Section 1 Short title
This Act may be cited as the “Flood Insurance Affordability Act”.
Flood Insurance Affordability Act
A BILL
To establish a grace period for nonpayment of premiums for flood insurance coverage under the national flood insurance program until the Administrator of the Federal Emergency Management Agency implements the option for monthly payment of such premiums, and for other purposes.
Sec. 2 Grace period for flood insurance coverage
Authority To suspend premium payments— During the period that begins on the date of enactment of this Act and ends 30 days after the date on which the Administrator of the Federal Emergency Management Agency first makes available to policyholders of flood insurance coverage under the national flood insurance program a monthly premium payment option for flood insurance coverage in compliance with section 1308(g) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)), any new and existing policyholders to which such section 1308(g) applies shall remain covered under such a flood insurance policy notwithstanding the nonpayment of premiums to cover that period.
Recoupment of unpaid premium amounts— The Administrator of the Federal Emergency Management Agency shall provide that, after the expiration of the period referred to in subsection (a), there shall be assessed on each policyholder who elects to pay flood insurance coverage premiums on a monthly basis pursuant to section 1308(g) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) an extra monthly fee in an amount calculated by the Administrator to recover, on a cumulative basis, the amount of premiums unpaid pursuant to subsection (a).
Other grace periods— The grace period under subsection (a) for nonpayment of premiums shall be in addition to any other grace period provided for under a policy for flood insurance coverage under the national flood insurance program.
Sec. 3 Prohibition on fees associated with monthly payments
Section 1308(g) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended by striking “annually or monthly.” and inserting “annually or monthly, and may not apply any fee or additional charge with respect to a policyholder who chooses to make monthly payments compared to a policyholder who chooses to make payments annually.”.