[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3370 Enrolled Bill (ENR)]
H.R.3370
One Hundred Thirteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and fourteen
An Act
To delay the implementation of certain provisions of the Biggert-Waters
Flood Insurance Reform Act of 2012, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

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(a) Short Title.--This Act may be cited as the ``Homeowner Flood
Insurance Affordability Act of 2014''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

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For purposes of this title, the following definitions shall apply:
(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.).

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(a) Repeal.--
(1) In general.--Section 1307(g) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4014(g)) is amended--
(A) by striking paragraphs (1) and (2);
(B) in paragraph (3), by striking ``as a result of the
deliberate choice of the holder of such policy'' and inserting
``, unless the decision of the policy holder to permit a lapse
in flood insurance coverage was as a result of the property
covered by the policy no longer being required to retain such
coverage''; and
(C) by redesignating paragraphs (3) and (4) as paragraphs
(1) and (2), respectively.
(2) Effective date.--The Administrator shall make available
such rate tables, as necessary to implement the amendments made by
paragraph (1) as if it were enacted as part of the Biggert-Waters
Flood Insurance Reform Act of 2012 (Public Law 112-141; 126 Stat.
957).
(3) Implementation, coordination, and guidance.--
(A) Facilitation of timely refunds.--To ensure the
participation of Write Your Own companies (as such term is
defined in section 100202(a) of the Biggert-Waters Flood
Insurance Reform Act of 2012 (42 U.S.C. 4004(a)), the
Administrator and the Federal Emergency Management Agency shall
consult with Write Your Own companies throughout the
development of guidance and rate tables necessary to implement
the provisions of and the amendments made by this Act.
(B) Implementation and guidance.--The Administrator shall
issue final guidance and rate tables necessary to implement the
provisions of and the amendments made by this Act not later
than eight months following the date of the enactment of this
Act. Write Your Own companies, in coordination with the Federal
Emergency Management Agency, shall have not less than six
months but not more than eight months following the issuance of
such final guidance and rate tables to implement the changes
required by such final guidance and rate tables.
(4) Refund of excess premium charges collected.--The
Administrator shall refund directly to insureds any premiums for
flood insurance coverage under the National Flood Insurance Program
collected in excess of the rates required under the provisions of
and amendments made by this section. To allow for necessary and
appropriate implementation of such provisions and amendments, any
premium changes necessary to implement such provisions and
amendments, including any such premium refund due to policy
holders, which shall be paid directly by the National Flood
Insurance Program, shall not be charged or paid to policyholders by
the National Flood Insurance Program until after the Administrator
issues guidance and makes available such rate tables to implement
the provisions of and amendments made by this Act.
(b) Assumption of Policies at Existing Premium Rates.--The
Administrator shall provide that the purchaser of a property that, as
of the date of such purchase, is covered under an existing flood
insurance policy under this title may assume such existing policy and
coverage for the remainder of the term of the policy at the chargeable
premium rates under such existing policy. Such rates shall continue
with respect to such property until the implementation of subsection
(a).

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(a) In General.--Section 1308 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4015) is amended--
(1) by striking subsection (h); and
(2) by redesignating subsection (i) as subsection (h).
(b) Effective Date.--The amendments made by subsection (a) shall
take effect as if enacted as part of the Biggert-Waters Flood Insurance
Reform Act of 2012 (Public Law 112-141; 126 Stat. 957).

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Section 1308(e) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(e)) is amended--
(1) in the matter preceding paragraph (1), by striking ``, the
chargeable risk premium rates for flood insurance under this title
for any properties'';
(2) in paragraph (1), by inserting ``the chargeable risk
premium rates for flood insurance under this title for any
properties'' before ``within any'';
(3) in paragraph (2), by inserting ``the chargeable risk
premium rates for flood insurance under this title for any
properties'' before ``described in'';
(4) by redesignating paragraphs (1) and (2), as so amended, as
paragraphs (3) and (4), respectively; and
(5) by inserting before paragraph (3), as so redesignated, the
following new paragraphs:
``(1) the chargeable risk premium rate for flood insurance
under this title for any property may not be increased by more than
18 percent each year, except--
``(A) as provided in paragraph (4);
``(B) in the case of property identified under section
1307(g); or
``(C) in the case of a property that--
``(i) is located in a community that has experienced a
rating downgrade under the community rating system program
carried out under section 1315(b);
``(ii) is covered by a policy with respect to which the
policyholder has--
``(I) decreased the amount of the deductible; or
``(II) increased the amount of coverage; or
``(iii) was misrated;
``(2) the chargeable risk premium rates for flood insurance
under this title for any properties initially rated under section
1307(a)(2) within any single risk classification, excluding
properties for which the chargeable risk premium rate is not less
than the applicable estimated risk premium rate under section
1307(a)(1), shall be increased by an amount that results in an
average of such rate increases for properties within the risk
classification during any 12-month period of not less than 5
percent of the average of the risk premium rates for such
properties within the risk classification upon the commencement of
such 12-month period;'';
(6) in paragraph (3) (as so redesignated by paragraph (4) of
this section), by striking ``20 percent'' and inserting ``15
percent''; and
(7) in paragraph (4) (as so redesignated) by paragraph (4) of
this section), by striking ``paragraph (1)'' and inserting
``paragraph (3)''.

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WITH SPECIAL FLOOD HAZARDS.
Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
4015), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new subsection:
``(i) Rates for Properties Newly Mapped Into Areas With Special
Flood Hazards.--Notwithstanding subsection (f), the premium rate for
flood insurance under this title that is purchased on or after the date
of the enactment of this subsection--
``(1) on a property located in an area not previously
designated as having special flood hazards and that, pursuant to
any issuance, revision, updating, or other change in a flood
insurance map, becomes designated as such an area; and
``(2) where such flood insurance premium rate is calculated
under subsection (a)(1) of section 1307 (42 U.S.C. 4014(a)(1)),
shall for the first policy year be the preferred risk premium for the
property and upon renewal shall be calculated in accordance with
subsection (e) of this section until the rate reaches the rate
calculated under subsection (a)(1) of section 1307.''.

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Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
4015), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new subsection:
``(j) Premiums and Reports.--In setting premium risk rates, in
addition to striving to achieve the objectives of this title the
Administrator shall also strive to minimize the number of policies with
annual premiums that exceed one percent of the total coverage provided
by the policy. For any policies premiums that exceed this one percent
threshold, the Administrator shall report such exceptions to the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate.''.

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(a) Premium Surcharge.--Chapter I of the National Flood Insurance
Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting after
section 1308 the following new section:
``SEC. 1308A. PREMIUM SURCHARGE.
``(a) Imposition and Collection.--The Administrator shall impose
and collect an annual surcharge, in the amount provided in subsection
(b), on all policies for flood insurance coverage under the National
Flood Insurance Program that are newly issued or renewed after the date
of the enactment of this section. Such surcharge shall be in addition
to the surcharge under section 1304(b) and any other assessments and
surcharges applied to such coverage.
``(b) Amount.--The amount of the surcharge under subsection (a)
shall be--
``(1) $25, except as provided in paragraph (2); and
``(2) $250, in the case of a policy for any property that is--
``(A) a non-residential property; or
``(B) a residential property that is not the primary
residence of an individual.
``(c) Termination.--Subsections (a) and (b) shall cease to apply on
the date on which the chargeable risk premium rate for flood insurance
under this title for each property covered by flood insurance under
this title, other than properties for which premiums are calculated
under subsection (e) or (f) of section 1307 or section 1336 of this Act
(42 U.S.C. 4014, 4056) or under section 100230 of the Biggert-Waters
Flood Insurance Reform Act of 2012 (42 U.S.C. 4014 note), is not less
than the applicable estimated risk premium rate under section
1307(a)(1) for such property.''.
(b) Deposit in Reserve Fund.--Subsection (c) of section 1310A of
the National Flood Insurance Act of 1968 (42 U.S.C. 4017a) is amended
by adding at the end the following new paragraph:
``(4) Deposit of premium surcharges.--The Administrator shall
deposit in the Reserve Fund any surcharges collected pursuant to
section 1308A.''.

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(a) In General.--The Administrator shall prepare a draft
affordability framework that proposes to address, via programmatic and
regulatory changes, the issues of affordability of flood insurance sold
under the National Flood Insurance Program, including issues identified
in the affordability study required under section 100236 of the Bigger-
Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 126
Stat. 957).
(b) Criteria.--In carrying out the requirements under subsection
(a), the Administrator shall consider the following criteria:
(1) Accurate communication to consumers of the flood risk
associated with their properties.
(2) Targeted assistance to flood insurance policy holders based
on their financial ability to continue to participate in the
National Flood Insurance Program.
(3) Individual or community actions to mitigate the risk of
flood or lower the cost of flood insurance.
(4) The impact of increases in risk premium rates on
participation in the National Flood Insurance Program.
(5) The impact flood insurance rate map updates have on the
affordability of flood insurance.
(c) Deadline for Submission.--Not later than 18 months after the
date on which the Administrator submits the affordability study
referred to in subsection (a), the Administrator shall submit to the
full Committee on Banking, Housing, and Urban Affairs and the full
Committee on Appropriations of the Senate and the full Committee on
Financial Services and the full Committee on Appropriations of the
House of Representatives the draft affordability framework required
under subsection (a).
(d) Interagency Agreements.--The Administrator may enter into an
agreement with another Federal agency to--
(1) complete the affordability study referred to in subsection
(a); or
(2) prepare the draft affordability framework required under
subsection (a).
(e) Rule of Construction.--Nothing in this section shall be
construed to provide the Administrator with the authority to provide
assistance to homeowners based on affordability that was not available
prior to the enactment of the Biggert-Waters Flood Insurance Reform Act
of 2012 (Public Law 112-141; 126 Stat. 916).

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Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C.
4081) is amended by adding at the end the following new subsection:
``(e) Risk Transfer.--The Administrator may secure reinsurance of
coverage provided by the flood insurance program from the private
reinsurance and capital markets at rates and on terms determined by the
Administrator to be reasonable and appropriate, in an amount sufficient
to maintain the ability of the program to pay claims.''.

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(a) In General.--Subsection (g) of section 1308 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended by striking
``either annually or in more frequent installments'' and inserting
``annually or monthly''.
(b) Implementation.--The Administrator shall implement the
requirement under section 1308(g) of the National Flood Insurance Act
of 1968, as amended by subsection (a), not later than the expiration of
the 18-month period beginning on the date of the enactment of this Act.

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PROPERTIES.
Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C.
4013) is amended by adding at the end the following new subsection:
``(d) Optional High-Deductible Policies for Residential
Properties.--
``(1) Availability.--In the case of residential properties, the
Administrator shall make flood insurance coverage available, at the
option of the insured, that provides for a loss-deductible for
damage to the covered property in various amounts, up to and
including $10,000.
``(2) Disclosure.--
``(A) Form.--The Administrator shall provide the
information described in subparagraph (B) clearly and
conspicuously on the application form for flood insurance
coverage or on a separate form, segregated from all unrelated
information and other required disclosures.
``(B) Information.--The information described in this
subparagraph is--
``(i) information sufficient to inform the applicant of
the availability of the coverage option required by
paragraph (1) to applicants for flood insurance coverage;
and
``(ii) a statement explaining the effect of a loss-
deductible and that, in the event of an insured loss, the
insured is responsible out-of-pocket for losses to the
extent of the deductible selected.''.

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REQUIREMENT.
(a) Exclusion.--Subsection (c) of section 102 of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(c)) is amended by adding at the
end the following new paragraph:
``(3) Detached structures.--Notwithstanding any other provision
of this section, flood insurance shall not be required, in the case
of any residential property, for any structure that is a part of
such property but is detached from the primary residential
structure of such property and does not serve as a residence.''.
(b) RESPA Statement.--Section 5(b) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2604(b)) is amended--
(1) in paragraph (14), by inserting before the period at the
end the following: ``, and the following statement: `Although you
may not be required to maintain flood insurance on all structures,
you may still wish to do so, and your mortgage lender may still
require you to do so to protect the collateral securing the
mortgage. If you choose to not maintain flood insurance on a
structure, and it floods, you are responsible for all flood losses
relating to that structure.'''; and
(2) by transferring and inserting paragraph (14), as so
amended, after paragraph (13).

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PREMIUM RATES.
Subparagraph (A) of section 1307(a)(1) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(A)) is amended to read as
follows:
``(A) based on consideration of--
``(i) the risk involved and accepted actuarial
principles; and
``(ii) the flood mitigation activities that an owner or
lessee has undertaken on a property, including differences
in the risk involved due to land use measures,
floodproofing, flood forecasting, and similar measures,
and''.

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Section 1307(a)(2)(E)(ii) of the National Flood Insurance Act of
1968 (42 U.S.C. 4014(a)(2)(E)(ii)) is amended by striking ``30
percent'' and inserting ``50 percent''.

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(a) Study Issues.--Subsection (a) of section 100236 of the Biggert-
Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 126
Stat. 957) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(5) options for maintaining affordability if annual premiums
for flood insurance coverage were to increase to an amount greater
than 2 percent of the liability coverage amount under the policy,
including options for enhanced mitigation assistance and means-
tested assistance;
``(6) the effects that the establishment of catastrophe savings
accounts would have regarding long-term affordability of flood
insurance coverage; and
``(7) options for modifying the surcharge under 1308A,
including based on homeowner income, property value or risk of
loss.''.
(b) Timing of Submission.--Notwithstanding the deadline under
section 100236(c) of the Biggert-Waters Flood Insurance Reform Act of
2012 (Public Law 112-141; 126 Stat. 957), not later than 18 months
after the date of enactment of this Act, the Administrator shall submit
to the full Committee on Banking, Housing, and Urban Affairs and the
full Committee on Appropriations of the Senate and the full Committee
on Financial Services and the full Committee on Appropriations of the
House of Representatives the affordability study and report required
under such section 100236.
(c) Affordability Study Funding.--Section 100236(d) of the Biggert-
Waters Flood Insurance Reform Act of 2012 (Public Law 112-141; 126
Stat. 957) is amended by striking ``$750,000'' and inserting
``$2,500,000''.

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The Administrator shall implement a flood mapping program for the
National Flood Insurance Program, only after review by the Technical
Mapping Advisory Council, that, when applied, results in technically
credible flood hazard data in all areas where Flood Insurance Rate Maps
are prepared or updated, shall certify in writing to the Congress when
such a program has been implemented, and shall provide to the Congress
the Technical Mapping Advisory Council review report.

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(a) In General.--Section 1363(f) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4104(f)) is amended--
(1) in the first sentence, by inserting after ``as the case may
be,'' the following: ``or, in the case of an appeal that is
resolved by submission of conflicting data to the Scientific
Resolution Panel provided for in section 1363A, the community,'';
and
(2) by striking the second sentence and inserting the
following: ``The Administrator may use such amounts from the
National Flood Insurance Fund established under section 1310 as may
be necessary to carry out this subsection.''.
(b) Conforming Amendments.--Section 1310(a) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
(1) in paragraph (6), by striking ``and'' at the end;
(2) in paragraph (7), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(8) for carrying out section 1363(f).''.

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(a) Adequate Progress on Construction of Flood Protection
Systems.--Section 1307(e) of the National Flood Insurance Act of 1968
(42 U.S.C. 4014(e)) is amended--
(1) in the first sentence, by inserting ``or reconstruction''
after ``construction'';
(2) by amending the second sentence to read as follows: ``The
Administrator shall find that adequate progress on the construction
or reconstruction of a flood protection system, based on the
present value of the completed flood protection system, has been
made only if: (1) 100 percent of the cost of the system has been
authorized; (2) at least 60 percent of the cost of the system has
been appropriated; (3) at least 50 percent of the cost of the
system has been expended; and (4) the system is at least 50 percent
completed.''; and
(3) by adding at the end the following: ``Notwithstanding any
other provision of law, in determining whether a community has made
adequate progress on the construction, reconstruction, or
improvement of a flood protection system, the Administrator shall
consider all sources of funding, including Federal, State, and
local funds.''.
(b) Communities Restoring Disaccredited Flood Protection Systems.--
Section 1307(f) of the National Flood Insurance Act of 1968 (42 U.S.C.
4014(f)) is amended by amending the first sentence to read as follows:
``Notwithstanding any other provision of law, this subsection shall
apply to riverine and coastal levees that are located in a community
which has been determined by the Administrator of the Federal Emergency
Management Agency to be in the process of restoring flood protection
afforded by a flood protection system that had been previously
accredited on a Flood Insurance Rate Map as providing 100-year
frequency flood protection but no longer does so, and shall apply
without regard to the level of Federal funding of or participation in
the construction, reconstruction, or improvement of the flood
protection system.''.

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Subsection (e) of section 1310A of the National Flood Insurance Act
of 1968 (42 U.S.C. 4017a) is amended, in the matter preceding paragraph
(1), by inserting ``, on a calendar quarterly basis,'' after
``submit''.

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The Administrator shall continue to extend exceptions and variances
for flood-proofed basements consistent with section 60.6 of title 44,
Code of Federal Regulations, which are effective April 3, 2009; and
section 60.3 of such title, which are effective April 3, 2009.

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Notwithstanding any other provision of law, a requester shall be
exempt from submitting a review or processing fee for a request for a
flood insurance rate map change based on a habitat restoration project
that is funded in whole or in part with Federal or State funds,
including dam removal, culvert redesign or installation, or the
installation of fish passage.

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(a) Study.--
(1) Study required.--The Administrator shall conduct a study to
assess options, methods, and strategies for making available
voluntary community-based flood insurance policies through the
National Flood Insurance Program.
(2) Considerations.--The study conducted under paragraph (1)
shall--
(A) take into consideration and analyze how voluntary
community-based flood insurance policies--
(i) would affect communities having varying economic
bases, geographic locations, flood hazard characteristics
or classifications, and flood management approaches; and
(ii) could satisfy the applicable requirements under
section 102 of the Flood Disaster Protection Act of 1973
(42 U.S.C. 4012a); and
(B) evaluate the advisability of making available voluntary
community-based flood insurance policies to communities,
subdivisions of communities, and areas of residual risk.
(3) Consultation.--In conducting the study required under
paragraph (1), the Administrator may consult with the Comptroller
General of the United States, as the Administrator determines is
appropriate.
(b) Report by the Administrator.--
(1) Report required.--Not later than 18 months 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).
(2) Contents.--The report submitted under paragraph (1) shall
include recommendations for--
(A) the best manner to incorporate voluntary community-
based flood insurance policies into the National Flood
Insurance Program; and
(B) a strategy to implement voluntary community-based flood
insurance policies that would encourage communities to
undertake flood mitigation activities, including the
construction, reconstruction, or improvement of levees, dams,
or other flood control structures.
(c) Report by Comptroller General.--Not later than 6 months after
the date on which the Administrator submits the report required under
subsection (b), the Comptroller General of the United States shall--
(1) review the report submitted by the Administrator; and
(2) 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--
(A) an analysis of the report submitted by the
Administrator;
(B) any comments or recommendations of the Comptroller
General relating to the report submitted by the Administrator;
and
(C) any other recommendations of the Comptroller General
relating to community-based flood insurance policies.

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

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PAYMENTS.
(a) In General.--Section 102(d)(1) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a(d)(1)) is amended--
(1) in subparagraph (A), in the second sentence, by striking
``subparagraph (C)'' and inserting ``subparagraph (B)''; and
(2) in subparagraph (B)--
(A) in clause (ii), by redesignating subclauses (I) and
(II) as items (aa) and (bb), respectively, and adjusting the
margins accordingly;
(B) by redesignating clauses (i) and (ii) as subclauses (I)
and (II), respectively, and adjusting the margins accordingly;
(C) in the matter preceding subclause (I), as redesignated
by subparagraph (B), by striking ``(A) or (B), if--'' and
inserting the following: ``(A)--
``(i) if--'';
(D) by striking the period at the end and inserting ``;
or''; and
(E) by adding at the end the following:
``(ii) in the case of a loan that--
``(I) is in a junior or subordinate position to a
senior lien secured by the same residential improved
real estate or mobile home for which flood insurance is
being provided at the time of the origination of the
loan;
``(II) is secured by residential improved real
estate or a mobile home that is part of a condominium,
cooperative, or other project development, if the
residential improved real estate or mobile home is
covered by a flood insurance policy that--
``(aa) meets the requirements that the
regulated lending institution is required to
enforce under subsection (b)(1);
``(bb) is provided by the condominium
association, cooperative, homeowners association,
or other applicable group; and
``(cc) the premium for which is paid by the
condominium association, cooperative, homeowners
association, or other applicable group as a common
expense;
``(III) is secured by residential improved real
estate or a mobile home that is used as collateral for
a business purpose;
``(IV) is a home equity line of credit;
``(V) is a nonperforming loan; or
``(VI) has a term of not longer than 12 months.''.
(b) Applicability.--
(1) In general.--
(A) Required application.--The amendments to section
102(d)(1) of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(d)(1)) made by section 100209(a) of the Biggert-
Waters Flood Insurance Reform Act of 2012 (Public Law 112-141;
126 Stat. 920) and by subsection (a) of this section shall
apply to any loan that is originated, refinanced, increased,
extended, or renewed on or after January 1, 2016.
(B) Optional application.--
(i) Definitions.--In this subparagraph--
(I) the terms ``Federal entity for lending
regulation'', ``improved real estate'', ``regulated
lending institution'', and ``servicer'' have the
meanings given the terms in section 3 of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4003);
(II) the term ``outstanding loan'' means a loan
that--
(aa) is outstanding as of January 1, 2016;
(bb) is not subject to the requirement to
escrow premiums and fees for flood insurance under
section 102(d)(1) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a(d)(1)) as in effect on
July 5, 2012; and
(cc) would, if the loan had been originated,
refinanced, increased, extended, or renewed on or
after January 1, 2016, be subject to the
requirements under section 102(d)(1)(A) of the
Flood Disaster Protection Act of 1973, as amended;
and
(III) the term ``section 102(d)(1)(A) of the Flood
Disaster Protection Act of 1973, as amended'' means
section 102(d)(1)(A) of the Flood Disaster Protection
Act of 1973 (42 U.S.C. 4012a(d)(1)(A)), as amended by--
(aa) section 100209(a) of the Biggert-Waters
Flood Insurance Reform Act of 2012 (Public Law 112-
141; 126 Stat. 920); and
(bb) subsection (a) of this section.
(ii) Option to escrow flood insurance payments.--Each
Federal entity for lending regulation (after consultation
and coordination with the Federal Financial Institutions
Examination Council) shall, by regulation, direct that each
regulated lending institution or servicer of an outstanding
loan shall offer and make available to a borrower the
option to have the borrower's payment of premiums and fees
for flood insurance under the National Flood Insurance Act
of 1968 (42 U.S.C. 4001 et seq.), including the escrow of
such payments, be treated in the same manner provided under
section 102(d)(1)(A) of the Flood Disaster Protection Act
of 1973, as amended.
(2) Repeal of 2-year delay on applicability.--Subsection (b) of
section 100209 of the Biggert-Waters Flood Insurance Reform Act of
2012 (Public Law 112-141; 126 Stat. 920) is repealed.
(3) Rule of construction.--Nothing in this section or the
amendments made by this section shall be construed to supersede,
during the period beginning on July 6, 2012 and ending on December
31, 2015, the requirements under section 102(d)(1) of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)), as in
effect on July 5, 2012.

3e60db7e78b0586bb9f4c255184827c22740f1c59647af95c38eecc5bb1242db

(a) Guidelines.--
(1) In general.--Section 1361 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4102) is amended by adding at the end the
following new subsection:
``(d) Flood Mitigation Methods for Buildings.--The Administrator
shall establish guidelines for property owners that--
``(1) provide alternative methods of mitigation, other than
building elevation, to reduce flood risk to residential buildings
that cannot be elevated due to their structural characteristics,
including--
``(A) types of building materials; and
``(B) types of floodproofing; and
``(2) inform property owners about how the implementation of
mitigation methods described in paragraph (1) may affect risk
premium rates for flood insurance coverage under the National Flood
Insurance Program.''.
(2) Issuance.--The Administrator shall issue the guidelines
required under section 1361(d) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4102(d)), as added by the amendment made by
paragraph (1) of this subsection, not later than the expiration of
the 1-year period beginning on the date of the enactment of this
Act.
(b) Calculation of Risk Premium Rates.--Section 1308 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4015), as amended by
the preceding provisions of this Act, is further amended by adding at
the end the following new subsection:
``(k) Consideration of Mitigation Methods.--In calculating the risk
premium rate charged for flood insurance for a property under this
section, the Administrator shall take into account the implementation
of any mitigation method identified by the Administrator in the
guidance issued under section 1361(d) (42 U.S.C. 4102(d)).''.

cb5fd0d88b7f19598c546631c43c6afdb451d819cdb974ffee826f678b4c8b15

Section 100216 of the Biggert-Waters Flood Insurance Reform Act of
2012 (42 U.S.C. 4101b) is amended--
(1) in subsection (b)(1)(A)--
(A) in clause (iv), by striking ``and'' at the end;
(B) by redesignating clause (v) as clause (vi);
(C) by inserting after clause (iv) the following new
clause:
``(v) areas that are protected by non-structural flood
mitigation features; and''; and
(D) in clause (vi) (as so redesignated), by inserting
before the semicolon at the end the following: ``and by non-
structural flood mitigation features''; and
(2) in subsection (d)(1)--
(A) by redesignating subparagraphs (A) through (C) as
subparagraphs (B) through (D), respectively;
(B) in subparagraph (C) (as so redesignated), by striking
``subparagraph (A)'' and inserting ``subparagraph (B)''; and
(C) by inserting before subparagraph (B) (as so
redesignated) the following new subparagraph:
``(A) work with States, local communities, and property
owners to identify areas and features described in subsection
(b)(1)(A)(v);''.

c63a9bb3758bcb4d7502471c42eaf76a0532cee5dc74310ab777644cfffa5d7a

Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
4015), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new subsection:
``(l) Clear Communications.--The Administrator shall clearly
communicate full flood risk determinations to individual property
owners regardless of whether their premium rates are full actuarial
rates.''.

462e20e1c86437965eb0feaaef1d5ac3618cc2ba6ace24ec3a53e261df8abcd0

WORSHIP, AND RESIDENCES.
Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
4015), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new subsection:
``(m) Protection of Small Businesses, Non-Profits, Houses of
Worship, and Residences.--
``(1) Report.--Not later than 18 months after the date of the
enactment of this section and semiannually thereafter, the
Administrator shall monitor and report to Committee on Financial
Services of the House Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate, the Administrator's
assessment of the impact, if any, of the rate increases required
under subparagraphs (A) and (D) of section 1307(a)(2) and the
surcharges required under section 1308A on the affordability of
flood insurance for--
``(A) small businesses with less than 100 employees;
``(B) non-profit entities;
``(C) houses of worship; and
``(D) residences with a value equal to or less than 25
percent of the median home value of properties in the State in
which the property is located.
``(2) Recommendations.--If the Administrator determines that
the rate increases or surcharges described in paragraph (1) are
having a detrimental effect on affordability, including resulting
in lapsed policies, late payments, or other criteria related to
affordability as identified by the Administrator, for any of the
properties identified in subparagraphs (A) through (D) of such
paragraph, the Administrator shall, not later than 3 months after
making such a determination, make such recommendations as the
Administrator considers appropriate to improve affordability to the
Committee on Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of the
Senate.''.

361d856567c2215f8195ec58e41507d836f102020faf44d139aafb22d31ca7d4

Section 100216(d)(1) of the Biggert-Waters Flood Insurance Reform
Act of 2012 (42 U.S.C. 4101b(d)(1)), as amended by section 27 of this
Act, is further amended--
(1) in subparagraph (C)--
(A) by striking ``subparagraph (B)'' and inserting
``subparagraph (E)''; and
(B) by striking ``and'' at the end;
(2) by redesignating subparagraphs (A), (B), (C), and (D) as
subparagraphs (D), (E), (F), and (H), respectively;
(3) by inserting before subparagraph (D), as so redesignated,
the following new subparagraphs:
``(A) before commencement of any mapping or map updating
process, notify each community affected of the model or models
that the Administrator plans to use in such process and provide
an explanation of why such model or models are appropriate;
``(B) provide each community affected a 30-day period
beginning upon notification under subparagraph (A) to consult
with the Administrator regarding the appropriateness, with
respect to such community, of the mapping model or models to be
used; provided that consultation by a community pursuant to
this subparagraph shall not waive or otherwise affect any right
of the community to appeal any flood hazard determinations;
``(C) upon completion of the first Independent Data
Submission, transmit a copy of such Submission to the affected
community, provide the affected community a 30-day period
during which the community may provide data to Administrator
that can be used to supplement or modify the existing data, and
incorporate any data that is consistent with prevailing
engineering principles;''; and
(4) by inserting after subparagraph (F), as so redesignated,
the following new subparagraph:
``(G) not less than 30 days before issuance of any
preliminary map, notify the Senators for each State affected
and each Member of the House of Representatives for each
congressional district affected by the preliminary map in
writing of--
``(i) the estimated schedule for--
``(I) community meetings regarding the preliminary
map;
``(II) publication of notices regarding the
preliminary map in local newspapers; and
``(III) the commencement of the appeals process
regarding the map; and
``(ii) the estimated number of homes and businesses
that will be affected by changes contained in the
preliminary map, including how many structures will be that
were not previously located in an area having special flood
hazards will be located within such an area under the
preliminary map; and''.

efa6a67102d1183b3b195408988e6debcebb6f944175f998a720f4cb4c3fb4ce

(a) Changes in Rates Resulting From This Act.--Not later than the
date that is 6 months before the date on which any change in risk
premium rates for flood insurance coverage under the National Flood
Insurance Program resulting from this Act or any amendment made by this
Act is implemented, the Administrator shall make publicly available the
rate tables and underwriting guidelines that provide the basis for the
change.
(b) Report on Policy and Claims Data.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall submit to the
Congress a report on the feasibility of--
(A) releasing property-level policy and claims data for
flood insurance coverage under the National Flood Insurance
Program; and
(B) establishing guidelines for releasing property-level
policy and claims data for flood insurance coverage under the
National Flood Insurance Program in accordance with section
552a of title 5, United States Code (commonly known as the
Privacy Act of 1974).
(2) Contents.--The report submitted under paragraph (1) shall
include--
(A) an analysis and assessment of how releasing property-
level policy and claims data for flood insurance coverage under
the National Flood Insurance Program will aid policy holders
and insurers to understand how the Administration determines
actuarial premium rates and assesses flood risks; and
(B) recommendations for protecting personal information in
accordance with section 552a of title 5, United States Code
(commonly known as the Privacy Act of 1974).
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

5ad8ce1d11ab66b69c736fd2a742763ec2f4f23f0dea3bf44fa18b7662f86608

Homeowner Flood Insurance Affordability Act of 2014 — HR. 3370

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