Flood Risk Transparency for Homebuyers Act

Bill: 117-s-2947
Sponsor: full_name: Sen. Rubio, Marco [R-FL]
Introduced: 2021-10-06
Policy area: Housing and Community Development
Latest action: action_date: 2021-10-06
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2021-10-06
action_desc: Introduced in Senate
text: <p><b>Flood Risk Transparency for Homebuyers Act</b></p> <p>This bill requires the Department of Housing and Urban Development (HUD) to disclose certain flood hazards to prospective buyers when listing a one-to-four-unit residential property for sale. The requirement applies to every such HUD-owned property located in a special flood hazard area and requires HUD to disclose (1) the estimated monthly cost to insure the property under the National Flood Insurance Program in the zip code where the property is located and (2) whether the property is a <i>severe repetitive loss </i> property.</p> <p>A one-to-four-unit residential property is considered a severe repetitive loss property under existing law if the property is covered by flood insurance under the National Flood Insurance Program and has incurred flood-related damage resulting in either (1) four or more separate claim payments each exceeding $5,000, or (2) two or more separate claim payments that cumulatively exceed the value of the property. Severe repetitive loss properties are subject to higher flood insurance rates under the National Flood Insurance Program, but may be eligible for grants to mitigate the flood risk under certain circumstances.</p>

tv_txt: II 117th CONGRESS 1st Session S. 2947 IN THE SENATE OF THE UNITED STATES October 6, 2021 Mr. Rubio introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To require the Secretary of Housing and Urban Development to provide a disclosure notice to homebuyers of properties owned by the Department of Housing and Urban Development that are located in special flood hazard areas, and for other purposes.

1. Short title This Act may be cited as the Flood Risk Transparency for Homebuyers Act . 2. Definitions In this Act: (1) Administrator The term Administrator means the Administrator of the Federal Emergency Management Agency. (2) Covered property The term covered property means a 1-to-4 unit residential property— (A) acquired by the Department as a result of a foreclosure action on a mortgage insured by the Federal Housing Administration under title II of the National Housing Act ( 12 U.S.C. 1707 et seq. ); and (B) located in a special flood hazard area according to a flood hazard boundary map or flood insurance rate map issued by the Administration. (3) Department The term Department means the Department of Housing and Urban Development. (4) National Flood Insurance Program The term National Flood Insurance Program means the program established under the National Flood Insurance Act of 1968 ( 42 U.S.C. 4001 et seq. ). (5) Secretary The term Secretary means the Secretary of Housing and Urban Development. (6) Severe repetitive loss property The term severe repetitive loss property has the meaning given the term in section 1307(h) of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4014(h) ). 3. Requirement to provide disclosure to homebuyers of properties located in special flood hazard areas (a) In general When listing a covered property for sale by the Department, the Secretary shall provide a disclosure notice that includes— (1) the estimated monthly cost of insurance for the covered property under the National Flood Insurance Program for the zip code in which the covered property is located; and (2) whether the covered property is a severe repetitive loss property. (b) Annual report Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Secretary and the Administrator shall submit to Congress a joint report on covered properties sold by the Department for which claims were filed under the National Flood Insurance Program during the year covered by the report, including whether the covered property is a severe repetitive loss property.