No official summary available for this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5484 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5484
To reauthorize the National Flood Insurance Program, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 18, 2025
Mr. Pallone (for himself and Mr. Higgins of Louisiana) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committees on Transportation and
Infrastructure, and Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To reauthorize the National Flood Insurance 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.
This Act may be cited as the ``National Flood Insurance Program
Reauthorization and Reform Act of 2025''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--REAUTHORIZATION AND AFFORDABILITY
Sec. 101. Reauthorization.
Sec. 102. Cap on annual premium increases.
Sec. 103. Targeted means-tested assistance.
Sec. 104. Optional monthly installment premium payment plans.
Sec. 105. Study on business interruption coverage.
Sec. 106. Cooperative coverage fairness.
Sec. 107. Coverage limits.
Sec. 108. Study on participation rates.
Sec. 109. National Flood Insurance Act definitions regarding the Write
Your Own Program.
TITLE II--MITIGATION AND MAPPING
Sec. 201. Mitigation for high-risk properties.
Sec. 202. Increased cost of compliance coverage.
Sec. 203. Flood mitigation assistance grants.
Sec. 204. Urban mitigation opportunities.
Sec. 205. Community Rating System Regional Coordinator.
Sec. 206. Mitigation loan program.
Sec. 207. Revolving loan funds.
Sec. 208. Mapping modernization.
Sec. 209. Appeals.
Sec. 210. Levee-protected areas.
Sec. 211. Community-wide flood mitigation activities.
Sec. 212. Premium calculator.
Sec. 213. Consideration of mitigation projects in flood insurance
premium rates.
TITLE III--SOLVENCY
Sec. 301. Forbearance on NFIP interest payments.
Sec. 302. Cap on Write Your Own company compensation.
Sec. 303. Third-party service provider costs; transparency.
Sec. 304. Availability of NFIP claims data.
Sec. 305. Refusal of mitigation assistance.
Sec. 306. Multiple structure mitigation.
TITLE IV--POLICYHOLDER PROTECTION AND FAIRNESS
Sec. 401. Earth movement fix and engineer standards.
Sec. 402. Coverage of pre-FIRM condominium basements and study on
street raising.
Sec. 403. Guidance on remediation and policyholder duties.
Sec. 404. Appeal of decisions relating to flood insurance coverage.
Sec. 405. Accountability for underpayments and overpayments by Write
Your Own companies.
Sec. 406. Policyholders' right to know.
Sec. 407. Termination of certain contracts under the National Flood
Insurance Program.
Sec. 408. Deadline for claim processing.
Sec. 409. No manipulation of engineer reports.
Sec. 410. Improved training of floodplain managers, agents, and
adjusters.
Sec. 411. Flood insurance continuing education and training.
Sec. 412. Shifting of attorney fees and other expenses.
Sec. 413. DOJ defense against policyholder lawsuits.
Sec. 414. Reforming use of proof of loss forms.
Sec. 415. Agent Advisory Council.
Sec. 416. Disclosure of flood risk information prior to transfer of
property.
Sec. 417. Grace period for renewal of coverage at renewal offer rate.
SEC. 3. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Federal Emergency Management Agency.
(2) 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. 4001 et
seq.).
(3) National flood mitigation fund.--The term ``National
Flood Mitigation Fund'' means the fund established under
section 1367 of the National Flood Insurance Act of 1968 (42
U.S.C. 4104d).
(4) Write your own company.--The term ``Write Your Own
Company'' has the meaning given the term in section 1370(a) of
the National Flood Insurance Act of 1968 (42 U.S.C. 4121(a)),
as amended by section 109 of this Act.
TITLE I--REAUTHORIZATION AND AFFORDABILITY
SEC. 101. REAUTHORIZATION.
(a) In General.--
(1) Financing.--Section 1309(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by
striking ``September 30, 2023'' and inserting ``September 30,
2030''.
(2) Program expiration.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking
``September 30, 2023'' and inserting ``September 30, 2030''.
(3) Retroactive effective date.--If this Act is enacted
after September 30, 2025, the amendments made by paragraphs (1)
and (2) shall take effect as if enacted on September 30, 2025.
(b) Continued Operation During Lapse of Appropriations.--Section
1310(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(f))
is amended--
(1) by inserting ``(1)'' after ``(f)''; and
(2) by adding at the end the following:
``(2)(A) In this paragraph, the term `period of a lapse in
appropriations from the Fund' means a period, on or after the first day
of a fiscal year, during which an appropriation Act for the fiscal year
with respect to the Fund has not been enacted and continuing
appropriations are not in effect for the fiscal year with respect to
the Fund.
``(B) Notwithstanding paragraph (1), during a period of a lapse in
appropriations from the Fund, amounts in the Fund not otherwise
appropriated shall be available to the Administrator to carry out the
flood insurance program under this title, subject to the same terms and
conditions (except with respect to the period of availability), and in
an amount not greater than the rate for operations, provided for the
Fund in the most recently enacted regular or continuing appropriation
Act.
``(C) Amounts in the Fund shall be available under subparagraph (B)
for a fiscal year during the period beginning on the first day of a
period of a lapse in appropriations from the Fund during the fiscal
year and ending on the date on which the regular appropriation Act for
the fiscal year with respect to the Fund is enacted (whether or not
such law makes amounts available from the Fund) or a law making
continuing appropriations with respect to the Fund is enacted, as the
case may be.
``(D) Expenditures and obligations made under this paragraph shall
be charged to the amounts made available from the Fund under the
regular appropriation Act, or law making continuing appropriations,
with respect to the Fund that is enacted for the applicable fiscal
year.''.
SEC. 102. CAP ON ANNUAL PREMIUM INCREASES.
(a) Definition.--In this section, the term ``covered cost''--
(1) means--
(A) the amount of an annual premium with respect to
any policy for flood insurance under the National Flood
Insurance Program;
(B) any surcharge imposed with respect to a policy
described in subparagraph (A) (other than a surcharge
imposed under section 1304(b) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4011(b))), including a
surcharge imposed under section 1308A(a) of that Act
(42 U.S.C. 4015a(a)), as amended by this Act; and
(C) a fee described in paragraph (1)(B)(iii) or (2)
of section 1307(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4014(a)); and
(2) does not include any cost associated with the purchase
of insurance under section 1304(b) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4011(b)), as amended by this
Act, including any surcharge that relates to insurance
purchased under such section 1304(b).
(b) Limitation on Increases.--
(1) Limitation.--
(A) In general.--During the 5-year period beginning
on the date of enactment of this Act, notwithstanding
section 1308(e) of the National Flood Insurance Act of
1968 (42 U.S.C. 4015(e)), as amended by this Act, and
subject to subparagraph (B), the Administrator may not,
in any year, increase the amount of any covered cost by
an amount that is more than 9 percent, as compared with
the amount of the covered cost during the previous
year, except where the increase in the covered cost
relates to an exception under paragraph (1)(C)(iii) of
such section 1308(e).
(B) Decrease of amount of deductible or increase in
amount of coverage.--In the case of a policyholder
described in section 1308(e)(1)(C)(ii) of the National
Flood Insurance Act of 1968 (42 U.S.C.
4015(e)(1)(C)(ii)), as amended by this Act, the
Administrator shall establish a process by which the
Administrator determines an increase in covered costs
for the policyholder that is--
(i) proportional to the relative change in
risk based on the action taken by the
policyholder; and
(ii) in compliance with subparagraph (A).
(2) New rating systems.--
(A) Classification.--With respect to a property,
the limitation under paragraph (1) shall remain in
effect for each year until the covered costs with
respect to the property reflect full actuarial rates,
without regard to whether, at any time until the year
in which those covered costs reflect full actuarial
rates, the property is rated or classified under the
Risk Rating 2.0 methodology (or any substantially
similar methodology).
(B) New policyholder.--If a property to which the
limitation under paragraph (1) applies is sold before
the covered costs for the property reflect full
actuarial rates determined under the Risk Rating 2.0
methodology (or any substantially similar methodology),
that limitation shall remain in effect for each year
until the year in which those full actuarial rates take
effect.
(c) Rule of Construction.--Nothing in subsection (b) may be
construed as prohibiting the Administrator from reducing, in any year,
the amount of any covered cost, as compared with the amount of the
covered cost during the previous year.
(d) Average Historical Loss Year.--Section 1308 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by striking
subsection (h) and inserting the following:
``(h) Rule of Construction.--For purposes of this section, the
calculation of an `average historical loss year' shall be computed in
accordance with generally accepted actuarial principles.''.
(e) Disclosure With Respect to the Affordability Standard.--Section
1308(j) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(j))
is amended, in the second sentence, by inserting ``and shall include in
the report the number of those exceptions as of the date on which the
Administrator submits the report and the location of each policyholder
insured under those exceptions, organized by county and State'' after
``of the Senate''.
SEC. 103. TARGETED MEANS-TESTED ASSISTANCE.
(a) Means-Tested Program.--
(1) In general.--Chapter I of the National Flood Insurance
Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting
after section 1308A (42 U.S.C. 4015a) the following:
``SEC. 1308B. FLOOD INSURANCE ASSISTANCE.
``(a) Definitions.--In this section:
``(1) Covered property.--The term `covered property'
means--
``(A) a primary residential dwelling designed for
the occupancy of from 1 to 4 families; or
``(B) personal property relating to a dwelling
described in subparagraph (A).
``(2) Eligible policyholder.--The term `eligible
policyholder' means a policyholder with a household income that
is not more than 140 percent of the area median income for the
area in which the property to which the policy applies is
located.
``(3) Housing expenses.--The term `housing expenses' means,
with respect to a household, the total amount that the
household spends in a year on--
``(A) mortgage payments or rent;
``(B) property taxes;
``(C) homeowners insurance; and
``(D) premiums for flood insurance under the
national flood insurance program.
``(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 and charged under section 1308;
``(B) surcharges assessed under sections 1304 and
1308A; and
``(C) any amount established under section
1310A(c).
``(b) Authority.--Subject to the availability of appropriations,
the Administrator is authorized to carry out 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.
``(c) Eligibility.--To determine eligibility for means-tested
assistance under this section, the Administrator may accept any of the
following with respect to an eligible policyholder:
``(1) Income verification from the National Directory of
New Hires established under section 453(i) of the Social
Security Act (42 U.S.C. 653(i)).
``(2) A self-certification of eligibility by the eligible
policyholder that is provided under penalty of perjury pursuant
to section 1746 of title 28, United States Code.
``(3) Any other method identified by the Administrator in
interim guidance, or a final rule, issued under subsection (e).
``(d) Discount.--The Administrator may establish graduated
discounts available to eligible policyholders under this section, which
shall be based on the following factors:
``(1) The percentage by which the household income of an
eligible policyholder is equal to, or less than, 120 percent of
the area median income for the area in which the property to
which the policy applies is located.
``(2) The housing expenses of an eligible policyholder.
``(3) The number of eligible policyholders participating in
the program established under this section.
``(4) The availability of funding.
``(5) Any other factor that the Administrator finds
reasonable and necessary to carry out the purposes of this
section.
``(e) Implementation.--
``(1) In general.--The Administrator shall issue final
rules to implement this section.
``(2) Interim guidance.--
``(A) In general.--Not later than 1 year after the
date of enactment of this section, the Administrator
shall issue interim guidance to implement this section,
which shall--
``(i) include--
``(I) a description of how the
Administrator will determine--
``(aa) eligibility for
households to participate in
the program established under
this section; and
``(bb) assistance levels
for eligible households to
which assistance is provided
under this section;
``(II) the methodology that the
Administrator will use to determine the
amount of assistance provided to
eligible households under this section;
and
``(III) any requirements to which
eligible policyholders to which
assistance is provided under this
section will be subject; and
``(ii) expire on the later of--
``(I) the date that is 84 months
after the date of enactment of this
section; or
``(II) the date on which the final
rules issued under paragraph (1) take
effect.
``(B) Rule of construction.--Nothing in
subparagraph (A) may be construed to preclude the
Administrator from amending the interim guidance issued
under that subparagraph.
``(f) Collection of Demographic Information.--The Administrator, in
order to evaluate and monitor the effectiveness of this section, and to
comply with the reporting requirements under subsection (g), may
request demographic information, and other information, with respect to
an eligible policyholder to which assistance is provided under this
section, which may include--
``(1) the income of the eligible policyholder, as compared
with the area median income for the area in which the property
to which the policy applies is located; and
``(2) demographic characteristics of the eligible
policyholder, including the race and ethnicity of the eligible
policyholder.
``(g) Reports to Congress.--
``(1) In general.--Not later than 2 years after the date of
enactment of this section, and biennially thereafter, the
Administrator shall submit to Congress a report regarding the
implementation and effectiveness of this section.
``(2) Contents.--Each report submitted under paragraph (1)
shall include information regarding, for the period covered by
the report--
``(A) the distribution of household area median
income for eligible policyholders to which assistance
is provided under this section;
``(B) the number of eligible policyholders to which
assistance is provided under this section, which shall
be disaggregated by income and demographic
characteristics;
``(C) the cost of providing assistance under this
section; and
``(D) the average amount of assistance provided to
an eligible policyholder under this section, which
shall be disaggregated as described in subparagraph
(B).
``(h) Risk Communication.--For the purposes of the communication
required under section 1308(l), the Administrator shall provide to an
eligible policyholder to which assistance is provided under this
section a full flood risk determination with respect to the property of
the eligible policyholder, which shall reflect the insurance costs with
respect to the property before that assistance is provided.
``(i) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to the Administrator to carry out this
section--
``(A) $250,000,000 for fiscal year 2024;
``(B) $340,000,000 for fiscal year 2025;
``(C) $400,000,000 for fiscal year 2026;
``(D) $500,000,000 for fiscal year 2027; and
``(E) $600,000,000 for fiscal year 2028.
``(2) Notification.--If, in a fiscal year, the
Administrator determines that the amount made available to
carry out this section is insufficient to provide assistance
under this section, the Administrator shall submit to Congress
a notification of the remaining amounts necessary to provide
that assistance for that fiscal year.
``(3) Distribution of premium.--With respect to the amount
of the discounts provided under this section in a fiscal year,
and any administrative expenses incurred in carrying out this
section for that fiscal year, the Administrator shall, from
amounts made available to carry out this section for that
fiscal year, deposit in the National Flood Insurance Fund
established under section 1310 an amount equal to those
discounts and administrative expenses, except to the extent
that section 1310A applies to any portion of those discounts or
administrative expenses, in which case the Administrator shall
deposit an amount equal to those amounts to which section 1310A
applies in the National Flood Insurance Reserve Fund
established under section 1310A.''.
(2) Use of savings.--In addition to any amounts made
available to the Administrator to carry out section 1308B of
the National Flood Insurance Act of 1968, as added by paragraph
(1), the Administrator shall use any amounts saved as a direct
result of the amendments made by section 302(a) of this Act to
carry out such section 1308B.
(b) National Flood Insurance Act of 1968.--The National Flood
Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is amended--
(1) in section 1308(e) (42 U.S.C. 4015(e))--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking ``or''
at the end;
(ii) in subparagraph (C)(iii), by adding
``or'' at the end; and
(iii) by adding at the end the following:
``(D) in the case of a property with respect to
which assistance is provided under section 1308B, if--
``(i) the applicable policyholder is no
longer eligible to receive assistance under
that section;
``(ii) the assistance so provided has been
decreased under that section; or
``(iii) the Administrator is not
authorized, or lacks appropriated funds, to
carry out that section;''; and
(B) in paragraph (3), by striking ``period; and''
and inserting the following: ``period, except in the
case of a property with respect to which assistance is
provided under section 1308B if a condition described
in clause (i), (ii), or (iii) of paragraph (1)(D) is
applicable; and''; and
(2) in section 1366(d) (42 U.S.C. 4104c(d))--
(A) by redesignating paragraph (3) as paragraph
(4); and
(B) by inserting after paragraph (2) the following:
``(3) Flood insurance assistance.--In the case of
mitigation activities to structures insured by policyholders
that are eligible for assistance under section 1308B, in an
amount up to 100 percent of all eligible costs.''.
(c) Information Comparisons With the National Directory of New
Hires for Flood Insurance Assistance Income Verification.--Section
453(j) of the Social Security Act (42 U.S.C. 653(j)) is amended by
adding at the end the following new paragraph:
``(12) Information comparisons for flood insurance
assistance.--
``(A) Furnishing of information by fema.--The
Administrator of the Federal Emergency Management
Agency (in this paragraph, referred to as the
`Administrator') shall furnish to the Secretary, on
such periodic basis as determined by the Administrator
in consultation with the Secretary, information in the
custody of the Administrator for comparison with
information in the National Directory of New Hires, in
order to obtain information in such Directory with
respect to individuals who are applying for, or
receiving benefits under, section 1308B of the National
Flood Insurance Act of 1968.
``(B) Requirement to seek minimum information.--The
Administrator shall seek information pursuant to this
paragraph only to the extent necessary to verify the
employment and income of individuals described in
subparagraph (A).
``(C) Duties of the secretary.--
``(i) Information disclosure.--The
Secretary, in cooperation with the
Administrator, shall compare information in the
National Directory of New Hires with
information provided by the Administrator with
respect to individuals described in
subparagraph (A), and shall disclose
information in such Directory regarding such
individuals to the Administrator, in accordance
with this paragraph, for the purposes specified
in this paragraph.
``(ii) Condition on disclosure.--The
Secretary shall make disclosures in accordance
with clause (i) only to the extent that the
Secretary determines that such disclosures do
not interfere with the effective operation of
the program under this part.
``(D) Use of information by fema.--The
Administrator may use information resulting from a data
match pursuant to this paragraph only--
``(i) for the purpose of verifying the
employment and income of individuals described
in subparagraph (A); and
``(ii) after removal of personal
identifiers, to conduct analyses of the
employment and income reporting of individuals
described in subparagraph (A).
``(E) Disclosure of information by fema.--
``(i) Purpose of disclosure.--The
Administrator may make a disclosure under this
subparagraph only for the purpose of verifying
the employment and income of individuals
described in subparagraph (A).
``(ii) Disclosures permitted.--Subject to
clause (iii), the Administrator may disclose
information resulting from a data match
pursuant to this paragraph only to contractors
of the Federal Emergency Management Agency,
private insurance companies participating in
the Write Your Own Program of the Federal
Emergency Management Agency, the Inspector
General of the Department of Homeland Security,
and the Attorney General, in connection with
the administration of a program described in
subparagraph (A). Information obtained by the
Administrator pursuant to this paragraph shall
not be made available under section 552 of
title 5, United States Code.
``(iii) Conditions on disclosure.--
Disclosures under this paragraph shall be--
``(I) made in accordance with data
security and control policies
established by the Administrator and
approved by the Secretary;
``(II) subject to audit in a manner
satisfactory to the Secretary; and
``(III) subject to the sanctions
under subsection (l)(2).
``(iv) Restrictions on redisclosure.--A
person or entity to which information is
disclosed under this subparagraph may use or
disclose such information only as needed for
verifying the employment and income of
individuals described in subparagraph (A),
subject to the conditions in clause (iii) and
such additional conditions as agreed to by the
Secretary and the Administrator.
``(F) Reimbursement of hhs costs.--The
Administrator shall reimburse the Secretary, in
accordance with subsection (k)(3), for the costs
incurred by the Secretary in furnishing the information
requested under this paragraph.
``(G) Consent.--The Administrator shall not seek,
use, or disclose information under this paragraph
relating to an individual without the prior written
consent of such individual (or of a person legally
authorized to consent on behalf of such individual).''.
SEC. 104. OPTIONAL MONTHLY INSTALLMENT PREMIUM PAYMENT PLANS.
Section 1308(g) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(g)) is amended--
(1) by striking ``With respect to'' and inserting the
following:
``(1) Annual or monthly option.--Subject to paragraph (2),
with respect to''; and
(2) by adding at the end the following:
``(2) Monthly installment.--With respect to a policyholder
that opts under paragraph (1) to pay premiums on a monthly
basis, the Administrator may charge the policyholder an annual
fee of not more than $15.
``(3) Exemption from rule making; pilot program.--During
the period beginning on the date of enactment of this paragraph
and ending on the date on which the Administrator promulgates
regulations carrying out paragraph (1), the Administrator may,
notwithstanding any other provision of law--
``(A) adopt policies and procedures to carry out
that paragraph without--
``(i) undergoing notice and comment rule
making under section 553 of title 5, United
States Code; or
``(ii) conducting regulatory analyses
otherwise required by statute, regulation, or
Executive order; or
``(B) carry out that paragraph by establishing a
pilot program that gradually implements the
requirements of that paragraph.''.
SEC. 105. STUDY ON BUSINESS INTERRUPTION COVERAGE.
(a) In General.--The Administrator shall conduct a study on the
feasibility and soundness of offering coverage under the National Flood
Insurance Program for interruption business losses caused by a flood
(referred to in this section as ``business interruption coverage'').
(b) Contents.--In conducting the study under subsection (a), the
Administrator shall, at a minimum--
(1) evaluate insurance industry best practices for offering
business interruption coverage, including the types of coverage
provided and the utilization rate;
(2) estimate the potential risk premium rates for business
interruption coverage based on the flood risk reflected in the
flood insurance rate map or other risk metrics in effect at the
time of purchase;
(3) analyze the operational and administrative expenses
associated with providing business interruption coverage and
adjusting claims;
(4) identify potential obstacles that may prevent the
Administrator from offering business interruption coverage;
(5) evaluate the benefits of providing business
interruption coverage;
(6) analyze any potential impacts on the financial position
of the National Flood Insurance Program; and
(7) develop a feasibility implementation plan and projected
timelines for offering business interruption coverage.
(c) Availability of Experts.--In conducting the study under
subsection (a), the Administrator may accept and utilize the personnel
and services of any other Federal agency, and appoint and fix the
compensation of temporary personnel without regard to the provisions of
title 5, United States Code, governing appointments in the competitive
service, or employ experts and consultants in accordance with the
provisions of section 3109 of such title, without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of such title
relating to classification and General Schedule pay rates.
(d) Deadline.--The Administrator shall complete the study required
under subsection (a) not later than September 30 of the second full
fiscal year after the date of enactment of this Act.
SEC. 106. COOPERATIVE COVERAGE FAIRNESS.
(a) In General.--Section 1306 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4013) is amended by adding at the end the following:
``(e) Cooperatives.--
``(1) Definition.--In this subsection, the term
`cooperative building' has the meaning given the term in
section 1312(d).
``(2) Equal treatment with condominiums.--Notwithstanding
any other provision of law, an owner of a share of a
cooperative building shall be eligible to purchase flood
insurance coverage under the national flood insurance program
on the same terms as a condominium owner.''.
(b) Payment of Claims.--Section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019) is amended--
(1) in subsection (c)--
(A) in the subsection heading, by inserting ``and
Cooperative'' after ``Condominium'';
(B) by inserting ``, or owners of a share of a
cooperative building,'' after ``condominium owners'';
and
(C) by inserting ``or cooperative association''
after ``condominium association'' each place that term
appears; and
(2) by adding at the end the following:
``(k) Definitions.--In this section, the terms `cooperative
association' and `cooperative building' have the meanings given the
terms by the Administrator.''.
SEC. 107. COVERAGE LIMITS.
(a) In General.--Section 1306 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4013), as amended by section 106(a), is amended--
(1) in subsection (b)--
(A) in the matter preceding paragraph (1), by
striking ``In addition to any other terms and
conditions under subsection (a), such regulations'' and
inserting ``The Administrator'';
(B) in paragraph (2)--
(i) by striking ``shall be made'' and
inserting ``may be made''; and
(ii) by striking ``$250,000'' and inserting
``the baseline amount'';
(C) in paragraph (3)--
(i) by striking ``shall be made'' and
inserting ``may be made''; and
(ii) by striking ``$100,000'' and inserting
``50 percent of the baseline amount''; and
(D) in paragraph (4)--
(i) by striking ``shall be made'' each
place that term appears and inserting ``may be
made''; and
(ii) by striking ``$500,000'' each place
that term appears and inserting ``200 percent
of the baseline amount''; and
(2) by adding at the end the following:
``(f) Definition.--Subject to paragraph (2), in this section, the
term `baseline amount' means an amount determined by the Administrator
that is equal to the maximum original principal obligation of a
conventional mortgage secured by a single-family residence that may be
purchased by the Federal National Mortgage Association, as established
under the seventh sentence of section 302(b)(2) of the Federal National
Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)), which the
Administrator may not--
``(1) increase more than once every 5 years;
``(2) increase with respect to any particular property
pursuant to the 11th or 12th sentence of such section
302(b)(2); or
``(3) decrease.''.
(b) Authority of Administrator To Sell Policies.--The Administrator
may sell a policy for flood insurance under the National Flood
Insurance Program that meets the requirements of paragraphs (2), (3),
and (4) of section 1306(b) of the National Flood Insurance Act of 1968
(42 U.S.C. 4013(b)), as amended by subsection (a), without regard to--
(1) section 61.6 of title 44, Code of Federal Regulations,
as in effect on the day before the date of enactment of this
Act; or
(2) any other provision of law.
SEC. 108. STUDY ON PARTICIPATION RATES.
(a) Definitions.--In this section--
(1) the term ``500-year floodplain'' has the meaning given
the term in section 100202(a) of the Biggert-Waters Flood
Insurance Reform Act of 2012 (40 U.S.C. 4004(a));
(2) the terms ``Federal agency lender'', ``improved real
estate'', and ``regulated lending institution'' have the
meanings given those terms in section 3(a) of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4003(a)); and
(3) the term ``property with a Federally backed mortgage''
means improved real estate or a mobile home securing a loan
that was--
(A) made by a regulated lending institution or
Federal agency lender; or
(B) purchased by the Federal National Mortgage
Association or the Federal Home Loan Mortgage
Corporation.
(b) Study.--The Comptroller General of the United States shall
conduct a study that proposes to address, through programmatic and
regulatory changes, how to increase the rate at which properties in the
United States are covered by flood insurance.
(c) Considerations.--In conducting the study required under
subsection (b), the Comptroller General of the United States shall--
(1) consider--
(A) expanding participation in the National Flood
Insurance Program beyond areas having special flood
hazards to areas of moderate or minimum risk with
respect to flooding;
(B) automatically enrolling consumers in the
National Flood Insurance Program and providing those
consumers with the opportunity to decline such
enrollment; and
(C) bundling flood insurance coverage that
diversifies risk across all or multiple forms of peril;
(2) determine--
(A) the percentage of properties with Federally
backed mortgages located in an area having special
flood hazards that are covered by flood insurance that
satisfies the requirement under section 102(b) of the
Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a(b)); and
(B) the percentage of properties with Federally
backed mortgages located in the 500-year floodplain
that are covered by flood insurance that would satisfy
the requirement described in subparagraph (A) if that
requirement applied to such properties; and
(3) conduct a comprehensive assessment of the economic and
social impacts of implementing Risk Rating 2.0 (or any
substantially similar methodology) during the 20-year period
beginning in the year in which the assessment is made, which
shall include an evaluation of the effect that such
implementation will have, during that 20-year period, on--
(A) the affordability and availability of flood
insurance under the National Flood Insurance Program;
(B) property values;
(C) the amount of Federal disaster aid for
properties that are not covered by flood insurance,
whether under the National Flood Insurance Program or
otherwise; and
(D) non-Federal Government revenues.
(d) Report.--Not later than 18 months after the date of enactment
of this Act, the Comptroller General of the United States shall submit
to the Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives
a report regarding the results of the study conducted under subsection
(b).
SEC. 109. NATIONAL FLOOD INSURANCE ACT DEFINITIONS REGARDING THE WRITE
YOUR OWN PROGRAM.
Section 1370(a) of the National Flood Insurance Act of 1968 (42
U.S.C. 4121(a)) is amended--
(1) in paragraph (14), by striking ``and'' at the end;
(2) in paragraph (15), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(16) the term `Write Your Own Program' means the program
under which the Federal Emergency Management Agency enters into
a standard arrangement with private property insurance
companies to--
``(A) sell contracts for Federal flood insurance
under their own business lines of insurance; and
``(B) adjust and pay claims arising under the
contracts described in subparagraph (A); and
``(17) the term `Write Your Own Company' means a private
property insurance company that participates in the Write Your
Own Program.''.
TITLE II--MITIGATION AND MAPPING
SEC. 201. MITIGATION FOR HIGH-RISK PROPERTIES.
(a) In General.--Section 203 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5133) is amended by
adding at the end the following:
``(n) Flood Mitigation Activities.--The President shall set aside
from the Disaster Relief Fund an amount equal to 10 percent of the
average amount appropriated to the Fund during the preceding 10 fiscal
years to provide assistance for mitigation activities under section
1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c)
for--
``(1) severe repetitive loss structures; and
``(2) properties insured under the national flood insurance
program with the largest increase in the actuarial risk for the
property compared to the actuarial risk for the previous fiscal
year as a result of Risk Rating 2.0, as in effect on October 1,
2021.''.
(b) Applicability.--The amendment made to section 203 of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5133) by subsection (a) shall apply to funds appropriated on or after
the date of enactment of this Act.
(c) Technical and Conforming Amendment.--Effective on October 5,
2025, section 203 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5133) is amended by redesignating
subsection (n), as added by subsection (a) of this section, as
subsection (m).
SEC. 202. INCREASED COST OF COMPLIANCE COVERAGE.
Section 1304(b) of the National Flood Insurance Act of 1968 (42
U.S.C. 4011(b)) is amended--
(1) in paragraph (4), by redesignating subparagraphs (A)
through (D) as clauses (i) through (iv), respectively, and
adjusting the margins accordingly;
(2) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and adjusting the
margins accordingly;
(3) in subparagraph (C), as so redesignated, by striking
the period at the end and inserting a semicolon;
(4) by redesignating paragraph (4) as subparagraph (F), and
adjusting the margins accordingly;
(5) by inserting after subparagraph (C), as so
redesignated, the following:
``(D) properties identified by the Administrator as
priorities for mitigation activities before the
occurrence of damage to or loss of property which is
covered by flood insurance;
``(E) properties outside an area having special
flood hazards if the communities in which the
properties are located have, under section 1361,
established land use and control measures for the areas
in which the properties are located; and'';
(6) by inserting before ``The national flood insurance
program'' the following: ``(1) In general.--'';
(7) in the flush text following subparagraph (F)(iv), as so
redesignated, by striking ``The Administrator'' and inserting
the following:
``(2) Premium.--The Administrator''; and
(8) by adding at the end the following:
``(3) Amount of Coverage.--Each policy for flood insurance coverage
made available under this title shall provide coverage under this
subsection having an aggregate liability for any single property of
$120,000.
``(4) Eligible Mitigation Activities.--
``(A) In general.--Eligible mitigation methods the cost of
which is covered by coverage provided under this subsection
shall include--
``(i) alternative methods of mitigation identified
in the guidelines issued pursuant to section 1361(d);
``(ii) pre-disaster mitigation projects for
eligible structures; and
``(iii) costs associated with the purchase,
clearing, and stabilization of property that is part of
an acquisition or relocation project that complies with
subparagraph (B).
``(B) Acquisition and relocation project eligibility and
requirements.--
``(i) In general.--An acquisition or relocation
project shall be eligible to receive assistance
pursuant to subparagraph (A)(iii) only if--
``(I) any property acquired, accepted, or
from which a structure will be removed shall be
dedicated and maintained in perpetuity for a
use that is compatible with open space,
recreational, or wetland and natural floodplain
management practices; and
``(II) any new structure erected on such
property will be--
``(aa) a public facility that is
open on all sides and functionally
related to a designated open space;
``(bb) a restroom; or
``(cc) a structure that the
Administrator approves in writing
before the commencement of the
construction of the structure.
``(ii) Further assistance.--If an acquisition or
relocation project is assisted pursuant to subparagraph
(A)(iii)--
``(I) no person may apply to a Federal
entity for disaster assistance with regard to
any property acquired, accepted, or from which
a structure was removed as part of such
acquisition or relocation project; and
``(II) no Federal entity may provide
disaster assistance for such property.
``(iii) Requirement to maintain flood insurance
coverage.--
``(I) In general.--Notwithstanding any
other provision of law, any assisted structure
shall, at all times, maintain insurance against
flood damage, in accordance with Federal law,
for the life of such structure.
``(II) Transfer of property.--
``(aa) Duty to notify.--If any part
of a property on which an assisted
structure is located is transferred,
the transferor shall, not later than
the date on which such transfer occurs,
notify the transferee in writing,
including in all documents evidencing
the transfer of ownership of the
property, that such transferee is
required to--
``(AA) obtain flood
insurance in accordance with
applicable Federal law with
respect to such assisted
structure, if such structure is
not so insured on the date on
which the structure is
transferred; and
``(BB) maintain flood
insurance in accordance with
applicable Federal law with
respect to such structure.
``(bb) Failure to notify.--If a
transferor fails to make a notification
in accordance with item (aa) and such
assisted structure is damaged by a
flood disaster, the transferor shall
pay the Federal Government an amount
equal to the amount of any disaster
relief provided by the Federal
Government with respect to such
assisted structure.
``(III) Assisted structure defined.--For
the purposes of this clause, the term `assisted
structure' means a structure on property that
is part of an acquisition or relocation project
assisted pursuant to subparagraph (A) that was,
as part of such acquisition or relocation
project--
``(aa) altered;
``(bb) improved;
``(cc) replaced;
``(dd) repaired; or
``(ee) restored.
``(C) Eligible structure defined.--For purposes of this
paragraph, the term `eligible structure' means any structure
that--
``(i) was constructed in compliance with the Flood
Insurance Rate Map and local building and zoning codes
in effect on the date of construction of the structure;
and
``(ii) has not previously been altered, improved,
replaced, or repaired using assistance provided under
this subsection.
``(5) Treatment of Coverage Limits.--Any amount of coverage
provided for a property pursuant to this subsection shall not be
considered or counted for purposes of any limitation on coverage
applicable to such property under section 1306(b) and any claim on such
coverage shall not be considered a claim for purposes of section
1307(h) or subsection (a)(3) or (h)(3) of section 1366.
``(6) Implementation.--Notwithstanding any other provision of law,
the Administrator may implement this subsection by adopting 1 or more
standard endorsements to the Standard Flood Insurance Policy by
publication of such standards in the Federal Register, or by comparable
means.''.
SEC. 203. FLOOD MITIGATION ASSISTANCE GRANTS.
(a) Flood Mitigation Assistance Grant Program Priority.--Section
1366 of the National Flood Insurance Act (42 U.S.C. 4104c) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (1), (2), and (3)
as subparagraphs (A), (B), and (C), respectively, and
adjusting the margins accordingly;
(B) in the second sentence of the matter preceding
subparagraph (A), as so redesignated, by striking
``assistance shall be'' and inserting the following:
``assistance shall--
``(1) be'';
(C) in paragraph (1)(C), as so redesignated, by
striking the period at the end and inserting ``; and'';
and
(D) by adding at the end the following:
``(2) in addition to the requirement under paragraph
(1)(C), give priority to properties--
``(A) that are repetitive loss structures;
``(B) with respect to which the Administrator makes
a determination that the premium rates with respect to
a policy for flood insurance coverage under this
title--
``(i) are unaffordable; or
``(ii) will soon become unaffordable as a
result of a risk adjustment under Risk Rating
2.0, as in effect on the date of that
determination; and
``(C) for which aggregate losses exceed the
replacement value of the properties.''; and
(2) in subsection (h), by adding at the end the following:
``(4) Unaffordable.--The term `unaffordable' means, with
respect to the premium rates for a policy for flood insurance
coverage under this title, that, in a year, those rates are in
such an amount that the housing expenses (as defined in section
1308B(a)) of the household that is the subject of the policy
are, for that year, more than 30 percent of the adjusted gross
income (as defined in section 62 of the Internal Revenue Code
of 1986).''.
(b) Additional Mitigation Assistance.--
(1) Appropriations from general fund of treasury.--For each
of the first 5 full fiscal years after the date of enactment of
this Act, there is authorized to be appropriated $1,000,000,000
to the National Flood Mitigation Fund to provide mitigation
assistance under this subsection.
(2) Rule of construction.--The authorization of
appropriations under subparagraph (A) shall not be construed to
authorize the transfer or crediting to the National Flood
Mitigation Fund of any amounts from the National Flood
Insurance Fund.
SEC. 204. URBAN MITIGATION OPPORTUNITIES.
(a) Mitigation Strategies.--Section 1361(d)(1) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4102(d)(1)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking ``and'' at the end;
and
(3) by inserting after subparagraph (B) the following:
``(C) with respect to buildings in dense urban
environments, methods that can be deployed on a block
or neighborhood scale; and
``(D) elevation of mechanical systems; and''.
(b) Mitigation Credit.--Section 1308(k) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015(k)) is amended--
(1) by striking ``shall take into account'' and inserting
``shall--
``(1) take into account'';
(2) in paragraph (1), as so designated, by striking the
period at the end and inserting ``; and''; and
(3) by adding at the end the following:
``(2) offer a reduction of the risk premium rate charged to
a policyholder in an amount that is not less than 10 percent of
that rate if the policyholder implements any mitigation method
described in paragraph (1).''.
SEC. 205. COMMUNITY RATING SYSTEM REGIONAL COORDINATOR.
Section 1315(b) of the National Flood Insurance Act of 1968 (42
U.S.C. 4022(b)) is amended by adding at the end the following:
``(5) Regional coordinator.--
``(A) In general.--The Administrator shall appoint
a regional coordinator in each region served by a
Regional Office (as defined in section 501 of the
Homeland Security Act of 2002 (6 U.S.C. 311)) to
provide technical assistance to small communities to
enable those communities to effectively participate in
and benefit from the community rating system program.
``(B) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be
necessary to carry out this paragraph, which shall
remain available until expended.''.
SEC. 206. MITIGATION LOAN PROGRAM.
(a) Definition.--In this section, the term ``mitigation measure''
means, with respect to a structure, a measure undertaken to reduce the
risk of flood damage to the structure.
(b) Establishment.--The Administrator may establish a pilot program
through which the Administrator may provide low-interest loans to
policyholders under the National Flood Insurance Program for the
purposes described in subsection (c).
(c) Purposes of Loans.--A loan provided to a policyholder under the
pilot program established under subsection (b) shall be used to
undertake mitigation measures with respect to the insured property that
cost less than the cost of the estimated amount of premiums that would
be paid with respect to the property during the 50-year period
beginning in the year in which the loan is made and if those mitigation
measures were not undertaken.
(d) Sale of Property.--If a property with respect to which a loan
has been made under this section is sold, upon that sale, the
outstanding loan balance shall--
(1) be repaid using the proceeds of the sale; or
(2) carry over to the purchaser of the property if the
purchaser so consents before the execution of the sale.
SEC. 207. REVOLVING LOAN FUNDS.
(a) In General.--Chapter I of the National Flood Insurance Act of
1968 (42 U.S.C. 4011 et seq.) is amended by adding at the end the
following:
``SEC. 1326. STATE OR TRIBAL GOVERNMENT REVOLVING LOAN FUNDS FOR FLOOD
MITIGATION.
``(a) Definitions.--In this section:
``(1) Community rating system.--The term `Community Rating
System' means the community rating system program carried out
under section 1315(b).
``(2) Intended use plan.--The term `intended use plan'
means a plan prepared under subsection (d)(1).
``(3) Low-income geographic area.--The term `low-income
geographic area' means an area described in paragraph (1) or
(2) of section 301(a) of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3161(a)).
``(4) Low-income homeowner.--The term `low-income
homeowner' means the owner of a primary residence, the
household income of which in a taxable year is not more than 80
percent of the median income for the area in which the
residence is located.
``(5) Participating entity.--The term `participating
entity' means a State or Tribal government that--
``(A) has entered into an agreement under
subsection (b)(1); and
``(B) agrees to comply with the requirements of
this section.
``(6) Pre-FIRM building.--The term `pre-FIRM building'
means a building for which construction or substantial
improvement occurred before the later of--
``(A) December 31, 1974; or
``(B) the effective date of the rate map published
by the Administrator under section 1360 for the area in
which the building is located.
``(7) State or tribal government loan fund.--The term
`State or Tribal government loan fund' means a flood mitigation
assistance revolving loan fund established by a State or Tribal
government under this section.
``(8) Tribal government.--The term `Tribal government'
means the recognized government of an Indian tribe, or the
governing body of an Alaska Native regional or village
corporation, that has been determined eligible to receive
services from the Bureau of Indian Affairs.
``(b) General Authority.--
``(1) In general.--The Administrator may enter into an
agreement with a State or Tribal government to provide a
capitalization grant for the State or Tribal government to
establish a revolving fund that will provide funding assistance
to help homeowners, businesses, nonprofit organizations, and
communities reduce flood risk in order to decrease--
``(A) the loss of life and property;
``(B) the cost of flood insurance; and
``(C) Federal disaster payments.
``(2) Timing of deposit and agreements for distribution of
funds.--
``(A) In general.--Not later than the last day of
the fiscal year following the fiscal year in which a
capitalization grant is made to a participating entity
under paragraph (1), the participating entity shall--
``(i) deposit the grant in the State or
Tribal government loan fund of the
participating entity; and
``(ii) enter into 1 or more binding
agreements that provide for the participating
entity to distribute the grant funds for
purposes authorized under subsection (c) such
that--
``(I) in the case of the initial
grant made to a participating entity
under this section, not less than 75
percent of the amount of the grant
shall be distributed before the end of
the 2-year period beginning on the date
on which the funds are deposited in the
State or Tribal government loan fund of
the participating entity; and
``(II) in the case of any
subsequent grant made to a
participating entity under this
section, not less than 90 percent of
the amount of the grant shall be
distributed before the end of the 1-
year period beginning on the date on
which the funds are deposited in the
State or Tribal government loan fund of
the participating entity.
``(B) Noncompliance.--Except as provided in
subparagraph (C), if a participating entity does not
comply with subparagraph (A) with respect to a grant,
the Administrator shall reallocate the grant in
accordance with paragraph (3)(B).
``(C) Exception.--The Administrator may not
reallocate any funds under subparagraph (B) to a
participating entity that violated subparagraph (A)
with respect to a grant made during the same fiscal
year in which the funds to be reallocated were
originally made available.
``(3) Allocation.--
``(A) In general.--The Administrator shall allocate
amounts made available to carry out this section to
participating entities--
``(i) for the participating entities to
deposit in the State or Tribal government loan
fund established by the participating entity;
and
``(ii) except as provided in paragraph (6),
in accordance with the requirements described
in subparagraph (B).
``(B) Requirements.--The requirements described in
this subparagraph are as follows:
``(i) Fifty percent of the total amount
made available under subparagraph (A) shall be
allocated so that each participating entity
receives the percentage amount that is obtained
by dividing the number of properties that were
insured under the national flood insurance
program in that State or Tribal government
jurisdiction, as applicable, in the fiscal year
preceding the fiscal year in which the amount
is allocated by the total number of properties
that were insured under the national flood
insurance program in the fiscal year preceding
the fiscal year in which the amount is
allocated.
``(ii) Fifty percent of the total amount
made available under subparagraph (A) shall be
allocated so that each participating entity
receives a percentage of funds that is equal to
the product obtained under clause (iii)(IV)
with respect to that participating entity after
following the procedures described in clause
(iii).
``(iii) The procedures described in this
clause are as follows:
``(I) Divide the total amount
collected in premiums for properties
insured under the national flood
insurance program in each participating
entity during the previous fiscal year
by the number of properties insured
under the national flood insurance
program in that State or Tribal
government jurisdiction, as applicable,
for that fiscal year.
``(II) Add together each quotient
obtained under subclause (I).
``(III) For each participating
entity, divide the quotient obtained
under subclause (I) with respect to
that State or Tribal government
jurisdiction, as applicable, by the sum
obtained under subclause (II).
``(IV) For each participating
entity, multiply the amount that is 50
percent of the total amount made
available under subparagraph (A) by the
quotient obtained under subclause
(III).
``(iv) Except as provided in paragraph (5),
in a fiscal year--
``(I) a participating entity may
not receive more than 15 percent of the
total amount that is made available
under subparagraph (A) in that fiscal
year; and
``(II) if a participating entity,
based on the requirements under clauses
(i) through (iii), would, but for the
limitation under subclause (I) of this
clause, receive an amount that is
greater than the amount that the State
or Tribal government jurisdiction, as
applicable, is authorized to receive
under that subclause, the difference
between the authorized amount and the
amount otherwise due to the State or
Tribal government jurisdiction, as
applicable, under clauses (i) through
(iii) shall be allocated to other
participating entities--
``(aa) that, in that fiscal
year, have not received an
amount under subparagraph (A)
that is more than the
authorized amount under
subclause (I) of this clause;
and
``(bb) by using the
requirements under clauses (i)
through (iii), except that a
participating entity may
receive an allocation under
this subclause only if the
allocation does not result in
the State or Tribal government
jurisdiction, as applicable,
receiving a total amount for
the fiscal year under
subparagraph (A) that is
greater than the authorized
amount under subclause (I).
``(4) No revolving fund required.--
``(A) In general.--Notwithstanding any other
provision of this section, and subject to subparagraph
(B), a participating entity that receives less than
$4,000,000 under paragraph (3)(B) in a fiscal year may
distribute the funds directly in the form of grants or
technical assistance for a purpose described in
subsection (c)(2), without regard to whether the
participating entity has established a State or Tribal
government loan fund.
``(B) Matching.--A participating entity that
exercises the authority under subparagraph (A) in a
fiscal year shall provide matching funds from non-
Federal sources in an amount that is equal to 25
percent of the amount that the participating entity
receives under paragraph (3)(B) in that fiscal year for
purposes described in subparagraph (A).
``(5) Allocation of remaining funds.--After allocating
amounts made available to carry out this section for a fiscal
year in accordance with paragraph (3), the Administrator shall
allocate any remaining amounts made available for that fiscal
year to participating entities, using the procedures described
in clauses (i) through (iii) of paragraph (3)(B).
``(6) Reservation of funds.--The Administrator shall
reserve not more than 1.5 percent of the amount made available
to carry out this section in a fiscal year--
``(A) for administrative costs incurred by the
Federal Emergency Management Agency in carrying out
this section;
``(B) to provide technical assistance to recipients
of grants under this section; and
``(C) to enter into grant agreements with insular
areas, with the grant funds to be distributed--
``(i) according to criteria established by
the Administrator; and
``(ii) for a purpose described in
subsection (c)(2).
``(c) Use of Funds.--
``(1) In general.--Amounts deposited in a State or Tribal
government loan fund, including repayments of loans made from
the fund and interest earned on the amounts in the fund, shall
be used--
``(A) consistent with paragraph (2) and subsection
(g), to provide financial assistance for--
``(i) homeowners, businesses, and nonprofit
organizations that are eligible to participate
in the national flood insurance program; and
``(ii) any local government that
participates in the national flood insurance
program;
``(B) as a source of revenue and security for
leveraged loans, the proceeds of which shall be
deposited in the State or Tribal government loan fund;
or
``(C) for the sale of bonds as security for payment
of the principal and interest on revenue or general
obligation bonds issued by the participating entity to
provide matching funds under subsection (f), if the
proceeds from the sale of the bonds are deposited in
the State or Tribal government loan fund.
``(2) Purposes.--A recipient of financial assistance
provided through amounts from a State or Tribal government loan
fund--
``(A) shall use the amounts to reduce--
``(i) flood risk; or
``(ii) potential claims for losses covered
under the national flood insurance program;
``(B) shall use the amounts in a cost-effective
manner under requirements established by the
participating entity, which may require an applicant
for financial assistance to submit any information that
the participating entity considers relevant or
necessary before the date on which the applicant
receives the assistance;
``(C) shall use the amounts for projects that--
``(i) meet design and construction
standards established by the Administrator;
``(ii) are located in communities that--
``(I) participate in the national
flood insurance program; and
``(II) have developed a community
flood risk mitigation plan that has
been approved by the Administrator
under section 1366;
``(iii) address--
``(I) a repetitive loss structure
or a severe repetitive loss property;
or
``(II) flood risk in the 500-year
floodplain, areas of residual flood
risk, or other areas of potential flood
risk, as identified by the
Administrator; and
``(iv) address current risk and anticipate
future risk, such as sea-level rise, and flood
risk resulting from wildfire;
``(D) may use the amounts--
``(i) for projects relating to--
``(I) structural elevation;
``(II) floodproofing;
``(III) the relocation or removal
of buildings from the 100-year
floodplain or other areas of flood
risk, including the acquisition of
properties for such a purpose;
``(IV) environmental restoration
activities that directly reduce flood
risk, including green infrastructure;
``(V) any eligible activity
described in subparagraphs (A) through
(G) of section 1366(c)(3); or
``(VI) other activities determined
appropriate by the Administrator;
``(ii) with respect to a project described
in clause (i), only for expenditures directly
related to a project described in that clause,
including expenditures for planning, design,
and associated pre-construction activities;
``(iii) to acquire, for the purposes of
permanent protection, land, buildings, or a
conservation easement from a willing seller or
grantor, provided that--
``(I) the use of the land will be
committed in perpetuity, with
assurances from the recipient, that the
land will only be used for open spaces,
recreational use, or wetland management
practices; and
``(II) no new structure will be
erected on the property acquired other
than--
``(aa) a public facility
that is open on all sides and
functionally related to a
designated open space;
``(bb) a restroom; or
``(cc) a structure that the
Administrator approves in
writing before the commencement
of a construction of the
structure; and
``(iv) the recipient may make no subsequent
application for disaster assistance for any
purpose and no such assistance will be provided
to the applicant from any Federal source;
``(E) may not use the amounts--
``(i) to construct buildings or expand
existing buildings, unless the activity is for
the purpose of flood mitigation;
``(ii) to improve any structure, unless the
recipient has obtained flood insurance
coverage, which shall be maintained for the
useful life of the structure, in an amount that
is not less than the lesser of--
``(I) the eligible project costs
with respect to the structure; and
``(II) the maximum insurable limit
for the structure under the national
flood insurance program coverage for
the structure;
``(iii) to improve a residential property
with an appraised value that is not less than
125 percent of the limitation on the maximum
original principal obligation of a conventional
mortgage that may be purchased by the Federal
National Mortgage Association or the Federal
Home Loan Mortgage Corporation in the area in
which the property is located, as established
under section 302(b)(2) of the Federal National
Mortgage Association Charter Act (12 U.S.C.
1717(b)(2)) and section 305(a)(2) of the
Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1454(a)(2));
``(iv) for the direct benefit of a
homeowner if the annual household adjusted
gross income of the homeowner during the
previous fiscal year was not less than
$200,000, as annually adjusted by the
Administrator to reflect changes in the
Consumer Price Index for All Urban Consumers,
as published by the Bureau of Labor Statistics
of the Department of Labor and rounded to the
nearest $25; or
``(v) to acquire real property or an
interest in real property unless the property
is purchased from a willing seller; and
``(F) to the maximum extent practicable, shall, in
using those amounts, give priority to projects that
assist low-income homeowners and low-income
geographical areas.
``(d) Intended Use Plans.--
``(1) In general.--After providing the opportunity for
public review and comment, each participating entity shall
annually prepare a plan that identifies, for the year following
the date of issuance of the intended use plan, the intended
uses of the amounts available in the State or Tribal government
loan fund of the participating entity.
``(2) Consultation during preparation.--Each participating
entity, in preparing an intended use plan, shall ensure that
the State or Tribal government agency with primary
responsibility for floodplain management--
``(A) provides oversight with respect to the
preparation of the intended use plan; and
``(B) consults with any other appropriate State or
Tribal government agency, including agencies
responsible for coastal and environmental management.
``(3) Contents.--A participating entity shall, in each
intended use plan--
``(A) include--
``(i) an explanation of the mitigation and
resiliency benefits the participating entity
intends to achieve, including by--
``(I) reducing future damage and
loss associated with flooding;
``(II) reducing the number of
severe repetitive loss properties and
repetitive loss structures in the State
or Tribal government jurisdiction, as
applicable;
``(III) decreasing the number of
flood insurance claims in the State or
Tribal government jurisdiction, as
applicable; and
``(IV) increasing the rating under
the Community Rating System for
communities in the State or Tribal
government jurisdiction, as applicable;
``(ii) information with respect to the
availability of, and the application process
for receiving, financial assistance from the
State or Tribal government loan fund of the
participating entity;
``(iii) the criteria and methods
established for the distribution of amounts
from the State or Tribal government loan fund
of the participating entity;
``(iv) the amount of financial assistance
that the participating entity anticipates
providing to--
``(I) local government projects;
and
``(II) projects for homeowners,
business, or nonprofit organizations;
``(v) the expected terms of the assistance
provided under clause (iv); and
``(vi) a description of the financial
status of the State or Tribal government loan
fund and the short-term and long-term goals of
the State or Tribal government loan fund; and
``(B) provide, to the maximum extent practicable,
that priority for the use of amounts from the State or
Tribal government loan fund shall be given to projects
that--
``(i) address severe repetitive loss
properties and repetitive loss structures;
``(ii) assist low-income homeowners and
low-income geographic areas; and
``(iii) address flood risk for pre-FIRM
buildings.
``(4) Publication.--Each participating entity shall publish
and periodically update a list of all projects receiving
funding from the State or Tribal government loan fund of the
participating entity, which shall include identification of--
``(A) the community in which the project is
located;
``(B) the type and amount of assistance provided
for each project; and
``(C) the expected funding schedule and date of
completion of each project.
``(e) Fund Management.--Amounts in a State or Tribal government
loan fund shall--
``(1) remain available for providing financial assistance
under this section until distributed;
``(2) if the amounts are not required for immediate
distribution or expenditure, be invested in interest-bearing
obligations; and
``(3) except as provided in subsection (i), include only--
``(A) amounts received from capitalization grants
made under this section;
``(B) repayments of loans made from the fund; and
``(C) interest earned on amounts in the fund.
``(f) Matching Funds.--
``(1) Full grant.--On or before the date on which a
participating entity receives a capitalization grant, the
participating shall deposit into the State or Tribal government
loan fund of the participating entity, in addition to the
amount of the capitalization grant, an amount from non-Federal
sources that is not less than 20 percent of the total amount of
the capitalization grant.
``(2) Reduced grant.--If, with respect to a capitalization
grant, a participating entity deposits in the State or Tribal
government loan fund of the participating entity an amount from
non-Federal sources that is less than 20 percent of the total
amount of the capitalization grant that the participating
entity would otherwise receive, the Administrator shall--
``(A) reduce the amount of the capitalization grant
received by the participating entity to the amount that
is 5 times the amount so deposited; and
``(B) in accordance with subsection (b)(5),
allocate the difference between the amount that the
participating entity would have received if the
participating entity had complied with paragraph (1)
and the amount of the reduced grant that the
participating entity receives under subparagraph (A).
``(g) Types of Assistance.--Unless otherwise prohibited by law of a
participating entity, the participating entity may use the amounts
deposited into a State or Tribal government loan fund under this
section only--
``(1) to make a loan, on the condition that--
``(A) the interest rate for the loan is not more
than the market interest rate;
``(B) the recipient of the loan will begin making
principal and interest payments on the loan not later
than 1 year after the date on which the project for
which the loan was made is completed;
``(C) the loan will be fully amortized not later
than 20 years after the date on which the project for
which the loan was made is completed, except that, in
the case of a loan made for a project in a low-income
geographic area or to a low-income homeowner, the State
may provide a longer amortization period for the loan
if that longer period--
``(i) ends on a date that is not later than
30 years after the date on which the project is
completed; and
``(ii) is not longer than the expected
design life of the project;
``(D) the recipient of the loan demonstrates, based
on verified and documented information that, as of the
date on which the loan is made, the recipient has a
reasonable ability to repay the loan, according to the
terms of the loan, except that this subparagraph may
not be construed to authorize any reduction or
limitation in efforts to comply with the requirements
of subsection (c)(2)(F); and
``(E) payments of principal and interest with
respect to the loan will be deposited into the State or
Tribal government loan fund;
``(2) to buy or refinance the debt obligation of a local
government at an interest rate that is not more than the market
interest rate;
``(3) to guarantee, or purchase insurance for, a local
obligation, the proceeds of which finance a project eligible
for assistance under this section, if the guarantee or
purchase, as applicable, would--
``(A) improve credit market access; or
``(B) reduce the interest rate with respect to the
obligation;
``(4) as a source of revenue or as security for the payment
of principal and interest on revenue or general obligation
bonds issued by the participating entity if the proceeds of the
sale of the bonds will be deposited into the State or Tribal
government loan fund; or
``(5) to earn interest on those amounts.
``(h) Assistance for Low-Income Homeowners and Low-Income
Geographic Areas.--
``(1) In general.--Notwithstanding any other provision of
this section, if a participating entity uses amounts from a
State or Tribal government loan fund to provide financial
assistance under subsection (c) in a low-income geographic area
or to a low-income homeowner, the participating entity may
provide additional subsidization to the recipient of the
assistance, including forgiveness of the principal of a loan.
``(2) Limitation.--For each fiscal year, the total amount
of additional subsidization provided by a participating entity
under paragraph (1) may not exceed 30 percent of the amount of
the capitalization grant allocated to the participating entity
for that fiscal year.
``(i) Administration of Fund.--
``(1) In general.--A participating entity may combine the
financial administration of a State or Tribal government loan
fund with the financial administration of any other revolving
fund established by the participating entity if--
``(A) combining the administration of the funds
would--
``(i) be convenient and avoid
administrative costs; and
``(ii) not violate the law of the
participating entity; and
``(B) the Administrator determines that--
``(i) amounts obtained from a grant made
under this section, amounts obtained from the
repayment of a loan made from a State or Tribal
government loan fund, and interest earned on
amounts in a State or Tribal government loan
fund will be--
``(I) accounted for separately from
amounts from other revolving funds; and
``(II) used only for purposes
authorized under this section; and
``(ii) after consulting with the
appropriate State or Tribal government
agencies, the authority to establish assistance
priorities and carry out oversight and related
activities, other than financial
administration, with respect to flood
assistance remains with the State or Tribal
government agency with primary responsibility
for floodplain management.
``(2) Administrative and technical costs.--
``(A) In general.--For each fiscal year, a
participating entity may use the amount described in
subparagraph (B) to--
``(i) pay the reasonable costs of
administration of the programs under this
section, including the recovery of reasonable
costs incurred in establishing a State or
Tribal government loan fund;
``(ii) provide appropriate oversight of
projects authorized under this section; and
``(iii) provide technical assistance and
outreach to recipients in the State or Tribal
government jurisdiction of amounts under this
section, including with respect to updating
hazard mitigation plans and participating in
the Community Rating System, in an amount that
is not more than 4 percent of the funds made
available to the State or Tribal government
jurisdiction under this section.
``(B) Description.--The amount described in this
subparagraph is an amount equal to the sum of--
``(i) any fees collected by a participating
entity to recover the costs described in
subparagraph (A)(i), regardless of the source;
and
``(ii) the greatest of--
``(I) $400,000;
``(II) 0.2 percent of the value of
the State or Tribal government loan
fund of a participating entity, as of
the date on which the valuation is
made; and
``(III) an amount equal to 7
percent of all grant awards made to a
participating entity for the State or
Tribal government loan fund of the
participating entity under this section
for the fiscal year.
``(3) Audit and report.--
``(A) Audit requirement.--Not less frequently than
biennially, each participating entity shall conduct an
audit of the State or Tribal government loan fund of
the participating entity.
``(B) Report.--Each participating entity shall
submit to the Administrator a biennial report regarding
the activities of the participating entity under this
section during the period covered by the report,
including--
``(i) the result of any audit conducted by
the participating entity under subparagraph
(A); and
``(ii) a review of the effectiveness of the
State or Tribal government loan fund of the
participating entity with respect to--
``(I) the intended use plans of the
participating entity; and
``(II) meeting the objectives
described in subsection (b)(1).
``(4) Oversight.--In conducting oversight with respect to
State or Tribal government loan funds established under this
section, the Administrator--
``(A) shall--
``(i) periodically audit the funds in
accordance with procedures established by the
Comptroller General of the United States; and
``(ii) not less frequently than once every
4 years, review each State or Tribal government
loan fund to determine the effectiveness of the
fund in reducing flood risk; and
``(B) may, at any time--
``(i) make recommendations to a
participating entity with respect to the
administration of the State or Tribal
government loan fund of the participating
entity; or
``(ii) require specific changes with
respect to a State or Tribal government loan
fund of the participating entity in order to
improve the effectiveness of the fund.
``(j) Liability Protections.--The Federal Emergency Management
Agency shall not be liable for any claim based on the exercise or
performance of, or the failure to exercise or perform, a discretionary
function or duty by the Agency, or an employee of the Agency, in
carrying out this section.
``(k) Regulations.--The Administrator shall promulgate such
guidance or regulations as may be necessary to carry out this section,
including guidance or regulations that--
``(1) ensure that each participating entity to which funds
are allocated under this section uses the funds as efficiently
as possible;
``(2) reduce, to the maximum extent practicable, waste,
fraud, and abuse with respect to the implementation of this
section; and
``(3) require any party that receives funds directly or
indirectly under this section, including a participating entity
and a recipient of amounts from a State or Tribal government
loan fund, to use procedures with respect to the management of
the funds that conform to generally accepted accounting
standards.
``(l) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section
for fiscal years 2024 through 2033.''.
(b) Consideration of Mitigation Measures Funded by State Loan Funds
in Flood Insurance Premium Rates.--
(1) Estimated rates.--Section 1307(a)(1)(A)(ii) of the
National Flood Insurance Act of 1968 (42 U.S.C.
4014(a)(1)(A)(ii)) is amended by striking ``and similar
measures'' and inserting ``similar measures, any activities
funded through amounts from a State or Tribal government loan
fund established under section 1327''.
(2) Chargeable rates.--Section 1308(b)(1) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4015(b)(1)) is amended
by striking ``and similar measures'' and inserting ``similar
measures, any activities funded through amounts from a State or
Tribal government loan fund established under section 1327''.
SEC. 208. MAPPING MODERNIZATION.
(a) Amendments to the Biggert-Waters Flood Insurance Reform Act of
2012.--The Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C.
4004 et seq.) is amended--
(1) in section 100215 (42 U.S.C. 4101a)--
(A) in subsection (b)--
(i) in paragraph (1)--
(I) by redesignating subparagraphs
(A) through (E) as subparagraphs (B)
through (F), respectively;
(II) by inserting before
subparagraph (B), as so redesignated,
the following:
``(A) the Director of the United States Geological
Survey;''; and
(III) in subparagraph (F), as so
redesignated--
(aa) in the matter
preceding clause (i), by
striking ``16'' and inserting
``17'';
(bb) in clause (xiii), by
striking ``and'' at the end;
(cc) in clause (xiv), by
striking the period at the end
and inserting ``; and''; and
(dd) by adding at the end
the following:
``(xv) an expert in the field of
catastrophic risk modeling.'';
(ii) in paragraph (2), in the second
sentence, by striking ``paragraph (1)(E)'' and
inserting ``paragraph (1)(F)''; and
(iii) by adding at the end the following:
``(3) Conflicts of interest.--A member of the Council--
``(A) may not, while serving on the Council, be
employed or retained by--
``(i) a Federal Emergency Management Agency
contractor or consultant; or
``(ii) a nongovernmental entity that was
awarded a Federal grant during the 5-year
period preceding the date on which the member
was appointed to the Council; and
``(B) may not have been employed by a Federal
Emergency Management Agency contractor or consultant
during the 5-year period preceding the date on which
the member was appointed to the Council.''; and
(B) by adding at the end the following:
``(m) Private or Community Flood Maps.--
``(1) Standards and procedures.--In addition to the other
duties of the Council under this section, not later than 1 year
after the date of enactment of this subsection, the Council
shall develop and establish a set of standards, guidelines, and
procedures for--
``(A) State and local governments, federally or
State-recognized metropolitan planning organizations
(commonly known as `MPOs'), federally or State-
recognized councils of local governments, and federally
or State-recognized rural transportation planning
organizations to use in mapping flood risks and
developing alternative maps to the flood insurance rate
maps developed by the Administrator; and
``(B) certification, by the Administrator not later
than 90 days after the date on which a map developed
under subparagraph (A) is submitted to the
Administrator, for use under the National Flood
Insurance Program in the case of any area covered by a
flood insurance rate map developed or approved by the
Administrator that has not been updated or reissued
during the preceding 3-year period.
``(2) Treatment.--On and after the date on which the
Administrator certifies a map under paragraph (1)(B), and
subject to the requirements of section 1363 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4104), the map--
``(A) shall be considered the flood insurance rate
map in effect for all purposes of the National Flood
Insurance Program with respect to the area covered by
the map; and
``(B) may not be revised, updated, or replaced in
accordance with the standards, guidelines, and
procedures established under paragraph (1) before the
expiration of the 3-year period beginning on that date
of certification.
``(3) Exemption from rulemaking.--Until the date on which
the Administrator promulgates regulations implementing
paragraphs (1) and (2), the Administrator may adopt policies
and procedures, notwithstanding any other provision of law,
necessary to implement those paragraphs without regard to
section 553 of title 5, United States Code, and without
conducting regulatory analyses otherwise required by statute,
regulation, or Executive order.''; and
(2) in section 100216 (42 U.S.C. 4101b)--
(A) in subsection (b)--
(i) in paragraph (1)--
(I) in subparagraph (A)--
(aa) in clause (v), by
striking ``and'' at the end;
(bb) in clause (vi), by
adding ``and'' at the end; and
(cc) by inserting after
clause (vi) the following:
``(vii) all other areas of the United
States that are not described in clauses (i)
through (vi);'';
(II) in subparagraph (B), by
striking ``and'' at the end;
(III) in subparagraph (C), by
striking the period at the end and
inserting ``, including the most
recently available and best remote
sensing technology;''; and
(IV) by adding at the end the
following:
``(D) when appropriate, partner with other Federal
agencies, States, and private entities in order to meet
the objectives of the program; and
``(E) consult and coordinate with the Secretary of
Defense, the Director of the United States Geological
Survey, the Director of the Fish and Wildlife Service,
and the Administrator of the National Oceanic and
Atmospheric Administration to obtain the most up-to-
date maps and other information of those agencies,
including information relating to topography, water
flow, watershed characteristics, and any other issues
that are relevant to identifying, reviewing, updating,
maintaining, and publishing National Flood Insurance
Program rate maps.''; and
(ii) in paragraph (3)--
(I) in subparagraph (A), by
redesignating clauses (i) and (ii) as
subclauses (I) and (II), respectively,
and adjusting the margins accordingly;
(II) by redesignating subparagraphs
(A) through (E) as clauses (i) through
(v), respectively, and adjusting the
margins accordingly;
(III) in the matter preceding
clause (i), as so redesignated, by
striking ``Administrator shall
include--'' and inserting the
following: ``Administrator--
``(A) shall include--'';
(IV) in subparagraph (A)(v), as so
redesignated, by striking the period at
the end and inserting ``; and''; and
(V) by adding at the end the
following:
``(B) may include--
``(i) any relevant information that is
obtained under paragraph (1)(E); and
``(ii) cadastral features, including, for
each cadastral feature--
``(I) the associated parcel
identification data for that feature;
and
``(II) to the maximum extent
practicable, using public and private
sector address data, the address of
that feature.'';
(B) in subsection (c)(2)--
(i) in subparagraph (B), by striking
``and'' at the end;
(ii) in subparagraph (C), by striking the
period at the end and inserting a semicolon;
and
(iii) by adding at the end the following:
``(D) not later than 5 years after the date on
which the National Geodetic Survey completes the
modernization of the National Spatial Reference System
in 2022, updated to conform with the geospatial data
provided by that system; and
``(E) spatially accurate in accordance with the
common protocols for geographic information systems
under applicable law.'';
(C) by redesignating subsection (f) as subsection
(g);
(D) by inserting after subsection (e) the
following:
``(f) Incorporating Building-Specific Flood Risk Information.--
``(1) Establishment.--
``(A) In general.--Not later than 5 years after the
date of enactment of the National Flood Insurance
Program Reauthorization and Reform Act of 2025, the
Administrator, in coordination with, and as recommended
by, the Technical Mapping Advisory Council, shall
establish a dynamic, database-derived digital display
environment for flood hazard risk production and
dissemination.
``(B) Consultation with states and communities.--In
designing and constructing the environment under
subparagraph (A), the Administrator shall--
``(i) leverage and partner with States and
communities that have successfully implemented
the same approach; and
``(ii) consider adopting the techniques and
technologies used by States and communities
described in clause (i) and applying them
nationwide.
``(2) Digital display.--
``(A) In general.--In carrying out paragraph (1),
the Administrator shall create a digital display
prompted through dynamic querying of a spatial,
relational building database that includes--
``(i) special flood hazard areas and base
flood elevations for purposes of lender
compliance with the requirements under section
102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a); and
``(ii) structure-specific flood risk
information, including, for each property
address--
``(I) the spatial footprint and
elevation of the structure relative to
special flood hazard areas and base
flood elevations;
``(II) elevation data applicable to
the property;
``(III) any letter of map changes;
``(IV) to the maximum extent
practicable, the full risk premium rate
estimated for the structure under
section 1307(a)(1) of the National
Flood Insurance Act of 1968 (42 U.S.C.
4014(a)(1)) based on elevation data
and, where applicable, the level of
protection provided by levee systems;
``(V) the disclosure described in
section 1308(l) of the National Flood
Insurance Act of 1968 (42 U.S.C.
4015(l)), which shall include--
``(aa) the extent to which,
if any, the chargeable premium
rate applicable to the property
is less than the full risk
premium rate under section
1307(a)(1) of that Act (42
U.S.C. 4014(a)(1)); and
``(bb) an explanation of
the difference described in
item (aa) and the methodology
used to rate the property;
``(VI) the estimated cost to repair
the structure in the case of damage
from floods with recurrence intervals
ranging from the 10 percent annual
chance event to the 0.2 percent annual
chance event;
``(VII) the cost-effectiveness of
mitigating the structure using common
methods and how the chargeable premium
rate would change based on each
mitigation method; and
``(VIII) the claims history of the
structure, including the amount and
date of each loss.
``(B) Privacy requirements.--With respect to the
database described in subparagraph (A), including any
data used to create that database, the Administrator
may not disseminate the database to any person other
than the owner or leaseholder of a property identified
in the database.
``(3) Database.--
``(A) In general.--The Administrator shall--
``(i) develop a spatial, relational
database of buildings for which flood hazard
has been identified through the National Flood
Insurance Program; and
``(ii) obtain the data necessary to support
the digital display created under paragraph
(2).
``(B) Data.--The data obtained under subparagraph
(A) shall include, at a minimum--
``(i) footprints and elevations (including
lowest adjacent grade and first floor) from
Light Detection and Ranging (commonly known as
`LiDAR') data collections or other data
collection methods that meet or exceed the
standards for buildings, as determined by the
Administrator;
``(ii) elevation data;
``(iii) parcel, address, and imagery data
necessary for the identification, assessment,
and reduction of flood hazards for individual
properties;
``(iv) flood insurance rate maps, studies,
and supporting data;
``(v) letters of map change; and
``(vi) any other data that the
Administrator determines necessary to collect
to meet the objectives of this section.
``(4) Data procurement.--The Administrator shall obtain any
data necessary to establish the environment under paragraph
(1), including by--
``(A) directing communities participating in the
National Flood Insurance Program, by regulation, to
collect and supply information, including elevation
data, for each structure that obtains a construction or
other development permit within--
``(i) a special flood hazard area; or
``(ii) an advisory special flood hazard
area adopted by the community;
``(B) issuing guidelines and standards, as
determined by the Administrator;
``(C) partnering with other Federal, State, local,
and private stakeholders to the greatest extent
possible to obtain and share existing data that meets
or exceeds the standards determined by the
Administrator under subparagraph (B); and
``(D) contracting with private companies to obtain
new LiDAR data collections or elevation data.
``(5) NFIP premium credit.--The Administrator shall provide
a 1-time premium credit of not more than $500 to a policyholder
for the purchase of an elevation certificate.
``(6) Mass letters of map change.--In coordination with
States and communities that have successfully implemented a
dynamic, database-derived digital display environment for flood
hazard risk production and dissemination, the Administrator
shall issue guidelines for the adoption and integration into
the program established under subsection (a) of LiDAR-based
letter of map amendment approaches.
``(7) Annual report.--The Administrator shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of
Representatives an annual progress report on the implementation
of this subsection, which shall include recommendations to
reduce the cost and improve the implementation of this
subsection.''; and
(E) in subsection (g), as so redesignated--
(i) by striking ``this section
$400,000,000'' and inserting the following:
``this section--
``(1) $500,000,000''; and
(ii) by striking the period at the end and
inserting the following: ``; and
``(2) $500,000,000 for each of fiscal years 2024 through
2029.''.
(b) Appeals.--
(1) In general.--
(A) Right to appeal.--Section 1360 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4101) is amended
by adding at the end the following:
``(k) Appeals of Existing Maps.--
``(1) Right to appeal.--Subject to paragraph (6), a State
or local government, or the owner or lessee of real property,
that makes a formal request to the Administrator to update a
flood insurance rate map that the Administrator denies may at
any time appeal the denial in accordance with this subsection.
``(2) Basis for appeal.--The basis for an appeal under this
subsection shall be the possession of knowledge or information
that--
``(A) the base flood elevation level or designation
of any aspect of a flood insurance rate map is
scientifically or technically inaccurate; or
``(B) factors exist that mitigate the risk of
flooding, including ditches, banks, walls, vegetation,
levees, lakes, dams, reservoirs, basin, retention
ponds, and other natural or manmade topographical
features.
``(3) Appeals process.--
``(A) Administrative adjudication.--The
Administrator shall determine an appeal under this
subsection by making a final adjudication on the
record, after providing an opportunity for an
administrative hearing.
``(B) Rights upon adverse decision.--
``(i) Optional arbitration.--If an appeal
determined under subparagraph (A) does not
result in a decision in favor of the State,
local government, owner, or lessee, that party
may request that an appeal of the adverse
decision be heard--
``(I) through independent, non-
binding arbitration; or
``(II) by the Scientific Resolution
Panel provided for in section 1363A.
``(ii) Process.--Notwithstanding any
provision of section 1363A(c)(4) regarding the
binding nature of the recommendations of the
Scientific Resolution Panel, the Administrator
shall establish a process for the purposes of
clause (i) under which an arbitrator or the
Scientific Resolution Panel, as applicable,
provides a non-binding recommendation to the
Administrator.
``(4) Relief.--
``(A) Wholly successful appeals.--If the
Administrator determines in an appeal under this
subsection that the property of a policyholder that had
been included in a special flood hazard area under the
flood insurance rate map is actually not in a special
flood hazard area--
``(i) the policyholder may cancel the
policy at any time during the year in which the
Administrator makes the determination; and
``(ii) the Administrator shall provide the
policyholder a refund equal to the amount of--
``(I) any premiums that the
policyholder paid during the year
described in clause (i); and
``(II) any premiums that the
policyholder paid for flood insurance
coverage that the policyholder was
required to purchase or maintain during
the 2-year period preceding the year
described in clause (i).
``(B) Partially successful appeals.--If the
Administrator determines in an appeal under this
subsection that mitigating factors have reduced, but
not eliminated, the risk of flooding to a property, the
Administrator shall--
``(i) reduce the amount of flood insurance
coverage required to be maintained for the
property by the ratio of the successful portion
of the appeal as compared to the entire appeal;
and
``(ii) provide the policyholder a refund
equal to the difference between--
``(I) the amount of any premiums
that the policyholder paid during the
period--
``(aa) beginning on the
later of--
``(AA) the date on
which the mitigating
factor was created; or
``(BB) January 1 of
the second year
preceding the date on
which the determination
is made; and
``(bb) ending on the date
on which the reduction in the
amount of flood insurance
required, as described in
clause (i), takes effect; and
``(II) the amount of premiums that
the policyholder would have been
required to pay if the reduced amount
of flood insurance coverage required,
as described in clause (i), had been in
effect during the period described in
subclause (I) of this clause.
``(C) Additional relief.--The Administrator may
provide additional refunds in excess of the amounts
required under subparagraphs (A) and (B) if the
Administrator determines that such additional refunds
are warranted.
``(5) Recovery of costs.--
``(A) Appeal expenses.--If a State or local
government, or the owner or lessee of real property,
incurs any expense in connection with an appeal under
this subsection that is based on a scientific or
technical error made by the Administrator and that is
successful in whole or part regarding the designation
of the base flood elevation or any aspect of a flood
insurance rate map, including elevation or designation
of a special flood hazard area, the Administrator shall
reimburse the State, local government, owner, or lessee
in accordance with subparagraph (B).
``(B) Reimbursable expenses.--The Administrator--
``(i) may reimburse a party under
subparagraph (A) for reasonable expenses
described in that subparagraph--
``(I) including for a service
provided by a surveyor, engineer, or
scientific expert; and
``(II) to the extent measured by
the ratio of the successful portion of
the appeal as compared to the entire
appeal; and
``(ii) may not reimburse a party under
subparagraph (A) for--
``(I) the cost of legal services;
or
``(II) the payment of any fee or
expense, the payment of which was
agreed to be contingent upon the result
of the appeal.
``(6) Guidance.--The Administrator shall issue guidance to
implement this subsection, which shall not be subject to the
notice and comment requirements under section 553 of title 5,
United States Code.''.
(B) Technical and conforming amendments.--Section
1310(a) of the National Flood Insurance Act of 1968 (42
U.S.C. 4017(a)) is amended--
(i) in paragraph (7), by striking ``and''
at the end;
(ii) in paragraph (8), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(9) for providing reimbursements of expenses of flood
insurance rate map appeals under section 1360(k)(5).''.
(2) Deadline for issuance of guidance.--Not later than 180
days after the date of enactment of this Act, the Administrator
shall issue the guidance required under subsection (k)(6) of
section 1360 of the National Flood Insurance Act of 1968 (42
U.S.C. 4101), as added by paragraph (1)(A).
(3) Issuance of regulations for map appeals.--Not later
than 180 days after the date of enactment of this Act, the
Administrator shall issue the regulations required to be issued
under subsection (f) of section 1363 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4104) and any relevant
guidance to implement that subsection.
SEC. 209. APPEALS.
Not later than 180 days after the date of enactment of this Act,
the Administrator shall establish a fair, transparent, and streamlined
process to manage disputes regarding chargeable premium rates
prescribed under section 1308 of the National Flood Insurance Act of
1968 (42 U.S.C. 4015), as amended by this Act, including a dispute
regarding, with respect to a property--
(1) the distance of the property from an ocean, coastline,
lake, or river;
(2) the elevation of the property;
(3) the ground elevation of the property;
(4) the first floor height of the property;
(5) the type of foundation with respect to the property; or
(6) the quality of any levee on the property.
SEC. 210. LEVEE-PROTECTED AREAS.
Section 100216(b) of the Biggert-Waters Flood Insurance Reform Act
of 2012 (42 U.S.C. 4101b(b)) is amended by adding at the end the
following:
``(4) Areas protected by levee systems.--
``(A) Applicability.--To facilitate the
implementation of this section, and notwithstanding any
other provision of law, this paragraph shall apply to a
community in which the Administrator establishes rates
for flood insurance under the National Flood Insurance
Program in a levee-protected area.
``(B) Non-accredited levee systems.--
``(i) Assessment of protection provided by
non-accredited levee systems.--With respect to
an area in which the pertinent levee system
fails to meet the minimum design, operation,
and maintenance standards of the National Flood
Insurance Program described in section 65.10 of
title 44, Code of Federal Regulations, or any
successor regulation, for levee accreditation
on a National Flood Insurance Program rate map
under the Risk Rating 2.0 methodology (or any
substantially similar methodology), the
Administrator shall, not later than 1 year
after the date of enactment of this paragraph--
``(I) through rules issued under
section 553 of title 5, United States
Code, establish--
``(aa) the analysis that
the Administrator will perform
to determine the level of
protection provided by the non-
accredited levee system; and
``(bb) the procedure by
which the Administrator will
establish rates for flood
insurance under the National
Flood Insurance Program for
that area; and
``(II)(aa) issue guidance with
respect to the matters described in
items (aa) and (bb) of subclause (I);
or
``(bb) use the levee analysis and
mapping procedure of the Federal
Emergency Management Agency, as in
effect on the date of enactment of this
paragraph, for purposes of updating
flood insurance rate maps and
establishing rates for flood insurance
under the National Flood Insurance
Program, working with established Local
Levee Partnership Teams or their
equivalent for verification of accurate
results.
``(ii) Rate for areas without sufficient
data.--With respect to a structure that is
located in an area described in clause (i), and
for which the Administrator does not have
sufficient data to assess risk, the
Administrator may not increase the rates for
flood insurance under the National Flood
Insurance Program for that structure until the
Administrator--
``(I) carries out clause (i) with
respect to that area; and
``(II) makes available to all
parties affected by the increased rate
the data on which the Administrator is
relying in establishing that increased
rate.
``(C) Mandatory purchase requirement for levee
systems.--In any area in which the pertinent levee
system meets the minimum design, operation, and
maintenance standards described in section 65.10 of
title 44, Code of Federal Regulations, or any successor
regulation, the Administrator may not--
``(i) designate the levee-protected area a
special flood hazard area; or
``(ii) impose any requirement to purchase
flood insurance for a structure located in the
area.
``(D) Appeals process.--
``(i) In general.--Not later than 1 year
after the date of enactment of this paragraph,
the Administrator shall develop an appeals
process for communities located within a levee-
protected area described in this paragraph that
disputes the assessment made by the
Administrator of the level of protection
provided by the levee or the residual risk
associated with the levee.
``(ii) Definition requirements.--With
respect to the appeals process established
under clause (i)--
``(I) subject to subclause (II),
the Administrator shall make clear
which definition of the terms `levee'
and `residual risk' shall apply for the
purposes of the appeal; and
``(II) an appellant in an appeal
brought under that process may require
that the Administrator use the
definition of the term `levee' in
section 59.1 of title 44, Code of
Federal Regulations, or any successor
regulation.''.
SEC. 211. COMMUNITY-WIDE FLOOD MITIGATION ACTIVITIES.
It is the sense of Congress that the Administrator should consider
flood mitigation activities that--
(1) provide benefits to an entire floodplain or community,
or to a portion of such a community;
(2) consider all available and practicable approaches; and
(3) the Administrator determines--
(A) are technically feasible;
(B) have the highest net benefits; and
(C) are consistent with mitigation plans approved
by the Administrator.
SEC. 212. PREMIUM CALCULATOR.
(a) Definitions.--In this section--
(1) the term ``covered property'' means a property for
which insurance is provided under the National Flood Insurance
Program; and
(2) the term ``premium rates'' means chargeable premium
rates prescribed under section 1308 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015), as amended by this Act.
(b) Requirements.--The Administrator shall take the following
actions:
(1) Not later than 60 days after the date of enactment of
this Act, make public all formulas used by the Administrator to
calculate the value of mitigation credits provided with respect
to covered properties, including, at a minimum, credits for--
(A) installing a flood opening;
(B) elevating such a property onto a post, pile, or
pier; and
(C) elevating machinery and equipment above the
lowest floor of such a property.
(2) Not later than 90 days after the date of enactment of
this Act, establish a tool that allows members of the public to
estimate premium rates for covered properties under the Risk
Rating 2.0 program (or any similar methodology) within a
reasonable margin of error based on user inputs, which shall
include a mechanism for determining how the premium rates for a
covered property would change based on taking a particular
mitigation action, including an action described in
subparagraph (A), (B), or (C) of paragraph (1) with respect to
the covered property.
(3) Not later than 1 year after the date of enactment of
this Act, and annually thereafter, publish online, for each
State, county, and zip code in the United States, a
distribution showing the median, mean, lower and upper
quartiles, maximum, and minimum--
(A) premium rates; and
(B) full risk premium rates under section
1307(a)(1) of the National Flood Insurance Act of 1968
(42 U.S.C. 4014(a)(1)), as amended by this Act.
SEC. 213. CONSIDERATION OF MITIGATION PROJECTS IN FLOOD INSURANCE
PREMIUM RATES.
(a) Estimated Rates.--Section 1307(a)(1)(A)(ii) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(A)(ii)), as amended
by section 207(b)(1) of this Act, is amended by inserting after
``section 1327'' the following: ``, and any mitigation project carried
out by the Army Corps of Engineers or under the community development
block grant program for disaster recovery or mitigation, section 203 or
205 of the Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5133, 5135), or the Building Resilient Infrastructure
and Communities program of the Federal Emergency Management Agency''.
(b) Chargeable Rates.--Section 1308(b)(1) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015(b)(1)), as amended by section
207(b)(2) of this Act, is amended by inserting after ``section 1327''
the following: ``, and any mitigation project carried out by the Army
Corps of Engineers or under the community development block grant
program for disaster recovery or mitigation, section 203 or 205 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5133, 5135), or the Building Resilient Infrastructure and
Communities program of the Federal Emergency Management Agency''.
TITLE III--SOLVENCY
SEC. 301. FORBEARANCE ON NFIP INTEREST PAYMENTS.
(a) In General.--During the 5-year period beginning on the date of
enactment of this Act, the Secretary of the Treasury may not charge the
Administrator interest on amounts borrowed by the Administrator under
section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C.
4016(a)) that were outstanding as of the date of enactment of this Act,
including amounts borrowed after the date of enactment of this Act that
refinance debts that existed before the date of enactment of this Act.
(b) Use of Saved Amounts.--There shall be deposited into the
National Flood Mitigation Fund an amount equal to the interest that
would have accrued on the borrowed amounts during the 5-year period
described in subsection (a) at the time at which those interest
payments would have otherwise been paid, which, notwithstanding any
provision of section 1367 of the National Flood Insurance Act of 1968
(42 U.S.C. 4104d), the Administrator shall use to carry out the program
established under section 1366 of the National Flood Insurance Act of
1968 (42 U.S.C. 4104c).
(c) No Retroactive Accrual.--After the 5-year period described in
subsection (a), the Secretary of the Treasury shall not require the
Administrator to repay any interest that, but for that subsection,
would have accrued on the borrowed amounts described in that subsection
during that 5-year period.
SEC. 302. CAP ON WRITE YOUR OWN COMPANY COMPENSATION.
(a) In General.--Section 1311 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4018) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Limitation on Compensation; Minimum Agent Commissions.--In
negotiating with appropriate representatives of the insurance industry
under subsection (a), the Administrator shall ensure that--
``(1) any reimbursement paid to a property and casualty
insurance company for selling, writing, and servicing flood
insurance policies is not more than 22.46 percent of the
aggregate amount of premiums charged by the insurance company;
and
``(2) an insurance company pays a portion of the
reimbursement described in paragraph (1) to agents of the
company as a commission, in an amount that is not less than 15
percent of the aggregate amount of the premiums sold by the
agent.''.
(b) Technical and Conforming Amendments.--Section 1311 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4018), as amended by
subsection (a), is amended--
(1) in subsection (a), by striking ``The Administrator''
and inserting ``In General.--The Administrator''; and
(2) in subsection (c), as so redesignated by subsection (a)
of this section, by striking ``For purposes of subsection (a)''
and inserting ``Definitions.--For purposes of this section''.
SEC. 303. THIRD-PARTY SERVICE PROVIDER COSTS; TRANSPARENCY.
(a) In General.--Section 100224(d) of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4081 note) is amended--
(1) by striking ``Not later than 12 months after the date
of enactment of this Act, the Administrator'' and inserting the
following:
``(1) In general.--The Administrator''; and
(2) by adding at the end the following:
``(2) Vendor costs; transparency.--In issuing the rule
under paragraph (1), the Administrator shall--
``(A) develop a schedule to determine the actual
costs of Write Your Own third-party service providers,
including claims adjusters and engineering companies;
``(B) provide that if a Write Your Own company
requests reimbursement for the costs of a service or
product provided to the company by a vendor, the
Administrator only reimburses the company for the
actual costs of the service or products; and
``(C) require that all reimbursements to Write Your
Own companies be made public, including a description
of the product or service provided to which the
reimbursement pertains.''.
(b) Deadline for Revised Rule.--Not later than 90 days after the
date of enactment of this Act, the Administrator shall issue a revised
rule under section 100224(d) of the Biggert-Waters Flood Insurance
Reform Act of 2012 (42 U.S.C. 4081 note), as amended by subsection (a).
SEC. 304. AVAILABILITY OF NFIP CLAIMS DATA.
(a) Study Required.--
(1) In general.--The Administrator shall study the
feasibility of selling or licensing the use of historical
structure-specific National Flood Insurance Program claims data
(referred to in this section as ``covered claims data'') to
nongovernmental entities.
(2) Contents.--In conducting the study required under
paragraph (1), the Administrator shall, at a minimum--
(A) investigate 1 or more methods of providing the
most specific covered claims data possible while
reasonably protecting policyholder privacy;
(B) review existing means, as of the date of
enactment of this Act, by which the Federal Government
and nongovernmental entities provide leases or licenses
to private persons, and the various regulations, terms,
conditions, and guidance employed;
(C) identify potential uses for covered claims data
and any known risks concerning those uses, including
the risk that private insurance companies will use the
data to issue flood insurance policies with respect to
properties that have the lowest level of flood risk,
which would require the National Flood Insurance
Program to issue those policies with respect to
properties with higher levels of flood risk;
(D) identify mechanisms for determining the likely
market value for access to covered claims data;
(E) consider whether selling or licensing the use
of covered claims data, as described in paragraph (1),
would be in compliance with section 552a of title 5,
United States Code (commonly known as the ``Privacy Act
of 1974'');
(F) review the costs of researching, developing,
and producing previous releases of covered claims data
and identify if releasing this data has benefitted the
National Flood Insurance Program in a tangible way that
benefits policyholders; and
(G) recommend actions the Administrator could take,
if any, to prevent unintended consequences associated
with the sale or licensing for private insurance
purposes covered claims data.
(b) Report by Administrator.--Not later than 1 year after the date
of enactment of this Act, the Administrator shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives a
report that contains the results and conclusions of the study conducted
under subsection (a), which shall include an analysis of any
recommendations made by the study.
SEC. 305. REFUSAL OF MITIGATION ASSISTANCE.
Section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C.
4104c) is amended--
(1) in subsection (a), in the matter preceding paragraph
(1), in the first sentence, by inserting ``and, with respect to
financial assistance described in paragraph (2), using amounts
made available from the Disaster Relief Fund in accordance with
section 203(n) of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5133(n))'' after ``section
1367'';
(2) by redesignating subsection (h) as subsection (i); and
(3) by inserting after subsection (g) the following:
``(h) Refusal of Assistance.--
``(1) Definition.--In this subsection, the term `bona fide
offer of assistance' means an offer of assistance made by the
Administrator to a policyholder under the national flood
insurance program that--
``(A) relates to mitigation activities with respect
to the structure insured under that program;
``(B) covers 100 percent of the cost of the
mitigation activities described in subparagraph (A);
``(C) permits the policyholder to continue to live
in the structure to which the policy relates; and
``(D) is carried out under a mitigation plan.
``(2) Penalty.--If, after the date of enactment of the
National Flood Insurance Program Reauthorization and Reform Act
of 2025, a policyholder under the national flood insurance
program refuses a bona fide offer of assistance with respect to
the property so insured, the Administrator shall,
notwithstanding any other provision of this title, increase the
chargeable risk premium rate for flood insurance under this
title for the property by 25 percent each year until--
``(A) the policyholder accepts the bona fide offer
of assistance; or
``(B) that chargeable risk premium rate is
actuarially sound.''.
SEC. 306. MULTIPLE STRUCTURE MITIGATION.
Section 1308A(a) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015a(a)) is amended--
(1) in the first sentence, by striking ``The
Administrator'' and inserting the following:
``(1) In general.--Except as provided in paragraph (2), the
Administrator''; and
(2) by adding at the end the following:
``(2) Relief for small businesses and nonprofits.--
``(A) Definition.--In this paragraph, the term
`covered small business or nonprofit organization'
means a small business concern (as defined in section 3
of the Small Business Act (15 U.S.C. 632)) or an
organization that is described in section 501(c)(3) of
the Internal Revenue Code of 1986 and is exempt from
taxation under section 501(a) of such Code that owns
not fewer than 3 structures that are located on a
single property.
``(B) Relief.--The Administrator may not impose a
surcharge under this section for a policy for flood
insurance coverage under the National Flood Insurance
Program for a covered small business concern or
nonprofit organization with respect to more than 2
detached units or buildings located on a single
property if the covered small business or nonprofit
organization certifies to the Administrator that the
savings from the surcharge not being imposed shall be
used for flood mitigation on the property on which the
units or buildings are located.
``(C) Rules.--Not later than 1 year after the date
of enactment of this paragraph, the Administrator shall
issue rules establishing the process for submitting a
certification described in subparagraph (B).''.
TITLE IV--POLICYHOLDER PROTECTION AND FAIRNESS
SEC. 401. EARTH MOVEMENT FIX AND ENGINEER STANDARDS.
(a) Rebuttable Presumption for Foundation and Structural Damage.--
(1) In general.--Section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019), as amended by section
106(b), is amended by inserting after subsection (c) the
following:
``(d) Rebuttable Presumption for Foundation and Structural
Damage.--
``(1) In general.--For the purposes of the Administrator
determining coverage under the standard flood insurance policy
under the national flood insurance program, a rebuttable
presumption that physical damage to the foundation of, or
structural damage to, a structure was not caused by earth
movement shall apply if--
``(A) flood caused direct physical change to the
structure; and
``(B) there is damage to the foundation of, or
structural damage to, the structure that was not
present before the flood, as demonstrated by a
certification from the policyholder.
``(2) Rebuttal.--In determining coverage as a result of the
rebuttable presumption under paragraph (1), an insurance
company may rebut the presumption only by providing the
Administrator with an engineering report that--
``(A) meets standards issued by the Administrator
under paragraph (3); and
``(B) clearly demonstrates that the physical damage
to the foundation of, or structural damage to, a
structure described in paragraph (1) was caused
directly by earth movement that was not--
``(i) caused by the horizontal pressure
from standing or slow-moving floodwater
(commonly known as `hydrostatic pressure');
``(ii) caused by the force of floodwater
that causes the vertical uplift from the
underside of a horizontal foundation component,
such as a concrete slab, footer, or structural
floor assembly (commonly known as `buoyancy');
``(iii) caused by pressure imposed on an
object, such as a wall of a building, by high-
velocity floodwater or waves flowing against
and around the building (commonly known as
`hydrodynamic force');
``(iv) caused by floodwater moving along
the surface of the ground causing soil to
suddenly erode or undermine, resulting in
failure of a foundation or to one of the
structural components of the foundation
(commonly known as `scouring'); or
``(v) otherwise caused by flood.
``(3) Minimum standards for engineering reports.--The
Administrator shall issue minimum standards--
``(A) regarding the form and content of engineering
reports used to assist insurance claims adjusters with
respect to carrying out this subsection; and
``(B) that--
``(i) include a requirement that any such
engineering report shall be signed and have a
seal affixed by an engineer who is licensed in
the State in which the property to which the
claim relates is located; and
``(ii) are consistent with generally
accepted practices in--
``(I) the field of forensic
engineering; and
``(II) the insurance industry.
``(4) Documentation of condition of foundation.--
``(A) In general.--If the holder of a policy for
flood insurance coverage made available under this
title documents the condition of the foundation of a
structure covered by the policy with a photograph,
video recording, or otherwise, and submits the
documentation to the Administrator or the Write Your
Own Company that sold the policy, as applicable, the
Administrator or Write Your Own Company, respectively,
shall keep the documentation and use the documentation
when adjusting a claim that arises under the policy.
``(B) Notice to policyholders.--The Administrator
shall notify a policyholder, when the policyholder
purchases or renews a flood insurance policy sold under
this title, that the policyholder may document the
condition of the foundation of a structure covered by
the policy in accordance with subparagraph (A).
``(5) Rule of construction.--Nothing in this subsection may
be construed to modify the terms and conditions of the standard
flood insurance policy.''.
(2) Application.--The amendment made by paragraph (1) shall
apply with respect to a claim with a date of loss that is on or
after the date that is 90 days after the date of enactment of
this Act.
(b) Regulations.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall issue the standards
required under subsection (d)(3) of section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019), as added by subsection (a)(1).
SEC. 402. COVERAGE OF PRE-FIRM CONDOMINIUM BASEMENTS AND STUDY ON
STREET RAISING.
(a) Basement Clarification.--
(1) In general.--Section 1305 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4012) is amended by adding at
the end the following:
``(e) Availability of Insurance for Pre-FIRM Condominium
Basements.--
``(1) Definition.--In this subsection, the term `pre-FIRM
condominium building' means a condominium building that was not
constructed or substantially improved after the later of--
``(A) December 31, 1974; or
``(B) the effective date of the initial flood
insurance rate map published by the Administrator under
section 1360 for the area in which the building is
located.
``(2) Coverage.--The Administrator shall offer an optional
rider to a contract for flood insurance made available under
this title that covers the basement of a pre-FIRM condominium
building that serves as a separate residential unit within that
condominium building.''.
(2) Amendments to regulations.--Not later than 180 days
after the date of enactment of this Act, the Administrator
shall make any amendments to the regulations of the Federal
Emergency Management Agency that are necessary as a result of
the amendment made by paragraph (1).
(b) Study on Consequences of Street-Raising.--
(1) Definition.--In this subsection, the term ``affected
property'' means a property containing an area--
(A) the floor of which was located at or above
grade before the community raised the street adjacent
to the property; and
(B) after the street-raising described in
subparagraph (A), that was designated as a basement
because of the street-raising.
(2) Study; report.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall study and submit
to Congress a report on the consequences of street-raising on
flood insurance coverage for an affected property under the
National Flood Insurance Program, including the cost
implications for the property owner.
SEC. 403. GUIDANCE ON REMEDIATION AND POLICYHOLDER DUTIES.
(a) In General.--Section 1312 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4019), as amended by section 401(a)(1), is amended
by inserting after subsection (d) the following:
``(e) Guidance on Mold Remediation.--
``(1) In general.--The Administrator shall issue guidance
relating to the identification of reasonable actions that a
policyholder of coverage for flood insurance made available
under this title may take to inspect and maintain the property
to which that coverage applies--
``(A) after a flood recedes; and
``(B) in order to avoid damage to the property that
is caused by mold, mildew, moisture, or water.
``(2) Considerations.--In developing guidance under
paragraph (1), the Administrator shall consider--
``(A) any applicable laws and regulations;
``(B) the terms and conditions of the standard
flood insurance policy;
``(C) technical best practices;
``(D) the costs of remediation in relation to the
condition of a property described in that paragraph;
and
``(E) the actions that the Administrator may
reasonably expect a policyholder described in that
paragraph to take, given the likely challenges faced by
the policyholder after a flood.
``(3) Regular review.--The Administrator shall--
``(A) regularly review the guidance issued under
paragraph (1); and
``(B) revise the guidance issued under paragraph
(1) as the Administrator determines appropriate.
``(4) Annual distribution.--The Administrator shall provide
a copy of the guidance issued under paragraph (1) to a
policyholder at the time of the purchase or renewal of a flood
insurance policy sold under this title.''.
(b) Initial Issuance.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall issue the guidance
required under subsection (e) of section 1312 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4019), as added by subsection (a) of
this section.
(c) Accessibility, Reasonableness, and Degree of Damage.--Section
1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as
amended by subsection (a), is amended by inserting after subsection (e)
the following:
``(f) Exclusion of Certain Damage.--For purposes of determining
whether damage caused by mold, mildew, moisture, or water to a property
shall be excluded from coverage under the standard flood insurance
policy--
``(1) subject to paragraph (2), only the degree of damage
caused by mold, mildew, moisture, or water that could have been
avoided through inspection and maintenance may be excluded from
that coverage; and
``(2) the condition of the property to which the damage
relates may not be considered to be attributable to the
policyholder with respect to the property, including any
failure by the policyholder to inspect and maintain the
property after a flood recedes, if--
``(A) the policyholder was denied access to the
property after the flood receded because of--
``(i) a lawful government order;
``(ii) a determination by local authorities
that the property--
``(I) is unsafe or unstable; or
``(II) shall be condemned; or
``(iii) otherwise unsafe conditions;
``(B) a reasonable individual exercising reasonable
judgment could not be expected to inspect, maintain, or
mitigate the damage to the property under the
circumstances; or
``(C) the policyholder faced particular challenges,
including--
``(i) practical or financial difficulty in
inspecting or maintaining the property;
``(ii) the need to address other more
immediate priorities, including--
``(I) the health and well-being of
the policyholder and the family of the
policyholder;
``(II) the preservation of basic
items;
``(III) displacement; and
``(IV) other issues that make
inspection and maintenance of the
property a near-term challenge for the
policyholder; and
``(iii) the unavailability of contractors
or other individuals to perform any required
inspection and maintenance.''.
SEC. 404. APPEAL OF DECISIONS RELATING TO FLOOD INSURANCE COVERAGE.
(a) Enhanced Policyholder Appeals Process.--
(1) In general.--Part C of chapter II of the National Flood
Insurance Act of 1968 (42 U.S.C. 4081 et seq.) is amended by
adding at the end the following:
``SEC. 1349. APPEAL OF DECISIONS RELATING TO FLOOD INSURANCE COVERAGE.
``(a) Definition.--In this section, the term `Office', except as
otherwise specified, means the Independent Office for Policyholder
Appeals established under subsection (b).
``(b) Independent Office for Policyholder Appeals.--Not later than
180 days after the date of enactment of this section, the Administrator
shall establish an Independent Office for Policyholder Appeals to
provide for a non-adversarial and fair administrative review of appeals
submitted under subsection (c)(1).
``(c) Appeals Process.--
``(1) Right to appeal.--A policyholder of a flood insurance
policy issued under the national flood insurance program may
appeal the denial of a claim arising under the policy in
writing to the Office not later than 1 year after receipt of
the denial.
``(2) Exhaustion of administrative appeals required before
filing civil action.--A policyholder of a flood insurance
policy issued under the national flood insurance program may
not institute an action on a denied claim arising under the
policy against the Administrator in a United States district
court under section 1333 or 1341, as applicable, unless the
policyholder has exhausted the appeals process under this
section.
``(d) Duties and Responsibilities.--In administering appeals
submitted under subsection (c)(1), the Office shall--
``(1) issue final appeal decisions through an appeal
process established by the Office;
``(2) disseminate information to appellants concerning the
information that an appellant may include in the appeal
submissions;
``(3) provide an appellant with an opportunity to discuss
any issue on appeal with a claims expert in the Office;
``(4) provide aggregated appeals data to the Office of the
Flood Insurance Advocate for use in fulfilling the duties and
responsibilities of that office under section 24(b) of the
Homeowner Flood Insurance Affordability Act of 2014 (42 U.S.C.
4033(b)); and
``(5) publish final appeal decisions to a public-facing
website--
``(A) to inform the public; and
``(B) for awareness to support transparency and
training for Write Your Own Companies and contractors
of the Federal Emergency Management Agency.
``(e) Regulations.--
``(1) In general.--For purposes of implementing the appeals
process under this section, the Administrator may promulgate
new regulations or use regulations that were in effect on the
date of enactment of this section, except that--
``(A) the Administrator may not declare any appeal
ineligible if the policyholder submits the appeal to
the Office not later than 1 year after the date on
which the policyholder receives the denial of the
applicable claim, as required under subsection (c)(1);
``(B) upon receiving all information necessary to
complete an appeal, the Office shall notify the
appellant that the Office will make a final decision
not later than 90 days after receipt of that
information; and
``(C) not later than 90 days after receipt of all
information necessary to complete an appeal, the Office
shall make a final decision on the appeal.
``(2) Enforcement of final decision deadline.--If the
Office does not comply with the deadline under paragraph (1)(C)
with respect to an appeal, and the policyholder that brought
the appeal is ultimately successful, the Administrator shall
pay to the policyholder interest on the claim that is the
subject of the appeal, which shall--
``(A) begin accruing on the date on which the
policyholder submits the appeal; and
``(B) be calculated using the rate of return on a
3-year Treasury bill, as in effect on the date
described in subparagraph (A).
``(3) All information necessary.--For purposes of paragraph
(1), the term `all information necessary' includes information
obtained from a physical reinspection of the property or from
an expert report, if that information is needed in order to
complete the review of the appeal.
``(4) Liability protection.--No cause of action shall lie
or be maintained in any court against the United States, and
any such action shall be promptly dismissed, for violation of
the notification requirement under paragraph (1)(B).''.
(2) Effective date for new appeals process.--Subsection (c)
of section 1349 of the National Flood Insurance Act of 1968, as
added by paragraph (1), shall take effect on the date that is
180 days after the date of enactment of this Act.
(b) Repeal and Transfer.--
(1) In general.--Effective on the date that is 180 days
after the date of enactment of this Act, section 205 of the
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004
(42 U.S.C. 4011 note; Public Law 108-264) is repealed, and any
appeals that were pending before the Administrator under that
section on the day before that effective date shall be
transferred to the Independent Office for Policyholder Appeals
established under section 1349 of the National Flood Insurance
Act of 1968 (as added by subsection (a)) for disposition under
such section 1349.
(2) Technical and conforming amendments.--
(A) Table of contents.--The table of contents for
the Bunning-Bereuter-Blumenauer Flood Insurance Reform
Act of 2004 (Public Law 108-264; 118 Stat. 712) is
amended by striking the item relating to section 205.
(B) Other amendment.--Section 204(a)(3) of the
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act
of 2004 (42 U.S.C. 4011 note; Public Law 108-264) is
amended by striking ``section 205'' and inserting
``section 1349 of the National Flood Insurance Act of
1968''.
(c) Judicial Review Reform.--
(1) Government program with industry assistance.--Section
1341 of the National Flood Insurance Act of 1968 (42 U.S.C.
4072) is amended--
(A) by striking ``In the event the program'' and
inserting the following:
``(a) In General.--If the program'';
(B) in subsection (a), as so designated--
(i) by inserting ``or the Administrator's
fiscal agent'' after ``upon the disallowance by
the Administrator'';
(ii) by striking ``within one year after
the date of mailing of notice of disallowance
or partial disallowance by the Administrator,
may institute an action against the
Administrator on such claim'' and inserting
``not later than 1 year after exhausting
available administrative remedies, may
institute an action against the insurer on such
claim''; and
(C) by adding at the end the following:
``(b) Exhaustion of Administrative Remedies.--
``(1) In general.--For the purposes of subsection (a), a
claimant exhausts available administrative remedies if--
``(A) the claimant submits an appeal and complies
with all requirements of the appeal process established
under section 1349 and other applicable requirements;
and
``(B) the Administrator--
``(i) issues a final decision on the appeal
that partially or fully concurs with the
insurer's disallowance or partial disallowance
of the claim; or
``(ii) makes no finding regarding the
appeal by the date that is 90 days after the
date on which the Administrator acknowledges
receipt and acceptance of the appeal.
``(c) Limitations.--
``(1) Issues raised on appeal.--An action may not be
instituted under this section for any issue of a claim that was
not presented to the Administrator on appeal.
``(2) Weight of administrator's disposition.--For purposes
of this section, disposition of an appeal by the Administrator
shall not be competent evidence of liability or the amount of
damages.''.
(2) Industry program with federal financial assistance.--
Section 1333 of the National Flood Insurance Act of 1968 (42
U.S.C. 4053) is amended--
(A) by striking ``The insurance companies and other
insurers'' and inserting the following:
``(a) In General.--The insurance companies and other insurers'';
(B) in subsection (a), as so designated, by
striking ``within one year after the date of mailing of
notice of disallowance or partial disallowance of the
claim, may institute an action on such claim against
such company or other insurer'' and inserting ``not
later than 1 year after exhausting available
administrative remedies, may institute an action on the
claim against the company or other insurer''; and
(C) by adding at the end the following:
``(b) Exhaustion of Administrative Remedies.--For the purposes of
subsection (a), a claimant exhausts available administrative remedies
if--
``(1) the claimant submits an appeal and complies with all
requirements of the appeal process established under section
1349 and other applicable requirements; and
``(2) the Administrator--
``(A) issues a final decision on the appeal that
partially or fully concurs with the insurer's
disallowance or partial disallowance of the claim; or
``(B) makes no finding regarding the appeal by the
date that is 90 days after the date on which the
Administrator acknowledges receipt and acceptance of
the appeal.
``(c) Limitations.--
``(1) Issues raised on appeal.--An action may not be
instituted under this section for any issue of a claim that was
not presented to the Administrator on appeal.
``(2) Weight of administrator's disposition.--For purposes
of this section, disposition of an appeal by the Administrator
shall not be competent evidence of liability or the amount of
damages.''.
SEC. 405. ACCOUNTABILITY FOR UNDERPAYMENTS AND OVERPAYMENTS BY WRITE
YOUR OWN COMPANIES.
Section 1348 of the National Flood Insurance Act of 1968 (42 U.S.C.
4084) is amended by adding at the end the following:
``(c) Underpayments and Overpayments.--
``(1) Accountability for underpayments.--If the
Administrator determines through any audit that the pool or an
insurance company or other private organization described in
subsection (a) has not adjusted a claim in accordance with
adjusting standards that are in effect as of the date on which
the adjustment is performed and, as a result of that failure,
has underpaid or overpaid a claim of a policyholder, the
penalty imposed by the Administrator with respect to such a
failure may not be less for an overpayment of a claim than for
an underpayment of a claim.
``(2) Safe harbor for certain overpayments.--The
Administrator may not impose a penalty on the pool or an
insurance company or other private organization described in
subsection (a) for overpayment of a claim of a policyholder for
reasons described in paragraph (1) of this subsection if--
``(A) the overpayment was not in bad faith; and
``(B) the amount of the overpayment was not more
than 4 percent of the coverage limit of the policy.
``(d) GAO Report.--Not later than 2 years after the date of
enactment of this subsection, and triennially thereafter, the
Comptroller General of the United States shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the Committee
on Financial Services of the House of Representatives a report
regarding any penalties imposed by the Administrator under subsection
(c)(1).''.
SEC. 406. POLICYHOLDERS' RIGHT TO KNOW.
(a) Use.--Section 1312 of the National Flood Insurance Act of 1968
(42 U.S.C. 4019), as amended by section 403(c), is amended by inserting
after subsection (f) the following:
``(g) Use of Technical Assistance Reports.--When adjusting claims
for any damage to or loss of property that is covered by flood
insurance made available under this title, the Administrator may rely
upon technical assistance reports, as defined in section 1312A(a), only
if the reports are final and are prepared in compliance with applicable
State and Federal laws regarding professional licensure and conduct.''.
(b) Disclosure.--Chapter I of the National Flood Insurance Act of
1968 (42 U.S.C. 4011 et seq.) is amended by inserting after section
1312 (42 U.S.C. 4019) the following:
``SEC. 1312A. DISCLOSURE OF CLAIMS DOCUMENTS AND TECHNICAL ASSISTANCE
REPORTS.
``(a) Definitions.--In this section--
``(1) the term `policyholder' means any person listed as a
named or additional insured on the declarations page of a
policy for flood insurance coverage made available under this
title; and
``(2) the term `technical assistance report' means a report
created for the purpose of furnishing technical assistance to
an insurance claims adjuster assigned under the national flood
insurance program, including any report created by an engineer,
a surveyor, a salvor, an architect, or a certified public
accountant.
``(b) Provision of Copies.--
``(1) In general.--Notwithstanding section 552a of title 5,
United States Code, not later than 1 week after the date on
which the Administrator receives a written request, or a
request submitted online, from a policyholder, and with respect
to a claim for loss submitted by the policyholder for any
damage to or loss of property that is covered by the policy,
the Administrator shall provide a true, complete, and
unredacted copy of--
``(A) all documents that constitute the claim file
of the insurance company with respect to the claim, in
accordance with the memorandum issued by the
Administrator on June 1, 2018, entitled `Guidance for
the Release of Claim File Information to Policyholders'
(WYO Bulletin W-18012) (or any successor document);
``(B) any document created by any adjuster in
scoping the loss, including measurements, photographs,
and notes;
``(C) any estimates of damages with respect to the
claim;
``(D) any draft and final technical assistance
report relating to adjusting and paying or denying the
claim;
``(E) any proof of loss, supplemental proofs of
loss, or any equivalent notices, together with
supporting documentation, with respect to the claim;
and
``(F) any document relating to the denial or
partial denial of the claim.
``(2) Rule of construction.--Nothing in paragraph (1) may
be construed to limit the right of a policyholder to receive a
disclosure under section 552a of title 5, United States Code,
or any other provision of law.
``(c) Direct Disclosure by Write Your Own Companies and Direct
Servicing Agents.--
``(1) In general.--A Write Your Own Company or direct
servicing agent in possession of any technical assistance
report that is subject to disclosure under subsection (b) may
disclose such technical assistance report without further
review or approval by the Administrator.
``(2) Affirmative notification.--A Write Your Own Company,
or any other entity servicing a claim under the national flood
insurance program, shall, not later than 30 days after the date
on which the company or entity receives notice of a claim,
notify the claimant that the claimant or an authorized
representative of the claimant may obtain, upon request, a copy
of any claim-related document described in subsection (b)(1)
that pertains to the claimant.''.
(c) Transmission of Report Without Approval.--
(1) Definition.--In this subsection, the term ``final
engineering report'' means an engineering report, survey, or
other document in connection with a claim for losses covered by
a policy for flood insurance coverage made available under the
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.)
that--
(A) is based on an on-site inspection;
(B) contains final conclusions with respect to an
engineering issue or issues involved in the claim; and
(C) is signed by the responsible in charge or
affixed with the seal of the responsible in charge, or
both.
(2) Transmission.--A Write Your Own Company or a National
Flood Insurance Program direct servicer may, without obtaining
further review or approval by the Administrator, transmit to a
policyholder a final engineering report in the possession of
the Write Your Own Company or the direct servicer in connection
with a claim submitted by the policyholder.
SEC. 407. TERMINATION OF CERTAIN CONTRACTS UNDER THE NATIONAL FLOOD
INSURANCE PROGRAM.
(a) In General.--Part C of chapter II of the National Flood
Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as amended by section
404, is amended by adding at the end the following:
``SEC. 1350. TERMINATION OF CONTRACTS.
``(a) Definitions.--In this section--
``(1) the term `covered entity' means any attorney, law
firm, consultant, or third-party company that provides services
to a Write Your Own company; and
``(2) the term `Write Your Own company' means a company
participating in the cooperative undertaking between the
insurance industry and the Federal Insurance and Mitigation
Administration that allows participating property and casualty
insurance companies to write and service standard flood
insurance policies.
``(b) Termination.--
``(1) In general.--Notwithstanding any other provision of
law, the Administrator may terminate a contract or other
agreement between a covered entity and a Write Your Own company
if the Administrator--
``(A) determines that the covered entity has
engaged in conduct that is detrimental to the flood
insurance program authorized under chapter I; and
``(B) not later than 14 days before terminating the
contract or other agreement, provides notice to the
covered entity of the termination.
``(2) Appeal.--The Administrator shall establish a process
for a covered entity to appeal a termination of a contract or
other agreement under paragraph (1).
``(3) Early termination payouts.--The Administrator or a
Write Your Own company is not required to make any early
termination payout to a covered entity with respect to a
contract or agreement with the Write Your Own company that the
Administrator terminates under paragraph (1).''.
(b) Effective Date; Applicability.--The amendment made by
subsection (a) shall--
(1) take effect on the date of enactment of this Act; and
(2) apply to any contract or other agreement between a
covered entity and a Write Your Own company (as those terms are
defined in section 1349(a) of the National Flood Insurance Act
of 1968, as added by subsection (a)) entered into on or after
the date of enactment of this Act.
SEC. 408. DEADLINE FOR CLAIM PROCESSING.
(a) In General.--Section 1312 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4019), as amended by section 406(a), is amended by
inserting after subsection (g) the following:
``(h) Deadline for Approval of Claims.--
``(1) In general.--The Administrator shall provide that, in
the case of a claim for damage to or loss of property that is
covered by a policy for flood insurance made available under
this title--
``(A) except as provided in paragraph (2), not
later than 60 days after the date on which a proof of
loss or comparable submission is provided to the
Administrator--
``(i) an initial determination regarding
approval of the claim for payment or
disapproval of the claim shall be made; and
``(ii) notification of the determination
described in clause (i) shall be provided to
the policyholder making the claim; and
``(B) payment of an approved claim shall be made as
soon as possible after that approval.
``(2) Extension of deadline.--The Administrator shall--
``(A) provide that the period described in
paragraph (1)(A) may be extended by an additional
period of 30 days under extraordinary circumstances;
and
``(B) by regulation--
``(i) establish criteria for--
``(I) demonstrating the
extraordinary circumstances described
in subparagraph (A); and
``(II) determining to which claims
the extraordinary circumstances
described in subparagraph (A) apply;
and
``(ii) provide that, if the deadline
imposed under paragraph (1)(A), as extended
under subparagraph (A), if applicable, is not
satisfied the amount of the claim to which the
deadline relates shall be increased with
interest, which shall begin accruing on the
date on which the initial claim is filed.
``(3) Deadline tolled during certain communication with
policyholder.--The deadline under paragraph (1) shall be tolled
during any period during which the Administrator or a Write
Your Own Company is trying to obtain more information from a
policyholder regarding a claim made by the policyholder, or is
otherwise working with a policyholder to develop such a
claim.''.
(b) Applicability.--The amendment made by subsection (a) shall
apply to any claim for damage to or loss of property that is covered by
a policy for flood insurance made available under the National Flood
Insurance Program that is made after the date of enactment of this Act.
SEC. 409. NO MANIPULATION OF ENGINEER REPORTS.
Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C.
4019), as amended by section 408(a), is amended by inserting after
subsection (h) the following:
``(i) Final Engineering Reports.--
``(1) Definitions.--In this subsection--
``(A) the term `covered claim' means any claim for
losses covered by a policy for flood insurance coverage
made available under this title; and
``(B) the term `final engineering report' means an
engineering report, survey, or other document in
connection with a covered claim that--
``(i) is based on an on-site inspection;
``(ii) contains final conclusions with
respect to an engineering issue or issues
involved in the claim; and
``(iii) is signed by the responsible in
charge or affixed with the seal of the
responsible in charge, or both.
``(2) Prohibition on manipulation and transmission to third
parties.--The Administrator shall require that, in the case of
any on-site inspection of a property by an engineer for the
purpose of assessing any covered claim, the final engineering
report--
``(A) may not--
``(i) include alterations by, or at the
request of, anyone other than the person
responsible for the report; or
``(ii) be transmitted to any other person
before the final engineering report is
transmitted to the policyholder who submitted
the covered claim; and
``(B) shall include a certification, signed by the
person responsible for the final engineering report,
that the final engineering report does not contain any
alterations described in subparagraph (A).''.
SEC. 410. IMPROVED TRAINING OF FLOODPLAIN MANAGERS, AGENTS, AND
ADJUSTERS.
(a) Local Floodplain Managers.--Each regional office of the Federal
Emergency Management Agency shall--
(1) provide training to local floodplain managers, agents,
and claim adjusters in the region regarding the
responsibilities and procedures of local floodplain managers
with respect to conducting substantial damage and substantial
improvement determinations;
(2) work with applicable State agencies to provide the
training described in paragraph (1); and
(3) verify that the individuals described in paragraph (1)
are completing the training described in that paragraph.
(b) Major Disaster Training.--After a flood that is declared a
major disaster by the President under section 401 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170),
the Administrator shall, if determined appropriate, provide--
(1) refresher training to prepare insurance claims
adjusters for the unique circumstances of the major disaster;
and
(2) any briefings that are necessary to prepare and inform
floodplain managers, agents, and claim adjusters regarding any
atypical circumstances and issues arising from the natural
disaster.
SEC. 411. FLOOD INSURANCE CONTINUING EDUCATION AND TRAINING.
(a) In General.--The Bunning-Bereuter-Blumenauer Flood Insurance
Reform Act of 2004 (Public Law 108-264; 118 Stat. 712) is amended--
(1) in section 201 (42 U.S.C. 4011 note)--
(A) in paragraph (1), by striking ``Director of
the'' and inserting ``Administrator of the''; and
(B) in paragraph (2), by inserting ``4001'' after
``U.S.C.''; and
(2) by striking section 207 (42 U.S.C. 4011 note) and
inserting the following:
``SEC. 207. CONTINUING EDUCATION REQUIREMENTS FOR INSURANCE AGENTS.
``(a) In General.--The Director shall require each insurance agent
who sells flood insurance policies under the Program to, once every 2
years, complete a 3-hour continuing education course that--
``(1) subject to subsection (c), is approved by the
insurance commissioner of the State in which the agent is a
legal resident; and
``(2) focuses on issues with respect to the Program.
``(b) Failure To Complete Course.--If an insurance agent who sells
flood insurance policies does not complete a continuing education
course required under subsection (a), the agent, until the date on
which the agent completes the course in accordance with the
requirements of this section, may not--
``(1) sell flood insurance policies; or
``(2) perform any duties with respect to the Program.
``(c) Agents Licensed in Multiple States.--
``(1) In general.--If an insurance agent who sells flood
insurance policies is licensed to sell insurance in more than 1
State--
``(A) the agent shall submit proof of completion of
a continuing education course required under subsection
(a) to the insurance commissioner of each State in
which the agent is licensed; and
``(B) each insurance commissioner to whom an
insurance agent submits a proof of completion under
subparagraph (A) may determine whether the course to
which that proof of completion relates meets the
minimum standards established by that insurance
commissioner.
``(2) Effect of denial.--If an insurance commissioner of a
State (referred to in this paragraph as the `rejecting
commissioner') determines under paragraph (1)(B) that a
continuing education course taken in another State by an
insurance agent who sells flood insurance policies does not
meet the minimum standards established by the rejecting
commissioner, the insurance agent may not take any action
described in paragraph (1) or (2) of subsection (b) until the
agent satisfies the minimum requirements established by the
rejecting commissioner.
``(d) Rule of Construction.--Any reference in this section to an
insurance commissioner of a State shall be construed as a reference to
an equivalent official with respect to any State in which there is no
official who has the title of insurance commissioner.''.
(b) Technical and Conforming Amendment.--The table of contents for
the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004
(Public Law 108-264; 118 Stat. 712) is amended by striking the item
relating to section 207 and inserting the following:
``Sec. 207. Continuing education requirements for insurance agents.''.
SEC. 412. SHIFTING OF ATTORNEY FEES AND OTHER EXPENSES.
Section 1341 of the National Flood Insurance Act of 1968 (42 U.S.C.
4072), as amended by section 404(c), is amended by adding at the end
the following:
``(d) Attorney Fees and Other Expenses.--A Write Your Own Company
against which an action is instituted under this subsection shall be
considered an agency of the United States for the purposes of section
2412(d) of title 28, United States Code.''.
SEC. 413. DOJ DEFENSE AGAINST POLICYHOLDER LAWSUITS.
Subsection (b) of section 1341 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4072), as added by section 404(c), is amended by
adding at the end the following:
``(2) Representation by department of justice.--If a
claimant institutes an action under this section--
``(A) the Administrator shall refer the matter to
the Attorney General; and
``(B) the Attorney General--
``(i) shall represent the Administrator or
the Write Your Own company, as applicable, in
the action; and
``(ii) may not seek to have the court
dismiss an action with potentially meritorious
claims based on good faith errors or omissions
by the claimant in the claimant's proof of
loss.''.
SEC. 414. REFORMING USE OF PROOF OF LOSS FORMS.
(a) In General.--Section 1312 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4019), as amended by section 409, is amended by
inserting after subsection (i) the following:
``(j) No Condition of Payment of Undisputed Claim on Proof of
Loss.--
``(1) In general.--Notwithstanding any other provision of
law, or any term or condition of a standard flood insurance
policy, the Administrator--
``(A) may not condition payment of an undisputed
claim based on the submission of a proof of loss; and
``(B) may instead accept a report submitted by the
insurance adjuster the Administrator hires to
investigate the claim, if the report is signed by the
policyholder, unless the Administrator determines that
conditions make signature impracticable.
``(2) Refusal to accept amount paid.--Upon the refusal of a
policyholder to accept the amount paid under paragraph (1), the
Administrator may require the policyholder to submit a proof of
loss within a timeframe determined by the Administrator.''.
(b) Guidance to Defense Attorneys.--The Administrator shall issue
guidance for best practices for attorneys defending actions instituted
under section 1333 or 1341, as applicable, of the National Flood
Insurance Act of 1968 (42 U.S.C. 4053, 4072) (as amended by section
404(c)) relating to how to respond to unintentional errors in a proof
of loss submitted by a policyholder under the National Flood Insurance
Policy.
SEC. 415. AGENT ADVISORY COUNCIL.
Part C of chapter II of the National Flood Insurance Act of 1968
(42 U.S.C. 4081 et seq.), as amended by section 407, is amended by
adding at the end the following:
``SEC. 1351. AGENT ADVISORY COUNCIL.
``(a) Establishment.--There is established a council to be known as
the Agent Advisory Council (in this section referred to as the
`Council').
``(b) Membership.--
``(1) Members.--The Council shall consist of--
``(A) the Administrator, or the designee of the
Administrator; and
``(B) 11 additional members appointed by the
Administrator or the designee of the Administrator, of
whom--
``(i) 1 shall be a member of the National
Association of Insurance Commissioners;
``(ii) 2 shall be members of the
Independent Insurance Agents and Brokers of
America;
``(iii) 1 shall be a member of United
Policyholders;
``(iv) 1 shall be a representative of the
Emergency Management Institute of the Federal
Emergency Management Agency;
``(v) 1 shall be a representative of the
Office of the Flood Insurance Advocate of the
Federal Emergency Management Agency;
``(vi) 2 shall be members of the National
Association of Professional Insurance Agents;
``(vii) 1 shall be a representative of a
recognized professional association or
organization representing homebuilders or land
developers;
``(viii) 1 shall be a representative of a
recognized professional association or
organization representing the real estate
industry; and
``(ix) 1 of whom shall be a representative
of a recognized consumer protection group.
``(2) Qualifications.--
``(A) In general.--Each member of the Council shall
have experience with--
``(i) contacting policyholders under the
national flood insurance program, including
with respect to applying for flood insurance
and processing a claim for damage to or loss of
property that is covered by flood insurance;
and
``(ii) riverine and coastal flood insurance
policies.
``(B) Considerations.--The Administrator shall, to
the maximum extent practicable, ensure that the
membership of the Council has a balance of governmental
and private members, and includes geographic diversity.
``(C) Conflicts of interest.--A member of the
Council--
``(i) may not, while serving on the
Council, be employed or retained--
``(I) by a Federal Emergency
Management Agency contractor or
consultant; or
``(II) by a nongovernmental entity
that was awarded a Federal grant during
the 5-year period preceding the date on
which the member was appointed to the
Council; and
``(ii) may not have been employed by a
Federal Emergency Management Agency contractor
or consultant during the 5-year period
preceding the date on which the member was
appointed to the Council.
``(3) Consultation.--In appointing a member of the Council
from an entity described in clauses (i) through (ix) of
paragraph (1)(B), the Administrator or the designee of the
Administrator, as applicable, shall consult with the entity.
``(4) Chairperson.--The members of the Council shall elect
1 member to serve as the chairperson of the Council (in this
section referred to as the `Chairperson').
``(c) Duties.--The Council shall--
``(1) provide recommendations to the Administrator on--
``(A) improving the customer experience for
policyholders under the national flood insurance
program;
``(B) training insurance agents that issue flood
insurance policies; and
``(C) improving the processing and handling of
claims for damage to or loss of property that is
covered by flood insurance; and
``(2) submit to the Administrator an annual report that
includes--
``(A) a description of the activities of the
Council; and
``(B) a summary of recommendations made by the
Council to the Administrator.
``(d) Compensation.--
``(1) In general.--Except as provided in paragraph (2), a
member of the Council shall receive no additional compensation
for serving on the Council.
``(2) Travel expenses.--Each member of the Council may be
allowed travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703 of title
5, United States Code, while away from their homes or regular
places of business in performance of services for the Council.
``(e) Meetings and Actions.--
``(1) Meetings.--
``(A) In general.--The Council shall meet not less
frequently than twice each year at the request of the
Chairperson or a majority of the members of the
Council.
``(B) Initial meeting.--The Administrator, or a
designee of the Administrator, shall request and
coordinate the initial meeting of the Council.
``(2) Action by majority vote.--The Council may take action
by a vote of the majority of the members.
``(f) Officers.--The Chairperson may appoint officers to assist in
carrying out the duties of the Council under subsection (c).
``(g) Staff.--Upon the request of the Chairperson, the
Administrator may detail, on a nonreimbursable basis, personnel of the
Office of the Flood Insurance Advocate of the Federal Emergency
Management Agency to assist the Council in carrying out the duties of
the Council.
``(h) Powers.--In carrying out this section, the Council may hold
hearings, receive evidence and assistance, provide information, and
conduct research as the Council considers appropriate.
``(i) Report to Congress and OMB.--The Administrator shall submit
to the Committee on Banking, Housing, and Urban Affairs of the Senate,
the Committee on Financial Services of the House of Representatives,
and the Director of the Office of Management and Budget an annual
report on--
``(1) the recommendations made by the Council; and
``(2) any recommendations made by the Council during the
year covered by the report that, as of the date on which the
report is submitted, have been deferred or not acted upon,
together with an explanatory statement with respect to those
recommendations.
``(j) Applicability of the Federal Advisory Committee Act.--Section
1013 of title 5, United States Code, shall not apply to the Council.''.
SEC. 416. DISCLOSURE OF FLOOD RISK INFORMATION PRIOR TO TRANSFER OF
PROPERTY.
(a) In General.--Chapter I of the National Flood Insurance Act of
1968 (42 U.S.C. 4011 et seq.), as amended by section 207, is amended by
adding at the end the following:
``SEC. 1327. DISCLOSURE OF FLOOD RISK INFORMATION PRIOR TO TRANSFER OF
PROPERTY.
``(a) In General.--After September 30, 2024, no new flood insurance
coverage may be provided under this title for any real property unless
an appropriate public body has imposed, by statute or regulation, a
duty on any seller or lessor of improved real estate to provide to any
purchaser or lessee (with respect to a lease for a term that is not
shorter than 30 days) of the property a property flood hazard
disclosure that the Administrator has determined meets the requirements
of subsection (b).
``(b) Disclosure Requirements.--
``(1) Requirements for sellers.--A property flood hazard
disclosure for the sale of a property shall meet the
requirements of this subsection only if the disclosure--
``(A) is made in writing;
``(B) discloses any actual knowledge of the seller
of--
``(i) any prior physical damage caused by
flood to a structure located on the property;
``(ii) any prior insurance claim for a loss
covered under the national flood insurance
program or private flood insurance with respect
to the property;
``(iii) any previous notification regarding
the designation of the property as a repetitive
loss structure or severe repetitive loss
structure (as defined in section 1366(h));
``(iv) any Federal legal obligation to
obtain and maintain flood insurance running
with the property;
``(v) whether the property is located in a
wetland;
``(vi) whether a National Flood Insurance
Program Elevation Certificate has been
completed for the property; and
``(vii) whether the property has received
disaster assistance from the Federal Emergency
Management Agency, the Small Business
Administration, or the Department of Housing
and Urban Development;
``(C) discloses to the maximum extent feasible, in
a manner to be determined by the Administrator--
``(i) the relative flood risk associated
with the property as indicated in flood hazard
data maintained by the Administrator under this
title; and
``(ii) the availability of and approximate
cost of flood insurance for the property; and
``(D) is delivered by, or on behalf of, the seller
to the purchaser before the purchaser becomes obligated
under any contract to purchase the property.
``(2) Requirements for lessors.--A property flood hazard
disclosure for a rental property with a lease for a term that
is not shorter than 30 days shall meet the requirements of this
subsection only if the disclosure--
``(A) is made in writing;
``(B) discloses any actual knowledge of the
lessor--
``(i) of any Federal legal obligation to
obtain and maintain flood insurance running
with the property;
``(ii) regarding any prior physical damage
caused by flood with respect to the unit being
leased; and
``(iii) of the availability of coverage
under this title for contents located in a
structure on the property; and
``(C) is delivered by, or on behalf of, the lessor
to the lessee before the lessee becomes obligated under
any contract to lease the property.
``(3) Rule of construction.--Nothing in this section may be
construed as preventing a State from adopting disclosure
requirements in addition to the requirements of this
section.''.
(b) Availability of Flood Insurance Coverage.--Section 1305(c) of
the National Flood Insurance Act of 1968 (42 U.S.C. 4012(c)) is
amended--
(1) in paragraph (1), by striking ``, and'' at the end and
inserting a semicolon;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) given satisfactory assurance that, not later than
October 1, 2024, property flood hazard disclosure requirements
will have been adopted for the area (or subdivision) that meet
the requirements of section 1327.''.
SEC. 417. GRACE PERIOD FOR RENEWAL OF COVERAGE AT RENEWAL OFFER RATE.
Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
4015) is amended by adding at the end the following:
``(n) Grace Period for Renewal of Coverage at Renewal Offer Rate.--
Notwithstanding section 1307(g)(1), if a policyholder renews a policy
for flood insurance under this title not later than 90 days after the
date on which the policy lapsed in coverage, the Administrator shall
charge the same rate for the policy that the Administrator would have
charged if the policyholder had renewed the policy before the lapse in
coverage.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committees on Transportation and Infrastructure, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on Transportation and Infrastructure, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on Transportation and Infrastructure, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
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