H.R. 2246 — what changed

added “(12) “residential improved real estate” means improved real estate that—

added “(A) is primarily used for residential purposes, as defined by the Federal entities for lending regulation; and

added “(B) secures financing or financial assistance provided through a federally related single family loan progam, as defined by the Federal entities for lending regulation.”

added “(14) the term “residential improved real estate” means improved real estate that—

added “(A) is primarily used for residential purposes, as defined by the Federal entities for lending regulation; and

added “(B) secures financing or financial assistance provided through a federally related single family loan progam, as defined by the Federal entities for lending regulation;”

Subsection (e) of section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 4081(e)) is amended—

“(e) Risk transfer

“(1) Authority—The Administrator”

“(2) Required risk transfer coverage

“(A) Requirement—Not later than the expiration of the 18-month period beginning upon the date of the enactment of this paragraph and at all times thereafter, the Administrator shall annually cede a portion of the risk of the flood insurance program under this title to the private reinsurance or capital markets, or any combination thereof, and at rates and terms that the Administrator determines to be reasonable and appropriate, in an amount that—

“(i) is sufficient to maintain the ability of the program to pay claims; and

“(ii) manages and limits the annual exposure of the flood insurance program to flood losses in accordance with the probable maximum loss target established for such year under subparagraph (B).

“(B) Probable maximum loss target—The Administrator shall for each fiscal year, establish a probable maximum loss target for the national flood insurance program that shall be the maximum probable loss under the national flood insurance program that is expected to occur in such fiscal year.

“(C) Considerations—In establishing the probable maximum loss target under subparagraph (B) for each fiscal year and carrying out subparagraph (A), the Administrator shall consider—

“(i) the probable maximum loss targets for other United States public natural catastrophe insurance programs, including as State wind pools and earthquake programs;

“(ii) the probable maximum loss targets of other risk management organizations, including the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation;

“(iii) catastrophic, actuarial, and other appropriate data modeling results of the national flood insurance program portfolio;

“(iv) the availability of funds in the National Flood Insurance Fund established under section 1310 (42 U.S.C. 4017);

“(v) the availability of funds in the National Flood Insurance Reserve Fund established under section 1310A (42 U.S.C. 4017a);

“(vi) the availability of borrowing authority under section 1309 (42 U.S.C. 4016);

“(vii) the ability of the Administrator to repay outstanding debt;

“(viii) amounts appropriated to the Administrator to carry out the national flood insurance program;

“(ix) reinsurance, capital markets, catastrophe bonds, collateralized reinsurance, resilience bonds, and other insurance-linked securities, and other risk transfer opportunities; and

“(x) any other factor the Administrator determines appropriate.

“(D) Multi-year contracts—Nothing in this paragraph may be construed to prevent or prohibit the Administrator from complying with the requirement under subparagraph (A) regarding ceding risk through contracts having a duration longer than one year.”

added “(6) recommend to the Administrator methods or actions to make the flood mapping processes more efficient;

added “(7) recommend to the Administrator methods or actions to minimize any cost, data, and paperwork requirements of the flood mapping processes;

added “(8) assist communities, and in particular smaller communities, in locating the resources required to participate in the development of flood elevations and flood hazard area designations; and”

added “(m) Community flood maps

added “(1) Standards and procedures—In addition to the other duties of the Council under this section, not later than the expiration of the 12-month period beginning on the date of the enactment of this subsection, the Council shall recommend to the Administrator standards and requirements for chief executive officers, or entities designated by chief executive officers, of States and communities participating in the National Flood Insurance Program to use in mapping flood hazards located in States and communities that choose to develop alternative maps to the flood insurance rate maps developed by the Agency. The recommended standards and requirements shall include procedures for providing notification and appeal rights to individuals within the communities of the proposed flood elevation determinations.

added “(2) Exemption from rulemaking—Until such time as the Administrator promulgates regulations implementing paragraph (1) of this subsection, the Administrator may, notwithstanding any other provision of law, adopt policies and procedures necessary to implement such paragraphs without undergoing notice and comment rulemaking and without conducting regulatory analyses otherwise required by statute, regulation, or executive order.”

added “(1) to consult”

added “(2) to receive proposed alternative maps from communities developed pursuant to standards and requirements recommended by the Technical Mapping Advisory Council, as required by section 100215(m) of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4101a(m)) and adopted by the Administrator as required by section 100216(c)(3) of such Act (42 U.S.C. 4101b(c)(3)), so that the Administrator may—

added “(A) publish information with respect to all flood plain areas, including coastal areas located in the United States, which have special flood hazards, and

added “(B) establish or update flood-risk zone data in all such areas, and make estimates with respect to the rates of probable flood caused loss for the various flood risk zones for each of these areas until the date specified in section 1319.”

added “(3) establish and adopt standards and requirements for development by States and communities of alternative flood insurance rate maps to be submitted to the Administrator pursuant to section 1360(a)(2) of the National Flood Insurance Act of 1968, taking into consideration the recommendations of the Technical Mapping Advisory Council made pursuant to section 100215(m) of this Act (42 U.S.C. 4101a(m)); and

added “(4) in the case of proposed alternative maps received by the Administrator pursuant to such section 1360(a)(2), not later than the expiration of the 6-month period beginning upon receipt of such proposed alternative maps—

added “(A) determine whether such maps were developed in accordance with the standards and requirements adopted pursuant to paragraph (3) of this subsection; and

added “(B) approve or disapprove such proposed maps for use under National Flood Insurance Program.”

removed Section 100215 of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4101a) is amended by adding at the end the following new subsection:

removed “(m) Private or community flood maps

removed “(1) Standards and procedures—In addition to the other duties of the Council under this section, not later than the expiration of the 12-month period beginning on the date of the enactment of this subsection, the Council shall develop and establish a set of standards, guidelines, and procedures for—

removed “(A) State and local governments, federally or State recognized Metropolitan Planning Organizations (MPOs), federally or State recognized Councils of Local Governments, and federally or State recognized Rural Transportation Planning Organizations to use in mapping flood risks and developing alternative maps to the flood insurance rate maps developed by the Agency; and

removed “(B) certification, by the Administrator and within 90 days of submission, of such maps for use under the National Flood Insurance Program in the case of any area covered by a flood insurance rate map developed or approved by the Administrator which has not been updated or reissued for 36 months or longer.

removed “(2) Treatment—Upon certification of a map pursuant to paragraph (1)(B), such map—

removed “(A) shall be considered the flood insurance rate map in effect for all purposes of the National Flood Insurance Program, with respect to the area covered by the map; and

removed “(B) may not be revised, updated, or replaced pursuant to the standards, guidelines, and procedures established pursuant to paragraph (1) before the expiration of the 36-month period beginning upon such certification.

removed “(3) Exemption from rulemaking—Until such time as the Administrator promulgates regulations implementing paragraphs (1) and (2) of this subsection, the Administrator may adopt policies and procedures, notwithstanding any other provisions of law, necessary to implement such paragraphs without undergoing notice and comment rulemaking and without conducting regulatory analyses otherwise required by statute, regulation, or executive order.”