United States 115th Congress Status: Passed House 1 R cosponsors

HR 2874 — 21st Century Flood Reform Act

Last action — Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

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  1. ✓
    Introduced
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    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 115th Congress. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

21st Century Flood Reform Act TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION (Sec. 101) This bill amends the National Flood Insurance Act of 1968 to extend the National Flood Insurance Program (NFIP) through FY2022. (Sec. 102) The bill changes annual minimums and limits on premium increases for specified policies subsidized through NFIP to: (1) increase the minimum from 5% to 5.5% for the second year after enactment, (2) increase the minimum from 5% to 6% for the third year, (3) increase the minimum from 5% to 6.5% for the fourth year and beyond, and (4) decrease the limit on annual premium increases from 18% to 15%. (Sec. 103) The Federal Emergency Management Agency (FEMA) must provide financial assistance through state programs for low income families to purchase NFIP insurance. (Sec. 104) FEMA must publish an annual explanation of flood insurance premiums and hold public meetings. (Sec. 105) FEMA must incorporate in premium rates the differences in coastal and riverine (inland) flood risk. (Sec. 106) FEMA's implementation of monthly premium payment schedules is exempted from rulemaking. FEMA may implement this schedule as a pilot program. The Government Accountability Office (GAO) must report on the costs associated with monthly payment of premiums. FEMA must annually report on these costs. (Sec. 107) FEMA must clearly communicate to policyholders their property's full flood risk, the history of flood claims on their property, and the effect of filing further claims. (Sec. 108) FEMA must make data on historical claims, required coverage, and previous damage available to the current owner of the property within 30 days of a request. (Sec. 109) State or local governments must require a seller or lessor to disclose to a purchaser or lessee any previous flood damage or flood insurance claims, and any obligation to purchase flood insurance. This requirement, whether by statute or regulation, must be adopted for the area to qualify for participation in NFIP. (Sec. 110) FEMA may create a community-wide flood insurance pilot program that covers all residential and non-residential properties and satisfies the mandatory purchase requirement. (Federal agencies that oversee mortgage lending must mandate the purchase of flood insurance for properties located in special flood hazard areas.) (Sec. 111) FEMA must incorporate the replacement cost value of a structure insured under NFIP in its consideration of chargeable premium rates. FEMA must conduct a study regarding risk rating redesign utilizing replacement cost and report the findings to Congress. (Sec. 112) The flood insurance premium for a residential property having four or fewer residences is limited to no more than $10,000 a year, subject to adjustments for future inflation. (Sec. 113) In determining premium rates, FEMA shall offer a rate reduction if policyholders implement specified flood damage mitigation methods. Mitigation techniques that qualify for a rate reduction include methods that can be utilized on a block or neighborhood scale, and the elevation of mechanical systems. (Sec. 114) FEMA shall conduct a study of the feasibility of providing coverage for individual units in cooperative housing projects. (Sec. 115) FEMA is directed to establish a pilot program for "Write Your Own" companies (companies that write and service federal standard flood insurance policies in their own name) to investigate preexisting structural conditions in properties that may result in a denial of a claim in the event of a flood loss under NFIP. (Sec. 116) The bill establishes a Federal Flood Insurance Advisory Committee. (Sec. 117) The bill directs federal lending regulation entities and FEMA to update interagency guidance regarding flood insurance. (Sec. 118) The bill directs the GAO to report on claims adjustment practices under NFIP. (Sec. 119) The bill directs the GAO to report on NFIP coverage of earth movement and subsidence caused by flooding. TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT (Sec. 201) The bill revises the financial requirements that apply to flood insurance for home loans or loan guarantees by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Private flood insurance must meet any financial strength requirements set forth by Fannie Mae and Freddie Mac. Private flood insurance may include policies issued by nonadmitted insurers (including surplus lines insurance) as long as the insurer is eligible to provide insurance in the home state of the insured and complies with the laws and regulations of that state. (Currently, private flood insurance must provide coverage at least as broad as coverage provided by NFIP.) FEMA must consider any period during which a property was continuously covered by private flood insurance to be a period of continuous insurance coverage, including for the purposes of NFIP subsidies. Mutual aid societies may sell private flood insurance, subject to state law. The bill defines a mutual aid society as an organization of members who share a common set of ethical or religious beliefs. This coverage satisfies the mandatory purchase requirement. (Sec. 202) The required purchase of flood insurance is limited to residential properties (currently, the requirement applies to all types of property). (Sec. 203) FEMA must allow a Write Your Own company to sell private flood insurance. (Sec. 204) FEMA must provide data related to NFIP risks and premiums, including community-level data, through a publicly available data system. (Sec. 205) If an NFIP policyholder switches to private flood insurance during the NFIP coverage period, FEMA must refund any unused NFIP premium. Properties that have received a claim payment for that period or Increased Cost of Compliance mitigation assistance are not eligible for a refund. (Sec. 206) The GAO must report on the feasibility of reducing flood insurance premiums and eliminating the need for flood insurance coverage by authorizing flood damage savings accounts. (Sec. 207) If determined feasible by the GAO, FEMA must establish a demonstration program for flood damage savings accounts. TITLE III--MAPPING FAIRNESS (Sec. 301) In establishing premium rates, FEMA must use, in part, applicable flood insurance rate maps and other appropriate risk assessment models, data, and tools. (Sec. 302) FEMA denials of requests for updates to flood maps may be appealed. If an appeal is successful, FEMA must refund premiums and the policyholder may be permitted to cancel the policy. (Sec. 303) The bill revises the appeal period for FEMA flood elevation determinations and, if no appeals are filed, makes a determination final. (Sec. 304) This bill amends the Biggert-Waters Flood Insurance Reform Act of 2012 to revise the time period FEMA provides to communities for consultation regarding mapping changes. (Sec. 305) FEMA must consult with the Department of Defense, the U.S. Geological Survey, and the National Oceanic and Atmospheric Administration to obtain information relevant to flood insurance mapping. (Sec. 306) The bill revises the duties of the Technical Mapping Advisory Council and FEMA to provide for the development of alternative flood insurance rate maps by states and communities for use in NFIP. TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED MITIGATION (Sec. 401) The bill revises the NFIP community rating program to require (currently, allows) FEMA to provide premium credits in communities that protect natural and beneficial floodplain functions. (Sec. 402) The bill requires a community that participates in NFIP and has been repeatedly flooded to: (1) assess the continuing risks to community areas repeatedly damaged by floods; and (2) develop and implement a publicly available, community-specific plan for mitigating continuing flood risks to such areas. FEMA must, upon request, provide a community with data to assist in preparation of the required plan. In making decisions with respect to awarding mitigation grants under the Act, FEMA may consider the extent to which a community has complied with these requirements and is working to remedy problems with repeatedly flooded areas. A community that does not comply with these requirements shall be subject to sanctions. (Sec. 403) FEMA must make additional coverage available under its Increased Cost of Compliance program. Currently, the program provides coverage to insure the cost of mitigating future flood damage to an NFIP-insured structure that has been substantially or repetitively damaged by floods. TITLE V--PROGRAM INTEGRITY (Sec. 501) The bill makes FEMA responsible for ensuring NFIP is financially sound. FEMA must commission an annual independent actuarial review of the financial status of NFIP. (Sec. 502) The premium surcharge amount on flood insurance is changed to: (1) increase annual surcharges for all primary residences, (2) reduce annual surcharges for certain non-owner occupied residential properties, and (3) increase annual surcharges for all other non-primary residences. (Sec. 503) FEMA must institute a uniform rate of assessment for all policyholders when increasing premiums. During the phase-in period of the required reserve ratio for the NFIP reserve fund, FEMA must increase the annual assessment by at least one percentage point if the required amount was not collected the previous year. (Sec. 504) This bill revises NFIP classifications of properties incurring multiple flood losses and coverage for properties that have incurred multiple flood losses. For properties with two flood insurance claims, FEMA must raise premiums by at least 10% annually if the premiums do not reflect full risk. For properties with three or more claims, FEMA must raise premiums by at least 15% annually if the premiums do not reflect full risk. Certain multiple loss properties are subject to minimum deductibles. FEMA must undertake efforts to validate the accuracy of claim history data. FEMA must deny coverage to a property owner that does not implement flood mitigation measures if the property is an extreme repetitive loss property (a property with cumulative claims that exceed 150% of the maximum coverage amount). Multiple loss properties are not eligible for subsidized premium rates that apply to properties newly mapped into areas with special flood hazards. FEMA must communicate to policyholders the availability of flood mitigation assistance and the effect on premiums of filing further claims for multiple-loss properties. The bill revises the Flood Mitigation Assistance program, including to make assistance available to additional multiple loss properties. (Sec. 505) This bill eliminates NFIP coverage for properties that prospectively exceed specified lifetime levels of claim payments. (Sec. 506) The allowance paid to Write Your Own companies is limited to 27.9% of the premium rate. FEMA must reduce the costs to companies participating in the Write Your Own program. (Sec. 507) This bill amends the Flood Disaster Protection Act of 1973 to increase penalties for violations of the mandatory purchase requirement. (Sec. 508) If a state allows all-perils policies to cover flood damage, property in that state is not subject to NFIP's mandatory purchase requirement. (Sec. 509) The bill raises the maximum loan amount for the small loan exception to NFIP's mandatory purchase requirement from $5,000 to $25,000, adjusted for inflation. A state or local government, or a private lender, may require flood insurance coverage for structures outside a special flood hazard area. (Sec. 510) FEMA must approve claims under NFIP not later than 120 days after a policyholder submits proof of loss. (Sec. 511) FEMA must annually cede a portion of the risk from NFIP to private reinsurance or capital markets. FEMA is also required to establish a probable maximum loss target for the program each fiscal year. (Sec. 512) The GAO must report on options for simplifying NFIP. (Sec. 513) The GAO must report on the mandatory purchase requirement. TITLE VI--ADMINISTRATIVE REFORMS (Sec. 601) Fraudulent or false statements in connection with a flood insurance claim under NFIP make a person subject to civil enforcement, penalties, and suspension from the program. The bill directs FEMA to refer evidence of this activity to the Department of Justice. (Sec. 602) FEMA is directed to revise the appeals process for policyholders seeking review of a flood insurance claim denial by their insurer. A decision shall be provided to the policyholder. (Sec. 603) Claims under NFIP must be approved or denied no later than 90 days after the claim is made, with provisions for an extension in extraordinary cases. (Sec. 604) The bill gives FEMA litigation oversight and strategy authority in litigation conducted by Write Your Own companies. (Sec. 605) FEMA may not hire in connection with NFIP any disbarred or suspended attorney. (Sec. 606) FEMA may rely upon technical assistance reports when adjusting claims made under NFIP only if the reports are final and meet professional standards. Technical assistance reports must be made available to policyholders upon request when used in claim determinations. (Sec. 607) Every policy issued under NFIP must include documents describing the type of loss covered, a summary of the costs of the policy, and an explanation of the policy’s parameters. (Sec. 608) FEMA is authorized to credit reserve funds to the National Flood Insurance Fund. (Sec. 609) FEMA is directed to ensure sufficient staff for the Flood Insurance Advocate. (Sec. 610) The Fair Labor Standards Act of 1938 is amended to exempt from maximum hours requirements any employee who: (1) adjusts or evaluates claims resulting from or relating to a major disaster for at least a minimum weekly amount during the two-year period after the disaster; and (2) is employed as an adjuster or evaluator by an employer not engaged in underwriting, selling, or marketing property, casualty, or liability insurance policies or contracts.

Bill Text

What changed in the latest version

8 added · 4 removed

Plain-language change summary

The amendment to H.R. 2874 includes added language about the bill's referral to the Senate and the Committee on Banking, Housing, and Urban Affairs. Specifically, it mentions that the bill is further amended by including a new subsection. The removal of the introductory section does not change the core content but clarifies the bill's context within the legislative process.

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2874 Engrossed in House (EH)] <DOC> 115th CONGRESS 1st Session H.
2874 Referred in Senate (RFS)] <DOC> 115th CONGRESS 1st Session H.
2874 _______________________________________________________________________ AN ACT To achieve reforms to improve the financial stability of the National Flood Insurance Program, to enhance the development of more accurate estimates of flood risk through new technology and better maps, to increase the role of private markets in the management of flood insurance risks, and to provide for alternative methods to insure against flood peril, and for other purposes.
2874 _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES November 15, 2017 Received;
read twice and referred to the Committee on Banking, Housing, and Urban Affairs _______________________________________________________________________ AN ACT To achieve reforms to improve the financial stability of the National Flood Insurance Program, to enhance the development of more accurate estimates of flood risk through new technology and better maps, to increase the role of private markets in the management of flood insurance risks, and to provide for alternative methods to insure against flood peril, and for other purposes.
Clerk.
KAREN L.
115th CONGRESS 1st Session H.
HAAS, Clerk.
R.
2874 _______________________________________________________________________ AN ACT To achieve reforms to improve the financial stability of the National Flood Insurance Program, to enhance the development of more accurate estimates of flood risk through new technology and better maps, to increase the role of private markets in the management of flood insurance risks, and to provide for alternative methods to insure against flood peril, and for other purposes.
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Sections of law this bill changes

30 sections in 5 laws

From the bill's own amending language, matched to the official United States Code (current through Public Law 119-121).

Federal credit unions · 12 U.S.C. ch. 14 1 section
  • § 1784 Examination of insured credit unions Amends

    12 U.S.C. § 1784 — at 1784(e)(2)(A)

    The law today

    (a) Examiners and claim agents; powers; report by examiner; jurisdiction of court The Board shall appoint examiners who shall have power, on its behalf, to examine any insured credit union, any credit union making application for insurance of its member accounts, or any closed insured credit union whenever in the judgment of the Board an examination is necessary to determine the condition of any such credit union for insurance purposes. Each examiner shall have power to make a thorough examination of all of the affairs of the credit union and shall make a full and detailed report of the condition of the credit union to the Board. The Board in like manner shall appoint claim agents who shall have power to investigate and examine all claims for insured member accounts. Each claim agent shall have power to administer oaths and affirmations, to examine and to take and preserve testimony under oath as to any matter in respect to claims for insured accounts, and to issue subpenas and subpenas duces tecum and, for the enforcement thereof, to apply to the United States district court for the judicial district or the United States court in any territory in which the principal office of the credit union is located or in which the witness resides or carries on business. Such courts shall have jurisdiction and power to order and require compliance with any such subpena. (b) Power of Board; jurisdiction of court In connection with examinations of insured credit unions, or with other types of investigations to determine compliance with applicable law and regulations, the Board, or its designated representatives, shall have power to administer oaths and affirmations, to examine and to take and preserve testimony under oath as to any matter in respect of the affairs of any such credit union, and to issue subpenas and subpenas duces tecum and to exercise such other powers as are set forth in section 1786(p) of this title and, for the enforcement thereof, to apply to the United States district court for the judicial district or the United States Court in any territory in which the principal office of the credit union is located or in which the witness resides or carries on business. Such courts shall have jurisdiction and power to order and require compliance with any such subpena. (c) Court orders enforcing subpenas; immunity In cases of refusal to obey a subpena issued to, or contumacy by, any person, the Board may invoke the aid of any court of the United States within the jurisdiction of which such hearing, examination, or investigation is carried on, or where such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, records, or other papers. Such court may issue an order requiring such person to appear before the Board, or before a person designated by it, there to produce records, if so ordered, or to give testimony touching the matter in question. Any failure to obey such order of the court may be punished by such court as a contempt thereof. All process in any such case may be served in the judicial district whereof such person is an inhabitant or carries on business or wherever he may be found. No person shall be excused from attending and testifying or from producing books, records, or other papers in obedience to a subpena issued under the authority of this subchapter on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to penalty or forfeiture, but no individual shall be prosecuted or subject to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled to testify or produce evidence, documentary or otherwise, after having claimed his privilege against self-incrimination, except that such individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying. (d) Administration acceptan...

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Federal deposit insurance corporation · 12 U.S.C. ch. 16 1 section
  • § 1820 Administration of Corporation Amends

    12 U.S.C. § 1820 — at 1820(i)(2)(A)

    The law today

    (a) Board of Directors; use of mails; cooperation with other Federal agencies The Board of Directors shall administer the affairs of the Corporation fairly and impartially and without discrimination. The Board of Directors of the Corporation shall determine and prescribe the manner in which its obligations shall be incurred and its expenses allowed and paid. The Corporation shall be entitled to the free use of the United States mails in the same manner as the executive departments of the Government. The Corporation with the consent of any Federal Reserve bank or of any board, commission, independent establishment, or executive department of the Government, including any field service thereof, may avail itself of the use of information, services, and facilities thereof in carrying out the provisions of this chapter. (b) Examinations (1) Appointment of examiners and claims agents The Board of Directors shall appoint examiners and claims agents. (2) Regular examinations Any examiner appointed under paragraph (1) shall have power, on behalf of the Corporation, to examine— (A) any insured State nonmember bank or insured State branch of any foreign bank; (B) any depository institution which files an application with the Corporation to become an insured depository institution; and (C) any insured depository institution in default, whenever the Board of Directors determines an examination of any such depository institution is necessary. (3) Special examination of any insured depository institution (A) In general In addition to the examinations authorized under paragraph (2), any examiner appointed under paragraph (1) shall have power, on behalf of the Corporation, to make any special examination of any insured depository institution or nonbank financial company supervised by the Board of Governors or a bank holding company described in section 165(a) of the Financial Stability Act of 2010 [12 U.S.C. 5365(a)], whenever the Board of Directors determines that a special examination of any such depository institution is necessary to determine the condition of such depository institution for insurance purposes, or of such nonbank financial company supervised by the Board of Governors or bank holding company described in section 165(a) of the Financial Stability Act of 2010 [12 U.S.C. 5365(a)], for the purpose of implementing its authority to provide for orderly liquidation of any such company under title II 1 of that Act, provided that such authority may not be used with respect to any such company that is in a generally sound condition. (B) Limitation Before conducting a special examination of a nonbank financial company supervised by the Board of Governors or a bank holding company described in section 165(a) of the Financial Stability Act of 2010 [12 U.S.C. 5365(a)], the Corporation shall review any available and acceptable resolution plan that the company has submitted in accordance with section 165(d) of that Act [12 U.S.C. 5365(d)], consistent with the nonbinding effect of such plan, and available reports of examination, and shall coordinate to the maximum extent practicable with the Board of Governors, in order to minimize duplicative or conflicting examinations. (4) Examination of affiliates (A) In general In making any examination under paragraph (2) or (3), any examiner appointed under paragraph (1) shall have power, on behalf of the Corporation, to make such examinations of the affairs of any affiliate of any depository institution as may be necessary to disclose fully— (i) the relationship between such depository institution and any such affiliate; and (ii) the effect of such relationship on the depository institution. (B) Commitment by foreign banks to allow examinations of affiliates No branch or depository institution subsidiary of a foreign bank may become an insured depository institution unless such foreign bank submits a written binding commitment to the Board of Directors to permit any examination of any affiliate of ...

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Government sponsored enterprises · 12 U.S.C. ch. 46 1 section
  • § 4521 Annual reports by Director Amends

    12 U.S.C. § 4521 — at 4521(a)(4)

    The law today

    (a) General report The Director shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, not later than June 15 of each year, a written report, which shall include— (1) a description of the actions taken, and being undertaken, by the Director to carry out this chapter; (2) a description of the financial safety and soundness of each regulated entity, including the results and conclusions of the annual examinations of the regulated entities conducted under section 4517(a) of this title; (3) any recommendations for legislation to enhance the financial safety and soundness of the regulated entities; (4) a description of— (A) whether the procedures established by each regulated entity pursuant to section 4012a(b)(3) of title 42 are adequate and being complied with, and (B) the results and conclusions of any examination, as determined necessary by the Director, to determine the compliance of the regulated entities with the requirements of section 4012a(b)(3) of title 42, which shall include a description of the methods used to determine compliance and the types and sources of deficiencies (if any), and identify any corrective measures that have been taken to remedy any such deficiencies, except that the information described in this paragraph shall be included only in each of the first, third, and fifth annual reports under this subsection required to be submitted after the expiration of the 1-year period beginning on September 23, 1994; and 1 (5) the assessment of the Board or any of its members with respect to— (A) the safety and soundness of the regulated entities; (B) any material deficiencies in the conduct of the operations of the regulated entities; (C) the overall operational status of the regulated entities; and (D) an evaluation of the performance of the regulated entities in carrying out their respective missions; (6) operations, resources, and performance of the Agency; and (7) such other matters relating to the Agency and the fulfillment of its mission. (b) Report on enforcement actions Not later than March 15 of each year, the Director shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a written report describing, for the preceding calendar year, the requests by the Director to the Attorney General for enforcement actions under subchapter III and describing the disposition of each request, which shall include statements of— (1) the total number of requests made by the Director; (2) the number of requests that resulted in the commencement of litigation by the Department of Justice; (3) the number of requests that did not result in the commencement of litigation by the Department of Justice; (4) with respect to requests that resulted in the commencement of litigation— (A) the number of days between the date of the request and the commencement of the litigation; and (B) the number of days between the date of the commencement and termination of the litigation; and (5) the number of litigation requests pending at the beginning of the calendar year, the number of requests made during the calendar year, the number of requests for which action was completed during the calendar year, and the number of requests pending at the end of the calendar year.

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Fair labor standards · 29 U.S.C. ch. 8 1 section
  • § 207 Maximum hours Amends

    29 U.S.C. § 207

    The law today

    (a) Employees engaged in interstate commerce; additional applicability to employees pursuant to subsequent amendatory provisions (1) Except as otherwise provided in this section, no employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed. (2) No employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, and who in such workweek is brought within the purview of this subsection by the amendments made to this chapter by the Fair Labor Standards Amendments of 1966— (A) for a workweek longer than forty-four hours during the first year from the effective date of the Fair Labor Standards Amendments of 1966, (B) for a workweek longer than forty-two hours during the second year from such date, or (C) for a workweek longer than forty hours after the expiration of the second year from such date, unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed. (b) Employment pursuant to collective bargaining agreement; employment by independently owned and controlled local enterprise engaged in distribution of petroleum products No employer shall be deemed to have violated subsection (a) by employing any employee for a workweek in excess of that specified in such subsection without paying the compensation for overtime employment prescribed therein if such employee is so employed— (1) in pursuance of an agreement, made as a result of collective bargaining by representatives of employees certified as bona fide by the National Labor Relations Board, which provides that no employee shall be employed more than one thousand and forty hours during any period of twenty-six consecutive weeks; or (2) in pursuance of an agreement, made as a result of collective bargaining by representatives of employees certified as bona fide by the National Labor Relations Board, which provides that during a specified period of fifty-two consecutive weeks the employee shall be employed not more than two thousand two hundred and forty hours and shall be guaranteed not less than one thousand eight hundred and forty-hours (or not less than forty-six weeks at the normal number of hours worked per week, but not less than thirty hours per week) and not more than two thousand and eighty hours of employment for which he shall receive compensation for all hours guaranteed or worked at rates not less than those applicable under the agreement to the work performed and for all hours in excess of the guaranty which are also in excess of the maximum workweek applicable to such employee under subsection (a) or two thousand and eighty in such period at rates not less than one and one-half times the regular rate at which he is employed; or (3) by an independently owned and controlled local enterprise (including an enterprise with more than one bulk storage establishment) engaged in the wholesale or bulk distribution of petroleum products if— (A) the annual gross volume of sales of such enterprise is less than $1,000,000 exclusive of excise taxes, (B) more than 75 per centum of such enterprise’s annual dollar volume of sales is made within the State in which such enterprise is located, and (C) not more than 25 per centum of the annual dollar volume of sales of such enterprise is to customers who are engaged in the bulk distribution of such products for resale, and such employee receives compensation for...

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National flood insurance · 42 U.S.C. ch. 50 24 sections Amends the act as a whole 1 repealed
  • § 4004 Definitions applicable to Biggert-Waters Flood Insurance Reform Act of 2012 Amends

    42 U.S.C. § 4004 — at 4004(a)

    The law today

    (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 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 having a 0.2-percent chance of being equaled or exceeded in any given year. (3) Administrator The term “Administrator” means the Administrator of the Federal Emergency Management Agency. (4) National Flood Insurance Program The term “National Flood Insurance Program” means the program established under the National Flood Insurance Act of 1968 (42 U.S.C. 4011 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 to write and service standard flood 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 Insurance Act of 1968 (42 U.S.C. 4121).

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  • § 4012 Scope of program and priorities Amends

    42 U.S.C. § 4012 — at 4012(c)

    The law today

    (a) Priority for insurance for certain residential and church properties and business concerns In carrying out the flood insurance program the Administrator shall afford a priority to making flood insurance available to cover residential properties which are designed for the occupancy of from one to four families, 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, and (2) such other information as may be necessary, the Administrator determines that it would be feasible to extend the flood insurance program 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 insurance available to cover, on such basis as may be feasible, any types and classes of— (A) other residential properties not described in subsection (a) or (d), (B) other business properties, (C) agricultural properties, (D) properties occupied by private nonprofit organizations, and (E) properties owned by State and local governments and agencies thereof, and any such extensions of the program 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 shall make flood insurance available in only those States or areas (or subdivisions thereof) which he has determined have— (1) evidenced a positive interest in securing flood insurance coverage under the flood insurance program, and (2) given satisfactory assurance that by December 31, 1971, adequate land use and control measures will have been adopted for the State or area (or subdivision) which are consistent with the comprehensive criteria for land management and use developed under section 4102 of this title, and that the application and enforcement of such measures will commence as soon as technical information on floodways and on controlling flood elevations is available. (d) Availability of insurance for multifamily properties (1) In general The Administrator shall make flood insurance available to cover residential properties of 5 or more residences. Notwithstanding any other provision of law, the maximum coverage amount that the Administrator may make available under this subsection to such residential properties 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 of 5 or more residences to obtain insurance for the contents and personal articles located in such residences.

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  • § 4012a Flood insurance purchase and compliance requirements and escrow accounts Amends

    42 U.S.C. § 4012a — at 4012a(b) and 4012a(f)(5)

    The law today

    (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 for use in any area that has been identified by the Administrator as an area having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968 [42 U.S.C. 4001 et seq.], unless the building or mobile home and any personal property to which such financial assistance relates is covered by flood insurance in an amount at least equal to its development or project 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 Insurance Act of 1968, whichever is less: Provided, That if the financial assistance provided is in the form of a loan or an insurance or guaranty of a loan, the amount of flood insurance required need not exceed the outstanding principal balance of the loan and need not be required beyond the term of the loan. The requirement of maintaining flood insurance shall apply during the life of the property, regardless of transfer of ownership of such property. (b) Requirement for mortgage loans (1) Regulated lending institutions Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council established under the Federal Financial Institutions Examination Council Act of 1974 [12 U.S.C. 3301 et seq.]) shall by regulation direct regulated lending institutions— (A) not to make, increase, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Administrator as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968 [42 U.S.C. 4001 et seq.], unless the building or mobile home and any personal property securing such loan is covered for the term of the loan by flood insurance in 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 as satisfaction of the flood insurance coverage requirement under subparagraph (A) if the coverage provided by such private flood insurance meets the requirements for coverage under such subparagraph. (2) Federal agency lenders A Federal agency lender may not make, increase, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Administrator as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968, unless the building or mobile home and any personal property securing such loan is covered for the term of the loan by flood insurance in the amount provided in paragraph (1)(A). Each Federal agency lender shall accept private flood insurance as satisfaction of the flood insurance coverage requirement under the preceding sentence if the flood insurance coverage provided by such private flood insurance meets the requirements for coverage under such sentence. Each Federal agency lender 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). (3) Government-sponsored enterprises for housing The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall implement procedures reasonably designed to ensure that, for any loan that is— (A) secured by improved real estate or a mobile home located in an area that has been identified, at the time of the origination of the loan or at any time during...

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  • § 4013 Nature and limitation of insurance coverage Amends

    42 U.S.C. § 4013

    The law today

    (a) Regulations respecting general terms and conditions of insurability The Administrator shall from time to time, after consultation with the advisory committee authorized under section 4025 of this title, appropriate representatives of the pool formed or otherwise created under section 4051 of this title, and appropriate representatives of the insurance authorities of the respective States, provide by regulation for general terms and conditions of insurability which shall be applicable to properties eligible for flood insurance coverage under section 4012 of this title, including— (1) the types, classes, and locations of any such properties which shall be eligible for flood 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), such regulations shall provide that— (1) any flood insurance coverage based on chargeable premium rates under section 4015 of this title which are less than the estimated premium rates under section 4014(a)(1) of this title shall not exceed— (A) in the case of residential properties— (i) $35,000 aggregate liability for any single-family dwelling, and $100,000 for any residential structure containing more than one dwelling unit, (ii) $10,000 aggregate liability per dwelling unit for any contents related to such unit, and (iii) in the States of Alaska and Hawaii, and in the Virgin Islands and Guam; the limits provided in clause (i) of this sentence shall be: $50,000 aggregate liability for any single-family dwelling, and $150,000 for any residential structure containing more than one dwelling unit; (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 structure, including any contents thereof related to premises of small business occupants (as that term is defined by the Administrator), 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) under regulations prescribed by the Administrator; 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 insurance under section 4012 of this title— (i) $100,000 aggregate liability for any single structure, and (ii) $100,000 aggregate liability per unit for any contents related to such unit; and (2) in the case of any residential building designed for the occupancy of from 1 to 4 families for which the risk premium rate is determined in accordance with the provisions of section 4014(a)(1) of this title, additional flood insurance in excess of the limits specified in clause (i) of subparagraph (A) of paragraph (1) shall be made available, with respect to any single such building, up to an aggregate liability (including such limits specified in paragraph (1)(A)(i)) of $250,000; (3) in the case of any residential property for which the risk premium rate is determined in accordance with the provisions of section 4014(a)(1) of this title, additional flood insurance in excess of the limits specified in clause (ii) of subparagraph (A) of paragraph (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)) of $100,000; (4) in the case...

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  • § 4013a Policy disclosures Amends

    42 U.S.C. § 4013a

    The law today

    (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 shall state 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 may impose a civil penalty of not more than $50,000 on any person that fails to comply with subsection (a).

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  • § 4014 Estimates of premium rates Amends

    42 U.S.C. § 4014 — at 4014(a)(1)(A), 4014(a)(1)(B)(ii), 4014(a)(1), and 4014(g)(2)

    The law today

    (a) Studies and investigations The Administrator is authorized to undertake and carry out such studies and investigations and receive or exchange 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 insurance which— (A) based on consideration of— (i) the risk involved and accepted actuarial principles; and (ii) the flood mitigation activities that an owner or lessee has undertaken on a property, including differences in the risk involved due to land use measures, floodproofing, flood 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 and reflected in such rates, (ii) any administrative expenses (or portion of such expenses) of carrying out the flood insurance program which, in his discretion, should properly be reflected in such rates, (iii) any remaining administrative expenses incurred in carrying out the flood insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title) not included under clause (ii), which shall be recovered by a fee charged to policyholders and such fee shall not be subject to any agents’ commissions, company expense allowances, or State or local premium taxes, and (iv) all costs, as prescribed by principles and standards 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, 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 (or is recommended to the Congress under section 4012(b) of this title); (2) the rates, if less than the rates estimated under paragraph (1), which would be reasonable, would encourage prospective insureds to purchase flood 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, company expenses allowances, or State or local premium taxes, shall include any administrative expenses incurred in carrying out the flood insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title), except that the Administrator shall not estimate rates under this paragraph for— (A) any residential property which is not the primary residence of an individual; (B) any severe repetitive loss property; (C) any property that has incurred flood-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 protection measures initiated after August 1, 1968, affect such rates. (b) Utilization of services of other Departments and agencies In carrying out subsection (a), the Administrator 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, and the Tennessee Valley Authority, and, as appropriate, other Federal departments or agencies, and for such purposes may enter into agreements or other appropriat...

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  • § 4015 Chargeable premium rates Amends

    42 U.S.C. § 4015 — at 4015(e), 4015(b)(1), 4015(g), 4015(l), 4015(b), 4015(e)(1), 4015(k), and 4015(i)

    The law today

    (a) Establishment; terms and conditions On the basis of estimates made under section 4014 of this title, and such other information as may be necessary, the Administrator 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 (at less than the estimated risk premium rates under section 4014(a)(1) of this title, 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-proofing, flood 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 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, to provide for any administrative expenses of the flood insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title); (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 and the estimated rates under section 4014(a)(2) of this title; and (5) adequate, on the basis of accepted actuarial principles, to cover the average historical loss year obligations incurred by the National Flood Insurance Fund. (c) Actuarial rate properties Subject only to the limitations provided under paragraphs (1) and (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 with respect to the following properties: (1) Post-firm properties Any property the construction or substantial improvement of which the Administrator determines has been started after December 31, 1974, or started after the effective date of the initial rate map published by the Administrator under paragraph (2) of section 4101 of this title 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). (2) Certain leased coastal and river properties Any property leased from the Federal Government (including residential and nonresidential properties) that the Administrator determines is located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood 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 insurance and floodplain management programs which have been estimated under paragraphs (1)(B)(ii) and (1)(B)(iii) of section 4014(a) of this title or paragraph (2) of such section (including the fees under such paragraphs), shall be paid to the Administrator. The Administrator shall deposit the sum in the National Flood Insurance Fund established under section 4017 of this title. (e) Annual limitation on premium increases Except with respect to properties described under paragraph (2) of subsection (c), and notwithstanding any other provision of this chapter— (1) the chargeable risk premium rate for flood insurance under this chapter for any property may not be increased by more than 18 percent e...

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  • § 4015a Premium surcharge Amends

    42 U.S.C. § 4015a

    The law today

    (a) Imposition and collection The Administrator shall impose and collect an annual surcharge, in the amount provided in subsection (b), on all policies for flood insurance coverage under the National Flood Insurance Program 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 and any other assessments and surcharges applied to such coverage. (b) Amount The amount of the surcharge under subsection (a) shall be— (1) $25, except as provided in paragraph (2); and (2) $250, in the case of a policy for any property that is— (A) a non-residential property; or (B) a residential property that is not the primary residence of an individual. (c) Termination Subsections (a) and (b) shall cease to apply on the date on which the chargeable risk premium rate for flood insurance under this chapter for each property covered by flood insurance under this chapter, other than properties for which premiums are calculated under subsection (e) or (f) of section 4014 of this title or section 4056 of this title or under section 100230 of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4014 note), is not less than the applicable estimated risk premium rate under section 4014(a)(1) of this title for such property.

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  • § 4016 Financing Amends

    42 U.S.C. § 4016 — at 4016(a)

    The law today

    (a) Authority to issue notes and other obligations All authority which was vested in the Housing and Home Finance Administrator by virtue of section 2414(e) of this title (pertaining to the issue of notes or other obligations to the Secretary of the Treasury), as amended by subsections (a) and (b) of section 1303 of this Act, shall be available to the Administrator for the purpose of carrying out the flood insurance program under this chapter; except that the total amount of notes and obligations which may be issued by the Administrator 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, 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 shall report to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, 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 borrowed by the Administrator under this authority shall, from time to time, be deposited in the National Flood Insurance Fund established under section 4017 of this title. (c) Schedule of repayments Upon the exercise of the authority established under subsection (a), the Administrator shall transmit a schedule for repayment of such amounts to— (1) the Secretary of the Treasury; (2) the Committee on Banking, Housing, and Urban Affairs of the Senate; and (3) the Committee on Financial Services of the House of Representatives. (d) Reports on repayment In connection with any funds borrowed by the Administrator under the authority established in subsection (a), the Administrator, beginning 6 months after the date on which such funds are borrowed, and continuing every 6 months thereafter until such borrowed funds are fully repaid, shall submit a report on the progress of such repayment to— (1) the Secretary of the Treasury; (2) the Committee on Banking, Housing, and Urban Affairs of the Senate; and (3) the Committee on Financial Services of the House of Representatives.

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  • § 4017 National Flood Insurance Fund Amends

    42 U.S.C. § 4017

    The law today

    (a) Establishment; availability To carry out the flood insurance program authorized by this chapter, the Administrator shall establish in the Treasury of the United States a National Flood Insurance Fund (hereinafter referred to as the “fund”) which shall be an account separate from any other accounts or funds available to the Administrator and shall be available as described in subsection (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; (2) to pay reinsurance claims under the excess loss reinsurance coverage provided under section 4055 of this title; (3) to repay to the Secretary 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; and (4) to the extent approved in appropriations Acts, to pay any administrative expenses of the flood insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title); (5) for the purposes specified in subsection (d) under the conditions provided therein; (6) for carrying out the program under section 4022(b) of this title; (7) for transfers to the National Flood Mitigation Fund, but only to the extent provided in section 4104d(b)(1) of this title; and (8) for carrying out section 4104(f) of this title. (b) Credits to Fund The fund shall be credited with— (1) such funds borrowed in accordance with the authority provided in section 4016 of this title as may from time to time be deposited in the fund; (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; (3) such amounts as may be advanced to the fund from appropriations in order to maintain the fund in an operative condition adequate to meet its liabilities; (4) interest which may be earned on investments of the fund pursuant to subsection (c); (5) such sums as are required to be paid to the Administrator under section 4015(d) of this title; and (6) receipts from any other operations under this chapter (including premiums under the conditions specified in subsection (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 have been liquidated, and (2) any outstanding amounts which may have been advanced to the fund from appropriations authorized under section 4127(a)(2)(B) of this title have been credited to the appropriation from which advanced, with interest accrued at the rate prescribed under section 2414(e) of this title, as in effect immediately prior to August 1, 1968, the Administrator determines that the moneys of the fund are in excess of current needs, he may request the investment of such amounts as he deems advisable by the Secretary of the Treasury in obligations issued or guaranteed by the United States. (d) Availability of Fund if operation of program is carried out through facilities of Federal Government In the event the Administrator makes a determination in accordance with the provisions of section 4071 of this title that operation of the flood insurance program, in whole or in part, should be carried out through the facilities of the Federal Government, the fund shall be available for all purposes incident thereto, including— (1) cost incurred in the adjustment and payment of any claims for losses, and (2) payment of applicable operating costs set forth in the schedules prescribed under section 4018 of this title, for so long as the program is so carried out, and in such event any premiums paid shall be deposited by the Administrator to the credit of the fund. (e) Annual budget An annual business-type budget for the fund shall be prepared, transmitted to the Congress, considered, ...

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  • § 4018 Operating costs and allowances; definitions Amends

    42 U.S.C. § 4018

    The law today

    (a) The Administrator shall from time to time negotiate with appropriate representatives of the insurance industry for the purpose of establishing— (1) a current schedule of operating costs applicable both to risk-sharing insurance companies and other insurers and to insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations participating on other than a risk-sharing basis, and (2) a current schedule of operating allowances applicable to risk-sharing insurance companies and other insurers, 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)— (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 insurance coverage; (B) reasonable compensation payable for selling and servicing flood insurance coverage, or commissions or service fees paid to producers; (C) loss adjustment expenses; and (D) other direct, actual, and necessary expenses which the Administrator finds are incurred in connection with selling or servicing flood insurance coverage; and (2) the term “operating allowances” shall (without limiting such term) include amounts for profit and contingencies which the Administrator finds reasonable and necessary to carry out the purposes of this chapter.

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  • § 4019 Payment of claims Amends

    42 U.S.C. § 4019

    The law today

    (a) In general The Administrator is authorized to prescribe regulations establishing the general method or methods by which proved and approved claims for losses may be adjusted and paid for any damage to or loss of property which is covered by flood 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 insurance under this chapter, and on which construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial flood insurance rate map published by the Administrator under section 4101 of this title 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 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 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 insurance under this chapter, and on which construction or substantial improvement occurred after December 31, 1974, or after the effective date of an initial flood insurance rate map published by the Administrator under section 4101 of this title 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 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 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 may not deny payment for any damage to or loss of property which is covered by flood insurance to condominium owners who purchased such flood insurance separate and apart from the flood insurance purchased by the condominium association in which such owner is a member, based solely, or in any part, on the flood insurance coverage of the condominium association or others on the overall property owned by the condominium association.

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  • § 4020 Dissemination of flood insurance information Amends

    42 U.S.C. § 4020

    The law today

    The Administrator 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 or local agency or official, with regard to— (1) the flood insurance program, its coverage and objectives, and (2) estimated and chargeable flood insurance premium rates, including the basis for and differences between such rates in accordance with the provisions of section 4015 of this title.

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  • § 4022 State and local land use controls Amends

    42 U.S.C. § 4022 — at 4022(b)

    The law today

    (a) Requirement for participation in flood insurance program (1) In general After December 31, 1971, no new flood 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 finds are consistent with the comprehensive criteria for land management and use under section 4102 of this title. (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) may provide, at the discretion of the appropriate State or local authority, for the repair and restoration to predamaged conditions of an agricultural structure that— (i) is a repetitive loss structure; or (ii) has incurred flood-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 repaired or restored pursuant to subparagraph (A) shall pay chargeable premium rates established under section 4015 of this title at the estimated risk premium rates under section 4014(a)(1) of this title. If resources are available, the Administrator shall provide technical assistance and counseling, upon request of the owner of the structure, regarding wet flood-proofing and other flood damage reduction measures for agricultural structures. The Administrator shall not be required to make flood insurance coverage available for such an agricultural structure unless the structure is wet flood-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 waters to pass through the structure, as determined by the Administrator. (C) Prohibition on disaster relief Notwithstanding any other provision of law, any agricultural structure repaired or restored pursuant to subparagraph (A) shall not be eligible for disaster relief assistance under any program administered by the Administrator or any other Federal agency. (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; 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 shall carry out a community rating system program, under which communities participate voluntarily— (A) to provide incentives for measures that reduce the risk of flood or erosion damage that exceed the criteria set forth in section 4102 of this title and evaluate such measures; (B) to encourage adoption of more effective measures that protect natural and beneficial floodplain functions; (C) to encourage floodplain and erosion management; and (D) to promote the reduction of Federal flood insurance losses. (2) Incentives The program shall provide incentives in the form of credits on premium rates for flood insurance coverage in communities that the Administrator determines have adopted and enforced measures that reduce the risk of flood and erosion damage that exceed the criteria set forth in section 4102 of this title. In providing incentives under this paragraph, the Administrator may provide for credits to flood insurance premium rates in communities that the Administrator determines have implemented measures that protect natural and beneficial floodplain functions. (3) Credits The credits on premium rates for flood insurance coverage shall be based on the estimated reduction in flood and erosi...

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  • § 4026 Expiration of program Amends

    42 U.S.C. § 4026

    The law today

    No new contract for flood insurance under this chapter shall be entered into after September 30, 2026.

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  • § 4033 Designation of Flood Insurance Advocate Amends

    42 U.S.C. § 4033

    The law today

    (a) In general The Administrator shall designate a Flood Insurance Advocate to advocate for the fair treatment of policy holders under the National Flood Insurance Program and property owners in the mapping of flood hazards, the identification of risks from flood, and the implementation of measures to minimize the risk of flood. (b) Duties and responsibilities The duties and responsibilities of the Flood Insurance Advocate designated under subsection (a) shall be to— (1) educate property owners and policyholders under the National Flood Insurance Program on— (A) individual flood risks; (B) flood mitigation; (C) measures to reduce flood insurance rates through effective mitigation; (D) the flood insurance rate map review and amendment process; and (E) any changes in the flood insurance program as a result of any newly enacted laws (including this Act); (2) assist policy holders under the National Flood Insurance Program and property owners to understand the procedural requirements related to appealing preliminary flood insurance rate maps and implementing measures to mitigate evolving flood risks; (3) assist in the development of regional capacity to respond to individual constituent concerns about flood insurance rate map amendments and revisions; (4) coordinate outreach and education with local officials and community leaders in areas impacted by proposed flood insurance rate map amendments and revisions; and (5) aid potential policy holders under the National Flood Insurance Program in obtaining and verifying accurate and reliable flood insurance rate information when purchasing or renewing a flood insurance policy.

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  • § 4101 Identification of flood-prone areas Amends

    42 U.S.C. § 4101 — at 4101(a)

    The law today

    (a) Publication of information; establishment of flood-risk zones; estimates of flood-caused loss The Administrator is authorized to consult with, receive information from, and enter into any agreements or other arrangements with the Secretaries of the Army, the Interior, Agriculture, and Commerce, the Tennessee Valley Authority, and the heads of other Federal departments or agencies, on a reimbursement basis, or with the head of any State or local agency, or enter into contracts with any persons or private firms, in order that he may— (1) identify and publish information with respect to all flood plain areas, including coastal areas located in the United States, which has special flood hazards, within five years following August 1, 1968, and (2) establish or update flood-risk zone data in all such areas, and make estimates with respect to the rates of probable flood caused loss for the various flood risk zones for each of these areas until the date specified in section 4026 of this title. (b) Accelerated identification of flood-risk zones; authority of Administrator: grants, technical assistance, transactions, and payments The Administrator is directed to accelerate the identification of risk zones within flood-prone and mudslide-prone areas, as provided by subsection (a)(2) of this section, in order to make known the degree of hazard within each such zone at the earliest possible date. To accomplish this objective, the Administrator is authorized, without regard to subsections (a) and (b) of section 3324 of title 31 and section 6101 of title 41, to make grants, provide technical assistance, and enter into contracts, cooperative agreements, or other transactions, on such terms as he may deem appropriate, or consent to modifications 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 of Defense (through the Army Corps of Engineers), the Secretary of the Interior (through the United States Geological Survey), the Secretary of Agriculture (through the Soil Conservation Service), the Secretary of Commerce (through the National Oceanic and Atmospheric Administration), the head of the Tennessee Valley Authority, and the heads of all other Federal agencies engaged in the identification or delineation of flood-risk zones within the several States shall, in consultation with the Administrator, give the highest practicable priority in the allocation of available manpower and other available resources to the identification and mapping of flood hazard areas and flood-risk zones, in order to assist the Administrator to meet the deadline established by this section. (d) Plan for bringing communities with flood-risk zones into full program status The Administrator shall, not later than September 30, 1984, submit to the Congress a plan for bringing all communities containing flood-risk zones into full program 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 determines necessary, the Administrator shall assess the need to revise and update all floodplain areas and flood risk zones identified, delineated, or established under this section, based on an analysis of all natural hazards affecting flood risks. (f) Updating flood maps The Administrator shall revise and update any floodplain areas and flood-risk zones— (1) upon the determination of the Administrator, according to the assessment under subsection (e), that revision and updating are necessary for the areas and zones; or (2) upon the request from any State or local government stating that specific floodplain areas or flood-risk zones in the State or locality need revision or updating, if sufficient technical data justifying the request is submitted and the unit of government making th...

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  • § 4101a Technical Mapping Advisory Council Amends

    42 U.S.C. § 4101a

    The law today

    (a) Establishment There is established a council to be known as the Technical Mapping Advisory Council (in this section referred to as the “Council”). (b) Membership (1) In general The Council shall consist of— (A) the Administrator (or the designee thereof); (B) the Secretary of the Interior (or the designee thereof); (C) the Secretary of Agriculture (or the designee thereof); (D) the Under Secretary of Commerce for Oceans and Atmosphere (or the designee thereof); and (E) 16 additional members appointed by the Administrator or the designee of the Administrator, 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 hazard determination firms; (v) a representative of the United States Geological Survey; (vi) a representative of a recognized professional association or organization representing State geographic information; (vii) a representative of State national flood insurance coordination offices; (viii) a representative of the Corps of Engineers; (ix) a member of a recognized regional flood and storm water management organization; (x) 2 representatives of different State government agencies that have entered into cooperating technical partnerships with the Administrator and have demonstrated the capability to produce flood insurance rate maps; (xi) 2 representatives of different local government agencies that have entered into cooperating technical partnerships with the Administrator and have demonstrated the capability to produce flood 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 mitigation officer. (2) Qualifications Members of the Council 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 insurance rate maps. In appointing members under paragraph (1)(E), the Administrator shall, to the maximum extent practicable, ensure that the membership of the Council has a balance of Federal, State, local, tribal, and private members, and includes geographic diversity, including representation from areas with coastline on the Gulf of Mexico and other States containing areas identified by the Administrator as at high risk for flooding or as areas having special flood hazards. (c) Duties The Council shall— (1) recommend to the Administrator how to improve in a cost-effective manner the— (A) accuracy, general quality, ease of use, and distribution and dissemination of flood insurance rate maps and risk data; and (B) performance metrics and milestones required to effectively and efficiently map flood risk areas in the United States; (2) recommend to the Administrator mapping standards and guidelines for— (A) flood insurance rate maps; and (B) data accuracy, data quality, data currency, and data eligibility; (3) recommend to the Administrator how to maintain, on an ongoing basis, flood insurance rate maps and flood risk identification; (4) recommend procedures for delegating mapping activities to State and local mapping partners; (5) recommend to the Administrator and other Federal agencies participating in the Council— (A) methods for improving interagency and intergovernmental coordination on flood mapping and flood risk determination; and (B) a funding strategy to leverage and coordinate budgets and expenditures across Federal agencies; and (6) submit an annual report to the Administrator that contains— (A) a description of the activities of the Council; (B) an evaluation of the status and performance of flood insurance rate maps and mapping a...

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  • § 4101b National Flood Mapping Program Amends

    42 U.S.C. § 4101b — at 4101b(d)(1) and 4101b(b)

    The law today

    (a) Reviewing, updating, and maintaining maps The Administrator, in coordination with the Technical Mapping Advisory Council established under section 4101a of this title, shall establish an ongoing program under which the Administrator shall review, update, and maintain National Flood Insurance Program rate maps in accordance with this section. (b) Mapping (1) In general In carrying out the program established under subsection (a), the Administrator shall— (A) identify, review, update, maintain, and publish National Flood Insurance Program rate maps with respect to— (i) all populated areas and areas of possible population growth located within the 100-year floodplain; (ii) all populated areas and areas of possible population growth located within the 500-year floodplain; (iii) areas of residual risk, including areas that are protected by levees, dams, and other flood control structures; (iv) areas that could be inundated as a result of the failure of a levee, dam, or other flood control structure; (v) areas that are protected by non-structural flood mitigation features; and (vi) the level of protection provided by flood control structures and by non-structural flood mitigation features; (B) establish or update flood-risk zone data in all such areas, and make estimates with respect to the rates of probable flood caused loss for the various flood risk zones for each such area; and (C) use, in identifying, reviewing, updating, maintaining, or publishing any National Flood Insurance Program rate map required under this section or under the National Flood Insurance Act of 1968 (42 U.S.C. 4011 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 hazard 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 flood 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 elevations between adjacent political subdivisions. (3) Other inclusions In updating maps under this section, the Administrator shall include— (A) any relevant information on coastal inundation from— (i) an applicable inundation map of the Corps 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 Geological Survey on stream flows, watershed characteristics, and topography that is useful in the identification of flood hazard areas, as determined by the Administrator; (C) any relevant information on land subsidence, coastal erosion areas, changing lake levels, and other flood-related hazards; (D) any relevant information or data of the National Oceanic and Atmospheric Administration and the United States 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. (c) Standards In updating and maintaining maps under this section, the Administrator shall— (1) establish standards to— (A) ensure that maps are adequate for— (i) flood risk determinations; and (ii) use by State and local governments 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, in conjunction with State and local governments, in developing maps for communities with similar flood risks, as determined by the Adminis...

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  • § 4102 Criteria for land management and use Amends

    42 U.S.C. § 4102 — at 4102(d)(1)

    The law today

    (a) Studies and investigations The Administrator is authorized to carry out studies and investigations, utilizing to the maximum extent practicable the existing facilities and services of other Federal departments or agencies, and State and local governmental agencies, and any other organizations, with respect to the adequacy of State and local measures in flood-prone areas as to land management and use, flood control, flood zoning, and flood damage prevention, and may enter into any contracts, agreements, 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 plains of rivers or streams, floodway encroachment lines, and flood plain zoning, building codes, building permits, and subdivision or other building 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 shall from time to time develop comprehensive criteria designed to encourage, where necessary, the adoption of adequate State and local measures which, to the maximum extent feasible, will— (1) constrict the development of land which is exposed to flood damage where appropriate, (2) guide the development of proposed construction away from locations which are threatened by flood hazards, (3) assist in reducing damage caused by floods, and (4) otherwise improve the long-range land management and use of flood-prone areas, and he shall work closely with and provide any necessary technical assistance to State, 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 shall establish guidelines for property owners that— (1) provide alternative methods of mitigation, other than building elevation, to reduce flood risk to residential buildings that cannot be elevated due to their structural characteristics, including— (A) types of building materials; and (B) types of floodproofing; and (2) inform property owners about how the implementation of mitigation methods described in paragraph (1) may affect risk premium rates for flood insurance coverage under the National Flood Insurance Program.

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  • § 4104 Flood elevation determinations Amends

    42 U.S.C. § 4104 — at 4104(a)

    The law today

    (a) Publication or notification of proposed flood elevation determinations In establishing projected flood elevations and designating areas having special flood hazards for land use purposes with respect to any community pursuant to section 4102 of this title, the Administrator shall first propose such determinations and designations by publication for comment in the Federal Register, by direct notification to the chief executive officer of the community, 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 shall publish notification of flood elevation determinations and designations of areas having special flood hazards in a prominent local newspaper at least twice during the ten-day period following notification to the local government. During the ninety-day period following the second publication, any owner or lessee of real property within the community who believes his property rights to be adversely affected by the Administrator’s proposed determination may appeal such determination to the local government. The sole grounds for appeal shall be the possession of knowledge or information indicating that (1) the elevations being proposed by the Administrator with respect to an identified area having special flood hazards are scientifically or technically incorrect, or (2) the designation of an identified special flood hazard 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 shall be made to the chief executive officer of the community, or to such agency as he shall publicly designate, and shall set forth the data that tend to negate or contradict the Administrator’s finding in such form as the chief executive officer may specify. The community 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 by the community in its own name. Whether or not the community decides to appeal the Administrator’s determination, copies of individual appeals shall be sent to the Administrator as they are received by the community, and the community’s appeal or a copy of its decision not to appeal shall be filed with the Administrator not later than ninety days after the date of the second newspaper publication of the Administrator’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 does not receive an appeal from the community within the ninety days provided, he shall consolidate and review on their own merits, in accordance with the procedures set forth in subsection (e), the appeals filed within the community by private persons and shall make such modifications of his proposed determinations as may be appropriate, taking into account the written opinion, if any, issued by the community in not supporting such appeals. The Administrator’s decision shall be in written form, and copies thereof shall be sent both to the chief executive officer of the community 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 Up...

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  • § 4104c Mitigation assistance Amends

    42 U.S.C. § 4104c

    The law today

    (a) Authority The Administrator shall carry out a program to provide financial assistance to States and communities, using amounts made available from the National Flood Mitigation Fund under section 4104d of this title, for planning and carrying out activities designed to reduce the risk of flood damage to structures covered under contracts for flood insurance under this chapter. Such financial assistance shall be made available— (1) to States and communities in the form of grants under this section for carrying out mitigation activities; (2) to States and communities in the form of grants under this section for carrying out mitigation activities that reduce flood damage to severe repetitive loss structures; and (3) to property owners in the form of direct grants under this section for carrying out mitigation activities that reduce flood damage to individual structures for which 2 or more claim payments for losses have been made under flood insurance coverage under this chapter if the Administrator, after consultation with the State and community, determines that neither the State nor community 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 under this section for mitigation activities, a State or community shall develop, and have approved by the Administrator, a flood 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 under section 4102 of this title, provides for reduction of flood losses to structures for which contracts for flood 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 or community 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 and identified under paragraph (4). The Administrator shall provide assistance under this section to the extent amounts are available in the National Flood Mitigation Fund 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 may approve only mitigation activities that the Administrator determines— (i) are technically feasible and cost-effective; or (ii) will eliminate future payments from the National Flood Insurance Fund for severe repetitive loss structures through an acquisition or relocation activity. (B) Considerations In making a determination under subparagraph (A), the Administrator 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 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 hazards or other areas of flood risk; (C) acquisition by States and communities of properties (including public properties) located in areas having special flood hazards or other areas of flood risk and properties substantially damaged by flood, for public use, as the Administrator determines is consistent with sound land...

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  • § 4104d National Flood Mitigation Fund Repeals

    42 U.S.C. § 4104d

    The law today

    (a) Establishment and availability The Administrator shall establish in the Treasury of the United States a fund to be known as the National Flood Mitigation Fund, which shall be credited with amounts described in subsection (b) and shall be available, to the extent provided in appropriation Acts, for providing assistance under section 4104c of this title. (b) Credits The National Flood Mitigation Fund shall be credited with— (1) in each fiscal year, amounts from the National Flood Insurance Fund 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) of this section for assistance described in section 4104c(a)(1) of this title; (B) not more than $40,000,000 shall be available pursuant to subsection (a) of this section for assistance described in section 4104c(a)(2) of this title; and (C) not more than $10,000,000 shall be available pursuant to subsection (a) of this section for assistance described in section 4104c(a)(3) of this title; (2) any penalties collected under section 4012a(f) of this title; and (3) any amounts recaptured under section 4104c(e) of this title. (c) Administrative expenses The Administrator may use not more than 5 percent of amounts made available under subsection (b) to cover salaries, expenses, and other administrative costs incurred by the Administrator to make grants and provide assistance under section 4104c of this title. (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 insurance coverage under this chapter. (e) Continued availability and reallocation Any amounts made available pursuant to subparagraph (A), (B), or (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) pursuant to which such amounts were made available, unless the Administrator determines that reallocation of such unused amounts to meet demonstrated need for other mitigation activities under section 4104c of this title is in the best interest of the National Flood Insurance Fund. (f) Investment If the Administrator determines that the amounts in the National Flood Mitigation Fund are in excess of amounts needed under subsection (a), the Administrator may invest any excess amounts the Administrator determines advisable in interest-bearing obligations issued or guaranteed by the United States. (g) Report The Administrator 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 and any activities carried out with amounts from the Fund.

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  • § 4121 Definitions Amends

    42 U.S.C. § 4121 — at 4121(a)

    The law today

    (a) As used in this chapter— (1) the term “flood” shall have such meaning as may be prescribed in regulations of the Administrator, 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 Territory of the Pacific Islands; (3) the terms “insurance company”, “other insurer” and “insurance agent or broker” include any organization or person that is authorized to engage in the business of insurance under the laws of any State, subject to the reporting requirements of the Securities Exchange Act of 1934 [15 U.S.C. 78a et seq.] pursuant to section 13(a) or 15(d) of such Act (15 U.S.C. 78m(a) and 78o(d)), or authorized by the Administrator to assume reinsurance on risks insured by the flood insurance program; (4) the term “insurance adjustment organization” includes any organizations and persons engaged in the business of adjusting loss claims arising under insurance policies issued by any insurance company or other insurer; (5) the term “person” includes any individual or group of individuals, corporation, partnership, association, or any other organized group of persons, including State and local governments and agencies thereof; (6) the term “Administrator” means the Administrator of the Federal Emergency Management Agency; (7) the term “repetitive loss structure” means a structure covered by a contract for flood insurance that— (A) has incurred flood-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 event; and (B) at the time of the second incidence of flood-related damage, the contract for flood insurance contains increased cost of compliance coverage.1 (8) the term “Federal agency lender” means a Federal agency that makes direct loans secured by improved real estate or a mobile home, to the extent such agency acts in such capacity; (9) the term “Federal entity for lending regulation” means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the National Credit Union Administration, and the Farm Credit Administration, and with respect to a particular regulated lending institution means the entity primarily responsible for the supervision of the institution; (10) the term “improved real estate” means real estate upon which a building is located; (11) the term “lender” means a regulated lending institution or Federal agency lender; (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 waters, reduce erosion and sedimentation, and mitigate the effect of waves and storm surge from storms, and (ii) reduce flood related damage; and (B) ancillary beneficial functions, including maintenance of water quality and recharge of ground water, that reduce flood related damage; (13) the term “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; (14) the term “servicer” means the person 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 borro...

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Also cites: 5 U.S.C. § 552a, 5 U.S.C. § 553, 15 U.S.C. § 8201, 42 U.S.C. § 4002, 42 U.S.C. § 4003, 42 U.S.C. § 4017a, 42 U.S.C. § 4104a, 42 U.S.C. § 4104b, 42 U.S.C. § 5122, 42 U.S.C. § 5165, 42 U.S.C. § 5172, 42 U.S.C. § 9902

How this bill changes current law

6 changes Share ↗

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill extends the National Flood Insurance Program and modifies premium increase limitations while introducing a new affordability program.

  • 42 U.S.C. 4016(a)

    September 30, 2017 → September 30, 2022

    Extends the authority to issue notes and obligations by the Administrator through September 30, 2022.

  • 42 U.S.C. 4026

    September 30, 2017 → September 30, 2022

    Extends the expiration date for new flood insurance contracts to September 30, 2022.

  • 42 U.S.C. 4015(e)(1)

    18 percent → 15 percent

    Lowers the annual limitation on premium increases from 18 percent to 15 percent.

  • 42 U.S.C. 4015(e)(2)(A)

    5 percent → 6.5 percent

    Increases the minimum average rate increase for certain properties from 5 percent to 6.5 percent.

  • 42 U.S.C. 4015(e)(2)

    except that (A) during the 12-month period on the date of the enactment of the 21st Century Flood Reform Act this paragraph shall be applied by substituting `5 percent' for `6.5 percent', (B) during the 12-month period beginning upon the expiration of the period referred to in clause (A), this paragraph shall be applied by substituting `5.5 percent' for `6.5 percent', and (C) during the 12-month period beginning upon the expiration of the period referred to in clause (B), this paragraph shall be applied by substituting `6.0 percent' for `6.5 percent'

    Establishes temporary changes in the premium increase limits over three years after the enactment.

  • 42 U.S.C. 4011

    SEC. 1326. FLOOD INSURANCE AFFORDABILITY PROGRAM.

    Introduces a new program to provide financial assistance for low-income households to purchase flood insurance.

Action History

  1. Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

  2. Considered under the provisions of rule H. Res. 616. (consideration: CR H9209-9238)

  3. The resolution provides for one hour of general debate and closed rule for H.R. 2874. Also, the resolution provides for consideration of the conference report to accompany H.R. 2810.

  4. DEBATE - The House proceeded with one hour of debate on H.R. 2874.

  5. The previous question was ordered pursuant to the rule.

  6. Mr. Pascrell moved to recommit with instructions to the Committee on Financial Services. (text: CR H9236)

  7. DEBATE - The House proceeded with 10 minutes of debate on the motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment to establish the effective date to take place after the first day that the Administrator of the Federal Emergency Management Agency and the Inspector General of the Federal Emergency Management Agency have certified that final resolution has been reached on all claims for losses resulting from Hurricane Sandy in 2012 that were covered by flood insurance made available under the National Flood Insurance Program.

  8. On motion to recommit with instructions Failed by the Yeas and Nays: 190 - 236 (Roll no. 629).

  9. Passed/agreed to in House: On passage Passed by the Yeas and Nays: 237 - 189 (Roll no. 630).(text: CR H9209-9226)

  10. On passage Passed by the Yeas and Nays: 237 - 189 (Roll no. 630). (text: CR H9209-9226)

  11. Motion to reconsider laid on the table Agreed to without objection.

  12. Rules Committee Resolution H. Res. 616 Reported to House. The resolution provides for one hour of general debate and closed rule for H.R. 2874. Also, the resolution provides for consideration of the conference report to accompany H.R. 2810.

  13. Reported (Amended) by the Committee on Financial Services. H. Rept. 115-304.

  14. Reported (Amended) by the Committee on Financial Services. H. Rept. 115-304.

  15. Placed on the Union Calendar, Calendar No. 217.

  16. Committee Consideration and Mark-up Session Held.

  17. Ordered to be Reported (Amended) by the Yeas and Nays: 30 - 26.

  18. Introduced in House

  19. Introduced in House

  20. Referred to the House Committee on Financial Services.

Sponsors

Sponsorship breakdown

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Co-sponsors (0)

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Subjects

finance environment
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Frequently asked questions

What does HR 2874 do?
21st Century Flood Reform Act TITLE I--POLICYHOLDER PROTECTIONS AND INFORMATION (Sec. 101) This bill amends the National Flood Insurance Act of 1968 to extend the National Flood Insurance Program (NFIP) through FY2022. (Sec. 102) The bill changes annual minimums and limits on premium increases for specified policies subsidized through NFIP to: (1) increase the minimum from 5% to 5.5% for the second year after enactment, (2) increase the minimum from 5% to 6% for the third year, (3) increase the minimum from 5% to 6.5% for the fourth year and beyond, and (4) decrease the limit on annual premium increases from 18% to 15%. (Sec. 103) The Federal Emergency Management Agency (FEMA) must provide financial assistance through state programs for low income families to purchase NFIP insurance. (Sec. 104) FEMA must publish an annual explanation of flood insurance premiums and hold public meetings. (Sec. 105) FEMA must incorporate in premium rates the differences in coastal and riverine (inland) flood risk. (Sec. 106) FEMA's implementation of monthly premium payment schedules is exempted from rulemaking. FEMA may implement this schedule as a pilot program. The Government Accountability Office (GAO) must report on the costs associated with monthly payment of premiums. FEMA must annually report on these costs. (Sec. 107) FEMA must clearly communicate to policyholders their property's full flood risk, the history of flood claims on their property, and the effect of filing further claims. (Sec. 108) FEMA must make data on historical claims, required coverage, and previous damage available to the current owner of the property within 30 days of a request. (Sec. 109) State or local governments must require a seller or lessor to disclose to a purchaser or lessee any previous flood damage or flood insurance claims, and any obligation to purchase flood insurance. This requirement, whether by statute or regulation, must be adopted for the area to qualify for participation in NFIP. (Sec. 110) FEMA may create a community-wide flood insurance pilot program that covers all residential and non-residential properties and satisfies the mandatory purchase requirement. (Federal agencies that oversee mortgage lending must mandate the purchase of flood insurance for properties located in special flood hazard areas.) (Sec. 111) FEMA must incorporate the replacement cost value of a structure insured under NFIP in its consideration of chargeable premium rates. FEMA must conduct a study regarding risk rating redesign utilizing replacement cost and report the findings to Congress. (Sec. 112) The flood insurance premium for a residential property having four or fewer residences is limited to no more than $10,000 a year, subject to adjustments for future inflation. (Sec. 113) In determining premium rates, FEMA shall offer a rate reduction if policyholders implement specified flood damage mitigation methods. Mitigation techniques that qualify for a rate reduction include methods that can be utilized on a block or neighborhood scale, and the elevation of mechanical systems. (Sec. 114) FEMA shall conduct a study of the feasibility of providing coverage for individual units in cooperative housing projects. (Sec. 115) FEMA is directed to establish a pilot program for "Write Your Own" companies (companies that write and service federal standard flood insurance policies in their own name) to investigate preexisting structural conditions in properties that may result in a denial of a claim in the event of a flood loss under NFIP. (Sec. 116) The bill establishes a Federal Flood Insurance Advisory Committee. (Sec. 117) The bill directs federal lending regulation entities and FEMA to update interagency guidance regarding flood insurance. (Sec. 118) The bill directs the GAO to report on claims adjustment practices under NFIP. (Sec. 119) The bill directs the GAO to report on NFIP coverage of earth movement and subsidence caused by flooding. TITLE II--INCREASING CONSUMER CHOICE THROUGH PRIVATE MARKET DEVELOPMENT (Sec. 201) The bill revises the financial requirements that apply to flood insurance for home loans or loan guarantees by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Private flood insurance must meet any financial strength requirements set forth by Fannie Mae and Freddie Mac. Private flood insurance may include policies issued by nonadmitted insurers (including surplus lines insurance) as long as the insurer is eligible to provide insurance in the home state of the insured and complies with the laws and regulations of that state. (Currently, private flood insurance must provide coverage at least as broad as coverage provided by NFIP.) FEMA must consider any period during which a property was continuously covered by private flood insurance to be a period of continuous insurance coverage, including for the purposes of NFIP subsidies. Mutual aid societies may sell private flood insurance, subject to state law. The bill defines a mutual aid society as an organization of members who share a common set of ethical or religious beliefs. This coverage satisfies the mandatory purchase requirement. (Sec. 202) The required purchase of flood insurance is limited to residential properties (currently, the requirement applies to all types of property). (Sec. 203) FEMA must allow a Write Your Own company to sell private flood insurance. (Sec. 204) FEMA must provide data related to NFIP risks and premiums, including community-level data, through a publicly available data system. (Sec. 205) If an NFIP policyholder switches to private flood insurance during the NFIP coverage period, FEMA must refund any unused NFIP premium. Properties that have received a claim payment for that period or Increased Cost of Compliance mitigation assistance are not eligible for a refund. (Sec. 206) The GAO must report on the feasibility of reducing flood insurance premiums and eliminating the need for flood insurance coverage by authorizing flood damage savings accounts. (Sec. 207) If determined feasible by the GAO, FEMA must establish a demonstration program for flood damage savings accounts. TITLE III--MAPPING FAIRNESS (Sec. 301) In establishing premium rates, FEMA must use, in part, applicable flood insurance rate maps and other appropriate risk assessment models, data, and tools. (Sec. 302) FEMA denials of requests for updates to flood maps may be appealed. If an appeal is successful, FEMA must refund premiums and the policyholder may be permitted to cancel the policy. (Sec. 303) The bill revises the appeal period for FEMA flood elevation determinations and, if no appeals are filed, makes a determination final. (Sec. 304) This bill amends the Biggert-Waters Flood Insurance Reform Act of 2012 to revise the time period FEMA provides to communities for consultation regarding mapping changes. (Sec. 305) FEMA must consult with the Department of Defense, the U.S. Geological Survey, and the National Oceanic and Atmospheric Administration to obtain information relevant to flood insurance mapping. (Sec. 306) The bill revises the duties of the Technical Mapping Advisory Council and FEMA to provide for the development of alternative flood insurance rate maps by states and communities for use in NFIP. TITLE IV--PROTECTING CONSUMERS AND INDIVIDUALS THROUGH IMPROVED MITIGATION (Sec. 401) The bill revises the NFIP community rating program to require (currently, allows) FEMA to provide premium credits in communities that protect natural and beneficial floodplain functions. (Sec. 402) The bill requires a community that participates in NFIP and has been repeatedly flooded to: (1) assess the continuing risks to community areas repeatedly damaged by floods; and (2) develop and implement a publicly available, community-specific plan for mitigating continuing flood risks to such areas. FEMA must, upon request, provide a community with data to assist in preparation of the required plan. In making decisions with respect to awarding mitigation grants under the Act, FEMA may consider the extent to which a community has complied with these requirements and is working to remedy problems with repeatedly flooded areas. A community that does not comply with these requirements shall be subject to sanctions. (Sec. 403) FEMA must make additional coverage available under its Increased Cost of Compliance program. Currently, the program provides coverage to insure the cost of mitigating future flood damage to an NFIP-insured structure that has been substantially or repetitively damaged by floods. TITLE V--PROGRAM INTEGRITY (Sec. 501) The bill makes FEMA responsible for ensuring NFIP is financially sound. FEMA must commission an annual independent actuarial review of the financial status of NFIP. (Sec. 502) The premium surcharge amount on flood insurance is changed to: (1) increase annual surcharges for all primary residences, (2) reduce annual surcharges for certain non-owner occupied residential properties, and (3) increase annual surcharges for all other non-primary residences. (Sec. 503) FEMA must institute a uniform rate of assessment for all policyholders when increasing premiums. During the phase-in period of the required reserve ratio for the NFIP reserve fund, FEMA must increase the annual assessment by at least one percentage point if the required amount was not collected the previous year. (Sec. 504) This bill revises NFIP classifications of properties incurring multiple flood losses and coverage for properties that have incurred multiple flood losses. For properties with two flood insurance claims, FEMA must raise premiums by at least 10% annually if the premiums do not reflect full risk. For properties with three or more claims, FEMA must raise premiums by at least 15% annually if the premiums do not reflect full risk. Certain multiple loss properties are subject to minimum deductibles. FEMA must undertake efforts to validate the accuracy of claim history data. FEMA must deny coverage to a property owner that does not implement flood mitigation measures if the property is an extreme repetitive loss property (a property with cumulative claims that exceed 150% of the maximum coverage amount). Multiple loss properties are not eligible for subsidized premium rates that apply to properties newly mapped into areas with special flood hazards. FEMA must communicate to policyholders the availability of flood mitigation assistance and the effect on premiums of filing further claims for multiple-loss properties. The bill revises the Flood Mitigation Assistance program, including to make assistance available to additional multiple loss properties. (Sec. 505) This bill eliminates NFIP coverage for properties that prospectively exceed specified lifetime levels of claim payments. (Sec. 506) The allowance paid to Write Your Own companies is limited to 27.9% of the premium rate. FEMA must reduce the costs to companies participating in the Write Your Own program. (Sec. 507) This bill amends the Flood Disaster Protection Act of 1973 to increase penalties for violations of the mandatory purchase requirement. (Sec. 508) If a state allows all-perils policies to cover flood damage, property in that state is not subject to NFIP's mandatory purchase requirement. (Sec. 509) The bill raises the maximum loan amount for the small loan exception to NFIP's mandatory purchase requirement from $5,000 to $25,000, adjusted for inflation. A state or local government, or a private lender, may require flood insurance coverage for structures outside a special flood hazard area. (Sec. 510) FEMA must approve claims under NFIP not later than 120 days after a policyholder submits proof of loss. (Sec. 511) FEMA must annually cede a portion of the risk from NFIP to private reinsurance or capital markets. FEMA is also required to establish a probable maximum loss target for the program each fiscal year. (Sec. 512) The GAO must report on options for simplifying NFIP. (Sec. 513) The GAO must report on the mandatory purchase requirement. TITLE VI--ADMINISTRATIVE REFORMS (Sec. 601) Fraudulent or false statements in connection with a flood insurance claim under NFIP make a person subject to civil enforcement, penalties, and suspension from the program. The bill directs FEMA to refer evidence of this activity to the Department of Justice. (Sec. 602) FEMA is directed to revise the appeals process for policyholders seeking review of a flood insurance claim denial by their insurer. A decision shall be provided to the policyholder. (Sec. 603) Claims under NFIP must be approved or denied no later than 90 days after the claim is made, with provisions for an extension in extraordinary cases. (Sec. 604) The bill gives FEMA litigation oversight and strategy authority in litigation conducted by Write Your Own companies. (Sec. 605) FEMA may not hire in connection with NFIP any disbarred or suspended attorney. (Sec. 606) FEMA may rely upon technical assistance reports when adjusting claims made under NFIP only if the reports are final and meet professional standards. Technical assistance reports must be made available to policyholders upon request when used in claim determinations. (Sec. 607) Every policy issued under NFIP must include documents describing the type of loss covered, a summary of the costs of the policy, and an explanation of the policy’s parameters. (Sec. 608) FEMA is authorized to credit reserve funds to the National Flood Insurance Fund. (Sec. 609) FEMA is directed to ensure sufficient staff for the Flood Insurance Advocate. (Sec. 610) The Fair Labor Standards Act of 1938 is amended to exempt from maximum hours requirements any employee who: (1) adjusts or evaluates claims resulting from or relating to a major disaster for at least a minimum weekly amount during the two-year period after the disaster; and (2) is employed as an adjuster or evaluator by an employer not engaged in underwriting, selling, or marketing property, casualty, or liability insurance policies or contracts.
Who sponsors HR 2874?
HR 2874 is sponsored by Duffy, Sean P. (Republican).
What is the current status of HR 2874?
This bill died with 115th Congress. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HR 2874?
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