mitigation against a catastrophic event the 
                        Administrator determines is either repetitive 
                        or is highly likely to occur and endanger lives 
                        and property unless overt action is taken.
                            ``(ii) Catastrophic events.--Catastrophic 
                        events include--
                                    ``(I) chemical spills into public 
                                water supply reservoirs such as rivers, 
                                lakes, or groundwater aquifers where 
                                results could be life-threatening;
                                    ``(II) large-scale algae blooms in 
                                a public surface water supply reservoir 
                                such as a river or lake;
                                    ``(III) rupture of a hazardous 
                                materials pipeline that transects 
                                above, below, or through a public water 
                                supply reservoir such as a river, lake, 
                                or groundwater aquifers; and
                                    ``(IV) significant contact between 
                                a land-based waste disposal site 
                                currently housing a hazardous material 
                                such as coal ash, mining material, or 
                                manufacturing slag that may make a 
                                water body toxic.
                            ``(iii) Resilience activities.--Resilience 
                        activities that are allowed under this section 
                        may include--
                                    ``(I) strengthening or realignment 
                                of surface transportation 
                                infrastructure, including ports;
                                    ``(II) installation of emergency 
                                shut-off valves within hazardous 
                                material pipeline sections traversing 
                                near or through public water supplies;
                                    ``(III) removal or relocating of 
                                land-based waste disposal sites 
                                currently housing a hazardous material 
                                as long as the new site is not located 
                                within a floodplain or in or near 
                                geologic hazards such as earthquake 
                                faults or areas prone to tsunami 
                                liquification or landslides; and
                                    ``(IV) resilience to earthquakes.
            ``(4) Savings.--None of the mitigation revolving loan funds 
        may be used for the benefit of projects, activities or to 
        otherwise mitigate risk on Federal land or property.
    ``(e) 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 mitigation loan fund of 
        the participating entity.
            ``(2) Consultation during preparation.--Each participating 
        entity, in preparing an intended use plan, shall ensure that 
        the respective agency of the participating entity with primary 
        responsibility for emergency management--
                    ``(A) provides oversight with respect to the 
                preparation of the intended use plan; and
                    ``(B) consults with any other appropriate agency of 
                the participating entity, including agencies 
                responsible for coastal, environmental management, and 
                economic development.
            ``(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 hazards included 
                                in subsection (d)(3);
                                    ``(II) reducing the number of 
                                severe repetitive loss properties and 
                                repetitive loss structures in the 
                                participating entity's jurisdiction;
                                    ``(III) decreasing the number of 
                                insurance claims; and
                                    ``(IV) increasing the rating under 
                                the Community Rating System for 
                                communities in the geographical 
                                jurisdiction of the participating 
                                entity;
                            ``(ii) information with respect to the 
                        availability of, and the application process 
                        for receiving, financial assistance from the 
                        mitigation loan fund;
                            ``(iii) the criteria and methods 
                        established for the distribution of amounts 
                        from the mitigation loan fund;
                            ``(iv) the amount of financial assistance 
                        that the participating entity anticipates 
                        allocating to--
                                    ``(I) local government projects; 
                                and
                                    ``(II) projects benefitting 
                                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 mitigation loan fund and the 
                        short-term and long-term goals of the 
                        mitigation loan fund; and
                    ``(B) provide, to the maximum extent practicable, 
                that priority for the use of amounts from the 
                mitigation 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) assist vulnerable populations 
                        including residential facilities with assisted 
                        living, group homes for the elderly, or 
                        emotional or physically disabled.
            ``(4) Publication.--Each participating entity shall publish 
        and periodically update a list of all projects receiving 
        funding from the mitigation loan fund of the participating 
        entity, which shall include--
                    ``(A) the location of each project;
                    ``(B) the type and amount of assistance provided 
                for each project; and
                    ``(C) the expected funding schedule and date of 
                completion of each project.
    ``(f) Fund Management.--Amounts in a mitigation 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;
                    ``(C) interest earned on amounts in the fund; and
                    ``(D) the matching funds required under subsection 
                (g).
    ``(g) Matching Funds.--On or before the date on which a 
participating entity receives a capitalization grant, the entity shall 
deposit into the mitigation loan fund of the entity, in addition to the 
amount of the capitalization grant, an amount from non-Federal sources 
that is not less than 10 percent of the total amount of the 
capitalization grant.
    ``(h) Types of Assistance.--Unless otherwise prohibited by law, a 
participating entity may use the amounts deposited into a mitigation 
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 50 percent of 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, for a low-income homeowner or to 
                assist vulnerable populations including residential 
                facilities with assisted living, group homes for the 
                elderly, or emotionally or physically disabled, the 
                participating entity 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 eligible recipient of the loan 
                demonstrates that there is a dedicated source of 
                revenue or adequate income to repay the loan; and
                    ``(E) payments of principal and interest with 
                respect to the loan will be deposited into the 
                mitigation 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 mitigation loan 
        fund; or
            ``(5) to earn interest on those amounts.
    ``(i) Administration of Fund.--
            ``(1) In general.--A participating entity may combine the 
        financial administration of a mitigation loan fund with the 
        financial administration of any other revolving fund 
        established by the 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 mitigation loan 
                        fund, and interest earned on amounts in a 
                        mitigation 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 agencies of the participating 
                        entity, the authority to establish assistance 
                        priorities and carry out oversight and related 
                        activities, other than financial 
                        administration, with respect to mitigation 
                        assistance remains with the agency of the 
                        participating entity with primary 
                        responsibility for emergency 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 mitigation 
                        loan fund;
                            ``(ii) provide appropriate oversight of 
                        projects authorized under this section; and
                            ``(iii) provide technical assistance 
                        training and outreach to recipients in the 
                        geographical jurisdiction of the participating 
                        entity 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 5 
                        percent of the funds made available to the 
                        entity 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) $100,000;
                                    ``(II) 1.0 percent of the value of 
                                the mitigation loan fund, as of the 
                                date on which the valuation is made; 
                                and
                                    ``(III) an amount equal to 2.0 
                                percent of all grant awards made to a 
                                participating entity for the mitigation 
                                loan fund under this section for the 
                                fiscal year.
            ``(3) Audit and report.--
                    ``(A) Audit requirement.--Not less frequently than 
                every 2 years, each participating entity shall conduct 
                an audit of the mitigation loan fund of the 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 
                        mitigation loan fund of the entity with respect 
                        to--
                                    ``(I) the intended use plans of the 
                                entity; and
                                    ``(II) meeting the objectives 
                                described in subsection (b)(1).
            ``(4) Oversight.--In conducting oversight with respect to 
        mitigation 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 mitigation loan fund to 
                        determine the effectiveness of the fund in 
                        reducing hazard risk; and
                    ``(B) may, at any time--
                            ``(i) make recommendations to a 
                        participating entity with respect to the 
                        administration of the mitigation loan fund of 
                        the entity; or
                            ``(ii) require specific changes with 
                        respect to a mitigation loan fund in order to 
                        improve the effectiveness of the fund.
    ``(j) Regulations.--The Administrator shall issue 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;
            ``(3) ensure compliance with the requirements of this 
        section; and
            ``(4) require any party that receives funds directly or 
        indirectly under this section, including a participating entity 
        and an eligible recipient of amounts from a mitigation loan 
        fund, to use procedures with respect to the management of the 
        funds that conform to generally accepted accounting standards.
    ``(k) Funding.--The President may make contributions from the 
Disaster Relief Fund in order to provide financial assistance under 
this section. Such contribution shall be deemed to be related to 
activities carried out pursuant to a major disaster under this Act.
    ``(l) Duplication of Benefits.--The financial assistance provided 
pursuant to this section to participating entities, and the loans made 
to eligible recipients shall not be determined to be a duplication of 
assistance.''.
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