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Title II — Mitigation and mapping

S. 2187 · 116th Congress · Jul 18, 2019 · Lineage

II Mitigation and mapping

Sec. 201 Mitigation for high-risk properties

(a)
In general— Section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133) is amended by adding at the end the following:

“(n) Flood mitigation activities—The President shall set aside from the Disaster Relief Fund an amount equal to 10 percent of the average amount appropriated to the Fund during the preceding 10 fiscal years to provide assistance for mitigation activities under section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) for—

“(1) severe repetitive loss structures; and

“(2) properties insured under the national flood insurance program with the largest increase in the actuarial risk for the property compared to the actuarial risk for the previous fiscal year as a result of Risk Rating 2.0, as in effect on October 1, 2020.”

(b)
Applicability— The amendment made to section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133) by subsection (a) shall apply to funds appropriated on or after the date of enactment of this Act.
(c)
Technical and conforming amendment— Effective on October 5, 2023, section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133) is amended by redesignating subsection (n), as added by subsection (a) of this section, as subsection (m).

Sec. 202 Increased cost of compliance coverage

Section 1304(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended—
(1)
in paragraph (4), by redesignating subparagraphs (A) through (D) as clauses (i) through (iv), respectively, and adjusting the margins accordingly;
(2)
by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and adjusting the margins accordingly;
(3)
in subparagraph (C), as so redesignated, by striking the period at the end and inserting a semicolon;
(4)
by redesignating paragraph (4) as subparagraph (F), and adjusting the margins accordingly;
(5)
by inserting after subparagraph (C), as so redesignated, the following:

“(D) properties identified by the Administrator as priorities for mitigation activities before the occurrence of damage to or loss of property which is covered by flood insurance;

“(E) properties outside an area having special flood hazards if the communities in which the properties are located have, under section 1361, established land use and control measures for the areas in which the properties are located; and”

(6)
by inserting before “The national flood insurance program” the following: “(1) In general.—”;
(7)
in the flush text following subparagraph (F)(iv), by striking “The Administrator” and inserting the following:

“(2) Premium—The Administrator”

(8)
by adding at the end the following:

“(3) Amount of coverage—Each policy for flood insurance coverage made available under this title shall provide coverage under this subsection having an aggregate liability for any single property of $60,000.

“(4) Eligible mitigation activities

“(A) In general—Eligible mitigation methods the cost of which is covered by coverage provided under this subsection shall include—

“(i) alternative methods of mitigation identified in the guidelines issued pursuant to section 1361(d);

“(ii) pre-disaster mitigation projects for eligible structures; and

“(iii) costs associated with the purchase, clearing, and stabilization of property that is part of an acquisition or relocation project that complies with subparagraph (B).

“(B) Acquisition and relocation project eligibility and requirements

“(i) In general—An acquisition or relocation project shall be eligible to receive assistance pursuant to subparagraph (A)(iii) only if—

“(I) any property acquired, accepted, or from which a structure will be removed shall be dedicated and maintained in perpetuity for a use that is compatible with open space, recreational, or wetland and natural floodplain management practices; and

“(II) any new structure erected on such property will be—

“(aa) a public facility that is open on all sides and functionally related to a designated open space;

“(bb) a restroom; or

“(cc) a structure that the Administrator approves in writing before the commencement of the construction of the structure.

“(ii) Further assistance—If an acquisition or relocation project is assisted pursuant to subparagraph (A)(iii)—

“(I) no person may apply to a Federal entity for disaster assistance with regard to any property acquired, accepted, or from which a structure was removed as part of such acquisition or relocation project; and

“(II) no Federal entity may provide disaster assistance for such property.

“(iii) Requirement to maintain flood insurance coverage

“(I) In general—Notwithstanding any other provision of law, any assisted structure shall, at all times, maintain insurance against flood damage, in accordance with Federal law, for the life of such structure.

“(II) Transfer of property

“(aa) Duty to notify—If any part of a property on which an assisted structure is located is transferred, the transferor shall, not later than the date on which such transfer occurs, notify the transferee in writing, including in all documents evidencing the transfer of ownership of the property, that such transferee is required to—

“(AA) obtain flood insurance in accordance with applicable Federal law with respect to such assisted structure, if such structure is not so insured on the date on which the structure is transferred; and

“(BB) maintain flood insurance in accordance with applicable Federal law with respect to such structure.

“(bb) Failure to notify—If a transferor fails to make a notification in accordance with item (aa) and such assisted structure is damaged by a flood disaster, the transferor shall pay the Federal Government an amount equal to the amount of any disaster relief provided by the Federal Government with respect to such assisted structure.

“(III) Assisted structure defined—For the purposes of this clause, the term assisted structure means a structure on property that is part of an acquisition or relocation project assisted pursuant to subparagraph (A) that was, as part of such acquisition or relocation project—

“(aa) altered;

“(bb) improved;

“(cc) replaced;

“(dd) repaired; or

“(ee) restored.

“(C) Eligible structure defined—For purposes of this paragraph, the term eligible structure means any structure that—

“(i) was constructed in compliance with the Flood Insurance Rate Map and local building and zoning codes in effect on the date of construction of the structure; and

“(ii) has not previously been altered, improved, replaced, or repaired using assistance provided under this subsection.

“(5) Treatment of coverage limits—Any amount of coverage provided for a property pursuant to this subsection shall not be considered or counted for purposes of any limitation on coverage applicable to such property under section 1306(b) and any claim on such coverage shall not be considered a claim for purposes of section 1307(h) or subsection (a)(3) or (h)(3) of section 1366.

“(6) Implementation—Notwithstanding any other provision of law, the Administrator may implement this subsection by adopting 1 or more standard endorsements to the Standard Flood Insurance Policy by publication of such standards in the Federal Register, or by comparable means.”

Sec. 203 Flood mitigation assistance grants

(a)
Flood Mitigation Assistance Grant Program priority— Section 1366 of the National Flood Insurance Act (42 U.S.C. 4104c) is amended—
(1)
in subsection (a)—
(A)
by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively, and adjusting the margins accordingly;
(B)
in the second sentence of the matter preceding subparagraph (A), as so redesignated, by striking “assistance shall be” and inserting the following:

“(1) be”

(C)
in paragraph (1)(C), as so redesignated, by striking the period at the end and inserting “; and”; and
(D)
by adding at the end the following:

“(2) in addition to the requirement under paragraph (1)(C), give priority to properties—

“(A) that are repetitive loss structures;

“(B) with respect to which the Administrator makes a determination that the premium rates with respect to a policy for flood insurance coverage under this title—

“(i) are unaffordable; or

“(ii) will soon become unaffordable as a result of a risk adjustment under Risk Rating 2.0, as in effect on the date of that determination; and

“(C) for which aggregate losses exceed the replacement value of the properties.”

(2)
in subsection (h), by adding at the end the following:

“(4) Unaffordable—The term unaffordable means, with respect to the premium rates for a policy for flood insurance coverage under this title, that, in a year, those rates are in an such an amount that the housing expenses (as defined in section 1326(b)(1)) of the household that is the subject of the policy are, for that year, more than 30 percent of the adjusted gross income (as defined in section 1326(b)(1)) of the household for that year.”

(b)
Additional mitigation assistance—
(1)
Appropriations from general fund of Treasury— For each of the first 5 full fiscal years after the date of enactment of this Act, there is authorized to be appropriated $1,000,000,000 to the National Flood Mitigation Fund to provide mitigation assistance under this subsection.
(2)
Rule of construction— The authorization of appropriations under subparagraph (A) shall not be construed to authorize the transfer or crediting to the National Flood Mitigation Fund of any amounts from the National Flood Insurance Fund.

Sec. 204 Urban mitigation opportunities

(a)
Mitigation strategies— Section 1361(d)(1) of the National Flood Insurance Act of 1968 (42 U.S.C. 4102(d)(1)) is amended—
(1)
in subparagraph (A), by striking “and” at the end;
(2)
in subparagraph (B), by striking “and” at the end; and
(3)
by inserting after subparagraph (B) the following:

“(C) with respect to buildings in dense urban environments, methods that can be deployed on a block or neighborhood scale; and

“(D) elevation of mechanical systems; and”

(b)
Mitigation credit— Section 1308(k) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(k)) is amended—
(1)
by striking “shall take into account” and inserting

“(1) take into account”

(2)
in paragraph (1), as so designated, by striking the period at the end and inserting “; and”; and
(3)
by adding at the end the following:

“(2) offer a reduction of the risk premium rate charged to a policyholder in an amount that is not less than 10 percent of that rate if the policyholder implements any mitigation method described in paragraph (1).”

Sec. 205 Community Rating System Regional Coordinator

Section 1315(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4022(b)) is amended by adding at the end the following:

“(5) Regional coordinator

“(A) In general—The Administrator shall appoint a regional coordinator in each region served by a Regional Office (as defined in section 501 of the Homeland Security Act of 2002 (6 U.S.C. 311)) to provide technical assistance to small communities to enable those communities to effectively participate in and benefit from the community rating system program.

“(B) Authorization of appropriations—There are authorized to be appropriated such sums as may be necessary to carry out this paragraph, which shall remain available until expended.”

Sec. 206 Mitigation loan program

(a)
Definition— In this section, the term mitigation measure means, with respect to a structure, a measure undertaken to reduce the risk of flood damage to the structure.
(b)
Establishment— The Administrator may establish a pilot program through which the Administrator may provide low-interest loans to policyholders under the National Flood Insurance Program for the purposes described in subsection (c).
(c)
Purposes of loans— A loan provided to a policyholder under the pilot program established under subsection (b) shall be used to undertake mitigation measures with respect to the insured property that cost less than the cost of the estimated amount of premiums that would be paid with respect to the property during the 50-year period beginning in the year in which the loan is made and if those mitigation measures were not undertaken.
(d)
Sale of property— If a property with respect to which a loan has been made under this section is sold, upon that sale, the outstanding loan balance shall—
(1)
be repaid using the proceeds of the sale; or
(2)
carry over to the purchaser of the property if the purchaser so consents before the execution of the sale.

Sec. 207 Revolving loan funds

(a)
In general— Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.), as amended by section 103, is amended by adding at the end the following:

“1327. State revolving loan funds for flood mitigation

“(a) Definitions—In this section:

“(1) Community rating system—The term Community Rating System means the community rating system program carried out under section 1315(b).

“(2) Eligible state—The term eligible State means a State, the District of Columbia, and the Commonwealth of Puerto Rico.

“(3) Insular area—The term insular area means—

“(A) Guam;

“(B) American Samoa;

“(C) the Commonwealth of the Northern Mariana Islands;

“(D) the Federated States of Micronesia;

“(E) the Republic of the Marshall Islands;

“(F) the Republic of Palau; and

“(G) the United States Virgin Islands.

“(4) Intended use plan—The term intended use plan means a plan prepared under subsection (d)(1).

“(5) Low-income geographic area—The term low-income geographic area means an area described in paragraph (1) or (2) of section 301(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3161(a)).

“(6) Low-income homeowner—The term low-income homeowner means the owner of a primary residence, the household income of which in a taxable year is not more than 80 percent of the median income for the area in which the residence is located.

“(7) Participating State—The term participating State means an eligible State that—

“(A) has entered into an agreement under subsection (b)(1); and

“(B) agrees to comply with the requirements of this section.

“(8) Pre-FIRM building—The term pre-FIRM building means a building for which construction or substantial improvement occurred before the effective date of the initial Flood Insurance Rate Map published by the Administrator under section 1360 for the area in which the building is located.

“(9) Repetitive loss structure—The term repetitive loss structure has the meaning given the term in section 1370(a).

“(10) Severe repetitive loss property—The term severe repetitive loss property has the meaning given the term in section 1307(h).

“(11) State loan fund—The term State loan fund means a flood mitigation assistance revolving loan fund established by an eligible State under this section.

“(12) Tribal government—The term tribal government means the recognized government of an Indian tribe, or the governing body of an Alaska Native regional or village corporation, that has been determined eligible to receive services from the Bureau of Indian Affairs.

“(b) General authority

“(1) In general—The Administrator may enter into an agreement with an eligible State to provide a capitalization grant for the eligible State to establish a revolving fund that will provide funding assistance to help homeowners, businesses, nonprofit organizations, and communities reduce flood risk in order to decrease—

“(A) the loss of life and property;

“(B) the cost of flood insurance; and

“(C) Federal disaster payments.

“(2) Timing of deposit and agreements for distribution of funds

“(A) In general—Not later than the last day of the fiscal year following the fiscal year in which a capitalization grant is made to a participating State under paragraph (1), the participating State shall—

“(i) deposit the grant in the State loan fund of the State; and

“(ii) enter into 1 or more binding agreements that provide for the State to distribute the grant funds for purposes authorized under subsection (c) such that—

“(I) in the case of the initial grant made to a State under this section, not less than 75 percent of the amount of the grant shall be distributed before the end of the 2-year period beginning on the date on which the funds are deposited in the State loan fund of the State; and

“(II) in the case of any subsequent grant made to a State under this section, not less than 90 percent of the amount of the grant shall be distributed before the end of the 1-year period beginning on the date on which the funds are deposited in the State loan fund of the State.

“(B) Noncompliance—Except as provided in subparagraph (C), if a participating State does not comply with subparagraph (A) with respect to a grant, the Administrator shall reallocate the grant in accordance with paragraph (3)(B).

“(C) Exception—The Administrator may not reallocate any funds under subparagraph (B) to a participating State that violated subparagraph (A) with respect to a grant made during the same fiscal year in which the funds to be reallocated were originally made available.

“(3) Allocation

“(A) In general—The Administrator shall allocate amounts made available to carry out this section to participating States—

“(i) for the participating States to deposit in the State loan funds established by the participating States; and

“(ii) except as provided in paragraph (6), in accordance with the requirements described in subparagraph (B).

“(B) Requirements—The requirements described in this subparagraph are as follows:

“(i) Fifty percent of the total amount made available under subparagraph (A) shall be allocated so that each participating State receives the percentage amount that is obtained by dividing the number of properties that were insured under the national flood insurance program in that State in the fiscal year preceding the fiscal year in which the amount is allocated by the total number of properties that were insured under the national flood insurance program in the fiscal year preceding the fiscal year in which the amount is allocated.

“(ii) Fifty percent of the total amount made available under subparagraph (A) shall be allocated so that each participating State receives a percentage of funds that is equal to the product obtained under clause (iii)(IV) with respect to that participating State after following the procedures described in clause (iii).

“(iii) The procedures described in this clause are as follows:

“(I) Divide the total amount collected in premiums for properties insured under the national flood insurance program in each participating State during the previous fiscal year by the number of properties insured under the national flood insurance program in that State for that fiscal year.

“(II) Add together each quotient obtained under subclause (I).

“(III) For each participating State, divide the quotient obtained under subclause (I) with respect to that State by the sum obtained under subclause (II).

“(IV) For each participating State, multiply the amount that is 50 percent of the total amount made available under subparagraph (A) by the quotient obtained under subclause (III).

“(iv) Except as provided in paragraph (5), in a fiscal year—

“(I) a participating State may not receive more than 15 percent of the total amount that is made available under subparagraph (A) in that fiscal year; and

“(II) if a participating State, based on the requirements under clauses (i) through (iii), would, but for the limitation under subclause (I) of this clause, receive an amount that is greater than the amount that the State is authorized to receive under that subclause, the difference between the authorized amount and the amount otherwise due to the State under clauses (i) through (iii) shall be allocated to other participating States—

“(aa) that, in that fiscal year, have not received an amount under subparagraph (A) that is more than the authorized amount under subclause (I) of this clause; and

“(bb) by using the requirements under clauses (i) through (iii), except that a participating State may receive an allocation under this subclause only if the allocation does not result in the State receiving a total amount for the fiscal year under subparagraph (A) that is greater than the authorized amount under subclause (I).

“(4) No revolving fund required

“(A) In general—Notwithstanding any other provision of this section, and subject to subparagraph (B), a participating State that receives less than $4,000,000 under paragraph (3)(B) in a fiscal year may distribute the funds directly in the form of grants or technical assistance for a purpose described in subsection (c)(2), without regard to whether the State has established a State loan fund.

“(B) State matching—A participating State that exercises the authority under subparagraph (A) in a fiscal year shall provide matching funds from non-Federal sources in an amount that is equal to 25 percent of the amount that the State receives under paragraph (3)(B) in that fiscal year for purposes described in subparagraph (A).

“(5) Allocation of remaining funds—After allocating amounts made available to carry out this section for a fiscal year in accordance with paragraph (3), the Administrator shall allocate any remaining amounts made available for that fiscal year to participating States, using the procedures described in clauses (i) through (iii) of paragraph (3)(B).

“(6) Reservation of funds—The Administrator shall reserve not more than 1.5 percent of the amount made available to carry out this section in a fiscal year—

“(A) for administrative costs incurred in carrying out this section;

“(B) to provide technical assistance to recipients of grants under this section; and

“(C) to enter into grant agreements with tribal governments and insular areas, with the grant funds to be distributed—

“(i) according to criteria established by the Administrator; and

“(ii) for a purpose described in subsection (c)(2).

“(c) Use of funds

“(1) In general—Amounts deposited in a State loan fund, including repayments of loans made from the fund and interest earned on the amounts in the fund, shall be used—

“(A) consistent with paragraph (2) and subsection (g), to provide financial assistance for—

“(i) homeowners, businesses, and nonprofit organizations that are eligible to participate in the national flood insurance program; and

“(ii) any local government that participates in the national flood insurance program;

“(B) as a source of revenue and security for leveraged loans, the proceeds of which shall be deposited in the State loan fund; or

“(C) for the sale of bonds as security for payment of the principal and interest on revenue or general obligation bonds issued by the participating State to provide matching funds under subsection (f), if the proceeds from the sale of the bonds are deposited in the State loan fund.

“(2) Purposes—A recipient of financial assistance provided through amounts from a State loan fund—

“(A) shall use the amounts to reduce—

“(i) flood risk; or

“(ii) potential claims for losses covered under the national flood insurance program;

“(B) shall use the amounts in a cost-effective manner under requirements established by the State, which may require an applicant for financial assistance to submit any information that the State considers relevant or necessary before the date on which the applicant receives the assistance;

“(C) shall use the amounts for projects that—

“(i) meet design and construction standards established by the Administrator;

“(ii) are located in communities that—

“(I) participate in the national flood insurance program; and

“(II) have developed a State or community flood risk mitigation plan that has been approved by the Administrator under section 1366;

“(iii) address—

“(I) a repetitive loss structure or a severe repetitive loss property; or

“(II) flood risk in the 500-year floodplain, areas of residual flood risk, or other areas of potential flood risk, as identified by the Administrator; and

“(iv) address current risk and anticipate future risk, such as sea-level rise;

“(D) may use the amounts—

“(i) for projects relating to—

“(I) structural elevation;

“(II) floodproofing;

“(III) the relocation or removal of buildings from the 100-year floodplain or other areas of flood risk, including the acquisition of properties for such a purpose;

“(IV) environmental restoration activities that directly reduce flood risk;

“(V) any eligible activity described in subparagraphs (A) through (G) of section 1366(c)(3); or

“(VI) other activities determined appropriate by the Administrator;

“(ii) with respect to a project described in clause (i), only for expenditures directly related to a project described in that clause, including expenditures for planning, design, and associated pre-construction activities; and

“(iii) to acquire, for the purposes of permanent protection, land, buildings, or a conservation easement from a willing seller or grantor;

“(E) may not use the amounts—

“(i) to construct buildings or expand existing buildings, unless the activity is for the purpose of flood mitigation;

“(ii) to improve any structure, unless the recipient has obtained flood insurance coverage, which shall be maintained for the useful life of the structure, in an amount that is not less than the lesser of—

“(I) the eligible project costs with respect to the structure; and

“(II) the maximum insurable limit for the structure under the national flood insurance program coverage for the structure;

“(iii) to improve a residential property with an appraised value that is not less than 125 percent of the limitation on the maximum original principal obligation of a conventional mortgage that may be purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation in the area in which the property is located, as established under section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) and section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2));

“(iv) for the direct benefit of a homeowner if the annual household adjusted gross income of the homeowner during the previous fiscal year was not less than $200,000, as annually adjusted by the Administrator to reflect changes in the Consumer Price Index for All Urban Consumers, as published by the Bureau of Labor Statistics of the Department of Labor and rounded to the nearest $25; or

“(v) to acquire real property or an interest in real property unless the property is purchased from a willing seller; and

“(F) to the maximum extent practicable, shall, in using those amounts, give priority to projects that assist low-income homeowners and low-income geographical areas.

“(d) Intended use plans

“(1) In general—After providing the opportunity for public review and comment, each participating State shall annually prepare a plan that identifies, for the year following the date of issuance of the intended use plan, the intended uses of the amounts available in the State loan fund of the participating State.

“(2) Consultation during preparation—Each participating State, in preparing an intended use plan, shall ensure that the State agency with primary responsibility for floodplain management—

“(A) provides oversight with respect to the preparation of the intended use plan; and

“(B) consults with any other appropriate State agency, including agencies responsible for coastal and environmental management.

“(3) Contents—A participating State shall, in each intended use plan—

“(A) include—

“(i) an explanation of the mitigation and resiliency benefits the State intends to achieve, including by—

“(I) reducing future damage and loss associated with flooding;

“(II) reducing the number of severe repetitive loss properties and repetitive loss structures in the State;

“(III) decreasing the number of flood insurance claims in the State; and

“(IV) increasing the rating under the Community Rating System for communities in the State;

“(ii) information with respect to the availability of, and the application process for receiving, financial assistance from the State loan fund of the State;

“(iii) the criteria and methods established for the distribution of amounts from the State loan fund of the State;

“(iv) the amount of financial assistance that the State anticipates providing to—

“(I) local government projects; and

“(II) projects for homeowners, business, or nonprofit organizations;

“(v) the expected terms of the assistance provided under clause (iv); and

“(vi) a description of the financial status of the State loan fund and the short-term and long-term goals of the State loan fund; and

“(B) provide, to the maximum extent practicable, that priority for the use of amounts from the State loan fund shall be given to projects that—

“(i) address severe repetitive loss properties and repetitive loss structures;

“(ii) assist low-income homeowners and low-income geographic areas; and

“(iii) address flood risk for pre-FIRM buildings.

“(4) Publication—Each participating State shall publish and periodically update a list of all projects receiving funding from the State loan fund of the State, which shall include identification of—

“(A) the community in which the project is located;

“(B) the type and amount of assistance provided for each project; and

“(C) the expected funding schedule and date of completion of each project.

“(e) Fund management—Amounts in a State loan fund shall—

“(1) remain available for providing financial assistance under this section until distributed;

“(2) if the amounts are not required for immediate distribution or expenditure, be invested in interest-bearing obligations; and

“(3) except as provided in subsection (i), include only—

“(A) amounts received from capitalization grants made under this section;

“(B) repayments of loans made from the fund; and

“(C) interest earned on amounts in the fund.

“(f) Matching funds

“(1) Full grant—On or before the date on which a participating State receives a capitalization grant, the State shall deposit into the State loan fund of the State, in addition to the amount of the capitalization grant, an amount from non-Federal sources that is not less than 20 percent of the total amount of the capitalization grant.

“(2) Reduced grant—If, with respect to a capitalization grant, a participating State deposits in the State loan fund of the State an amount from non-Federal sources that is less than 20 percent of the total amount of the capitalization grant that the participating State would otherwise receive, the Administrator shall—

“(A) reduce the amount of the capitalization grant received by the State to the amount that is 5 times the amount so deposited; and

“(B) in accordance with subsection (b)(5), allocate the difference between the amount that the participating State would have received if the State had complied with paragraph (1) and the amount of the reduced grant that the participating State receives under subparagraph (A).

“(g) Types of assistance—Unless otherwise prohibited by State law, a participating State may use the amounts deposited into a State loan fund under this section only—

“(1) to make a loan, on the condition that—

“(A) the interest rate for the loan is not more than the market interest rate;

“(B) the recipient of the loan will begin making principal and interest payments on the loan not later than 1 year after the date on which the project for which the loan was made is completed;

“(C) the loan will be fully amortized not later than 20 years after the date on which the project for which the loan was made is completed, except that, in the case of a loan made for a project in a low-income geographic area or to a low-income homeowner, the State may provide a longer amortization period for the loan if that longer period—

“(i) ends on a date that is not later than 30 years after the date on which the project is completed; and

“(ii) is not longer than the expected design life of the project;

“(D) the recipient of the loan demonstrates, based on verified and documented information that, as of the date on which the loan is made, the recipient has a reasonable ability to repay the loan, according to the terms of the loan, except that this subparagraph may not be construed to authorize any reduction or limitation in efforts to comply with the requirements of subsection (c)(2)(F); and

“(E) payments of principal and interest with respect to the loan will be deposited into the State loan fund;

“(2) to buy or refinance the debt obligation of a local government at an interest rate that is not more than the market interest rate;

“(3) to guarantee, or purchase insurance for, a local obligation, the proceeds of which finance a project eligible for assistance under this section, if the guarantee or purchase, as applicable, would—

“(A) improve credit market access; or

“(B) reduce the interest rate with respect to the obligation;

“(4) as a source of revenue or as security for the payment of principal and interest on revenue or general obligation bonds issued by the State if the proceeds of the sale of the bonds will be deposited into the State loan fund; or

“(5) to earn interest on those amounts.

“(h) Assistance for low-Income homeowners and low-Income geographic areas

“(1) In general—Notwithstanding any other provision of this section, if a participating State uses amounts from a State loan fund to provide financial assistance under subsection (c) in a low-income geographic area or to a low-income homeowner, the State may provide additional subsidization to the recipient of the assistance, including forgiveness of the principal of a loan.

“(2) Limitation—For each fiscal year, the total amount of additional subsidization provided by a participating State under paragraph (1) may not exceed 30 percent of the amount of the capitalization grant allocated to the State for that fiscal year.

“(i) Administration of fund

“(1) In general—A participating State may combine the financial administration of a State loan fund with the financial administration of any other revolving fund established by the State if—

“(A) combining the administration of the funds would—

“(i) be convenient and avoid administrative costs; and

“(ii) not violate the law of the State; and

“(B) the Administrator determines that—

“(i) amounts obtained from a grant made under this section, amounts obtained from the repayment of a loan made from a State loan fund, and interest earned on amounts in a State loan fund will be—

“(I) accounted for separately from amounts from other revolving funds; and

“(II) used only for purposes authorized under this section; and

“(ii) after consulting with the appropriate State agencies, the authority to establish assistance priorities and carry out oversight and related activities, other than financial administration, with respect to flood assistance remains with the State agency with primary responsibility for floodplain management.

“(2) Administrative and technical costs

“(A) In general—For each fiscal year, a participating State may use the amount described in subparagraph (B) to—

“(i) pay the reasonable costs of administration of the programs under this section, including the recovery of reasonable costs incurred in establishing a State loan fund;

“(ii) provide appropriate oversight of projects authorized under this section; and

“(iii) provide technical assistance and outreach to recipients in the State of amounts under this section, including with respect to updating hazard mitigation plans and participating in the Community Rating System, in an amount that is not more than 4 percent of the funds made available to the State under this section.

“(B) Description—The amount described in this subparagraph is an amount equal to the sum of—

“(i) any fees collected by a participating State to recover the costs described in subparagraph (A)(i), regardless of the source; and

“(ii) the greatest of—

“(I) $400,000;

“(II) 0.2 percent of the value of the State loan fund of a State, as of the date on which the valuation is made; and

“(III) an amount equal to 7 percent of all grant awards made to a participating State for the State loan fund of the State under this section for the fiscal year.

“(3) Audit and report

“(A) Audit requirement—Not less frequently than biennially, each participating State shall conduct an audit of the State loan fund of the State.

“(B) Report—Each participating State shall submit to the Administrator a biennial report regarding the activities of the State under this section during the period covered by the report, including—

“(i) the result of any audit conducted by the State under subparagraph (A); and

“(ii) a review of the effectiveness of the State loan fund of the State with respect to—

“(I) the intended use plans of the State; and

“(II) meeting the objectives described in subsection (b)(1).

“(4) Oversight—In conducting oversight with respect to State loan funds established under this section, the Administrator—

“(A) shall—

“(i) periodically audit the funds in accordance with procedures established by the Comptroller General of the United States; and

“(ii) not less frequently than once every 4 years, review each State loan fund to determine the effectiveness of the fund in reducing flood risk; and

“(B) may, at any time—

“(i) make recommendations to a participating State with respect to the administration of the State loan fund of the State; or

“(ii) require specific changes with respect to a State loan fund in order to improve the effectiveness of the fund.

“(j) Liability protections—The Federal Emergency Management Agency shall not be liable for any claim based on the exercise or performance of, or the failure to exercise or perform, a discretionary function or duty by the Agency, or an employee of the Agency, in carrying out this section.

“(k) Regulations—The Administrator shall promulgate such guidance or regulations as may be necessary to carry out this section, including guidance or regulations that—

“(1) ensure that each participating State to which funds are allocated under this section uses the funds as efficiently as possible;

“(2) reduce, to the maximum extent practicable, waste, fraud, and abuse with respect to the implementation of this section; and

“(3) require any party that receives funds directly or indirectly under this section, including a participating State and a recipient of amounts from a State loan fund, to use procedures with respect to the management of the funds that conform to generally accepted accounting standards.

“(l) Authorization of appropriations—There are authorized to be appropriated such sums as may be necessary to carry out this section for fiscal years 2020 through 2029.”

(b)
Consideration of mitigation measures funded by state loan funds in flood insurance premium rates—
(1)
Estimated rates— Section 1307(a)(1)(A)(ii) of the National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(A)(ii)) is amended by striking “and similar measures” and inserting “similar measures, and any activities funded through amounts from a State loan fund established under section 1326”.
(2)
Chargeable rates— Section 1308(b)(1) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(b)(1)) is amended by striking “and similar measures” and inserting “similar measures, and any activities funded through amounts from a State loan fund established under section 1326”.

Sec. 208 Mapping modernization

(a)
Amendments to the Biggert-Waters Flood Insurance Reform Act of 2012— The Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4004 et seq.) is amended—
(1)
in section 100215 (42 U.S.C. 4101a)—
(A)
in subsection (b)(1)—
(i)
by redesignating subparagraphs (A) through (E) as subparagraphs (B) through (F), respectively;
(ii)
by inserting before subparagraph (B), as so redesignated, the following:

“(A) the Director of the United States Geological Survey;”

(iii)
in subparagraph (F), as so redesignated—
(I)
in the matter preceding clause (i), by striking “16” and inserting “17”;
(II)
in clause (xiii), by striking “and” at the end;
(III)
in clause (xiv), by striking the period at the end and inserting “; and”; and
(IV)
by adding at the end the following:

“(xv) an expert in the field of catastrophic risk modeling.”

(B)
by adding at the end the following:

“(m) Private or community flood maps

“(1) Standards and procedures—In addition to the other duties of the Council under this section, not later than 1 year after the date of enactment of this subsection, the Council shall develop and establish a set of standards, guidelines, and procedures for—

“(A) State and local governments, federally or State-recognized metropolitan planning organizations (commonly known as “MPOs”), federally or State-recognized councils of local governments, and federally or State-recognized rural transportation planning organizations to use in mapping flood risks and developing alternative maps to the flood insurance rate maps developed by the Administrator; and

“(B) certification, by the Administrator not later than 90 days after the date on which a map developed under subparagraph (A) is submitted to the Administrator, for use under the National Flood Insurance Program in the case of any area covered by a flood insurance rate map developed or approved by the Administrator that has not been updated or reissued during the preceding 3-year period.

“(2) Treatment—On and after the date on which the Administrator certifies a map under paragraph (1)(B), the map—

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

“(B) may not be revised, updated, or replaced in accordance with the standards, guidelines, and procedures established under paragraph (1) before the expiration of the 3-year period beginning on that date of certification.

“(3) Exemption from rulemaking—Until the date on which the Administrator promulgates regulations implementing paragraphs (1) and (2), the Administrator may adopt policies and procedures, notwithstanding any other provision of law, necessary to implement those paragraphs without regard to section 553 of title 5, United States Code, and without conducting regulatory analyses otherwise required by statute, regulation, or Executive order.”

(2)
in section 100216 (42 U.S.C. 4101b)—
(A)
in subsection (b)—
(i)
in paragraph (1)—
(I)
in subparagraph (A), by striking “to—” and all that follows through the end of clause (vi) and inserting “to all areas of the United States;”;
(II)
in subparagraph (B), by striking “and” at the end;
(III)
in subparagraph (C), by striking “accurate topography” and all that follows through the period at the end and inserting “current and best remote sensing technology;”; and
(IV)
by adding at the end the following:

“(D) when appropriate, partner with other Federal agencies and private entities in order to meet the objectives of the program; and

“(E) consult and coordinate with the Secretary of Defense, the Director of the United States Geological Survey, and the Administrator of the National Oceanic and Atmospheric Administration to obtain the most up-to-date maps and other information of those agencies, including information relating to topography, water flow, watershed characteristics, and any other issues that are relevant to identifying, reviewing, updating, maintaining, and publishing National Flood Insurance Program rate maps.”

(ii)
in paragraph (3)—
(I)
in subparagraph (A), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and adjusting the margins accordingly;
(II)
by redesignating subparagraphs (A) through (E) as clauses (i) through (v), respectively, and adjusting the margins accordingly;
(III)
in the matter preceding clause (i), as so redesignated, by striking “Administrator shall include—” and inserting the following:

“(A) shall include—”

(IV)
in subparagraph (A)(v), as so redesignated, by striking the period at the end and inserting “; and”; and
(V)
by adding at the end the following:

“(B) may include—

“(i) any relevant information that is obtained under paragraph (1)(D); and

“(ii) cadastral features, including, for each cadastral feature—

“(I) the associated parcel identification data for that feature; and

“(II) to the maximum extent practicable, using public and private sector address data, the address of that feature.”

(B)
in subsection (c)(2)—
(i)
in subparagraph (B), by striking “and” at the end;
(ii)
in subparagraph (C), by striking the period at the end and inserting “; and”; and
(iii)
by adding at the end the following:

“(D) not later than 5 years after the date on which the National Geodetic Survey completes the modernization of the National Spatial Reference System in 2022, updated to conform with the geospatial data provided by that system; and

“(E) spatially accurate in accordance with the common protocols for geographic information systems under section 216 of the E-Government Act of 2002 (44 U.S.C. 3501 note).”

(C)
by redesignating subsection (f) as subsection (g);
(D)
by inserting after subsection (e) the following:

“(f) Incorporating building-Specific flood risk information

“(1) Establishment

“(A) In general—Not later than 5 years after the date of enactment of the National Flood Insurance Program Reauthorization and Reform Act of 2019, the Administrator, in coordination with, and as recommended by, the Technical Mapping Advisory Council, shall establish a dynamic, database-derived digital display environment for flood hazard risk production and dissemination.

“(B) Consultation with States and communities—In designing and constructing the environment under subparagraph (A), the Administrator shall—

“(i) leverage and partner with States and communities that have successfully implemented the same approach; and

“(ii) consider adopting the techniques and technologies used by States and communities described in clause (i) and applying them nationwide.

“(2) Digital display

“(A) In general—In carrying out paragraph (1), the Administrator shall create a digital display prompted through dynamic querying of a spatial, relational building database that includes—

“(i) special flood hazard areas and base flood elevations for purposes of lender compliance with the requirements under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a); and

“(ii) structure-specific flood risk information, including, for each property address—

“(I) the spatial footprint and elevation of the structure relative to special flood hazard areas and base flood elevations;

“(II) the most current elevation certificate applicable to the property;

“(III) any letter of map changes;

“(IV) the full risk premium rate estimated for the structure under section 1307(a)(1) of the National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)) based on elevation data;

“(V) the disclosure described in section 1308(l) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(l)), which shall include—

“(aa) the extent to which, if any, the chargeable premium rate applicable to the property is less than the full risk premium rate under section 1307(a)(1) of that Act (42 U.S.C. 4014(a)(1)); and

“(bb) an explanation of the difference described in item (aa) and the methodology used to rate the property;

“(VI) the estimated cost to repair the structure in the case of damage from floods with recurrence intervals ranging from the 10 percent annual chance event to the 0.2 percent annual chance event;

“(VII) the cost-effectiveness of mitigating the structure using common methods and how the chargeable premium rate would change based on each mitigation method; and

“(VIII) the claims history of the structure, including the amount and date of each loss.

“(B) Privacy requirements—With respect to the database described in subparagraph (A), including any data used to create that database, the Administrator may not disseminate the database to any person other than the owner or leaseholder of a property identified in the database.

“(3) Database

“(A) In general—The Administrator shall—

“(i) develop a spatial, relational database of buildings in the National Flood Insurance Program; and

“(ii) obtain the data necessary to support the digital display created under paragraph (2).

“(B) Data—The data obtained under subparagraph (A) shall include, at a minimum—

“(i) footprints and elevations (including lowest adjacent grade and first floor) from Light Detection and Ranging (commonly known as “LiDAR”) data collections or other data collection methods that meet or exceed the standards for buildings, as determined by the Administrator;

“(ii) elevation certificates;

“(iii) parcel, address, and imagery data necessary for the identification, assessment, and reduction of flood hazards for individual properties;

“(iv) flood insurance rate maps, studies, and supporting data;

“(v) letters of map change; and

“(vi) any other data that the Administrator determines necessary to collect to meet the objectives of this section.

“(4) Data procurement—The Administrator shall obtain any data necessary to establish the environment under paragraph (1), including by—

“(A) directing communities participating in the National Flood Insurance Program, by regulation, to collect and supply information, including elevation data, for each structure that obtains a construction or other development permit within—

“(i) a special flood hazard area; or

“(ii) an advisory special flood hazard area adopted by the community;

“(B) issuing guidelines and standards, as determined by the Administrator;

“(C) partnering with other Federal, State, local, and private stakeholders to the greatest extent possible to obtain and share existing data that meets or exceeds the standards determined by the Administrator under subparagraph (B); and

“(D) contracting with private companies to obtain new LiDAR data collections or elevation certificates.

“(5) NFIP premium credit—The Administrator shall provide a 1-time premium credit of not more than $500 to a policyholder for—

“(A) the purchase of an elevation certificate; or

“(B) the purposes of appealing the chargeable premium rate with respect to the property to which the premium applies.

“(6) Mass letters of map change—In coordination with States and communities that have successfully implemented a dynamic, database-derived digital display environment for flood hazard risk production and dissemination, the Administrator shall issue guidelines for the adoption and integration into the program established under subsection (a) of LiDAR-based letter of map amendment approaches.

“(7) Annual report—The Administrator shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives an annual progress report on the implementation of this subsection, which shall include recommendations to reduce the cost and improve the implementation of this subsection.”

(E)
in subsection (g), as so redesignated—
(i)
by striking “this section $400,000,000” and inserting the following:

“(1) $400,000,000”

(ii)
by striking the period at the end and inserting the following:

“(2) $400,000,000 for each of fiscal years 2020 through 2025.”

(b)
Appeals—
(1)
In general—
(A)
Right to appeal— Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 4101) is amended by adding at the end the following:

“(k) Appeals of existing maps

“(1) Right to appeal—Subject to paragraph (6), a State or local government, or the owner or lessee of real property, that makes a formal request to the Administrator to update a flood insurance rate map that the Administrator denies may at any time appeal the denial in accordance with this subsection.

“(2) Basis for appeal—The basis for an appeal under this subsection shall be the possession of knowledge or information that—

“(A) the base flood elevation level or designation of any aspect of a flood insurance rate map is scientifically or technically inaccurate; or

“(B) factors exist that mitigate the risk of flooding, including ditches, banks, walls, vegetation, levees, lakes, dams, reservoirs, basin, retention ponds, and other natural or manmade topographical features.

“(3) Appeals process

“(A) Administrative adjudication—The Administrator shall determine an appeal under this subsection by making a final adjudication on the record, after providing an opportunity for an administrative hearing.

“(B) Rights upon adverse decision

“(i) Optional arbitration—If an appeal determined under subparagraph (A) does not result in a decision in favor of the State, local government, owner, or lessee, that party may request that an appeal of the adverse decision be heard through independent, non-binding arbitration.

“(ii) Process—The Administrator shall establish a process for arbitration under clause (i) under which the arbitrator provides a non-binding recommendation to the Administrator.

“(4) Relief

“(A) Wholly successful appeals—If the Administrator determines, in an appeal under this subsection, that the property of a policyholder that had been included in a special flood hazard area under the flood insurance rate map is actually not in a special flood hazard area—

“(i) the policyholder may cancel the policy at any time during the year in which the Administrator makes the determination; and

“(ii) the Administrator shall provide the policyholder a refund equal to the amount of—

“(I) any premiums that the policyholder paid during the year described in clause (i); and

“(II) any premiums that the policyholder paid for flood insurance coverage that the policyholder was required to purchase or maintain during the 2-year period preceding the year described in clause (i).

“(B) Partially successful appeals—If the Administrator determines in an appeal under this subsection that mitigating factors have reduced, but not eliminated, the risk of flooding to a property, the Administrator shall—

“(i) reduce the amount of flood insurance coverage required to be maintained for the property by the ratio of the successful portion of the appeal as compared to the entire appeal; and

“(ii) provide the policyholder a refund equal to the difference between—

“(I) the amount of any premiums that the policyholder paid during the period—

“(aa) beginning on the later of—

“(AA) the date on which the mitigating factor was created; or

“(BB) January 1 of the second year preceding the date on which the determination is made; and

“(bb) ending on the date on which the reduction in the amount of flood insurance required, as described in clause (i), takes effect; and

“(II) the amount of premiums that the policyholder would have been required to pay if the reduced amount of flood insurance coverage required, as described in clause (i), had been in effect during the period described in subclause (I) of this clause.

“(C) Additional relief—The Administrator may provide additional refunds in excess of the amounts required under subparagraphs (A) and (B) if the Administrator determines that such additional refunds are warranted.

“(5) Recovery of costs

“(A) Appeal expenses—If a State or local government, or the owner or lessee of real property, incurs any expense in connection with an appeal under this subsection that is based on a scientific or technical error made by the Administrator and that is successful in whole or part regarding the designation of the base flood elevation or any aspect of a flood insurance rate map, including elevation or designation of a special flood hazard area, the Administrator shall reimburse the State, local government, owner, or lessee in accordance with subparagraph (B).

“(B) Reimbursable expenses—The Administrator—

“(i) may reimburse a party under subparagraph (A) for reasonable expenses described in that subparagraph—

“(I) including for a service provided by a surveyor, engineer, or scientific expert; and

“(II) to the extent measured by the ratio of the successful portion of the appeal as compared to the entire appeal; and

“(ii) may not reimburse a party under subparagraph (A) for—

“(I) the cost of legal services; or

“(II) the payment of any fee or expense, the payment of which was agreed to be contingent upon the result of the appeal.

“(6) Guidance—The Administrator shall issue guidance to implement this subsection, which shall not be subject to the notice and comment requirements under section 553 of title 5, United States Code.”

(B)
Technical and conforming amendments— Section 1310(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended—
(i)
in paragraph (7), by striking “and” at the end;
(ii)
in paragraph (8), by striking the period at the end and inserting “; and”; and
(iii)
by adding at the end the following:

“(9) for providing reimbursements of expenses of flood insurance rate map appeals under section 1360(k)(5).”

(2)
Deadline for issuance of guidance— Not later than 180 days after the date of enactment of this Act, the Administrator shall issue the guidance required under subsection (k)(6) of section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 4101), as added by paragraph (1)(A).

Sec. 209 Protected areas

Section 100216(b) of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)) is amended by adding at the end the following:

“(4) Zones protected by levee systems

“(A) Applicability—Subject to full implementation of this section, and notwithstanding any other provision of law, this paragraph shall apply to a community in which the Administrator maps or re-maps a levee-impacted area in which the pertinent levee system fails to meet the minimum design, operation, and maintenance standards of the National Flood Insurance Program required for levee accreditation on a National Flood Insurance Program rate map.

“(B) AL Zones—For levee-impacted areas described in subparagraph (A), the Administrator shall establish flood risk zones known as AL Zones on the National Flood Insurance Program rate map.

“(C) Actuarial rates

“(i) In general—The Administrator shall make available flood insurance to properties in AL Zones at actuarial rates based upon the risk associated with structures within the applicable AL Zone.

“(ii) Temporary rates—Until the Administrator promulgates actuarial rates for the various AL Zones, a structure within a portion of a community located within a levee-impacted area described in subparagraph (A) shall be eligible for rates associated with areas of moderate flood hazards (also known as Standard X zone rates).”

Sec. 210 Community-wide flood mitigation activities

It is the sense of Congress that the Administrator should consider flood mitigation activities that—
(1)
provide benefits to an entire floodplain or community, or to a portion of such a community;
(2)
consider all available and practicable approaches; and
(3)
the Administrator determines—
(A)
are technically feasible;
(B)
have the highest net benefits; and
(C)
are consistent with mitigation plans approved by the Administrator.