H.R. 2874 — what changed

removed Section 1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)) is amended—

changed Chapter I Section 1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) 4015(e)) is amended by adding at the end the following new section:amended—

removed “1326. Flood insurance affordability program

removed “(a) Authority—The Administrator shall carry out a program under this section to provide financial assistance, through State programs carried out by participating States, for eligible low-income households residing in eligible properties to purchase policies for flood insurance coverage made available under this title.

removed “(b) Participation—Participation in the program under this section shall be voluntary on the part of a State or consortium of States.

removed “(c) State administration—Each participating State shall delegate to a State agency or nonprofit organization the responsibilities for administrating the State’s program under this section.

removed “(d) Eligible households

removed “(1) In general—During any fiscal year, assistance under the program under this section may be provided only for a household that has an income, as determined for such fiscal year by the participating State in which such household resides, that is less than the income limitation established for such fiscal year for purposes of the State program by the participating State, except that—

removed “(A) assistance under the program under this section may not be provided for a household having a income that exceeds the greater of—

removed “(i) the amount equal to 150 percent of the poverty level for such State; or

removed “(ii) the amount equal to 60 percent of the median income of households residing in such State; and

removed “(B) a State may not exclude a household from eligibility in a fiscal year solely on the basis of household income if such income is less than 110 percent of the poverty level for the State in which such household resides.

removed “(2) State verification of income eligibility—In verifying income eligibility for purposes of paragraph (1), the participating State may apply procedures and policies consistent with procedures and policies used by the State agency administering programs under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), under title XX of the Social Security Act (42 U.S.C. 1397 et seq.), under subtitle B of title VI of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9901 et seq.; relating to community services block grant program), under any other provision of law that carries out programs which were administered under the Economic Opportunity Act of 1964 (42 U.S.C. 2701 et seq.) before August 13, 1981, or under other income assistance or service programs (as determined by the State).

removed “(3) Certification by State of eligibility households—For each fiscal year, each participating State shall certify to the Administrator compliance of households who are to be provided assistance under the State program during such fiscal year with the income requirements under paragraph (1).

removed “(e) Eligible properties—Assistance under the program under this section may be provided only for a residential property—

removed “(1) that has 4 or fewer residences;

removed “(2) that is owned and occupied by an eligible household;

removed “(3) for which a base flood elevation is identified on a flood insurance rate map of the Administrator that is in effect;

removed “(4) for which such other information is available as the Administrator considers necessary to determine the flood risk associated with such property; and

removed “(5) that is located in a community that is participating in the national flood insurance program.

removed “(f) Types of assistance—Under the program under this section, a participating State shall elect to provide financial assistance for eligible households in one of the following forms:

removed “(1) Limitation on rate increases—By establishing a limitation on the rate of increases in the amount of chargeable premiums paid by eligible households for flood insurance coverage made available under this title.

removed “(2) Limitation on rates—By establishing a limitation on the amount of chargeable premiums paid by eligible households for flood insurance coverage made available under this title.

removed “(g) Notification to FEMA—Under the program under this section, a participating State shall, on a fiscal year basis and at the time and in the manner provided by the Administrator—

removed “(1) identify for the Administrator the eligible households residing in the State who are to be provided assistance under the State program during such fiscal year; and

removed “(2) notify the Administrator of the type and levels of assistance elected under subsection (f) to be provided under the State program with respect to such eligible households residing in the State.

removed “(h) Amount of assistance—Under the program under this section, in each fiscal year the Administrator shall, notwithstanding section 1308, make flood insurance coverage available for purchase by households identified as eligible households for such fiscal year by a participating State pursuant to subsection (e) at chargeable premium rates that are discounted by an amount that is based on the type and levels of assistance elected pursuant to subsection (f) by the participating State for such fiscal year.

removed “(i) Billing statement—In the case of an eligible household for which assistance under the program under this section is provided with respect to a policy for flood insurance coverage, the annual billing statement for such policy shall include statements of the following amounts:

removed “(1) The estimated risk premium rate for the property under section 1307(a)(1).

removed “(2) If applicable, the estimated risk premium rate for the property under section 1307(a)(2).

removed “(3) The chargeable risk premium rate for the property taking into consideration the discount pursuant to subsection (h).

removed “(4) The amount of the discount pursuant to subsection (h) for the property.

removed “(5) The number and dollar value of claims filed for the property, over the life of the property, under a flood insurance policy made available under the Program and the effect, under this Act, of filing any further claims under a flood insurance policy with respect to that property.

removed “(j) Funding through State affordability surcharges

removed “(1) Imposition and collection—Notwithstanding section 1308, for each fiscal year in which flood insurance coverage under this title is made available for properties in a participating State at chargeable premium rates that are discounted pursuant to subsection (f), the Administrator shall impose and collect a State affordability surcharge on each policy for flood insurance coverage for a property located in such participating State that is (A) not a residential property having 4 or fewer residences, or (B) is such a residential property but is owned by a household that is not an eligible household for purposes of such fiscal year.

removed “(2) Amount—The amount of the State affordability surcharge imposed during a fiscal year on each such policy for a property in a participating State shall be—

removed “(A) sufficient such that the aggregate amount of all such State affordability surcharges imposed on properties in such participating State during such fiscal year is equal to the aggregate amount by which all policies for flood insurance coverage under this title sold during such fiscal year for properties owned by eligible households in the participating State are discounted pursuant to subsection (f); and

removed “(B) the same amount for each property in the participating State being charged such a surplus.

removed “(k) Treatment of other surcharges—The provision of assistance under the program under this section with respect to any property and any limitation on premiums or premium increases pursuant to subsection (f) for the property shall not affect the applicability or amount of any surcharge under section 1308A for the property, of any increase in premiums charged for the property pursuant to section 1310A(c), or of any equivalency fee under section 1308B for the property.

removed “(l) Definitions—For purposes of this section, the following definitions shall apply:

removed “(1) Participating State—The term “participating State” means, with respect to a fiscal year, a State that is participating in the program under this section for such fiscal year.

removed “(2) Eligible household—The term “eligible household” means, with respect to a fiscal year and a participating State, a household that has an income that is less than the amount of the income limitation for the fiscal year established for purposes of the State program of such participating State pursuant to subsection (g)(1).

removed “(3) Poverty level—The term “poverty level”’ means, with respect to a household in any State, the income poverty line as prescribed and revised at least annually pursuant to section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), as applicable to such State.

removed “(4) State—The term “State” shall include a consortium of States established for purposes of administrating the program under this section with respect to the member States of the consortium.

removed “(5) State program—The term “State program” means a program carried out in compliance with this section by a participating State in conjunction with the program under this section of the Administrator.

removed “(m) Regulations—The Administrator shall issue such regulations as may be necessary to carry out the program under this section.”

changed Section 1308 Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4015) 4011 et seq.) is amended by adding at the end the following new subsection:section:

changed “(n) Disclosure of premium methodology“1326. Flood insurance affordability program

changed “(1) Disclosure—Six months prior to the effective date of risk premium rates, the “(a) Authority—The Administrator shall cause carry out a program under this section to be published provide financial assistance, through State programs carried out by participating States, for eligible low-income households residing in the Federal Register an explanation of the bases for, and methodology used to determine, the chargeable premium rates eligible properties to be effective purchase policies for flood insurance coverage made available under this title.

changed “(2) Alignment with industry practices—The disclosure required under paragraph (1) shall, to “(b) Participation—Participation in the extent practicable, be aligned with industry patterns and practices and program under this section shall include information and data recommended by be voluntary on the part of a State insurance commissioners guidelines on rate filings.or consortium of States.

changed “(3) Public meetings—The Administrator shall, on an annual basis, hold at least one public meeting in each of the geographical regions of the United States, as defined by the Administrator for purposes of the National Flood Insurance Program, for the purpose of explaining the methodology described in paragraph (1) and answering questions and receiving comments regarding such methodology. The Administrator “(c) State administration—Each participating State shall provide notice of each such public meeting in advance, in such manner, and in using such means as are reasonably designed delegate to notify interested parties and members of a State agency or nonprofit organization the public of responsibilities for administrating the date and time, location, and purpose of such meeting, and of how to submit questions or comments.”State’s program under this section.

added “(d) Eligible households

added “(1) In general—During any fiscal year, assistance under the program under this section may be provided only for a household that has an income, as determined for such fiscal year by the participating State in which such household resides, that is less than the income limitation established for such fiscal year for purposes of the State program by the participating State, except that—

added “(A) assistance under the program under this section may not be provided for a household having a income that exceeds the greater of—

added “(i) the amount equal to 150 percent of the poverty level for such State; or

added “(ii) the amount equal to 60 percent of the median income of households residing in such State; and

added “(B) a State may not exclude a household from eligibility in a fiscal year solely on the basis of household income if such income is less than 110 percent of the poverty level for the State in which such household resides.

added “(2) State verification of income eligibility—In verifying income eligibility for purposes of paragraph (1), the participating State may apply procedures and policies consistent with procedures and policies used by the State agency administering programs under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), under title XX of the Social Security Act (42 U.S.C. 1397 et seq.), under subtitle B of title VI of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9901 et seq.; relating to community services block grant program), under any other provision of law that carries out programs which were administered under the Economic Opportunity Act of 1964 (42 U.S.C. 2701 et seq.) before August 13, 1981, or under other income assistance or service programs (as determined by the State).

added “(3) Certification by State of eligibility households—For each fiscal year, each participating State shall certify to the Administrator compliance of households who are to be provided assistance under the State program during such fiscal year with the income requirements under paragraph (1).

added “(e) Eligible properties—Assistance under the program under this section may be provided only for a residential property—

added “(1) that has 4 or fewer residences;

added “(2) that is owned and occupied by an eligible household;

added “(3) for which a base flood elevation is identified on a flood insurance rate map of the Administrator that is in effect;

added “(4) for which such other information is available as the Administrator considers necessary to determine the flood risk associated with such property; and

added “(5) that is located in a community that is participating in the national flood insurance program.

added “(f) Types of assistance—Under the program under this section, a participating State shall elect to provide financial assistance for eligible households in one of the following forms:

added “(1) Limitation on rate increases—By establishing a limitation on the rate of increases in the amount of chargeable premiums paid by eligible households for flood insurance coverage made available under this title.

added “(2) Limitation on rates—By establishing a limitation on the amount of chargeable premiums paid by eligible households for flood insurance coverage made available under this title.

added “(g) Notification to FEMA—Under the program under this section, a participating State shall, on a fiscal year basis and at the time and in the manner provided by the Administrator—

added “(1) identify for the Administrator the eligible households residing in the State who are to be provided assistance under the State program during such fiscal year; and

added “(2) notify the Administrator of the type and levels of assistance elected under subsection (f) to be provided under the State program with respect to such eligible households residing in the State.

added “(h) Amount of assistance—Under the program under this section, in each fiscal year the Administrator shall, notwithstanding section 1308, make flood insurance coverage available for purchase by households identified as eligible households for such fiscal year by a participating State pursuant to subsection (e) at chargeable premium rates that are discounted by an amount that is based on the type and levels of assistance elected pursuant to subsection (f) by the participating State for such fiscal year.

added “(i) Billing statement—In the case of an eligible household for which assistance under the program under this section is provided with respect to a policy for flood insurance coverage, the annual billing statement for such policy shall include statements of the following amounts:

added “(1) The estimated risk premium rate for the property under section 1307(a)(1).

added “(2) If applicable, the estimated risk premium rate for the property under section 1307(a)(2).

added “(3) The chargeable risk premium rate for the property taking into consideration the discount pursuant to subsection (h).

added “(4) The amount of the discount pursuant to subsection (h) for the property.

added “(5) The number and dollar value of claims filed for the property, over the life of the property, under a flood insurance policy made available under the Program and the effect, under this Act, of filing any further claims under a flood insurance policy with respect to that property.

added “(j) Funding through State affordability surcharges

added “(1) Imposition and collection—Notwithstanding section 1308, for each fiscal year in which flood insurance coverage under this title is made available for properties in a participating State at chargeable premium rates that are discounted pursuant to subsection (f), the Administrator shall impose and collect a State affordability surcharge on each policy for flood insurance coverage for a property located in such participating State that is (A) not a residential property having 4 or fewer residences, or (B) is such a residential property but is owned by a household that is not an eligible household for purposes of such fiscal year.

added “(2) Amount—The amount of the State affordability surcharge imposed during a fiscal year on each such policy for a property in a participating State shall be—

added “(A) sufficient such that the aggregate amount of all such State affordability surcharges imposed on properties in such participating State during such fiscal year is equal to the aggregate amount by which all policies for flood insurance coverage under this title sold during such fiscal year for properties owned by eligible households in the participating State are discounted pursuant to subsection (f); and

added “(B) the same amount for each property in the participating State being charged such a surplus.

added “(k) Treatment of other surcharges—The provision of assistance under the program under this section with respect to any property and any limitation on premiums or premium increases pursuant to subsection (f) for the property shall not affect the applicability or amount of any surcharge under section 1308A for the property, of any increase in premiums charged for the property pursuant to section 1310A(c), or of any equivalency fee under section 1308B for the property.

added “(l) Definitions—For purposes of this section, the following definitions shall apply:

added “(1) Participating State—The term “participating State” means, with respect to a fiscal year, a State that is participating in the program under this section for such fiscal year.

added “(2) Eligible household—The term “eligible household” means, with respect to a fiscal year and a participating State, a household that has an income that is less than the amount of the income limitation for the fiscal year established for purposes of the State program of such participating State pursuant to subsection (g)(1).

added “(3) Poverty level—The term “poverty level”’ means, with respect to a household in any State, the income poverty line as prescribed and revised at least annually pursuant to section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), as applicable to such State.

added “(4) State—The term “State” shall include a consortium of States established for purposes of administrating the program under this section with respect to the member States of the consortium.

added “(5) State program—The term “State program” means a program carried out in compliance with this section by a participating State in conjunction with the program under this section of the Administrator.

added “(m) Regulations—The Administrator shall issue such regulations as may be necessary to carry out the program under this section.”

added Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by adding at the end the following new subsection:

added “(n) Disclosure of premium methodology

added “(1) Disclosure—Six months prior to the effective date of risk premium rates, the Administrator shall cause to be published in the Federal Register an explanation of the bases for, and methodology used to determine, the chargeable premium rates to be effective for flood insurance coverage under this title.

added “(2) Alignment with industry practices—The disclosure required under paragraph (1) shall, to the extent practicable, be aligned with industry patterns and practices and shall include information and data recommended by the State insurance commissioners guidelines on rate filings.

added “(3) Public meetings—The Administrator shall, on an annual basis, hold at least one public meeting in each of the geographical regions of the United States, as defined by the Administrator for purposes of the National Flood Insurance Program, for the purpose of explaining the methodology described in paragraph (1) and answering questions and receiving comments regarding such methodology. The Administrator shall provide notice of each such public meeting in advance, in such manner, and in using such means as are reasonably designed to notify interested parties and members of the public of the date and time, location, and purpose of such meeting, and of how to submit questions or comments.”

removed “(iii) the differences in flood risk for properties impacted by coastal flood risk and properties impacted by riverine, or inland flood risk; and”

added “(iii) the differences in flood risk for properties impacted by coastal flood risk and properties impacted by riverine, or inland flood risk; and”

removed Subsection (g) of section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended—

removed “(g) Frequency of premium collection

removed “(1) Options—With respect”

removed “(2) Monthly installment payment of premiums

removed “(A) Exemption from rulemaking—Until such time as the Administrator promulgates regulations implementing paragraph (1) of this subsection, the Administrator may adopt policies and procedures, notwithstanding any other provisions of law and in alignment and consistent with existing industry escrow and servicing standards, necessary to implement such paragraph without undergoing notice and comment rulemaking and without conducting regulatory analyses otherwise required by statute, regulation, or Executive order.

removed “(B) Installment plan fee—The Administrator may charge policyholders choosing to pay premiums in monthly installments a fee not to exceed $50 annually.

removed “(C) Pilot program—The Administrator may initially implement paragraph (1) of this subsection as a pilot program that provides for a gradual phase-in of implementation.”

added “(g) Frequency of premium collection

added “(1) Options—With respect”

added “(2) Monthly installment payment of premiums

added “(A) Exemption from rulemaking—Until such time as the Administrator promulgates regulations implementing paragraph (1) of this subsection, the Administrator may adopt policies and procedures, notwithstanding any other provisions of law and in alignment and consistent with existing industry escrow and servicing standards, necessary to implement such paragraph without undergoing notice and comment rulemaking and without conducting regulatory analyses otherwise required by statute, regulation, or Executive order.

added “(B) Pilot program—The Administrator may initially implement paragraph (1) of this subsection as a pilot program that provides for a gradual phase-in of implementation.

added “(C) Policyholder protection—The Administrator may—

added “(i) during the 12-month period beginning on the date of the enactment of this subparagraph, charge policyholders choosing to pay premiums in monthly installments a fee for the total cost of the monthly collection of premiums not to exceed $25 annually; and

added “(ii) after the expiration of the 12-month period referred to in clause (i), adjust the fee charged annually to cover the total cost of the monthly collection of premiums as determined by the report submitted pursuant to subparagraph (D).

added “(D) Report—Not later than six months after the date of the enactment of this Act, the Comptroller General shall submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, that sets forth all of the costs associated with the monthly payment of premiums, including any up-front costs associated with infrastructure development, the impact on all policyholders including those that exercise the option to pay monthly and those that do not, options for minimizing the costs, particularly the costs to policyholders, and the feasibility of adopting practices that serve to minimize costs to policyholders such as automatic payments and electronic payments.

added “(E) Annual Reports—On an annual basis, the Administrator shall report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate the ongoing costs associated with the monthly payment of premiums.”

removed “(l) Clear communications

removed “(1) Newly issued and renewed policies—For all policies for flood insurance coverage under the National Flood Insurance Program that are newly issued or renewed, the Administrator shall clearly communicate to policyholders—

removed “(A) their full flood risk determinations, regardless of whether their premium rates are full actuarial rates; and

removed “(B) the number and dollar value of claims filed for the property, over the life of the property, under a flood insurance policy made available under the Program and the effect, under this Act, of filing any further claims under a flood insurance policy with respect to that property.”

added “(l) Clear communications

added “(1) Newly issued and renewed policies—For all policies for flood insurance coverage under the National Flood Insurance Program that are newly issued or renewed, the Administrator shall clearly communicate to policyholders—

added “(A) their full flood risk determinations, regardless of whether their premium rates are full actuarial rates; and

added “(B) the number and dollar value of claims filed for the property, over the life of the property, under a flood insurance policy made available under the Program and the effect, under this Act, of filing any further claims under a flood insurance policy with respect to that property.”

removed Section 1313 of the National Flood Insurance Act of 1968 (42 U.S.C. 4020) is amended—

removed “(b) Availability of flood insurance information upon request—Not later than 30 days after a request for such information by the current owner of a property, the Administrator shall provide to the owner any information, including historical information, available to the Administrator on flood insurance program coverage, payment of claims, and flood damages for the property at issue, and any information the Administrator has on whether the property owner may be required to purchase coverage under the National Flood Insurance Program due to previous receipt of Federal disaster assistance, including assistance provided by the Small Business Administration, the Department of Housing and Urban Development, or the Federal Emergency Management Agency, or any other type of assistance that subjects the property to the mandatory purchase requirement under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a).”

added Section 1313 of the National Flood Insurance Act of 1968 (42 U.S.C. 4020) is amended—

removed “1327. Disclosure of flood risk information upon transfer of property

removed “(a) Requirement for participation in program—After September 30, 2022, no new flood insurance coverage may be provided under this title for any real property located in any area (or subdivision thereof) unless an appropriate body has imposed, by statute or regulation, a duty on any seller or lessor of improved real estate located in such area to provide to any purchaser or lessee of such property a property flood hazard disclosure which the Administrator has determined meets the requirements of subsection (b).

removed “(b) Disclosure requirements—A property flood hazard disclosure for a property shall meet the requirements of this subsection only if the disclosure—

removed “(1) is made in writing;

removed “(2) discloses any actual knowledge of the seller or lessor of—

removed “(A) prior physical damage caused by flood to any building located on the property;

removed “(B) prior insurance claims for losses covered under the National Flood Insurance Program or private flood insurance with respect to such property;

removed “(C) any previous notification regarding the designation of the property as a repetitive loss or severe repetitive loss property; and

removed “(D) any Federal legal obligation to obtain and maintain flood insurance running with the property, such as any obligation due to a previous form of disaster assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act received by any owner of the property; and

removed “(3) is delivered by or on behalf of the seller or lessor to the purchaser or lessee before such purchaser or lessee becomes obligated under any contract for purchase or lease of the property.”

added “(b) Availability of flood insurance information upon request—Not later than 30 days after a request for such information by the current owner of a property, the Administrator shall provide to the owner any information, including historical information, available to the Administrator on flood insurance program coverage, payment of claims, and flood damages for the property at issue, and any information the Administrator has on whether the property owner may be required to purchase coverage under the National Flood Insurance Program due to previous receipt of Federal disaster assistance, including assistance provided by the Small Business Administration, the Department of Housing and Urban Development, or the Federal Emergency Management Agency, or any other type of assistance that subjects the property to the mandatory purchase requirement under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a).”

removed “(3) given satisfactory assurance that by September 31, 2022, property flood hazard disclosure requirements will have been adopted for the area that meet the requirements of section 1326.”

added “1327. Disclosure of flood risk information upon transfer of property

added “(a) Requirement for participation in program—After September 30, 2022, no new flood insurance coverage may be provided under this title for any real property located in any area (or subdivision thereof) unless an appropriate body has imposed, by statute or regulation, a duty on any seller or lessor of improved real estate located in such area to provide to any purchaser or lessee of such property a property flood hazard disclosure which the Administrator has determined meets the requirements of subsection (b).

added “(b) Disclosure requirements—A property flood hazard disclosure for a property shall meet the requirements of this subsection only if the disclosure—

added “(1) is made in writing;

added “(2) discloses any actual knowledge of the seller or lessor of—

added “(A) prior physical damage caused by flood to any building located on the property;

added “(B) prior insurance claims for losses covered under the National Flood Insurance Program or private flood insurance with respect to such property;

added “(C) any previous notification regarding the designation of the property as a multiple loss property; and

added “(D) any Federal legal obligation to obtain and maintain flood insurance running with the property, such as any obligation due to a previous form of disaster assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act received by any owner of the property; and

added “(3) is delivered by or on behalf of the seller or lessor to the purchaser or lessee before such purchaser or lessee becomes obligated under any contract for purchase or lease of the property.”

added “(3) given satisfactory assurance that by September 30, 2022, property flood hazard disclosure requirements will have been adopted for the area that meet the requirements of section 1326.”

added “102.

added “(a) Amount and term of coverage—After the expiration of sixty days following the date of the enactment of this Act, no Federal officer or agency shall approve any financial assistance for acquisition or construction purposes for use in any area that has been identified by the Administrator as an area having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, unless the building or mobile home and any personal property to which such financial assistance relates is covered by flood insurance: Provided, That the amount of flood insurance (1) in the case of Federal flood insurance, is at least equal to the development or project cost of the building, mobile home, or personal property (less estimated land cost), the outstanding principal balance of the loan, or the maximum limit of Federal flood insurance coverage made available with respect to the particular type of property, whichever is less; or (2) in the case of private flood insurance, is at least equal to the development or project cost of the building, mobile home, or personal property (less estimated land cost), the outstanding principal balance of the loan, or the maximum limit of Federal flood insurance coverage made available with respect to the particular type of property, whichever is less: Provided further, That if the financial assistance provided is in the form of a loan or an insurance or guaranty of a loan, the amount of flood insurance required need not exceed the outstanding principal balance of the loan and need not be required beyond the term of the loan. The requirement of maintaining flood insurance shall apply during the life of the property, regardless of transfer of ownership of such property.”

added “(b) Requirement for mortgage loans

added “(1) Regulated lending institutions—Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council established under the Federal Financial Institutions Examination Council Act of 1974) shall by regulation direct regulated lending institutions not to make, increase, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Administrator as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968, unless the building or mobile home and any personal property securing such loan is covered for the term of the loan by flood insurance: Provided, That the amount of flood insurance (A) in the case of Federal flood insurance, is at least equal to the outstanding principal balance of the loan or the maximum limit of Federal flood insurance coverage made available with respect to the particular type of property, whichever is less; or (B) in the case of private flood insurance, is at least equal to the outstanding principal balance of the loan or the maximum limit of Federal flood insurance coverage made available with respect to the particular type of property, whichever is less.

added “(2) Federal agency lenders and mortgage insurance and guarantee agencies

added “(A) Federal agency lenders—A Federal agency lender may not make, increase, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Administrator as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968, unless the building or mobile home and any personal property securing such loan is covered for the term of the loan by flood insurance in accordance with paragraph (1). Each Federal agency lender may issue any regulations necessary to carry out this paragraph. Such regulations shall be consistent with and substantially identical to the regulations issued under paragraph (1).

added “(B) Other Federal mortgage entities

added “(i) Coverage requirements—Each covered Federal mortgage entity shall implement procedures reasonably designed to ensure that, for any loan that—

added “(I) is secured by improved real estate or a mobile home located in an area that has been identified, at the time of the origination of the loan or at any time during the term of the loan, by the Administrator as an area having special flood hazards and in which flood insurance is available under the National Flood Insurance Act of 1968, and

added “(II) is made, insured, held, or guaranteed by such entity, or backs or on which is based any trust certificate or other security for which such entity guarantees the timely payment of principal and interest,

added “(ii) Definition—For purposes of this subparagraph, the term “covered Federal mortgage entity” means—

added “(I) the Secretary of Housing and Urban Development, with respect to mortgages insured under the National Housing Act;

added “(II) the Secretary of Agriculture, with respect to loans made, insured, or guaranteed under title V of the Housing Act of 1949; and

added “(III) the Government National Mortgage Association.

added “(C) Requirement to accept flood insurance—Each Federal agency lender and each covered Federal mortgage entity shall accept flood insurance as satisfaction of the flood insurance coverage requirement under subparagraph (A) or (B), respectively, if the flood insurance coverage meets the requirements for coverage under such subparagraph and the requirements relating to financial strength issued pursuant to paragraph (4).

added “(3) Government-sponsored enterprises for housing—The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall implement procedures reasonably designed to ensure that, for any loan that is—

added “(A) secured by improved real estate or a mobile home located in an area that has been identified, at the time of the origination of the loan or at any time during the term of the loan, by the Administrator as an area having special flood hazards and in which flood insurance is available under the National Flood Insurance Act of 1968, and

added “(B) purchased or guaranteed by such entity,

added “(4) Requirements regarding financial strength—The Director of the Federal Housing Finance Agency, in consultation with the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Secretary of Housing and Urban Development, the Government National Mortgage Association, and the Secretary of Agriculture shall develop and implement requirements relating to the financial strength of private insurance companies from which such entities and agencies will accept private flood insurance, provided that such requirements shall not affect or conflict with any State law, regulation, or procedure concerning the regulation of the business of insurance.

added “(5) Applicability

added “(A) Existing coverage—Except as provided in subparagraph (B), paragraph (1) shall apply on the date of enactment of the Riegle Community Development and Regulatory Improvement Act of 1994.

added “(B) New coverage—Paragraphs (2) and (3) shall apply only with respect to any loan made, increased, extended, or renewed after the expiration of the 1-year period beginning on the date of enactment of the Riegle Community Development and Regulatory Improvement Act of 1994. Paragraph (1) shall apply with respect to any loan made, increased, extended, or renewed by any lender supervised by the Farm Credit Administration only after the expiration of the period under this subparagraph.

added “(C) Continued effect of regulations—Notwithstanding any other provision of this subsection, the regulations to carry out paragraph (1), as in effect immediately before the date of enactment of the Riegle Community Development and Regulatory Improvement Act of 1994, shall continue to apply until the regulations issued to carry out paragraph (1) as amended by section 522(a) of such Act take effect.

added “(6) Rule of construction—Except as otherwise specified, any reference to flood insurance in this section shall be considered to include Federal flood insurance and private flood insurance. Nothing in this subsection shall be construed to supersede or limit the authority of a Federal entity for lending regulation, the Federal Housing Finance Agency, a Federal agency lender, a covered Federal mortgage entity (as such term is defined in paragraph (2)(B)(ii)), the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation to establish requirements relating to the financial strength of private insurance companies from which the entity or agency will accept private flood insurance, provided that such requirements shall not affect or conflict with any State law, regulation, or procedure concerning the regulation of the business of insurance.”

added “(8) Definitions—In this section:

added “(A) Flood insurance—The term flood insurance means—

added “(i) Federal flood insurance; and

added “(ii) private flood insurance.

added “(B) Federal flood insurance—The term Federal flood insurance means an insurance policy made available under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.).

added “(C) Mutual aid society—The term mutual aid society means an organization—

added “(i) the members of which—

added “(I) share a common set of ethical or religious beliefs; and

added “(II) in accordance with the beliefs described in subclause (I), agree to cover expenses arising from damage to property of the members of the organization, including damage caused by flooding; and

added “(ii) that has a demonstrated history of fulfilling the terms of agreements to cover expenses arising from damage to property of the members of the organization caused by flooding.

added “(D) Private flood insurance—The term private flood insurance means—

added “(i) an insurance policy that—

added “(I) is issued by an insurance company that is—

added “(aa) licensed, admitted, or otherwise approved to engage in the business of insurance in the State in which the insured building is located, by the insurance regulator of that State; or

added “(bb) eligible as a nonadmitted insurer to provide insurance in the home State of the insured, in accordance with sections 521 through 527 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (15 U.S.C. 8201 through 8206);

added “(II) is issued by an insurance company that is not otherwise disapproved as a surplus lines insurer by the insurance regulator of the State in which the property to be insured is located; and

added “(III) provides flood insurance coverage that complies with the laws and regulations of that State; or

added “(ii) an agreement with a mutual aid society for such society to cover expenses arising from damage to property of the members of such society caused by flooding, unless the State in which the property to be insured is located has—

added “(I) determined that the specific mutual aid society may not provide such coverage or provide such coverage in such manner; or

added “(II) specifically provided through law or regulation that mutual aid societies may not provide such coverage or provide such coverage in such manner.

added “(E) State—The term State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa.”

added “(o) Effect of private flood insurance coverage on continuous coverage requirements—For purposes of applying any statutory, regulatory, or administrative continuous coverage requirement, including under section 1307(g)(1), the Administrator shall consider any period during which a property was continuously covered by private flood insurance (as defined in section 102(b)(8) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)(8))) to be a period of continuous coverage.”

removed Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 4081) is amended by adding at the end the following new subsection:

removed “(f) Authority To provide other flood coverage

removed “(1) In general—The Administrator may not, as a condition of participating in the Write Your Own Program (as such term is defined in section 1370(a)) or in otherwise participating in the utilization by the Administrator of the facilities and services of insurance companies, insurers, insurance agents and brokers, and insurance adjustment organizations pursuant to the authority in this section, nor as a condition of eligibility to engage in any other activities under the National Flood Insurance Program under this title, restrict any such company, insurer, agent, broker, or organization from offering and selling private flood insurance (as such term is defined in section 102(b)(9) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)(9))).

removed “(2) Financial assistance/subsidy arrangement—After the date of the enactment of this subsection—

removed “(A) the Administrator may not include in any agreement entered into with any insurer for participation in the Write Your Own Program any provision establishing a condition prohibited by paragraph (1), including the provisions of Article XIII of the Federal Emergency Management Agency, Federal Insurance Administration, Financial Assistance/Subsidy Arrangement, as adopted pursuant to section 62.23(a) of title 44 of the Code of Federal Regulations; and

removed “(B) any such provision in any such agreement entered into before such date of enactment shall not have any force or effect, and the Administrator may not take any action to enforce such provision.”

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 program, 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 program, as defined by the Federal entities for lending regulation;”

removed Part C of chapter II of the National Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.) is amended by adding at the end the following new section:

removed “1349. Public availability of program information

removed “(a) Flood risk information

removed “(1) In general—Except as provided in paragraph (2), to facilitate the National Flood Insurance Program becoming a source of information and data for research and development of technology that better understands flooding, the risk of flooding, and the predictability of perils of flooding, the Administrator shall make publicly available all data, models, assessments, analytical tools, and other information in the possession of the Administrator relating to the National Flood Insurance Program under this title that is used in assessing flood risk or identifying and establishing flood elevations and premiums, including—

removed “(A) data relating to risk on individual properties and loss ratio information and other information identifying losses under the program;

removed “(B) current and historical policy information, limited to the amount and term only, for properties currently covered by flood insurance and for properties that are no longer covered by flood insurance;

removed “(C) current and historical claims information, limited to the date and amount paid only, for properties currently covered by flood insurance and for properties that are no longer covered by flood insurance;

removed “(D) identification of whether a property was constructed before or after the effective date of the first flood insurance rate map for a community;

removed “(E) identification of properties that have been mitigated through elevation, a buyout, or any other mitigation action; and

removed “(F) identification of unmitigated multiple-loss properties.

removed “(2) Open source data system—In carrying out paragraph (1), the Administrator shall establish an open source data system by which all information required to be made publicly available by such subsection may be accessed by the public on an immediate basis by electronic means.

removed “(b) Community information—Not later than the expiration of the 12-month period beginning upon the date of the enactment of this section, the Administrator shall establish and maintain a publicly searchable database that provides information about each community participating in the National Flood Insurance Program, which shall include the following information:

removed “(1) The status of the community’s compliance with the National Flood Insurance Program, including any findings of noncompliance, the status of any enforcement actions initiated by a State or by the Administrator, and the number of days of any such continuing noncompliance.

removed “(2) The number of properties located in the community’s special flood hazard areas that were built before the effective date of the first flood insurance rate map for the community.

removed “(3) The number of properties located in the community’s special flood hazard areas that were built after the effective date of the first flood insurance rate map for the community.

removed “(4) The total number of current and historical claims located outside the community’s special flood hazard areas.

removed “(5) The total number of multiple-loss properties in the community.

removed “(6) The portion of the community, stated as a percentage and in terms of square miles, that is located within special flood hazard areas.

removed “(c) Identification of properties—The information provided pursuant to subsections (a) and (b) shall be based on data that identifies properties at the zip code or census block level, and shall include the name of the community and State in which a property is located.

removed “(d) Protection of personally identifiable information—The information provided pursuant to subsections (a) and (b) shall be disclosed in a format that does not reveal individually identifiable information about property owners in accordance with the section 552a of title 5, United States Code.

removed “(e) Definition of loss ratio—For purposes of this section, the term “loss ratio” means, with respect to the National Flood Insurance Program, the ratio of the amount of claims paid under the Program to the amount of premiums paid under the Program.”

changed Section 1306 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 4013) 4081) is amended by adding at the end the following new subsection:

changed “(e) Refund of unearned premiums for policies canceled because of replacement with private “(f) Authority To provide other flood insurancecoverage

changed “(1) Required refund—Subject to subsection (c), if at any time an insured under a policy for flood insurance coverage for a property that is made available under this title cancels such policy because other duplicate flood insurance coverage for the same property has been obtained from a source other than the National Flood Insurance Program under this title, the In general—The Administrator shall refund to the former insured may not, as a portion condition of participating in the premiums paid for Write Your Own Program (as such term is defined in section 1370(a)) or in otherwise participating in the coverage made available under this title, as determined consistent with industry practice according to utilization by the portion Administrator of the term facilities and services of insurance companies, insurers, insurance agents and brokers, and insurance adjustment organizations pursuant to the policy that such coverage was authority in effect, but only if this section, nor as a copy of declarations page condition of the new policy obtained from a source eligibility to engage in any other than activities under the program National Flood Insurance Program under this title title, restrict any such company, insurer, agent, broker, or organization from offering and selling private flood insurance (as such term is provided to defined in section 102(b)(9) of the Administrator.Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)(9))).

changed “(2) Effective Financial assistance/subsidy arrangement—After the date of cancellation—For purposes of this subsection, a cancellation of a policy for coverage made available under the national flood insurance program under enactment of this title, for the reason specified in paragraph (1), shall be effective—subsection—

changed “(A) on the effective date of Administrator may not include in any agreement entered into with any insurer for participation in the new policy obtained from Write Your Own Program any provision establishing a source other than the program under this title, if the request for such cancellation was received condition prohibited by the Administrator before paragraph (1), including the expiration provisions of the 6-month period beginning on Article XIII of the effective date Federal Emergency Management Agency, Federal Insurance Administration, Financial Assistance/Subsidy Arrangement, as adopted pursuant to section 62.23(a) of title 44 of the new policy; orCode of Federal Regulations; and

changed “(B) on the any such provision in any such agreement entered into before such date of the receipt by enactment shall not have any force or effect, and the Administrator of the request for cancellation, if the request for may not take any action to enforce such cancellation was received by the Administrator after the expiration of the 6-month period beginning on the effective date of the new policy.provision.”

removed “(3) Prohibition of refunds for properties receiving increased cost of compliance claims—No premium amounts paid for coverage made available under this title may be refunded pursuant to this subsection—

removed “(A) with respect to coverage for any property for which measures have been implemented using amounts received pursuant to a claim under increased cost of compliance coverage made available pursuant to section 1304(b); or

removed “(B) if a claim has been paid or is pending under the policy term for which the refund is sought.”

changed Paragraph (7) Part C of section 102(b) chapter II of the National Flood Disaster Protection Insurance Act of 1973 1968 (42 U.S.C. 4012a(c)) 4081 et seq.) is amended to read as follows:by adding at the end the following new section:

changed “(7) Definitions—In this section:“1349. Public availability of program information

changed “(A) Federal flood insurance—The term Federal flood insurance means an insurance policy made available under the National “(a) Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.).risk information

changed “(B) “(1) In general—Except as provided in paragraph (2), to facilitate the National Flood insurance—The term Insurance Program becoming a source of information and data for research and development of technology that better understands flooding, the risk of flooding, and the predictability of perils of flooding, the Administrator shall make publicly available all data, models, assessments, analytical tools, and other information in the possession of the Administrator relating to the National Flood Insurance Program under this title that is used in assessing flood insurance means—risk or identifying and establishing flood elevations and premiums, including—

changed “(i) Federal flood insurance; and“(A) data relating to risk on individual properties and loss ratio information and other information identifying losses under the program;

changed “(ii) private “(B) current and historical policy information, limited to the amount and term only, for properties currently covered by flood insurance.insurance and for properties that are no longer covered by flood insurance;

changed “(C) Mutual aid society—The term mutual aid society means an organization—current and historical claims information, limited to the date and amount paid only, for properties currently covered by flood insurance and for properties that are no longer covered by flood insurance;

changed “(i) “(D) identification of whether a property was constructed before or after the members effective date of which—the first flood insurance rate map for a community;

changed “(I) share a common set “(E) identification of ethical properties that have been mitigated through elevation, a buyout, or religious beliefs; any other mitigation action; and

changed “(II) in accordance with the beliefs described in subclause (I), agree to cover expenses arising from damage to property of the members “(F) identification of the organization, including damage caused by flooding; andunmitigated multiple-loss properties.

changed “(ii) that has a demonstrated history of fulfilling “(2) Open source data system—In carrying out paragraph (1), the terms of agreements to cover expenses arising from damage Administrator shall establish an open source data system by which all information required to property of the members of be made publicly available by such subsection may be accessed by the organization caused public on an immediate basis by flooding.electronic means.

changed “(D) Private flood insurance—The term private flood insurance means—“(b) Community information—Not later than the expiration of the 12-month period beginning upon the date of the enactment of this section, the Administrator shall establish and maintain a publicly searchable database that provides information about each community participating in the National Flood Insurance Program, which shall include the following information:

changed “(i) an insurance policy that—“(1) The status of the community’s compliance with the National Flood Insurance Program, including any findings of noncompliance, the status of any enforcement actions initiated by a State or by the Administrator, and the number of days of any such continuing noncompliance.

changed “(I) is issued by an insurance company “(2) The number of properties located in the community’s special flood hazard areas that is—were built before the effective date of the first flood insurance rate map for the community.

changed “(aa) licensed, admitted, or otherwise approved to engage in the business “(3) The number of insurance properties located in the State in which community’s special flood hazard areas that were built after the insured building is located, by effective date of the first flood insurance regulator of that State; orrate map for the community.

changed “(bb) eligible as a nonadmitted insurer to provide insurance in the home State of the insured, in accordance with sections 521 through 527 “(4) The total number of the Nonadmitted current and Reinsurance Reform Act of 2010 (15 U.S.C. 8201 through 8206);historical claims located outside the community’s special flood hazard areas.

changed “(II) is issued by an insurance company that is not otherwise disapproved as a surplus lines insurer by the insurance regulator “(5) The total number of the State multiple-loss properties in which the property to be insured is located; andcommunity.

changed “(III) provides flood insurance coverage that complies with “(6) The portion of the laws community, stated as a percentage and regulations in terms of square miles, that State; oris located within special flood hazard areas.

changed “(ii) an agreement with a mutual aid society for such society to cover expenses arising from damage to property “(c) Identification of properties—The information provided pursuant to subsections (a) and (b) shall be based on data that identifies properties at the members zip code or census block level, and shall include the name of such society caused by flooding, unless the community and State in which the a property to be insured is located has—located.

changed “(I) determined “(d) Protection of personally identifiable information—The information provided pursuant to subsections (a) and (b) shall be disclosed in a format that the specific mutual aid society may does not provide such coverage or provide such coverage reveal individually identifiable information about property owners in such manner; oraccordance with the section 552a of title 5, United States Code.

changed “(II) specifically provided through law or regulation that mutual aid societies may not provide such coverage or provide such coverage in such manner.“(e) Definition of loss ratio—For purposes of this section, the term “loss ratio” means, with respect to the National Flood Insurance Program, the ratio of the amount of claims paid under the Program to the amount of premiums paid under the Program.”

removed “(E) State—The term State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa.”

added Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 4013) is amended by adding at the end the following new subsection:

added “(e) Refund of unearned premiums for policies canceled because of replacement with private flood insurance

added “(1) Required refund—Subject to subsection (c), if at any time an insured under a policy for flood insurance coverage for a property that is made available under this title cancels such policy because other duplicate flood insurance coverage for the same property has been obtained from a source other than the National Flood Insurance Program under this title, the Administrator shall refund to the former insured a portion of the premiums paid for the coverage made available under this title, as determined consistent with industry practice according to the portion of the term of the policy that such coverage was in effect, but only if a copy of declarations page of the new policy obtained from a source other than the program under this title is provided to the Administrator.

added “(2) Effective date of cancellation—For purposes of this subsection, a cancellation of a policy for coverage made available under the national flood insurance program under this title, for the reason specified in paragraph (1), shall be effective—

added “(A) on the effective date of the new policy obtained from a source other than the program under this title, if the request for such cancellation was received by the Administrator before the expiration of the 6-month period beginning on the effective date of the new policy; or

added “(B) on the date of the receipt by the Administrator of the request for cancellation, if the request for such cancellation was received by the Administrator after the expiration of the 6-month period beginning on the effective date of the new policy.

added “(3) Prohibition of refunds for properties receiving increased cost of compliance claims—No premium amounts paid for coverage made available under this title may be refunded pursuant to this subsection—

added “(A) with respect to coverage for any property for which measures have been implemented using amounts received pursuant to a claim under increased cost of compliance coverage made available pursuant to section 1304(b); or

added “(B) if a claim has been paid or is pending under the policy term for which the refund is sought.”

“(iv) both the risk identified by the applicable flood insurance rate maps and by other risk assessment data and tools, including risk assessment models and scores from appropriate sources; and”

“(d) Multiple-Loss properties

“(1) Definitions—As used in this title:

“(A) Multiple-loss property—The term “multiple-loss property” means any property that is a repetitive-loss property, a severe repetitive-loss property, or an extreme repetitive-loss property.

changed “(B) Repetitive-loss property—The Qualified claims payment—The term “repetitive-loss property” “qualified claims payment” means a structure that has incurred flood damage for which two or more separate claims payments payment of any amount have been made under flood insurance coverage under this title.title in connection with loss resulting from a flood event that occurred after the date of the enactment of the 21st Century Flood Reform Act, but not including any claim that occurred before a structure was made compliant with State and local floodplain management requirements.

changed “(C) Severe repetitive-loss Repetitive-loss property—The term “severe repetitive-loss “repetitive-loss property” means a structure that has incurred flood damage for which—which two or more separate claims payments of any amount have been made under flood insurance coverage under this title.

added “(D) Severe repetitive-loss property—The term “severe repetitive-loss property” means a structure that has incurred flood damage for which—

“(i) 4 or more separate claims payments have been made under flood insurance coverage under this title, with the amount of each such claim exceeding $5,000, and with the cumulative amount of such claims payments exceeding $20,000; or

“(ii) at least 2 separate claims payments have been made under flood insurance coverage under this title, with the cumulative amount of such claims payments exceeding the value of the structure.

added “(E) Extreme repetitive-loss property—The term “extreme repetitive-loss property” means a structure that has incurred flood damage for which at least 2 separate claims have been made under flood insurance coverage under this title, with the cumulative amount of such claims payments exceeding 150 percent of the maximum coverage amount available for the structure.

removed “(D) Extreme repetitive-loss property—The term “extreme repetitive-loss property” means a structure that has incurred flood damage for which at least 2 separate claims have been made under flood insurance coverage under this title, with the cumulative amount of such claims payments exceeding 150 percent of the maximum coverage amount available for the structure.

“(2) Treatment of claims before compliance with State and local requirements—The Administrator shall not consider claims that occurred before a structure was made compliant with State and local floodplain management requirements for purposes of determining a structure’s status as a multiple-loss property.”

changed “(o) “(p) Premium adjustment To to reflect current flood risk

changed “(1) In general—Except as provided in paragraph (2), the Administrator shall rate a multiple-loss property for which two or more qualified claims payments have been made and that is charged a risk premium rate estimated under section 1307(a)(1) (42 U.S.C. 4014(a)(1)) based on the current risk of flood reflected in the flood insurance rate map in effect at the time of rating.

changed “(2) Adjustment for existing policies—For policies—Notwithstanding subsection (e) of this section, for policies for flood insurance under this title in force on the date of the enactment of this Act for properties described in paragraph (1)—

changed “(A) notwithstanding subsection (e) of this section, for any property for which two qualified claims payments have been made, the Administrator shall increase risk premium rates by not less than 15 10 percent each year until such rates comply with paragraph (1) of this subsection; and

changed “(B) for any rate increases required property for which three or more qualified claims payments have been made, the Administrator shall increase risk premium rates by 15 percent each year until such rates comply with paragraph (1) shall commence following a claim payment for flood loss under coverage made available this title that occurred after the date of enactment of this Act.”subsection.”

“(B) in connection with a multiple-loss property.”

“(C) any extreme repetitive-loss property;”

changed “(F) any repetitive-loss property that has received a claim payment for flood loss under coverage made available under this title that occurred after the date of enactment of this Act; which two or more qualified claims payments have been made; and”

changed “(5) the chargeable risk premium rates for flood insurance under this title for any properties described in subparagraph (F) of section 1307(a)(2) shall be increased by not less than 15 percent each year, until the average risk premium rate for such properties is equal to the average of the risk premium rates for properties estimated under section 1307(a)(1).”increased—

added “(A) for any property for which two qualified claims payments have been made, by 10 percent each year, until the average risk premium rate for such property is equal to the average of the risk premium rates for properties estimated under section 1307(a)(1); and

added “(B) for any property for which three or more qualified claims payments have been made, by 15 percent each year, until the average risk premium rate for such property is equal to the average of the risk premium rates for properties estimated under section 1307(a)(1).”

“(3) Certain multiple-loss properties—Notwithstanding paragraph (1) or (2), the minimum annual deductible for damage to any severe repetitive-loss property or extreme repetitive-loss property shall be not less than $5,000.”

“1304A. Availability of insurance for multiple-loss properties

“(a) Date and information identifying current flood risk—The Administrator may provide flood insurance coverage under this title for a multiple-loss property only if the owner of the property submits to the Administrator such data and information necessary to determine such property’s current risk of flood, as determined by the Administrator, at the time of application for or renewal of such coverage.

“(b) Refusal To Mitigate

“(1) In general—Except as provided pursuant to paragraph (2), the Administrator may not make flood insurance coverage available under this title for any extreme repetitive-loss property for which a claim payment for flood loss was made under coverage made available under this title that occurred after the date of enactment of the 21st Century Flood Reform Act if the property owner refuses an offer of mitigation for the property under section 1366(a)(2) (42 U.S.C. 4104c(a)(2)).

“(2) Exceptions; appeals—The Director shall develop guidance to provide appropriate exceptions to the prohibition under paragraph (1) and to allow for appeals to such prohibition.”

“(i) Rates for properties newly mapped into areas with special flood hazards

“(1) In general—Except as provided in paragraph (2) and notwithstanding”

“(2) Inapplicability to multiple-loss properties—Paragraph (1) shall not apply to multiple-loss properties.”

changed “(2) Multiple-loss properties—Pursuant to paragraph (1), the Administrator shall clearly communicate to all policyholders for multiple-loss properties the effect on before the premium rates charged for such a property effectiveness of filing any further such new or renewed coverage and after each qualified claims under a flood insurance policy with respect to that property.”payment for the property—

added “(A) the availability of flood mitigation assistance under section 1366; and

added “(B) the effect on the premium rates charged for such a property of filing any further claims under a flood insurance policy with respect to that property.”

“(2) to property owners, in coordination with the State and community, in the form of direct grants under this section for carrying out mitigation activities that reduce flood damage to extreme repetitive-loss properties.”

“(3) Repetitive-loss property—In the case of mitigation activities to repetitive-loss properties, in an amount up to 100 percent of all eligible costs.”

“(h) Alignment with increased cost of compliance—Notwithstanding any provision of law, any funds appropriated for assistance under this title may be transferred to the National Flood Insurance Fund established under section 1310 (42 U.S.C. 4017) for the payment of claims to enable the Administrator to deliver grants under subsection (a)(2) of this section to align with the delivery of coverage for increased cost of compliance for extreme repetitive-loss properties.

“(i) Funding

“(1) Authorization of appropriations—Notwithstanding any other provision of law, assistance provided under this section shall be funded by—

“(A) $225,000,000 in each fiscal year, subject to offsetting collections, through risk premium rates for flood insurance coverage under this title, and shall be available subject to section 1310(f);

“(B) any penalties collected under section 102(f) the Flood Disaster Protect Act of 1973 (42 U.S.C. 4012a(f); and

“(C) any amounts recaptured under subsection (e) of this section.

“(2) Availability—Amounts appropriated pursuant to this subsection for any fiscal year may remain available for obligation until expended.”

Section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C. 4012) is amended by adding at the end the following new subsection:

changed “(e) Prohibition of coverage for properties with excessive lifetime claims—After the expiration of the 18-month period beginning on the date of the enactment of this subsection, the claims—The Administrator may not make available any new or renewed coverage for flood insurance under this title for any multiple-loss property for which the aggregate amount in claims payments that have been made after the expiration of such the 18-month period beginning on the date of the enactment of this subsection under flood insurance coverage under this title exceeds twice three times the amount of the replacement value of the structure.”

added Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 4081), as amended by the preceding provisions of this Act, is further amended by adding at the end the following subsection:

added “(g) Write Your Own allowance and program savings

added “(1) Allowance rate

added “(A) Limitation—The allowance paid to companies participating in the Write Your Own Program (as such term is defined in section 1370 (42 U.S.C. 4004)) with respect to a policy for flood insurance coverage made available under this title shall not be greater than 27.9 percent of the chargeable premium for such coverage.

added “(B) Inapplicability—Subparagraph (A) shall not apply to actual and necessary costs related to section 1312(a) (42 U.S.C. 4019(a)), or to payments deemed necessary by the Administrator.

added “(C) Implementation—The limitation in subparagraph (A) shall be imposed by equal reductions over the 3-year period beginning on the date of the enactment of this subsection.

added “(2) Program savings

added “(A) Implementation—The Administrator, within three years of the date of the enactment of this Act, shall reduce the costs and unnecessary burdens for the companies participating in the Write Your Own program by at least half of the amount by which the limitation under paragraph (1)(A) reduced costs compared to the costs as of the date of the enactment of this subsection.

added “(B) Consideration of savings—In meeting the requirement of subparagraph (A), the Administrator shall consider savings including—

added “(i) indirect payments by the Administrator of premium;

added “(ii) eliminating unnecessary communications requirements;

added “(iii) reducing the frequency of National Flood Insurance Program changes;

added “(iv) simplifying the flood rating system; and

added “(v) other ways of streamlining the Program to reduce costs while maintaining customer service and distribution.”

removed “(f) Reducing future risks of the National Flood Insurance Fund

removed “(1) Prohibition of new coverage for high-risk properties—Except as provided in subsection (g) and notwithstanding any other provision of this title, in carrying out the fiduciary responsibility to the National Flood Insurance Program under section 1309(e) (42 U.S.C. 4016(e)) and to reduce future risks to the National Flood Insurance Fund, on or after January 1, 2021, the Administrator may not make available flood insurance coverage under this title as follows:

removed “(A) New structures added to flood hazard zones—Any new coverage for any property for which new construction is commenced on or after such date and that, upon completion of such construction, is located in an area having special flood hazards.

removed “(B) Structures with high-value replacement costs—Any new or renewed coverage for any residential property having 4 or fewer residences and a replacement value of the structure, at the time, exclusive of the value of the real estate on which the structure is located, that is equal to or exceeds the amount that is equal to $1,000,000 multiplied by the number of dwelling units in the structure (as such amount is adjusted pursuant to clause (i)), subject to the following provisions:

removed “(i) Adjustment of amounts—The dollar amount in the matter of this subparagraph that precedes this clause (as it may have been previously adjusted) shall be adjusted for inflation by the Administrator upon the expiration of the 5-year period beginning upon the enactment of this subsection and upon the expiration of each successive 5-year period thereafter, in accordance with an inflationary index selected by the Administrator.

removed “(ii) Valuation—The Administrator shall determine the replacement value of a property for purposes of this subparagraph using such valuation methods or indicia as the Administrator determines are reasonably accurate, consistent, reliable, and available for such purposes.

removed “(2) Actuarial structures with hidden risks—For any property with risk premium rates estimated under section 1307(a)(1), on or after January 1, 2021, the Administrator shall charge risk premium rates based on the current risk of flood reflected in the flood insurance rate map or comparable risk rating metric in effect at the time a policy is newly issued, unless the newly issued policy covers a property with continuous flood insurance coverage under this title, or upon the renewal of a policy. For all such policy renewals, the Administrator shall increase the risk premium rate in accordance with section 1308(e)(2) until the risk premium rate is equal to the risk of flood reflected in the flood insurance rate map or comparable risk rating metric in effect at the time of renewal.

removed “(3) Implementation—The Administrator may implement this subsection without rulemaking, except that any such implementation shall include advance publication of notice in the Federal Register or advance notice by another comparable method, such as posting on an official website of the Administrator.

removed “(g) Availability of otherwise prohibited flood insurance coverage where private market coverage is unavailable

removed “(1) In general—The Administrator may make available flood insurance coverage under this Act for a property described in subparagraph (A) or (B) of subsection (f)(1), notwithstanding subsection (f) of this section, if, within the 30-day period beginning upon submission to the Clearinghouse established pursuant to section 1350 of an application for flood insurance coverage for such property, the Clearinghouse does not provide the applicant with one or more bona fide offers for private flood insurance coverage for such property.

removed “(2) Surcharge—Any flood insurance coverage made available for a property pursuant to this subsection shall be made available at chargeable premium rates otherwise determined under this title for such property, except that the Administrator shall impose and collect a surcharge for such coverage in an amount equal to 10 percent of such chargeable premium rate, which shall be deposited into the National Flood Insurance Fund established under section 1310.”

removed “1350. Flood insurance clearinghouse

removed “(a) Establishment and operations—Not later than January 1, 2021, the Administrator shall establish and commence operations of a Flood Insurance Clearinghouse (in this section referred to as the “Clearinghouse)” in accordance with the report, plan, and guidelines required under section 506(b)(2) of the 21st Century Flood Reform Act.

removed “(b) Purpose—The Clearinghouse shall be established for the purpose of receiving applications from prospective insureds for flood insurance coverage for properties for which such coverage is prohibited under section 1305(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 4012(f)) and for providing to such applicants offers for such coverage from insurers providing private flood insurance (as such term is defined for purposes of section 102(c) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(c)) and, subject to the limitations in this section, for coverage made available under the National Flood Insurance Program.

removed “(c) Functions—The Clearinghouse shall have as its functions—

removed “(1) to provide for prospective insureds to submit to the Clearinghouse applications for flood insurance coverage for properties described in subsection (b);

removed “(2) to determine, with respect to a property identified in an application, the chargeable premium rate for coverage made available under this title;

removed “(3) with respect to a property identified in an application, to solicit offers of coverage under private flood insurance from providers of such insurance during a reasonable period of time after such application, which offers shall provide terms and conditions of insurance, including deductibles and exclusions, that are sufficient to meet the requirements of section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a); and

removed “(4) to provide to the applicant for insurance—

removed “(A) any bona fide offers for private insurance coverage made pursuant to paragraph (3) for the property identified in the application;

removed “(B) in the case only of a property for which such coverage is authorized pursuant to subsection (g) of section 1305, a bona fide offer for flood insurance coverage made available under this title for the property; and

removed “(C) information to help the applicant for insurance understand such offers and the limitation under section 1305(g);

removed “(d) Management and operation—The Clearinghouse shall be managed and operated by a third party pursuant to a contract with the Administrator.

removed “(e) Agreements—The Administrator may enter into such agreements with insurers providing private flood insurance coverage as may be necessary for the Clearinghouse to carry out its functions.

removed “(f) Fees—The Clearinghouse may charge a fee to applicants to cover administrative costs of the Clearinghouse.

removed “(g) Reports—The Clearinghouse shall report periodically, as determined by the Administrator, to the Administrator regarding the operations and activities of the Clearinghouse.”

removed Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C. 4081), as amended by the preceding provisions of this Act, is further amended by adding at the end the following subsection:

removed “(g) Write Your Own allowance and program savings

removed “(1) Allowance rate

removed “(A) Limitation—The allowance paid to companies participating in the Write Your Own Program (as such term is defined in section 1370 (42 U.S.C. 4004)) with respect to a policy for flood insurance coverage made available under this title shall not be greater than 27.9 percent of the chargeable premium for such coverage.

removed “(B) Inapplicability—Subparagraph (A) shall not apply to actual and necessary costs related to section 1312(a) (42 U.S.C, 4019(a)), or to payments deemed necessary by the Administrator.

removed “(C) Implementation—The limitation in subparagraph (A) shall be imposed by equal reductions over the 3-year period beginning on the date of the enactment of this subsection.

removed “(2) Program savings

removed “(A) Implementation—The Administrator, within three years of the date of the enactment of this Act, shall reduce the costs and unnecessary burdens for the companies participating in the Write Your Own program by at least half of the amount by which the limitation under paragraph (1)(A) reduced costs compared to the costs as of the date of the enactment of this subsection.

removed “(B) Consideration of savings—In meeting the requirement of subparagraph (A), the Administrator shall consider savings including—

removed “(i) indirect payments by the Administrator of premium;

removed “(ii) eliminating unnecessary communications requirements;

removed “(iii) reducing the frequency of National Flood Insurance Program changes;

removed “(iv) simplifying the flood rating system; and

removed “(v) other ways of streamlining the Program to reduce costs while maintaining customer service and distribution.”

added Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a), as amended by the preceding provisions of this Act, is further amended—

added “(i) Satisfaction of mandatory purchase requirement in States allowing all-perils policies

added “(1) Waivers—Subsections (a) and (b) of this section shall not apply with respect to residential properties in any State that allows any property insurance coverage that covers “all-perils” except specifically excluded perils and that includes coverage for flood perils in an amount at least equal to the outstanding principal balance of the loan or the maximum limit of flood insurance coverage made available under this title with respect to such type of residential property, whichever is less.

added “(2) Definitions, procedures, standards—The Administrator may establish such definitions, procedures, and standards as the Administrator considers necessary for making determinations under paragraph (1).”

changed Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) 4012a), as amended by the preceding provisions of this Act, is further amended—

added “(j) Flood insurance purchase requirements—Notwithstanding any other provision of law, a State or local government or private lender may require the purchase of flood insurance coverage for a structure that is located outside of an area having special flood hazards.”

removed “(i) Satisfaction of mandatory purchase requirement in States allowing all-perils policies

removed “(1) Waivers—Section 102 shall not apply with respect to residential properties in any State that allows any property insurance coverage that covers “all-perils” except specifically excluded perils that includes coverage for flood perils in an amount at least equal to the outstanding principal balance of the loan or the maximum limit of flood insurance coverage made available under this title with respect to such type of residential property, whichever is less.

removed “(2) Definitions, procedures, standards—The Administrator may establish such definitions, procedures, and standards as the Administrator considers necessary for making determinations under paragraph (1).”

added “1350. Rule of construction

added “A policyholder of a policy for flood insurance coverage made available under this title must exhaust all administrative remedies, including submission of disputed claims to appeal under any appeal process made available by the Administrator, prior to commencing legal action on any disputed claim under such a policy.”

removed Section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a), as amended by the preceding provisions of this Act, is further amended—

added “(c) Deadline for approval of claims

added “(1) In general—The Administrator shall provide that, in the case of any claim for damage to or loss of property under flood insurance coverage made available under this title, an initial determination regarding approval of a claim for payment or disapproval of the claim be made, and notification of such determination be provided to the insured making such claim, not later than the expiration of the 120-day period (as such period may be extended pursuant to paragraph (2)) beginning upon the day on which the policyholder submits a signed proof of loss detailing the damage and amount of the loss. Payment of approved claims shall be made as soon as possible after such approval.

added “(2) Extension of deadline—The Administrator shall provide that the period referred to in paragraph (1) may be extended by a single additional period of 15 days in cases where extraordinary circumstances are demonstrated. The Administrator shall, by regulation, establish criteria for demonstrating such extraordinary circumstances and for determining to which claims such extraordinary circumstances apply.”

removed “(j) Flood insurance purchase requirements—Notwithstanding any other provision of law, a State or local government or private lender may require the purchase of flood insurance coverage for a structure that is located outside of an area having special flood hazards.”

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

added “(e) Risk transfer

added “(1) Authority—The Administrator”

added “(2) Required risk transfer coverage

added “(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—

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

added “(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).

added “(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.

added “(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—

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

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

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

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

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

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

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

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

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

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

added “(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.”