Flood Insurance Reform Priorities Act of 2010 - (Sec. 3) Amends the National Flood Insurance Act of 1968 (NFIA) to extend through FY2015 the National Flood Insurance Program and the Pilot Program for Mitigation of Severe Repetitive Loss Properties.
Repeals the termination date for (thus making permanent) the Pilot Program for Mitigation of Severe Repetitive Loss Properties.
(Sec. 4) Increases the maximum aggregate amount of insurance coverage: (1) from $250,000 to $335,000 for certain single- or multifamily dwelling residential structures; (2) from $100,000 to $135,000 for dwelling unit contents; and (3) from $500,000 to $670,000 for nonresidential properties.
Prescribes formulae for the maximum amount of insurance coverage for multi-unit, nonresidential rental properties containing more than one dwelling unit, including pre-Flood Insurance Rate Map (pre-FIRM) structures (structures neither constructed nor substantially improved after the later of December 31, 1974, or the effective date of the initial rate map published under NFIA for the area in which such a structure is located).
(Sec. 5) Provides a phase-in of actuarial rates for: (1) nonresidential properties, recently purchased pre-FIRM single-family properties used as principal residences, and non-primary residences; (2) severe repetitive loss properties; and (3) properties substantially damaged or substantially improved.
Requires the Administrator of the Federal Emergency Management Agency (FEMA) to increase the chargeable premium rates for such properties annually if they are less than the applicable estimated risk premium rate for the area in which the property is located.
(Sec. 6) Amends the Flood Disaster Protection Act of 1973 (FDPA) to delay, for a five-year period, the effective date for the mandatory purchase of flood insurance for certain new flood hazard areas not previously designated as having special flood hazards (with "100-year floodplains").
Makes the preferred risk rate method premium available for flood insurance coverage for properties located in such areas during such five-year time period.
Prohibits this Act from being construed as authorizing or requiring any payment or refund for flood insurance that covered any period during which it was not required for the property concerned.
(Sec. 7) Amends NFIA to set forth a five-year phase-in of flood insurance rates for newly mapped areas not previously designated as having special flood hazards.
(Sec. 8) Increases the annual limitation on premium increases from 10% to 20% of the average of the risk premium rates for properties within the risk classification upon the commencement of any 12-month period.
(Sec. 9) Makes any community that has made adequate progress on reconstruction or improvement of a flood protection system eligible for flood insurance premium rates not exceeding those which would be applicable if the flood protection system had been completed.
Directs FEMA to implement this Act in a manner that will not materially weaken the financial position of the national flood insurance program or increase the risk of financial liability to federal taxpayers.
(Sec. 10) Requires flood insurance coverage to be made available at a specified discount for a property that the FEMA Administrator determines is protected by a flood-protection system that does not provide protection against a 100-year frequency flood.
(Sec. 11) States that, upon completion of certain flood protection systems, a covered area: (1) shall not be considered as having special flood hazards; and (2) shall be eligible for flood insurance. Requires flood insurance rate maps to indicate, for each covered area, its status regarding special flood hazards and flood insurance eligibility.
(Sec. 12) Prohibits the extension of flood insurance coverage to any prospective insured at a rate less than the applicable estimated risk premium rates for the area (or subdivision) for any policy that has lapsed as a result of the policyholder's deliberate choice.
(Sec. 13) Amends FDPA to instruct FEMA to notify residents annually of: (1) the fact that they reside in an area having special flood hazards; (2) the mandatory purchase of flood insurance coverage of properties in such areas; and (3) a general estimate of what similar homeowners in similar areas typically pay for flood insurance coverage.
(Sec. 14) Directs the FEMA Administrator to submit to Congress a community outreach plan for updating floodplain areas and flood-risk zones.
(Sec. 15) Amends NFIA to require the FEMA Administrator to notify appropriate Members of Congress regarding each state and congressional district affected by a revision or update of a floodplain area or flood-risk zone, including other significant related action.
(Sec. 16) Amends NFIA to require each renewal or new contract for flood insurance coverage for a residential property to provide at least $1,000 aggregate liability per dwelling unit for any necessary increases in living expenses incurred by the insured when losses from a flood make the residence unfit to live in. Limits such coverage to chargeable rates that are not less than the estimated premium rates.
Requires optional coverage for additional living expenses, in the case of residential property, and for business interruption, in the case of commercial or other residential property, including multifamily rental property, to be made available to every applicant and every insured upon renewal.
(Sec. 17) Waives the 30-day delay (waiting period) for the effective date of flood insurance contracts when the initial purchase of flood insurance coverage is connected with the purchase or other transfer of the property to be covered, regardless of whether a loan is involved in the purchase or transfer transaction. Limits such waiver, however, to instances when the initial purchase of coverage is made within 30 days after the purchase or other transfer of the property.
Revises the current waiver of the 30-day waiting period for the initial purchase of flood insurance coverage in connection with the making, increasing, extension, or renewal of a loan to limit it to instances when the purchase is made within 30 days after the loan transaction.
(Sec. 18) Sets forth minimum deductibles for claims for flood damage to pre-FIRM properties of: (1) $1,500 for insurance coverage of $100,000 or less; and (2) $2,000 for coverage greater than $100,000.
Sets minimum deductibles for claims on post-FIRM properties at: (1) $750 for insurance coverage of $100,000 or less; and (2) $1,000 for coverage greater than $100,000.
(Sec. 19) Requires certain flood insurance regulations to permit policyholders to pay insurance premiums on residential properties in monthly installments.
(Sec. 20) Amends FDPA to require a lender or a servicer to terminate force-placed insurance within 15 days of confirmation of a borrower's existing flood insurance coverage.
(Sec. 21) Subjects lenders to civil monetary penalties for requiring, in connection with any loan, the purchase of flood insurance coverage under NFIA, or for purchasing such coverage, in an amount exceeding the minimum mandatory amount.
Increases from $350 to $2,000 the maximum civil monetary penalty per violation against a regulated lending institution or enterprise. Increases from $100,000 to $1 million the total amount of such penalties assessed against any single regulated lending institution or enterprise during any calendar year, unless the total of such penalties in any three (or more) of the immediately preceding five calendar years was $1 million (in which case there is no limit).
Prohibits imposition of any civil penalty on a regulated lending institution or enterprise that has made a good faith effort to comply with FDPA requirements or for any non-material violation of such requirements.
(Sec. 22) Amends NFIA to require the FEMA Administrator, upon entering into a flood insurance contract, to disclose to a tenant: (1) whether the property is located in an area having special flood hazards; (2) that flood insurance coverage is available under the national flood insurance program for contents of the unit or structure leased by the tenant; (3) the maximum amount of contents coverage; and (4) where to obtain information regarding such coverage, including a telephone number, mailing address, and Internet site of the FEMA Administrator where such information is available.
(Sec. 23) Authorizes the FEMA Administrator to make direct grants for mitigation actions to owners of repetitive claims properties for which two or more claim payments for losses have been made under the flood insurance coverage.
(Sec. 24) Authorizes the FEMA Administrator to make grants to local governmental agencies responsible for floodplain management activities in communities that participate in the national flood insurance program to implement outreach activities that encourage the purchase of flood insurance protection, including coordination with real estate agents to facilitate purchase of coverage and to increase awareness of flood risk reduction.
Requires a grantee agency to report to FEMA, and the FEMA Administrator to report annually to Congress, on the effect of its activities upon the retention or acquisition of flood insurance coverage.
Authorizes appropriations for FY2011-FY2015.
(Sec. 25) States that certain swimming pool enclosures do not affect coverage or the ability to receive coverage if the pool is enclosed with non-supporting breakaway walls.
(Sec. 26) Prescribes requirements for Write-Your-Own Insurers, including a prohibition against excluding wind damage coverage from windstorm insurance solely because flooding has also contributed to damage to the insured property.
(Sec. 27) Amends the Real Estate Settlement Procedures Act of 1974 (RESPA) with respect to special information booklets on real estate settlement services prepared by the Secretary of Housing and Urban Development (HUD) for lenders to give persons borrowing money to finance the purchase of residential real estate.
Requires each good faith estimate a lender must include with the booklet to state conspicuously: (1) that flood insurance coverage for residential real estate is available under the national flood insurance program whether or not the real estate is located in an area having special flood hazards, and that a home owner or purchaser should contact the national flood insurance program to obtain such coverage; (2) a telephone number and an Internet location by which a home owner or purchaser can contact the national flood insurance program; and (3) that the escrowing of flood insurance payments is a requirement for many loans, and may be a convenient and available option with respect to other loans.
(Sec. 28) Authorizes the FEMA Administrator to employ additional staff, including for the national flood insurance program.
(Sec. 29) Directs HUD and FEMA to develop and implement jointly a plan to verify that persons receiving certain funds under the Homeowner Grant Assistance Program of the state of Mississippi, or the Road Home Program of the state of Louisiana from specified allocations are maintaining flood insurance on the property for which they receive such funds.
(Sec. 30) Amends NFIA to establish the Office of the Flood Insurance Advocate and to enumerate Office functions, including: (1) assisting insureds under the national flood insurance program in resolving problems with FEMA; (2) assisting communities and homeowners with interpreting, implementing, and appealing floodplain maps and floodplain map determinations; and (3) reporting annually to Congress.
(Sec. 31) Requires the FEMA Administrator to: (1) reexamine the designation of any areas bordering or abutting an area redesignated, after a map revision, as not having special flood hazards if those other areas are located within a special flood hazard area; and (2) inform the pertinent communities and residents of the results of such reexamination.
(Sec. 32) Requires the FEMA Administrator to update floodplain areas, flood risk zones, and attendant flood insurance maps for areas protected by an improved levee system in order to make inapplicable to such areas the mandatory purchase of flood insurance.
(Sec. 33) Requires the FEMA Administrator to notify local television and radio stations of certain proposed flood elevation determinations for any area in a community that has not, as of the date of the enactment of this Act, been issued a Letter of Final Determination under the flood insurance map modernization process.
(Sec. 34) Makes eligible for flood mitigation assistance the demolition and rebuilding of properties to at least base flood elevation or greater, if required by any local ordinance.
Expresses the sense of Congress that the FEMA Administrator is authorized to consider property demolition and rebuilding as eligible activities under the Flood Mitigation Assistance Program.
(Sec. 35) Directs the Comptroller General to study and report to Congress on: (1) the impact, effectiveness, feasibility, and basis under the Constitution for amending FDPA to extend mandatory flood insurance coverage purchase requirements to property located in any area having special flood hazards and which secures repayments of certain loans; and (2) methods, practices, and incentives that would increase the extent to which low-income families, and families residing in rural communities or on Indian reservations, who own residential properties located within special flood hazard areas would purchase flood insurance coverage under the national flood insurance program.
(Sec. 37) Directs FEMA to study and report to Congress on the impact, effectiveness, and feasibility of amending NFIA to include widely used and nationally recognized building codes as part of the floodplain management criteria.
(Sec. 38) Requires FEMA to study and report to Congress on: (1) a plan to repay certain flood insurance debt within 10 years, including amounts previously borrowed but not yet repaid; (2) the impacts of the National Flood Insurance Program on harbor areas that are working waterfronts; and (3) the impacts upon the financial soundness of the national flood insurance program of significant flooding events and subsequent revisions of hazard modeling and mapping since January 1, 2000.
(Sec. 41) Directs the Comptroller General to study and report to Congress on the impact of implementing provisions regarding pre-FIRM properties, including the impact on the program participation rate among owners, renters, and tenants of nonprimary residences or commercial nonresidential properties.
(Sec. (42) Directs the FEMA Administrator to: (1) study and report to Congress on the impacts of this Act upon the financial soundness of the national flood insurance program; and (2) issue an interim final rule to implement the amendments made by this Act within 18 months after the date of the enactment, or report monthly on the status of the rulemakings and the reasons for noncompliance with the statutory deadlines.
(Sec. 43) Directs the FEMA Administrator to reimburse certain property owners for costs incurred in obtaining letters of map amendment.
(Sec. 45) Directs the Comptroller General to study and report to Congress on: (1) ways that the private insurance market can contribute to insuring against flood damage; (2) the impact on the National Flood Insurance Program if communities decide not to participate in the Program; and (3) the feasibility of regionalizing the National Flood Insurance Program and ensuring that there is no cross-subsidization between regions under such Program.
(Sec. 46) Requires that all funds authorized under this Act, or any of its amendments, be expended in a manner consistent with the manual on Standards of Ethical Conduct for Employees of the Executive Branch.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5114 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5114
To extend the authorization for the national flood insurance program,
to identify priorities essential to reform and ongoing stable
functioning of the program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 22, 2010
Ms. Waters (for herself, Mr. Frank of Massachusetts, Mr. Kanjorski, Mr.
Costello, Ms. Matsui, Mr. Thompson of Mississippi, Mr. Patrick J.
Murphy of Pennsylvania, Mrs. Capps, Mr. Cardoza, Mr. Hare, Mr. Al Green
of Texas, and Ms. Linda T. Sanchez of California) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To extend the authorization for the national flood insurance program,
to identify priorities essential to reform and ongoing stable
functioning of the program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Flood Insurance
Reform Priorities Act of 2010''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Extension of national flood insurance program.
Sec. 4. Maximum coverage limits.
Sec. 5. Phase-in of actuarial rates for nonresidential properties and
non-primary residences.
Sec. 6. 5-year delay in effective date of mandatory purchase
requirement for new flood hazard areas.
Sec. 7. 5-year phase-in of flood insurance rates for newly mapped
areas.
Sec. 8. Increase in annual limitation on premium increases.
Sec. 9. Consideration of construction, reconstruction, and improvement
of flood protection systems in
determination of flood insurance rates.
Sec. 10. Treatment of certain flood protection projects.
Sec. 11. Exception to waiting period for effective date of policies.
Sec. 12. Enforcement.
Sec. 13. Notification to tenants of availability of contents insurance.
Sec. 14. Flood insurance outreach.
Sec. 15. Notice of availability of flood insurance and escrow in RESPA
good faith estimate.
Sec. 16. Authorization of additional FEMA staff.
Sec. 17. Plan to verify maintenance of flood insurance on Mississippi
and Louisiana properties receiving
emergency supplemental funds.
Sec. 18. Flood insurance advocate.
Sec. 19. Study regarding mandatory purchase requirement for natural
100-year floodplain and non-federally
related loans.
Sec. 20. Study of methods to increase flood insurance program
participation by low-income families.
Sec. 21. Report on inclusion of building codes in floodplain management
criteria.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
(1) since the enactment of National Flood Insurance Act of
1968, the national flood insurance program has been the primary
source of reliable, reasonably priced, flood insurance coverage
for millions of American homes and businesses;
(2) today over 5,500,000 homes and businesses in the United
States rely on the national flood insurance program to provide
a degree of financial security;
(3) although participation in the national flood insurance
program has, in the past, largely been limited to properties
required to participate in the program because of the program's
mandatory purchase requirement for properties in special flood
hazard areas with loans from federally regulated lenders,
recent annual and extraordinary flooding has resulted in the
program enjoying its highest voluntary participation since the
establishment of the mandatory flood insurance purchase
requirement;
(4) several years of below-average flood claim losses and
increased voluntary participation in the national flood
insurance program have allowed the program to fully service the
debt incurred following Hurricanes Katrina and Rita and allowed
the program to pay $500,000,000 of the principal of that
outstanding debt;
(5) though significant reforms are needed to further
improve the financial outlook of the national flood insurance
program, long-term and reliable authorization of the program is
an essential element to stabilizing the already fragile United
States housing market;
(6) increased flooding in areas outside designated special
flood hazard areas prompted the Executive and the Congress in
2002 to begin calling for the national flood insurance program
to develop and disseminate revised, updated flood insurance
rate maps that reflect the real risk of flooding for properties
not previously identified as being located within a special
flood hazard area;
(7) dissemination of accurate, up-to-date, flood-risk
information remains a primary goal of the national flood
insurance program and such information should be disseminated
as soon as such information is collected and available;
(8) communities should be encouraged to make their
residents aware of updated flood-risk data while communities
are assessing and incorporating updated flood-risk data into
long-term community planning;
(9) the maximum coverage limits for flood insurance
policies should be increased to reflect inflation and the
increased cost of housing; and
(10) phasing out flood insurance premium subsidies
currently extended to vacation homes, second homes, and
commercial properties would result in significant average
annual savings to the national flood insurance program.
(b) Purposes.--The purposes of this Act are--
(1) to identify priorities essential to the reform and
ongoing stable functioning of the national flood insurance
program;
(2) to increase incentives for homeowners and communities
to participate in the national flood insurance program and to
improve oversight to ensure better accountability of the
national flood insurance program and the Federal Emergency
Management Agency; and
(3) to increase awareness of homeowners of flood risks and
improve the information regarding such risks provided to
homeowners.
SEC. 3. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.
(a) Program Extension.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking
``September 30, 2008'' and inserting ``September 30, 2015''.
(b) Financing.--Section 1309(a) of such Act (42 U.S.C. 4016(a)) is
amended by striking ``September 30, 2008'' and inserting ``September
30, 2015''.
(c) Extension of Pilot Program for Mitigation of Severe Repetitive
Loss Properties.--Section 1361A of the National Flood Insurance Act of
1968 (42 U.S.C. 4102a) is amended--
(1) in subsection (k)(1), by striking ``2005, 2006, 2007,
2008, and 2009'' and inserting ``2011, 2012, 2013, 2014, and
2015''; and
(2) by striking subsection (l).
SEC. 4. MAXIMUM COVERAGE LIMITS.
Subsection (b) of section 1306 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4013(b)) is amended--
(1) in paragraph (2), by striking ``$250,000'' and
inserting ``$335,000'';
(2) in paragraph (3), by striking ``$100,000'' and
inserting ``$135,000''; and
(3) in paragraph (4)--
(A) by striking ``$500,000'' each place such term
appears and inserting ``$670,000''; and
(B) by inserting before ``; and'' the following:
``; except that, in the case of any nonresidential
property that is a structure containing more than one
dwelling unit that is made available for occupancy by
rental (notwithstanding the provisions applicable to
the determination of the risk premium rate for such
property), additional flood insurance in excess of such
limits 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 that is equal to the
product of the total number of such rental dwelling
units in such property and the maximum coverage limit
per dwelling unit specified in paragraph (2); except
that in the case of any such multi-unit, nonresidential
rental property that is a pre-FIRM structure (as such
term is defined in section 578(b) of the National Flood
Insurance Reform Act of 1994 (42 U.S.C. 4014 note)),
the risk premium rate for the first $500,000 of
coverage shall be determined in accordance with section
1307(a)(2) and the risk premium rate for any coverage
in excess of such amount shall be determined in
accordance with section 1307(a)(1)''.
SEC. 5. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDENTIAL PROPERTIES AND
NON-PRIMARY RESIDENCES.
(a) In General.--Section 1308(c) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4015(c)) is amended--
(1) by redesignating paragraph (2) as paragraph (4); and
(2) by inserting after paragraph (1) the following new
paragraphs:
``(2) Nonresidential properties.--Any nonresidential
property, which term shall not include any multifamily rental
property that consists of four or more dwelling units.
``(3) Non-primary residences.--Any residential property
that is not the primary residence of any individual, including
the owner of the property or any other individual who resides
in the property as a tenant.''.
(b) Technical Amendments.--Section 1308 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015) is amended--
(1) in subsection (c)--
(A) in the matter preceding paragraph (1), by
striking ``the limitations provided under paragraphs
(1) and (2)'' and inserting ``subsection (e)''; and
(B) in paragraph (1), by striking ``, except'' and
all that follows through ``subsection (e)''; and
(2) in subsection (e), by striking ``paragraph (2) or (3)''
and inserting ``paragraph (4)''.
(c) Effective Date and Transition.--
(1) Effective date.--The amendments made by subsections (a)
and (b) shall apply beginning upon the expiration of the 9-
month period that begins on the date of the enactment of this
Act, except as provided in paragraph (2) of this subsection.
(2) Transition for properties covered by flood insurance
upon effective date.--
(A) Increase of rates over time.--In the case of
any property described in paragraph (2) or (3) of
section 1308(c) of the National Flood Insurance Act of
1968, as amended by subsection (a) of this section,
that, as of the effective date under paragraph (1) of
this subsection, is covered under a policy for flood
insurance made available under the national flood
insurance program for which the chargeable premium
rates are less than the applicable estimated risk
premium rate under section 1307(a)(1) for the area in
which the property is located, the Director of the
Federal Emergency Management Agency shall increase the
chargeable premium rates for such property over time to
such applicable estimated risk premium rate under
section 1307(a)(1).
(B) Annual increase.--Such increase shall be made
by increasing the chargeable premium rates for the
property (after application of any increase in the
premium rates otherwise applicable to such property),
once during the 12-month period that begins upon the
effective date under paragraph (1) of this subsection
and once every 12 months thereafter until such increase
is accomplished, by 20 percent (or such lesser amount
as may be necessary so that the chargeable rate does
not exceed such applicable estimated risk premium rate
or to comply with subparagraph (C)).
(C) Properties subject to phase-in and annual
increases.--In the case of any pre-FIRM property (as
such term is defined in section 578(b) of the National
Flood Insurance Reform Act of 1974), the aggregate
increase, during any 12-month period, in the chargeable
premium rate for the property that is attributable to
this paragraph or to an increase described in section
1308(e) of the National Flood Insurance Act of 1968 may
not exceed 20 percent.
(D) Full actuarial rates.--The provisions of
paragraphs (2) and (3) of such section 1308(c) shall
apply to such a property upon the accomplishment of the
increase under this paragraph and thereafter.
SEC. 6. 5-YEAR DELAY IN EFFECTIVE DATE OF MANDATORY PURCHASE
REQUIREMENT FOR NEW FLOOD HAZARD AREAS.
(a) In General.--Section 102 of the Flood Disaster Protection Act
of 1973 (42 U.S.C. 4012a) is amended by adding at the end the following
new subsection:
``(i) Delayed Effective Date of Mandatory Purchase Requirement for
New Flood Hazard Areas.--
``(1) In general.--In the case of any area that was not
previously designated as an area having special flood hazards
and that, pursuant to any issuance, revision, updating, or
other change in flood insurance maps, becomes designated as an
area having special flood hazards, if each State and local
government having jurisdiction over any portion of the
geographic area has complied with paragraph (2), such
designation shall not take effect for purposes of subsection
(a), (b), or (e) of this section, or section 202(a) of this
Act, until the expiration of the 5-year period beginning upon
the date that such maps, as issued, revised, update, or
otherwise changed, become effective.
``(2) Notice requirements.--A State or local government
having shall be considered to have complied with this paragraph
with respect to any geographic area described in paragraph (1)
only if the State or local government has, before the effective
date of the issued, revised, updated, or changed maps, and in
accordance with such standards as shall be established by the
Director--
``(A) developed an evacuation plan to be
implemented in the event of flooding in such portion of
the geographic area; and
``(B) developed and implemented an outreach and
communication plan to advise occupants in such portion
of the geographic area of potential flood risks, the
opportunity to purchase flood insurance, and the
consequences of failure to purchase flood insurance.
``(3) Rule of construction.--Nothing in paragraph (1) may
be construed to affect the applicability of a designation of
any area as an area having special flood hazards for purposes
of the availability of flood insurance coverage, criteria for
land management and use, notification of flood hazards,
eligibility for mitigation assistance, or any other purpose or
provision not specifically referred to in paragraph (1).''.
(b) Conforming Amendment.--The second sentence of subsection (h) of
section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C.
4101(h)) is amended by striking ``Such'' and inserting ``Except for
notice regarding a change described in section 102(i)(1) of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a(i)(1)), such''.
SEC. 7. 5-YEAR PHASE-IN OF FLOOD INSURANCE RATES FOR NEWLY MAPPED
AREAS.
Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
4015), as amended by the preceding provisions of this Act, is further
amended--
(1) in subsection (a), in the matter preceding paragraph
(1), by inserting ``or notice'' after ``prescribe by
regulation'';
(2) in subsection (c), by inserting ``and subsection (g)''
before the first comma; and
(3) by adding at the end the following new subsection:
``(g) 5-Year Phase-In of Flood Insurance Rates for Newly Mapped
Areas.--Notwithstanding any other provision of law relating to
chargeable risk premium rates for flood insurance coverage under this
title, in the case of any area that was not previously designated as an
area having special flood hazards and that, pursuant to any issuance,
revision, updating, or other change in flood insurance maps, becomes
designated as such an area, during the 5-year period that begins upon
the expiration of the period referred to in section 102(i)(1) of the
Flood Disaster Protection Act of 1973 with respect to such area, the
chargeable premium rate for flood insurance under this title with
respect to any property that is located within such area shall be--
``(1) for the first year of such 5-year period, 20 percent
of the chargeable risk premium rate otherwise applicable under
this title to the property;
``(2) for the second year of such 5-year period, 40 percent
of the chargeable risk premium rate otherwise applicable under
this title to the property;
``(3) for the third year of such 5-year period, 60 percent
of the chargeable risk premium rate otherwise applicable under
this title to the property;
``(4) for the fourth year of such 5-year period, 80 percent
of the chargeable risk premium rate otherwise applicable under
this title to the property; and
``(5) for the fifth year of such 5-year period, 100 percent
of the chargeable risk premium rate otherwise applicable under
this title to the property.''.
SEC. 8. INCREASE IN ANNUAL LIMITATION ON PREMIUM INCREASES.
Section 1308(e) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(e)) is amended by striking ``10 percent'' and inserting
``20 percent''.
SEC. 9. CONSIDERATION OF CONSTRUCTION, RECONSTRUCTION, AND IMPROVEMENT
OF FLOOD PROTECTION SYSTEMS IN DETERMINATION OF FLOOD
INSURANCE RATES.
(a) In General.--Section 1307 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4014) is amended--
(1) in subsection (e)--
(A) in the first sentence, by striking
``construction of a flood protection system'' and
inserting ``construction, reconstruction, or
improvement of a flood protection system (without
respect to the level of Federal investment or
participation)''; and
(B) in the second sentence--
(i) by striking ``construction of a flood
protection system'' and inserting
``construction, reconstruction, or improvement
of a flood protection system''; and
(ii) by inserting ``based on the present
value of the completed system'' after ``has
been expended''; and
(2) in subsection (f)--
(A) in the first sentence in the matter preceding
paragraph (1), by inserting ``(without respect to the
level of Federal investment or participation)'' before
the period at the end;
(B) in the third sentence in the matter preceding
paragraph (1), by inserting ``, whether coastal or
riverine,'' after ``special flood hazard''; and
(C) in paragraph (1), by striking ``a Federal
agency in consultation with the local project sponsor''
and inserting ``the entity or entities that own,
operate, maintain, or repair such system''.
(b) Regulations.--Not later than 90 days after the date of the
enactment of this Act, the Administrator of the Federal Emergency
Management Agency shall promulgate regulations to carry out the
amendments made by subsection (a). Section 5 may not be construed to
annul, alter, affect, authorize any waiver of, or establish any
exception to, the requirement under the preceding sentence.
(c) Implementation.--The Administrator of the Federal Emergency
Management Agency shall implement this section and the amendments made
by this section in a manner that will not materially weaken the
financial position of the national flood insurance program or increase
the risk of financial liability to Federal taxpayers.
SEC. 10. TREATMENT OF CERTAIN FLOOD PROTECTION PROJECTS.
Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
4015), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new subsection:
``(h) Treatment of Certain Flood Protection Projects.--
``(1) Inapplicability of mandatory purchase requirement;
premium rates.--Notwithstanding any other provision of law,
upon full completion, as designed, of a flood protection system
that was intended to provide flood protection with respect to a
covered area, such covered area--
``(A) shall not be considered to be an area having
special flood hazards for purposes of this Act or
subsections (a), (b), or (e) of section 102, or section
202(a) of the Flood Disaster Protection Act of 1973;
and
``(B) shall be eligible for flood insurance under
this Act, if and to the extent that such area is
eligible for such insurance under the other provisions
of this Act, at premium rates not exceeding those that
would be applicable under this section if the flood
protection system referred to in paragraph (2) for such
area had been completed and accredited as providing
protection from floods at the level that the system was
designed to provide (before construction,
reconstruction, or improvement of the system, as
applicable, began).
The flood insurance rate maps shall indicate, for each covered
area, the status of the area under subparagraphs (A) and (B).
``(2) Covered area.--For purposes of this subsection, a
covered area is an area that was intended to be protected by a
flood protection system--
``(A)(i) for which, as of April 15, 2010--
``(I) construction, reconstruction, or
improvement has not been completed;
``(II) adequate progress, within the
meaning of section 1307(e), has been made on
such construction, reconstruction, or
improvement; and
``(III) is in an area having special flood
hazards; or
``(ii) for which, as of such date--
``(I) construction, reconstruction, or
improvement has been completed;
``(II) a determination regarding
accreditation has not been made; and
``(III) is in an area having special flood
hazards;
``(B) that was designed to provide protection for
at least the 100-year frequency flood; and
``(C) that has been determined, pursuant to
waterflow data or other scientific information of a
Federal agency obtained after, or that has changed
since, commencement of construction, reconstruction, or
improvement, will not provide protection from floods at
the level referred to in subparagraph (B).''.
SEC. 11. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE DATE OF POLICIES.
Section 1306(c)(2)(A) of the National Flood Insurance Act of 1968
(42 U.S.C. 4013(c)(2)(A)) is amended by inserting before the semicolon
the following: ``or is in connection with the purchase or other
transfer of the property for which the coverage is provided (regardless
of whether a loan is involved in the purchase or transfer transaction),
but only when such initial purchase of coverage is made not later 30
days after such making, increasing, extension, or renewal of the loan
or not later than 30 days after such purchase or other transfer of the
property, as applicable''.
SEC. 12. ENFORCEMENT.
Section 102(f) of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(f)) is amended--
(1) in paragraph (5)--
(A) in the first sentence, by striking ``$350'' and
inserting ``$2,000''; and
(B) in the last sentence, by striking ``$100,000''
and inserting ``$1,000,000; except that such limitation
shall not apply to a regulated lending institution or
enterprise for a calendar year if, in any three (or
more) of the five calendar years immediately preceding
such calendar year, the total amount of penalties
assessed under this subsection against such lending
institution or enterprise was $1,000,000''; and
(2) in paragraph (6), by adding after the period at the end
the following: ``No penalty may be imposed under this
subsection on a regulated lending institution or enterprise
that has made a good faith effort to comply with the
requirements of the provisions referred to in paragraph (2) or
for any non-material violation of such requirements.''.
SEC. 13. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS INSURANCE.
The National Flood Insurance Act of 1968 is amended by inserting
after section 1308 (42 U.S.C. 4015) the following new section:
``SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS
INSURANCE.
``(a) In General.--The Director shall, upon entering into a
contract for flood insurance coverage under this title for any
property--
``(1) provide to the insured sufficient copies of the
notice developed pursuant to subsection (b); and
``(2) require the insured to provide a copy of the notice,
or otherwise provide notification of the information under
subsection (b) in the manner that the manager or landlord deems
most appropriate, to each such tenant and to each new tenant
upon commencement of such a tenancy.
``(b) Notice.--Notice to a tenant of a property in accordance with
this subsection is written notice that clearly informs a tenant--
``(1) whether the property is located in an area having
special flood hazards;
``(2) that flood insurance coverage is available under the
national flood insurance program under this title for contents
of the unit or structure leased by the tenant;
``(3) of the maximum amount of such coverage for contents
available under this title at that time; and
``(4) of where to obtain information regarding how to
obtain such coverage, including a telephone number, mailing
address, and Internet site of the Director where such
information is available.''.
SEC. 14. FLOOD INSURANCE OUTREACH.
Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.), as amended by the preceding provisions of this Act, is
further amended by adding at the end the following new section:
``SEC. 1326. GRANTS FOR OUTREACH TO PROPERTY OWNERS AND RENTERS.
``(a) In General.--The Director may, to the extent amounts are made
available pursuant to subsection (h), make grants to local governmental
agencies responsible for floodplain management activities (including
such agencies of Indians tribes, as such term is defined in section 4
of the Native American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4103)) in communities that participate in the national
flood insurance program under this title, for use by such agencies to
carry out outreach activities to encourage and facilitate the purchase
of flood insurance protection under this Act by owners and renters of
properties in such communities and to promote educational activities
that increase awareness of flood risk reduction.
``(b) Outreach Activities.--Amounts from a grant under this section
shall be used only for activities designed to--
``(1) identify owners and renters of properties in
communities that participate in the national flood insurance
program, including owners of residential and commercial
properties;
``(2) notify such owners and renters when their properties
become included in, or when they are excluded from, an area
having special flood hazards and the effect of such inclusion
or exclusion on the applicability of the mandatory flood
insurance purchase requirement under section 102 of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such
properties;
``(3) educate such owners and renters regarding the flood
risk and reduction of this risk in their community, including
the continued flood risks to areas that are no longer subject
to the flood insurance mandatory purchase requirement;
``(4) educate such owners and renters regarding the
benefits and costs of maintaining or acquiring flood insurance,
including, where applicable, lower-cost preferred risk policies
under this title for such properties and the contents of such
properties; and
``(5) encouraging such owners and renters to maintain or
acquire such coverage.
``(c) Cost Sharing Requirement.--
``(1) In general.--In any fiscal year, the Director may not
provide a grant under this section to a local governmental
agency in an amount exceeding 3 times the amount that the
agency certifies, as the Director shall require, that the
agency will contribute from non-Federal funds to be used with
grant amounts only for carrying out activities described in
subsection (b).
``(2) Non-federal funds.--For purposes of this subsection,
the term `non-Federal funds' includes State or local government
agency amounts, in-kind contributions, any salary paid to staff
to carry out the eligible activities of the grant recipient,
the value of the time and services contributed by volunteers to
carry out such services (at a rate determined by the Director),
and the value of any donated material or building and the value
of any lease on a building.
``(d) Administrative Cost Limitation.--Notwithstanding subsection
(b), the Director may use not more than 5 percent of amounts made
available under subsection (g) to cover salaries, expenses, and other
administrative costs incurred by the Director in making grants and
provide assistance under this section.
``(e) Application and Selection.--
``(1) In general.--The Director shall provide for local
governmental agencies described in subsection (a) to submit
applications for grants under this section and for competitive
selection, based on criteria established by the Director, of
agencies submitting such applications to receive such grants.
``(2) Selection considerations.--In selecting applications
of local government agencies to receive grants under paragraph
(1), the Director shall consider--
``(A) the existence of a cooperative technical
partner agreement between the local governmental agency
and the Federal Emergency Management Agency;
``(B) the history of flood losses in the relevant
area that have occurred to properties, both inside and
outside the special flood hazards zones, which are not
covered by flood insurance coverage;
``(C) the estimated percentage of high-risk
properties located in the relevant area that are not
covered by flood insurance;
``(D) demonstrated success of the local
governmental agency in generating voluntary purchase of
flood insurance; and
``(E) demonstrated technical capacity of the local
governmental agency for outreach to individual property
owners.
``(f) Direct Outreach by FEMA.--In each fiscal year that amounts
for grants are made available pursuant to subsection (h), the Director
may use not more than 50 percent of such amounts to carry out, and to
enter into contracts with other entities to carry out, activities
described in subsection (b) in areas that the Director determines have
the most immediate need for such activities.
``(g) Reporting.--Each local government agency that receives a
grant under this section, and each entity that receives amounts
pursuant to subsection (f), shall submit a report to the Director, not
later than 12 months after such amounts are first received, which shall
include such information as the Director considers appropriate to
describe the activities conducted using such amounts and the effect of
such activities on the retention or acquisition of flood insurance
coverage.
``(h) Authorization of Appropriations.--There is authorized to be
appropriated for grants under this section $50,000,000 for each of
fiscal years 2011 through 2015.''.
SEC. 15. NOTICE OF AVAILABILITY OF FLOOD INSURANCE AND ESCROW IN RESPA
GOOD FAITH ESTIMATE.
Subsection (c) of section 5 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2604(c)) is amended by adding at the
end the following new sentence: ``Each such good faith estimate shall
include the following conspicuous statements and information: (1) that
flood insurance coverage for residential real estate is generally
available under the national flood insurance program whether or not the
real estate is located in an area having special flood hazards and
that, to obtain such coverage, a home owner or purchaser should contact
the national flood insurance program; (2) a telephone number and a
location on the Internet by which a home owner or purchaser can contact
the national flood insurance program; and (3) that the escrowing of
flood insurance payments is required for many loans under section
102(d) of the Flood Disaster Protection Act of 1973, and may be a
convenient and available option with respect to other loans.''.
SEC. 16. AUTHORIZATION OF ADDITIONAL FEMA STAFF.
Notwithstanding any other provision of law, the Director of the
Federal Emergency Management Agency may employ such additional staff as
may be necessary to carry out all of the responsibilities of the
Director pursuant to this Act and the amendments made by this Act.
There are authorized to be appropriated to Director such sums as may be
necessary for costs of employing such additional staff.
SEC. 17. PLAN TO VERIFY MAINTENANCE OF FLOOD INSURANCE ON MISSISSIPPI
AND LOUISIANA PROPERTIES RECEIVING EMERGENCY SUPPLEMENTAL
FUNDS.
The Secretary of Housing and Urban Development and the Director of
the Federal Emergency Management Agency shall jointly develop and
implement a plan to verify that persons receiving funds under the
Homeowner Grant Assistance Program of the State of Mississippi or the
Road Home Program of the State of Louisiana from amounts allocated to
the State of Mississippi or the State of Louisiana, respectively, from
the Community development fund under the Emergency Supplemental
Appropriations Act to Address Hurricanes in the Gulf of Mexico and
Pandemic Influenza, 2006 (Public Law 109-148) are maintaining flood
insurance on the property for which such persons receive such funds as
required by each such Program.
SEC. 18. FLOOD INSURANCE ADVOCATE.
Chapter II of the National Flood Insurance Act of 1968 is amended
by inserting after section 1330 (42 U.S.C. 4041) the following new
section:
``SEC. 1330A. OFFICE OF THE FLOOD INSURANCE ADVOCATE.
``(a) Establishment of Position.--
``(1) In general.--There shall be in the Federal Emergency
Management Agency an Office of the Flood Insurance Advocate
which shall be headed by the National Flood Insurance Advocate.
The National Flood Insurance Advocate shall report directly to
the Director and shall, to the extent amounts are provided
pursuant to subsection (f), be compensated at the same rate as
the highest rate of basic pay established for the Senior
Executive Service under section 5382 of title 5, United States
Code, or, if the Director so determines, at a rate fixed under
section 9503 of such title.
``(2) Appointment.--The National Flood Insurance Advocate
shall be appointed by the Director, and without regard to the
provisions of title 5, United States Code, relating to
appointments in the competitive service or the Senior Executive
Service.
``(3) Qualifications.--An individual appointed under
paragraph (2) shall have a background in customer service as
well as insurance.
``(4) Staff.--To the extent amounts are provided pursuant
to subsection (f), the National Flood Insurance Advocate may
employ such personnel as may be necessary to carry out the
duties of the Office.
``(b) Functions of Office.--
``(1) In general.--It shall be the function of the Office
of the Flood Insurance Advocate to--
``(A) assist insureds under the national flood
insurance program in resolving problems with the
Federal Emergency Management Agency relating to such
program;
``(B) identify areas in which such insureds have
problems in dealings with the Agency relating to such
program; and
``(C) identify potential legislative,
administrative, or regulatory changes which may be
appropriate to mitigate such problems.
``(2) Annual reports.--
``(A) Activities.--Not later than December 31 of
each calendar year, the National Flood Insurance
Advocate shall report to the Committee on Financial
Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate on the activities of the Office of the Flood
Insurance Advocate during the fiscal year ending during
such calendar year. Any such report shall contain full
and substantive analysis, in addition to statistical
information, and shall--
``(i) identify the initiatives the Office
of the Flood Insurance Advocate has taken on
improving services for insureds under the
national flood insurance program and
responsiveness of the Federal Emergency
Management Agency with respect to such program;
``(ii) identify areas of the law or
regulations relating to the national flood
insurance program that impose significant
compliance burdens on such insureds or the
Federal Emergency Management Agency, including
specific recommendations for remedying these
problems; and
``(iii) include such other information as
the National Flood Insurance Advocate may deem
advisable.
``(B) Direct submission of report.--Each report
required under this paragraph shall be provided
directly to the committees identified in subparagraph
(A) without any prior review or comment from the
Director, the Secretary of Homeland Security, or any
other officer or employee of the Federal Emergency
Management Agency or the Department of Homeland
Security, or the Office of Management and Budget.
``(c) Funding.--Pursuant to section 1310(a)(4), the Director may
use amounts from the National Flood Insurance Fund to fund the
activities of the Office of the Flood Advocate in each of fiscal years
2011 through 2016, except that the amount so used in each such fiscal
year may not exceed $5,000,000 and shall remain available until
expended. Notwithstanding any other provision of this title, amounts
made available pursuant to this subsection shall not be subject to
offsetting collections through premium rates for flood insurance
coverage under this title.''.
SEC. 19. STUDY REGARDING MANDATORY PURCHASE REQUIREMENT FOR NATURAL
100-YEAR FLOODPLAIN AND NON-FEDERALLY RELATED LOANS.
(a) In General.--The Comptroller General shall conduct a study to
assess the impact, effectiveness, and feasibility of, and basis under
the Constitution of the United States for, amending the provisions of
the Flood Disaster Protection Act of 1973 regarding the properties that
are subject to the mandatory flood insurance coverage purchase
requirements under such Act to extend such requirements to any property
that is located in any area having special flood hazards and which
secures the repayment of a loan that is not described in paragraph (1),
(2), or (3) of section 102(b) of such Act, and shall determine how best
to administer and enforce such a requirement, taking into consideration
other insurance purchase requirements under Federal and State law.
(b) Report.--The Comptroller General shall submit a report to the
Congress regarding the results and conclusions of the study under
subsection (a) not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act.
SEC. 20. STUDY OF METHODS TO INCREASE FLOOD INSURANCE PROGRAM
PARTICIPATION BY LOW-INCOME FAMILIES.
(a) In General.--The Comptroller General of the United States shall
conduct a study to identify and analyze potential methods, practices,
and incentives that would increase the extent to which low-income
families (as such term is defined in section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b))) that own residential
properties located within areas having special flood hazards purchase
flood insurance coverage for such properties under the national flood
insurance program. In conducting the study, the Comptroller General
shall analyze the effectiveness and costs of the various methods,
practices, and incentives identified, including their effects on the
national flood insurance program.
(b) Report.--The Comptroller General shall submit to the Congress a
report setting forth the conclusions of the study under this section
not later than 12 months after the date of the enactment of this Act.
SEC. 21. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN MANAGEMENT
CRITERIA.
Not later than the expiration of the 6-month period beginning on
the date of the enactment of this Act, the Director of the Federal
Emergency Management Agency shall conduct a study and submit a report
to the Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the Senate
regarding the impact, effectiveness, and feasibility of amending
section 1361 of the National Flood Insurance Act of 1968 (42 U.S.C.
4102) to include widely used and nationally recognized building codes
as part of the floodplain management criteria developed under such
section, and shall determine--
(1) the regulatory, financial, and economic impacts of such
a building code requirement on homeowners, States and local
communities, local land use policies, and the Federal Emergency
Management Agency;
(2) the resources required of State and local communities
to administer and enforce such a building code requirement;
(3) the effectiveness of such a building code requirement
in reducing flood-related damage to buildings and contents;
(4) the impact of such a building code requirement on the
actuarial soundness of the National Flood Insurance Program;
(5) the effectiveness of nationally recognized codes in
allowing innovative materials and systems for flood-resistant
construction; and
(6) the feasibility and effectiveness of providing an
incentive in lower premium rates for flood insurance coverage
under such Act for structures meeting whichever of such widely
used and nationally recognized building code or any applicable
local building code provides greater protection from flood
damage.
<all>
DEBATE - Pursuant to the provisions of H.Res. 1517, the Committee of the Whole proceeded with 10 minutes of debate on the Taylor amendment.
DEBATE - Pursuant to the provisions of H.Res. 1517, the Committee of the Whole proceeded with 10 minutes of debate on the Miller (MI) amendment.
DEBATE - Pursuant to the provisions of H.Res. 1517, the Committee of the Whole proceeded with 10 minutes of debate on the Boswell amendment.
DEBATE - Pursuant to the provisions of H.Res. 1517, the Committee of the Whole proceeded with 10 minutes of debate on the Hill amendment.
DEBATE - Pursuant to the provisions of H.Res. 1517, the Committee of the Whole proceeded with 10 minutes of debate on the Loebsack amendment.
DEBATE - Pursuant to the provisions of H.Res. 1517, the Committee of the Whole proceeded with 10 minutes of debate on the McMahon amendment.
DEBATE - Pursuant to the provisions of H.Res. 1517, the Committee of the Whole proceeded with 10 minutes of debate on the Murphy (NY) amendment.
POSTPONED PROCEEDINGS - At the conclusion of debate on the Murphy (NY) amendment, the Chair put the question on adoption of the amendment and by voice vote, announced that the ayes had prevailed. Mr. Murphy (NY) demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until later in the legislative day.
The House rose from the Committee of the Whole House on the state of the Union to report H.R. 5114.
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The previous question was ordered pursuant to the rule. (consideration: CR H5653)
The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union. (text: CR H5636-5641)
Mr. Hensarling moved to recommit with instructions to Financial Services. (consideration: CR H5653-5655; text: CR H5654)
DEBATE - The House proceeded with 10 minutes of debate on the Hensarling 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 striking section 18 (relating to flood insurance outreach).
The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H5654)
On motion to recommit with instructions Failed by recorded vote: 191 - 229 (Roll no. 446).
Roll Call #446 (House)Passed/agreed to in House: On passage Passed by recorded vote: 329 - 90 (Roll no. 447).
Roll Call #447 (House)On passage Passed by recorded vote: 329 - 90 (Roll no. 447).
Roll Call #447 (House)Motion to reconsider laid on the table Agreed to without objection.
The Clerk was authorized to correct section numbers, punctuation, and cross references, and to make other necessary technical and conforming corrections in the engrossment of H.R. 5114.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.