--- kind: "range" citation: "42 U.S.C. §§ 4001–4128" title: "42" from: "4001" to: "4128" count: 74 release: "119-102" url: "https://uscodex.org/usc/42/4001..4128" --- # §4001. Congressional findings and declaration of purpose - (a) **Necessity and reasons for flood insurance program—** The Congress finds that (1) from time to time [flood](/usc/42/4121.md?p=a-1) [disasters](/usc/42/5204.md?p=2) have created personal hardships and economic distress which have required unforeseen [disaster](/usc/42/5204.md?p=2) relief measures and have placed an increasing burden on the Nation’s resources; (2) despite the installation of preventive and protective works and the adoption of other public [programs](/usc/42/274l–1.md?p=4) designed to reduce losses caused by [flood](/usc/42/4121.md?p=a-1) damage, these methods have not been sufficient to protect adequately against growing exposure to future [flood](/usc/42/4121.md?p=a-1) losses; (3) as a matter of national policy, a reasonable method of sharing the risk of [flood](/usc/42/4121.md?p=a-1) losses is through a [program](/usc/42/274l–1.md?p=4) of [flood](/usc/42/4121.md?p=a-1) insurance which can complement and encourage preventive and protective measures; and (4) if such a [program](/usc/42/274l–1.md?p=4) is initiated and carried out gradually, it can be expanded as knowledge is gained and experience is appraised, thus eventually making [flood](/usc/42/4121.md?p=a-1) insurance coverage available on reasonable terms and conditions to [persons](/usc/42/4121.md?p=a-5) who have need for such protection. - (b) **Participation of Federal Government in flood insurance program carried out by private insurance industry—** The Congress also finds that (1) many factors have made it uneconomic for the private insurance industry alone to make [flood](/usc/42/4121.md?p=a-1) insurance available to those in need of such protection on reasonable terms and conditions; but (2) a [program](/usc/42/274l–1.md?p=4) of [flood](/usc/42/4121.md?p=a-1) insurance with large-scale participation of the Federal Government and carried out to the maximum extent practicable by the private insurance industry is feasible and can be initiated. - (c) **Unified national program for flood plain management—** The Congress further finds that (1) a [program](/usc/42/274l–1.md?p=4) of [flood](/usc/42/4121.md?p=a-1) insurance can promote the public interest by providing appropriate protection against the perils of [flood](/usc/42/4121.md?p=a-1) losses and encouraging sound land use by minimizing exposure of property to [flood](/usc/42/4121.md?p=a-1) losses; and (2) the objectives of a [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) should be integrally related to a unified national [program](/usc/42/274l–1.md?p=4) for [flood](/usc/42/4121.md?p=a-1) plain management and, to this end, it is the sense of Congress that within two years following the effective date of this chapter the President should transmit to the Congress for its consideration any further proposals necessary for such a unified [program](/usc/42/274l–1.md?p=4), including proposals for the [allocation](/usc/42/2021b.md?p=2) of costs among beneficiaries of [flood](/usc/42/4121.md?p=a-1) protection. - (d) **Authorization of flood insurance program; flexibility in program—** It is therefore the purpose of this chapter to (1) authorize a [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) by means of which [flood](/usc/42/4121.md?p=a-1) insurance, over a period of time, can be made available on a nationwide basis through the cooperative efforts of the Federal Government and the private insurance industry, and (2) provide flexibility in the [program](/usc/42/274l–1.md?p=4) so that such [flood](/usc/42/4121.md?p=a-1) insurance may be based on workable methods of pooling risks, minimizing costs, and distributing burdens equitably among those who will be protected by [flood](/usc/42/4121.md?p=a-1) insurance and the general public. - (e) **Land use adjustments by State and local governments; development of proposed future construction; assistance of lending and credit institutions; relation of Federal assistance to all flood-related programs; continuing studies—** It is the further purpose of this chapter to (1) encourage [State](/usc/42/4121.md?p=a-2) and [local governments](/usc/42/8401a.md) to make appropriate land use adjustments to constrict the development of land which is exposed to [flood](/usc/42/4121.md?p=a-1) damage and minimize damage caused by [flood](/usc/42/4121.md?p=a-1) losses, (2) guide the development of proposed future [construction](/usc/42/7479.md?p=2-C), where practicable, away from locations which are threatened by [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3), (3) encourage lending and credit institutions, as a matter of national policy, to assist in furthering the objectives of the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4), (4) assure that any Federal assistance provided under the [program](/usc/42/274l–1.md?p=4) will be related closely to all [flood](/usc/42/4121.md?p=a-1)-related [programs](/usc/42/274l–1.md?p=4) and activities of the Federal Government, and (5) authorize continuing studies of [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) in order to provide for a constant reappraisal of the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) and its effect on land use requirements. - (f) **Mudslides—** The Congress also finds that (1) the damage and loss which results from mudslides is related in [cause](/usc/42/9908.md?p=c-2) and similar in effect to that which results directly from storms, deluges, overflowing waters, and other forms of flooding, and (2) the problems involved in providing protection against this damage and loss, and the possibilities for making such protection available through a Federal or federally sponsored [program](/usc/42/274l–1.md?p=4), are similar to those which exist in connection with efforts to provide protection against damage and loss caused by such other forms of flooding. It is therefore the further purpose of this chapter to make available, by means of the methods, procedures, and instrumentalities which are otherwise established or available under this chapter for purposes of the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4), protection against damage and loss resulting from mudslides that are caused by accumulations of water on or under the ground. # §4002. Additional Congressional findings and declaration of purpose - (a) The Congress finds that— - (1) annual losses throughout the Nation from [floods](/usc/42/4121.md?p=a-1) and mudslides are increasing at an alarming rate, largely as a result of the accelerating development of, and concentration of population in, areas of [flood](/usc/42/4121.md?p=a-1) and mudslide [hazards](/usc/42/5165f.md?p=a-3); - (2) the availability of Federal loans, grants, guaranties, insurance, and other forms of [financial assistance](/usc/42/4003.md?p=a-3) are often determining factors in the utilization of land and the location and [construction](/usc/42/7479.md?p=2-C) of public and of private industrial, commercial, and residential [facilities](/usc/42/11049.md?p=4); - (3) property acquired or constructed with grants or other Federal assistance may be exposed to risk of loss through [floods](/usc/42/4121.md?p=a-1), thus frustrating the purpose for which such assistance was extended; - (4) Federal instrumentalities insure or otherwise provide financial protection to banking and credit institutions whose assets include a substantial number of mortgage loans and other indebtedness secured by property exposed to loss and damage from [floods](/usc/42/4121.md?p=a-1) and mudslides; - (5) the Nation cannot afford the tragic losses of life caused annually by [flood](/usc/42/4121.md?p=a-1) occurrences, nor the increasing losses of property suffered by [flood](/usc/42/4121.md?p=a-1) victims, most of whom are still inadequately compensated despite the provision of costly [disaster](/usc/42/5204.md?p=2) relief benefits; and - (6) it is in the public interest for [persons](/usc/42/4121.md?p=a-5) already living in [flood](/usc/42/4121.md?p=a-1)-prone areas to have both an opportunity to purchase [flood](/usc/42/4121.md?p=a-1) insurance and access to more adequate limits of coverage, so that they will be indemnified, for their losses in the event of future [flood](/usc/42/4121.md?p=a-1) [disasters](/usc/42/5204.md?p=2). - (b) The purpose of this Act, therefore, is to— - (1) substantially increase the limits of coverage authorized under the [national flood insurance program](/usc/42/4004.md?p=a-4); - (2) provide for the expeditious identification of, and the dissemination of information concerning, [flood](/usc/42/4121.md?p=a-1)-prone areas; - (3) require [States](/usc/42/4121.md?p=a-2) or local [communities](/usc/42/4003.md?p=a-1), as a condition of future Federal [financial assistance](/usc/42/4003.md?p=a-3), to participate in the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) and to adopt adequate [flood](/usc/42/4121.md?p=a-1) plan ordinances with effective enforcement provisions consistent with Federal [standards](/usc/42/1320d.md?p=7) to reduce or avoid future [flood](/usc/42/4121.md?p=a-1) losses; and - (4) require the purchase of [flood](/usc/42/4121.md?p=a-1) insurance by property [owners](/usc/42/13641.md?p=4) who are being assisted by Federal [programs](/usc/42/274l–1.md?p=4) or by federally supervised, regulated, or insured agencies or institutions in the acquisition or improvement of land or [facilities](/usc/42/11049.md?p=4) located or to be located in identified areas having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3). # §4003. Definitions applicable to Flood Disaster Protection Act of 1973 - (a) As used in this Act, unless the context otherwise requires, the term— - (1) “community” means a [State](/usc/42/4121.md?p=a-2) or a political subdivision thereof which has zoning and building code jurisdiction over a particular area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3); - (2) “Federal agency” means any department, agency, [corporation](/usc/42/2296b–7.md?p=1), or other entity or instrumentality of the executive branch of the Federal Government, and includes the Federal National Mortgage Association and the Federal Home Loan Mortgage [Corporation](/usc/42/2296b–7.md?p=1); - (3) “financial assistance” means any form of loan, grant, guaranty, insurance, payment, rebate, subsidy, [disaster](/usc/42/5204.md?p=2) assistance loan or grant, or any other form of direct or indirect Federal assistance, other than general or special revenue sharing or formula grants made to [States](/usc/42/4121.md?p=a-2); - (4) “financial assistance for acquisition or construction purposes” means any form of [financial assistance](#a-3) which is intended in whole or in part for the acquisition, [construction](/usc/42/7479.md?p=2-C), reconstruction, repair, or improvement of any publicly or privately owned [building](/usc/42/6881.md?p=i-3) or mobile home, and for any machinery, equipment, fixtures, and furnishings contained or to be contained therein, and shall include the purchase or subsidization of mortgages or mortgage loans but shall exclude assistance pursuant to the [Disaster](/usc/42/5204.md?p=2) Relief and Emergency Assistance Act [[42 U.S.C. 5121](/usc/42/5121.md) et seq.] (other than assistance under such Act in connection with a [flood](/usc/42/4121.md?p=a-1)); - (5) “Federal entity for lending regulation” means the [Board](/usc/42/10261.md?p=2) of [Governors](/usc/42/6372.md?p=1) of the Federal Reserve System, the Federal Deposit Insurance [Corporation](/usc/42/2296b–7.md?p=1), the Comptroller of the Currency, the National Credit Union Administration, and the Farm Credit Administration, and with respect to a particular [regulated lending institution](#a-10) means the entity primarily responsible for the supervision of the institution; - (6) “Administrator” means the Administrator of the Federal Emergency Management Agency; - (7) “Federal agency lender” means a [Federal agency](#a-2) that makes direct loans secured by [improved real estate](#a-8) or a mobile home, to the extent such agency acts in such capacity; - (8) the term “improved real estate” means real estate upon which a [building](/usc/42/6881.md?p=i-3) is located; - (9) “lender” means a [regulated lending institution](#a-10) or [Federal agency lender](#a-7); - (10) “regulated lending institution” means any bank, savings and loan association, credit union, farm credit bank, Federal land bank association, production credit association, or similar institution subject to the supervision of a [Federal entity for lending regulation](#a-5); and - (11) “servicer” means the [person](/usc/42/4121.md?p=a-5) responsible for receiving any scheduled periodic payments from a borrower pursuant to the terms of a loan, including amounts for taxes, insurance premiums, and other charges with respect to the property securing the loan, and making the payments of principal and interest and such other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the loan. - (b) The [Administrator](#a-6) is authorized to define or redefine, by rules and regulations, any scientific or technical term used in this Act, insofar as such definition is not inconsistent with the purposes of this Act. # §4004. Definitions applicable to Biggert-Waters Flood Insurance Reform Act of 2012 - (a) **In general—** In this subtitle, the following definitions shall apply: - (1) **100-year floodplain—** The term “100-year floodplain” means that area which is subject to inundation from a [flood](/usc/42/4121.md?p=a-1) having a 1-percent chance of being equaled or exceeded in any given year. - (2) **500-year floodplain—** The term “500-year floodplain” means that area which is subject to inundation from a [flood](/usc/42/4121.md?p=a-1) having a 0.2-percent chance of being equaled or exceeded in any given year. - (3) **Administrator—** The term “[Administrator](/usc/42/4003.md?p=a-6)” means the [Administrator](/usc/42/4003.md?p=a-6) of the Federal Emergency Management Agency. - (4) **National Flood Insurance Program—** The term “National Flood Insurance Program” means the [program](/usc/42/274l–1.md?p=4) established under the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 ([42 U.S.C. 4011](/usc/42/4011.md) et seq.). - (5) **Write Your Own—** The term “Write Your Own” means the cooperative undertaking between the insurance industry and the Federal Insurance Administration which allows participating property and casualty [insurance companies](/usc/42/4121.md?p=a-3) to write and service [standard](/usc/42/1320d.md?p=7) [flood](/usc/42/4121.md?p=a-1) insurance policies. - (b) **Common terminology—** Except as otherwise provided in this subtitle, any terms used in this subtitle shall have the meaning given to such terms under section 1370 of the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 ([42 U.S.C. 4121](/usc/42/4121.md)). # §4005. Definitions applicable to Homeowner Flood Insurance Affordability Act of 2014 For purposes of this title,[^1] the following definitions shall apply: - (1) **Administrator—** The term “[Administrator](/usc/42/4003.md?p=a-6)” means the [Administrator](/usc/42/4003.md?p=a-6) of the Federal Emergency Management Agency. - (2) **National Flood Insurance Program—** The term “[National Flood Insurance Program](/usc/42/4004.md?p=a-4)” means the [program](/usc/42/274l–1.md?p=4) established under the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 ([42 U.S.C. 4001](/usc/42/4001.md) et seq.). # §4011. Authorization to establish and carry out program - (a) **Authorization and establishment—** To carry out the purposes of this chapter, the [Administrator](/usc/42/4003.md?p=a-6) of the Federal Emergency Management Agency is authorized to establish and carry out a [national flood insurance program](/usc/42/4004.md?p=a-4) which will enable interested [persons](/usc/42/4121.md?p=a-5) to purchase insurance against loss resulting from physical damage to or loss of real property or personal property related thereto arising from any [flood](/usc/42/4121.md?p=a-1) occurring in the [United States](/usc/42/4121.md?p=a-2). - (b) **Additional coverage for compliance with land use and control measures—** The [national flood insurance program](/usc/42/4004.md?p=a-4) established pursuant to [subsection (a)](#a) shall enable the purchase of insurance to cover the cost of implementing measures that are consistent with land use and control measures established by the [community](/usc/42/4003.md?p=a-1) under [section 4102 of this title](/usc/42/4102.md) for— - (1) properties that are [repetitive loss structures](/usc/42/4121.md?p=a-7); - (2) properties that are [substantially damaged structures](/usc/42/4121.md?p=a-15); - (3) properties that have sustained [flood](/usc/42/4121.md?p=a-1) damage on multiple occasions, if the [Administrator](/usc/42/4003.md?p=a-6) determines that it is [cost-effective](/usc/42/1396e.md?p=e-2) and in the best interests of the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) to require the implementation of such measures; and - (4) properties for which an offer of mitigation assistance is made under— - (A) [section 4104c of this title](/usc/42/4104c.md) ([Flood](/usc/42/4121.md?p=a-1) Mitigation Assistance [Program](/usc/42/274l–1.md?p=4)); - (B) the [Hazard](/usc/42/5165f.md?p=a-3) Mitigation Grant [Program](/usc/42/274l–1.md?p=4) authorized under [section 5170c of this title](/usc/42/5170c.md); - (C) the Predisaster [Hazard](/usc/42/5165f.md?p=a-3) Mitigation [Program](/usc/42/274l–1.md?p=4) under [section 5133 of this title](/usc/42/5133.md); and - (D) any [programs](/usc/42/274l–1.md?p=4) authorized or for which [funds](/usc/42/12854.md?p=3) are appropriated to address any unmet needs or for which supplemental [funds](/usc/42/12854.md?p=3) are made available. The [Administrator](/usc/42/4003.md?p=a-6) shall impose a surcharge on each insured of not more than $75 per policy to provide cost of compliance coverage in accordance with the provisions of this subsection. - (c) **Participation and risk sharing by insurers—** In carrying out the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) the [Administrator](/usc/42/4003.md?p=a-6) shall, to the maximum extent practicable, encourage and arrange for— - (1) appropriate financial participation and risk sharing in the [program](/usc/42/274l–1.md?p=4) by [insurance companies](/usc/42/4121.md?p=a-3) and [other insurers](/usc/42/4121.md?p=a-3), and - (2) other appropriate participation, on other than a risk-sharing basis, by [insurance companies](/usc/42/4121.md?p=a-3) and [other insurers](/usc/42/4121.md?p=a-3), insurance agents and brokers, and [insurance adjustment organizations](/usc/42/4121.md?p=a-4), in accordance with the provisions of subchapter II. # §4012. Scope of program and priorities - (a) **Priority for insurance for certain residential and church properties and business concerns—** In carrying out the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) the [Administrator](/usc/42/4003.md?p=a-6) shall afford a priority to making [flood](/usc/42/4121.md?p=a-1) insurance available to cover [residential properties](/usc/42/2304.md?p=m) which are designed for the occupancy of from one to four [families](/usc/42/12704.md?p=11), church properties, and business properties which are owned or leased and operated by small business concerns. - (b) **Availability of insurance for other properties—** If on the basis of— - (1) studies and investigations undertaken and carried out and information received or exchanged under [section 4014 of this title](/usc/42/4014.md), and - (2) such other information as may be necessary, the [Administrator](/usc/42/4003.md?p=a-6) determines that it would be feasible to extend the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) to cover other properties, he may take such action under this chapter as from time to time may be necessary in order to make [flood](/usc/42/4121.md?p=a-1) insurance available to cover, on such basis as may be feasible, any types and classes of— - (A) other [residential properties](/usc/42/2304.md?p=m) not described in subsection [(a)](#a) or [(d)](#d), - (B) other business properties, - (C) agricultural properties, - (D) properties occupied by private nonprofit organizations, and - (E) properties owned by [State](/usc/42/4121.md?p=a-2) and [local governments](/usc/42/8401a.md) and agencies thereof, and any such extensions of the [program](/usc/42/274l–1.md?p=4) to any types and classes of these properties shall from time to time be prescribed in regulations. - (c) **Availability of insurance in States or areas evidencing positive interest in securing insurance and assuring adoption of adequate land use and control measures—** The [Administrator](/usc/42/4003.md?p=a-6) shall make [flood](/usc/42/4121.md?p=a-1) insurance available in only those [States](/usc/42/4121.md?p=a-2) or areas (or subdivisions thereof) which he has determined have— - (1) evidenced a positive interest in securing [flood](/usc/42/4121.md?p=a-1) insurance coverage under the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4), and - (2) given satisfactory assurance that by December 31, 1971, adequate land use and control measures will have been adopted for the [State](/usc/42/4121.md?p=a-2) or area (or subdivision) which are consistent with the comprehensive criteria for land management and use developed under [section 4102 of this title](/usc/42/4102.md), and that the application and enforcement of such measures will commence as soon as technical information on floodways and on controlling [flood](/usc/42/4121.md?p=a-1) elevations is available. - (d) **Availability of insurance for multifamily properties—** - (1) **In general—** The [Administrator](/usc/42/4003.md?p=a-6) shall make [flood](/usc/42/4121.md?p=a-1) insurance available to cover [residential properties](/usc/42/2304.md?p=m) of 5 or more residences. Notwithstanding any other provision of law, the maximum coverage amount that the [Administrator](/usc/42/4003.md?p=a-6) may make available under this subsection to such [residential properties](/usc/42/2304.md?p=m) shall be equal to the coverage amount made available to commercial properties. - (2) **Rule of construction—** Nothing in this subsection shall be construed to limit the ability of individuals residing in [residential properties](/usc/42/2304.md?p=m) of 5 or more residences to obtain insurance for the contents and personal articles located in such residences. # §4012a. Flood insurance purchase and compliance requirements and escrow accounts - (a) **Amount and term of coverage—** After the expiration of sixty days following December 31, 1973, no Federal officer or agency shall approve any [financial assistance for acquisition or construction purposes](/usc/42/4003.md?p=a-4) for use in any area that has been identified by the [Administrator](/usc/42/4003.md?p=a-6) as an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) and in which the sale of [flood](/usc/42/4121.md?p=a-1) insurance has been made available under the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 [[42 U.S.C. 4001](/usc/42/4001.md) et seq.], unless the [building](/usc/42/6881.md?p=i-3) or mobile home and any personal property to which such [financial assistance](/usc/42/4003.md?p=a-3) relates is covered by [flood](/usc/42/4121.md?p=a-1) insurance in an amount at least equal to its development or [project](/usc/42/11360.md?p=20) cost (less estimated land cost) or to the maximum limit of coverage made available with respect to the particular type of property under the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968, whichever is less: Provided, That if the [financial assistance](/usc/42/4003.md?p=a-3) provided is in the form of a loan or an insurance or guaranty of a loan, the amount of [flood](/usc/42/4121.md?p=a-1) 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](/usc/42/4121.md?p=a-1) insurance shall apply during the life of the property, regardless of transfer of ownership of such property. - (b) **Requirement for mortgage loans—** - (1) **Regulated lending institutions—** Each [Federal entity for lending regulation](/usc/42/4003.md?p=a-5) (after consultation and coordination with the [Financial Institutions](/usc/42/666.md?p=a-17-D-i) Examination [Council](/usc/42/300f.md?p=9) established under the Federal [Financial Institutions](/usc/42/666.md?p=a-17-D-i) Examination Council Act of 1974 [[12 U.S.C. 3301](/usc/12/3301.md) et seq.]) shall by regulation direct [regulated lending institutions](/usc/42/4003.md?p=a-10)— - (A) not to make, increase, extend, or renew any loan secured by [improved real estate](/usc/42/4003.md?p=a-8) or a mobile home located or to be located in an area that has been identified by the [Administrator](/usc/42/4003.md?p=a-6) as an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) and in which [flood](/usc/42/4121.md?p=a-1) insurance has been made available under the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 [[42 U.S.C. 4001](/usc/42/4001.md) et seq.], unless the [building](/usc/42/6881.md?p=i-3) or mobile home and any personal property securing such loan is covered for the term of the loan by [flood](/usc/42/4121.md?p=a-1) insurance in an amount at least equal to the outstanding principal balance of the loan or the maximum limit of coverage made available under the Act with respect to the particular type of property, whichever is less; and - (B) to accept [private flood insurance](#b-7) as satisfaction of the [flood](/usc/42/4121.md?p=a-1) insurance coverage requirement under [subparagraph (A)](#b-1-A) if the coverage provided by such [private flood insurance](#b-7) meets the requirements for coverage under such subparagraph. - (2) **Federal agency lenders—** A [Federal agency lender](/usc/42/4003.md?p=a-7) may not make, increase, extend, or renew any loan secured by [improved real estate](/usc/42/4003.md?p=a-8) or a mobile home located or to be located in an area that has been identified by the [Administrator](/usc/42/4003.md?p=a-6) as an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) and in which [flood](/usc/42/4121.md?p=a-1) insurance has been made available under the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968, unless the [building](/usc/42/6881.md?p=i-3) or mobile home and any personal property securing such loan is covered for the term of the loan by [flood](/usc/42/4121.md?p=a-1) insurance in the amount provided in [paragraph (1)(A)](#b-1-A). Each [Federal agency lender](/usc/42/4003.md?p=a-7) shall accept [private flood insurance](#b-7) as satisfaction of the [flood](/usc/42/4121.md?p=a-1) insurance coverage requirement under the preceding sentence if the [flood](/usc/42/4121.md?p=a-1) insurance coverage provided by such [private flood insurance](#b-7) meets the requirements for coverage under such sentence. Each [Federal agency lender](/usc/42/4003.md?p=a-7) shall 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)(A)](#b-1-A). - (3) **Government-sponsored enterprises for housing—** The Federal National Mortgage Association and the Federal Home Loan Mortgage [Corporation](/usc/42/2296b–7.md?p=1) shall implement procedures reasonably designed to ensure that, for any loan that is— - (A) secured by [improved real estate](/usc/42/4003.md?p=a-8) 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](/usc/42/4003.md?p=a-6) as an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) and in which [flood](/usc/42/4121.md?p=a-1) insurance is available under the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968, and - (B) purchased by such entity, the [building](/usc/42/6881.md?p=i-3) or mobile home and any personal property securing the loan is covered for the term of the loan by [flood](/usc/42/4121.md?p=a-1) insurance in the amount provided in [paragraph (1)(A)](#b-1-A). The Federal National Mortgage Association and the Federal Home Loan Mortgage [Corporation](/usc/42/2296b–7.md?p=1) shall accept [private flood insurance](#b-7) as satisfaction of the [flood](/usc/42/4121.md?p=a-1) insurance coverage requirement under [paragraph (1)(A)](#b-1-A) if the [flood](/usc/42/4121.md?p=a-1) insurance coverage provided by such [private flood insurance](#b-7) meets the requirements for coverage under such paragraph and any requirements established by the Federal National Mortgage Association or the Federal Home Loan Mortgage [Corporation](/usc/42/2296b–7.md?p=1), respectively, relating to the financial solvency, strength, or [claims](/usc/42/1320a–7a.md?p=i-2)-paying ability of private [insurance companies](/usc/42/4121.md?p=a-3) from which the Federal National Mortgage Association or the Federal Home Loan Mortgage [Corporation](/usc/42/2296b–7.md?p=1) will accept [private flood insurance](#b-7). - (4) **Applicability—** - (A) **Existing coverage—** Except as provided in [subparagraph (B)](#b-4-B), [paragraph (1)](#b-1) shall apply on September 23, 1994. - (B) **New coverage—** Paragraphs [(2)](#b-2) and [(3)](#b-3) shall apply only with respect to any loan made, increased, extended, or renewed after the expiration of the 1-year period beginning on September 23, 1994. [Paragraph (1)](#b-1) shall apply with respect to any loan made, increased, extended, or renewed by any [lender](/usc/42/4003.md?p=a-9) supervised by the Farm Credit Administration only after the expiration of the period under this subparagraph. - (C) **Continued effect of regulations—** Notwithstanding any other provision of this subsection, the regulations to carry out [paragraph (1)](#b-1), as in effect immediately before September 23, 1994, shall continue to apply until the regulations issued to carry out [paragraph (1)](#b-1) as amended by section 522(a) of Public Law 103–325 take effect. - (5) **Rule of construction—** Nothing in this subsection shall be construed to supersede or limit the authority of a [Federal entity for lending regulation](/usc/42/4003.md?p=a-5), the Federal [Housing](/usc/42/1490p–2.md?p=r-3) Finance Agency, a [Federal agency lender](/usc/42/4003.md?p=a-7), the Federal National Mortgage Association, or the Federal Home Loan Mortgage [Corporation](/usc/42/2296b–7.md?p=1) to establish requirements relating to the financial solvency, strength, or [claims](/usc/42/1320a–7a.md?p=i-2)-paying ability of private [insurance companies](/usc/42/4121.md?p=a-3) from which the entity or agency will accept [private flood insurance](#b-7). - (6) **Notice—** - (A) **In general—** Each [lender](/usc/42/4003.md?p=a-9) shall disclose to a borrower that is subject to this subsection that— - (i) [flood](/usc/42/4121.md?p=a-1) insurance is available from private [insurance companies](/usc/42/4121.md?p=a-3) that issue [standard](/usc/42/1320d.md?p=7) [flood](/usc/42/4121.md?p=a-1) insurance policies on behalf of the [national flood insurance program](/usc/42/4004.md?p=a-4) or directly from the [national flood insurance program](/usc/42/4004.md?p=a-4); - (ii) [flood](/usc/42/4121.md?p=a-1) insurance that provides the same level of coverage as a [standard](/usc/42/1320d.md?p=7) [flood](/usc/42/4121.md?p=a-1) insurance policy under the [national flood insurance program](/usc/42/4004.md?p=a-4) may be available from a private [insurance company](/usc/42/4121.md?p=a-3) that issues policies on behalf of the company; and - (iii) the borrower is encouraged to compare the [flood](/usc/42/4121.md?p=a-1) insurance coverage, deductibles, exclusions, conditions and premiums associated with [flood](/usc/42/4121.md?p=a-1) insurance policies issued on behalf of the [national flood insurance program](/usc/42/4004.md?p=a-4) and policies issued on behalf of private [insurance companies](/usc/42/4121.md?p=a-3) and to direct inquiries regarding the availability, cost, and comparisons of [flood](/usc/42/4121.md?p=a-1) insurance coverage to an insurance agent. - (B) **Rule of construction—** Nothing in this paragraph shall be construed as affecting or otherwise limiting the authority of a [Federal entity for lending regulation](/usc/42/4003.md?p=a-5) to approve any disclosure made by a [regulated lending institution](/usc/42/4003.md?p=a-10) for purposes of complying with [subparagraph (A)](#b-6-A). - (7) **Private flood insurance defined—** In this subsection, the term “private flood insurance” means an insurance policy that— - (A) is issued by an [insurance company](/usc/42/4121.md?p=a-3) that is— - (i) licensed, admitted, or otherwise approved to engage in the business of insurance in the [State](/usc/42/4121.md?p=a-2) or jurisdiction in which the insured [building](/usc/42/6881.md?p=i-3) is located, by the insurance regulator of that [State](/usc/42/4121.md?p=a-2) or jurisdiction; or - (ii) in the case of a policy of difference in conditions, multiple peril, all risk, or other blanket coverage insuring nonresidential commercial property, is[^1] recognized, or not disapproved, as a surplus lines insurer by the insurance regulator of the [State](/usc/42/4121.md?p=a-2) or jurisdiction where the property to be insured is located; - (B) provides [flood](/usc/42/4121.md?p=a-1) insurance coverage which is at least as broad as the coverage provided under a [standard](/usc/42/1320d.md?p=7) [flood](/usc/42/4121.md?p=a-1) insurance policy under the [national flood insurance program](/usc/42/4004.md?p=a-4), including when considering deductibles, exclusions, and conditions offered by the insurer; - (C) includes— - (i) a requirement for the insurer to give 45 days’ written notice of cancellation or non-renewal of [flood](/usc/42/4121.md?p=a-1) insurance coverage to— - (I) the insured; and - (II) the [regulated lending institution](/usc/42/4003.md?p=a-10) or [Federal agency lender](/usc/42/4003.md?p=a-7); - (ii) information about the availability of [flood](/usc/42/4121.md?p=a-1) insurance coverage under the [national flood insurance program](/usc/42/4004.md?p=a-4); - (iii) a mortgage interest clause similar to the clause contained in a [standard](/usc/42/1320d.md?p=7) [flood](/usc/42/4121.md?p=a-1) insurance policy under the [national flood insurance program](/usc/42/4004.md?p=a-4); and - (iv) a provision requiring an insured to file suit not later than 1 year after date of a written denial of all or part of a [claim](/usc/42/1320a–7a.md?p=i-2) under the policy; and - (D) contains cancellation provisions that are as restrictive as the provisions contained in a [standard](/usc/42/1320d.md?p=7) [flood](/usc/42/4121.md?p=a-1) insurance policy under the [national flood insurance program](/usc/42/4004.md?p=a-4). - (c) **Exceptions to purchase requirements—** - (1) **State-owned property—** Notwithstanding the other provisions of this section, [flood](/usc/42/4121.md?p=a-1) insurance shall not be required on any [State](/usc/42/4121.md?p=a-2)-owned property that is covered under an adequate [State](/usc/42/4121.md?p=a-2) policy of self-insurance satisfactory to the [Administrator](/usc/42/4003.md?p=a-6). The [Administrator](/usc/42/4003.md?p=a-6) shall publish and periodically revise the list of [States](/usc/42/4121.md?p=a-2) to which this subsection applies. - (2) **Small loans—** Notwithstanding any other provision of this section, subsections [(a)](#a) and [(b)](#b) shall not apply to any loan having— - (A) an original outstanding principal balance of $5,000 or less; and - (B) a repayment term of 1 year or less. - (3) **Detached structures—** Notwithstanding any other provision of this section, [flood](/usc/42/4121.md?p=a-1) insurance shall not be required, in the case of any [residential property](/usc/42/2304.md?p=m), for any structure that is a part of such property but is detached from the primary residential structure of such property and does not serve as a residence. - (d) **Escrow of flood insurance payments—** - (1) **Regulated lending institutions—** - (A) **Federal entities responsible for lending regulations—** Each [Federal entity for lending regulation](/usc/42/4003.md?p=a-5) (after consultation and coordination with the Federal [Financial Institutions](/usc/42/666.md?p=a-17-D-i) Examination [Council](/usc/42/300f.md?p=9)) shall, by regulation, direct that all premiums and fees for [flood](/usc/42/4121.md?p=a-1) insurance under the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968, for [residential improved real estate](#d-4) or a mobile home, shall be paid to the [regulated lending institution](/usc/42/4003.md?p=a-10) or [servicer](/usc/42/4003.md?p=a-11) for any loan secured by the [residential improved real estate](#d-4) or mobile home, with the same frequency as payments on the loan are made, for the duration of the loan. Except as provided in [subparagraph (B)](#d-1-B), upon receipt of any premiums or fees, the [regulated lending institution](/usc/42/4003.md?p=a-10) or [servicer](/usc/42/4003.md?p=a-11) shall deposit such premiums and fees in an escrow account on behalf of the borrower. Upon receipt of a notice from the [Administrator](/usc/42/4003.md?p=a-6) or the provider of the [flood](/usc/42/4121.md?p=a-1) insurance that insurance premiums are due, the premiums deposited in the escrow account shall be paid to the provider of the [flood](/usc/42/4121.md?p=a-1) insurance. - (B) **Limitation—** Except as may be required under applicable [State](/usc/42/4121.md?p=a-2) law, a [Federal entity for lending regulation](/usc/42/4003.md?p=a-5) may not direct or require a [regulated lending institution](/usc/42/4003.md?p=a-10) to deposit premiums or fees for [flood](/usc/42/4121.md?p=a-1) insurance under the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 in an escrow account on behalf of a borrower under [subparagraph (A)](#d-1-A)— - (i) if— - (I) the [regulated lending institution](/usc/42/4003.md?p=a-10) has total assets of less than $1,000,000,000; and - (II) on or before July 6, 2012, the [regulated lending institution](/usc/42/4003.md?p=a-10)— - (aa) in the case of a loan secured by [residential improved real estate](#d-4) or a mobile home, was not required under Federal or [State](/usc/42/4121.md?p=a-2) law to deposit taxes, insurance premiums, fees, or any other charges in an escrow account for the entire term of the loan; and - (bb) did not have a policy of consistently and uniformly requiring the deposit of taxes, insurance premiums, fees, or any other charges in an escrow account for loans secured by [residential improved real estate](#d-4) or a mobile home; or - (ii) in the case of a loan that— - (I) is in a junior or subordinate position to a senior lien secured by the same [residential improved real estate](#d-4) or mobile home for which [flood](/usc/42/4121.md?p=a-1) insurance is being provided at the time of the origination of the loan; - (II) is secured by [residential improved real estate](#d-4) or a mobile home that is part of a condominium, cooperative, or other [project](/usc/42/11360.md?p=20) development, if the [residential improved real estate](#d-4) or mobile home is covered by a [flood](/usc/42/4121.md?p=a-1) insurance policy that— - (aa) meets the requirements that the [regulated lending institution](/usc/42/4003.md?p=a-10) is required to enforce under [subsection (b)(1)](#b-1); - (bb) is provided by the condominium association, cooperative, homeowners association, or other applicable group; and - (cc) the premium for which is paid by the condominium association, cooperative, homeowners association, or other applicable group as a common expense; - (III) is secured by [residential improved real estate](#d-4) or a mobile home that is used as collateral for a business purpose; - (IV) is a home equity line of credit; - (V) is a nonperforming loan; or - (VI) has a term of not longer than 12 months. - (2) **Federal agency lenders—** Each [Federal agency lender](/usc/42/4003.md?p=a-7) shall by regulation require and provide for escrow and payment of any [flood](/usc/42/4121.md?p=a-1) insurance premiums and fees relating to [residential improved real estate](#d-4) and mobile homes securing loans made by the [Federal agency lender](/usc/42/4003.md?p=a-7) under the circumstances and in the manner provided under [paragraph (1)](#d-1). Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under [paragraph (1)](#d-1). - (3) **Applicability of RESPA—** Escrow accounts established pursuant to this subsection shall be subject to the provisions of section 10 of the Real Estate Settlement Procedures Act of 1974 [[12 U.S.C. 2609](/usc/12/2609.md)]. - (4) **“Residential improved real estate” defined—** For purposes of this subsection, the term “residential improved real estate” means [improved real estate](/usc/42/4003.md?p=a-8) for which the improvement is a residential [building](/usc/42/6881.md?p=i-3). - (5) **Applicability—** This subsection shall apply only with respect to any loan made, increased, extended, or renewed after the expiration of the 1-year period beginning on September 23, 1994. - (e) **Placement of flood insurance by lender—** - (1) **Notification to borrower of lack of coverage—** If, at the time of origination or at any time during the term of a loan secured by [improved real estate](/usc/42/4003.md?p=a-8) or by a mobile home located in an area that has been identified by the [Administrator](/usc/42/4003.md?p=a-6) (at the time of the origination of the loan or at any time during the term of the loan) as an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) and in which [flood](/usc/42/4121.md?p=a-1) insurance is available under the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 [[42 U.S.C. 4001](/usc/42/4001.md) et seq.], the [lender](/usc/42/4003.md?p=a-9) or [servicer](/usc/42/4003.md?p=a-11) for the loan determines that the [building](/usc/42/6881.md?p=i-3) or mobile home and any personal property securing the loan is not covered by [flood](/usc/42/4121.md?p=a-1) insurance or is covered by such insurance in an amount less than the amount required for the property pursuant to paragraph [(1)](#b-1), [(2)](#b-2), or [(3)](#b-3) of subsection (b), the [lender](/usc/42/4003.md?p=a-9) or [servicer](/usc/42/4003.md?p=a-11) shall notify the borrower under the loan that the borrower should obtain, at the borrower’s expense, an amount of [flood](/usc/42/4121.md?p=a-1) insurance for the [building](/usc/42/6881.md?p=i-3) or mobile home and such personal property that is not less than the amount under [subsection (b)(1)](#b-1), for the term of the loan. - (2) **Purchase of coverage on behalf of borrower—** If the borrower fails to purchase such [flood](/usc/42/4121.md?p=a-1) insurance within 45 days after notification under [paragraph (1)](#e-1), the [lender](/usc/42/4003.md?p=a-9) or [servicer](/usc/42/4003.md?p=a-11) for the loan shall purchase the insurance on behalf of the borrower and may charge the borrower for the cost of premiums and fees incurred by the [lender](/usc/42/4003.md?p=a-9) or [servicer](/usc/42/4003.md?p=a-11) for the loan in purchasing the insurance, including premiums or fees incurred for coverage beginning on the date on which [flood](/usc/42/4121.md?p=a-1) insurance coverage lapsed or did not provide a sufficient coverage amount. - (3) **Termination of force-placed insurance—** Within 30 days of receipt by the [lender](/usc/42/4003.md?p=a-9) or [servicer](/usc/42/4003.md?p=a-11) of a confirmation of a borrower’s existing [flood](/usc/42/4121.md?p=a-1) insurance coverage, the [lender](/usc/42/4003.md?p=a-9) or [servicer](/usc/42/4003.md?p=a-11) shall— - (A) terminate any insurance purchased by the [lender](/usc/42/4003.md?p=a-9) or [servicer](/usc/42/4003.md?p=a-11) under [paragraph (2)](#e-2); and - (B) refund to the borrower all premiums paid by the borrower for any insurance purchased by the [lender](/usc/42/4003.md?p=a-9) or [servicer](/usc/42/4003.md?p=a-11) under [paragraph (2)](#e-2) during any period during which the borrower’s [flood](/usc/42/4121.md?p=a-1) insurance coverage and the insurance coverage purchased by the [lender](/usc/42/4003.md?p=a-9) or [servicer](/usc/42/4003.md?p=a-11) were each in effect, and any related fees charged to the borrower with respect to the insurance purchased by the [lender](/usc/42/4003.md?p=a-9) or [servicer](/usc/42/4003.md?p=a-11) during such period. - (4) **Sufficiency of demonstration—** For purposes of confirming a borrower’s existing [flood](/usc/42/4121.md?p=a-1) insurance coverage, a [lender](/usc/42/4003.md?p=a-9) or [servicer](/usc/42/4003.md?p=a-11) for a loan shall accept from the borrower an insurance policy [declarations](/usc/42/247d–6e.md?p=e-4) page that includes the existing [flood](/usc/42/4121.md?p=a-1) insurance policy number and the identity of, and contact information for, the [insurance company](/usc/42/4121.md?p=a-3) or agent. - (5) **Review of determination regarding required purchase—** - (A) **In general—** The borrower and [lender](/usc/42/4003.md?p=a-9) for a loan secured by [improved real estate](/usc/42/4003.md?p=a-8) or a mobile home may jointly request the [Administrator](/usc/42/4003.md?p=a-6) to review a determination of whether the [building](/usc/42/6881.md?p=i-3) or mobile home is located in an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3). Such request shall be supported by technical information relating to the [improved real estate](/usc/42/4003.md?p=a-8) or mobile home. Not later than 45 days after the [Administrator](/usc/42/4003.md?p=a-6) receives the request, the [Administrator](/usc/42/4003.md?p=a-6) shall review the determination and provide to the borrower and the [lender](/usc/42/4003.md?p=a-9) with a letter stating whether or not the [building](/usc/42/6881.md?p=i-3) or mobile home is in an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3). The determination of the [Administrator](/usc/42/4003.md?p=a-6) shall be final. - (B) **Effect of determination—** Any [person](/usc/42/4121.md?p=a-5) to whom a borrower provides a letter issued by the [Administrator](/usc/42/4003.md?p=a-6) pursuant to [subparagraph (A)](#e-5-A), stating that the [building](/usc/42/6881.md?p=i-3) or mobile home securing the loan of the borrower is not in an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3), shall have no obligation under this title[^2] to require the purchase of [flood](/usc/42/4121.md?p=a-1) insurance for such [building](/usc/42/6881.md?p=i-3) or mobile home during the period determined by the [Administrator](/usc/42/4003.md?p=a-6), which shall be specified in the letter and shall begin on the date on which such letter is provided. - (C) **Effect of failure to respond—** If a request under [subparagraph (A)](#e-5-A) is made in connection with the origination of a loan and the [Administrator](/usc/42/4003.md?p=a-6) fails to provide a letter under [subparagraph (A)](#e-5-A) before the later of (i) the expiration of the 45-day period under such subparagraph, or (ii) the closing of the loan, no [person](/usc/42/4121.md?p=a-5) shall have an obligation under this title[^2] to require the purchase of [flood](/usc/42/4121.md?p=a-1) insurance for the [building](/usc/42/6881.md?p=i-3) or mobile home securing the loan until such letter is provided. - (6) **Applicability—** This subsection shall apply to all loans outstanding on or after September 23, 1994. - (f) **Civil monetary penalties for failure to require flood insurance or notify—** - (1) **Civil monetary penalties against regulated lenders—** Any [regulated lending institution](/usc/42/4003.md?p=a-10) that is found to have a pattern or practice of committing [violations](/usc/42/2000e–16a.md?p=c) under [paragraph (2)](#f-2) shall be assessed a civil penalty by the appropriate [Federal entity for lending regulation](/usc/42/4003.md?p=a-5) in the amount provided under [paragraph (5)](#f-5). - (2) **Lender violations—** The [violations](/usc/42/2000e–16a.md?p=c) referred to in [paragraph (1)](#f-1) shall include— - (A) making, increasing, extending, or renewing loans in [violation](/usc/42/2000e–16a.md?p=c) of— - (i) the regulations issued pursuant to [subsection (b)](#b) of this section; - (ii) the escrow requirements under [subsection (d)](#d) of this section; or - (iii) the notice requirements under section 1364 of the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 [[42 U.S.C. 4104a](/usc/42/4104a.md)]; or - (B) failure to provide notice or purchase [flood](/usc/42/4121.md?p=a-1) insurance coverage in [violation](/usc/42/2000e–16a.md?p=c) of [subsection (e)](#e) of this section. - (3) **Civil monetary penalties against GSE’s—** - (A) **In general—** If the Federal National Mortgage Association or the Federal Home Loan Mortgage [Corporation](/usc/42/2296b–7.md?p=1) is found by the [Director](/usc/42/5061.md?p=1) of the Federal [Housing](/usc/42/1490p–2.md?p=r-3) Finance Agency to have a pattern or practice of purchasing loans in [violation](/usc/42/2000e–16a.md?p=c) of the procedures established pursuant to [subsection (b)(3)](#b-3), the [Director](/usc/42/5061.md?p=1) of such [Office](/usc/42/3058f.md?p=1)[^3] shall assess a civil penalty against such [enterprise](#f-3-B) in the amount provided under paragraph (5) of this subsection. - (B) **“Enterprise” defined—** For purposes of this subsection, the term “enterprise” means the Federal National Mortgage Association or the Federal Home Loan Mortgage [Corporation](/usc/42/2296b–7.md?p=1). - (4) **Notice and hearing—** A penalty under this subsection may be issued only after notice and an opportunity for a hearing on the record. - (5) **Amount—** A civil monetary penalty under this subsection may not exceed $2,000 for each [violation](/usc/42/2000e–16a.md?p=c) under [paragraph (2)](#f-2) or [paragraph (3)](#f-3). - (6) **Lender compliance—** Notwithstanding any [State](/usc/42/4121.md?p=a-2) or local law, for purposes of this subsection, any [regulated lending institution](/usc/42/4003.md?p=a-10) that purchases [flood](/usc/42/4121.md?p=a-1) insurance or renews a contract for [flood](/usc/42/4121.md?p=a-1) insurance on behalf of or as an agent of a borrower of a loan for which [flood](/usc/42/4121.md?p=a-1) insurance is required shall be considered to have complied with the regulations issued under [subsection (b)](#b). - (7) **Effect of transfer on liability—** Any sale or other transfer of a loan by a [regulated lending institution](/usc/42/4003.md?p=a-10) that has committed a [violation](/usc/42/2000e–16a.md?p=c) under [paragraph (1)](#f-1), that occurs subsequent to the [violation](/usc/42/2000e–16a.md?p=c), shall not affect the liability of the transferring [lender](/usc/42/4003.md?p=a-9) with respect to any penalty under this subsection. A [lender](/usc/42/4003.md?p=a-9) shall not be liable for any [violations](/usc/42/2000e–16a.md?p=c) relating to a loan committed by another [regulated lending institution](/usc/42/4003.md?p=a-10) that previously held the loan. - (8) **Deposit of penalties—** Any penalties collected under this subsection shall be paid into the National [Flood](/usc/42/4121.md?p=a-1) Mitigation [Fund](/usc/42/12854.md?p=3) under section 1367 of the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 [[42 U.S.C. 4104d](/usc/42/4104d.md)]. - (9) **Additional penalties—** Any penalty under this subsection shall be in addition to any civil remedy or criminal penalty otherwise available. - (10) **Statute of limitations—** No penalty may be imposed under this subsection after the expiration of the 4-year period beginning on the date of the occurrence of the [violation](/usc/42/2000e–16a.md?p=c) for which the penalty is authorized under this subsection. - (g) **Other actions to remedy pattern of noncompliance—** - (1) **Authority of Federal entities for lending regulation—** A [Federal entity for lending regulation](/usc/42/4003.md?p=a-5) may require a [regulated lending institution](/usc/42/4003.md?p=a-10) to take such remedial actions as are necessary to ensure that the [regulated lending institution](/usc/42/4003.md?p=a-10) complies with the requirements of the [national flood insurance program](/usc/42/4004.md?p=a-4) if the [Federal agency](/usc/42/4003.md?p=a-2) for lending regulation makes a determination under [paragraph (2)](#g-2) regarding the [regulated lending institution](/usc/42/4003.md?p=a-10). - (2) **Determination of violations—** A determination under this paragraph shall be a finding that— - (A) the [regulated lending institution](/usc/42/4003.md?p=a-10) has engaged in a pattern and practice of noncompliance in [violation](/usc/42/2000e–16a.md?p=c) of the regulations issued pursuant to subsection [(b)](#b), [(d)](#d), or [(e)](#e) or the notice requirements under section 1364 of the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 [[42 U.S.C. 4104a](/usc/42/4104a.md)]; and - (B) the [regulated lending institution](/usc/42/4003.md?p=a-10) has not demonstrated measurable improvement in compliance despite the assessment of civil monetary penalties under [subsection (f)](#f). - (h) **Fee for determining location—** Notwithstanding any other Federal or [State](/usc/42/4121.md?p=a-2) law, any [person](/usc/42/4121.md?p=a-5) who makes a loan secured by [improved real estate](/usc/42/4003.md?p=a-8) or a mobile home or any [servicer](/usc/42/4003.md?p=a-11) for such a loan may charge a reasonable fee for the costs of determining whether the [building](/usc/42/6881.md?p=i-3) or mobile home securing the loan is located in an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3), but only in accordance with the following requirements: - (1) **Borrower fee—** The borrower under such a loan may be charged the fee, but only if the determination— - (A) is made pursuant to the making, increasing, extending, or renewing of the loan that is initiated by the borrower; - (B) is made pursuant to a revision or updating under section 1360(f)[^4] [[42 U.S.C. 4101(f)](/usc/42/4101.md?p=f)] of the floodplain areas and [flood](/usc/42/4121.md?p=a-1)-risk zones or publication of a notice or compendia under subsection (h) or (i) of section 1360[^4] [[42 U.S.C. 4101(h)](/usc/42/4101.md?p=h), (i)] that affects the area in which the [improved real estate](/usc/42/4003.md?p=a-8) or mobile home securing the loan is located or that, in the determination of the [Administrator](/usc/42/4003.md?p=a-6), may reasonably be considered to require a determination under this subsection; or - (C) results in the purchase of [flood](/usc/42/4121.md?p=a-1) insurance coverage pursuant to the requirement under [subsection (e)(2)](#e-2). - (2) **Purchaser or transferee fee—** The purchaser or transferee of such a loan may be charged the fee in the case of sale or transfer of the loan. # §4013. Nature and limitation of insurance coverage - (a) **Regulations respecting general terms and conditions of insurability—** The [Administrator](/usc/42/4003.md?p=a-6) shall from time to time, after consultation with the [advisory committee](/usc/42/7703.md?p=9) authorized under [section 4025 of this title](/usc/42/4025.md), appropriate [representatives](/usc/42/3058f.md?p=5) of the pool formed or otherwise created under [section 4051 of this title](/usc/42/4051.md), and appropriate [representatives](/usc/42/3058f.md?p=5) of the insurance authorities of the respective [States](/usc/42/4121.md?p=a-2), provide by regulation for general terms and conditions of insurability which shall be applicable to properties eligible for [flood](/usc/42/4121.md?p=a-1) insurance coverage under [section 4012 of this title](/usc/42/4012.md), including— - (1) the types, classes, and locations of any such properties which shall be eligible for [flood](/usc/42/4121.md?p=a-1) insurance; - (2) the nature and limits of loss or damage in any areas (or subdivisions thereof) which may be covered by such insurance; - (3) the classification, limitation, and rejection of any risks which may be advisable; - (4) appropriate minimum premiums; - (5) appropriate loss-deductibles; and - (6) any other terms and conditions relating to insurance coverage or exclusion which may be necessary to carry out the purposes of this chapter. - (b) **Regulations respecting amount of coverage—** In addition to any other terms and conditions under [subsection (a)](#a), such regulations shall provide that— - (1) any [flood](/usc/42/4121.md?p=a-1) insurance coverage based on chargeable premium rates under [section 4015 of this title](/usc/42/4015.md) which are less than the estimated premium rates under [section 4014(a)(1) of this title](/usc/42/4014.md?p=a-1) shall not exceed— - (A) in the case of [residential properties](/usc/42/2304.md?p=m)— - (i) $35,000 aggregate liability for any [single](/usc/42/2304.md?p=m)-[family](/usc/42/290ff–4.md?p=d-2) dwelling, and $100,000 for any residential structure containing more than one dwelling [unit](/usc/42/1395w–114b.md?p=g-2), - (ii) $10,000 aggregate liability per dwelling [unit](/usc/42/1395w–114b.md?p=g-2) for any contents related to such [unit](/usc/42/1395w–114b.md?p=g-2), and - (iii) in the [States](/usc/42/4121.md?p=a-2) of Alaska and Hawaii, and in the Virgin Islands and Guam; the limits provided in [clause (i)](#b-1-A-i) of this sentence shall be: $50,000 aggregate liability for any [single](/usc/42/2304.md?p=m)-[family](/usc/42/290ff–4.md?p=d-2) dwelling, and $150,000 for any residential structure containing more than one dwelling [unit](/usc/42/1395w–114b.md?p=g-2); - (B) in the case of business properties which are owned or leased and operated by small business concerns, an aggregate liability with respect to any [single](/usc/42/2304.md?p=m) structure, including any contents thereof related to premises of small business occupants (as that term is defined by the [Administrator](/usc/42/4003.md?p=a-6)), which shall be equal to (i) $100,000 plus (ii) $100,000 multiplied by the number of such occupants and shall be allocated among such occupants (or among the occupant or occupants and the [owner](/usc/42/13641.md?p=4)) under regulations prescribed by the [Administrator](/usc/42/4003.md?p=a-6); except that the aggregate liability for the structure itself may in no case exceed $100,000; and - (C) in the case of church properties and any other properties which may become eligible for [flood](/usc/42/4121.md?p=a-1) insurance under [section 4012 of this title](/usc/42/4012.md)— - (i) $100,000 aggregate liability for any [single](/usc/42/2304.md?p=m) structure, and - (ii) $100,000 aggregate liability per [unit](/usc/42/1395w–114b.md?p=g-2) for any contents related to such [unit](/usc/42/1395w–114b.md?p=g-2); and - (2) in the case of any residential [building](/usc/42/6881.md?p=i-3) designed for the occupancy of from 1 to 4 [families](/usc/42/12704.md?p=11) for which the risk premium rate is determined in accordance with the provisions of [section 4014(a)(1) of this title](/usc/42/4014.md?p=a-1), additional [flood](/usc/42/4121.md?p=a-1) insurance in excess of the limits specified in clause (i) of subparagraph (A) of [paragraph (1)](#b-1) shall be made available, with respect to any [single](/usc/42/2304.md?p=m) such [building](/usc/42/6881.md?p=i-3), up to an aggregate liability (including such limits specified in [paragraph (1)(A)(i)](#b-1-A-i)) of $250,000; - (3) in the case of any [residential property](/usc/42/2304.md?p=m) for which the risk premium rate is determined in accordance with the provisions of [section 4014(a)(1) of this title](/usc/42/4014.md?p=a-1), additional [flood](/usc/42/4121.md?p=a-1) insurance in excess of the limits specified in clause (ii) of subparagraph (A) of [paragraph (1)](#b-1) shall be made available to every insured upon renewal and every applicant for insurance so as to enable any such insured or applicant to receive coverage up to a total amount (including such limits specified in [paragraph (1)(A)(ii)](#b-1-A-ii)) of $100,000; - (4) in the case of any nonresidential [building](/usc/42/6881.md?p=i-3), including a church, for which the risk premium rate is determined in accordance with the provisions of [section 4014(a)(1) of this title](/usc/42/4014.md?p=a-1), additional [flood](/usc/42/4121.md?p=a-1) insurance in excess of the limits specified in subparagraphs [(B)](#b-1-B) and [(C)](#b-1-C) of paragraph (1) shall be made available with respect to any [single](/usc/42/2304.md?p=m) such [building](/usc/42/6881.md?p=i-3), up to an aggregate liability (including such limits specified in subparagraph [(B)](#b-1-B) or [(C)](#b-1-C) of paragraph (1), as applicable) of $500,000, and coverage shall be made available up to a total of $500,000 aggregate liability for contents owned by the [building](/usc/42/6881.md?p=i-3) [owner](/usc/42/13641.md?p=4) and $500,000 aggregate liability for each [unit](/usc/42/1395w–114b.md?p=g-2) within the [building](/usc/42/6881.md?p=i-3) for contents owned by the tenant; and - (5) any [flood](/usc/42/4121.md?p=a-1) insurance coverage which may be made available in excess of the limits specified in subparagraph [(A)](#b-1-A), [(B)](#b-1-B), or [(C)](#b-1-C) of paragraph (1), shall be based only on chargeable premium rates under [section 4015 of this title](/usc/42/4015.md), which are not less than the estimated premium rates under [section 4014(a)(1) of this title](/usc/42/4014.md?p=a-1), and the amount of such excess coverage shall not in any case exceed an amount equal to the applicable limit so specified (or allocated) under paragraph [(1)(C)](#b-1-C), [(2)](#b-2), [(3)](#b-3), or [(4)](#b-4), as applicable. - (c) **Effective date of policies—** - (1) **Waiting period—** Except as provided in [paragraph (2)](#c-2), coverage under a new contract for [flood](/usc/42/4121.md?p=a-1) insurance coverage under this chapter entered into after September 23, 1994, and any [modification](/usc/42/7501.md?p=4) to coverage under an existing [flood](/usc/42/4121.md?p=a-1) insurance contract made after September 23, 1994, shall become effective upon the expiration of the 30-day period beginning on the date that all obligations for such coverage (including completion of the application and payment of any initial premiums owed) are satisfactorily completed. - (2) **Exception—** The provisions of [paragraph (1)](#c-1) shall not apply to— - (A) the initial purchase of [flood](/usc/42/4121.md?p=a-1) insurance coverage under this chapter when the purchase of insurance is in connection with the making, increasing, extension, or renewal of a loan; - (B) the initial purchase of [flood](/usc/42/4121.md?p=a-1) insurance coverage pursuant to a revision or updating of floodplain areas or [flood](/usc/42/4121.md?p=a-1)-risk zones under [section 4101(f) of this title](/usc/42/4101.md?p=f), if such purchase occurs during the 1-year period beginning upon publication of notice of the revision or updating under [section 4101(h) of this title](/usc/42/4101.md?p=h); or - (C) the initial purchase of [flood](/usc/42/4121.md?p=a-1) insurance coverage for private property if— - (i) the [Administrator](/usc/42/4003.md?p=a-6) determines that the property is affected by flooding on Federal land that is a result of, or is exacerbated by, post-wildfire conditions, after consultation with an authorized [employee](/usc/42/1320a–7h.md?p=e-7) of the [Federal agency](/usc/42/4003.md?p=a-2) that has jurisdiction of the land on which the wildfire that caused the post-wildfire conditions occurred; and - (ii) the [flood](/usc/42/4121.md?p=a-1) insurance coverage was purchased not later than 60 days after the fire containment date, as determined by the appropriate Federal [employee](/usc/42/1320a–7h.md?p=e-7), relating to the wildfire that caused the post-wildfire conditions described in [clause (i)](#c-2-C-i). - (d) **Optional high-deductible policies for residential properties—** - (1) **Availability—** In the case of [residential properties](/usc/42/2304.md?p=m), the [Administrator](/usc/42/4003.md?p=a-6) shall make [flood](/usc/42/4121.md?p=a-1) insurance coverage available, at the option of the insured, that provides for a loss-deductible for damage to the covered property in various amounts, up to and including $10,000. - (2) **Disclosure—** - (A) **Form—** The [Administrator](/usc/42/4003.md?p=a-6) shall provide the information described in [subparagraph (B)](#d-2-B) clearly and conspicuously on the application form for [flood](/usc/42/4121.md?p=a-1) insurance coverage or on a separate form, segregated from all unrelated information and other required disclosures. - (B) **Information—** The information described in this subparagraph is— - (i) information sufficient to inform the applicant of the availability of the coverage option required by [paragraph (1)](#d-1) to applicants for [flood](/usc/42/4121.md?p=a-1) insurance coverage; and - (ii) a statement explaining the effect of a loss-deductible and that, in the event of an insured loss, the insured is responsible out-of-pocket for losses to the extent of the deductible selected. # §4013a. Policy disclosures - (a) **In general—** Notwithstanding any other provision of law, in addition to any other disclosures that may be required, each policy under the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) shall [state](/usc/42/4121.md?p=a-2) all conditions, exclusions, and other limitations pertaining to coverage under the subject policy, regardless of the underlying insurance product, in plain English, in boldface type, and in a font size that is twice the size of the text of the body of the policy. - (b) **Violations—** The [Administrator](/usc/42/4003.md?p=a-6) may impose a civil penalty of not more than $50,000 on any [person](/usc/42/4121.md?p=a-5) that fails to comply with [subsection (a)](#a). # §4014. Estimates of premium rates - (a) **Studies and investigations—** The [Administrator](/usc/42/4003.md?p=a-6) is authorized to undertake and carry out such studies and investigations and receive or [exchange](/usc/42/300gg–91.md?p=d-21) such information as may be necessary to estimate, and shall from time to time estimate, on an area, subdivision, or other appropriate basis— - (1) the risk premium rates for [flood](/usc/42/4121.md?p=a-1) insurance which— - (A) based on consideration of— - (i) the risk involved and accepted actuarial principles; and - (ii) the [flood](/usc/42/4121.md?p=a-1) mitigation activities that an [owner](/usc/42/13641.md?p=4) or lessee has undertaken on a property, including differences in the risk involved due to land use measures, floodproofing, [flood](/usc/42/4121.md?p=a-1) forecasting, and similar measures, and - (B) including— - (i) the applicable operating costs and allowances set forth in the schedules prescribed under [section 4018 of this title](/usc/42/4018.md) and reflected in such rates, - (ii) any administrative expenses (or portion of such expenses) of carrying out the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) which, in his discretion, should properly be reflected in such rates, - (iii) any remaining administrative expenses incurred in carrying out the [flood](/usc/42/4121.md?p=a-1) insurance and floodplain management [programs](/usc/42/274l–1.md?p=4) (including the costs of mapping activities under [section 4101 of this title](/usc/42/4101.md)) not included under [clause (ii)](#a-1-B-ii), which shall be recovered by a fee charged to policyholders and such fee shall not be subject to any agents’ [commissions](/usc/42/2000ff.md?p=1), company expense allowances, or [State](/usc/42/4121.md?p=a-2) or local premium taxes, and - (iv) all costs, as prescribed by principles and [standards](/usc/42/1320d.md?p=7) of practice in ratemaking adopted by the American Academy of Actuaries and the Casualty Actuarial Society, including— - (I) an estimate of the expected value of future costs, - (II) all costs associated with the transfer of risk, and - (III) the costs associated with an individual risk transfer with respect to risk classes, as defined by the [Administrator](/usc/42/4003.md?p=a-6), would be required in order to make such insurance available on an actuarial basis for any types and classes of properties for which insurance coverage is available under [section 4012(a) of this title](/usc/42/4012.md?p=a) (or is recommended to the Congress under [section 4012(b) of this title](/usc/42/4012.md?p=b)); - (2) the rates, if less than the rates estimated under [paragraph (1)](#a-1), which would be reasonable, would encourage prospective insureds to purchase [flood](/usc/42/4121.md?p=a-1) insurance, and would be consistent with the purposes of this chapter, and which, together with a fee charged to policyholders that shall not be not subject to any agents’ [commission](/usc/42/2000ff.md?p=1), company expenses allowances, or [State](/usc/42/4121.md?p=a-2) or local premium taxes, shall include any administrative expenses incurred in carrying out the [flood](/usc/42/4121.md?p=a-1) insurance and floodplain management [programs](/usc/42/274l–1.md?p=4) (including the costs of mapping activities under [section 4101 of this title](/usc/42/4101.md)), except that the [Administrator](/usc/42/4003.md?p=a-6) shall not estimate rates under this paragraph for— - (A) any [residential property](/usc/42/2304.md?p=m) which is not the primary residence of an individual; - (B) any [severe repetitive loss property](#h); - (C) any property that has incurred [flood](/usc/42/4121.md?p=a-1)-related damage in which the cumulative amounts of payments under this chapter equaled or exceeded the fair market value of such property; - (D) any business property; or - (E) any property which on or after July 6, 2012, has experienced or sustained— - (i) substantial damage exceeding 50 percent of the fair market value of such property; or - (ii) substantial improvement exceeding 50 percent of the fair market value of such property; and - (3) the extent, if any, to which federally assisted or other [flood](/usc/42/4121.md?p=a-1) protection measures initiated after August 1, 1968, affect such rates. - (b) **Utilization of services of other Departments and agencies—** In carrying out [subsection (a)](#a), the [Administrator](/usc/42/4003.md?p=a-6) shall, to the maximum extent feasible and on a reimbursement basis, utilize the services of the Department of the Army, the Department of the Interior, the Department of Agriculture, the Department of [Commerce](/usc/42/6311.md?p=7), and the Tennessee Valley Authority, and, as appropriate, other Federal departments or agencies, and for such purposes may enter into [agreements](/usc/42/1320b–8.md?p=a-3-A) or other appropriate arrangements with any [persons](/usc/42/4121.md?p=a-5). - (c) **Priority to studies and investigations in States or areas evidencing positive interest in securing insurance under program—** The [Administrator](/usc/42/4003.md?p=a-6) shall give priority to conducting studies and investigations and making estimates under this section in those [States](/usc/42/4121.md?p=a-2) or areas (or subdivisions thereof) which he has determined have evidenced a positive interest in securing [flood](/usc/42/4121.md?p=a-1) insurance coverage under the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4). - (d) **Parishes of Louisiana; premium rates—** Notwithstanding any other provision of law, any structure existing on December 31, 1973, and located within Avoyelles, Evangeline, Rapides, or Saint Landry Parish in the [State](/usc/42/4121.md?p=a-2) of Louisiana, which the [Secretary](/usc/42/242q–4.md?p=2) determines is subject to additional [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) as a result of the [construction](/usc/42/7479.md?p=2-C) or operation of the Atchafalaya Basin Levee System, shall be eligible for [flood](/usc/42/4121.md?p=a-1) insurance under this chapter (if and to the extent it is eligible for such insurance under the other provisions of this chapter) at premium rates that shall not exceed those which would be applicable if such additional [hazards](/usc/42/5165f.md?p=a-3) did not exist. - (e) **Eligibility of community making adequate progress on construction of flood protection system for rates not exceeding those applicable to completed flood protection system; determination of adequate progress—** Notwithstanding any other provision of law, any [community](/usc/42/4003.md?p=a-1) that has made adequate progress, acceptable to the [Administrator](/usc/42/4003.md?p=a-6), on the [construction](/usc/42/7479.md?p=2-C) or reconstruction of a [flood](/usc/42/4121.md?p=a-1) protection system which will afford [flood](/usc/42/4121.md?p=a-1) protection for the one-hundred year frequency [flood](/usc/42/4121.md?p=a-1) as determined by the [Administrator](/usc/42/4003.md?p=a-6), shall be eligible for [flood](/usc/42/4121.md?p=a-1) insurance under this chapter (if and to the extent it is eligible for such insurance under the other provisions of this chapter) at premium rates not exceeding those which would be applicable under this section if such [flood](/usc/42/4121.md?p=a-1) protection system had been completed. The [Administrator](/usc/42/4003.md?p=a-6) shall find that adequate progress on the [construction](/usc/42/7479.md?p=2-C) or reconstruction of a [flood](/usc/42/4121.md?p=a-1) protection system, based on the present value of the completed [flood](/usc/42/4121.md?p=a-1) protection system, has been made only if: (1) 100 percent of the cost of the system has been authorized; (2) at least 60 percent of the cost of the system has been appropriated; (3) at least 50 percent of the cost of the system has been expended; and (4) the system is at least 50 percent completed. Notwithstanding any other provision of law, in determining whether a [community](/usc/42/4003.md?p=a-1) has made adequate progress on the [construction](/usc/42/7479.md?p=2-C), reconstruction, or improvement of a [flood](/usc/42/4121.md?p=a-1) protection system, the [Administrator](/usc/42/4003.md?p=a-6) shall consider all sources of funding, including Federal, [State](/usc/42/4121.md?p=a-2), and local [funds](/usc/42/12854.md?p=3). - (f) **Availability of flood insurance in communities restoring disaccredited flood protection systems; criteria; rates—** Notwithstanding any other provision of law, this subsection shall apply to riverine and coastal levees that are located in a [community](/usc/42/4003.md?p=a-1) which has been determined by the [Administrator](/usc/42/4003.md?p=a-6) of the Federal Emergency Management Agency to be in the process of restoring [flood](/usc/42/4121.md?p=a-1) protection afforded by a [flood](/usc/42/4121.md?p=a-1) protection system that had been previously [accredited](/usc/42/300w–9.md?p=c-2) on a [Flood](/usc/42/4121.md?p=a-1) Insurance Rate Map as providing 100-year frequency [flood](/usc/42/4121.md?p=a-1) protection but no longer does so, and shall apply without regard to the level of Federal funding of or participation in the [construction](/usc/42/7479.md?p=2-C), reconstruction, or improvement of the [flood](/usc/42/4121.md?p=a-1) protection system. Except as provided in this subsection, in such a [community](/usc/42/4003.md?p=a-1), [flood](/usc/42/4121.md?p=a-1) insurance shall be made available to those properties impacted by the disaccreditation of the [flood](/usc/42/4121.md?p=a-1) protection system at premium rates that do not exceed those which would be applicable to any property located in an area of special [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3), the [construction](/usc/42/7479.md?p=2-C) of which was started prior to the effective date of the initial [Flood](/usc/42/4121.md?p=a-1) Insurance Rate Map published by the [Administrator](/usc/42/4003.md?p=a-6) for the [community](/usc/42/4003.md?p=a-1) in which such property is located. A revised [Flood](/usc/42/4121.md?p=a-1) Insurance Rate Map shall be prepared for the [community](/usc/42/4003.md?p=a-1) to delineate as Zone AR the areas of special [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) that result from the disaccreditation of the [flood](/usc/42/4121.md?p=a-1) protection system. A [community](/usc/42/4003.md?p=a-1) will be considered to be in the process of restoration if— - (1) the [flood](/usc/42/4121.md?p=a-1) protection system has been deemed restorable by a [Federal agency](/usc/42/4003.md?p=a-2) in consultation with the local [project](/usc/42/11360.md?p=20) sponsor; - (2) a minimum level of [flood](/usc/42/4121.md?p=a-1) protection is still provided to the [community](/usc/42/4003.md?p=a-1) by the disaccredited system; and - (3) restoration of the [flood](/usc/42/4121.md?p=a-1) protection system is scheduled to occur within a designated time period and in accordance with a progress plan negotiated between the [community](/usc/42/4003.md?p=a-1) and the Federal Emergency Management Agency. [Communities](/usc/42/4003.md?p=a-1) that the [Administrator](/usc/42/4003.md?p=a-6) of the Federal Emergency Management Agency determines to meet the criteria set forth in paragraphs [(1)](#f-1) and [(2)](#f-2) as of January 1, 1992, shall not be subject to revised [Flood](/usc/42/4121.md?p=a-1) Insurance Rate Maps that contravene the intent of this subsection. Such [communities](/usc/42/4003.md?p=a-1) shall remain eligible for C zone rates for properties located in zone AR for any policy written prior to promulgation of final regulations for this section. Floodplain management criteria for such [communities](/usc/42/4003.md?p=a-1) shall not require the elevation of improvements to existing structures and shall not exceed 3 feet above existing grade for new [construction](/usc/42/7479.md?p=2-C), provided the base [flood](/usc/42/4121.md?p=a-1) elevation based on the disaccredited [flood](/usc/42/4121.md?p=a-1) control system does not exceed five feet above existing grade, or the remaining new [construction](/usc/42/7479.md?p=2-C) in such [communities](/usc/42/4003.md?p=a-1) is limited to infill sites, rehabilitation of existing structures, or redevelopment of previously developed areas. The [Administrator](/usc/42/4003.md?p=a-6) of the Federal Emergency Management Agency shall develop and promulgate regulations to implement this subsection, including minimum floodplain management criteria, within 24 months after October 28, 1992. - (g) **No extension of subsidy to new policies or lapsed policies—** The [Administrator](/usc/42/4003.md?p=a-6) shall not provide [flood](/usc/42/4121.md?p=a-1) insurance to prospective insureds at rates less than those estimated under [subsection (a)(1)](#a-1), as required by [paragraph (2)](#g-2) of that subsection, for— - (1) any policy under the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) that has lapsed in coverage,,[^1] unless the decision of the policy holder to permit a lapse in [flood](/usc/42/4121.md?p=a-1) insurance coverage was as a result of the property covered by the policy no longer being required to retain such coverage; or - (2) any prospective insured who refuses to accept any offer for mitigation assistance by the [Administrator](/usc/42/4003.md?p=a-6) (including an offer to relocate), including an offer of mitigation assistance— - (A) following a [major disaster](/usc/42/5302.md?p=a-25), as defined in [section 5122 of this title](/usc/42/5122.md); or - (B) in connection with— - (i) a repetitive loss property; or - (ii) a [severe repetitive loss property](#h). - (h) **Definition—** In this section, the term “severe repetitive loss property” has the following meaning: - (1) **Single-family properties—** In the case of a property consisting of 1 to 4 residences, such term means a property that— - (A) is covered under a contract for [flood](/usc/42/4121.md?p=a-1) insurance made available under this chapter; and - (B) has incurred [flood](/usc/42/4121.md?p=a-1)-related damage— - (i) for which 4 or more separate [claims](/usc/42/1320a–7a.md?p=i-2) payments have been made under [flood](/usc/42/4121.md?p=a-1) insurance coverage under this subchapter, with the amount of each such [claim](/usc/42/1320a–7a.md?p=i-2) exceeding $5,000, and with the cumulative amount of such [claims](/usc/42/1320a–7a.md?p=i-2) payments exceeding $20,000; or - (ii) for which at least 2 separate [claims](/usc/42/1320a–7a.md?p=i-2) payments have been made under such coverage, with the cumulative amount of such [claims](/usc/42/1320a–7a.md?p=i-2) exceeding the value of the property. - (2) **Multifamily properties—** In the case of a property consisting of 5 or more residences, such term shall have such meaning as the [Director](/usc/42/5061.md?p=1)[^2] shall by regulation provide. # §4015. Chargeable premium rates - (a) **Establishment; terms and conditions—** On the basis of estimates made under [section 4014 of this title](/usc/42/4014.md), and such other information as may be necessary, the [Administrator](/usc/42/4003.md?p=a-6) shall from time to time prescribe, after providing notice— - (1) chargeable premium rates for any types and classes of properties for which insurance coverage shall be available under [section 4012 of this title](/usc/42/4012.md) (at less than the estimated risk premium rates under [section 4014(a)(1) of this title](/usc/42/4014.md?p=a-1), where necessary), and - (2) the terms and conditions under which, and the areas (including subdivisions thereof) within which, such rates shall apply. - (b) **Considerations for rates—** Such rates shall, insofar as practicable, be— - (1) based on a consideration of the respective risks involved, including differences in risks due to land use measures, [flood](/usc/42/4121.md?p=a-1)-proofing, [flood](/usc/42/4121.md?p=a-1) forecasting, and similar measures; - (2) adequate, on the basis of accepted actuarial principles, to provide reserves for anticipated losses, or, if less than such amount, consistent with the objective of making [flood](/usc/42/4121.md?p=a-1) insurance available where necessary at reasonable rates so as to encourage prospective insureds to purchase such insurance and with the purposes of this chapter; - (3) adequate, together with the fee under paragraph (1)(B)(iii) or (2) of [section 4014(a) of this title](/usc/42/4014.md?p=a), to provide for any administrative expenses of the [flood](/usc/42/4121.md?p=a-1) insurance and floodplain management [programs](/usc/42/274l–1.md?p=4) (including the costs of mapping activities under [section 4101 of this title](/usc/42/4101.md)); - (4) stated so as to reflect the basis for such rates, including the differences (if any) between the estimated risk premium rates under [section 4014(a)(1) of this title](/usc/42/4014.md?p=a-1) and the estimated rates under [section 4014(a)(2) of this title](/usc/42/4014.md?p=a-2); and - (5) adequate, on the basis of accepted actuarial principles, to cover the average historical loss year obligations incurred by the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3). - (c) **Actuarial rate properties—** Subject only to the limitations provided under paragraphs [(1)](#c-1) and [(2)](#c-2), the chargeable rate shall not be less than the applicable estimated risk premium rate for such area (or subdivision thereof) under [section 4014(a)(1) of this title](/usc/42/4014.md?p=a-1) with respect to the following properties: - (1) **Post-firm properties—** Any property the [construction](/usc/42/7479.md?p=2-C) or substantial improvement of which the [Administrator](/usc/42/4003.md?p=a-6) determines has been started after December 31, 1974, or started after the effective date of the initial rate map published by the [Administrator](/usc/42/4003.md?p=a-6) under paragraph (2) of [section 4101 of this title](/usc/42/4101.md) for the area in which such property is located, whichever is later, except that the chargeable rate for properties under this paragraph shall be subject to the limitation under [subsection (e)](#e). - (2) **Certain leased coastal and river properties—** Any property leased from the Federal Government (including residential and nonresidential properties) that the [Administrator](/usc/42/4003.md?p=a-6) determines is located on the river-facing side of any dike, levee, or other riverine [flood](/usc/42/4121.md?p=a-1) control structure, or seaward of any seawall or other coastal [flood](/usc/42/4121.md?p=a-1) control structure. - (d) **Payment of certain sums to Administrator; deposits in Fund—** With respect to any chargeable premium rate prescribed under this section, a sum equal to the portion of the rate that covers any administrative expenses of carrying out the [flood](/usc/42/4121.md?p=a-1) insurance and floodplain management [programs](/usc/42/274l–1.md?p=4) which have been estimated under paragraphs (1)(B)(ii) and (1)(B)(iii) of [section 4014(a) of this title](/usc/42/4014.md?p=a) or [paragraph (2)](/usc/42/4014.md?p=a-2) of such section (including the fees under such paragraphs), shall be paid to the [Administrator](/usc/42/4003.md?p=a-6). The [Administrator](/usc/42/4003.md?p=a-6) shall deposit the sum in the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) established under [section 4017 of this title](/usc/42/4017.md). - (e) **Annual limitation on premium increases—** Except with respect to properties described under [paragraph (2)](#c-2) of subsection (c), and notwithstanding any other provision of this chapter— - (1) the chargeable risk premium rate for [flood](/usc/42/4121.md?p=a-1) insurance under this chapter for any property may not be increased by more than 18 percent each year, except— - (A) as provided in [paragraph (4)](#e-4); - (B) in the case of property identified under [section 4014(g) of this title](/usc/42/4014.md?p=g); or - (C) in the case of a property that— - (i) is located in a [community](/usc/42/4003.md?p=a-1) that has experienced a rating downgrade under the [community](/usc/42/4003.md?p=a-1) rating system [program](/usc/42/274l–1.md?p=4) carried out under [section 4022(b) of this title](/usc/42/4022.md?p=b); - (ii) is covered by a policy with respect to which the policyholder has— - (I) decreased the amount of the deductible; or - (II) increased the amount of coverage; or - (iii) was misrated; - (2) the chargeable risk premium rates for [flood](/usc/42/4121.md?p=a-1) insurance under this chapter for any properties initially rated under [section 4014(a)(2) of this title](/usc/42/4014.md?p=a-2) within any [single](/usc/42/2304.md?p=m) risk classification, excluding properties for which the chargeable risk premium rate is not less than the applicable estimated risk premium rate under [section 4014(a)(1) of this title](/usc/42/4014.md?p=a-1), shall be increased by an amount that results in an average of such rate increases for properties within the risk classification during any 12-month period of not less than 5 percent of the average of the risk premium rates for such properties within the risk classification upon the commencement of such 12-month period; - (3) the chargeable risk premium rates for [flood](/usc/42/4121.md?p=a-1) insurance under this chapter for any properties within any [single](/usc/42/2304.md?p=m) risk classification may not be increased by an amount that would result in the average of such rate increases for properties within the risk classification during any 12-month period exceeding 15 percent of the average of the risk premium rates for properties within the risk classification upon the commencement of such 12-month period; and - (4) the chargeable risk premium rates for [flood](/usc/42/4121.md?p=a-1) insurance under this chapter for any properties described in subparagraphs (A) through (E) of [section 4014(a)(2) of this title](/usc/42/4014.md?p=a-2) shall be increased by 25 percent each year, until the average risk premium rate for such properties is equal to the average of the risk premium rates for properties described under [paragraph (3)](#e-3). - (f) **Adjustment of premium—** Notwithstanding any other provision of law, if the [Administrator](/usc/42/4003.md?p=a-6) determines that the holder of a [flood](/usc/42/4121.md?p=a-1) insurance policy issued under this chapter is paying a lower premium than is required under this section due to an error in the [flood](/usc/42/4121.md?p=a-1) plain determination, the [Administrator](/usc/42/4003.md?p=a-6) may only prospectively charge the higher premium rate. - (g) **Frequency of premium collection—** With respect to any chargeable premium rate prescribed under this section, the [Administrator](/usc/42/4003.md?p=a-6) shall provide policyholders that are not required to escrow their premiums and fees for [flood](/usc/42/4121.md?p=a-1) insurance as set forth under [section 4012a of this title](/usc/42/4012a.md) with the option of paying their premiums annually or monthly. - (h) **Rule of construction—** For purposes of this section, the calculation of an “average historical loss year”— - (1) includes catastrophic loss years; and - (2) shall be computed in accordance with generally accepted actuarial principles. - (i) **Rates for properties newly mapped into areas with special flood hazards—** Notwithstanding [subsection (f)](#f), the premium rate for [flood](/usc/42/4121.md?p=a-1) insurance under this chapter that is purchased on or after March 21, 2014— - (1) on a property located in an area not previously designated as having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) and that, pursuant to any issuance, revision, updating, or other change in a [flood](/usc/42/4121.md?p=a-1) insurance map, becomes designated as such an area; and - (2) where such [flood](/usc/42/4121.md?p=a-1) insurance premium rate is calculated under subsection (a)(1) of [section 4014 of this title](/usc/42/4014.md), shall for the first policy year be the preferred risk premium for the property and upon renewal shall be calculated in accordance with [subsection (e)](#e) of this section until the rate reaches the rate calculated under subsection (a)(1) of [section 4014 of this title](/usc/42/4014.md). - (j) **Premiums and reports—** In setting premium risk rates, in addition to striving to achieve the objectives of this chapter the [Administrator](/usc/42/4003.md?p=a-6) shall also strive to minimize the number of policies with annual premiums that exceed one percent of the total coverage provided by the policy. For any policies premiums that exceed this one percent threshold, the [Administrator](/usc/42/4003.md?p=a-6) shall report such exceptions to the Committee on Financial Services of the House of [Representatives](/usc/42/3058f.md?p=5) and the Committee on Banking, [Housing](/usc/42/1490p–2.md?p=r-3), and Urban Affairs of the Senate. - (k) **Consideration of mitigation methods—** In calculating the risk premium rate charged for [flood](/usc/42/4121.md?p=a-1) insurance for a property under this section, the [Administrator](/usc/42/4003.md?p=a-6) shall take into account the implementation of any mitigation method identified by the [Administrator](/usc/42/4003.md?p=a-6) in the guidance issued under [section 4102(d) of this title](/usc/42/4102.md?p=d). - (l) **Clear communications—** The [Administrator](/usc/42/4003.md?p=a-6) shall clearly communicate full [flood](/usc/42/4121.md?p=a-1) risk determinations to individual property [owners](/usc/42/13641.md?p=4) regardless of whether their premium rates are full actuarial rates. - (m) **Protection of small businesses, non-profits, houses of worship, and residences—** - (1) **Report—** Not later than 18 months after March 21, 2014,[^1] and semiannually thereafter, the [Administrator](/usc/42/4003.md?p=a-6) shall monitor and report to Committee on Financial Services of the House [Representatives](/usc/42/3058f.md?p=5) and the Committee on Banking, [Housing](/usc/42/1490p–2.md?p=r-3), and Urban Affairs of the Senate, the [Administrator](/usc/42/4003.md?p=a-6)’s assessment of the impact, if any, of the rate increases required under subparagraphs (A) and (D) of [section 4014(a)(2) of this title](/usc/42/4014.md?p=a-2) and the surcharges required under [section 4015a of this title](/usc/42/4015a.md) on the affordability of [flood](/usc/42/4121.md?p=a-1) insurance for— - (A) small businesses with less than 100 [employees](/usc/42/1320a–7h.md?p=e-7); - (B) non-profit entities; - (C) houses of worship; and - (D) residences with a value equal to or less than 25 percent of the median home value of properties in the [State](/usc/42/4121.md?p=a-2) in which the property is located. - (2) **Recommendations—** If the [Administrator](/usc/42/4003.md?p=a-6) determines that the rate increases or surcharges described in [paragraph (1)](#m-1) are having a detrimental effect on affordability, including resulting in lapsed policies, late payments, or other criteria related to affordability as identified by the [Administrator](/usc/42/4003.md?p=a-6), for any of the properties identified in [subparagraphs (A) through (D)](#m-1-A..m-1-D) of such paragraph, the [Administrator](/usc/42/4003.md?p=a-6) shall, not later than 3 months after making such a determination, make such recommendations as the [Administrator](/usc/42/4003.md?p=a-6) considers appropriate to improve affordability to the Committee on Financial Services of the House of [Representatives](/usc/42/3058f.md?p=5) and the Committee on Banking, [Housing](/usc/42/1490p–2.md?p=r-3), and Urban Affairs of the Senate. # §4015a. Premium surcharge - (a) **Imposition and collection—** The [Administrator](/usc/42/4003.md?p=a-6) shall impose and collect an annual surcharge, in the amount provided in [subsection (b)](#b), on all policies for [flood](/usc/42/4121.md?p=a-1) insurance coverage under the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) that are newly issued or renewed after March 21, 2014. Such surcharge shall be in addition to the surcharge under [section 4011(b) of this title](/usc/42/4011.md?p=b) and any other assessments and surcharges applied to such coverage. - (b) **Amount—** The amount of the surcharge under [subsection (a)](#a) shall be— - (1) $25, except as provided in [paragraph (2)](#b-2); and - (2) $250, in the case of a policy for any property that is— - (A) a non-[residential property](/usc/42/2304.md?p=m); or - (B) a [residential property](/usc/42/2304.md?p=m) that is not the primary residence of an individual. - (c) **Termination—** Subsections [(a)](#a) and [(b)](#b) shall cease to apply on the date on which the chargeable risk premium rate for [flood](/usc/42/4121.md?p=a-1) insurance under this chapter for each property covered by [flood](/usc/42/4121.md?p=a-1) insurance under this chapter, other than properties for which premiums are calculated under subsection (e) or (f) of [section 4014 of this title](/usc/42/4014.md) or [section 4056 of this title](/usc/42/4056.md) or under section 100230 of the Biggert-Waters [Flood](/usc/42/4121.md?p=a-1) Insurance Reform Act of 2012 ([42 U.S.C. 4014](/usc/42/4014.md) note), is not less than the applicable estimated risk premium rate under [section 4014(a)(1) of this title](/usc/42/4014.md?p=a-1) for such property. # §4016. Financing - (a) **Authority to issue notes and other obligations—** All authority which was vested in the [Housing](/usc/42/1490p–2.md?p=r-3) and Home Finance [Administrator](/usc/42/4003.md?p=a-6) by virtue of [section 2414(e) of this title](/usc/42/2414.md?p=e) (pertaining to the issue of notes or other obligations to the [Secretary](/usc/42/242q–4.md?p=2) of the Treasury), as amended by subsections [(a)](/usc/42/1303.md) and [(b)](/usc/42/1303.md) of section 1303 of this Act, shall be available to the [Administrator](/usc/42/4003.md?p=a-6) for the purpose of carrying out the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) under this chapter; except that the total amount of notes and obligations which may be issued by the [Administrator](/usc/42/4003.md?p=a-6) pursuant to such authority (1) without the approval of the President, may not exceed $500,000,000, and (2) with the approval of the President, may not exceed $1,500,000,000 through the date specified in [section 4026 of this title](/usc/42/4026.md), and $1,000,000,000 thereafter; except that, through September 30, 2026, clause (2) of this sentence shall be applied by substituting “$30,425,000,000” for “$1,500,000,000”. The [Administrator](/usc/42/4003.md?p=a-6) shall report to the Committee on Banking, Finance and Urban Affairs of the House of [Representatives](/usc/42/3058f.md?p=5) and the Committee on Banking, [Housing](/usc/42/1490p–2.md?p=r-3), and Urban Affairs of the Senate at any time when he requests the approval of the President in accordance with the preceding sentence. - (b) **Deposit of borrowed funds—** Any [funds](/usc/42/12854.md?p=3) borrowed by the [Administrator](/usc/42/4003.md?p=a-6) under this authority shall, from time to time, be deposited in the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) established under [section 4017 of this title](/usc/42/4017.md). - (c) **Schedule of repayments—** Upon the exercise of the authority established under [subsection (a)](#a), the [Administrator](/usc/42/4003.md?p=a-6) shall transmit a schedule for repayment of such amounts to— - (1) the [Secretary](/usc/42/242q–4.md?p=2) of the Treasury; - (2) the Committee on Banking, [Housing](/usc/42/1490p–2.md?p=r-3), and Urban Affairs of the Senate; and - (3) the Committee on Financial Services of the House of [Representatives](/usc/42/3058f.md?p=5). - (d) **Reports on repayment—** In connection with any [funds](/usc/42/12854.md?p=3) borrowed by the [Administrator](/usc/42/4003.md?p=a-6) under the authority established in [subsection (a)](#a), the [Administrator](/usc/42/4003.md?p=a-6), beginning 6 months after the date on which such [funds](/usc/42/12854.md?p=3) are borrowed, and continuing every 6 months thereafter until such borrowed [funds](/usc/42/12854.md?p=3) are fully repaid, shall submit a report on the progress of such repayment to— - (1) the [Secretary](/usc/42/242q–4.md?p=2) of the Treasury; - (2) the Committee on Banking, [Housing](/usc/42/1490p–2.md?p=r-3), and Urban Affairs of the Senate; and - (3) the Committee on Financial Services of the House of [Representatives](/usc/42/3058f.md?p=5). # §4017. National Flood Insurance Fund - (a) **Establishment; availability—** To carry out the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) authorized by this chapter, the [Administrator](/usc/42/4003.md?p=a-6) shall establish in the Treasury of the [United States](/usc/42/4121.md?p=a-2) a National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) (hereinafter referred to as the “[fund](/usc/42/12854.md?p=3)”) which shall be an account separate from any other accounts or [funds](/usc/42/12854.md?p=3) available to the [Administrator](/usc/42/4003.md?p=a-6) and shall be available as described in [subsection (f)](#f), without fiscal year limitation (except as otherwise provided in this section)— - (1) for making such payments as may, from time to time, be required under [section 4054 of this title](/usc/42/4054.md); - (2) to pay reinsurance [claims](/usc/42/1320a–7a.md?p=i-2) under the excess loss reinsurance coverage provided under [section 4055 of this title](/usc/42/4055.md); - (3) to repay to the [Secretary](/usc/42/242q–4.md?p=2) of the Treasury such sums as may be borrowed from him (together with interest) in accordance with the authority provided in [section 4016 of this title](/usc/42/4016.md); and - (4) to the extent approved in appropriations Acts, to pay any administrative expenses of the [flood](/usc/42/4121.md?p=a-1) insurance and floodplain management [programs](/usc/42/274l–1.md?p=4) (including the costs of mapping activities under [section 4101 of this title](/usc/42/4101.md)); - (5) for the purposes specified in [subsection (d)](#d) under the conditions provided therein; - (6) for carrying out the [program](/usc/42/274l–1.md?p=4) under [section 4022(b) of this title](/usc/42/4022.md?p=b); - (7) for transfers to the National [Flood](/usc/42/4121.md?p=a-1) Mitigation [Fund](/usc/42/12854.md?p=3), but only to the extent provided in [section 4104d(b)(1) of this title](/usc/42/4104d.md?p=b-1); and - (8) for carrying out [section 4104(f) of this title](/usc/42/4104.md?p=f). - (b) **Credits to Fund—** The [fund](/usc/42/12854.md?p=3) shall be credited with— - (1) such [funds](/usc/42/12854.md?p=3) borrowed in accordance with the authority provided in [section 4016 of this title](/usc/42/4016.md) as may from time to time be deposited in the [fund](/usc/42/12854.md?p=3); - (2) premiums, fees, or other charges which may be paid or collected in connection with the excess loss reinsurance coverage provided under [section 4055 of this title](/usc/42/4055.md); - (3) such amounts as may be advanced to the [fund](/usc/42/12854.md?p=3) from appropriations in order to maintain the [fund](/usc/42/12854.md?p=3) in an operative condition adequate to meet its liabilities; - (4) interest which may be earned on investments of the [fund](/usc/42/12854.md?p=3) pursuant to [subsection (c)](#c); - (5) such sums as are required to be paid to the [Administrator](/usc/42/4003.md?p=a-6) under [section 4015(d) of this title](/usc/42/4015.md?p=d); and - (6) receipts from any other operations under this chapter (including premiums under the conditions specified in [subsection (d)](#d), and salvage proceeds, if any, resulting from reinsurance coverage). - (c) **Investment of moneys in obligations issued or guaranteed by United States—** If, after— - (1) all outstanding obligations of the [fund](/usc/42/12854.md?p=3) have been liquidated, and - (2) any outstanding amounts which may have been advanced to the [fund](/usc/42/12854.md?p=3) from appropriations authorized under [section 4127(a)(2)(B) of this title](/usc/42/4127.md?p=a-2-B) have been credited to the appropriation from which advanced, with interest accrued at the rate prescribed under [section 2414(e) of this title](/usc/42/2414.md?p=e), as in effect immediately prior to August 1, 1968, the [Administrator](/usc/42/4003.md?p=a-6) determines that the moneys of the [fund](/usc/42/12854.md?p=3) are in excess of current needs, he may request the investment of such amounts as he deems advisable by the [Secretary](/usc/42/242q–4.md?p=2) of the Treasury in obligations issued or guaranteed by the [United States](/usc/42/4121.md?p=a-2). - (d) **Availability of Fund if operation of program is carried out through facilities of Federal Government—** In the event the [Administrator](/usc/42/4003.md?p=a-6) makes a determination in accordance with the provisions of [section 4071 of this title](/usc/42/4071.md) that operation of the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4), in whole or in part, should be carried out through the [facilities](/usc/42/11049.md?p=4) of the Federal Government, the [fund](/usc/42/12854.md?p=3) shall be available for all purposes incident thereto, including— - (1) cost incurred in the adjustment and payment of any [claims](/usc/42/1320a–7a.md?p=i-2) for losses, and - (2) payment of applicable operating costs set forth in the schedules prescribed under [section 4018 of this title](/usc/42/4018.md), for so long as the [program](/usc/42/274l–1.md?p=4) is so carried out, and in such event any premiums paid shall be deposited by the [Administrator](/usc/42/4003.md?p=a-6) to the credit of the [fund](/usc/42/12854.md?p=3). - (e) **Annual budget—** An annual business-type budget for the [fund](/usc/42/12854.md?p=3) shall be prepared, transmitted to the Congress, considered, and enacted in the manner prescribed by sections [9103](/usc/31/9103.md) and [9104](/usc/31/9104.md) of title 31 for wholly-owned Government [corporations](/usc/42/2296b–7.md?p=1). - (f) **Availability of funds dependent on future appropriations acts—** The [fund](/usc/42/12854.md?p=3) shall be available, with respect to any fiscal year beginning on or after October 1, 1981, only to the extent approved in appropriation Acts; except that the [fund](/usc/42/12854.md?p=3) shall be available for the purpose described in [subsection (d)(1)](#d-1) without such approval. # §4017a. Reserve Fund - (a) **Establishment of Reserve Fund—** In carrying out the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) authorized by this subchapter, the [Administrator](/usc/42/4003.md?p=a-6) shall establish in the Treasury of the [United States](/usc/42/4121.md?p=a-2) a National [Flood](/usc/42/4121.md?p=a-1) Insurance Reserve [Fund](/usc/42/12854.md?p=3) (in this section referred to as the “Reserve [Fund](/usc/42/12854.md?p=3)”) which shall— - (1) be an account separate from any other accounts or [funds](/usc/42/12854.md?p=3) available to the [Administrator](/usc/42/4003.md?p=a-6); and - (2) be available for meeting the expected future obligations of the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4), including— - (A) the payment of [claims](/usc/42/1320a–7a.md?p=i-2); - (B) [claims](/usc/42/1320a–7a.md?p=i-2) adjustment expenses; and - (C) the repayment of amounts outstanding under any note or other obligation issued by the [Administrator](/usc/42/4003.md?p=a-6) under [section 4016(a) of this title](/usc/42/4016.md?p=a). - (b) **Reserve ratio—** Subject to the phase-in requirements under [subsection (d)](#d), the Reserve [Fund](/usc/42/12854.md?p=3) shall maintain a balance equal to— - (1) 1 percent of the sum of the total potential loss exposure of all outstanding [flood](/usc/42/4121.md?p=a-1) insurance policies in force in the prior fiscal year; or - (2) such higher percentage as the [Administrator](/usc/42/4003.md?p=a-6) determines to be appropriate, taking into consideration any circumstance that may raise a significant risk of substantial future losses to the Reserve [Fund](/usc/42/12854.md?p=3). - (c) **Maintenance of reserve ratio—** - (1) **In general—** The [Administrator](/usc/42/4003.md?p=a-6) shall have the authority to establish, increase, or decrease the amount of aggregate annual insurance premiums to be collected for any fiscal year necessary— - (A) to maintain the reserve ratio required under [subsection (b)](#b); and - (B) to achieve such reserve ratio, if the actual balance of such reserve is below the amount required under [subsection (b)](#b). - (2) **Considerations—** In exercising the authority granted under [paragraph (1)](#c-1), the [Administrator](/usc/42/4003.md?p=a-6) shall consider— - (A) the expected operating expenses of the Reserve [Fund](/usc/42/12854.md?p=3); - (B) the insurance loss expenditures under the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4); - (C) any investment [income](/usc/42/292s.md?p=c-4) generated under the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4); and - (D) any other factor that the [Administrator](/usc/42/4003.md?p=a-6) determines appropriate. - (3) **Limitations—** - (A) **Rates—** In exercising the authority granted under [paragraph (1)](#c-1), the [Administrator](/usc/42/4003.md?p=a-6) shall be subject to all other provisions of this chapter, including any provisions relating to chargeable premium rates or annual increases of such rates. - (B) **Use of additional annual insurance premiums—** Notwithstanding any other provision of law or any [agreement](/usc/42/1320b–8.md?p=a-3-A) entered into by the [Administrator](/usc/42/4003.md?p=a-6), the [Administrator](/usc/42/4003.md?p=a-6) shall ensure that all amounts attributable to the establishment or increase of annual insurance premiums under [paragraph (1)](#c-1) are transferred to the [Administrator](/usc/42/4003.md?p=a-6) for deposit into the Reserve [Fund](/usc/42/12854.md?p=3), to be available for meeting the expected future obligations of the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) as described in [subsection (a)(2)](#a-2). - (4) **Deposit of premium surcharges—** The [Administrator](/usc/42/4003.md?p=a-6) shall deposit in the Reserve [Fund](/usc/42/12854.md?p=3) any surcharges collected pursuant to [section 4015a of this title](/usc/42/4015a.md). - (d) **Phase-in requirements—** The phase-in requirements under this subsection are as follows: - (1) **In general—** Beginning in fiscal year 2013 and not ending until the fiscal year in which the ratio required under [subsection (b)](#b) is achieved, in each such fiscal year the [Administrator](/usc/42/4003.md?p=a-6) shall place in the Reserve [Fund](/usc/42/12854.md?p=3) an amount equal to not less than 7.5 percent of the reserve ratio required under [subsection (b)](#b). - (2) **Amount satisfied—** As soon as the ratio required under [subsection (b)](#b) is achieved, and except as provided in [paragraph (3)](#d-3), the [Administrator](/usc/42/4003.md?p=a-6) shall not be required to set aside any amounts for the Reserve [Fund](/usc/42/12854.md?p=3). - (3) **Exception—** If at any time after the ratio required under [subsection (b)](#b) is achieved, the Reserve [Fund](/usc/42/12854.md?p=3) falls below the required ratio under [subsection (b)](#b), the [Administrator](/usc/42/4003.md?p=a-6) shall place in the Reserve [Fund](/usc/42/12854.md?p=3) for that fiscal year an amount equal to not less than 7.5 percent of the reserve ratio required under [subsection (b)](#b). - (e) **Limitation on reserve ratio—** In any given fiscal year, if the [Administrator](/usc/42/4003.md?p=a-6) determines that the reserve ratio required under [subsection (b)](#b) cannot be achieved, the [Administrator](/usc/42/4003.md?p=a-6) shall submit, on a calendar quarterly basis, a report to Congress that— - (1) describes and details the specific concerns of the [Administrator](/usc/42/4003.md?p=a-6) regarding the consequences of the reserve ratio not being achieved; - (2) demonstrates how such consequences would harm the long-term financial soundness of the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4); and - (3) indicates the maximum attainable reserve ratio for that particular fiscal year. - (f) **Investment—** The [Secretary](/usc/42/242q–4.md?p=2) of the Treasury shall invest such amounts of the Reserve [Fund](/usc/42/12854.md?p=3) as the [Secretary](/usc/42/242q–4.md?p=2) determines advisable in obligations issued or guaranteed by the [United States](/usc/42/4121.md?p=a-2). # §4018. Operating costs and allowances; definitions - (a) The [Administrator](/usc/42/4003.md?p=a-6) shall from time to time negotiate with appropriate [representatives](/usc/42/3058f.md?p=5) of the insurance industry for the purpose of establishing— - (1) a current schedule of [operating costs](#b-1) applicable both to risk-sharing [insurance companies](/usc/42/4121.md?p=a-3) and [other insurers](/usc/42/4121.md?p=a-3) and to [insurance companies](/usc/42/4121.md?p=a-3) and [other insurers](/usc/42/4121.md?p=a-3), insurance agents and brokers, and [insurance adjustment organizations](/usc/42/4121.md?p=a-4) participating on other than a risk-sharing basis, and - (2) a current schedule of [operating allowances](#b-2) applicable to risk-sharing [insurance companies](/usc/42/4121.md?p=a-3) and [other insurers](/usc/42/4121.md?p=a-3), which may be payable in accordance with the provisions of subchapter II, and such schedules shall from time to time be prescribed in regulations. - (b) For purposes of [subsection (a)](#a)— - (1) the term “operating costs” shall (without limiting such term) include— - (A) expense reimbursements covering the direct, actual, and necessary expenses incurred in connection with selling and servicing [flood](/usc/42/4121.md?p=a-1) insurance coverage; - (B) reasonable compensation payable for selling and servicing [flood](/usc/42/4121.md?p=a-1) insurance coverage, or [commissions](/usc/42/2000ff.md?p=1) or service fees paid to producers; - (C) loss adjustment expenses; and - (D) other direct, actual, and necessary expenses which the [Administrator](/usc/42/4003.md?p=a-6) finds are incurred in connection with selling or servicing [flood](/usc/42/4121.md?p=a-1) insurance coverage; and - (2) the term “operating allowances” shall (without limiting such term) include amounts for profit and contingencies which the [Administrator](/usc/42/4003.md?p=a-6) finds reasonable and necessary to carry out the purposes of this chapter. # §4019. Payment of claims - (a) **In general—** The [Administrator](/usc/42/4003.md?p=a-6) is authorized to prescribe regulations establishing the general method or methods by which proved and approved [claims](/usc/42/1320a–7a.md?p=i-2) for losses may be adjusted and paid for any damage to or loss of property which is covered by [flood](/usc/42/4121.md?p=a-1) insurance made available under the provisions of this chapter. - (b) **Minimum annual deductible—** - (1) **Pre-firm properties—** For any structure which is covered by [flood](/usc/42/4121.md?p=a-1) insurance under this chapter, and on which [construction](/usc/42/7479.md?p=2-C) or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial [flood](/usc/42/4121.md?p=a-1) insurance rate map published by the [Administrator](/usc/42/4003.md?p=a-6) under [section 4101 of this title](/usc/42/4101.md) for the area in which such structure is located, the minimum annual deductible for damage to such structure shall be— - (A) $1,500, if the [flood](/usc/42/4121.md?p=a-1) insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and - (B) $2,000, if the [flood](/usc/42/4121.md?p=a-1) insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000. - (2) **Post-firm properties—** For any structure which is covered by [flood](/usc/42/4121.md?p=a-1) insurance under this chapter, and on which [construction](/usc/42/7479.md?p=2-C) or substantial improvement occurred after December 31, 1974, or after the effective date of an initial [flood](/usc/42/4121.md?p=a-1) insurance rate map published by the [Administrator](/usc/42/4003.md?p=a-6) under [section 4101 of this title](/usc/42/4101.md) for the area in which such structure is located, the minimum annual deductible for damage to such structure shall be— - (A) $1,000, if the [flood](/usc/42/4121.md?p=a-1) insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and - (B) $1,250, if the [flood](/usc/42/4121.md?p=a-1) insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000. - (c) **Payment of claims to condominium owners—** The [Administrator](/usc/42/4003.md?p=a-6) may not deny payment for any damage to or loss of property which is covered by [flood](/usc/42/4121.md?p=a-1) insurance to condominium [owners](/usc/42/13641.md?p=4) who purchased such [flood](/usc/42/4121.md?p=a-1) insurance separate and apart from the [flood](/usc/42/4121.md?p=a-1) insurance purchased by the condominium association in which such [owner](/usc/42/13641.md?p=4) is a member, based solely, or in any part, on the [flood](/usc/42/4121.md?p=a-1) insurance coverage of the condominium association or others on the overall property owned by the condominium association. # §4020. Dissemination of flood insurance information The [Administrator](/usc/42/4003.md?p=a-6) shall from time to time take such action as may be necessary in order to make information and data available to the public, and to any [State](/usc/42/4121.md?p=a-2) or local agency or official, with regard to— - (1) the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4), its coverage and objectives, and - (2) estimated and chargeable [flood](/usc/42/4121.md?p=a-1) insurance premium rates, including the basis for and differences between such rates in accordance with the provisions of [section 4015 of this title](/usc/42/4015.md). # §4021. Participation in State disaster claims mediation programs - (a) **Requirement to participate—** In the case of the occurrence of a [major disaster](/usc/42/5302.md?p=a-25), as defined in [section 5122 of this title](/usc/42/5122.md), that may have resulted in [flood](/usc/42/4121.md?p=a-1) damage covered under the [national flood insurance program](/usc/42/4004.md?p=a-4) established under this chapter and other personal lines [residential property](/usc/42/2304.md?p=m) insurance coverage offered by a [State](/usc/42/4121.md?p=a-2) regulated insurer, upon a request made by the insurance [commissioner](/usc/42/12302.md?p=1) of a [State](/usc/42/4121.md?p=a-2) (or such other official responsible for regulating the business of insurance in the [State](/usc/42/4121.md?p=a-2)) for the participation of [representatives of the Administrator](#j) in a [program](/usc/42/274l–1.md?p=4) sponsored by such [State](/usc/42/4121.md?p=a-2) for nonbinding mediation of insurance [claims](/usc/42/1320a–7a.md?p=i-2) resulting from a [major disaster](/usc/42/5302.md?p=a-25), the [Administrator](/usc/42/4003.md?p=a-6) shall [cause](/usc/42/9908.md?p=c-2) [representatives](/usc/42/3058f.md?p=5) of the [national flood insurance program](/usc/42/4004.md?p=a-4) to participate in such a [State](/usc/42/4121.md?p=a-2) [program](/usc/42/274l–1.md?p=4) where [claims](/usc/42/1320a–7a.md?p=i-2) under the [national flood insurance program](/usc/42/4004.md?p=a-4) are involved to expedite settlement of [flood](/usc/42/4121.md?p=a-1) damage [claims](/usc/42/1320a–7a.md?p=i-2) resulting from such [disaster](/usc/42/5204.md?p=2). - (b) **Extent of participation—** In satisfying the requirements of [subsection (a)](#a), the [Administrator](/usc/42/4003.md?p=a-6) shall require that each [representative](/usc/42/3058f.md?p=5) of the [Administrator](/usc/42/4003.md?p=a-6)— - (1) be certified for purposes of the [national flood insurance program](/usc/42/4004.md?p=a-4) to settle [claims](/usc/42/1320a–7a.md?p=i-2) against such [program](/usc/42/274l–1.md?p=4) resulting from such [disaster](/usc/42/5204.md?p=2) in amounts up to the limits of policies under such [program](/usc/42/274l–1.md?p=4); - (2) attend [State](/usc/42/4121.md?p=a-2)-sponsored mediation meetings regarding [flood](/usc/42/4121.md?p=a-1) insurance [claims](/usc/42/1320a–7a.md?p=i-2) resulting from such [disaster](/usc/42/5204.md?p=2) at such times and places as may be arranged by the [State](/usc/42/4121.md?p=a-2); - (3) participate in good-faith negotiations toward the settlement of such [claims](/usc/42/1320a–7a.md?p=i-2) with policyholders of coverage made available under the [national flood insurance program](/usc/42/4004.md?p=a-4); and - (4) finalize the settlement of such [claims](/usc/42/1320a–7a.md?p=i-2) on behalf of the [national flood insurance program](/usc/42/4004.md?p=a-4) with such policyholders. - (c) **Coordination—** [Representatives of the Administrator](#j) shall at all times coordinate their activities with insurance officials of the [State](/usc/42/4121.md?p=a-2) and [representatives](/usc/42/3058f.md?p=5) of insurers for the purposes of consolidating and expediting settlement of [claims](/usc/42/1320a–7a.md?p=i-2) under the [national flood insurance program](/usc/42/4004.md?p=a-4) resulting from such [disaster](/usc/42/5204.md?p=2). - (d) **Qualifications of mediators—** Each [State](/usc/42/4121.md?p=a-2) mediator participating in [State](/usc/42/4121.md?p=a-2)-sponsored mediation under this section shall be— - (1) - (A) a member in good standing of the [State](/usc/42/4121.md?p=a-2) bar in the [State](/usc/42/4121.md?p=a-2) in which the mediation is to occur with at least 2 years of practical experience; and - (B) an active member of such bar for at least 1 year prior to the year in which such mediator’s participation is sought; or - (2) a retired trial judge from any [United States](/usc/42/4121.md?p=a-2) jurisdiction who was a member in good standing of the bar in the [State](/usc/42/4121.md?p=a-2) in which the judge presided for at least 5 years prior to the year in which such mediator’s participation is sought. - (e) **Mediation proceedings and documents privileged—** As a condition of participation, all statements made and documents produced pursuant to [State](/usc/42/4121.md?p=a-2)-sponsored mediation involving [representatives of the Administrator](#j) shall be deemed privileged and confidential settlement negotiations made in anticipation of litigation. - (f) **Liability, rights, or obligations not affected—** Participation in [State](/usc/42/4121.md?p=a-2)-sponsored mediation, as described in this section does not— - (1) affect or expand the liability of any party in contract or in tort; or - (2) affect the rights or obligations of the parties, as established— - (A) in any regulation issued by the [Administrator](/usc/42/4003.md?p=a-6), including any regulation relating to a [standard](/usc/42/1320d.md?p=7) [flood](/usc/42/4121.md?p=a-1) insurance policy; - (B) under this chapter; and - (C) under any other provision of Federal law. - (g) **Exclusive Federal jurisdiction—** Participation in [State](/usc/42/4121.md?p=a-2)-sponsored mediation shall not alter, change, or modify the original exclusive jurisdiction of [United States](/usc/42/4121.md?p=a-2) courts, as set forth in this chapter. - (h) **Cost limitation—** Nothing in this section shall be construed to require the [Administrator](/usc/42/4003.md?p=a-6) or a [representative](/usc/42/3058f.md?p=5) of the [Administrator](/usc/42/4003.md?p=a-6) to pay additional mediation fees relating to [flood](/usc/42/4121.md?p=a-1) insurance [claims](/usc/42/1320a–7a.md?p=i-2) associated with a [State](/usc/42/4121.md?p=a-2)-sponsored mediation [program](/usc/42/274l–1.md?p=4) in which such [representative](/usc/42/3058f.md?p=5) of the [Administrator](/usc/42/4003.md?p=a-6) participates. - (i) **Exception—** In the case of the occurrence of a [major disaster](/usc/42/5302.md?p=a-25) that results in [flood](/usc/42/4121.md?p=a-1) damage [claims](/usc/42/1320a–7a.md?p=i-2) under the [national flood insurance program](/usc/42/4004.md?p=a-4) and that does not result in any loss covered by a personal lines [residential property](/usc/42/2304.md?p=m) insurance policy— - (1) this section shall not apply; and - (2) the provisions of the [standard](/usc/42/1320d.md?p=7) [flood](/usc/42/4121.md?p=a-1) insurance policy under the [national flood insurance program](/usc/42/4004.md?p=a-4) and the appeals process established under [section 205](/usc/42/205.md) of the Bunning-Bereuter-Blumenauer [Flood](/usc/42/4121.md?p=a-1) Insurance Reform Act of 2004 ([42 U.S.C. 4011](/usc/42/4011.md) note) and the regulations issued pursuant to such section shall apply exclusively. - (j) **Representatives of the Administrator—** For purposes of this section, the term “representatives of the Administrator” means [representatives](/usc/42/3058f.md?p=5) of the [national flood insurance program](/usc/42/4004.md?p=a-4) who participate in the appeals process established under [section 205](/usc/42/205.md) of the Bunning-Bereuter-Blumenauer [Flood](/usc/42/4121.md?p=a-1) Insurance Reform Act of 2004 ([42 U.S.C. 4011](/usc/42/4011.md) note). # §4022. State and local land use controls - (a) **Requirement for participation in flood insurance program—** - (1) **In general—** After December 31, 1971, no new [flood](/usc/42/4121.md?p=a-1) insurance coverage shall be provided under this chapter in any area (or subdivision thereof) unless an appropriate public body shall have adopted adequate land use and control measures (with effective enforcement provisions) which the [Administrator](/usc/42/4003.md?p=a-6) finds are consistent with the comprehensive criteria for land management and use under [section 4102 of this title](/usc/42/4102.md). - (2) **Agricultural structures—** - (A) **Activity restrictions—** Notwithstanding any other provision of law, the adequate land use and control measures required to be adopted in an area (or subdivision thereof) pursuant to [paragraph (1)](#a-1) may provide, at the discretion of the appropriate [State](/usc/42/4121.md?p=a-2) or local authority, for the repair and restoration to predamaged conditions of an [agricultural structure](#a-2-D-i) that— - (i) is a [repetitive loss structure](/usc/42/4121.md?p=a-7); or - (ii) has incurred [flood](/usc/42/4121.md?p=a-1)-related damage to the extent that the cost of restoring the structure to its predamaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred. - (B) **Premium rates and coverage—** To the extent applicable, an [agricultural structure](#a-2-D-i) repaired or restored pursuant to [subparagraph (A)](#a-2-A) shall pay chargeable premium rates established under [section 4015 of this title](/usc/42/4015.md) at the estimated risk premium rates under [section 4014(a)(1) of this title](/usc/42/4014.md?p=a-1). If resources are available, the [Administrator](/usc/42/4003.md?p=a-6) shall provide technical assistance and counseling, upon request of the [owner](/usc/42/13641.md?p=4) of the structure, regarding wet [flood](/usc/42/4121.md?p=a-1)-proofing and other [flood](/usc/42/4121.md?p=a-1) damage reduction measures for [agricultural structures](#a-2-D-i). The [Administrator](/usc/42/4003.md?p=a-6) shall not be required to make [flood](/usc/42/4121.md?p=a-1) insurance coverage available for such an [agricultural structure](#a-2-D-i) unless the structure is wet [flood](/usc/42/4121.md?p=a-1)-proofed through permanent or contingent measures applied to the structure or its contents that prevent or provide resistance to damage from flooding by allowing [flood](/usc/42/4121.md?p=a-1) waters to pass through the structure, as determined by the [Administrator](/usc/42/4003.md?p=a-6). - (C) **Prohibition on disaster relief—** Notwithstanding any other provision of law, any [agricultural structure](#a-2-D-i) repaired or restored pursuant to [subparagraph (A)](#a-2-A) shall not be eligible for [disaster](/usc/42/5204.md?p=2) relief assistance under any [program](/usc/42/274l–1.md?p=4) administered by the [Administrator](/usc/42/4003.md?p=a-6) or any other [Federal agency](/usc/42/4003.md?p=a-2). - (D) **Definitions—** For purposes of this paragraph— - (i) the term “agricultural structure” means any structure used exclusively in connection with the production, harvesting, storage, raising, or drying of [agricultural commodities](#a-2-D-ii); and - (ii) the term “agricultural commodities” means agricultural commodities and livestock. - (b) **Community rating system and incentives for community floodplain management—** - (1) **Authority and goals—** The [Administrator](/usc/42/4003.md?p=a-6) shall carry out a [community](/usc/42/4003.md?p=a-1) rating system [program](/usc/42/274l–1.md?p=4), under which [communities](/usc/42/4003.md?p=a-1) participate voluntarily— - (A) to provide incentives for measures that reduce the risk of [flood](/usc/42/4121.md?p=a-1) or erosion damage that exceed the criteria set forth in [section 4102 of this title](/usc/42/4102.md) and evaluate such measures; - (B) to encourage adoption of more effective measures that protect [natural and beneficial floodplain functions](/usc/42/4121.md?p=a-12); - (C) to encourage floodplain and erosion management; and - (D) to promote the reduction of Federal [flood](/usc/42/4121.md?p=a-1) insurance losses. - (2) **Incentives—** The [program](/usc/42/274l–1.md?p=4) shall provide incentives in the form of credits on premium rates for [flood](/usc/42/4121.md?p=a-1) insurance coverage in [communities](/usc/42/4003.md?p=a-1) that the [Administrator](/usc/42/4003.md?p=a-6) determines have adopted and enforced measures that reduce the risk of [flood](/usc/42/4121.md?p=a-1) and erosion damage that exceed the criteria set forth in [section 4102 of this title](/usc/42/4102.md). In providing incentives under this paragraph, the [Administrator](/usc/42/4003.md?p=a-6) may provide for credits to [flood](/usc/42/4121.md?p=a-1) insurance premium rates in [communities](/usc/42/4003.md?p=a-1) that the [Administrator](/usc/42/4003.md?p=a-6) determines have implemented measures that protect [natural and beneficial floodplain functions](/usc/42/4121.md?p=a-12). - (3) **Credits—** The credits on premium rates for [flood](/usc/42/4121.md?p=a-1) insurance coverage shall be based on the estimated reduction in [flood](/usc/42/4121.md?p=a-1) and erosion damage risks resulting from the measures adopted by the [community](/usc/42/4003.md?p=a-1) under this [program](/usc/42/274l–1.md?p=4). If a [community](/usc/42/4003.md?p=a-1) has received mitigation assistance under [section 4104c of this title](/usc/42/4104c.md), the credits shall be phased in a manner, determined by the [Administrator](/usc/42/4003.md?p=a-6), to recover the amount of such assistance provided for the [community](/usc/42/4003.md?p=a-1). - (4) **Reports—** Not later than 2 years after September 23, 1994, and not less than every 2 years thereafter, the [Administrator](/usc/42/4003.md?p=a-6) shall submit a report to the Congress regarding the [program](/usc/42/274l–1.md?p=4) under this subsection. Each report shall include an analysis of the cost-effectiveness of the [program](/usc/42/274l–1.md?p=4), any other accomplishments or shortcomings of the [program](/usc/42/274l–1.md?p=4), and any recommendations of the [Administrator](/usc/42/4003.md?p=a-6) for legislation regarding the [program](/usc/42/274l–1.md?p=4). - (c) **Replacement of mobile homes on original sites—** - (1) **Community participation—** The placement of any [mobile home](#c-2) on any site shall not affect the eligibility of any [community](/usc/42/4003.md?p=a-1) to participate in the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) under this chapter and the [Flood](/usc/42/4121.md?p=a-1) [Disaster](/usc/42/5204.md?p=2) Protection Act of 1973 (notwithstanding that such placement may fail to comply with any elevation or [flood](/usc/42/4121.md?p=a-1) damage mitigation requirements), if— - (A) such [mobile home](#c-2) was previously located on such site; - (B) such [mobile home](#c-2) was relocated from such site because of flooding that threatened or affected such site; and - (C) such replacement is conducted not later than the expiration of the 180-day period that begins upon the subsidence (in the area of such site) of the body of water that flooded to a level considered lower than [flood](/usc/42/4121.md?p=a-1) levels. - (2) **Definition—** For purposes of this subsection, the term “mobile home” has the meaning given such term in the law of the [State](/usc/42/4121.md?p=a-2) in which the mobile home is located. # §4023. Properties in violation of State and local law No new [flood](/usc/42/4121.md?p=a-1) insurance coverage shall be provided under this chapter for any property which the [Administrator](/usc/42/4003.md?p=a-6) finds has been declared by a duly constituted [State](/usc/42/4121.md?p=a-2) or local zoning authority, or other authorized public body, to be in [violation](/usc/42/2000e–16a.md?p=c) of [State](/usc/42/4121.md?p=a-2) or local laws, regulations, or ordinances which are intended to discourage or otherwise restrict land development or occupancy in [flood](/usc/42/4121.md?p=a-1)-prone areas. # §4024. Coordination with other programs In carrying out this chapter, the [Administrator](/usc/42/4003.md?p=a-6) shall consult with other departments and agencies of the Federal Government, and with interstate, [State](/usc/42/4121.md?p=a-2), and local agencies having responsibilities for [flood](/usc/42/4121.md?p=a-1) control, [flood](/usc/42/4121.md?p=a-1) forecasting, or [flood](/usc/42/4121.md?p=a-1) damage prevention, in order to assure that the [programs](/usc/42/274l–1.md?p=4) of such agencies and the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) authorized under this chapter are mutually consistent. # §4025. Flood insurance advisory committee - (a) **Appointment; duties—** The [Administrator](/usc/42/4003.md?p=a-6) shall appoint a [flood](/usc/42/4121.md?p=a-1) insurance [advisory committee](/usc/42/7703.md?p=9) without regard to the provisions of [title 5](/usc/5.md) governing appointments in the competitive service, and such committee shall advise the [Administrator](/usc/42/4003.md?p=a-6) in the preparation of any regulations prescribed in accordance with this chapter and with respect to policy matters arising in the administration of this chapter, and shall perform such other responsibilities as the [Administrator](/usc/42/4003.md?p=a-6) may, from time to time, assign to such committee. - (b) **Membership—** Such committee shall consist of not more than fifteen [persons](/usc/42/4121.md?p=a-5) and such [persons](/usc/42/4121.md?p=a-5) shall be selected from among [representatives](/usc/42/3058f.md?p=5) of— - (1) the insurance industry, - (2) [State](/usc/42/4121.md?p=a-2) and [local governments](/usc/42/8401a.md), - (3) lending institutions, - (4) the homebuilding industry, and - (5) the general public. - (c) **Compensation and travel expenses—** Members of the committee shall, while attending conferences or meetings thereof, be entitled to receive compensation at a rate fixed by the [Administrator](/usc/42/4003.md?p=a-6) but not exceeding $100 per day, including traveltime, and while so serving away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as is authorized under [section 5703 of title 5](/usc/5/5703.md) for [persons](/usc/42/4121.md?p=a-5) in the Government service employed intermittently. # §4026. Expiration of program No new contract for [flood](/usc/42/4121.md?p=a-1) insurance under this chapter shall be entered into after September 30, 2026. # §4027. Biennial report to President - (a) **In general—** The [Administrator](/usc/42/4003.md?p=a-6) shall biennially submit a report of operations under this chapter to the President for submission to the Congress. - (b) **Effects of flood insurance program—** The [Administrator](/usc/42/4003.md?p=a-6) shall include, as part of the biennial report submitted under [subsection (a)](#a), a chapter reporting on the effects on the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) observed through implementation of requirements under the Riegle [Community](/usc/42/4003.md?p=a-1) Development and Regulatory Improvement Act of 1994. # §4027a. Report of the Administrator on activities under the National Flood Insurance Program - (1) **In general—** The [Administrator](/usc/42/4003.md?p=a-6) shall, on an annual basis, submit a full report on the operations, activities, budget, receipts, and expenditures of the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) for the preceding 12-month period to the Committee on Banking, [Housing](/usc/42/1490p–2.md?p=r-3), and Urban Affairs of the Senate and the Committee on Financial Services of the House of [Representatives](/usc/42/3058f.md?p=5). - (2) **Timing—** Each report required under [paragraph (1)](#1) shall be submitted to the committees described in [paragraph (1)](#1) not later than 3 months following the end of each fiscal year. - (3) **Contents—** Each report required under [paragraph (1)](#1) shall include— - (A) the current financial condition and [income](/usc/42/292s.md?p=c-4) statement of the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) established under [section 4017 of this title](/usc/42/4017.md), including— - (i) premiums paid into such [Fund](/usc/42/12854.md?p=3); - (ii) policy [claims](/usc/42/1320a–7a.md?p=i-2) against such [Fund](/usc/42/12854.md?p=3); and - (iii) expenses in administering such [Fund](/usc/42/12854.md?p=3); - (B) the number and face value of all policies issued under the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) that are in force; - (C) a description and summary of the losses attributable to [repetitive loss structures](/usc/42/4121.md?p=a-7); - (D) a description and summary of all losses incurred by the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) due to— - (i) hurricane related damage; and - (ii) nonhurricane related damage; - (E) the amounts made available by the [Administrator](/usc/42/4003.md?p=a-6) for mitigation assistance under [section 4104c(c)(4) of this title](/usc/42/4104c.md?p=c-4), as so redesignated by this Act, for the purchase of properties substantially damaged by [flood](/usc/42/4121.md?p=a-1) for that fiscal year, and the actual number of [flood](/usc/42/4121.md?p=a-1) damaged properties purchased and the total cost expended to purchase such properties; - (F) the estimate of the [Administrator](/usc/42/4003.md?p=a-6) as to the average historical loss year, and the basis for that estimate; - (G) the estimate of the [Administrator](/usc/42/4003.md?p=a-6) as to the maximum amount of [claims](/usc/42/1320a–7a.md?p=i-2) that the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) would have to expend in the event of a catastrophic year; - (H) the average— - (i) amount of insurance carried per [flood](/usc/42/4121.md?p=a-1) insurance policy; - (ii) premium per [flood](/usc/42/4121.md?p=a-1) insurance policy; and - (iii) loss per [flood](/usc/42/4121.md?p=a-1) insurance policy; and - (I) the number of [claims](/usc/42/1320a–7a.md?p=i-2) involving [damages](/usc/42/9601.md?p=6) in excess of the maximum amount of [flood](/usc/42/4121.md?p=a-1) insurance available under the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) and the sum of the amount of all [damages](/usc/42/9601.md?p=6) in excess of such amount. # §4027b. Assessment of claims-paying ability - (1) **Assessment—** - (A) **Assessment required—** - (i) **In general—** Not later than September 30 of each year, the [Administrator](/usc/42/4003.md?p=a-6) shall conduct an assessment of the ability of the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) to pay [claims](/usc/42/1320a–7a.md?p=i-2). - (ii) **Private market reinsurance—** The assessment under this paragraph for any year in which the [Administrator](/usc/42/4003.md?p=a-6) exercises the authority under [section 4055(a)(2) of this title](/usc/42/4055.md?p=a-2), as added by this section,[^1] to secure reinsurance of coverage provided by the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) from the private market shall include information relating the use of private sector reinsurance and reinsurance equivalents by the [Administrator](/usc/42/4003.md?p=a-6), whether or not the [Administrator](/usc/42/4003.md?p=a-6) used the borrowing authority under [section 4016 of this title](/usc/42/4016.md). - (iii) **First assessment—** The [Administrator](/usc/42/4003.md?p=a-6) shall conduct the first assessment required under this paragraph not later than September 30, 2012. - (B) **Considerations—** In conducting an assessment under [subparagraph (A)](#1-A), the [Administrator](/usc/42/4003.md?p=a-6) shall take into consideration regional concentrations of coverage written by the [National Flood Insurance Program](/usc/42/4004.md?p=a-4), peak [flood](/usc/42/4121.md?p=a-1) zones, and relevant mitigation measures. - (2) **Annual report of the Administrator of activities under the National Flood Insurance Program—** The [Administrator](/usc/42/4003.md?p=a-6) shall— - (A) include the results of each assessment in the report required under [section 4027a of this title](/usc/42/4027a.md); and - (B) not later than 30 days after the date on which the [Administrator](/usc/42/4003.md?p=a-6) completes an assessment required under [paragraph (1)](#1), make the results of the assessment available to the public. # §4028. John H. Chafee Coastal Barrier Resources System - (a) No new [flood](/usc/42/4121.md?p=a-1) insurance coverage may be provided under this chapter on or after October 1, 1983, for any new [construction](/usc/42/7479.md?p=2-C) or substantial improvements of structures located on any coastal barrier within the John H. Chafee Coastal Barrier Resources System established by [section 3503 of title 16](/usc/16/3503.md). A federally insured [financial institution](/usc/42/666.md?p=a-17-D-i) may make loans secured by structures which are not eligible for [flood](/usc/42/4121.md?p=a-1) insurance by reason of this section. - (b) No new [flood](/usc/42/4121.md?p=a-1) insurance coverage may be provided under this chapter after the expiration of the 1-year period beginning on November 16, 1990, for any new [construction](/usc/42/7479.md?p=2-C) or substantial improvements of structures located in any area identified and depicted on the maps referred to in [section 3503(a) of title 16](/usc/16/3503.md?p=a) as an area that is (1) not within the John H. Chafee Coastal Barrier Resources System and (2) is in an otherwise protected area. Notwithstanding the preceding sentence, new [flood](/usc/42/4121.md?p=a-1) insurance coverage may be provided for structures in such protected areas that are used in a manner consistent with the purpose for which the area is protected. # §4029. Colorado River Floodway - (a) **Renewal and transfer of policies; acquisition of policies after filing of maps—** [Owners](/usc/42/13641.md?p=4) of existing National [Flood](/usc/42/4121.md?p=a-1) Insurance Act policies with respect to structures located within the Floodway established under [section 1600c of title 43](/usc/43/1600c.md) shall have the right to renew and transfer such policies. [Owners](/usc/42/13641.md?p=4) of existing structures located within said Floodway on October 8, 1986, who have not acquired National [Flood](/usc/42/4121.md?p=a-1) Insurance Act policies shall have the right to acquire policies with respect to such structures for six months after the [Secretary](/usc/42/242q–4.md?p=2) of the Interior files the Floodway maps required by [section 1600c(b)(2)](/usc/43/1600c.md?p=b-2)[^1] of [title 43](/usc/43.md) and to renew and transfer such policies. - (b) **New coverage for new construction or substantial improvements—** No new [flood](/usc/42/4121.md?p=a-1) insurance coverage may be provided under this chapter on or after a date six months after October 8, 1986, for any new [construction](/usc/42/7479.md?p=2-C) or substantial improvements of structures located within the Colorado River Floodway established by [section 1600c of title 43](/usc/43/1600c.md). New [construction](/usc/42/7479.md?p=2-C) includes all structures that are not insurable prior to that date. - (c) **Establishment of temporary boundaries—** The [Secretary](/usc/42/242q–4.md?p=2) of the Interior may by rule after notice and comment pursuant to [section 553 of title 5](/usc/5/553.md) establish temporary Floodway boundaries to be in effect until the maps required by section 1600c(b)(2)[^1] of [title 43](/usc/43.md) are filed, for the purpose of enforcing subsections [(b)](#b) and [(d)](#d) of this section. - (d) **Loans by federally supervised, approved, regulated, or insured financial institutions—** A [regulated lending institution](/usc/42/4003.md?p=a-10) or [Federal agency lender](/usc/42/4003.md?p=a-7) may make loans secured by structures which are not eligible for [flood](/usc/42/4121.md?p=a-1) insurance by reason of this section: Provided, That prior to making such a loan, such institution determines that the loans or structures securing the loan are within the Floodway. # [§4030. Repealed. Pub. L. 112–141, div. F, title II, § 100225(b), July 6, 2012, 126 Stat. 941 — repealed] # §4031. Treatment of certain payments Assistance provided under a [program](/usc/42/274l–1.md?p=4) under this chapter for [flood](/usc/42/4121.md?p=a-1) mitigation activities (including any assistance provided under the mitigation pilot [program](/usc/42/274l–1.md?p=4) under [section 4102a](/usc/42/4102a.md)[^1] of this title, any assistance provided under the mitigation assistance [program](/usc/42/274l–1.md?p=4) under [section 4104c of this title](/usc/42/4104c.md), and any funding provided under [section 4030](/usc/42/4030.md)[^1] of this title) with respect to a property shall not be considered [income](/usc/42/292s.md?p=c-4) or a resource of the [owner](/usc/42/13641.md?p=4) of the property when determining eligibility for or benefit levels under any [income](/usc/42/292s.md?p=c-4) assistance or resource-tested [program](/usc/42/274l–1.md?p=4) that is funded in whole or in part by an agency of the [United States](/usc/42/4121.md?p=a-2) or by appropriated [funds](/usc/42/12854.md?p=3) of the [United States](/usc/42/4121.md?p=a-2). # §4032. Treatment of swimming pool enclosures outside of hurricane season - (a) **In general—** Notwithstanding any other provision of law, including the adequate land use and control measures developed pursuant to [section 4102 of this title](/usc/42/4102.md) and applicable to non-one- and two-[family](/usc/42/290ff–4.md?p=d-2) structures located within coastal areas, as identified by the [Administrator](/usc/42/4003.md?p=a-6), the following may be permitted: - (1) Nonsupporting breakaway walls in the space below the lowest elevated floor of a [building](/usc/42/6881.md?p=i-3), if the space is used solely for a swimming pool between November 30 and June 1 of any year, in an area designated as Zone V on a [flood](/usc/42/4121.md?p=a-1) insurance rate map. - (2) Openings in walls in the space below the lowest elevated floor of a [building](/usc/42/6881.md?p=i-3), if the space is used solely for a swimming pool between November 30 and June 1 of any year, in an area designated as Zone A on a [flood](/usc/42/4121.md?p=a-1) insurance rate map. - (b) **Rule of construction—** Nothing in [subsection (a)](#a) shall be construed to alter the terms and conditions of eligibility and insurability of coverage for a [building](/usc/42/6881.md?p=i-3) under the [standard](/usc/42/1320d.md?p=7) [flood](/usc/42/4121.md?p=a-1) insurance policy under the [national flood insurance program](/usc/42/4004.md?p=a-4). # §4033. Designation of Flood Insurance Advocate - (a) **In general—** The [Administrator](/usc/42/4003.md?p=a-6) shall designate a [Flood](/usc/42/4121.md?p=a-1) Insurance Advocate to advocate for the fair [treatment](/usc/42/11851.md?p=11) of policy holders under the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) and property [owners](/usc/42/13641.md?p=4) in the mapping of [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3), the identification of risks from [flood](/usc/42/4121.md?p=a-1), and the implementation of measures to minimize the risk of [flood](/usc/42/4121.md?p=a-1). - (b) **Duties and responsibilities—** The duties and responsibilities of the [Flood](/usc/42/4121.md?p=a-1) Insurance Advocate designated under [subsection (a)](#a) shall be to— - (1) educate property [owners](/usc/42/13641.md?p=4) and policyholders under the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) on— - (A) individual [flood](/usc/42/4121.md?p=a-1) risks; - (B) [flood](/usc/42/4121.md?p=a-1) mitigation; - (C) measures to reduce [flood](/usc/42/4121.md?p=a-1) insurance rates through effective mitigation; - (D) the [flood](/usc/42/4121.md?p=a-1) insurance rate map review and amendment process; and - (E) any changes in the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) as a result of any newly enacted laws (including this Act); - (2) assist policy holders under the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) and property [owners](/usc/42/13641.md?p=4) to understand the procedural requirements related to appealing preliminary [flood](/usc/42/4121.md?p=a-1) insurance rate maps and implementing measures to mitigate evolving [flood](/usc/42/4121.md?p=a-1) risks; - (3) assist in the development of regional capacity to respond to individual constituent concerns about [flood](/usc/42/4121.md?p=a-1) insurance rate map amendments and revisions; - (4) coordinate outreach and education with local officials and [community](/usc/42/4003.md?p=a-1) leaders in areas impacted by proposed [flood](/usc/42/4121.md?p=a-1) insurance rate map amendments and revisions; and - (5) aid potential policy holders under the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) in obtaining and verifying accurate and reliable [flood](/usc/42/4121.md?p=a-1) insurance rate information when purchasing or renewing a [flood](/usc/42/4121.md?p=a-1) insurance policy. # §4041. Implementation of program Following such consultation with [representatives](/usc/42/3058f.md?p=5) of the insurance industry as may be necessary, the [Administrator](/usc/42/4003.md?p=a-6) shall implement the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) authorized under subchapter I in accordance with the provisions of part A of this subchapter and, if a determination is made by him under [section 4071 of this title](/usc/42/4071.md), under part B of this subchapter. # §4051. Industry flood insurance pool; requirements for participation - (a) The [Administrator](/usc/42/4003.md?p=a-6) is authorized to encourage and otherwise assist any [insurance companies](/usc/42/4121.md?p=a-3) and [other insurers](/usc/42/4121.md?p=a-3) which meet the requirements prescribed under [subsection (b)](#b) to form, associate, or otherwise join together in a pool— - (1) in order to provide the [flood](/usc/42/4121.md?p=a-1) insurance coverage authorized under subchapter I; and - (2) for the purpose of assuming, including as reinsurance of coverage provided by the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4), on such terms and conditions as may be agreed upon, such financial responsibility as will enable such companies and [other insurers](/usc/42/4121.md?p=a-3), with the Federal financial and other assistance available under this chapter, to assume a reasonable proportion of responsibility for the adjustment and payment of [claims](/usc/42/1320a–7a.md?p=i-2) for losses under the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4). - (b) In order to promote the effective administration of the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) under this part, and to assure that the objectives of this chapter are furthered, the [Administrator](/usc/42/4003.md?p=a-6) is authorized to prescribe appropriate requirements for [insurance companies](/usc/42/4121.md?p=a-3) and [other insurers](/usc/42/4121.md?p=a-3) participating in such pool including, but not limited to, minimum requirements for capital or surplus or assets. # §4052. Agreements with flood insurance pool - (a) **Authorization—** The [Administrator](/usc/42/4003.md?p=a-6) is authorized to enter into such [agreements](/usc/42/1320b–8.md?p=a-3-A) with the pool formed or otherwise created under this part as he deems necessary to carry out the purposes of this chapter. - (b) **Terms and conditions—** Such [agreements](/usc/42/1320b–8.md?p=a-3-A) shall specify— - (1) the terms and conditions under which risk capital will be available for the adjustment and payment of [claims](/usc/42/1320a–7a.md?p=i-2), - (2) the terms and conditions under which the pool (and the companies and [other insurers](/usc/42/4121.md?p=a-3) participating therein) shall participate in premiums received and profits or losses realized or sustained, - (3) the maximum amount of profit, established by the [Administrator](/usc/42/4003.md?p=a-6) and set forth in the schedules prescribed under [section 4018 of this title](/usc/42/4018.md), which may be realized by such pool (and the companies and [other insurers](/usc/42/4121.md?p=a-3) participating therein), - (4) the terms and conditions under which operating costs and allowances set forth in the schedules prescribed under [section 4018 of this title](/usc/42/4018.md) may be paid, and - (5) the terms and conditions under which premium equalization payments under [section 4054 of this title](/usc/42/4054.md) will be made and reinsurance [claims](/usc/42/1320a–7a.md?p=i-2) under [section 4055 of this title](/usc/42/4055.md) will be paid. - (c) **Additional provisions—** In addition, such [agreements](/usc/42/1320b–8.md?p=a-3-A) shall contain such provisions as the [Administrator](/usc/42/4003.md?p=a-6) finds necessary to assure that— - (1) no [insurance company](/usc/42/4121.md?p=a-3) or [other insurer](/usc/42/4121.md?p=a-3) which meets the requirements prescribed under [section 4051(b) of this title](/usc/42/4051.md?p=b), and which has indicated an intention to participate in the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) on a risk-sharing basis, will be excluded from participating in the pool, - (2) the [insurance companies](/usc/42/4121.md?p=a-3) and [other insurers](/usc/42/4121.md?p=a-3) participating in the pool will take whatever action may be necessary to provide continuity of [flood](/usc/42/4121.md?p=a-1) insurance coverage or reinsurance by the pool, and - (3) any [insurance companies](/usc/42/4121.md?p=a-3) and [other insurers](/usc/42/4121.md?p=a-3), insurance agents and brokers, and [insurance adjustment organizations](/usc/42/4121.md?p=a-4) will be permitted to cooperate with the pool as fiscal agents or otherwise, on other than a risk-sharing basis, to the maximum extent practicable. # §4053. Adjustment and payment of claims; judicial review; limitations; jurisdiction The [insurance companies](/usc/42/4121.md?p=a-3) and [other insurers](/usc/42/4121.md?p=a-3) which form, associate, or otherwise join together in the pool under this part may adjust and pay all [claims](/usc/42/1320a–7a.md?p=i-2) for proved and approved losses covered by [flood](/usc/42/4121.md?p=a-1) insurance in accordance with the provisions of this chapter and, upon the disallowance by any such company or [other insurer](/usc/42/4121.md?p=a-3) of any such [claim](/usc/42/1320a–7a.md?p=i-2), or upon the refusal of the claimant to accept the amount allowed upon any such [claim](/usc/42/1320a–7a.md?p=i-2), the claimant, within one year after the date of mailing of notice of disallowance or partial disallowance of the [claim](/usc/42/1320a–7a.md?p=i-2), may institute an action on such [claim](/usc/42/1320a–7a.md?p=i-2) against such company or [other insurer](/usc/42/4121.md?p=a-3) in the [United States](/usc/42/4121.md?p=a-2) district court for the district in which the insured property or the major part thereof shall have been situated, and original exclusive jurisdiction is hereby conferred upon such court to hear and determine such action without regard to the amount in controversy. # §4054. Premium equalization payments; basis; aggregate amount; establishment of designated periods - (a) The [Administrator](/usc/42/4003.md?p=a-6), on such terms and conditions as he may from time to time prescribe, shall make periodic payments to the pool formed or otherwise created under [section 4051 of this title](/usc/42/4051.md), in recognition of such reductions in chargeable premium rates under [section 4015 of this title](/usc/42/4015.md) below estimated premium rates under [section 4014(a)(1) of this title](/usc/42/4014.md?p=a-1) as are required in order to make [flood](/usc/42/4121.md?p=a-1) insurance available on reasonable terms and conditions. - (b) Designated periods under this section and the methods for determining the sum of premiums paid or payable during such periods shall be established by the [Administrator](/usc/42/4003.md?p=a-6). # §4055. Reinsurance coverage - (a) **Availability for excess losses—** - (1) **In general—** The [Administrator](/usc/42/4003.md?p=a-6) is authorized to take such action as may be necessary in order to make available, to the pool formed or otherwise created under [section 4051 of this title](/usc/42/4051.md), reinsurance for losses (due to [claims](/usc/42/1320a–7a.md?p=i-2) for proved and approved losses covered by [flood](/usc/42/4121.md?p=a-1) insurance) which are in excess of losses assumed by such pool in accordance with the excess loss [agreement](/usc/42/1320b–8.md?p=a-3-A) entered into under [subsection (c)](#c). - (2) **Private reinsurance—** The [Administrator](/usc/42/4003.md?p=a-6) is authorized to secure reinsurance of coverage provided by the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) from the private market at rates and on terms determined by the [Administrator](/usc/42/4003.md?p=a-6) to be reasonable and appropriate, in an amount sufficient to maintain the ability of the [program](/usc/42/274l–1.md?p=4) to pay [claims](/usc/42/1320a–7a.md?p=i-2). - (b) **Availability pursuant to contract, agreement, or other arrangement; payment of premium, fee, or other charge—** Such reinsurance shall be made available pursuant to contract, [agreement](/usc/42/1320b–8.md?p=a-3-A), or any other arrangement, in consideration of such payment of a premium, fee, or other charge as the [Administrator](/usc/42/4003.md?p=a-6) finds necessary to cover anticipated losses and other costs of providing such reinsurance. - (c) **Excess loss agreement; negotiation—** The [Administrator](/usc/42/4003.md?p=a-6) is authorized to negotiate an excess loss [agreement](/usc/42/1320b–8.md?p=a-3-A), from time to time, under which the amount of [flood](/usc/42/4121.md?p=a-1) insurance retained by the pool, after ceding reinsurance, shall be adequate to further the purposes of this chapter, consistent with the objective of maintaining appropriate financial participation and risk sharing to the maximum extent practicable on the part of participating [insurance companies](/usc/42/4121.md?p=a-3) and [other insurers](/usc/42/4121.md?p=a-3). - (d) **Submission of excess losses on portfolio basis—** All reinsurance [claims](/usc/42/1320a–7a.md?p=i-2) for losses in excess of losses assumed by the pool shall be submitted on a portfolio basis by such pool in accordance with terms and conditions established by the [Administrator](/usc/42/4003.md?p=a-6). # §4056. Emergency implementation of flood insurance program; applicability of other provisions of law - (a) Notwithstanding any other provisions of this chapter, for the purpose of providing [flood](/usc/42/4121.md?p=a-1) insurance coverage at the earliest possible time, the [Administrator](/usc/42/4003.md?p=a-6) shall carry out the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) authorized under subchapter I during the period ending on the date specified in [section 4026 of this title](/usc/42/4026.md), in accordance with the provisions of this part and the other provisions of this chapter insofar as they relate to this part but subject to the [modifications](/usc/42/7501.md?p=4) made by or under [subsection (b)](#b). - (b) In carrying out the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) pursuant to [subsection (a)](#a), the [Administrator](/usc/42/4003.md?p=a-6)— - (1) shall provide insurance coverage without regard to any estimated risk premium rates which would otherwise be determined under [section 4014 of this title](/usc/42/4014.md); and - (2) shall utilize the provisions and procedures contained in or prescribed by this part (other than [section 4054 of this title](/usc/42/4054.md)) and sections [4081](/usc/42/4081.md) and [4082](/usc/42/4082.md) of this title to such extent and in such manner as he may consider necessary or appropriate to carry out the purpose of this section. # §4057. Alternative loss allocation system for indeterminate claims - (a) **Definitions—** In this section: - (1) **Administrator—** The term “Administrator” means the Administrator of the Federal Emergency Management Agency. - (2) **COASTAL Formula—** The term “COASTAL Formula” means the formula established under [subsection (b)](#b). - (3) **Coastal State—** The term “coastal State” has the meaning given the term “coastal state” in [section 1453 of title 16](/usc/16/1453.md), except that the term shall not apply with respect to a [State](#a-7) or territory that has an operational wind and [flood](/usc/42/4121.md?p=a-1) loss [allocation](/usc/42/2021b.md?p=2) system. - (4) **Indeterminate loss—** - (A) **In general—** The term “indeterminate loss” means, as determined by an insurance [claims](/usc/42/1320a–7a.md?p=i-2) adjuster certified under the [national flood insurance program](/usc/42/4004.md?p=a-4) and in consultation with an engineer as appropriate, a loss resulting from physical damage to, or loss of, [property](#a-10) located in any [coastal State](#a-3) arising from the combined perils of [flood](/usc/42/4121.md?p=a-1) and wind associated with a [named storm](#a-5). - (B) **Requirements—** An insurance [claims](/usc/42/1320a–7a.md?p=i-2) adjuster certified under the [national flood insurance program](/usc/42/4004.md?p=a-4) shall only determine that a loss is an [indeterminate loss](#a-4-A) if the [claims](/usc/42/1320a–7a.md?p=i-2) adjuster determines that— - (i) no material remnant of physical [buildings](/usc/42/6881.md?p=i-3) or man-made structures remain except [building](/usc/42/6881.md?p=i-3) [foundations](/usc/42/17351.md?p=3) for the specific [property](#a-10) for which the [claim](/usc/42/1320a–7a.md?p=i-2) is made; and - (ii) there is insufficient or no tangible evidence created, yielded, or otherwise left behind of the specific [property](#a-10) for which the [claim](/usc/42/1320a–7a.md?p=i-2) is made as a result of the [named storm](#a-5). - (5) **Named storm—** The term “named storm” means any organized weather system with a defined surface circulation and maximum sustained winds of not less than 39 miles per hour which the National Hurricane Center of the [United States](/usc/42/4121.md?p=a-2) National Weather Service names as a tropical storm or a hurricane. - (6) **Post-storm assessment—** The term “post-storm assessment” means the post-storm assessment developed under [section 3611(b) of title 33](/usc/33/3611.md?p=b). - (7) **State—** The term “State” means a State of the [United States](/usc/42/4121.md?p=a-2), the District of Columbia, the Commonwealth of Puerto Rico, and any other territory or possession of the [United States](/usc/42/4121.md?p=a-2). - (8) **Secretary—** The term “Secretary” means the Secretary of Homeland Security. - (9) **Standard insurance policy—** The term “standard insurance policy” means any insurance policy issued under the [national flood insurance program](/usc/42/4004.md?p=a-4) that covers loss or damage to [property](#a-10) resulting from water peril. - (10) **Property—** The term “property” means real or personal property that is insured under a [standard insurance policy](#a-9) for loss or damage to structure or contents. - (11) **Under Secretary—** The term “Under Secretary” means the Under Secretary of [Commerce](/usc/42/6311.md?p=7) for Oceans and Atmosphere, in the Under Secretary’s capacity as [Administrator](#a-1) of the National Oceanic and Atmospheric Administration. - (b) **Establishment of flood loss allocation formula for indeterminate claims—** - (1) **In general—** Not later than 180 days after the date on which the protocol is established under [section 3611(c)(1) of title 33](/usc/33/3611.md?p=c-1), the [Secretary](#a-8), acting through the [Administrator](#a-1) and in consultation with the [Under Secretary](#a-11), shall publish for comment in the Federal Register a [standard](/usc/42/1320d.md?p=7) formula to determine and allocate wind losses and [flood](/usc/42/4121.md?p=a-1) losses for [claims](/usc/42/1320a–7a.md?p=i-2) involving [indeterminate losses](#a-4-A). - (2) **Contents—** The [standard](/usc/42/1320d.md?p=7) formula established under [paragraph (1)](#b-1) shall— - (A) incorporate data available from the Coastal Wind and Water Event Database established under [section 3611(f) of title 33](/usc/33/3611.md?p=f); - (B) use relevant data provided on the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) Elevation Certificate, or other data or information used to determine a [property](#a-10)’s current risk of [flood](/usc/42/4121.md?p=a-1), as determined by the [Administrator](#a-1), for each [indeterminate loss](#a-4-A) for which the formula is used; - (C) consider any sufficient and credible evidence, approved by the [Administrator](#a-1), of the pre-event condition of a specific [property](#a-10), including the findings of any policyholder or insurance [claims](/usc/42/1320a–7a.md?p=i-2) adjuster in connection with the [indeterminate loss](#a-4-A) to that specific [property](#a-10); - (D) include other measures, as the [Administrator](#a-1) considers appropriate, required to determine and allocate by mathematical formula the [property](#a-10) damage caused by [flood](/usc/42/4121.md?p=a-1) or storm surge associated with a [named storm](#a-5); and - (E) subject to [paragraph (3)](#b-3), for each [indeterminate loss](#a-4-A), use the [post-storm assessment](#a-6) to allocate water damage ([flood](/usc/42/4121.md?p=a-1) or storm surge) associated with a [named storm](#a-5). - (3) **Degree of accuracy required—** The [standard](/usc/42/1320d.md?p=7) formula established under [paragraph (1)](#b-1) shall specify that the [Administrator](#a-1) may only use the [post-storm assessment](#a-6) for purposes of the formula if the [Under Secretary](#a-11) certifies that the [post-storm assessment](#a-6) has a degree of accuracy of not less than 90 percent in connection with the specific [indeterminate loss](#a-4-A) for which the assessment and formula are used. - (c) **Authorized use of post-storm assessment and COASTAL Formula—** - (1) **In general—** Subject to [paragraph (3)](#c-3), the [Administrator](#a-1) may use the [post-storm assessment](#a-6) and the [COASTAL Formula](#a-2) to— - (A) review [flood](/usc/42/4121.md?p=a-1) loss payments for [indeterminate losses](#a-4-A), including as part of the quality assurance reinspection [program](/usc/42/274l–1.md?p=4) of the Federal Emergency Management Agency for [claims](/usc/42/1320a–7a.md?p=i-2) under the [national flood insurance program](/usc/42/4004.md?p=a-4) and any other process approved by the [Administrator](#a-1) to review and validate payments under the [national flood insurance program](/usc/42/4004.md?p=a-4) for [indeterminate losses](#a-4-A) following a [named storm](#a-5); and - (B) assist the [national flood insurance program](/usc/42/4004.md?p=a-4) to— - (i) properly cover qualified [flood](/usc/42/4121.md?p=a-1) loss for [claims](/usc/42/1320a–7a.md?p=i-2) for [indeterminate losses](#a-4-A); and - (ii) avoid paying for any loss or damage to [property](#a-10) caused by any peril (including wind), other than [flood](/usc/42/4121.md?p=a-1) or storm surge, that is not covered under a [standard](/usc/42/1320d.md?p=7) policy under the [national flood insurance program](/usc/42/4004.md?p=a-4). - (2) **Federal disaster declaration—** Subject to [paragraph (3)](#c-3), in order to expedite [claims](/usc/42/1320a–7a.md?p=i-2) and reduce costs to the [national flood insurance program](/usc/42/4004.md?p=a-4), following any [major disaster](/usc/42/5302.md?p=a-25) declared by the President under [section 5170 of this title](/usc/42/5170.md) relating to a [named storm](#a-5) in a [coastal State](#a-3), the [Administrator](#a-1) may use the [COASTAL Formula](#a-2) to determine and pay for any [flood](/usc/42/4121.md?p=a-1) loss covered under a [standard insurance policy](#a-9) under the [national flood insurance program](/usc/42/4004.md?p=a-4), if the loss is an [indeterminate loss](#a-4-A). - (3) **National Academy of Sciences evaluation—** - (A) **Evaluation required—** - (i) **Evaluation—** Upon publication of the [COASTAL Formula](#a-2) in the Federal Register as required by [subsection (b)(1)](#b-1), and each time the [Administrator](#a-1) modifies the [COASTAL Formula](#a-2), the National Academy of Sciences shall— - (I) evaluate the expected financial impact on the [national flood insurance program](/usc/42/4004.md?p=a-4) of the use of the [COASTAL Formula](#a-2) as so established or [modified](/usc/42/7501.md?p=4); and - (II) evaluate the validity of the scientific assumptions upon which the formula is based and determine whether the [COASTAL formula](#a-2)[^1] can achieve a degree of accuracy of not less than 90 percent in allocating [flood](/usc/42/4121.md?p=a-1) losses for [indeterminate losses](#a-4-A). - (ii) **Report—** The National Academy of Sciences shall submit a report containing the results of each evaluation under [clause (i)](#c-3-A-i) to the [Administrator](#a-1), the Committee on Banking, [Housing](/usc/42/1490p–2.md?p=r-3), and Urban Affairs and the Committee on [Commerce](/usc/42/6311.md?p=7), Science, and Transportation of the Senate, and the Committee on Financial Services and the Committee on Science, Space, and Technology of the House of [Representatives](/usc/42/3058f.md?p=5). - (B) **Effective date and applicability—** - (i) **Effective date—** Paragraphs (1) and (2) of this subsection shall not take effect unless the report under [subparagraph (A)](#c-3-A) relating to the establishment of the [COASTAL Formula](#a-2) concludes that the use of the [COASTAL Formula](#a-2) for purposes of paragraph[^2] (1) and (2) would not have an adverse financial impact on the [national flood insurance program](/usc/42/4004.md?p=a-4) and that the [COASTAL Formula](#a-2) is based on valid scientific assumptions that would allow a degree of accuracy of not less than 90 percent to be achieved in allocating [flood](/usc/42/4121.md?p=a-1) losses for [indeterminate losses](#a-4-A). - (ii) **Effect of modifications—** Unless the report under [subparagraph (A)](#c-3-A) relating to a [modification](/usc/42/7501.md?p=4) of the [COASTAL Formula](#a-2) concludes that the use of the [COASTAL Formula](#a-2), as so [modified](/usc/42/7501.md?p=4), for purposes of paragraphs [(1)](#c-1) and [(2)](#c-2) would not have an adverse financial impact on the [national flood insurance program](/usc/42/4004.md?p=a-4) and that the [COASTAL Formula](#a-2) is based on valid scientific assumptions that would allow a degree of accuracy of not less than 90 percent to be achieved in allocating [flood](/usc/42/4121.md?p=a-1) losses for [indeterminate losses](#a-4-A) the [Administrator](#a-1) may not use the [COASTAL Formula](#a-2), as so [modified](/usc/42/7501.md?p=4), for purposes of paragraphs [(1)](#c-1) and [(2)](#c-2). - (C) **Funding—** Notwithstanding [section 4017 of this title](/usc/42/4017.md), there shall be available to the [Administrator](#a-1) from the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3), of amounts not otherwise obligated, not more than $750,000 to carry out this paragraph. - (d) **Disclosure of COASTAL Formula—** Not later than 30 days after the date on which a [post-storm assessment](#a-6) is submitted to the [Secretary](#a-8) under [section 3611(b)(2)(E) of title 33](/usc/33/3611.md?p=b-2-E), for each [indeterminate loss](#a-4-A) for which the [COASTAL Formula](#a-2) is used pursuant to [subsection (c)(2)](#c-2), the [Administrator](#a-1) shall disclose to the policyholder that makes a [claim](/usc/42/1320a–7a.md?p=i-2) relating to the [indeterminate loss](#a-4-A)— - (1) that the [Administrator](#a-1) used the [COASTAL Formula](#a-2) with respect to the [indeterminate loss](#a-4-A); and - (2) a summary of the results of the use of the [COASTAL Formula](#a-2). - (e) **Consultation—** In carrying out subsections [(b)](#b) and [(c)](#c), the [Secretary](#a-8) shall consult with— - (1) the [Under Secretary](#a-11) for Oceans and Atmosphere; - (2) the [Director](/usc/42/5061.md?p=1) of the National Institute of [Standards](/usc/42/1320d.md?p=7) and Technology; - (3) the Chief of Engineers of the [Corps](/usc/42/12626.md?p=3) of Engineers; - (4) the [Director](/usc/42/5061.md?p=1) of the [United States](/usc/42/4121.md?p=a-2) Geological Survey; - (5) the [Office](/usc/42/3058f.md?p=1) of the Federal Coordinator for Meteorology; - (6) [State](#a-7) insurance regulators of [coastal States](#a-3); and - (7) such public, private, and academic sector entities as the [Secretary](#a-8) considers appropriate for purposes of carrying out such subsections. - (f) **Recordkeeping—** Each consideration and measure the [Administrator](#a-1) determines necessary to carry out [subsection (b)](#b) may be required, with advanced approval of the [Administrator](#a-1), to be provided for on the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) Elevation Certificate, or maintained otherwise on record if approved by the [Administrator](#a-1), for any [property](#a-10) that qualifies for the [COASTAL Formula](#a-2) under [subsection (c)](#c). - (g) **Civil penalty—** - (1) **In general—** If an insurance [claims](/usc/42/1320a–7a.md?p=i-2) adjuster knowingly and willfully makes a false or inaccurate determination relating to an [indeterminate loss](#a-4-A), the [Administrator](#a-1) may, after notice and opportunity for hearing, impose on the insurance [claims](/usc/42/1320a–7a.md?p=i-2) adjuster a civil penalty of not more than $1,000. - (2) **Deposit—** Notwithstanding [section 3302 of title 31](/usc/31/3302.md) or any other law relating to the crediting of money, the [Administrator](#a-1) shall deposit in the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) any amounts received under this subsection, which shall remain available until expended and be available to the [Administrator](#a-1) for purposes authorized for the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) without further appropriation. - (h) **Rule of construction—** Nothing in this subsection[^3] shall be construed to require the [Administrator](#a-1) to make any payment under the [national flood insurance program](/usc/42/4004.md?p=a-4), or an [insurance company](/usc/42/4121.md?p=a-3) that issues a [standard](/usc/42/1320d.md?p=7) [flood](/usc/42/4121.md?p=a-1) insurance policy under the [national flood insurance program](/usc/42/4004.md?p=a-4) to make any payment, for an [indeterminate loss](#a-4-A) based upon [post-storm assessment](#a-6), the [COASTAL Formula](#a-2), or any other loss [allocation](/usc/42/2021b.md?p=2) or [post-storm assessment](#a-6) arising under the laws or ordinances of any [State](#a-7). - (i) **Applicability—** [Subsection (c)](#c) shall apply with respect to an [indeterminate loss](#a-4-A) associated with a [named storm](#a-5) that occurs 60 days after publication of the [COASTAL Formula](#a-2) in the Federal Register as required by [subsection (b)(1)](#b-1). - (j) **Rule of Construction—** Nothing in this subsection[^3] shall be construed to negate, set aside, or void any policy limit, including any loss limitation, set forth in a [standard insurance policy](#a-9). - (k) **Rule of construction—** Nothing in this section shall be construed to create a [cause](/usc/42/9908.md?p=c-2) of action under this chapter. # §4071. Federal operation of program; determination by Administrator; fiscal agents; report to Congress - (a) If at any time, after consultation with [representatives](/usc/42/3058f.md?p=5) of the insurance industry, the [Administrator](/usc/42/4003.md?p=a-6) determines that operation of the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) as provided under part A cannot be carried out, or that such operation, in itself, would be assisted materially by the Federal Government’s assumption, in whole or in part, of the operational responsibility for [flood](/usc/42/4121.md?p=a-1) insurance under this chapter (on a temporary or other basis) he shall promptly undertake any necessary arrangements to carry out the [program](/usc/42/274l–1.md?p=4) of [flood](/usc/42/4121.md?p=a-1) insurance authorized under subchapter I through the [facilities](/usc/42/11049.md?p=4) of the Federal Government, utilizing, for purposes of providing [flood](/usc/42/4121.md?p=a-1) insurance coverage, either— - (1) [insurance companies](/usc/42/4121.md?p=a-3) and [other insurers](/usc/42/4121.md?p=a-3), insurance agents and brokers, and [insurance adjustment organizations](/usc/42/4121.md?p=a-4), as fiscal agents of the [United States](/usc/42/4121.md?p=a-2), - (2) such other officers and [employees](/usc/42/1320a–7h.md?p=e-7) of any executive agency (as defined in [section 105 of title 5](/usc/5/105.md)) as the [Administrator](/usc/42/4003.md?p=a-6) and the head of any such agency may from time to time, agree upon, on a reimbursement or other basis, or - (3) both the alternatives specified in paragraphs [(1)](#a-1) and [(2)](#a-2). - (b) Upon making the determination referred to in [subsection (a)](#a), the [Administrator](/usc/42/4003.md?p=a-6) shall make a report to the Congress and, at the same time, to the private [insurance companies](/usc/42/4121.md?p=a-3) participating in the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) pursuant to [section 4017 of this title](/usc/42/4017.md). Such report shall— - (1) [state](/usc/42/4121.md?p=a-2) the reason for such determinations, - (2) be supported by pertinent findings, - (3) indicate the extent to which it is anticipated that the insurance industry will be utilized in providing [flood](/usc/42/4121.md?p=a-1) insurance coverage under the [program](/usc/42/274l–1.md?p=4), and - (4) contain such recommendations as the [Administrator](/usc/42/4003.md?p=a-6) deems advisable. The [Administrator](/usc/42/4003.md?p=a-6) shall not implement the [program](/usc/42/274l–1.md?p=4) of [flood](/usc/42/4121.md?p=a-1) insurance authorized under subchapter I through the [facilities](/usc/42/11049.md?p=4) of the Federal Government until 9 months after the date of submission of the report under this subsection unless it would be impossible to continue to effectively carry out the [National Flood Insurance Program](/usc/42/4004.md?p=a-4) operations during this time. # §4072. Adjustment and payment of claims; judicial review; limitations; jurisdiction In the event the [program](/usc/42/274l–1.md?p=4) is carried out as provided in [section 4071 of this title](/usc/42/4071.md), the [Administrator](/usc/42/4003.md?p=a-6) shall be authorized to adjust and make payment of any [claims](/usc/42/1320a–7a.md?p=i-2) for proved and approved losses covered by [flood](/usc/42/4121.md?p=a-1) insurance, and upon the disallowance by the [Administrator](/usc/42/4003.md?p=a-6) of any such [claim](/usc/42/1320a–7a.md?p=i-2), or upon the refusal of the claimant to accept the amount allowed upon any such [claim](/usc/42/1320a–7a.md?p=i-2), the claimant, within one year after the date of mailing of notice of disallowance or partial disallowance by the [Administrator](/usc/42/4003.md?p=a-6), may institute an action against the [Administrator](/usc/42/4003.md?p=a-6) on such [claim](/usc/42/1320a–7a.md?p=i-2) in the [United States](/usc/42/4121.md?p=a-2) district court for the district in which the insured property or the major part thereof shall have been situated, and original exclusive jurisdiction is hereby conferred upon such court to hear and determine such action without regard to the amount in the controversy. # §4081. Services by insurance industry - (a) **Contracting for services and facilities—** In administering the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) under this subchapter, the [Administrator](/usc/42/4003.md?p=a-6) is authorized to enter into any contracts, [agreements](/usc/42/1320b–8.md?p=a-3-A), or other appropriate arrangements which may, from time to time, be necessary for the purpose of utilizing, on such terms and conditions as may be agreed upon, the [facilities](/usc/42/11049.md?p=4) and services of any [insurance companies](/usc/42/4121.md?p=a-3) or [other insurers](/usc/42/4121.md?p=a-3), insurance agents and brokers, or [insurance adjustment organizations](/usc/42/4121.md?p=a-4); and such contracts, [agreements](/usc/42/1320b–8.md?p=a-3-A), or arrangements may include provision for payment of applicable operating costs and allowances for such [facilities](/usc/42/11049.md?p=4) and services as set forth in the schedules prescribed under [section 4018 of this title](/usc/42/4018.md). - (b) **Certain laws inapplicable to contracting—** Any such contracts, [agreements](/usc/42/1320b–8.md?p=a-3-A), or other arrangements may be entered into without regard to the provisions of [section 6101 of title 41](/usc/41/6101.md) or any other provision of law requiring competitive bidding and without regard to the provisions of [chapter 10](/usc/5/chptI-ch10.md) of title 5. - (c) **Hold harmless—** The [Administrator](/usc/42/4003.md?p=a-6) of the Federal Emergency Management Agency shall hold any agent or broker selling or undertaking to sell [flood](/usc/42/4121.md?p=a-1) insurance under this chapter harmless from any judgment for [damages](/usc/42/9601.md?p=6) against such agent or broker as a result of any court action by a policyholder or applicant arising out of an error or omission on the part of the Federal Emergency Management Agency, and shall provide any such agent or broker with indemnification, including court costs and reasonable attorney fees, arising out of and caused by an error or omission on the part of the Federal Emergency Management Agency and its contractors. The [Administrator](/usc/42/4003.md?p=a-6) of the Federal Emergency Management Agency may not hold harmless or indemnify an agent or broker for his or her error or omission. - (d) **FEMA authority on transfer of policies—** Notwithstanding any other provision of this chapter, the [Administrator](/usc/42/4003.md?p=a-6) may, at the discretion of the [Administrator](/usc/42/4003.md?p=a-6), refuse to accept the transfer of the administration of policies for coverage under the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) under this chapter that are written and administered by any [insurance company](/usc/42/4121.md?p=a-3) or [other insurer](/usc/42/4121.md?p=a-3), or any [insurance agent or broker](/usc/42/4121.md?p=a-3). - (e) **Risk transfer—** The [Administrator](/usc/42/4003.md?p=a-6) may secure reinsurance of coverage provided by the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) from the private reinsurance and capital markets at rates and on terms determined by the [Administrator](/usc/42/4003.md?p=a-6) to be reasonable and appropriate, in an amount sufficient to maintain the ability of the [program](/usc/42/274l–1.md?p=4) to pay [claims](/usc/42/1320a–7a.md?p=i-2). # §4082. Use of insurance pool, companies, or other private organizations for certain payments - (a) **Authorization to enter into contracts for certain responsibilities—** In order to provide for maximum efficiency in the administration of the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) and in order to facilitate the expeditious payment of any Federal [funds](/usc/42/12854.md?p=3) under such [program](/usc/42/274l–1.md?p=4), the [Administrator](/usc/42/4003.md?p=a-6) may enter into contracts with pool formed or otherwise created under [section 4051 of this title](/usc/42/4051.md), or any [insurance company](/usc/42/4121.md?p=a-3) or other private organizations, for the purpose of securing reinsurance of insurance coverage provided by the [program](/usc/42/274l–1.md?p=4) or for the purpose of securing performance by such pool, company, or organization of any or all of the following responsibilities: - (1) Estimating and later determining any amounts of payments to be made. - (2) Receiving from the [Administrator](/usc/42/4003.md?p=a-6), disbursing, and accounting for [funds](/usc/42/12854.md?p=3) in making such payments. - (3) Making such audits of the records of any [insurance company](/usc/42/4121.md?p=a-3) or [other insurer](/usc/42/4121.md?p=a-3), [insurance agent or broker](/usc/42/4121.md?p=a-3), or [insurance adjustment organization](/usc/42/4121.md?p=a-4) as may be necessary to assure that proper payments are made. - (4) Placing reinsurance coverage on insurance provided by such [program](/usc/42/274l–1.md?p=4). - (5) Otherwise assisting in such manner as the contract may provide to further the purposes of this chapter. - (b) **Terms and conditions of contract—** Any contract with the pool or an [insurance company](/usc/42/4121.md?p=a-3) or other private organization under this section may contain such terms and conditions as the [Administrator](/usc/42/4003.md?p=a-6) finds necessary or appropriate for carrying out responsibilities under [subsection (a)](#a), and may provide for payment of any costs which the [Administrator](/usc/42/4003.md?p=a-6) determines are incidental to carrying out such responsibilities which are covered by the contract. - (c) **Competitive bidding—** Any contract entered into under [subsection (a)](#a) may be entered into without regard to [section 6101 of title 41](/usc/41/6101.md) or any other provision of law requiring competitive bidding. - (d) **Findings of Administrator—** No contract may be entered into under this section unless the [Administrator](/usc/42/4003.md?p=a-6) finds that the pool, company, or organization will perform its obligations under the contract efficiently and effectively, and will meet such requirements as to financial responsibility, legal authority, and other matters as he finds pertinent. - (e) **Bond; liability of certifying officers and disbursing officers—** - (1) Any such contract may require the pool, company, or organization or any of its officers or [employees](/usc/42/1320a–7h.md?p=e-7) certifying payments or disbursing [funds](/usc/42/12854.md?p=3) pursuant to the contract, or otherwise participating in carrying out the contract, to give surety bond to the [United States](/usc/42/4121.md?p=a-2) in such amount as the [Administrator](/usc/42/4003.md?p=a-6) may deem appropriate. - (2) No individual designated pursuant to a contract under this section to certify payments shall, in the absence of gross negligence or intent to defraud the [United States](/usc/42/4121.md?p=a-2), be liable with respect to any payment certified by him under this section. - (3) No officer disbursing [funds](/usc/42/12854.md?p=3) shall in the absence of gross negligence or intent to defraud the [United States](/usc/42/4121.md?p=a-2), be liable with respect to any payment by him under this section if it was based upon a voucher signed by an individual designated to certify payments as provided in paragraph (2) of this subsection. - (f) **Term of contract; renewals; termination—** Any contract entered into under this section shall be for a term of one year, and may be made automatically renewable from term to term in the absence of notice by either party of an intention to terminate at the end of the current term; except that the [Administrator](/usc/42/4003.md?p=a-6) may terminate any such contract at any time (after reasonable notice to the pool, company, or organization involved) if he finds that the pool, company, or organization has failed substantially to carry out the contract, or is carrying out the contract in a manner inconsistent with the efficient and effective administration of the [flood](/usc/42/4121.md?p=a-1) insurance [program](/usc/42/274l–1.md?p=4) authorized under this chapter. # §4083. Settlement of claims; arbitration - (a) The [Administrator](/usc/42/4003.md?p=a-6) is authorized to make final settlement of any [claims](/usc/42/1320a–7a.md?p=i-2) or demands which may arise as a result of any financial transactions which he is authorized to carry out under this subchapter, and may, to assist him in making any such settlement, refer any disputes relating to such [claims](/usc/42/1320a–7a.md?p=i-2) or demands to arbitration, with the consent of the parties concerned. - (b) Such arbitration shall be advisory in nature, and any award, decision, or recommendation which may be made shall become final only upon the approval of the [Administrator](/usc/42/4003.md?p=a-6). # §4084. Records and audits - (a) The [flood](/usc/42/4121.md?p=a-1) insurance pool formed or otherwise created under part A of this subchapter, and any [insurance company](/usc/42/4121.md?p=a-3) or other private organization executing any contract, [agreement](/usc/42/1320b–8.md?p=a-3-A), or other appropriate arrangement with the [Administrator](/usc/42/4003.md?p=a-6) under part B of this subchapter or this part, shall keep such records as the [Administrator](/usc/42/4003.md?p=a-6) shall prescribe, including records which fully disclose the total costs of the [program](/usc/42/274l–1.md?p=4) undertaken or the services being rendered, and such other records as will facilitate an effective audit. - (b) The [Administrator](/usc/42/4003.md?p=a-6) and the Comptroller General of the [United States](/usc/42/4121.md?p=a-2), or any of their duly authorized [representatives](/usc/42/3058f.md?p=5), shall have access for the purpose of audit and examination to any books, documents, papers, and records of the pool and any such [insurance company](/usc/42/4121.md?p=a-3) or other private organization that are pertinent to the costs of the [program](/usc/42/274l–1.md?p=4) undertaken or the services being rendered. # §4101. Identification of flood-prone areas - (a) **Publication of information; establishment of flood-risk zones; estimates of flood-caused loss—** The [Administrator](/usc/42/4003.md?p=a-6) is authorized to consult with, receive information from, and enter into any [agreements](/usc/42/1320b–8.md?p=a-3-A) or other arrangements with the [Secretaries](/usc/42/242q–4.md?p=2) of the Army, the Interior, Agriculture, and [Commerce](/usc/42/6311.md?p=7), the Tennessee Valley Authority, and the heads of other Federal departments or agencies, on a reimbursement basis, or with the head of any [State](/usc/42/4121.md?p=a-2) or local agency, or enter into contracts with any [persons](/usc/42/4121.md?p=a-5) or private firms, in order that he may— - (1) identify and publish information with respect to all [flood](/usc/42/4121.md?p=a-1) plain areas, including coastal areas located in the [United States](/usc/42/4121.md?p=a-2), which has special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3), within five years following August 1, 1968, and - (2) establish or update [flood](/usc/42/4121.md?p=a-1)-risk zone data in all such areas, and make estimates with respect to the rates of probable [flood](/usc/42/4121.md?p=a-1) caused loss for the various [flood](/usc/42/4121.md?p=a-1) risk zones for each of these areas until the date specified in [section 4026 of this title](/usc/42/4026.md). - (b) **Accelerated identification of flood-risk zones; authority of Administrator: grants, technical assistance, transactions, and payments—** The [Administrator](/usc/42/4003.md?p=a-6) is directed to accelerate the identification of risk zones within [flood](/usc/42/4121.md?p=a-1)-prone and mudslide-prone areas, as provided by [subsection (a)(2)](#a-2) of this section, in order to make known the degree of [hazard](/usc/42/5165f.md?p=a-3) within each such zone at the earliest possible date. To accomplish this objective, the [Administrator](/usc/42/4003.md?p=a-6) is authorized, without regard to subsections (a) and (b) of [section 3324 of title 31](/usc/31/3324.md) and [section 6101 of title 41](/usc/41/6101.md), to make grants, provide technical assistance, and enter into contracts, cooperative [agreements](/usc/42/1320b–8.md?p=a-3-A), or other transactions, on such terms as he may deem appropriate, or consent to [modifications](/usc/42/7501.md?p=4) thereof, and to make advance or progress payments in connection therewith. - (c) **Priority in allocation of manpower and other available resources for identification and mapping of flood hazard areas and flood-risk zones—** The [Secretary](/usc/42/242q–4.md?p=2) of Defense (through the Army [Corps](/usc/42/12626.md?p=3) of Engineers), the [Secretary](/usc/42/242q–4.md?p=2) of the Interior (through the [United States](/usc/42/4121.md?p=a-2) Geological Survey), the [Secretary](/usc/42/242q–4.md?p=2) of Agriculture (through the Soil Conservation Service), the [Secretary](/usc/42/242q–4.md?p=2) of [Commerce](/usc/42/6311.md?p=7) (through the National Oceanic and Atmospheric Administration), the head of the Tennessee Valley Authority, and the heads of all other [Federal agencies](/usc/42/4003.md?p=a-2) engaged in the identification or delineation of [flood](/usc/42/4121.md?p=a-1)-risk zones within the several [States](/usc/42/4121.md?p=a-2) shall, in consultation with the [Administrator](/usc/42/4003.md?p=a-6), give the highest practicable priority in the [allocation](/usc/42/2021b.md?p=2) of available manpower and other available resources to the identification and mapping of [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) areas and [flood](/usc/42/4121.md?p=a-1)-risk zones, in order to assist the [Administrator](/usc/42/4003.md?p=a-6) to meet the deadline established by this section. - (d) **Plan for bringing communities with flood-risk zones into full program status—** The [Administrator](/usc/42/4003.md?p=a-6) shall, not later than September 30, 1984, submit to the Congress a plan for bringing all [communities](/usc/42/4003.md?p=a-1) containing [flood](/usc/42/4121.md?p=a-1)-risk zones into full [program](/usc/42/274l–1.md?p=4) status by September 30, 1987. - (e) **Review of flood maps—** Once during each 5-year period (the 1st such period beginning on September 23, 1994) or more often as the [Administrator](/usc/42/4003.md?p=a-6) determines necessary, the [Administrator](/usc/42/4003.md?p=a-6) shall assess the need to revise and update all floodplain areas and [flood](/usc/42/4121.md?p=a-1) risk zones identified, delineated, or established under this section, based on an analysis of all [natural hazards](/usc/42/300j–19a.md?p=l-1) affecting [flood](/usc/42/4121.md?p=a-1) risks. - (f) **Updating flood maps—** The [Administrator](/usc/42/4003.md?p=a-6) shall revise and update any floodplain areas and [flood](/usc/42/4121.md?p=a-1)-risk zones— - (1) upon the determination of the [Administrator](/usc/42/4003.md?p=a-6), according to the assessment under [subsection (e)](#e), that revision and updating are necessary for the areas and zones; or - (2) upon the request from any [State](/usc/42/4121.md?p=a-2) or [local government](/usc/42/8401a.md) stating that specific floodplain areas or [flood](/usc/42/4121.md?p=a-1)-risk zones in the [State](/usc/42/4121.md?p=a-2) or locality need revision or updating, if sufficient technical data justifying the request is submitted and the [unit](/usc/42/1395w–114b.md?p=g-2) of government making the request agrees to provide [funds](/usc/42/12854.md?p=3) in an amount determined by the [Administrator](/usc/42/4003.md?p=a-6). - (g) **Availability of flood maps—** To promote compliance with the requirements of this chapter, the [Administrator](/usc/42/4003.md?p=a-6) shall make [flood](/usc/42/4121.md?p=a-1) insurance rate maps and related information available free of charge to the Federal entities for lending regulation, [Federal agency lenders](/usc/42/4003.md?p=a-7), [State agencies](/usc/42/1396r–8.md?p=k-9) directly responsible for coordinating the [national flood insurance program](/usc/42/4004.md?p=a-4), and appropriate [representatives](/usc/42/3058f.md?p=5) of [communities](/usc/42/4003.md?p=a-1) participating in the [national flood insurance program](/usc/42/4004.md?p=a-4), and at a reasonable cost to all other [persons](/usc/42/4121.md?p=a-5). Any receipts resulting from this subsection shall be deposited in the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3), pursuant to [section 4017(b)(6) of this title](/usc/42/4017.md?p=b-6). - (h) **Notification of flood map changes—** The [Administrator](/usc/42/4003.md?p=a-6) shall [cause](/usc/42/9908.md?p=c-2) notice to be published in the Federal Register (or shall provide notice by another comparable method) of any change to [flood](/usc/42/4121.md?p=a-1) insurance map [panels](/usc/42/10362.md?p=16) and any change to [flood](/usc/42/4121.md?p=a-1) insurance map [panels](/usc/42/10362.md?p=16) issued in the form of a letter of map amendment or a letter of map revision. Such notice shall be published or otherwise provided not later than 30 days after the map change or revision becomes effective. Notice by any method other than publication in the Federal Register shall include all pertinent information, provide for regular and frequent distribution, and be at least as accessible to map users as notice in the Federal Register. All notices under this subsection shall include information on how to obtain copies of the changes or revisions. - (i) **Compendia of flood map changes—** Every 6 months, the [Administrator](/usc/42/4003.md?p=a-6) shall publish separately in their entirety within a compendium, all changes and revisions to [flood](/usc/42/4121.md?p=a-1) insurance map [panels](/usc/42/10362.md?p=16) and all letters of map amendment and letters of map revision for which notice was published in the Federal Register or otherwise provided during the preceding 6 months. The [Administrator](/usc/42/4003.md?p=a-6) shall make such compendia available, free of charge, to Federal entities for lending regulation, [Federal agency lenders](/usc/42/4003.md?p=a-7), and [States](/usc/42/4121.md?p=a-2) and [communities](/usc/42/4003.md?p=a-1) participating in the [national flood insurance program](/usc/42/4004.md?p=a-4) pursuant to [section 4017 of this title](/usc/42/4017.md) and at cost to all other parties. Any receipts resulting from this subsection shall be deposited in the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3), pursuant to [section 4017(b)(6) of this title](/usc/42/4017.md?p=b-6). - (j) **Provision of information—** In the implementation of revisions to and updates of [flood](/usc/42/4121.md?p=a-1) insurance rate maps, the [Administrator](/usc/42/4003.md?p=a-6) shall share information, to the extent appropriate, with the Under [Secretary](/usc/42/242q–4.md?p=2) of [Commerce](/usc/42/6311.md?p=7) for Oceans and Atmosphere and [representatives](/usc/42/3058f.md?p=5) from [State](/usc/42/4121.md?p=a-2) coastal zone management [programs](/usc/42/274l–1.md?p=4). # §4101a. Technical Mapping Advisory Council - (a) **Establishment—** There is established a [council](/usc/42/300f.md?p=9) to be known as the Technical Mapping [Advisory Council](/usc/42/274l–1.md?p=1) (in this section referred to as the “[Council](/usc/42/300f.md?p=9)”). - (b) **Membership—** - (1) **In general—** The [Council](/usc/42/300f.md?p=9) shall consist of— - (A) the [Administrator](/usc/42/4003.md?p=a-6) (or the designee thereof); - (B) the [Secretary](/usc/42/242q–4.md?p=2) of the Interior (or the designee thereof); - (C) the [Secretary](/usc/42/242q–4.md?p=2) of Agriculture (or the designee thereof); - (D) the Under [Secretary](/usc/42/242q–4.md?p=2) of [Commerce](/usc/42/6311.md?p=7) for Oceans and Atmosphere (or the designee thereof); and - (E) 16 additional members appointed by the [Administrator](/usc/42/4003.md?p=a-6) or the designee of the [Administrator](/usc/42/4003.md?p=a-6), who shall be— - (i) a member of a recognized professional surveying association or organization; - (ii) a member of a recognized professional mapping association or organization; - (iii) a member of a recognized professional engineering association or organization; - (iv) a member of a recognized professional association or organization representing [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) determination firms; - (v) a [representative](/usc/42/3058f.md?p=5) of the [United States](/usc/42/4121.md?p=a-2) Geological Survey; - (vi) a [representative](/usc/42/3058f.md?p=5) of a recognized professional association or organization representing [State](/usc/42/4121.md?p=a-2) geographic information; - (vii) a [representative](/usc/42/3058f.md?p=5) of [State](/usc/42/4121.md?p=a-2) national [flood](/usc/42/4121.md?p=a-1) insurance coordination [offices](/usc/42/3058f.md?p=1); - (viii) a [representative](/usc/42/3058f.md?p=5) of the [Corps](/usc/42/12626.md?p=3) of Engineers; - (ix) a member of a recognized regional [flood](/usc/42/4121.md?p=a-1) and storm water management organization; - (x) 2 [representatives](/usc/42/3058f.md?p=5) of different [State](/usc/42/4121.md?p=a-2) government agencies that have entered into cooperating technical partnerships with the [Administrator](/usc/42/4003.md?p=a-6) and have demonstrated the capability to produce [flood](/usc/42/4121.md?p=a-1) insurance rate maps; - (xi) 2 [representatives](/usc/42/3058f.md?p=5) of different [local government](/usc/42/8401a.md) agencies that have entered into cooperating technical partnerships with the [Administrator](/usc/42/4003.md?p=a-6) and have demonstrated the capability to produce [flood](/usc/42/4121.md?p=a-1) insurance maps; - (xii) a member of a recognized floodplain management association or organization; - (xiii) a member of a recognized risk management association or organization; and - (xiv) a [State](/usc/42/4121.md?p=a-2) mitigation officer. - (2) **Qualifications—** Members of the [Council](/usc/42/300f.md?p=9) shall be appointed based on their demonstrated knowledge and competence regarding surveying, cartography, remote sensing, geographic information systems, or the technical aspects of preparing and using [flood](/usc/42/4121.md?p=a-1) insurance rate maps. In appointing members under [paragraph (1)(E)](#b-1-E), the [Administrator](/usc/42/4003.md?p=a-6) shall, to the maximum extent practicable, ensure that the membership of the [Council](/usc/42/300f.md?p=9) has a balance of Federal, [State](/usc/42/4121.md?p=a-2), local, tribal, and private members, and includes geographic diversity, including representation from areas with coastline on the Gulf of Mexico and other [States](/usc/42/4121.md?p=a-2) containing areas identified by the [Administrator](/usc/42/4003.md?p=a-6) as at high risk for flooding or as areas having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3). - (c) **Duties—** The [Council](/usc/42/300f.md?p=9) shall— - (1) recommend to the [Administrator](/usc/42/4003.md?p=a-6) how to improve in a [cost-effective](/usc/42/1396e.md?p=e-2) manner the— - (A) accuracy, general quality, ease of use, and distribution and dissemination of [flood](/usc/42/4121.md?p=a-1) insurance rate maps and risk data; and - (B) performance metrics and milestones required to effectively and efficiently map [flood](/usc/42/4121.md?p=a-1) risk areas in the [United States](/usc/42/4121.md?p=a-2); - (2) recommend to the [Administrator](/usc/42/4003.md?p=a-6) mapping [standards](/usc/42/1320d.md?p=7) and guidelines for— - (A) [flood](/usc/42/4121.md?p=a-1) insurance rate maps; and - (B) data accuracy, data quality, data currency, and data eligibility; - (3) recommend to the [Administrator](/usc/42/4003.md?p=a-6) how to maintain, on an ongoing basis, [flood](/usc/42/4121.md?p=a-1) insurance rate maps and [flood](/usc/42/4121.md?p=a-1) risk identification; - (4) recommend procedures for delegating mapping activities to [State](/usc/42/4121.md?p=a-2) and local mapping partners; - (5) recommend to the [Administrator](/usc/42/4003.md?p=a-6) and other [Federal agencies](/usc/42/4003.md?p=a-2) participating in the [Council](/usc/42/300f.md?p=9)— - (A) methods for improving interagency and intergovernmental coordination on [flood](/usc/42/4121.md?p=a-1) mapping and [flood](/usc/42/4121.md?p=a-1) risk determination; and - (B) a funding strategy to leverage and coordinate budgets and expenditures across [Federal agencies](/usc/42/4003.md?p=a-2); and - (6) submit an annual report to the [Administrator](/usc/42/4003.md?p=a-6) that contains— - (A) a description of the activities of the [Council](/usc/42/300f.md?p=9); - (B) an evaluation of the status and performance of [flood](/usc/42/4121.md?p=a-1) insurance rate maps and mapping activities to revise and update [flood](/usc/42/4121.md?p=a-1) insurance rate maps, as required under [section 4101b of this title](/usc/42/4101b.md); and - (C) a summary of recommendations made by the [Council](/usc/42/300f.md?p=9) to the [Administrator](/usc/42/4003.md?p=a-6). - (d) **Future conditions risk assessment and modeling report—** - (1) **In general—** The [Council](/usc/42/300f.md?p=9) shall consult with scientists and technical experts, other [Federal agencies](/usc/42/4003.md?p=a-2), [States](/usc/42/4121.md?p=a-2), and local [communities](/usc/42/4003.md?p=a-1) to— - (A) develop recommendations on how to— - (i) ensure that [flood](/usc/42/4121.md?p=a-1) insurance rate maps incorporate the best available climate science to assess [flood](/usc/42/4121.md?p=a-1) risks; and - (ii) ensure that the Federal Emergency Management Agency uses the best available methodology to consider the impact of— - (I) the rise in the sea level; and - (II) future development on [flood](/usc/42/4121.md?p=a-1) risk; and - (B) not later than 1 year after July 6, 2012, prepare written recommendations in a future conditions risk assessment and modeling report and to submit such recommendations to the [Administrator](/usc/42/4003.md?p=a-6). - (2) **Responsibility of the Administrator—** The [Administrator](/usc/42/4003.md?p=a-6), as part of the ongoing [program](/usc/42/274l–1.md?p=4) to review and update [National Flood Insurance Program](/usc/42/4004.md?p=a-4) rate maps under [section 4101b of this title](/usc/42/4101b.md), shall incorporate any future risk assessment submitted under [paragraph (1)(B)](#d-1-B) in any such revision or update. - (e) **Chairperson—** The members of the [Council](/usc/42/300f.md?p=9) shall elect 1 member to serve as the chairperson of the [Council](/usc/42/300f.md?p=9) (in this section referred to as the “Chairperson”). - (f) **Coordination—** To ensure that the [Council](/usc/42/300f.md?p=9)’s recommendations are consistent, to the maximum extent practicable, with national digital spatial data collection and management [standards](/usc/42/1320d.md?p=7), the Chairperson shall consult with the Chairperson of the Federal Geographic Data Committee (established pursuant to [Office](/usc/42/3058f.md?p=1) of Management and Budget Circular A–16). - (g) **Compensation—** Members of the [Council](/usc/42/300f.md?p=9) shall receive no additional compensation by reason of their service on the [Council](/usc/42/300f.md?p=9). - (h) **Meetings and actions—** - (1) **In general—** The [Council](/usc/42/300f.md?p=9) shall meet not less frequently than twice each year at the request of the Chairperson or a majority of its members, and may take action by a vote of the majority of the members. - (2) **Initial meeting—** The [Administrator](/usc/42/4003.md?p=a-6), or a [person](/usc/42/4121.md?p=a-5) designated by the [Administrator](/usc/42/4003.md?p=a-6), shall request and coordinate the initial meeting of the [Council](/usc/42/300f.md?p=9). - (i) **Officers—** The Chairperson may appoint officers to assist in carrying out the duties of the [Council](/usc/42/300f.md?p=9) under [subsection (c)](#c). - (j) **Staff—** - (1) **Staff of FEMA—** Upon the request of the Chairperson, the [Administrator](/usc/42/4003.md?p=a-6) may detail, on a nonreimbursable basis, personnel of the Federal Emergency Management Agency to assist the [Council](/usc/42/300f.md?p=9) in carrying out its duties. - (2) **Staff of other Federal agencies—** Upon request of the Chairperson, any other [Federal agency](/usc/42/4003.md?p=a-2) that is a member of the [Council](/usc/42/300f.md?p=9) may detail, on a nonreimbursable basis, personnel to assist the [Council](/usc/42/300f.md?p=9) in carrying out its duties. - (k) **Powers—** In carrying out this section, the [Council](/usc/42/300f.md?p=9) may hold hearings, receive evidence and assistance, provide information, and conduct research, as it considers appropriate. - (l) **Report to Congress—** The [Administrator](/usc/42/4003.md?p=a-6), on an annual basis, shall report to the Committee on Banking, [Housing](/usc/42/1490p–2.md?p=r-3), and Urban Affairs of the Senate, the Committee on Financial Services of the House of [Representatives](/usc/42/3058f.md?p=5), and the [Office](/usc/42/3058f.md?p=1) of Management and Budget on the— - (1) recommendations made by the [Council](/usc/42/300f.md?p=9); - (2) actions taken by the Federal Emergency Management Agency to address such recommendations to improve [flood](/usc/42/4121.md?p=a-1) insurance rate maps and [flood](/usc/42/4121.md?p=a-1) risk data; and - (3) any recommendations made by the [Council](/usc/42/300f.md?p=9) that have been deferred or not acted upon, together with an explanatory statement. # §4101b. National Flood Mapping Program - (a) **Reviewing, updating, and maintaining maps—** The [Administrator](/usc/42/4003.md?p=a-6), in coordination with the Technical Mapping [Advisory Council](/usc/42/274l–1.md?p=1) established under [section 4101a of this title](/usc/42/4101a.md), shall establish an ongoing [program](/usc/42/274l–1.md?p=4) under which the [Administrator](/usc/42/4003.md?p=a-6) shall review, update, and maintain [National Flood Insurance Program](/usc/42/4004.md?p=a-4) rate maps in accordance with this section. - (b) **Mapping—** - (1) **In general—** In carrying out the [program](/usc/42/274l–1.md?p=4) established under [subsection (a)](#a), the [Administrator](/usc/42/4003.md?p=a-6) shall— - (A) identify, review, update, maintain, and publish [National Flood Insurance Program](/usc/42/4004.md?p=a-4) rate maps with respect to— - (i) all populated areas and areas of possible population growth located within the [100-year floodplain](/usc/42/4004.md?p=a-1); - (ii) all populated areas and areas of possible population growth located within the [500-year floodplain](/usc/42/4004.md?p=a-2); - (iii) areas of residual risk, including areas that are protected by levees, dams, and other [flood](/usc/42/4121.md?p=a-1) control structures; - (iv) areas that could be inundated as a result of the failure of a levee, dam, or other [flood](/usc/42/4121.md?p=a-1) control structure; - (v) areas that are protected by non-structural [flood](/usc/42/4121.md?p=a-1) mitigation features; and - (vi) the level of protection provided by [flood](/usc/42/4121.md?p=a-1) control structures and by non-structural [flood](/usc/42/4121.md?p=a-1) mitigation features; - (B) establish or update [flood](/usc/42/4121.md?p=a-1)-risk zone data in all such areas, and make estimates with respect to the rates of probable [flood](/usc/42/4121.md?p=a-1) caused loss for the various [flood](/usc/42/4121.md?p=a-1) risk zones for each such area; and - (C) use, in identifying, reviewing, updating, maintaining, or publishing any [National Flood Insurance Program](/usc/42/4004.md?p=a-4) rate map required under this section or under the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 ([42 U.S.C. 4011](/usc/42/4011.md) et seq.), the most accurate topography and elevation data available. - (2) **Mapping elements—** Each map updated under this section shall— - (A) assess the accuracy of current ground elevation data used for hydrologic and hydraulic modeling of flooding sources and mapping of the [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) and wherever necessary acquire new ground elevation data utilizing the most up-to-date geospatial technologies in accordance with guidelines and specifications of the Federal Emergency Management Agency; and - (B) develop [National Flood Insurance Program](/usc/42/4004.md?p=a-4) [flood](/usc/42/4121.md?p=a-1) data on a watershed basis— - (i) to provide the most technically effective and efficient studies and hydrologic and hydraulic modeling; and - (ii) to eliminate, to the maximum extent possible, discrepancies in base [flood](/usc/42/4121.md?p=a-1) elevations between adjacent political subdivisions. - (3) **Other inclusions—** In updating maps under this section, the [Administrator](/usc/42/4003.md?p=a-6) shall include— - (A) any relevant information on coastal inundation from— - (i) an applicable inundation map of the [Corps](/usc/42/12626.md?p=3) of Engineers; and - (ii) data of the National Oceanic and Atmospheric Administration relating to storm surge modeling; - (B) any relevant information of the [United States](/usc/42/4121.md?p=a-2) Geological Survey on stream flows, watershed characteristics, and topography that is useful in the identification of [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) areas, as determined by the [Administrator](/usc/42/4003.md?p=a-6); - (C) any relevant information on land subsidence, coastal erosion areas, changing lake levels, and other [flood](/usc/42/4121.md?p=a-1)-related [hazards](/usc/42/5165f.md?p=a-3); - (D) any relevant information or data of the National Oceanic and Atmospheric Administration and the [United States](/usc/42/4121.md?p=a-2) Geological Survey relating to the best available science regarding future changes in sea levels, precipitation, and intensity of hurricanes; and - (E) any other relevant information as may be recommended by the Technical Mapping [Advisory Committee](/usc/42/7703.md?p=9). - (c) **Standards—** In updating and maintaining maps under this section, the [Administrator](/usc/42/4003.md?p=a-6) shall— - (1) establish [standards](/usc/42/1320d.md?p=7) to— - (A) ensure that maps are adequate for— - (i) [flood](/usc/42/4121.md?p=a-1) risk determinations; and - (ii) use by [State](/usc/42/4121.md?p=a-2) and [local governments](/usc/42/8401a.md) in managing development to reduce the risk of flooding; and - (B) facilitate identification and use of consistent methods of data collection and analysis by the [Administrator](/usc/42/4003.md?p=a-6), in conjunction with [State](/usc/42/4121.md?p=a-2) and [local governments](/usc/42/8401a.md), in developing maps for [communities](/usc/42/4003.md?p=a-1) with similar [flood](/usc/42/4121.md?p=a-1) risks, as determined by the [Administrator](/usc/42/4003.md?p=a-6); and - (2) publish maps in a format that is— - (A) digital geospatial data compliant; - (B) compliant with the open publishing and data [exchange](/usc/42/300gg–91.md?p=d-21) [standards](/usc/42/1320d.md?p=7) established by the Open Geospatial [Consortium](/usc/42/16282.md?p=d-4); and - (C) aligned with official data defined by the National Geodetic Survey. - (d) **Communication and outreach—** - (1) **In general—** The [Administrator](/usc/42/4003.md?p=a-6) shall— - (A) before commencement of any mapping or map updating process, notify each [community](/usc/42/4003.md?p=a-1) affected of the model or models that the [Administrator](/usc/42/4003.md?p=a-6) plans to use in such process and provide an explanation of why such model or models are appropriate; - (B) provide each [community](/usc/42/4003.md?p=a-1) affected a 30-day period beginning upon notification under [subparagraph (A)](#d-1-A) to consult with the [Administrator](/usc/42/4003.md?p=a-6) regarding the appropriateness, with respect to such [community](/usc/42/4003.md?p=a-1), of the mapping model or models to be used; provided that consultation by a [community](/usc/42/4003.md?p=a-1) pursuant to this subparagraph shall not waive or otherwise affect any right of the [community](/usc/42/4003.md?p=a-1) to appeal any [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) determinations; - (C) upon completion of the first Independent Data Submission, transmit a copy of such Submission to the affected [community](/usc/42/4003.md?p=a-1), provide the affected [community](/usc/42/4003.md?p=a-1) a 30-day period during which the [community](/usc/42/4003.md?p=a-1) may provide data to [Administrator](/usc/42/4003.md?p=a-6)[^1] that can be used to supplement or modify the existing data, and incorporate any data that is consistent with prevailing engineering principles; - (D) work with [States](/usc/42/4121.md?p=a-2), local [communities](/usc/42/4003.md?p=a-1), and property [owners](/usc/42/13641.md?p=4) to identify areas and features described in [subsection (b)(1)(A)(v)](#b-1-A-v); - (E) work to enhance communication and outreach to [States](/usc/42/4121.md?p=a-2), local [communities](/usc/42/4003.md?p=a-1), and property [owners](/usc/42/13641.md?p=4) about the effects— - (i) of any potential changes to [National Flood Insurance Program](/usc/42/4004.md?p=a-4) rate maps that may result from the mapping [program](/usc/42/274l–1.md?p=4) required under this section; and - (ii) that any such changes may have on [flood](/usc/42/4121.md?p=a-1) insurance purchase requirements; - (F) engage with local [communities](/usc/42/4003.md?p=a-1) to enhance communication and outreach to the residents of such [communities](/usc/42/4003.md?p=a-1), including tenants (with regard to contents insurance), on the matters described under [subparagraph (E)](#d-1-E); - (G) not less than 30 days before issuance of any preliminary map, notify the Senators for each [State](/usc/42/4121.md?p=a-2) affected and each Member of the House of [Representatives](/usc/42/3058f.md?p=5) for each congressional district affected by the preliminary map in writing of— - (i) the estimated schedule for— - (I) [community](/usc/42/4003.md?p=a-1) meetings regarding the preliminary map; - (II) publication of notices regarding the preliminary map in local newspapers; and - (III) the commencement of the appeals process regarding the map; and - (ii) the estimated number of homes and businesses that will be affected by changes contained in the preliminary map, including how many structures will be[^2] that were not previously located in an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) will be located within such an area under the preliminary map; and - (H) upon the issuance of any proposed map and any notice of an opportunity to make an appeal relating to the proposed map, notify the Senators for each [State](/usc/42/4121.md?p=a-2) affected and each Member of the House of [Representatives](/usc/42/3058f.md?p=5) for each congressional district affected by the proposed map of any action taken by the [Administrator](/usc/42/4003.md?p=a-6) with respect to the proposed map or an appeal relating to the proposed map. - (2) **Required activities—** The communication and outreach activities required under [paragraph (1)](#d-1) shall include— - (A) notifying property [owners](/usc/42/13641.md?p=4) when their properties become included in, or when they are excluded from, an area covered by the mandatory [flood](/usc/42/4121.md?p=a-1) insurance purchase requirement under [section 4012a of this title](/usc/42/4012a.md); - (B) educating property [owners](/usc/42/13641.md?p=4) regarding the [flood](/usc/42/4121.md?p=a-1) risk and reduction of this risk in their [community](/usc/42/4003.md?p=a-1), including the continued [flood](/usc/42/4121.md?p=a-1) risks to areas that are no longer subject to the [flood](/usc/42/4121.md?p=a-1) insurance mandatory purchase requirement; - (C) educating property [owners](/usc/42/13641.md?p=4) regarding the benefits and costs of maintaining or acquiring [flood](/usc/42/4121.md?p=a-1) insurance, including, where applicable, lower-cost preferred risk policies under the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 ([42 U.S.C. 4011](/usc/42/4011.md) et seq.) for such properties and the contents of such properties; - (D) educating property [owners](/usc/42/13641.md?p=4) about [flood](/usc/42/4121.md?p=a-1) map revisions and the process available to such [owners](/usc/42/13641.md?p=4) to appeal proposed changes in [flood](/usc/42/4121.md?p=a-1) elevations through their [community](/usc/42/4003.md?p=a-1), including by notifying local radio and television stations; and - (E) encouraging property [owners](/usc/42/13641.md?p=4) to maintain or acquire [flood](/usc/42/4121.md?p=a-1) insurance coverage. - (e) **Community remapping request—** Upon the adoption by the [Administrator](/usc/42/4003.md?p=a-6) of any recommendation by the Technical Mapping [Advisory Council](/usc/42/274l–1.md?p=1) for reviewing, updating, or maintaining [National Flood Insurance Program](/usc/42/4004.md?p=a-4) rate maps in accordance with this section, a [community](/usc/42/4003.md?p=a-1) that believes that its [flood](/usc/42/4121.md?p=a-1) insurance rates in effect prior to adoption would be affected by the adoption of such recommendation may submit a request for an update of its rate maps, which may be considered at the [Administrator](/usc/42/4003.md?p=a-6)’s sole discretion. The [Administrator](/usc/42/4003.md?p=a-6) shall establish a protocol for the evaluation of such [community](/usc/42/4003.md?p=a-1) map update requests. - (f) **Authorization of appropriations—** There is authorized to be appropriated to the [Administrator](/usc/42/4003.md?p=a-6) to carry out this section $400,000,000 for each of fiscal years 2013 through 2017. # §4101c. Coordination - (a) **Interagency budget crosscut and coordination report—** - (1) **In general—** The [Secretary](/usc/42/242q–4.md?p=2) of Homeland Security, the [Administrator](/usc/42/4003.md?p=a-6), the [Director](/usc/42/5061.md?p=1) of the [Office](/usc/42/3058f.md?p=1) of Management and Budget, and the heads of each Federal department or agency carrying out activities under sections [4101a](/usc/42/4101a.md) and [4101b](/usc/42/4101b.md) of this title shall work together to ensure that [flood](/usc/42/4121.md?p=a-1) risk determination data and geospatial data are shared among [Federal agencies](/usc/42/4003.md?p=a-2) in order to coordinate the efforts of the Nation to reduce its vulnerability to flooding [hazards](/usc/42/5165f.md?p=a-3). - (2) **Report—** Not later than 30 days after the submission of the budget of the [United States](/usc/42/4121.md?p=a-2) Government by the President to Congress, the [Director](/usc/42/5061.md?p=1) of the [Office](/usc/42/3058f.md?p=1) of Management and Budget, in coordination with the Federal Emergency Management Agency, the [United States](/usc/42/4121.md?p=a-2) Geological Survey, the National Oceanic and Atmospheric Administration, the [Corps](/usc/42/12626.md?p=3) of Engineers, and other [Federal agencies](/usc/42/4003.md?p=a-2), as appropriate, shall submit to the appropriate authorizing and appropriating committees of the Senate and the House of [Representatives](/usc/42/3058f.md?p=5) an interagency budget crosscut and coordination report, certified by the [Secretary](/usc/42/242q–4.md?p=2) or head of each such agency, that— - (A) contains an interagency budget crosscut report that displays relevant sections of the budget proposed for each of the [Federal agencies](/usc/42/4003.md?p=a-2) working on [flood](/usc/42/4121.md?p=a-1) risk determination data and digital elevation models, including any planned interagency or intra-agency transfers; and - (B) describes how the efforts aligned with such sections complement one another. - (b) **Duties of the Administrator—** In carrying out sections [4101a](/usc/42/4101a.md) and [4101b](/usc/42/4101b.md) of this title, the [Administrator](/usc/42/4003.md?p=a-6) shall— - (1) participate, pursuant to [section 216](/usc/42/216.md) of the E–Government Act of 2002 ([44 U.S.C. 3501](/usc/44/3501.md) note), in the establishment of such [standards](/usc/42/1320d.md?p=7) and common protocols as are necessary to assure the interoperability of geospatial data for all users of such information; - (2) coordinate with, seek assistance and cooperation of, and provide a liaison to the Federal Geographic Data Committee pursuant to the [Office](/usc/42/3058f.md?p=1) of Management and Budget Circular A–16 and Executive Order 12906 ([43 U.S.C. 1457](/usc/43/1457.md) note; relating to the National Spatial Data Infrastructure) for the implementation of and compliance with such [standards](/usc/42/1320d.md?p=7); - (3) integrate with, leverage, and coordinate funding of, to the maximum extent practicable, the current [flood](/usc/42/4121.md?p=a-1) mapping activities of each [unit](/usc/42/1395w–114b.md?p=g-2) of [State](/usc/42/4121.md?p=a-2) and [local government](/usc/42/8401a.md); - (4) integrate with, leverage, and coordinate, to the maximum extent practicable, the current geospatial activities of other [Federal agencies](/usc/42/4003.md?p=a-2) and [units](/usc/42/1395w–114b.md?p=g-2) of [State](/usc/42/4121.md?p=a-2) and [local government](/usc/42/8401a.md); and - (5) develop a funding strategy to leverage and coordinate budgets and expenditures, and to maintain or establish joint funding and other [agreement](/usc/42/1320b–8.md?p=a-3-A) mechanisms with other [Federal agencies](/usc/42/4003.md?p=a-2) and [units](/usc/42/1395w–114b.md?p=g-2) of [State](/usc/42/4121.md?p=a-2) and [local government](/usc/42/8401a.md) to share in the collection and utilization of geospatial data among all governmental users. # §4101d. Flood insurance rate map certification The [Administrator](/usc/42/4003.md?p=a-6) shall implement a [flood](/usc/42/4121.md?p=a-1) mapping [program](/usc/42/274l–1.md?p=4) for the [National Flood Insurance Program](/usc/42/4004.md?p=a-4), only after review by the Technical Mapping [Advisory Council](/usc/42/274l–1.md?p=1), that, when applied, results in technically credible [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) data in all areas where [Flood](/usc/42/4121.md?p=a-1) Insurance Rate Maps are prepared or updated, shall certify in writing to the Congress when such a [program](/usc/42/274l–1.md?p=4) has been implemented, and shall provide to the Congress the Technical Mapping [Advisory Council](/usc/42/274l–1.md?p=1) review report. # §4101e. Exemption from fees for certain map change requests Notwithstanding any other provision of law, a requester shall be exempt from submitting a review or processing fee for a request for a [flood](/usc/42/4121.md?p=a-1) insurance rate map change based on a habitat restoration [project](/usc/42/11360.md?p=20) that is funded in whole or in part with Federal or [State](/usc/42/4121.md?p=a-2) [funds](/usc/42/12854.md?p=3), including dam [removal](/usc/42/9601.md?p=23), culvert redesign or installation, or the installation of fish passage. # §4102. Criteria for land management and use - (a) **Studies and investigations—** The [Administrator](/usc/42/4003.md?p=a-6) is authorized to carry out studies and investigations, utilizing to the maximum extent practicable the existing [facilities](/usc/42/11049.md?p=4) and services of other Federal departments or agencies, and [State](/usc/42/4121.md?p=a-2) and local governmental agencies, and any other organizations, with respect to the adequacy of [State](/usc/42/4121.md?p=a-2) and local measures in [flood](/usc/42/4121.md?p=a-1)-prone areas as to land management and use, [flood](/usc/42/4121.md?p=a-1) control, [flood](/usc/42/4121.md?p=a-1) zoning, and [flood](/usc/42/4121.md?p=a-1) damage prevention, and may enter into any contracts, [agreements](/usc/42/1320b–8.md?p=a-3-A), or other appropriate arrangements to carry out such authority. - (b) **Extent of studies and investigations—** Such studies and investigations shall include, but not be limited to, laws, regulations, or ordinances relating to encroachments and obstructions on stream channels and floodways, the orderly development and use of [flood](/usc/42/4121.md?p=a-1) plains of rivers or streams, floodway encroachment lines, and [flood](/usc/42/4121.md?p=a-1) plain zoning, [building](/usc/42/6881.md?p=i-3) codes, [building](/usc/42/6881.md?p=i-3) permits, and subdivision or other [building](/usc/42/6881.md?p=i-3) restrictions. - (c) **Development of comprehensive criteria designed to encourage adoption of adequate State and local measures—** On the basis of such studies and investigations, and such other information as he deems necessary, the [Administrator](/usc/42/4003.md?p=a-6) shall from time to time develop comprehensive criteria designed to encourage, where necessary, the adoption of adequate [State](/usc/42/4121.md?p=a-2) and local measures which, to the maximum extent feasible, will— - (1) constrict the development of land which is exposed to [flood](/usc/42/4121.md?p=a-1) damage where appropriate, - (2) guide the development of proposed [construction](/usc/42/7479.md?p=2-C) away from locations which are threatened by [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3), - (3) assist in reducing damage caused by [floods](/usc/42/4121.md?p=a-1), and - (4) otherwise improve the long-range land management and use of [flood](/usc/42/4121.md?p=a-1)-prone areas, and he shall work closely with and provide any necessary technical assistance to [State](/usc/42/4121.md?p=a-2), interstate, and local governmental agencies, to encourage the application of such criteria and the adoption and enforcement of such measures. - (d) **Flood mitigation methods for buildings—** The [Administrator](/usc/42/4003.md?p=a-6) shall establish guidelines for property [owners](/usc/42/13641.md?p=4) that— - (1) provide alternative methods of mitigation, other than [building](/usc/42/6881.md?p=i-3) elevation, to reduce [flood](/usc/42/4121.md?p=a-1) risk to residential [buildings](/usc/42/6881.md?p=i-3) that cannot be elevated due to their structural characteristics, including— - (A) types of [building](/usc/42/6881.md?p=i-3) materials; and - (B) types of floodproofing; and - (2) inform property [owners](/usc/42/13641.md?p=4) about how the implementation of mitigation methods described in [paragraph (1)](#d-1) may affect risk premium rates for [flood](/usc/42/4121.md?p=a-1) insurance coverage under the [National Flood Insurance Program](/usc/42/4004.md?p=a-4). # [§4102a. Repealed. Pub. L. 112–141, div. F, title II, § 100225(c), July 6, 2012, 126 Stat. 941 — repealed] # [§4103. Repealed. Pub. L. 103–325, title V, § 551(a), Sept. 23, 1994, 108 Stat. 2269 — repealed] # §4104. Flood elevation determinations - (a) **Publication or notification of proposed flood elevation determinations—** In establishing projected [flood](/usc/42/4121.md?p=a-1) elevations and designating areas having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) for land use purposes with respect to any [community](/usc/42/4003.md?p=a-1) pursuant to [section 4102 of this title](/usc/42/4102.md), the [Administrator](/usc/42/4003.md?p=a-6) shall first propose such determinations and designations by publication for comment in the Federal Register, by direct notification to the [chief executive officer](/usc/42/12511.md?p=9) of the [community](/usc/42/4003.md?p=a-1), and by publication in a prominent local newspaper. - (b) **Publication of flood elevation determinations; appeal of owner or lessee to local government; scientific or technical knowledge or information as basis for appeal; modification of proposed determinations—** The [Administrator](/usc/42/4003.md?p=a-6) shall publish notification of [flood](/usc/42/4121.md?p=a-1) elevation determinations and designations of areas having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) in a prominent local newspaper at least twice during the ten-day period following notification to the [local government](/usc/42/8401a.md). During the ninety-day period following the second publication, any [owner](/usc/42/13641.md?p=4) or lessee of real property within the [community](/usc/42/4003.md?p=a-1) who believes his property rights to be adversely affected by the [Administrator](/usc/42/4003.md?p=a-6)’s proposed determination may appeal such determination to the [local government](/usc/42/8401a.md). The sole grounds for appeal shall be the possession of knowledge or information indicating that (1) the elevations being proposed by the [Administrator](/usc/42/4003.md?p=a-6) with respect to an identified area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) are scientifically or technically incorrect, or (2) the designation of an identified special [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) area is scientifically or technically incorrect. - (c) **Appeals by private persons; submission of negativing or contradicting data to community; opinion of community respecting justification for appeal by community; transmission of individual appeals to Administrator; filing of community action with Administrator—** Appeals by private [persons](/usc/42/4121.md?p=a-5) shall be made to the [chief executive officer](/usc/42/12511.md?p=9) of the [community](/usc/42/4003.md?p=a-1), or to such agency as he shall publicly designate, and shall set forth the data that tend to negate or contradict the [Administrator](/usc/42/4003.md?p=a-6)’s finding in such form as the [chief executive officer](/usc/42/12511.md?p=9) may specify. The [community](/usc/42/4003.md?p=a-1) shall review and consolidate all such appeals and issue a written opinion stating whether the evidence presented is sufficient to justify an appeal on behalf of such [persons](/usc/42/4121.md?p=a-5) by the [community](/usc/42/4003.md?p=a-1) in its own name. Whether or not the [community](/usc/42/4003.md?p=a-1) decides to appeal the [Administrator](/usc/42/4003.md?p=a-6)’s determination, copies of individual appeals shall be sent to the [Administrator](/usc/42/4003.md?p=a-6) as they are received by the [community](/usc/42/4003.md?p=a-1), and the [community](/usc/42/4003.md?p=a-1)’s appeal or a copy of its decision not to appeal shall be filed with the [Administrator](/usc/42/4003.md?p=a-6) not later than ninety days after the date of the second newspaper publication of the [Administrator](/usc/42/4003.md?p=a-6)’s notification. - (d) **Administrative review of appeals by private persons; modification of proposed determinations; decision of Administrator: form and distribution—** In the event the [Administrator](/usc/42/4003.md?p=a-6) does not receive an appeal from the [community](/usc/42/4003.md?p=a-1) within the ninety days provided, he shall consolidate and review on their own merits, in accordance with the procedures set forth in [subsection (e)](#e), the appeals filed within the [community](/usc/42/4003.md?p=a-1) by private [persons](/usc/42/4121.md?p=a-5) and shall make such [modifications](/usc/42/7501.md?p=4) of his proposed determinations as may be appropriate, taking into account the written opinion, if any, issued by the [community](/usc/42/4003.md?p=a-1) in not supporting such appeals. The [Administrator](/usc/42/4003.md?p=a-6)’s decision shall be in written form, and copies thereof shall be sent both to the [chief executive officer](/usc/42/12511.md?p=9) of the [community](/usc/42/4003.md?p=a-1) and to each individual appellant. - (e) **Administrative review of appeals by community; agencies for resolution of conflicting data; availability of flood insurance pending such resolution; time for determination of Administrator; community adoption of local land use and control measures within reasonable time of final determination; public inspection and admissibility in evidence of reports and other administrative information—** Upon appeal by any [community](/usc/42/4003.md?p=a-1), as provided by this section, the [Administrator](/usc/42/4003.md?p=a-6) shall review and take fully into account any technical or scientific data submitted by the [community](/usc/42/4003.md?p=a-1) that tend to negate or contradict the information upon which his proposed determination is based. The [Administrator](/usc/42/4003.md?p=a-6) shall resolve such appeal by consultation with officials of the [local government](/usc/42/8401a.md) involved, by administrative hearing, or by submission of the conflicting data to the Scientific Resolution [Panel](/usc/42/10362.md?p=16) provided for in [section 4104–1 of this title](/usc/42/4104–1.md). Until the conflict in data is resolved, and the [Administrator](/usc/42/4003.md?p=a-6) makes a final determination on the basis of his findings in the Federal Register, and so notifies the governing body of the [community](/usc/42/4003.md?p=a-1), [flood](/usc/42/4121.md?p=a-1) insurance previously available within the [community](/usc/42/4003.md?p=a-1) shall continue to be available, and no [person](/usc/42/4121.md?p=a-5) shall be denied the right to purchase such insurance at chargeable rates. The [Administrator](/usc/42/4003.md?p=a-6) shall make his determination within a reasonable time. The [community](/usc/42/4003.md?p=a-1) shall be given a reasonable time after the [Administrator](/usc/42/4003.md?p=a-6)’s final determination in which to adopt local land use and control measures consistent with the [Administrator](/usc/42/4003.md?p=a-6)’s determination. The reports and other information used by the [Administrator](/usc/42/4003.md?p=a-6) in making his final determination shall be made available for public [inspection](/usc/42/4851b.md?p=12) and shall be admissible in a court of law in the event the [community](/usc/42/4003.md?p=a-1) seeks judicial review as provided by this section. - (f) **Reimbursement of certain expenses—** When, incident to any appeal under subsection [(b)](#b) or [(c)](#c) of this section, the [owner](/usc/42/13641.md?p=4) or lessee of real property or the [community](/usc/42/4003.md?p=a-1), as the case may be, or, in the case of an appeal that is resolved by submission of conflicting data to the Scientific Resolution [Panel](/usc/42/10362.md?p=16) provided for in [section 4104–1 of this title](/usc/42/4104–1.md), the [community](/usc/42/4003.md?p=a-1), incurs expense in connection with the services of surveyors, engineers, or similar services, but not including legal services, in the effecting of an appeal based on a scientific or technical error on the part of the Federal Emergency Management Agency, which is successful in whole or part, the [Administrator](/usc/42/4003.md?p=a-6) shall reimburse such individual or [community](/usc/42/4003.md?p=a-1) to an extent measured by the ratio of the successful portion of the appeal as compared to the entire appeal and applying such ratio to the reasonable value of all such services, but no reimbursement shall be made by the [Administrator](/usc/42/4003.md?p=a-6) in respect to any fee or expense payment, the payment of which was agreed to be contingent upon the result of the appeal. The [Administrator](/usc/42/4003.md?p=a-6) may use such amounts from the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) established under [section 4017 of this title](/usc/42/4017.md) as may be necessary to carry out this subsection. The [Administrator](/usc/42/4003.md?p=a-6) shall promulgate regulations to carry out this subsection. - (g) **Judicial review of final administrative determinations; venue; time for appeal; scope of review; good cause for stay of final determinations—** Except as provided in [section 4104–1 of this title](/usc/42/4104–1.md), any appellant aggrieved by any final determination of the [Administrator](/usc/42/4003.md?p=a-6) upon administrative appeal, as provided by this section, may appeal such determination to the [United States](/usc/42/4121.md?p=a-2) district court for the district within which the [community](/usc/42/4003.md?p=a-1) is located not more than sixty days after receipt of notice of such determination. The scope of review by the court shall be as provided by [chapter 7](/usc/5/chptI-ch7.md) of title 5. During the pendency of any such litigation, all final determinations of the [Administrator](/usc/42/4003.md?p=a-6) shall be effective for the purposes of this chapter unless stayed by the court for good [cause](/usc/42/9908.md?p=c-2) shown. # §4104–1. Scientific Resolution Panel - (a) **Availability—** - (1) **In general—** Pursuant to the authority provided under [section 4104(e) of this title](/usc/42/4104.md?p=e), the [Administrator](/usc/42/4003.md?p=a-6) shall make available an independent review [panel](/usc/42/10362.md?p=16), to be known as the Scientific Resolution [Panel](/usc/42/10362.md?p=16), to any [community](/usc/42/4003.md?p=a-1)— - (A) that has— - (i) filed a timely map appeal in accordance with [section 4104 of this title](/usc/42/4104.md); - (ii) completed 60 days of consultation with the Federal Emergency Management Agency on the appeal; and - (iii) not allowed more than 120 days, or such longer period as may be provided by the [Administrator](/usc/42/4003.md?p=a-6) by waiver, to pass since the end of the appeal period; or - (B) that has received an unsatisfactory ruling under the map revision process established pursuant to [section 4101(f) of this title](/usc/42/4101.md?p=f). - (2) **Appeals by owners and lessees—** If a [community](/usc/42/4003.md?p=a-1) and an [owner](/usc/42/13641.md?p=4) or lessee of real property within the [community](/usc/42/4003.md?p=a-1) appeal a proposed determination of a [flood](/usc/42/4121.md?p=a-1) elevation under [section 4104(b) of this title](/usc/42/4104.md?p=b), upon the request of the [community](/usc/42/4003.md?p=a-1)— - (A) the [owner](/usc/42/13641.md?p=4) or lessee shall submit scientific and technical data relating to the appeals to the Scientific Resolution [Panel](/usc/42/10362.md?p=16); and - (B) the Scientific Resolution [Panel](/usc/42/10362.md?p=16) shall make a determination with respect to the appeals in accordance with [subsection (c)](#c). - (3) **Definition—** For purposes of [paragraph (1)(B)](#a-1-B), an “unsatisfactory ruling” means that a [community](/usc/42/4003.md?p=a-1)— - (A) received a revised [Flood](/usc/42/4121.md?p=a-1) Insurance Rate Map from the Federal Emergency Management Agency, via a Letter of Final Determination, after September 30, 2008, and prior to July 6, 2012; - (B) has subsequently applied for a Letter of Map Revision or Physical Map Revision with the Federal Emergency Management Agency; and - (C) has received an unfavorable ruling on their request for a map revision. - (b) **Membership—** The Scientific Resolution [Panel](/usc/42/10362.md?p=16) made available under [subsection (a)](#a) shall consist of 5 members with expertise that relates to the creation and study of [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) maps and [flood](/usc/42/4121.md?p=a-1) insurance. The Scientific Resolution [Panel](/usc/42/10362.md?p=16) may include [representatives](/usc/42/3058f.md?p=5) from [Federal agencies](/usc/42/4003.md?p=a-2) not involved in the mapping study in question and from other impartial experts. [Employees](/usc/42/1320a–7h.md?p=e-7) of the Federal Emergency Management Agency may not serve on the Scientific Resolution [Panel](/usc/42/10362.md?p=16). - (c) **Determination—** - (1) **In general—** Following deliberations, and not later than 90 days after its formation, the Scientific Resolution [Panel](/usc/42/10362.md?p=16) shall issue a determination of resolution of the dispute. Such determination shall set forth recommendations for the base [flood](/usc/42/4121.md?p=a-1) elevation determination or the designation of an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) that shall be reflected in the [Flood](/usc/42/4121.md?p=a-1) Insurance Rate Maps. - (2) **Basis—** The determination of the Scientific Resolution [Panel](/usc/42/10362.md?p=16) shall be based on— - (A) data previously provided to the [Administrator](/usc/42/4003.md?p=a-6) by the [community](/usc/42/4003.md?p=a-1), and, in the case of a dispute submitted under [subsection (a)(2)](#a-2), an [owner](/usc/42/13641.md?p=4) or lessee of real property in the [community](/usc/42/4003.md?p=a-1); and - (B) data provided by the [Administrator](/usc/42/4003.md?p=a-6). - (3) **No alternative determinations permissible—** The Scientific Resolution [Panel](/usc/42/10362.md?p=16)— - (A) shall provide a determination of resolution of a dispute that— - (i) is either in favor of the [Administrator](/usc/42/4003.md?p=a-6) or in favor of the [community](/usc/42/4003.md?p=a-1) on each distinct element of the dispute; or - (ii) in the case of a dispute submitted under [subsection (a)(2)](#a-2), is in favor of the [Administrator](/usc/42/4003.md?p=a-6), in favor of the [community](/usc/42/4003.md?p=a-1), or in favor of the [owner](/usc/42/13641.md?p=4) or lessee of real property in the [community](/usc/42/4003.md?p=a-1) on each distinct element of the dispute; and - (B) may not offer as a resolution any other alternative determination. - (4) **Effect of determination—** - (A) **Binding—** The recommendations of the Scientific Resolution [Panel](/usc/42/10362.md?p=16) shall be binding on all appellants and not subject to further judicial review unless the [Administrator](/usc/42/4003.md?p=a-6) determines that implementing the determination of the [panel](/usc/42/10362.md?p=16) would— - (i) pose a significant threat due to failure to identify a substantial risk of special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3); or - (ii) violate applicable law. - (B) **Written justification not to enforce—** If the [Administrator](/usc/42/4003.md?p=a-6) elects not to implement the determination of the Scientific Resolution [Panel](/usc/42/10362.md?p=16) pursuant to [subparagraph (A)](#c-4-A), then not later than 60 days after the issuance of the determination, the [Administrator](/usc/42/4003.md?p=a-6) shall issue a written justification explaining such election. - (C) **Appeal of determination not to enforce—** If the [Administrator](/usc/42/4003.md?p=a-6) elects not to implement the determination of the Scientific Resolution [Panel](/usc/42/10362.md?p=16) pursuant to [subparagraph (A)](#c-4-A), the [community](/usc/42/4003.md?p=a-1) may appeal the determination of the [Administrator](/usc/42/4003.md?p=a-6) as provided for under [section 4104(g) of this title](/usc/42/4104.md?p=g). - (d) **Maps used for insurance and mandatory purchase requirements—** With respect to any [community](/usc/42/4003.md?p=a-1) that has a dispute that is being considered by the Scientific Resolution [Panel](/usc/42/10362.md?p=16) formed pursuant to this subsection, the Federal Emergency Management Agency shall ensure that for each such [community](/usc/42/4003.md?p=a-1) that— - (1) the [Flood](/usc/42/4121.md?p=a-1) Insurance Rate Map described in the most recently issued Letter of Final Determination shall be in force and effect with respect to such [community](/usc/42/4003.md?p=a-1); and - (2) [flood](/usc/42/4121.md?p=a-1) insurance shall continue to be made available to the property [owners](/usc/42/13641.md?p=4) and residents of the participating [community](/usc/42/4003.md?p=a-1). # §4104a. Notice requirements - (a) **Notification of special flood hazards—** - (1) **Regulated lending institutions—** Each [Federal entity for lending regulation](/usc/42/4003.md?p=a-5) (after consultation and coordination with the [Financial Institutions](/usc/42/666.md?p=a-17-D-i) Examination [Council](/usc/42/300f.md?p=9)) shall by regulation require [regulated lending institutions](/usc/42/4003.md?p=a-10), as a condition of making, increasing, extending, or renewing any loan secured by [improved real estate](/usc/42/4003.md?p=a-8) or a mobile home that the [regulated lending institution](/usc/42/4003.md?p=a-10) determines is located or is to be located in an area that has been identified by the [Administrator](/usc/42/4003.md?p=a-6) under this chapter or the [Flood](/usc/42/4121.md?p=a-1) [Disaster](/usc/42/5204.md?p=2) Protection Act of 1973 as an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3), to notify the purchaser or lessee (or obtain satisfactory assurances that the seller or lessor has notified the purchaser or lessee) and the [servicer](/usc/42/4003.md?p=a-11) of the loan of such special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3), in writing, a reasonable period in advance of the signing of the purchase [agreement](/usc/42/1320b–8.md?p=a-3-A), lease, or other documents involved in the transaction. The regulations shall also require that the [regulated lending institution](/usc/42/4003.md?p=a-10) retain a record of the receipt of the notices by the purchaser or lessee and the [servicer](/usc/42/4003.md?p=a-11). - (2) **Federal agency lenders—** Each [Federal agency lender](/usc/42/4003.md?p=a-7) shall by regulation require notification in the manner provided under [paragraph (1)](#a-1) with respect to any loan that is made by the [Federal agency lender](/usc/42/4003.md?p=a-7) and secured by [improved real estate](/usc/42/4003.md?p=a-8) or a mobile home located or to be located in an area that has been identified by the [Administrator](/usc/42/4003.md?p=a-6) under this chapter or the [Flood](/usc/42/4121.md?p=a-1) [Disaster](/usc/42/5204.md?p=2) Protection Act of 1973 as an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3). Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under [paragraph (1)](#a-1). - (3) **Contents of notice—** Written notification required under this subsection shall include— - (A) a warning, in a form to be established by the [Administrator](/usc/42/4003.md?p=a-6), stating that the [building](/usc/42/6881.md?p=i-3) on the [improved real estate](/usc/42/4003.md?p=a-8) securing the loan is located, or the mobile home securing the loan is or is to be located, in an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3); - (B) a description of the [flood](/usc/42/4121.md?p=a-1) insurance purchase requirements under section 102(b) of the [Flood](/usc/42/4121.md?p=a-1) [Disaster](/usc/42/5204.md?p=2) Protection Act of 1973 [[42 U.S.C. 4012a(b)](/usc/42/4012a.md?p=b)]; - (C) a statement that [flood](/usc/42/4121.md?p=a-1) insurance coverage may be purchased under the [national flood insurance program](/usc/42/4004.md?p=a-4) and is also available from private insurers, as required under section 102(b)(6) of the [Flood](/usc/42/4121.md?p=a-1) [Disaster](/usc/42/5204.md?p=2) Protection Act of 1973 ([42 U.S.C. 4012a(b)(6)](/usc/42/4012a.md?p=b-6)); and - (D) any other information that the [Administrator](/usc/42/4003.md?p=a-6) considers necessary to carry out the purposes of the [national flood insurance program](/usc/42/4004.md?p=a-4). - (b) **Notification of change of servicer—** - (1) **Lending institutions—** Each [Federal entity for lending regulation](/usc/42/4003.md?p=a-5) (after consultation and coordination with the [Financial Institutions](/usc/42/666.md?p=a-17-D-i) Examination [Council](/usc/42/300f.md?p=9)) shall by regulation require [regulated lending institutions](/usc/42/4003.md?p=a-10), in connection with the making, increasing, extending, renewing, selling, or transferring any loan described in [subsection (a)(1)](#a-1), to notify the [Administrator](/usc/42/4003.md?p=a-6) (or the designee of the [Administrator](/usc/42/4003.md?p=a-6)) in writing during the term of the loan of the [servicer](/usc/42/4003.md?p=a-11) of the loan. Such institutions shall also notify the [Administrator](/usc/42/4003.md?p=a-6) (or such designee) of any change in the [servicer](/usc/42/4003.md?p=a-11) of the loan, not later than 60 days after the effective date of such change. The regulations under this subsection shall provide that upon any change in the servicing of a loan, the duty to provide notification under this subsection shall transfer to the transferee [servicer](/usc/42/4003.md?p=a-11) of the loan. - (2) **Federal agency lenders—** Each [Federal agency lender](/usc/42/4003.md?p=a-7) shall by regulation provide for notification in the manner provided under [paragraph (1)](#b-1) with respect to any loan described in [subsection (a)(1)](#a-1) that is made by the [Federal agency lender](/usc/42/4003.md?p=a-7). Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under paragraph (1) of this subsection. - (c) **Notification of expiration of insurance—** The [Administrator](/usc/42/4003.md?p=a-6) (or the designee of the [Administrator](/usc/42/4003.md?p=a-6)) shall, not less than 45 days before the expiration of any contract for [flood](/usc/42/4121.md?p=a-1) insurance under this chapter, issue notice of such expiration by first class mail to the [owner](/usc/42/13641.md?p=4) of the property covered by the contract, the [servicer](/usc/42/4003.md?p=a-11) of any loan secured by the property covered by the contract, and (if known to the [Administrator](/usc/42/4003.md?p=a-6)) the [owner](/usc/42/13641.md?p=4) of the loan. # §4104b. Standard hazard determination forms - (a) **Development—** The [Administrator](/usc/42/4003.md?p=a-6), in consultation with [representatives](/usc/42/3058f.md?p=5) of the mortgage and lending industry, the Federal entities for lending regulation, the [Federal agency lenders](/usc/42/4003.md?p=a-7), and any other appropriate individuals, shall develop a [standard](/usc/42/1320d.md?p=7) form for determining, in the case of a loan secured by [improved real estate](/usc/42/4003.md?p=a-8) or a mobile home, whether the [building](/usc/42/6881.md?p=i-3) or mobile home is located in an area identified by the [Administrator](/usc/42/4003.md?p=a-6) as an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) and in which [flood](/usc/42/4121.md?p=a-1) insurance under this chapter is available. The form shall be established by regulations issued not later than 270 days after September 23, 1994. - (b) **Design and contents—** - (1) **Purpose—** The form under [subsection (a)](#a) shall be designed to facilitate compliance with the [flood](/usc/42/4121.md?p=a-1) insurance purchase requirements of this chapter. - (2) **Contents—** The form shall require identification of the type of [flood](/usc/42/4121.md?p=a-1)-risk zone in which the [building](/usc/42/6881.md?p=i-3) or mobile home is located, the complete map and [panel](/usc/42/10362.md?p=16) numbers for the [improved real estate](/usc/42/4003.md?p=a-8) or property on which the mobile home is located, the [community](/usc/42/4003.md?p=a-1) identification number and [community](/usc/42/4003.md?p=a-1) participation status (for purposes of the [national flood insurance program](/usc/42/4004.md?p=a-4)) of the [community](/usc/42/4003.md?p=a-1) in which the [improved real estate](/usc/42/4003.md?p=a-8) or such property is located, and the date of the map used for the determination, with respect to [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) information on file with the [Administrator](/usc/42/4003.md?p=a-6). If the [building](/usc/42/6881.md?p=i-3) or mobile home is not located in an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) the form shall require a statement to such effect and shall indicate the complete map and [panel](/usc/42/10362.md?p=16) numbers of the [improved real estate](/usc/42/4003.md?p=a-8) or property on which the mobile home is located. If the complete map and [panel](/usc/42/10362.md?p=16) numbers are not available because the [building](/usc/42/6881.md?p=i-3) or mobile home is not located in a [community](/usc/42/4003.md?p=a-1) that is participating in the [national flood insurance program](/usc/42/4004.md?p=a-4) or because no map exists for the relevant area, the form shall require a statement to such effect. The form shall provide for inclusion or attachment of any relevant documents indicating revisions or amendments to maps. - (c) **Required use—** The Federal entities for lending regulation shall by regulation require the use of the form under this section by [regulated lending institutions](/usc/42/4003.md?p=a-10). Each [Federal agency lender](/usc/42/4003.md?p=a-7) shall by regulation provide for the use of the form with respect to any loan made by such [Federal agency lender](/usc/42/4003.md?p=a-7). The Federal National Mortgage Association and the Federal Home Loan Mortgage [Corporation](/usc/42/2296b–7.md?p=1) and the Government National Mortgage Association shall require the use of the form with respect to any loan purchased by such entities. A [lender](/usc/42/4003.md?p=a-9) or other [person](/usc/42/4121.md?p=a-5) may comply with the requirement under this subsection by using the form in a printed, computerized, or electronic manner. - (d) **Guarantees regarding information—** In providing information regarding special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) on the form developed under this section, any [lender](/usc/42/4003.md?p=a-9) (or other [person](/usc/42/4121.md?p=a-5) required to use the form) who makes, increases, extends, or renews a loan secured by [improved real estate](/usc/42/4003.md?p=a-8) or a mobile home may provide for the acquisition or determination of such information to be made by a [person](/usc/42/4121.md?p=a-5) other than such [lender](/usc/42/4003.md?p=a-9) (or other [person](/usc/42/4121.md?p=a-5)), only to the extent such [person](/usc/42/4121.md?p=a-5) guarantees the accuracy of the information. - (e) **Reliance on previous determination—** Any [person](/usc/42/4121.md?p=a-5) increasing, extending, renewing, or purchasing a loan secured by [improved real estate](/usc/42/4003.md?p=a-8) or a mobile home may rely on a previous determination of whether the [building](/usc/42/6881.md?p=i-3) or mobile home is located in an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) (and shall not be liable for any error in such previous determination), if the previous determination was made not more than 7 years before the date of the transaction and the basis for the previous determination has been set forth on a form under this section, unless— - (1) map revisions or updates pursuant to [section 4101(f) of this title](/usc/42/4101.md?p=f) after such previous determination have resulted in the [building](/usc/42/6881.md?p=i-3) or mobile home being located in an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3); or - (2) the [person](/usc/42/4121.md?p=a-5) contacts the [Administrator](/usc/42/4003.md?p=a-6) to determine when the most recent map revisions or updates affecting such property occurred and such revisions and updates have occurred after such previous determination. - (f) **Effective date—** The regulations under this section requiring use of the form established pursuant to this section shall be issued together with the regulations required under [subsection (a)](#a) and shall take effect upon the expiration of the 180-day period beginning on such issuance. # §4104c. Mitigation assistance - (a) **Authority—** The [Administrator](/usc/42/4003.md?p=a-6) shall carry out a [program](/usc/42/274l–1.md?p=4) to provide [financial assistance](/usc/42/4003.md?p=a-3) to [States](/usc/42/4121.md?p=a-2) and [communities](#h-1), using amounts made available from the National [Flood](/usc/42/4121.md?p=a-1) Mitigation [Fund](/usc/42/12854.md?p=3) under [section 4104d of this title](/usc/42/4104d.md), for planning and carrying out activities designed to reduce the risk of [flood](/usc/42/4121.md?p=a-1) damage to structures covered under contracts for [flood](/usc/42/4121.md?p=a-1) insurance under this chapter. Such [financial assistance](/usc/42/4003.md?p=a-3) shall be made available— - (1) to [States](/usc/42/4121.md?p=a-2) and [communities](#h-1) in the form of grants under this section for carrying out mitigation activities; - (2) to [States](/usc/42/4121.md?p=a-2) and [communities](#h-1) in the form of grants under this section for carrying out mitigation activities that reduce [flood](/usc/42/4121.md?p=a-1) damage to [severe repetitive loss structures](#h-3); and - (3) to property [owners](/usc/42/13641.md?p=4) in the form of direct grants under this section for carrying out mitigation activities that reduce [flood](/usc/42/4121.md?p=a-1) damage to individual structures for which 2 or more [claim](/usc/42/1320a–7a.md?p=i-2) payments for losses have been made under [flood](/usc/42/4121.md?p=a-1) insurance coverage under this chapter if the [Administrator](/usc/42/4003.md?p=a-6), after consultation with the [State](/usc/42/4121.md?p=a-2) and [community](#h-1), determines that neither the [State](/usc/42/4121.md?p=a-2) nor [community](#h-1) in which such a structure is located has the capacity to manage such grants. - (b) **Eligibility for mitigation assistance—** To be eligible to receive [financial assistance](/usc/42/4003.md?p=a-3) under this section for mitigation activities, a [State](/usc/42/4121.md?p=a-2) or [community](#h-1) shall develop, and have approved by the [Administrator](/usc/42/4003.md?p=a-6), a [flood](/usc/42/4121.md?p=a-1) risk mitigation plan (in this section referred to as a “mitigation plan”), that describes the mitigation activities to be carried out with assistance provided under this section, is consistent with the criteria established by the [Administrator](/usc/42/4003.md?p=a-6) under [section 4102 of this title](/usc/42/4102.md), provides for reduction of [flood](/usc/42/4121.md?p=a-1) losses to structures for which contracts for [flood](/usc/42/4121.md?p=a-1) insurance are available under this chapter, and may be included in a multihazard mitigation plan. The mitigation plan shall be consistent with a comprehensive strategy for mitigation activities for the area affected by the mitigation plan, that has been adopted by the [State](/usc/42/4121.md?p=a-2) or [community](#h-1) following a public hearing. - (c) **Eligible mitigation activities—** - (1) **Requirement of consistency with approved mitigation plan—** Amounts provided under this section may be used only for mitigation activities that are consistent with mitigation plans that are approved by the [Administrator](/usc/42/4003.md?p=a-6) and identified under [paragraph (4)](#c-4). The [Administrator](/usc/42/4003.md?p=a-6) shall provide assistance under this section to the extent amounts are available in the National [Flood](/usc/42/4121.md?p=a-1) Mitigation [Fund](/usc/42/12854.md?p=3) pursuant to appropriation Acts, subject only to the absence of approvable mitigation plans. - (2) **Requirements of technical feasibility, cost effectiveness, and interest of National Flood Insurance Fund—** - (A) **In general—** The [Administrator](/usc/42/4003.md?p=a-6) may approve only mitigation activities that the [Administrator](/usc/42/4003.md?p=a-6) determines— - (i) are technically feasible and [cost-effective](/usc/42/1396e.md?p=e-2); or - (ii) will eliminate future payments from the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) for [severe repetitive loss structures](#h-3) through an acquisition or relocation activity. - (B) **Considerations—** In making a determination under [subparagraph (A)](#c-2-A), the [Administrator](/usc/42/4003.md?p=a-6) shall take into consideration recognized ancillary benefits. - (3) **Eligible activities—** Eligible activities under a mitigation plan may include— - (A) demolition or relocation of any structure located on land that is along the shore of a lake or other body of water and is certified by an appropriate [State](/usc/42/4121.md?p=a-2) or local land use authority to be subject to imminent collapse or subsidence as a result of erosion or flooding; - (B) elevation, relocation, demolition, or floodproofing of structures (including public structures) located in areas having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) or other areas of [flood](/usc/42/4121.md?p=a-1) risk; - (C) acquisition by [States](/usc/42/4121.md?p=a-2) and [communities](#h-1) of properties (including public properties) located in areas having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) or other areas of [flood](/usc/42/4121.md?p=a-1) risk and properties substantially damaged by [flood](/usc/42/4121.md?p=a-1), for public use, as the [Administrator](/usc/42/4003.md?p=a-6) determines is consistent with sound land management and use in such area; - (D) elevation, relocation, or floodproofing of utilities (including equipment that serves structures); - (E) minor physical mitigation efforts that do not duplicate the [flood](/usc/42/4121.md?p=a-1) [prevention activities](/usc/42/300x–34.md?p=3) of other [Federal agencies](/usc/42/4003.md?p=a-2) and that lessen the frequency or severity of flooding and decrease predicted [flood](/usc/42/4121.md?p=a-1) [damages](/usc/42/9601.md?p=6), which shall not include major [flood](/usc/42/4121.md?p=a-1) control [projects](/usc/42/11360.md?p=20) such as dikes, levees, seawalls, groins, and jetties unless the [Administrator](/usc/42/4003.md?p=a-6) specifically determines in approving a mitigation plan that such activities are the most [cost-effective](/usc/42/1396e.md?p=e-2) mitigation activities for the National [Flood](/usc/42/4121.md?p=a-1) Mitigation [Fund](/usc/42/12854.md?p=3); - (F) the development or update of mitigation plans by a [State](/usc/42/4121.md?p=a-2) or [community](#h-1) which meet the planning criteria established by the [Administrator](/usc/42/4003.md?p=a-6), except that the amount from grants under this section that may be used under this subparagraph may not exceed $50,000 for any mitigation plan of a [State](/usc/42/4121.md?p=a-2) or $25,000 for any mitigation plan of a [community](#h-1); - (G) the provision of technical assistance by [States](/usc/42/4121.md?p=a-2) to [communities](#h-1) and individuals to conduct eligible mitigation activities; - (H) other activities that the [Administrator](/usc/42/4003.md?p=a-6) considers appropriate and specifies in regulation; - (I) other mitigation activities not described in [subparagraphs (A) through (G)](#c-3-A..c-3-G) or the regulations issued under [subparagraph (H)](#c-3-H), that are described in the mitigation plan of a [State](/usc/42/4121.md?p=a-2) or [community](#h-1); and - (J) without regard to the requirements under paragraphs [(1)](#d-1) and [(2)](#d-2) of subsection (d), and if the [State](/usc/42/4121.md?p=a-2) applied for and was awarded at least $1,000,000 in grants available under this section in the prior fiscal year, technical assistance to [communities](#h-1) to identify eligible activities, to develop grant applications, and to implement grants awarded under this section, not to exceed $50,000 to any 1 [State](/usc/42/4121.md?p=a-2) in any fiscal year. - (4) **Eligibility of demolition and rebuilding of properties—** The [Administrator](/usc/42/4003.md?p=a-6) shall consider as an eligible activity the demolition and rebuilding of properties to at least base [flood](/usc/42/4121.md?p=a-1) elevation or greater, if required by the [Administrator](/usc/42/4003.md?p=a-6) or if required by any [State](/usc/42/4121.md?p=a-2) regulation or local ordinance, and in accordance with criteria established by the [Administrator](/usc/42/4003.md?p=a-6). - (d) **Matching requirement—** The [Administrator](/usc/42/4003.md?p=a-6) may provide grants for eligible mitigation activities as follows: - (1) **Severe repetitive loss structures—** In the case of mitigation activities to [severe repetitive loss structures](#h-3), in an amount up to— - (A) 100 percent of all eligible costs, if the activities are approved under [subsection (c)(2)(A)(i)](#c-2-A-i); or - (B) the expected savings to the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) from expected avoided [damages](/usc/42/9601.md?p=6) through acquisition or relocation activities, if the activities are approved under [subsection (c)(2)(A)(ii)](#c-2-A-ii). - (2) **Repetitive loss structures—** In the case of mitigation activities to [repetitive loss structures](/usc/42/4121.md?p=a-7), in an amount up to 90 percent of all eligible costs. - (3) **Other mitigation activities—** In the case of all other mitigation activities, in an amount up to 75 percent of all eligible costs. - (e) **Recapture—** - (1) **Noncompliance with plan—** If the [Administrator](/usc/42/4003.md?p=a-6) determines that a [State](/usc/42/4121.md?p=a-2) or [community](#h-1) that has received mitigation assistance under this section has not carried out the mitigation activities as set forth in the mitigation plan, the [Administrator](/usc/42/4003.md?p=a-6) shall recapture any unexpended amounts and deposit the amounts in the National [Flood](/usc/42/4121.md?p=a-1) Mitigation [Fund](/usc/42/12854.md?p=3) under [section 4104d of this title](/usc/42/4104d.md). - (2) **Failure to provide matching funds—** If the [Administrator](/usc/42/4003.md?p=a-6) determines that a [State](/usc/42/4121.md?p=a-2) or [community](#h-1) that has received mitigation assistance under this section has not provided matching [funds](/usc/42/12854.md?p=3) in the amount required under [subsection (d)](#d), the [Administrator](/usc/42/4003.md?p=a-6) shall recapture any unexpended amounts of mitigation assistance exceeding the amount of such matching [funds](/usc/42/12854.md?p=3) actually provided and deposit the amounts in the National [Flood](/usc/42/4121.md?p=a-1) Mitigation [Fund](/usc/42/12854.md?p=3) under [section 4104d of this title](/usc/42/4104d.md). - (f) **Reports—** Not later than 1 year after July 6, 2012, and biennially thereafter, the [Administrator](/usc/42/4003.md?p=a-6) shall submit a report to the Congress describing the status of mitigation activities carried out with assistance provided under this section. - (g) **Failure to make grant award within 5 years—** For any application for a grant under this section for which the [Administrator](/usc/42/4003.md?p=a-6) fails to make a grant award within 5 years of the date of the application, the grant application shall be considered to be denied and any funding amounts allocated for such grant applications shall remain in the National [Flood](/usc/42/4121.md?p=a-1) Mitigation [Fund](/usc/42/12854.md?p=3) under [section 4104d of this title](/usc/42/4104d.md) and shall be made available for grants under this section. - (h) **Definitions—** For purposes of this section, the following definitions shall apply: - (1) **Community—** The term “community” means— - (A) a political subdivision that— - (i) has zoning and building code jurisdiction over a particular area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3); and - (ii) is participating in the [national flood insurance program](/usc/42/4004.md?p=a-4); or - (B) a political subdivision of a [State](/usc/42/4121.md?p=a-2), or other authority, that is designated by political subdivisions, all of which meet the requirements of [subparagraph (A)](#h-1-A), to administer grants for mitigation activities for such political subdivisions. - (2) **Repetitive loss structure—** The term “[repetitive loss structure](/usc/42/4121.md?p=a-7)” has the meaning given such term in [section 4121 of this title](/usc/42/4121.md). - (3) **Severe repetitive loss structure—** The term “severe repetitive loss structure” means a structure that— - (A) is covered under a contract for [flood](/usc/42/4121.md?p=a-1) insurance made available under this chapter; and - (B) has incurred [flood](/usc/42/4121.md?p=a-1)-related damage— - (i) for which 4 or more separate [claims](/usc/42/1320a–7a.md?p=i-2) payments have been made under [flood](/usc/42/4121.md?p=a-1) insurance coverage under this chapter, with the amount of each such [claim](/usc/42/1320a–7a.md?p=i-2) exceeding $5,000, and with the cumulative amount of such [claims](/usc/42/1320a–7a.md?p=i-2) payments exceeding $20,000; or - (ii) for which at least 2 separate [claims](/usc/42/1320a–7a.md?p=i-2) payments have been made under such coverage, with the cumulative amount of such [claims](/usc/42/1320a–7a.md?p=i-2) exceeding the value of the insured structure. # §4104d. National Flood Mitigation Fund - (a) **Establishment and availability—** The [Administrator](/usc/42/4003.md?p=a-6) shall establish in the Treasury of the [United States](/usc/42/4121.md?p=a-2) a [fund](/usc/42/12854.md?p=3) to be known as the National [Flood](/usc/42/4121.md?p=a-1) Mitigation [Fund](/usc/42/12854.md?p=3), which shall be credited with amounts described in [subsection (b)](#b) and shall be available, to the extent provided in appropriation Acts, for providing assistance under [section 4104c of this title](/usc/42/4104c.md). - (b) **Credits—** The National [Flood](/usc/42/4121.md?p=a-1) Mitigation [Fund](/usc/42/12854.md?p=3) shall be credited with— - (1) in each fiscal year, amounts from the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) not to exceed $90,000,000 and to remain available until expended, of which— - (A) not more than $40,000,000 shall be available pursuant to [subsection (a)](#a) of this section for assistance described in [section 4104c(a)(1) of this title](/usc/42/4104c.md?p=a-1); - (B) not more than $40,000,000 shall be available pursuant to [subsection (a)](#a) of this section for assistance described in [section 4104c(a)(2) of this title](/usc/42/4104c.md?p=a-2); and - (C) not more than $10,000,000 shall be available pursuant to [subsection (a)](#a) of this section for assistance described in [section 4104c(a)(3) of this title](/usc/42/4104c.md?p=a-3); - (2) any penalties collected under [section 4012a(f) of this title](/usc/42/4012a.md?p=f); and - (3) any amounts recaptured under [section 4104c(e) of this title](/usc/42/4104c.md?p=e). - (c) **Administrative expenses—** The [Administrator](/usc/42/4003.md?p=a-6) may use not more than 5 percent of amounts made available under [subsection (b)](#b) to cover salaries, expenses, and other administrative costs incurred by the [Administrator](/usc/42/4003.md?p=a-6) to make grants and provide assistance under [section 4104c of this title](/usc/42/4104c.md). - (d) **Prohibition on offsetting collections—** Notwithstanding any other provision of this chapter, amounts made available pursuant to this section shall not be subject to offsetting collections through premium rates for [flood](/usc/42/4121.md?p=a-1) insurance coverage under this chapter. - (e) **Continued availability and reallocation—** Any amounts made available pursuant to subparagraph [(A)](#b-1-A), [(B)](#b-1-B), or [(C)](#b-1-C) of subsection (b)(1) that are not used in any fiscal year shall continue to be available for the purposes specified in the subparagraph of [subsection (b)(1)](#b-1) pursuant to which such amounts were made available, unless the [Administrator](/usc/42/4003.md?p=a-6) determines that reallocation of such unused amounts to meet demonstrated need for other mitigation activities under [section 4104c of this title](/usc/42/4104c.md) is in the best interest of the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3). - (f) **Investment—** If the [Administrator](/usc/42/4003.md?p=a-6) determines that the amounts in the National [Flood](/usc/42/4121.md?p=a-1) Mitigation [Fund](/usc/42/12854.md?p=3) are in excess of amounts needed under [subsection (a)](#a), the [Administrator](/usc/42/4003.md?p=a-6) may invest any excess amounts the [Administrator](/usc/42/4003.md?p=a-6) determines advisable in interest-bearing obligations issued or guaranteed by the [United States](/usc/42/4121.md?p=a-2). - (g) **Report—** The [Administrator](/usc/42/4003.md?p=a-6) shall submit a report to the Congress not later than the expiration of the 1-year period beginning on September 23, 1994, and not less than once during each successive 2-year period thereafter. The report shall describe the status of the [Fund](/usc/42/12854.md?p=3) and any activities carried out with amounts from the [Fund](/usc/42/12854.md?p=3). # §4105. Disaster mitigation requirements; notification to flood-prone areas - (a) **Initial notification—** Not later than six months following December 31, 1973, the [Administrator](/usc/42/4003.md?p=a-6) shall publish information in accordance with [section 4101(1) of this title](/usc/42/4101.md), and shall notify the [chief executive officer](/usc/42/12511.md?p=9) of each known [flood](/usc/42/4121.md?p=a-1)-prone [community](/usc/42/4003.md?p=a-1) not already participating in the [national flood insurance program](/usc/42/4004.md?p=a-4) of its tentative identification as a [community](/usc/42/4003.md?p=a-1) containing one or more areas having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3). - (b) **Alternative actions of tentatively identified communities; public hearing; opportunity for submission of evidence; finality of administrative determination of existence or extent of flood hazard area—** After such notification, each tentatively identified [community](/usc/42/4003.md?p=a-1) shall either (1) promptly make proper application to participate in the [national flood insurance program](/usc/42/4004.md?p=a-4) or (2) within six months submit technical data sufficient to establish to the satisfaction of the [Administrator](/usc/42/4003.md?p=a-6) that the [community](/usc/42/4003.md?p=a-1) either is not seriously [flood](/usc/42/4121.md?p=a-1) prone or that such [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) as may have existed have been corrected by [flood](/usc/42/4121.md?p=a-1)-works or other [flood](/usc/42/4121.md?p=a-1) control methods. The [Administrator](/usc/42/4003.md?p=a-6) may, in his discretion, grant a public hearing to any [community](/usc/42/4003.md?p=a-1) with respect to which conflicting data exist as to the nature and extent of a [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3). If the [Administrator](/usc/42/4003.md?p=a-6) decides not to hold a hearing, the [community](/usc/42/4003.md?p=a-1) shall be given an opportunity to submit written and documentary evidence. Whether or not such hearing is granted, the [Administrator](/usc/42/4003.md?p=a-6)’s final determination as to the existence or extent of a [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) area in a particular [community](/usc/42/4003.md?p=a-1) shall be deemed conclusive for the purposes of this Act if supported by substantial evidence in the record considered as a whole. - (c) **Subsequent notification to additional communities known to be flood prone areas—** As information becomes available to the [Administrator](/usc/42/4003.md?p=a-6) concerning the existence of [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) in [communities](/usc/42/4003.md?p=a-1) not known to be [flood](/usc/42/4121.md?p=a-1) prone at the time of the initial notification provided for by [subsection (a)](#a) of this section he shall provide similar notifications to the [chief executive officers](/usc/42/12511.md?p=9) of such additional [communities](/usc/42/4003.md?p=a-1), which shall then be subject to the requirements of [subsection (b)](#b) of this section. - (d) **Provisions of section 4106 applicable to flood-prone communities disqualified for flood insurance program—** Formally identified [flood](/usc/42/4121.md?p=a-1)-prone [communities](/usc/42/4003.md?p=a-1) that do not qualify for the [national flood insurance program](/usc/42/4004.md?p=a-4) within one year after such notification or by the date specified in [section 4106 of this title](/usc/42/4106.md), whichever is later, shall thereafter be subject to the provisions of that section relating to [flood](/usc/42/4121.md?p=a-1)-prone [communities](/usc/42/4003.md?p=a-1) which are not participating in the [program](/usc/42/274l–1.md?p=4). - (e) **Administrative procedures; establishment; reimbursement of certain expenses; appropriation authorization—** The [Administrator](/usc/42/4003.md?p=a-6) is authorized to establish administrative procedures whereby the identification under this section of one or more areas in the [community](/usc/42/4003.md?p=a-1) as having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) may be appealed to the [Administrator](/usc/42/4003.md?p=a-6) by the [community](/usc/42/4003.md?p=a-1) or any [owner](/usc/42/13641.md?p=4) or lessee of real property within the [community](/usc/42/4003.md?p=a-1) who believes his property has been inadvertently included in a special [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) area by the identification. When, incident to any appeal under this subsection, the [owner](/usc/42/13641.md?p=4) or lessee of real property or the [community](/usc/42/4003.md?p=a-1), as the case may be, incurs expense in connection with the services of surveyors, engineers, or similar services, but not including legal services, in the effecting of an appeal which is successful in whole or part, the [Administrator](/usc/42/4003.md?p=a-6) shall reimburse such individual or [community](/usc/42/4003.md?p=a-1) to an extent measured by the ratio of the successful portion of the appeal as compared to the entire appeal and applying such ratio to the reasonable value of all such services, but no reimbursement shall be made by the [Administrator](/usc/42/4003.md?p=a-6) in respect to any fee or expense payment, the payment of which was agreed to be contingent upon the result of the appeal. There is authorized to be appropriated for purposes of implementing this subsection not to exceed $250,000. # §4106. Nonparticipation in flood insurance program - (a) **Prohibition against Federal approval of financial assistance—** No Federal officer or agency shall approve any [financial assistance for acquisition or construction purposes](/usc/42/4003.md?p=a-4) on and after July 1, 1975, for use in any area that has been identified by the [Administrator](/usc/42/4003.md?p=a-6) as an area having special [flood](/usc/42/4121.md?p=a-1) [hazards](/usc/42/5165f.md?p=a-3) unless the [community](/usc/42/4003.md?p=a-1) in which such area is situated is then participating in the [national flood insurance program](/usc/42/4004.md?p=a-4). - (b) **Notification of purchaser or lessee of property in flood hazard area of availability of Federal disaster relief assistance in event of a flood disaster—** In addition to the requirements of [section 4104a of this title](/usc/42/4104a.md), each [Federal entity for lending regulation](/usc/42/4003.md?p=a-5) shall by regulation require the [regulated lending institutions](/usc/42/4003.md?p=a-10) described in such section, and each [Federal agency lender](/usc/42/4003.md?p=a-7) shall issue regulations requiring the [Federal agency lender](/usc/42/4003.md?p=a-7), described in such section to notify (as a condition of making, increasing, extending, or renewing any loan secured by property described in such section) the purchaser or lessee of such property of whether, in the event of a [disaster](/usc/42/5204.md?p=2) caused by [flood](/usc/42/4121.md?p=a-1) to such property, Federal [disaster](/usc/42/5204.md?p=2) relief assistance will be available to such property. # §4107. Consultation with local officials; scope In carrying out his responsibilities under the provisions of this title[^1] and the National [Flood](/usc/42/4121.md?p=a-1) Insurance Act of 1968 [[42 U.S.C. 4001](/usc/42/4001.md) et seq.] which relate to notification to and identification of [flood](/usc/42/4121.md?p=a-1)-prone areas and the application of criteria for land management and use, including criteria derived from data reflecting new developments that may indicate the desirability of modifying elevations based on previous [flood](/usc/42/4121.md?p=a-1) studies, the [Administrator](/usc/42/4003.md?p=a-6) shall establish procedures assuring adequate consultation with the appropriate elected officials of general purpose [local governments](/usc/42/8401a.md), including but not limited to those [local governments](/usc/42/8401a.md) whose prior eligibility under the [program](/usc/42/274l–1.md?p=4) has been suspended. Such consultation shall include, but not be limited to, fully informing local officials at the commencement of any [flood](/usc/42/4121.md?p=a-1) elevation study or investigation undertaken by any agency on behalf of the [Administrator](/usc/42/4003.md?p=a-6) concerning the nature and purpose of the study, the areas involved, the manner in which the study is to be undertaken, the general principles to be applied, and the use to be made of the data obtained. The [Administrator](/usc/42/4003.md?p=a-6) shall encourage local officials to disseminate information concerning such study widely within the [community](/usc/42/4003.md?p=a-1), so that interested [persons](/usc/42/4121.md?p=a-5) will have an opportunity to bring all relevant facts and technical data concerning the local [flood](/usc/42/4121.md?p=a-1) [hazard](/usc/42/5165f.md?p=a-3) to the attention of the agency during the course of the study. # §4121. Definitions - (a) As used in this chapter— - (1) the term “[flood](#b)” shall have such meaning as may be prescribed in regulations of the [Administrator](/usc/42/4003.md?p=a-6), and may include inundation from rising waters or from the overflow of streams, rivers, or other bodies of water, or from tidal surges, abnormally high tidal water, tidal waves, tsunamis, hurricanes, or other severe storms or deluge; - (2) the terms “United States” (when used in a geographic sense) and “State” includes the several States, the District of Columbia, the territories and possessions, the Commonwealth of Puerto Rico, and the [Trust](/usc/42/12854.md?p=6) Territory of the Pacific Islands; - (3) the terms “insurance company”, “other insurer” and “insurance agent or broker” include any organization or [person](#a-5) that is authorized to engage in the business of insurance under the laws of any [State](#a-2), subject to the reporting requirements of the Securities Exchange Act of 1934 [[15 U.S.C. 78a](/usc/15/78a.md) et seq.] pursuant to section [13(a)](/usc/15/13.md?p=a) or [15(d)](/usc/15/15.md) of such Act ([15 U.S.C. 78m(a)](/usc/15/78m.md?p=a) and 78o(d)), or authorized by the [Administrator](/usc/42/4003.md?p=a-6) to assume reinsurance on risks insured by the [flood](#b) insurance [program](/usc/42/274l–1.md?p=4); - (4) the term “insurance adjustment organization” includes any organizations and [persons](#a-5) engaged in the business of adjusting loss [claims](/usc/42/1320a–7a.md?p=i-2) arising under insurance policies issued by any [insurance company](#a-3) or [other insurer](#a-3); - (5) the term “person” includes any individual or group of individuals, [corporation](/usc/42/2296b–7.md?p=1), partnership, association, or any other organized group of persons, including [State](#a-2) and [local governments](/usc/42/8401a.md) and agencies thereof; - (6) the term “[Administrator](/usc/42/4003.md?p=a-6)” means the [Administrator](/usc/42/4003.md?p=a-6) of the Federal Emergency Management Agency; - (7) the term “repetitive loss structure” means a structure covered by a contract for [flood](#b) insurance that— - (A) has incurred [flood](#b)-related damage on 2 occasions, in which the cost of repair, on the average, equaled or exceeded 25 percent of the value of the structure at the time of each such [flood](#b) event; and - (B) at the time of the second incidence of [flood](#b)-related damage, the contract for [flood](#b) insurance contains increased cost of compliance coverage.[^1] - (8) the term “[Federal agency lender](/usc/42/4003.md?p=a-7)” means a [Federal agency](/usc/42/4003.md?p=a-2) that makes direct loans secured by [improved real estate](/usc/42/4003.md?p=a-8) or a mobile home, to the extent such agency acts in such capacity; - (9) the term “[Federal entity for lending regulation](/usc/42/4003.md?p=a-5)” means the [Board](/usc/42/10261.md?p=2) of [Governors](/usc/42/6372.md?p=1) of the Federal Reserve System, the Federal Deposit Insurance [Corporation](/usc/42/2296b–7.md?p=1), the Comptroller of the Currency, the National Credit Union Administration, and the Farm Credit Administration, and with respect to a particular [regulated lending institution](/usc/42/4003.md?p=a-10) means the entity primarily responsible for the supervision of the institution; - (10) the term “[improved real estate](/usc/42/4003.md?p=a-8)” means real estate upon which a [building](/usc/42/6881.md?p=i-3) is located; - (11) the term “[lender](/usc/42/4003.md?p=a-9)” means a [regulated lending institution](/usc/42/4003.md?p=a-10) or [Federal agency lender](/usc/42/4003.md?p=a-7); - (12) the term “natural and beneficial floodplain functions” means— - (A) the functions associated with the natural or relatively undisturbed floodplain that (i) moderate flooding, retain [flood](#b) waters, reduce erosion and sedimentation, and mitigate the effect of waves and storm surge from storms, and (ii) reduce [flood](#b) related damage; and - (B) ancillary beneficial functions, including maintenance of water quality and recharge of ground water, that reduce [flood](#b) related damage; - (13) the term “[regulated lending institution](/usc/42/4003.md?p=a-10)” means any bank, savings and loan association, credit union, farm credit bank, Federal land bank association, production credit association, or similar institution subject to the supervision of a [Federal entity for lending regulation](/usc/42/4003.md?p=a-5); - (14) the term “[servicer](/usc/42/4003.md?p=a-11)” means the [person](#a-5) responsible for receiving any scheduled periodic payments from a borrower pursuant to the terms of a loan, including amounts for taxes, insurance premiums, and other charges with respect to the property securing the loan, and making the payments of principal and interest and such other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the loan; and - (15) the term “substantially damaged structure” means a structure covered by a contract for [flood](#b) insurance that has incurred damage for which the cost of repair exceeds an amount specified in any regulation promulgated by the [Administrator](/usc/42/4003.md?p=a-6), or by a [community](/usc/42/4003.md?p=a-1) ordinance, whichever is lower. - (b) The term “[flood](#a-1)” shall also include inundation from mudslides which are proximately caused by accumulations of water on or under the ground; and all of the provisions of this chapter shall apply with respect to such mud-slides in the same manner and to the same extent as with respect to [floods](#a-1) described in [subsection (a)(1)](#a-1), subject to and in accordance with such regulations, modifying the provisions of this chapter (including the provisions relating to land management and use) to the extent necessary to insure that they can be effectively so applied, as the [Administrator](/usc/42/4003.md?p=a-6) may prescribe to achieve (with respect to such mudslides) the purposes of this chapter and the objectives of the [program](/usc/42/274l–1.md?p=4). - (c) The term “[flood](#a-1)” shall also include the collapse or subsidence of land along the shore of a lake or other body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels, and all of the provisions of this chapter shall apply with respect to such collapse or subsidence in the same manner and to the same extent as with respect to [floods](#a-1) described in [subsection (a)(1)](#a-1), subject to and in accordance with such regulations, modifying the provisions of this chapter (including the provisions relating to land management and use) to the extent necessary to insure that they can be effectively so applied, as the [Administrator](/usc/42/4003.md?p=a-6) may prescribe to achieve (with respect to such collapse or subsidence) the purposes of this chapter and the objectives of the [program](/usc/42/274l–1.md?p=4). # §4122. Studies of other natural disasters; cooperation and consultation with other departments and agencies - (a) The [Administrator](/usc/42/4003.md?p=a-6) is authorized to undertake such studies as may be necessary for the purpose of determining the extent to which insurance protection against earthquakes or any other [natural disaster](/usc/42/18711.md?p=a-3) perils, other than [flood](/usc/42/4121.md?p=a-1), is not available from public or private sources, and the feasibility of such insurance protection being made available. - (b) Studies under this section shall be carried out, to the maximum extent practicable, with the cooperation of other Federal departments and agencies and [State](/usc/42/4121.md?p=a-2) and local agencies, and the [Administrator](/usc/42/4003.md?p=a-6) is authorized to consult with, receive information from, and enter into any necessary [agreements](/usc/42/1320b–8.md?p=a-3-A) or other arrangements with such other Federal departments and agencies (on a reimbursement basis) and such [State](/usc/42/4121.md?p=a-2) and local agencies. # §4123. Advance payments Any payments under this chapter may be made (after necessary adjustment on account of previously made underpayments or overpayments) in advance or by way of reimbursement, and in such installments and on such conditions, as the [Administrator](/usc/42/4003.md?p=a-6) may determine. # §4124. Applicability of fiscal controls The provisions of [chapter 91](/usc/31/chstVI-ch91.md) of title 31 shall apply to the [program](/usc/42/274l–1.md?p=4) authorized under this chapter to the same extent as they apply to wholly owned Government [corporations](/usc/42/2296b–7.md?p=1). # §4125. Finality of certain financial transactions Notwithstanding the provisions of any other law— - (1) any financial transaction authorized to be carried out under this chapter, and - (2) any payment authorized to be made or to be received in connection with any such financial transaction, shall be final and conclusive upon all officers of the Government. # §4126. Administrative expenses Any administrative expenses which may be sustained by the Federal Government in carrying out the [flood](/usc/42/4121.md?p=a-1) insurance and floodplain management [programs](/usc/42/274l–1.md?p=4) authorized under this chapter may be paid with amounts from the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) (as provided under [section 4017(a)(4) of this title](/usc/42/4017.md?p=a-4)), subject to approval in appropriations Acts. # §4127. Authorization of appropriations; availability - (a) There are hereby authorized to be appropriated such sums as may from time to time be necessary to carry out this chapter, including sums— - (1) to cover administrative expenses authorized under [section 4126 of this title](/usc/42/4126.md); - (2) to reimburse the National [Flood](/usc/42/4121.md?p=a-1) Insurance [Fund](/usc/42/12854.md?p=3) established under [section 4017 of this title](/usc/42/4017.md) for— - (A) premium equalization payments under [section 4054 of this title](/usc/42/4054.md) which have been made from such [fund](/usc/42/12854.md?p=3); and - (B) reinsurance [claims](/usc/42/1320a–7a.md?p=i-2) paid under the excess loss reinsurance coverage provided under [section 4055 of this title](/usc/42/4055.md); and - (3) to make such other payments as may be necessary to carry out the purposes of this chapter. - (b) All such [funds](/usc/42/12854.md?p=3) shall be available without fiscal year limitation. - (c) There are authorized to be appropriated such sums as may be necessary through the date specified in [section 4026 of this title](/usc/42/4026.md), for studies under this chapter. # §4128. Rules and regulations - (a) The [Administrator](/usc/42/4003.md?p=a-6) is authorized to issue such regulations as may be necessary to carry out the purpose of this Act. - (b) The head of each [Federal agency](/usc/42/4003.md?p=a-2) that administers a [program](/usc/42/274l–1.md?p=4) of [financial assistance](/usc/42/4003.md?p=a-3) relating to the acquisition, [construction](/usc/42/7479.md?p=2-C), reconstruction, repair, or improvement of publicly or privately owned land or [facilities](/usc/42/11049.md?p=4), and each Federal instrumentality responsible for the supervision, approval, regulation, or insuring of banks, savings and loan associations, or similar institutions, shall, in cooperation with the [Administrator](/usc/42/4003.md?p=a-6), issue appropriate rules and regulations to govern the carrying out of the agency’s responsibilities under this Act.