NFIP Underwater Properties Act

Bill: 117-s-2833
Sponsor: full_name: Sen. Lee, Mike [R-UT]
Introduced: 2021-09-23
Policy area: Finance and Financial Sector
Latest action: action_date: 2021-09-23
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2021-09-23
action_desc: Introduced in Senate
text: <p><strong>NFIP Underwater Properties Act </strong></p> <p>This bill requires that the premium rate for flood insurance provided through the National Flood Insurance Program (NFIP) for structures that have incurred repetitive flood-related damage 1) be based on sound actuarial principles, and 2) not be subject to any rate caps if the structure is located in a special flood hazard area. Under current law, certain types of property are not charged actuarial rates for NFIP coverage. </p>

tv_txt: II 117th CONGRESS 1st Session S. 2833 IN THE SENATE OF THE UNITED STATES September 23, 2021 Mr. Lee (for himself and Mr. Scott of Florida ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the National Flood Insurance Act of 1968 to address the premium rates for certain properties under the National Flood Insurance Program, and for other purposes.

1. Short title This Act may be cited as the NFIP Underwater Properties Act . 2. Extreme repetitive loss structures Chapter I of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4011 et seq. ) is amended by adding at the end the following: 1326. Extreme repetitive loss structures (a) Definition In this section, the term extreme repetitive loss structure means a structure that— (1) is covered under a contract for flood insurance made available under this title; and (2) has incurred flood-related damage for which, during a 10-year period, not fewer than 2 separate claims payments have been made under flood insurance coverage under this title, with the cumulative amount of such claims exceeding 120 percent of the assessed value of the structure, as of the date on which the first such claim payment is made. (b) Treatment of structures Notwithstanding any other provision of this title, if, after the date on which a structure qualifies as an extreme repetitive loss structure, the structure incurs flood-related damage for which a claim under flood insurance coverage under this title is filed with the Administrator— (1) the Administrator shall assess the claim in accordance with the requirements of this title and any other applicable provision of law or regulation; and (2) after resolution of the claim— (A) the Administrator shall prescribe a chargeable risk premium rate with respect to the structure that represents an actuarially sound rate; and (B) the rate described in subparagraph (A) shall not be subject to the limitation under section 1308(e)(1), unless— (i) the Administrator— (I) performs an examination of the structure; and (II) determines that the structure is not located in an area having special flood hazards; or (ii) the most recent flood insurance rate map published by the Administrator does not indicate that the structure is located in an area having special flood hazards. .