1. Short title
This Act may be cited as the “Flood Risk Transparency for Homebuyers Act”.
Flood Risk Transparency for Homebuyers Act
A BILL
To require the Secretary of Housing and Urban Development to provide a disclosure notice to homebuyers of properties owned by the Department of Housing and Urban Development that are located in special flood hazard areas, and for other purposes.
2. Definitions
In this Act:
Administrator— The term Administrator means the Administrator of the Federal Emergency Management Agency.
Covered property— The term covered property means a 1-to-4 unit residential property—
acquired by the Department as a result of a foreclosure action on a mortgage insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.); and
located in a special flood hazard area according to a flood hazard boundary map or flood insurance rate map issued by the Administration.
Department— The term Department means the Department of Housing and Urban Development.
National Flood Insurance Program— The term National Flood Insurance Program means the program established under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.).
Secretary— The term Secretary means the Secretary of Housing and Urban Development.
Severe repetitive loss property— The term severe repetitive loss property has the meaning given the term in section 1307(h) of the National Flood Insurance Act of 1968 (42 U.S.C. 4014(h)).
3. Requirement to provide disclosure to homebuyers of properties located in special flood hazard areas
In general— When listing a covered property for sale by the Department, the Secretary shall provide a disclosure notice that includes—
the estimated monthly cost of insurance for the covered property under the National Flood Insurance Program for the zip code in which the covered property is located; and
whether the covered property is a severe repetitive loss property.
Annual report— Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Secretary and the Administrator shall submit to Congress a joint report on covered properties sold by the Department for which claims were filed under the National Flood Insurance Program during the year covered by the report, including whether the covered property is a severe repetitive loss property.