Title: To repeal the mandatory flood insurance coverage requirement for commercial properties located in flood hazard areas, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill limits the required purchase of flood insurance in certain circumstances to only residential properties (currently, the requirement applies to all types of property).

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3414 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 3414

   To repeal the mandatory flood insurance coverage requirement for 
  commercial properties located in flood hazard areas, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 20, 2021

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

_______________________________________________________________________

                                 A BILL


 
   To repeal the mandatory flood insurance coverage requirement for 
  commercial properties located in flood hazard areas, 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. OPT-OUT OF MANDATORY COVERAGE REQUIREMENT FOR COMMERCIAL 
              PROPERTIES.

    (a) Amendments to Flood Disaster Protection Act of 1973.--The Flood 
Disaster Protection Act of 1973 is amended--
            (1) in section 3(a) (42 U.S.C. 4003(a))--
                    (A) in paragraph (10), by striking ``and'' at the 
                end;
                    (B) in paragraph (11), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(12) `residential improved real estate' means improved 
        real estate that--
                    ``(A) is primarily used for residential purposes, 
                as defined by the Federal entities for lending 
                regulation; and
                    ``(B) secures financing or financial assistance 
                provided through a federally related single family loan 
                program, as defined by the Federal entities for lending 
                regulation.''; and
            (2) in section 102 (42 U.S.C. 4012a)--
                    (A) in subsection (b)--
                            (i) in paragraph (1)(A)--
                                    (I) by inserting ``residential'' 
                                before ``improved real estate''; and
                                    (II) by inserting ``residential'' 
                                before ``building or mobile home'';
                            (ii) in paragraph (2)--
                                    (I) by inserting ``residential'' 
                                before ``improved real estate''; and
                                    (II) by inserting ``residential'' 
                                before ``building or mobile home''; and
                            (iii) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                inserting ``residential'' before 
                                ``improved real estate''; and
                                    (II) in the matter after and below 
                                subparagraph (B), by inserting 
                                ``residential'' before ``building or 
                                mobile home'';
                    (B) in subsection (c)(3), by striking ``, in the 
                case of any residential property, for any structure 
                that is a part of such property'' and inserting ``for 
                any structure that is part of a residential property'';
                    (C) in subsection (e)--
                            (i) in paragraph (1)--
                                    (I) by inserting ``residential'' 
                                before ``improved real estate''; and
                                    (II) by inserting ``residential'' 
                                before ``building or mobile home'' each 
                                place such term appears; and
                            (ii) in paragraph (5)--
                                    (I) in subparagraph (A)--
                                            (aa) by inserting 
                                        ``residential'' before 
                                        ``improved real estate'' each 
                                        place such term appears; and
                                            (bb) by inserting 
                                        ``residential'' before 
                                        ``building or mobile home'' 
                                        each place such term appears;
                                    (II) in subparagraph (B), by 
                                inserting ``residential'' before 
                                ``building or mobile home'' each place 
                                such term appears; and
                                    (III) in subparagraph (C), by 
                                inserting ``residential'' before 
                                ``building or mobile home''; and
                    (D) in subsection (h)--
                            (i) by inserting ``residential'' before 
                        ``improved real estate'' each place such term 
                        appears; and
                            (ii) in the matter preceding paragraph (1), 
                        by inserting ``residential'' before ``building 
                        or mobile home''.
    (b) Amendments to National Flood Insurance Act of 1968.--The 
National Flood Insurance Act of 1968 is amended--
            (1) in section 1364(a) (42 U.S.C. 4104a(a))--
                    (A) in paragraph (1), by inserting ``residential'' 
                before ``improved real estate'';
                    (B) in paragraph (2), by inserting ``residential'' 
                before ``improved real estate''; and
                    (C) in paragraph (3)(A), by inserting 
                ``residential'' before ``building'';
            (2) in section 1365 (42 U.S.C. 4104b)--
                    (A) in subsection (a)--
                            (i) by inserting ``residential'' before 
                        ``improved real estate''; and
                            (ii) by inserting ``residential'' before 
                        ``building'';
                    (B) in subsection (b)(2)--
                            (i) by inserting ``residential'' before 
                        ``building'' each place such term appears; and
                            (ii) by inserting ``residential'' before 
                        ``improved real estate'' each place such term 
                        appears;
                    (C) in subsection (d), by inserting ``residential'' 
                before ``improved real estate'' each place such term 
                appears; and
                    (D) in subsection (e)--
                            (i) by inserting ``residential'' before 
                        ``improved real estate''; and
                            (ii) by inserting ``residential'' before 
                        ``building'' each place such term appears; and
            (3) in section 1370 (42 U.S.C. 4121)--
                    (A) in paragraph (8), by inserting ``residential'' 
                before ``improved real estate'';
                    (B) by redesignating paragraphs (14) and (15) as 
                paragraphs (15) and (16), respectively; and
                    (C) by inserting after paragraph (13) the following 
                new paragraph:
            ``(14) the term `residential improved real estate' means 
        improved real estate that--
                    ``(A) is primarily used for residential purposes, 
                as defined by the Federal entities for lending 
                regulation; and
                    ``(B) secures financing or financial assistance 
                provided through a federally related single family loan 
                program, as defined by the Federal entities for lending 
                regulation;''.
    (c) Rule of Construction.--This section and the amendments made by 
this section may not be construed to prohibit the Administrator of the 
Federal Emergency Management Agency from offering flood insurance 
coverage under the National Flood Insurance Program for eligible non-
residential properties, other residential multifamily properties, or 
structures financed with commercial loans, or to prohibit the purchase 
of such coverage for such eligible properties.
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