National Flood Insurance Program Affordability Act
This bill requires the Federal Emergency Management Agency (FEMA) to provide discounts on National Flood Insurance Program coverage to low-income households and other entities. Specifically, the chargeable premium rate for an eligible primary residential dwelling must not exceed 1% of the median income of the area in which the property is located.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7202 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 7202
To establish a means-tested assistance program for national flood
insurance program policyholders, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 24, 2022
Mr. Cartwright introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To establish a means-tested assistance program for national flood
insurance program policyholders, 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.
This Act may be cited as the ``National Flood Insurance Program
Affordability Act''.
SEC. 2. MEANS-TESTED ASSISTANCE FOR NATIONAL FLOOD INSURANCE PROGRAM
POLICYHOLDERS.
(a) In General.--The Administrator of the Federal Emergency
Management Agency shall, not later than 1 year after the date of the
enactment of this Act, establish a means-tested program under which the
Administrator provides assistance to eligible policyholders in the form
of graduated discounts for insurance costs with respect to covered
properties.
(b) Discounts.--The Administrator shall use amounts provided under
this section to establish graduated discounts available to eligible
policyholders under this section, with respect to covered properties,
such that the chargeable premium rate for an eligible policyholder that
applies for assistance under this section may not exceed 1 percent of
the area median income for the area in which the property to which the
policy applies is located.
(c) Application.--To receive assistance under this Act, an eligible
policyholder shall submit an application to the Administrator at such
time, in such manner, and containing such information as the
Administrator may reasonably require and assistance will no longer be
available when the amounts appropriated pursuant to subsection (f) have
been expended for a fiscal year.
(d) Rulemaking and Guidance.--Not later than 1 year after the date
of the enactment of this Act, the Administrator shall issue such
regulations and guidance as the Administrator determines necessary to
carry out this Act, including a hardship metric for small businesses
and not-for-profit entities to qualify for assistance under this Act.
(e) Report.--Not later than 1 year after the date of the enactment
of this section, the Administrator shall submit to the Congress, a
report that--
(1) addresses the feasibility of making eligibility for
assistance under the program established under this Act based
on a consideration of an eligible policyholder's principal,
interest, taxes, and insurance instead of household income as a
percent of area medium income; and
(2) outlines how the Administrator could use income
eligibility for other Federal programs to determine eligibility
for participation in the program established under this Act.
(f) Appropriation.--
(1) In general.--There is appropriated, annually, to the
Administrator, out of any money in the Treasury not otherwise
appropriated, $250,000,000, to carry out the program
established by the Administrator under subsection (a).
(2) Expenditure requirement.--The Administrator shall, each
fiscal year, expend not less than 95 percent of the amount
appropriated for such fiscal year under paragraph (1).
SEC. 3. MONTHLY INSTALLMENT PAYMENT FOR PREMIUMS.
Not later than 180 days after the date of enactment of this Act,
the Administrator shall--
(1) implement the requirement for monthly installment
payments of premiums provided under section 1308(g) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)); or
(2) submit to Congress an explanation of the reasons why
the Administrator cannot implement the requirement described in
paragraph (1) during that 180-day period.
SEC. 4. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Federal Emergency Management Agency.
(2) Covered property.--The term ``covered property''
means--
(A) a primary residential dwelling designed; or
(B) personal property relating to a dwelling
described in subparagraph (A).
(3) Eligible policyholder.--The term ``eligible
policyholder'' means--
(A) a person who--
(i) is a national flood insurance program
policyholder on or after the date of the
enactment of this Act; and
(ii) has a household income that is not
more than 120 percent of the area median income
for the area in which the property to which the
policy applies is located;
(B) a business with not more than 100 employees
that--
(i) is a national flood insurance program
policyholder on or after the date of the
enactment of this Act; and
(ii) satisfies the hardship metric
published by the Administrator under section 2;
or
(C) a not-for-profit organization that--
(i) is a national flood insurance program
policyholder on or after the date of the
enactment of this Act; and
(ii) satisfies the hardship metric
published by the Administrator under section 2.
(4) Insurance costs.--The term ``insurance costs'' means,
with respect to a covered property for a year--
(A) risk premiums and fees estimated under section
1307 of the National Flood Insurance Act of 1968 (42
U.S.C. 4014) and charged under section 1308 of such Act
(42 U.S.C. 4015);
(B) surcharges assessed under sections 1304 and
1308A of such Act (42 U.S.C. 4011, 4015a); and
(C) any amount established under section 1310A(c)
of such Act (42 U.S.C. 4017a).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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