Lineage

Mar 21, 2014 Pub. L. 113–89 Enacted
Mar 21, 2014viewing Enrolled Bill See what changed
Mar 5, 2014 Placed on Calendar Senate Received; read the first time See what changed
Mar 4, 2014 Engrossed in House See what changed
Oct 29, 2013 Introduced in House Mr. Grimm (for himself, Ms. Waters, Mr. Richmond, Mr. Olson, Mr. Palazzo, Mr. Cassidy, Ms. Matsui, Mr. Cramer, Mr. Keating, Ms. Ros-Lehtinen, Ms. Brown of Florida, Mr. Hinojosa, Mr. Meeks, Mr. McIntyre, Mr. Nadler, Mr. Nugent, Mr. Scott of Virginia, Mr. Langevin, Mr. Crowley, Ms. Moore, Mr. Thompson of Pennsylvania, Mr. Jones, Mr. Welch, Mr. Enyart, Mr. LoBiondo, Mr. Lynch, Mr. Carney, Mr. Scalise, Mr. Culberson, Ms. Castor of Florida, Mr. Garcia, Ms. Frankel of Florida, Ms. Velázquez, Ms. Schakowsky, Mr. King of New York, Mr. Pascrell, Mrs. Carolyn B. Maloney of New York, Ms. Wilson of Florida, Mr. Vela, Mr. Stockman, Mr. Boustany, Mr. Fitzpatrick, Mr. Rodney Davis of Illinois, Mr. Perlmutter, Mr. Whitfield, Mr. McNerney, Mr. Murphy of Florida, Mr. Ellison, Mr. Diaz-Balart, Mrs. Ellmers, Mr. Gene Green of Texas, Mr. Buchanan, Mr. Andrews, Mr. Cleaver, Mr. Deutch, Mr. Garamendi, Ms. Jackson Lee, Mr. Jeffries, Mr. Clay, Mrs. McCarthy of New York, Ms. Pingree of Maine, Ms. Tsongas, Ms. Wasserman Schultz, Mr. David Scott of Georgia, Mr. Harper, Mr. Maffei, Mr. Sires, Mr. Connolly, Mr. Polis, Mr. Pallone, Mr. Kennedy, Ms. Loretta Sanchez of California, Mr. Schrader, Mr. Bishop of New York, Ms. Slaughter, Mr. Gutiérrez, Ms. DeGette, Mr. Danny K. Davis of Illinois, Mr. Al Green of Texas, and Mr. Holt) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

H.R. 3370 — what changed

Homeowner Flood Insurance Affordability Act of 2014

From Placed on Calendar Senate to Enrolled Bill. 5 sections amended between Placed on Calendar Senate and Enrolled Bill.

Sec. 12 Optional high-deductible policies for residential properties

changed Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C. ~~4013)), as amended by the preceding provisions of this Act,~~ 4013) is ~~further~~ amended by adding at the end the following new subsection:

changed ~~“(e)~~ “(d) Optional high-Deductible policies for residential properties

“(1) Availability—In the case of residential properties, the Administrator shall make flood insurance coverage available, at the option of the insured, that provides for a loss-deductible for damage to the covered property in various amounts, up to and including $10,000.

“(2) Disclosure

“(A) Form—The Administrator shall provide the information described in subparagraph (B) clearly and conspicuously on the application form for flood insurance coverage or on a separate form, segregated from all unrelated information and other required disclosures.

“(B) Information—The information described in this subparagraph is—

“(i) information sufficient to inform the applicant of the availability of the coverage option required by paragraph (1) to applicants for flood insurance coverage; and

“(ii) a statement explaining the effect of a loss-deductible and that, in the event of an insured loss, the insured is responsible out-of-pocket for losses to the extent of the deductible selected.”

Sec. 14 Accounting for flood mitigation activities in estimates of premium rates

Subparagraph (A) of section 1307(a)(1) of the National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(A)) is amended to read as follows:

“(A) based on consideration of—

“(i) the risk involved and accepted actuarial principles; and

changed “(ii) the flood mitigation activities that an owner or lessee has undertaken on a property, including differences in the risk involved due to land use measures, floodproofing, flood forecasting, and similar ~~measures,”~~measures, and”

Sec. 25 Exceptions to escrow requirement for flood insurance payments

(a)

In general— Section 102(d)(1) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) is amended—

(1)

in subparagraph (A), in the second sentence, by striking “subparagraph (C)” and inserting “subparagraph (B)”; and

(2)

in subparagraph (B)—

(A)

in clause (ii), by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and adjusting the margins accordingly;

(B)

by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and adjusting the margins accordingly;

(C)

in the matter preceding subclause (I), as redesignated by subparagraph (B), by striking “(A) or (B), if—” and inserting the following: “(A)—

“(i) if—”

(D)

by striking the period at the end and inserting “; or”; and

(E)

changed by adding at the end the ~~following~~following:

“(ii) in the case of a loan that—

“(I) is in a junior or subordinate position to a senior lien secured by the same residential improved real estate or mobile home for which flood insurance is being provided at the time of the origination of the loan;

“(II) is secured by residential improved real estate or a mobile home that is part of a condominium, cooperative, or other project development, if the residential improved real estate or mobile home is covered by a flood insurance policy that—

“(aa) meets the requirements that the regulated lending institution is required to enforce under subsection (b)(1);

“(bb) is provided by the condominium association, cooperative, homeowners association, or other applicable group; and

“(cc) the premium for which is paid by the condominium association, cooperative, homeowners association, or other applicable group as a common expense;

“(III) is secured by residential improved real estate or a mobile home that is used as collateral for a business purpose;

“(IV) is a home equity line of credit;

“(V) is a nonperforming loan; or

“(VI) has a term of not longer than 12 months.”

(b)

Applicability—

(1)

In general—

(A)

Required application— The amendments to section 102(d)(1) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) made by section 100209(a) of the Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law 112–141; 126 Stat. 920) and by subsection (a) of this section shall apply to any loan that is originated, refinanced, increased, extended, or renewed on or after January 1, 2016.

(B)

Optional application—

(i)

Definitions— In this subparagraph—

(I)

the terms Federal entity for lending regulation, improved real estate, regulated lending institution, and servicer have the meanings given the terms in section 3 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4003);

(II)

the term outstanding loan means a loan that—

(aa)

is outstanding as of January 1, 2016;

(bb)

is not subject to the requirement to escrow premiums and fees for flood insurance under section 102(d)(1) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) as in effect on July 5, 2012; and

(cc)

would, if the loan had been originated, refinanced, increased, extended, or renewed on or after January 1, 2016, be subject to the requirements under section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as amended; and

(III)

the term section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as amended means section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)(A)), as amended by—

(aa)

section 100209(a) of the Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law 112–141; 126 Stat. 920); and

(bb)

subsection (a) of this section.

(ii)

Option to escrow flood insurance payments— Each Federal entity for lending regulation (after consultation and coordination with the Federal Financial Institutions Examination Council) shall, by regulation, direct that each regulated lending institution or servicer of an outstanding loan shall offer and make available to a borrower the option to have the borrower's payment of premiums and fees for flood insurance under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.), including the escrow of such payments, be treated in the same manner provided under section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as amended.

(2)

Repeal of 2-year delay on applicability— Subsection (b) of section 100209 of the Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law 112–141; 126 Stat. 920) is repealed.

(3)

Rule of construction— Nothing in this section or the amendments made by this section shall be construed to supersede, during the period beginning on July 6, 2012 and ending on December 31, 2015, the requirements under section 102(d)(1) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)), as in effect on July 5, 2012.

Sec. 29 Protection of small businesses, non-profits, houses of worship, and residences

Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subsection:

“(m) Protection of small businesses, non-Profits, houses of worship, and residences

“(1) Report—Not later than 18 months after the date of the enactment of this section and semiannually thereafter, the Administrator shall monitor and report to Committee on Financial Services of the House Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, the Administrator’s assessment of the impact, if any, of the rate increases required under subparagraphs (A) and (D) of section 1307(a)(2) and the surcharges required under section 1308A on the affordability of flood insurance for—

“(A) small businesses with less than 100 employees;

“(B) non-profit entities;

“(C) houses of worship; and

“(D) residences with a value equal to or less than 25 percent of the median home value of properties in the State in which the property is located.

changed “(2) Recommendations—If the Administrator determines that the rate increases or surcharges described in paragraph (1) are having a detrimental effect on affordability, including resulting in lapsed policies, late payments, or other criteria related to affordability as identified by the Administrator, for any of the properties identified in subparagraphs (A) through (D) of such paragraph, the Administrator shall, not later than 3 months after making such a determination, make such recommendations as the Administrator considers appropriate to improve affordability to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.”

Sec. 30 Mapping

changed Section 100216(d)(1) of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. ~~4101b(d)(1))~~ 4101b(d)(1)), as amended by section 27 of this Act, is further amended—

(1)

changed in subparagraph ~~(B)—~~(C)—

(A)

changed by striking “subparagraph ~~(A)”~~ (B)” and inserting “subparagraph ~~(D)”;~~ (E)”; and

(B)

by striking “and” at the end;

(2)

changed by redesignating subparagraphs (A), (B), (C), and ~~(C)~~ (D) as subparagraphs (D), (E), (F), and ~~(G),~~ (H), respectively;

(3)

changed by inserting before subparagraph ~~(B),~~ (D), as so redesignated, the following new subparagraphs:

“(A) before commencement of any mapping or map updating process, notify each community affected of the model or models that the Administrator plans to use in such process and provide an explanation of why such model or models are appropriate;

“(B) provide each community affected a 30-day period beginning upon notification under subparagraph (A) to consult with the Administrator regarding the appropriateness, with respect to such community, of the mapping model or models to be used; provided that consultation by a community pursuant to this subparagraph shall not waive or otherwise affect any right of the community to appeal any flood hazard determinations;

“(C) upon completion of the first Independent Data Submission, transmit a copy of such Submission to the affected community, provide the affected community a 30-day period during which the community may provide data to Administrator that can be used to supplement or modify the existing data, and incorporate any data that is consistent with prevailing engineering principles;”

(4)

changed by inserting after subparagraph ~~(E),~~ (F), as so redesignated, the following new subparagraph:

changed ~~“(F)~~ “(G) not less than 30 days before issuance of any preliminary map, notify the Senators for each State affected and each Member of the House of Representatives for each congressional district affected by the preliminary map in writing of—

“(i) the estimated schedule for—

“(I) community meetings regarding the preliminary map;

“(II) publication of notices regarding the preliminary map in local newspapers; and

“(III) the commencement of the appeals process regarding the map; and

“(ii) the estimated number of homes and businesses that will be affected by changes contained in the preliminary map, including how many structures will be that were not previously located in an area having special flood hazards will be located within such an area under the preliminary map; and”