-CITE- 42 USC CHAPTER 50 - NATIONAL FLOOD INSURANCE 01/02/2006 -EXPCITE- TITLE 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 50 - NATIONAL FLOOD INSURANCE -HEAD- CHAPTER 50 - NATIONAL FLOOD INSURANCE -MISC1- Sec. 4001. Congressional findings and declaration of purpose. (a) Necessity and reasons for flood insurance program. (b) Participation of Federal Government in flood insurance program carried out by private insurance industry. (c) Unified national program for flood plain management. (d) Authorization of flood insurance program; flexibility in program. (e) Land use adjustments by State and local governments; development of proposed future construction; assistance of lending and credit institutions; relation of Federal assistance to all flood-related programs; continuing studies. (f) Mudslides. 4002. Additional Congressional findings and declaration of purpose. 4003. Additional definitions. SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM 4011. Authorization to establish and carry out program. (a) Authorization and establishment. (b) Additional coverage for compliance with land use and control measures. (c) Participation and risk sharing by insurers. 4012. Scope of program and priorities. (a) Priority for insurance for certain residential and church properties and business concerns. (b) Availability of insurance for other properties. (c) Availability of insurance in States or areas evidencing positive interest in securing insurance and assuring adoption of adequate land use and control measures. 4012a. Flood insurance purchase and compliance requirements and escrow accounts. (a) Amount and term of coverage. (b) Requirement for mortgage loans. (c) Exceptions to purchase requirements. (d) Escrow of flood insurance payments. (e) Placement of flood insurance by lender. (f) Civil monetary penalties for failure to require flood insurance or notify. (g) Other actions to remedy pattern of noncompliance. (h) Fee for determining location. 4013. Nature and limitation of insurance coverage. (a) Regulations respecting general terms and conditions of insurability. (b) Regulations respecting amount of coverage. (c) Effective date of policies. 4014. Estimates of premium rates. (a) Studies and investigations. (b) Utilization of services of other Departments and agencies. (c) Priority to studies and investigations in States or areas evidencing positive interest in securing insurance under program. (d) Parishes of Louisiana; premium rates. (e) Eligibility of community making adequate progress on construction of flood protection system for rates not exceeding those applicable to completed flood protection system; determination of adequate progress. (f) Availability of flood insurance in communities restoring disaccredited flood protection systems; criteria; rates. 4015. Chargeable premium rates. (a) Establishment; terms and conditions. (b) Considerations for rates. (c) Actuarial rate properties. (d) Payment of certain sums to Director; deposits in Fund. (e) Annual limitation on premium increases. (f) Adjustment of premium. 4016. Financing provisions; issuance of notes or other obligations; limitation; report to Congressional committees; deposits in Fund. 4017. National Flood Insurance Fund. (a) Establishment; availability. (b) Credits to Fund. (c) Investment of moneys in obligations issued or guaranteed by United States. (d) Availability of Fund if operation of program is carried out through facilities of Federal Government. (e) Annual budget. (f) Availability of funds dependent on future appropriations acts. 4018. Operating costs and allowances; definitions. 4019. Payment of claims. 4020. Dissemination of flood insurance information. 4021. Repealed. 4022. State and local land use controls. (a) Requirement for participation in flood insurance program. (b) Community rating system and incentives for community floodplain management. (c) Replacement of mobile homes on original sites. 4023. Properties in violation of State and local law. 4024. Coordination with other programs. 4025. Flood insurance advisory committee. (a) Appointment; duties. (b) Membership. (c) Compensation and travel expenses. 4026. Expiration of program. 4027. Biennial report to President. (a) In general. (b) Effects of flood insurance program. 4028. John H. Chafee Coastal Barrier Resources System. 4029. Colorado River Floodway. (a) Renewal and transfer of policies; acquisition of policies after filing of maps. (b) New coverage for new construction or substantial improvements. (c) Establishment of temporary boundaries. (d) Loans by federally supervised, approved, regulated, or insured financial institutions. 4030. Grants for repetitive insurance claims properties. (a) In general. (b) Priority for worst-case properties. 4031. Treatment of certain payments. SUBCHAPTER II - ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE PROGRAM 4041. Implementation of program. PART A - INDUSTRY PROGRAM WITH FEDERAL FINANCIAL ASSISTANCE 4051. Industry flood insurance pool; requirements for participation. 4052. Agreements with flood insurance pool. (a) Authorization. (b) Terms and conditions. (c) Additional provisions. 4053. Adjustment and payment of claims; judicial review; limitations; jurisdiction. 4054. Premium equalization payments; basis; aggregate amount; establishment of designated periods. 4055. Reinsurance coverage. (a) Availability for excess losses. (b) Availability pursuant to contract, agreement, or other arrangement; payment of premium, fee, or other charge. (c) Excess loss agreement; negotiation. (d) Submission of excess losses on portfolio basis. 4056. Emergency implementation of flood insurance program; applicability of other provisions of law. PART B - GOVERNMENT PROGRAM WITH INDUSTRY ASSISTANCE 4071. Federal operation of program; determination by Director; fiscal agents; report to Congress. 4072. Adjustment and payment of claims; judicial review; limitations; jurisdiction. PART C - GENERAL PROVISIONS 4081. Services by insurance industry; contracts, agreements, or other arrangements. 4082. Use of insurance pool, companies, or other private organizations for certain payments. (a) Authorization to enter into contracts for certain responsibilities. (b) Terms and conditions of contract. (c) Competitive bidding. (d) Findings of Director. (e) Bond; liability of certifying officers and disbursing officers. (f) Term of contract; renewals; termination. 4083. Settlement of claims; arbitration. 4084. Records and audits. SUBCHAPTER III - COORDINATION OF FLOOD INSURANCE WITH LAND-MANAGEMENT PROGRAMS IN FLOOD-PRONE AREAS 4101. Identification of flood-prone areas. (a) Publication of information; establishment of flood-risk zones; estimates of flood-caused loss. (b) Accelerated identification of flood-risk zones; authority of Director: grants, technical assistance, transactions, and payments. (c) Priority in allocation of manpower and other available resources for identification and mapping of flood hazard areas and flood-risk zones. (d) Plan for bringing communities with flood-risk zones into full program status. (e) Review of flood maps. (f) Updating flood maps. (g) Availability of flood maps. (h) Notification of flood map changes. (i) Compendia of flood map changes. (j) Provision of information. 4102. Criteria for land management and use. (a) Studies and investigations. (b) Extent of studies and investigations. (c) Development of comprehensive criteria designed to encourage adoption of adequate State and local measures. 4102a Pilot program for mitigation of severe repetitive loss properties. (a) Authority. (b) Severe repetitive loss property. (c) Eligible activities. (d) Matching requirement. (e) Notice of mitigation program. (f) Standards for mitigation offers. (g) Purchase offers. (h) Increased premiums in cases of refusal to mitigate. (i) Discretionary actions in cases of fraudulent claims. (j) Rules. (k) Funding. (l) Termination. 4103. Repealed. 4104. Flood elevation determinations. (a) Publication or notification of proposed flood elevation determinations. (b) Publication of flood elevation determinations; appeal of owner or lessee to local government; scientific or technical knowledge or information as basis for appeal; modification of proposed determinations. (c) Appeals by private persons; submission of negativing or contradicting data to community; opinion of community respecting justification for appeal by community; transmission of individual appeals to Director; filing of community action with Director. (d) Administrative review of appeals by private persons; modification of proposed determinations; decision of Director: form and distribution. (e) Administrative review of appeals by community; agencies for resolution of conflicting data; availability of flood insurance pending such resolution; time for determination of Director; community adoption of local land use and control measures within reasonable time of final determination; public inspection and admissibility in evidence of reports and other administrative information. (f) Reimbursement of certain expenses; appropriation authorization. (g) Judicial review of final administrative determinations; venue; time for appeal; scope of review; good cause for stay of final determinations. 4104a. Notice requirements. (a) Notification of special flood hazards. (b) Notification of change of servicer. (c) Notification of expiration of insurance. 4104b. Standard hazard determination forms. (a) Development. (b) Design and contents. (c) Required use. (d) Guarantees regarding information. (e) Reliance on previous determination. (f) Effective date. 4104c. Mitigation assistance. (a) Authority. (b) Planning assistance grants. (c) Eligibility for mitigation assistance. (d) Notification of approval and grant award. (e) Eligible mitigation activities. (f) Limitations on amount of assistance. (g) Matching requirement. (h) Oversight of mitigation plans. (i) Recapture. (j) Reports. (k) "Community" defined. (m) Coordination with States and communities. 4104d. National Flood Mitigation Fund. (a) Establishment and availability. (b) Credits. (c) Administrative expenses. (d) Investment. (e) Report. 4105. Disaster mitigation requirements; notification to flood-prone areas. (a) Initial notification. (b) Alternative actions of tentatively identified communities; public hearing; opportunity for submission of evidence; finality of administrative determination of existence or extent of flood hazard area. (c) Subsequent notification to additional communities known to be flood prone areas. (d) Provisions of section 4106 applicable to flood-prone communities disqualified for flood insurance program. (e) Administrative procedures; establishment; reimbursement of certain expenses; appropriation authorization. 4106. Nonparticipation in flood insurance program. (a) Prohibition against Federal approval of financial assistance. (b) Notification of purchaser or lessee of property in flood hazard area of availability of Federal disaster relief assistance in event of a flood disaster. 4107. Consultation with local officials; scope. SUBCHAPTER IV - GENERAL PROVISIONS 4121. Definitions. 4122. Studies of other natural disasters; cooperation and consultation with other departments and agencies. 4123. Advance payments. 4124. Applicability of fiscal controls. 4125. Finality of certain financial transactions. 4126. Administrative expenses. 4127. Authorization of appropriations; availability. 4128. Rules and regulations. 4129. Federal Insurance Administrator; establishment of position. -End- -CITE- 42 USC Sec. 4001 01/02/2006 -EXPCITE- TITLE 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 50 - NATIONAL FLOOD INSURANCE -HEAD- Sec. 4001. Congressional findings and declaration of purpose -STATUTE- (a) Necessity and reasons for flood insurance program The Congress finds that (1) from time to time flood disasters have created personal hardships and economic distress which have required unforeseen disaster relief measures and have placed an increasing burden on the Nation's resources; (2) despite the installation of preventive and protective works and the adoption of other public programs designed to reduce losses caused by flood damage, these methods have not been sufficient to protect adequately against growing exposure to future flood losses; (3) as a matter of national policy, a reasonable method of sharing the risk of flood losses is through a program of flood insurance which can complement and encourage preventive and protective measures; and (4) if such a program is initiated and carried out gradually, it can be expanded as knowledge is gained and experience is appraised, thus eventually making flood insurance coverage available on reasonable terms and conditions to persons who have need for such protection. (b) Participation of Federal Government in flood insurance program carried out by private insurance industry The Congress also finds that (1) many factors have made it uneconomic for the private insurance industry alone to make flood insurance available to those in need of such protection on reasonable terms and conditions; but (2) a program of flood insurance with large-scale participation of the Federal Government and carried out to the maximum extent practicable by the private insurance industry is feasible and can be initiated. (c) Unified national program for flood plain management The Congress further finds that (1) a program of flood insurance can promote the public interest by providing appropriate protection against the perils of flood losses and encouraging sound land use by minimizing exposure of property to flood losses; and (2) the objectives of a flood insurance program should be integrally related to a unified national program for flood plain management and, to this end, it is the sense of Congress that within two years following the effective date of this chapter the President should transmit to the Congress for its consideration any further proposals necessary for such a unified program, including proposals for the allocation of costs among beneficiaries of flood protection. (d) Authorization of flood insurance program; flexibility in program It is therefore the purpose of this chapter to (1) authorize a flood insurance program by means of which flood insurance, over a period of time, can be made available on a nationwide basis through the cooperative efforts of the Federal Government and the private insurance industry, and (2) provide flexibility in the program so that such flood insurance may be based on workable methods of pooling risks, minimizing costs, and distributing burdens equitably among those who will be protected by flood insurance and the general public. (e) Land use adjustments by State and local governments; development of proposed future construction; assistance of lending and credit institutions; relation of Federal assistance to all flood-related programs; continuing studies It is the further purpose of this chapter to (1) encourage State and local governments to make appropriate land use adjustments to constrict the development of land which is exposed to flood damage and minimize damage caused by flood losses, (2) guide the development of proposed future construction, where practicable, away from locations which are threatened by flood hazards, (3) encourage lending and credit institutions, as a matter of national policy, to assist in furthering the objectives of the flood insurance program, (4) assure that any Federal assistance provided under the program will be related closely to all flood-related programs and activities of the Federal Government, and (5) authorize continuing studies of flood hazards in order to provide for a constant reappraisal of the flood insurance program and its effect on land use requirements. (f) Mudslides The Congress also finds that (1) the damage and loss which results from mudslides is related in cause and similar in effect to that which results directly from storms, deluges, overflowing waters, and other forms of flooding, and (2) the problems involved in providing protection against this damage and loss, and the possibilities for making such protection available through a Federal or federally sponsored program, are similar to those which exist in connection with efforts to provide protection against damage and loss caused by such other forms of flooding. It is therefore the further purpose of this chapter to make available, by means of the methods, procedures, and instrumentalities which are otherwise established or available under this chapter for purposes of the flood insurance program, protection against damage and loss resulting from mudslides that are caused by accumulations of water on or under the ground. -SOURCE- (Pub. L. 90-448, title XIII, Sec. 1302, Aug. 1, 1968, 82 Stat. 572; Pub. L. 91-152, title IV, Sec. 409(a), Dec. 24, 1969, 83 Stat. 397; Pub. L. 93-234, title I, Sec. 108(a), Dec. 31, 1973, 87 Stat. 979; Pub. L. 103-325, title V, Sec. 552(d), Sept. 23, 1994, 108 Stat. 2269.) -REFTEXT- REFERENCES IN TEXT This chapter, referred to in subsecs. (d) to (f), is title XIII of Pub. L. 90-448, Aug. 1, 1968, 82 Stat. 572, as amended, known as the National Flood Insurance Act of 1968, which enacted this chapter, amended section 2414 of this title, repealed sections 2401 to 2413 and 2415 to 2421 of this title, and enacted provisions set out as a note below. For complete classification of this Act to the Code, see Short Title note set out below and Tables. -MISC1- AMENDMENTS 1994 - Subsec. (g). Pub. L. 103-325 struck out subsec. (g) which read as follows: "The Congress also finds that (1) the damage and loss which may result from the erosion and undermining of shorelines by waves or currents in lakes and other bodies of water exceeding anticipated cyclical levels is related in cause and similar in effect to that which results directly from storms, deluges, overflowing waters, and other forms of flooding, and (2) the problems involved in providing protection against this damage and loss, and the possibilities for making such protection available through a Federal or federally sponsored program, are similar to those which exist in connection with efforts to provide protection against damage and loss caused by such other forms of flooding. It is therefore the further purpose of this chapter to make available, by means of the methods, procedures, and instrumentalities which are otherwise established or available under this chapter for purposes of the flood insurance program, protection against damage and loss resulting from the erosion and undermining of shorelines by waves or currents in lakes and other bodies of water exceeding anticipated cyclical levels." 1973 - Subsec. (g). Pub. L. 93-234 added subsec. (g). 1969 - Subsec. (f). Pub. L. 91-152 added subsec. (f). EFFECTIVE DATE Section 1377 of title XIII of Pub. L. 90-448 provided that: "This title [enacting this chapter, amending section 2414 of this title, repealing sections 2401 to 2413 and 2415 to 2421 of this title, and enacting provisions set out as notes under this section] shall take effect one hundred and twenty days following the date of its enactment [Aug. 1, 1968], except that the Secretary, on the basis of a finding that conditions exist necessitating the prescribing of an additional period, may prescribe a later effective date which in no event shall be more than one hundred and eighty days following such date of enactment." SHORT TITLE OF 2005 AMENDMENTS Pub. L. 109-106, Sec. 1, Nov. 21, 2005, 119 Stat. 2288, provided that: "This Act [amending section 4016 of this title] may be cited as the 'National Flood Insurance Program Further Enhanced Borrowing Authority Act of 2005'." Pub. L. 109-65, Sec. 1, Sept. 20, 2005, 119 Stat. 1998, provided that: "This Act [amending section 4016 of this title] may be cited as the 'National Flood Insurance Program Enhanced Borrowing Authority Act of 2005'." SHORT TITLE OF 2004 AMENDMENT Pub. L. 108-264, Sec. 1(a), June 30, 2004, 118 Stat. 712, provided that: "This Act [enacting sections 4030 and 4102a of this title, amending sections 4011, 4015 to 4017, 4022, 4026, 4056, 4104c, 4104d, 4121, and 4127 of this title, and enacting provisions set out as notes under this section and sections 4011 and 4101 of this title] may be cited as the 'Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004'." SHORT TITLE OF 2003 AMENDMENTS Pub. L. 108-171, Sec. 1, Dec. 6, 2003, 117 Stat. 2064, provided that: "This Act [amending sections 4016, 4026, 4056, and 4127 of this title and enacting provisions set out as a note under section 4016 of this title] may be cited as the 'National Flood Insurance Program Reauthorization Act of 2004'." Pub. L. 108-3, Sec. 1, Jan. 13, 2003, 117 Stat. 7, provided that: "This Act [amending sections 4016, 4026, 4056, and 4127 of this title and enacting provisions set out as a note under section 4016 of this title] may be cited as the 'National Flood Insurance Program Reauthorization Act of 2003'." SHORT TITLE OF 1994 AMENDMENT Section 501 of title V of Pub. L. 103-325 provided that: "This title [enacting sections 4104b to 4104d and 5154a of this title, amending this section, sections 4003, 4011, 4012a, 4013, 4015, 4017, 4022, 4026, 4027, 4029, 4056, 4081, 4101, 4104a, 4106, 4121, and 5154 of this title, and sections 1784, 1820, 3305, and 4521 of Title 12, Banks and Banking, repealing section 4103 of this title, enacting provisions set out as notes under this section and sections 4011, 4013, 4014, 4101 to 4103, and 4104c of this title, and repealing provisions set out as a note under section 4015 of this title] may be cited as the 'National Flood Insurance Reform Act of 1994'." SHORT TITLE OF 1973 AMENDMENT Pub. L. 93-234, Sec. 1, Dec. 31, 1973, 87 Stat. 975, provided: "That this Act [enacting sections 4002, 4003, 4012a, 4104, 4105 to 4107, and 4128 of this title, amending this section, sections 4013 to 4016, 4026, 4054, 4056, 4101, and 4121 of this title, and sections 24 and 1709-1 of Title 12, Banks and Banking, and repealing section 4021 of this title] may be cited as the 'Flood Disaster Protection Act of 1973'." SHORT TITLE Section 1301 of title XIII of Pub. L. 90-448 provided that: "This title [enacting this chapter, amending section 2414 of this title, repealing sections 2401 to 2413 and 2415 to 2421 of this title, and enacting provisions set out as a note under this section] may be cited as the 'National Flood Insurance Act of 1968'." REGULATIONS Section 583 of title V of Pub. L. 103-325 provided that: "The Director of the Federal Emergency Management Agency and any appropriate Federal agency may each issue any regulations necessary to carry out the applicable provisions of this title [see Short Title of 1994 Amendment note above] and the applicable amendments made by this title." [For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 313(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6.] EVALUATION OF EROSION HAZARDS Section 577(a)-(g) of Pub. L. 103-325 provided that: "(a) Report Requirement. - The Director of the Federal Emergency Management Agency (in this section referred to as the 'Director') shall submit a report under this section to the Congress that - "(1) lists all communities that are likely to be identified as having erosion hazard areas; "(2) estimates the amount of flood insurance claims under the national flood insurance program that are attributable to erosion; "(3) states the amount of flood insurance claims under such program that are attributable to claims under section 1306(c) of the National Flood Insurance Act of 1968 [42 U.S.C. 4013(c)]; "(4) assesses the full economic impact of erosion on the National Flood Insurance Fund; and "(5) determines the costs and benefits of expenditures necessary from the National Flood Insurance Fund to complete mapping of erosion hazard areas. "(b) Estimate of Flood Claims. - In developing the estimate under subsection (a)(2) - "(1) the Director may map a statistically valid and representative number of communities with erosion hazard areas throughout the United States, including coastal, Great Lakes, and, if technologically feasible, riverine areas; and "(2) the Director shall take into consideration the efforts of State and local governments to assess, measure, and reduce erosion hazards. "(c) Economic Impact. - "(1) In general. - The assessment under subsection (a)(4) shall assess the economic impact of - "(A) erosion on communities listed pursuant to subsection (a)(1); "(B) the denial of flood insurance for all structures in communities listed pursuant to subsection (a)(1); "(C) the denial of flood insurance for structures that are newly constructed in whole in communities listed pursuant to subsection (a)(1); "(D) the establishment of (i) actuarial rates for existing structures in communities listed pursuant to subsection (a)(1), and (ii) actuarial rates for such structures in connection with the denial of flood insurance as described in subparagraph (C); "(E) the establishment of actuarial rates for structures newly constructed in whole in erosion hazard areas in communities listed pursuant to subsection (a)(1); "(F) the denial of flood insurance pursuant to existing requirements for coverage under the national flood insurance program; "(G) erosion hazard assessment, measurement, and management activities undertaken by State and local governments, including building restrictions, beach nourishment, construction of sea walls and levees, and other activities that reduce the risk of damage due to erosion; and "(H) the mapping and identifying of communities (or subdivisions thereof) having erosion hazard areas. "(2) Scope. - In assessing the economic impact of the activities under subparagraphs (A) through (H) of paragraph (1), the assessment under subsection (a)(4) shall address such impact on all significant economic factors, including the impact on - "(A) the value of residential and commercial properties in communities with erosion hazards; "(B) community tax revenues due to potential changes in property values or commercial activity; "(C) employment, including the potential loss or gain of existing and new jobs in the community; "(D) existing businesses and future economic development; "(E) the estimated cost of Federal and State disaster assistance to flood victims; and "(F) the mapping and identifying of communities (or subdivisions thereof) having erosion hazard areas. "(3) Preparation. - The assessment required under subsection (a)(4) shall be conducted by a private independent entity selected by the Director. The private entity shall consult with a statistically valid and representative number of communities listed pursuant to subsection (a)(1) in conducting the assessment. "(d) Costs and Benefits of Mapping. - The determination under subsection (a)(5) shall - "(1) determine the costs and benefits of mapping erosion hazard areas, based upon the Director's estimate of the actual and prospective amount of flood insurance claims attributable to erosion; "(2) if the Director determines that the savings to the National Flood Insurance Fund will exceed the cost of mapping erosion hazard areas, further assess whether using flood insurance premiums for costs of mapping erosion hazard areas is cost-beneficial compared to alternative uses of such amounts, including - "(A) funding the mitigation assistance program under section 1366 of the National Flood Insurance Act of 1968 [42 U.S.C. 4104c] (as added by section 553 of this Act); "(B) funding the program under section 1304(b) of the National Flood Insurance Act of 1968 [42 U.S.C. 4011(b)] (as added by section 555(a) of this Act) that provides additional coverage under the national flood insurance program for compliance with land use and control measures; and "(C) reviewing, revising, and updating flood insurance rate maps under subsections (e) and (f) of section 1360 of the National Flood Insurance Act of 1968 [42 U.S.C. 4101(e), (f)] (as added by the amendment made by section 575 of this Act); "(3) if the Director determines under subsection (b)(1) that mapping of riverine areas for erosion hazard areas is technologically feasible, determine the costs and benefits of conducting the mapping of erosion hazards in riverine areas (A) separately from the mapping of other erosion hazard areas, and (B) together with the mapping of other such areas; "(4) if the Director determines that the savings to the National Flood Insurance Fund will exceed the cost of mapping erosion hazard areas in riverine areas, assess whether using flood insurance premiums for costs of mapping erosion hazard areas in riverine areas is cost-beneficial compared to alternative uses of such amounts, including the uses under subparagraphs (A) through (C) of paragraph (2); and "(5) determine the costs and benefits of mapping erosion, other than those directly related to the financial condition of the National Flood Insurance Program, and the costs of not mapping erosion. "(e) Definition. - For purposes of this section, the term 'erosion hazard area' means, based on erosion rate information and other historical data available, an area where erosion or avulsion is likely to result in damage to or loss of buildings and infrastructure within a 60-year period. "(f) Consultation. - In preparing the report under this section, the Director shall consult with - "(1) representatives from State coastal zone management programs approved under section 306 of the Coastal Zone Management Act of 1972 [16 U.S.C. 1455]; "(2) the Administrator of the National Oceanic and Atmospheric Administration; and "(3) any other persons, officials, or entities that the Director considers appropriate. "(g) Submission. - The Director shall submit the report to the Congress as soon as practicable, but not later than 2 years after the date of enactment of this Act [Sept. 23, 1994]." RELATION OF TITLE V OF PUB. L. 103-325 TO STATE AND LOCAL LAWS Section 584 of title V of Pub. L. 103-325 provided that: "This title [see Short Title of 1994 Amendment note above] and the amendments made by this title may not be construed to preempt, annul, alter, amend, or exempt any person from compliance with any law, ordinance, or regulation of any State or local government with respect to land use, management, or control." FLOODPLAIN MANAGEMENT For provisions relating to the reduction of the risk of flood loss, the minimization of the impact of floods on human safety, health and welfare, and the management of floodplains, see Ex. Ord. No. 11988, May 24, 1977, 42 F.R. 26951, set out as a note under section 4321 of this title. -End- -CITE- 42 USC Sec. 4002 01/02/2006 -EXPCITE- TITLE 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 50 - NATIONAL FLOOD INSURANCE -HEAD- Sec. 4002. Additional Congressional findings and declaration of purpose -STATUTE- (a) The Congress finds that - (1) annual losses throughout the Nation from floods and mudslides are increasing at an alarming rate, largely as a result of the accelerating development of, and concentration of population in, areas of flood and mudslide hazards; (2) the availability of Federal loans, grants, guaranties, insurance, and other forms of financial assistance are often determining factors in the utilization of land and the location and construction of public and of private industrial, commercial, and residential facilities; (3) property acquired or constructed with grants or other Federal assistance may be exposed to risk of loss through floods, thus frustrating the purpose for which such assistance was extended; (4) Federal instrumentalities insure or otherwise provide financial protection to banking and credit institutions whose assets include a substantial number of mortgage loans and other indebtedness secured by property exposed to loss and damage from floods and mudslides; (5) the Nation cannot afford the tragic losses of life caused annually by flood occurrences, nor the increasing losses of property suffered by flood victims, most of whom are still inadequately compensated despite the provision of costly disaster relief benefits; and (6) it is in the public interest for persons already living in flood-prone areas to have both an opportunity to purchase flood insurance and access to more adequate limits of coverage, so that they will be indemnified, for their losses in the event of future flood disasters. (b) The purpose of this Act, therefore, is to - (1) substantially increase the limits of coverage authorized under the national flood insurance program; (2) provide for the expeditious identification of, and the dissemination of information concerning, flood-prone areas; (3) require States or local communities, as a condition of future Federal financial assistance, to participate in the flood insurance program and to adopt adequate flood plan ordinances with effective enforcement provisions consistent with Federal standards to reduce or avoid future flood losses; and (4) require the purchase of flood insurance by property owners who are being assisted by Federal programs or by federally supervised, regulated, or insured agencies or institutions in the acquisition or improvement of land or facilities located or to be located in identified areas having special flood hazards. -SOURCE- (Pub. L. 93-234, Sec. 2, Dec. 31, 1973, 87 Stat. 975.) -REFTEXT- REFERENCES IN TEXT This Act, referred to in subsec. (b), means Pub. L. 93-234, Dec. 31, 1973, 87 Stat. 975, as amended, known as the Flood Disaster Protection Act of 1973. For complete classification of this Act to the Code, see Short Title of 1973 Amendment note set out under section 4001 of this title and Tables. -COD- CODIFICATION Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968 which comprises this chapter. -End- -CITE- 42 USC Sec. 4003 01/02/2006 -EXPCITE- TITLE 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 50 - NATIONAL FLOOD INSURANCE -HEAD- Sec. 4003. Additional definitions -STATUTE- (a) As used in this Act, unless the context otherwise requires, the term - (1) "community" means a State or a political subdivision thereof which has zoning and building code jurisdiction over a particular area having special flood hazards; (2) "Federal agency" means any department, agency, corporation, or other entity or instrumentality of the executive branch of the Federal Government, and includes the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation; (3) "financial assistance" means any form of loan, grant, guaranty, insurance, payment, rebate, subsidy, disaster assistance loan or grant, or any other form of direct or indirect Federal assistance, other than general or special revenue sharing or formula grants made to States; (4) "financial assistance for acquisition or construction purposes" means any form of financial assistance which is intended in whole or in part for the acquisition, construction, reconstruction, repair, or improvement of any publicly or privately owned building or mobile home, and for any machinery, equipment, fixtures, and furnishings contained or to be contained therein, and shall include the purchase or subsidization of mortgages or mortgage loans but shall exclude assistance pursuant to the Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et seq.] (other than assistance under such Act in connection with a flood); (5) "Federal entity for lending regulation" means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, and the Farm Credit Administration, and with respect to a particular regulated lending institution means the entity primarily responsible for the supervision of the institution; (6) "Director" means the Director of the Federal Emergency Management Agency; (7) "Federal agency lender" means a Federal agency that makes direct loans secured by improved real estate or a mobile home, to the extent such agency acts in such capacity; (8) the term "improved real estate" means real estate upon which a building is located; (9) "lender" means a regulated lending institution or Federal agency lender; (10) "regulated lending institution" means any bank, savings and loan association, credit union, farm credit bank, Federal land bank association, production credit association, or similar institution subject to the supervision of a Federal entity for lending regulation; and (11) "servicer" means the person responsible for receiving any scheduled periodic payments from a borrower pursuant to the terms of a loan, including amounts for taxes, insurance premiums, and other charges with respect to the property securing the loan, and making the payments of principal and interest and such other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the loan. (b) The Director is authorized to define or redefine, by rules and regulations, any scientific or technical term used in this Act, insofar as such definition is not inconsistent with the purposes of this Act. -SOURCE- (Pub. L. 93-234, Sec. 3, Dec. 31, 1973, 87 Stat. 976; Pub. L. 95- 128, title VII, Sec. 703(b), Oct. 12, 1977, 91 Stat. 1145; Pub. L. 98-181, title IV, Sec. 451(e), Nov. 30, 1983, 97 Stat. 1229; Pub. L. 100-707, title I, Sec. 109(t), Nov. 23, 1988, 102 Stat. 4710; Pub. L. 103-325, title V, Sec. 511(a), Sept. 23, 1994, 108 Stat. 2255.) -REFTEXT- REFERENCES IN TEXT This Act, referred to in text, means Pub. L. 93-234, Dec. 31, 1973, 87 Stat. 975, as amended, known as the Flood Disaster Protection Act of 1973. For complete classification of this Act to the Code, see Short Title of 1973 Amendment note set out under section 4001 of this title and Tables. The Disaster Relief and Emergency Assistance Act, referred to in subsec. (a)(4), is Pub. L. 93-288, May 22, 1974, 88 Stat. 143, as amended, known as the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which is classified principally to chapter 68 (Sec. 5121 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of this title and Tables. -COD- CODIFICATION Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968 which comprises this chapter. -MISC1- AMENDMENTS 1994 - Subsec. (a)(5). Pub. L. 103-325, Sec. 511(a)(1), added par. (5) and struck out former par. (5) which read as follows: " 'Federal instrumentality responsible for the supervision, approval, regulation, or insuring of banks, savings and loan associations, or similar institutions' means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Federal Home Loan Bank Board, the Federal Savings and Loan Insurance Corporation, and the National Credit Union Administration; and". Subsec. (a)(7) to (11). Pub. L. 103-325, Sec. 511(a)(2), (3), added pars. (7) to (11). 1988 - Subsec. (a)(4). Pub. L. 100-707 substituted "Disaster Relief and Emergency Assistance Act" for "Disaster Relief Act of 1974". 1983 - Subsec. (a)(6). Pub. L. 98-181, Sec. 451(e)(2), substituted definition of "Director" meaning the Director of the Federal Emergency Management Agency for definition of "Secretary" meaning the Secretary of Housing and Urban Development. Subsec. (b). Pub. L. 98-181, Sec. 451(e)(1), substituted "Director" for "Secretary". 1977 - Subsec. (a)(4). Pub. L. 95-128 substituted "assistance pursuant to the Disaster Relief Act of 1974 (other than assistance under such Act in connection with a flood)" for "assistance for emergency work essential for the protection and preservation of life and property performed pursuant to the Disaster Relief Act of 1970 or any subsequent Act of Congress which supersedes or modifies the Disaster Relief Act of 1970". -TRANS- TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 313(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. -End- -CITE- 42 USC SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM 01/02/2006 -EXPCITE- TITLE 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 50 - NATIONAL FLOOD INSURANCE SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM -HEAD- SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM -End- -CITE- 42 USC Sec. 4011 01/02/2006 -EXPCITE- TITLE 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 50 - NATIONAL FLOOD INSURANCE SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM -HEAD- Sec. 4011. Authorization to establish and carry out program -STATUTE- (a) Authorization and establishment To carry out the purposes of this chapter, the Director of the Federal Emergency Management Agency is authorized to establish and carry out a national flood insurance program which will enable interested persons to purchase insurance against loss resulting from physical damage to or loss of real property or personal property related thereto arising from any flood occurring in the United States. (b) Additional coverage for compliance with land use and control measures The national flood insurance program established pursuant to subsection (a) of this section shall enable the purchase of insurance to cover the cost of implementing measures that are consistent with land use and control measures established by the community under section 4102 of this title for - (1) properties that are repetitive loss structures; (2) properties that are substantially damaged structures; (3) properties that have sustained flood damage on multiple occasions, if the Director determines that it is cost-effective and in the best interests of the National Flood Insurance Fund to require the implementation of such measures; and (4) properties for which an offer of mitigation assistance is made under - (A) section 4104c of this title (Flood Mitigation Assistance Program); (B) section 1368 (!1) (Repetitive Loss Priority Program and Individual Priority Property Program); (C) the Hazard Mitigation Grant Program authorized under section 5170c of this title; (D) the Predisaster Hazard Mitigation Program under section 5133 of this title; and (E) any programs authorized or for which funds are appropriated to address any unmet needs or for which supplemental funds are made available. The Director shall impose a surcharge on each insured of not more than $75 per policy to provide cost of compliance coverage in accordance with the provisions of this subsection. (c) Participation and risk sharing by insurers In carrying out the flood insurance program the Director shall, to the maximum extent practicable, encourage and arrange for - (1) appropriate financial participation and risk sharing in the program by insurance companies and other insurers, and (2) other appropriate participation, on other than a risk- sharing basis, by insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations, in accordance with the provisions of subchapter II of this chapter. -SOURCE- (Pub. L. 90-448, title XIII, Sec. 1304, Aug. 1, 1968, 82 Stat. 574; Pub. L. 98-181, title IV, Sec. 451(d)(1), (2), Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103-325, title V, Sec. 555(a), Sept. 23, 1994, 108 Stat. 2274; Pub. L. 108-264, title I, Sec. 105(a), June 30, 2004, 118 Stat. 723.) -REFTEXT- REFERENCES IN TEXT This chapter, referred to in subsec. (a), is title XIII of Pub. L. 90-448, Aug. 1, 1968, 82 Stat. 572, as amended, known as the National Flood Insurance Act of 1968, which enacted this chapter, amended section 2414 of this title, repealed sections 2401 to 2413 and 2415 to 2421 of this title, and enacted provisions set out as a note under section 4001 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables. -MISC1- AMENDMENTS 2004 - Subsec. (b). Pub. L. 108-264, Sec. 105(a)(1)(B), which directed insertion of "by the community" after "established" in introductory provisions, was executed by making the insertion after "established" the second time appearing to reflect the probable intent of Congress. Pub. L. 108-264, Sec. 105(a)(1)(A), substituted "implementing measures that are consistent" for "compliance" in introductory provisions. Subsec. (b)(2). Pub. L. 108-264, Sec. 105(a)(2), substituted "are substantially damaged structures;" for "have flood damage in which the cost of repairs equals or exceeds 50 percent of the value of the structure at the time of the flood event; and". Subsec. (b)(3). Pub. L. 108-264, Sec. 105(a)(3), which directed the substitution of "the implementation of such measures; and" for "compliance with land use and control measures.", was executed by making the substitution for "compliance with the land use and control measures.", to reflect the probable intent of Congress. Subsec. (b)(4). Pub. L. 108-264, Sec. 105(a)(4), added par. (4). 1994 - Subsecs. (b), (c). Pub. L. 103-325 added subsec. (b) and redesignated former subsec. (b) as (c). 1983 - Subsec. (a). Pub. L. 98-181, Sec. 451(d)(2), substituted "Director of the Federal Emergency Management Agency" for "Secretary of Housing and Urban Development". Subsec. (b). Pub. L. 98-181, Sec. 451(d)(1), substituted "Director" for "Secretary". EFFECTIVE DATE OF 1994 AMENDMENT Section 555(b) of Pub. L. 103-325 provided that: "The provisions of subsection (a) [amending this section] shall apply only to properties that sustain flood-related damage after the date of enactment of this Act [Sept. 23, 1994]." -TRANS- TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 313(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. -MISC2- CONGRESSIONAL FINDINGS Pub. L. 108-264, Sec. 2, June 30, 2004, 118 Stat. 712, provided that: "The Congress finds that - "(1) the national flood insurance program - "(A) identifies the flood risk; "(B) provides flood risk information to the public; "(C) encourages State and local governments to make appropriate land use adjustments to constrict the development of land which is exposed to flood damage and minimize damage caused by flood losses; and "(D) makes flood insurance available on a nationwide basis that would otherwise not be available, to accelerate recovery from floods, mitigate future losses, save lives, and reduce the personal and national costs of flood disasters; "(2) the national flood insurance program insures approximately 4,400,000 policyholders; "(3) approximately 48,000 properties currently insured under the program have experienced, within a 10-year period, 2 or more flood losses where each such loss exceeds the amount $1,000; "(4) approximately 10,000 of these repetitive-loss properties have experienced either 2 or 3 losses that cumulatively exceed building value or 4 or more losses, each exceeding $1,000; "(5) repetitive-loss properties constitute a significant drain on the resources of the national flood insurance program, costing about $200,000,000 annually; "(6) repetitive-loss properties comprise approximately 1 percent of currently insured properties but are expected to account for 25 to 30 percent of claims losses; "(7) the vast majority of repetitive-loss properties were built before local community implementation of floodplain management standards under the program and thus are eligible for subsidized flood insurance; "(8) while some property owners take advantage of the program allowing subsidized flood insurance without requiring mitigation action, others are trapped in a vicious cycle of suffering flooding, then repairing flood damage, then suffering flooding, without the means to mitigate losses or move out of harm's way; "(9) mitigation of repetitive-loss properties through buyouts, elevations, relocations, or flood-proofing will produce savings for policyholders under the program and for Federal taxpayers through reduced flood insurance losses and reduced Federal disaster assistance; "(10) a strategy of making mitigation offers aimed at high- priority repetitive-loss properties and shifting more of the burden of recovery costs to property owners who choose to remain vulnerable to repetitive flood damage can encourage property owners to take appropriate actions that reduce loss of life and property damage and benefit the financial soundness of the program; "(11) the method for addressing repetitive-loss properties should be flexible enough to take into consideration legitimate circumstances that may prevent an owner from taking a mitigation action; and "(12) focusing the mitigation and buy-out of repetitive loss properties upon communities and property owners that choose to voluntarily participate in a mitigation and buy-out program will maximize the benefits of such a program, while minimizing any adverse impact on communities and property owners." MISCELLANEOUS FLOOD INSURANCE PROVISIONS Pub. L. 108-264, title II, June 30, 2004, 118 Stat. 725, provided that: "SEC. 201. DEFINITIONS. "In this title, the following definitions shall apply: "(1) Director. - The term 'Director' means the Director of the Federal Emergency Management Agency. "(2) Flood insurance policy. - The term 'flood insurance policy' means a flood insurance policy issued under the National Flood Insurance Act of 1968 (42 U.S.C. [4001] et seq.). "(3) Program. - The term 'Program' means the National Flood Insurance Program established under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.). "SEC. 202. SUPPLEMENTAL FORMS. "(a) In General. - Not later than 6 months after the date of enactment of this Act [June 30, 2004], the Director shall develop supplemental forms to be issued in conjunction with the issuance of a flood insurance policy that set forth, in simple terms - "(1) the exact coverages being purchased by a policyholder; "(2) any exclusions from coverage that apply to the coverages purchased; "(3) an explanation, including illustrations, of how lost items and damages will be valued under the policy at the time of loss; "(4) the number and dollar value of claims filed under a flood insurance policy over the life of the property, and the effect, under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.), of the filing of any further claims under a flood insurance policy with respect to that property; and "(5) any other information that the Director determines will be helpful to policyholders in understanding flood insurance coverage. "(b) Distribution. - The forms developed under subsection (a) shall be given to - "(1) all holders of a flood insurance policy at the time of purchase and renewal; and "(2) insurance companies and agents that are authorized to sell flood insurance policies. "SEC. 203. ACKNOWLEDGEMENT FORM. "(a) In General. - Not later than 6 months after the date of enactment of this Act [June 30, 2004], the Director shall develop an acknowledgement form to be signed by the purchaser of a flood insurance policy that contains - "(1) an acknowledgement that the purchaser has received a copy of the standard flood insurance policy, and any forms developed under section 202; and "(2) an acknowledgement that the purchaser has been told that the contents of a property or dwelling are not covered under the terms of the standard flood insurance policy, and that the policyholder has the option to purchase additional coverage for such contents. "(b) Distribution. - Copies of an acknowledgement form executed under subsection (a) shall be made available to the purchaser and the Director. "SEC. 204. FLOOD INSURANCE CLAIMS HANDBOOK. "(a) In General. - Not later than 6 months after the date of enactment of this Act [June 30, 2004], the Director shall develop a flood insurance claims handbook that contains - "(1) a description of the procedures to be followed to file a claim under the Program, including how to pursue a claim to completion; "(2) how to file supplementary claims, proof of loss, and any other information relating to the filing of claims under the Program; and "(3) detailed information regarding the appeals process established under section 205. "(b) Distribution. - The handbook developed under subsection (a) shall be made available to - "(1) each insurance company and agent authorized to sell flood insurance policies; and "(2) each purchaser, at the time of purchase and renewal, of a flood insurance policy, and at the time of any flood loss sustained by such purchaser. "SEC. 205. APPEAL OF DECISIONS RELATING TO FLOOD INSURANCE COVERAGE. "Not later than 6 months after the date of enactment of this Act [June 30, 2004], the Director shall, by regulation, establish an appeals process through which holders of a flood insurance policy may appeal the decisions, with respect to claims, proofs of loss, and loss estimates relating to such flood insurance policy, of - "(1) any insurance agent or adjuster, or insurance company; or "(2) any employee or contractor of the Federal Emergency Management Agency. "SEC. 206. STUDY AND REPORT ON USE OF COST COMPLIANCE COVERAGE. "Not later than 1 year after the date of enactment of this Act [June 30, 2004], the Director of the Federal Emergency Management Agency shall submit to Congress a report that sets forth - "(1) the use of cost of compliance coverage under section 1304(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)) in connection with flood insurance policies; "(2) any barriers to policyholders using the funds provided by cost of compliance coverage under that section 1304(b) under a flood insurance policy, and recommendations to address those barriers; and "(3) the steps that the Federal Emergency Management Agency has taken to ensure that funds paid for cost of compliance coverage under that section 1304(b) are being used to lessen the burdens on all homeowners and the Program. "SEC. 207. MINIMUM TRAINING AND EDUCATION REQUIREMENTS. "The Director of the Federal Emergency Management Agency shall, in cooperation with the insurance industry, State insurance regulators, and other interested parties - "(1) establish minimum training and education requirements for all insurance agents who sell flood insurance policies; and "(2) not later than 6 months after the date of enactment of this Act [June 30, 2004], publish these requirements in the Federal Register, and inform insurance companies and agents of the requirements. "SEC. 208. GAO STUDY AND REPORT. "(a) Study. - The Comptroller General of the United States shall conduct a study of - "(1) the adequacy of the scope of coverage provided under flood insurance policies in meeting the intended goal of Congress that flood victims be restored to their pre-flood conditions, and any recommendations to ensure that goal is being met; "(2) the adequacy of payments to flood victims under flood insurance policies; and "(3) the practices of the Federal Emergency Management Agency and insurance adjusters in estimating losses incurred during a flood, and how such practices affect the adequacy of payments to flood victims. "(b) Report. - Not later than 1 year after the date of enactment of this Act [June 30, 2004], the Comptroller General shall submit to Congress a report regarding the results of the study under subsection (a). "SEC. 209. PROSPECTIVE PAYMENT OF FLOOD INSURANCE PREMIUMS. [Amended section 4015 of this title.] "SEC. 210. REPORT ON CHANGES TO FEE SCHEDULE OR FEE PAYMENT ARRANGEMENTS. "Not later than 3 months after the date of enactment of this Act [June 30, 2004], the Director shall submit a report on any changes or modifications made to the fee schedule or fee payment arrangements between the Federal Emergency Management Agency and insurance adjusters who provide services with respect to flood insurance policies to - "(1) the Committee on Banking, Housing, and Urban Affairs of the Senate; and "(2) the Committee on Financial Services of the House of Representatives." FLOOD INSURANCE INTERAGENCY TASK FORCE Section 561 of Pub. L. 103-325 provided that: "(a) Establishment. - There is hereby established an interagency task force to be known as the Flood Insurance Task Force (in this section referred to as the 'Task Force'). "(b) Membership. - "(1) In general. - The Task Force shall be composed of 10 members, who shall be the designees of - "(A) the Federal Insurance Administrator; "(B) the Federal Housing Commissioner; "(C) the Secretary of Veterans Affairs; "(D) the Administrator of the Farmers Home Administration; "(E) the Administrator of the Small Business Administration; "(F) the Chairman of the Board of Directors of the Farm Credit Administration; "(G) a designee of the Financial Institutions Examination Council; "(H) the Director of the Office of Federal Housing Enterprise Oversight; "(I) the chairman of the Board of Directors of the Federal Home Loan Mortgage Corporation; and "(J) the chairman of the Board of Directors of the Federal National Mortgage Association. "(2) Qualifications. - Members of the Task Force shall be designated for membership on the Task Force by reason of demonstrated knowledge and competence regarding the national flood insurance program. "(c) Duties. - The Task Force shall carry out the following duties: "(1) Recommendations of standardized enforcement procedures. - Make recommendations to the head of each Federal agency and enterprise referred to under subsection (b)(1) regarding establishment or adoption of standardized enforcement procedures among such agencies and corporations responsible for enforcing compliance with the requirements under the national flood insurance program to ensure fullest possible compliance with such requirements. "(2) Study of compliance assistance. - Conduct a study of the extent to which Federal agencies and the secondary mortgage market can provide assistance in ensuring compliance with the requirements under the national flood insurance program and submit to the Congress a report describing the study and any conclusions. "(3) Study of compliance model. - Conduct a study of the extent to which existing programs of Federal agencies and corporations for compliance with the requirements under the national flood insurance program can serve as a model for other Federal agencies responsible for enforcing compliance, and submit to the Congress a report describing the study and any conclusions. "(4) Recommendations for enforcement and compliance procedures. - Develop recommendations regarding enforcement and compliance procedures, based on the studies and findings of the Task Force, and publish such recommendations. "(5) Study of determination fees. - Conduct a study of - "(A) the reasonableness of fees charged pursuant to 102(h) of the Flood Disaster Protection Act of 1973 [42 U.S.C. 4012a(h)] for costs of determining whether the property securing a loan is located in an area having special flood hazards; and "(B) whether the fees charged pursuant to such section by lenders and servicers are greater than the amounts paid by such lenders and servicers to persons actually conducting such determinations and the extent to which the fees exceed such amounts. "(d) Noncompensation. - Members of the Task Force shall receive no additional pay by reason of their service on the Task Force. "(e) Chairperson. - The members of the Task Force shall elect one member as chairperson of the Task Force. "(f) Meetings and Action. - The Task Force shall meet at the call of the chairman or a majority of the members of the Task Force and may take action by a vote of the majority of the members. The Federal Insurance Administrator shall coordinate and call the initial meeting of the Task Force. "(g) Officers. - The chairperson of the Task Force may appoint any officers to carry out the duties of the Task Force under subsection (c). "(h) Staff of Federal Agencies. - Upon request of the chairperson of the Task Force, the head of any of the Federal agencies and entities referred to under subsection (b)(1) may detail, on a nonreimbursable basis, any of the personnel of such agency to the Task Force to assist the Task Force in carrying out its duties under this section. "(i) Powers. - In carrying out this section, the Task Force may hold hearings, sit and act at times and places, take testimony, receive evidence and assistance, provide information, and conduct research as the Task Force considers appropriate. "(j) Termination. - The Task Force shall terminate upon the expiration of the 24-month period beginning upon the designation of the last member to be designated under subsection (b)(1)." -FOOTNOTE- (!1) So in original. Pub. L. 90-448 does not contain a section 1368. -End- -CITE- 42 USC Sec. 4012 01/02/2006 -EXPCITE- TITLE 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 50 - NATIONAL FLOOD INSURANCE SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM -HEAD- Sec. 4012. Scope of program and priorities -STATUTE- (a) Priority for insurance for certain residential and church properties and business concerns In carrying out the flood insurance program the Director shall afford a priority to making flood insurance available to cover residential properties which are designed for the occupancy of from one to four families, church properties, and business properties which are owned or leased and operated by small business concerns. (b) Availability of insurance for other properties If on the basis of - (1) studies and investigations undertaken and carried out and information received or exchanged under section 4014 of this title, and (2) such other information as may be necessary, the Director determines that it would be feasible to extend the flood insurance program to cover other properties, he may take such action under this chapter as from time to time may be necessary in order to make flood insurance available to cover, on such basis as may be feasible, any types and classes of - (A) other residential properties, (B) other business properties, (C) agricultural properties, (D) properties occupied by private nonprofit organizations, and (E) properties owned by State and local governments and agencies thereof, and any such extensions of the program to any types and classes of these properties shall from time to time be prescribed in regulations. (c) Availability of insurance in States or areas evidencing positive interest in securing insurance and assuring adoption of adequate land use and control measures The Director shall make flood insurance available in only those States or areas (or subdivisions thereof) which he has determined have - (1) evidenced a positive interest in securing flood insurance coverage under the flood insurance program, and (2) given satisfactory assurance that by December 31, 1971, adequate land use and control measures will have been adopted for the State or area (or subdivision) which are consistent with the comprehensive criteria for land management and use developed under section 4102 of this title, and that the application and enforcement of such measures will commence as soon as technical information on floodways and on controlling flood elevations is available. -SOURCE- (Pub. L. 90-448, title XIII, Sec. 1305, Aug. 1, 1968, 82 Stat. 574; Pub. L. 91-152, title IV, Sec. 410(a), Dec. 24, 1969, 83 Stat. 397; Pub. L. 92-213, Sec. 2(c)(1), Dec. 22, 1971, 85 Stat. 775; Pub. L. 98-181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat. 1229.) -MISC1- AMENDMENTS 1983 - Pub. L. 98-181 substituted "Director" for "Secretary" wherever appearing. 1971 - Subsec. (a). Pub. L. 92-213 inserted reference to church properties. 1969 - Subsec. (c)(2). Pub. L. 91-152 substituted "December 31, 1971, adequate" for "June 30, 1970, permanent". -TRANS- TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 313(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. -End- -CITE- 42 USC Sec. 4012a 01/02/2006 -EXPCITE- TITLE 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 50 - NATIONAL FLOOD INSURANCE SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM -HEAD- Sec. 4012a. Flood insurance purchase and compliance requirements and escrow accounts -STATUTE- (a) Amount and term of coverage After the expiration of sixty days following December 31, 1973, no Federal officer or agency shall approve any financial assistance for acquisition or construction purposes for use in any area that has been identified by the Director as an area having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968 [42 U.S.C. 4001 et seq.], unless the building or mobile home and any personal property to which such financial assistance relates is covered by flood insurance in an amount at least equal to its development or project cost (less estimated land cost) or to the maximum limit of coverage made available with respect to the particular type of property under the National Flood Insurance Act of 1968, whichever is less: Provided, That if the financial assistance provided is in the form of a loan or an insurance or guaranty of a loan, the amount of flood insurance required need not exceed the outstanding principal balance of the loan and need not be required beyond the term of the loan. The requirement of maintaining flood insurance shall apply during the life of the property, regardless of transfer of ownership of such property. (b) Requirement for mortgage loans (1) Regulated lending institutions Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council established under the Federal Financial Institutions Examination Council Act of 1974 [12 U.S.C. 3301 et seq.]) shall by regulation direct regulated lending institutions not to make, increase, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Director as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968 [42 U.S.C. 4001 et seq.], unless the building or mobile home and any personal property securing such loan is covered for the term of the loan by flood insurance in an amount at least equal to the outstanding principal balance of the loan or the maximum limit of coverage made available under the Act with respect to the particular type of property, whichever is less. (2) Federal agency lenders A Federal agency lender may not make, increase, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Director as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968, unless the building or mobile home and any personal property securing such loan is covered for the term of the loan by flood insurance in the amount provided in paragraph (1). Each Federal agency lender shall issue any regulations necessary to carry out this paragraph. Such regulations shall be consistent with and substantially identical to the regulations issued under paragraph (1). (3) Government-sponsored enterprises for housing The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall implement procedures reasonably designed to ensure that, for any loan that is - (A) secured by improved real estate or a mobile home located in an area that has been identified, at the time of the origination of the loan or at any time during the term of the loan, by the Director as an area having special flood hazards and in which flood insurance is available under the National Flood Insurance Act of 1968, and (B) purchased by such entity, the building or mobile home and any personal property securing the loan is covered for the term of the loan by flood insurance in the amount provided in paragraph (1). (4) Applicability (A) Existing coverage Except as provided in subparagraph (B), paragraph (1) shall apply on September 23, 1994. (B) New coverage Paragraphs (2) and (3) shall apply only with respect to any loan made, increased, extended, or renewed after the expiration of the 1-year period beginning on September 23, 1994. Paragraph (1) shall apply with respect to any loan made, increased, extended, or renewed by any lender supervised by the Farm Credit Administration only after the expiration of the period under this subparagraph. (C) Continued effect of regulations Notwithstanding any other provision of this subsection, the regulations to carry out paragraph (1), as in effect immediately before September 23, 1994, shall continue to apply until the regulations issued to carry out paragraph (1) as amended by section 522(a) of Public Law 103-325 take effect. (c) Exceptions to purchase requirements (1) State-owned property Notwithstanding the other provisions of this section, flood insurance shall not be required on any State-owned property that is covered under an adequate State policy of self-insurance satisfactory to the Director. The Director shall publish and periodically revise the list of States to which this subsection applies. (2) Small loans Notwithstanding any other provision of this section, subsections (a) and (b) of this section shall not apply to any loan having - (A) an original outstanding principal balance of $5,000 or less; and (B) a repayment term of 1 year or less. (d) Escrow of flood insurance payments (1) Regulated lending institutions Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council) shall by regulation require that, if a regulated lending institution requires the escrowing of taxes, insurance premiums, fees, or any other charges for a loan secured by residential improved real estate or a mobile home, then all premiums and fees for flood insurance under the National Flood Insurance Act of 1968 [42 U.S.C. 4001 et seq.] for the real estate or mobile home shall be paid to the regulated lending institution or other servicer for the loan in a manner sufficient to make payments as due for the duration of the loan. Upon receipt of the premiums, the regulated lending institution or servicer of the loan shall deposit the premiums in an escrow account on behalf of the borrower. Upon receipt of a notice from the Director or the provider of the insurance that insurance premiums are due, the regulated lending institution or servicer shall pay from the escrow account to the provider of the insurance the amount of insurance premiums owed. (2) Federal agency lenders Each Federal agency lender shall by regulation require and provide for escrow and payment of any flood insurance premiums and fees relating to residential improved real estate and mobile homes securing loans made by the Federal agency lender under the circumstances and in the manner provided under paragraph (1). Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under paragraph (1). (3) Applicability of RESPA Escrow accounts established pursuant to this subsection shall be subject to the provisions of section 10 of the Real Estate Settlement Procedures Act of 1974 [12 U.S.C. 2609]. (4) "Residential improved real estate" defined For purposes of this subsection, the term "residential improved real estate" means improved real estate for which the improvement is a residential building. (5) Applicability This subsection shall apply only with respect to any loan made, increased, extended, or renewed after the expiration of the 1- year period beginning on September 23, 1994. (e) Placement of flood insurance by lender (1) Notification to borrower of lack of coverage If, at the time of origination or at any time during the term of a loan secured by improved real estate or by a mobile home located in an area that has been identified by the Director (at the time of the origination of the loan or at any time during the term of the loan) as an area having special flood hazards and in which flood insurance is available under the National Flood Insurance Act of 1968 [42 U.S.C. 4001 et seq.], the lender or servicer for the loan determines that the building or mobile home and any personal property securing the loan is not covered by flood insurance or is covered by such insurance in an amount less than the amount required for the property pursuant to paragraph (1), (2), or (3) of subsection (b) of this section, the lender or servicer shall notify the borrower under the loan that the borrower should obtain, at the borrower's expense, an amount of flood insurance for the building or mobile home and such personal property that is not less than the amount under subsection (b)(1) of this section, for the term of the loan. (2) Purchase of coverage on behalf of borrower If the borrower fails to purchase such flood insurance within 45 days after notification under paragraph (1), the lender or servicer for the loan shall purchase the insurance on behalf of the borrower and may charge the borrower for the cost of premiums and fees incurred by the lender or servicer for the loan in purchasing the insurance. (3) Review of determination regarding required purchase (A) In general The borrower and lender for a loan secured by improved real estate or a mobile home may jointly request the Director to review a determination of whether the building or mobile home is located in an area having special flood hazards. Such request shall be supported by technical information relating to the improved real estate or mobile home. Not later than 45 days after the Director receives the request, the Director shall review the determination and provide to the borrower and the lender with a letter stating whether or not the building or mobile home is in an area having special flood hazards. The determination of the Director shall be final. (B) Effect of determination Any person to whom a borrower provides a letter issued by the Director pursuant to subparagraph (A), stating that the building or mobile home securing the loan of the borrower is not in an area having special flood hazards, shall have no obligation under this title (!1) to require the purchase of flood insurance for such building or mobile home during the period determined by the Director, which shall be specified in the letter and shall begin on the date on which such letter is provided. (C) Effect of failure to respond If a request under subparagraph (A) is made in connection with the origination of a loan and the Director fails to provide a letter under subparagraph (A) before the later of (i) the expiration of the 45-day period under such subparagraph, or (ii) the closing of the loan, no person shall have an obligation under this title (!1) to require the purchase of flood insurance for the building or mobile home securing the loan until such letter is provided. (4) Applicability This subsection shall apply to all loans outstanding on or after September 23, 1994. (f) Civil monetary penalties for failure to require flood insurance or notify (1) Civil monetary penalties against regulated lenders Any regulated lending institution that is found to have a pattern or practice of committing violations under paragraph (2) shall be assessed a civil penalty by the appropriate Federal entity for lending regulation in the amount provided under paragraph (5). (2) Lender violations The violations referred to in paragraph (1) shall include - (A) making, increasing, extending, or renewing loans in violation of - (i) the regulations issued pursuant to subsection (b) of this section; (ii) the escrow requirements under subsection (d) of this section; or (iii) the notice requirements under section 1364 of the National Flood Insurance Act of 1968 [42 U.S.C. 4104a]; or (B) failure to provide notice or purchase flood insurance coverage in violation of subsection (e) of this section. (3) Civil monetary penalties against GSE's (A) In general If the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation is found by the Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development to have a pattern or practice of purchasing loans in violation of the procedures established pursuant to subsection (b)(3) of this section, the Director of such Office shall assess a civil penalty against such enterprise in the amount provided under paragraph (5) of this subsection. (B) "Enterprise" defined For purposes of this subsection, the term "enterprise" means the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. (4) Notice and hearing A penalty under this subsection may be issued only after notice and an opportunity for a hearing on the record. (5) Amount A civil monetary penalty under this subsection may not exceed $350 for each violation under paragraph (2) or paragraph (3). The total amount of penalties assessed under this subsection against any single regulated lending institution or enterprise during any calendar year may not exceed $100,000. (6) Lender compliance Notwithstanding any State or local law, for purposes of this subsection, any regulated lending institution that purchases flood insurance or renews a contract for flood insurance on behalf of or as an agent of a borrower of a loan for which flood insurance is required shall be considered to have complied with the regulations issued under subsection (b) of this section. (7) Effect of transfer on liability Any sale or other transfer of a loan by a regulated lending institution that has committed a violation under paragraph (1), that occurs subsequent to the violation, shall not affect the liability of the transferring lender with respect to any penalty under this subsection. A lender shall not be liable for any violations relating to a loan committed by another regulated lending institution that previously held the loan. (8) Deposit of penalties Any penalties collected under this subsection shall be paid into the National Flood Mitigation Fund under section 1367 of the National Flood Insurance Act of 1968 [42 U.S.C. 4104d]. (9) Additional penalties Any penalty under this subsection shall be in addition to any civil remedy or criminal penalty otherwise available. (10) Statute of limitations No penalty may be imposed under this subsection after the expiration of the 4-year period beginning on the date of the occurrence of the violation for which the penalty is authorized under this subsection. (g) Other actions to remedy pattern of noncompliance (1) Authority of Federal entities for lending regulation A Federal entity for lending regulation may require a regulated lending institution to take such remedial actions as are necessary to ensure that the regulated lending institution complies with the requirements of the national flood insurance program if the Federal agency for lending regulation makes a determination under paragraph (2) regarding the regulated lending institution. (2) Determination of violations A determination under this paragraph shall be a finding that - (A) the regulated lending institution has engaged in a pattern and practice of noncompliance in violation of the regulations issued pursuant to subsection (b), (d), or (e) of this section or the notice requirements under section 1364 of the National Flood Insurance Act of 1968 [42 U.S.C. 4104a]; and (B) the regulated lending institution has not demonstrated measurable improvement in compliance despite the assessment of civil monetary penalties under subsection (f) of this section. (h) Fee for determining location Notwithstanding any other Federal or State law, any person who makes a loan secured by improved real estate or a mobile home or any servicer for such a loan may charge a reasonable fee for the costs of determining whether the building or mobile home securing the loan is located in an area having special flood hazards, but only in accordance with the following requirements: (1) Borrower fee The borrower under such a loan may be charged the fee, but only if the determination - (A) is made pursuant to the making, increasing, extending, or renewing of the loan that is initiated by the borrower; (B) is made pursuant to a revision or updating under section 1360(f) (!2) [42 U.S.C. 4101(f)] of the floodplain areas and flood-risk zones or publication of a notice or compendia under subsection (h) or (i) of section 1360 (!2) [42 U.S.C. 4101(h), (i)] that affects the area in which the improved real estate or mobile home securing the loan is located or that, in the determination of the Director, may reasonably be considered to require a determination under this subsection; or (C) results in the purchase of flood insurance coverage pursuant to the requirement under subsection (e)(2) of this section. (2) Purchaser or transferee fee The purchaser or transferee of such a loan may be charged the fee in the case of sale or transfer of the loan. -SOURCE- (Pub. L. 93-234, title I, Sec. 102, Dec. 31, 1973, 87 Stat. 978; Pub. L. 98-181, title IV, Sec. 451(e)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103-325, title V, Secs. 522-526, 531, 582(c), Sept. 23, 1994, 108 Stat. 2257-2262, 2267, 2287.) -REFTEXT- REFERENCES IN TEXT The National Flood Insurance Act of 1968, referred to in subsecs. (a), (b), (d)(1), and (e)(1), and the Act, referred to in subsec. (b), is title XIII of Pub. L. 90-448, Aug. 1, 1968, 82 Stat. 572, as amended, which is classified principally to this chapter (Sec. 4001 et seq.). For complete classification of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables. The Federal Financial Institutions Examination Council Act of 1974, referred to in subsec. (b)(1), probably means the Federal Financial Institutions Examination Council Act of 1978, Pub. L. 95- 630, title X, Nov. 10, 1978, 92 Stat. 3694, as amended, which is classified principally to chapter 34 (Sec. 3301 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note set out under section 3301 of Title 12 and Tables. Section 522(a) of Public Law 103-325, referred to in subsec. (b)(4)(C), was in original "section 522(a) of such Act", which generally amended subsec. (b) of this section. This title, referred to in subsec. (e)(3)(B), (C), means title I of Pub. L. 93-234, Dec. 31, 1973, 87 Stat. 977, which enacted this section and section 4104 of this title and amended sections 4001, 4013 to 4016, 4026, 4054, 4056, and 4121 of this title. -COD- CODIFICATION Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968 which comprises this chapter. -MISC1- AMENDMENTS 1994 - Pub. L. 103-325, Sec. 531, substituted section catchline for former section catchline. Subsec. (a). Pub. L. 103-325, Sec. 582(c), struck out ", during the anticipated economic or useful life of the project," before "covered by flood insurance" and inserted at end "The requirement of maintaining flood insurance shall apply during the life of the property, regardless of transfer of ownership of such property." Subsec. (b). Pub. L. 103-325, Sec. 522(a), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: "Each Federal instrumentality responsible for the supervision, approval, regulation, or insuring of banks, savings and loan associations, or similar institutions shall by regulation direct such institutions not to make, increase, extend, or renew after the expiration of sixty days following December 31, 1973, any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Director as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968, unless the building or mobile home and any personal property securing such loan is covered for the term of the loan by flood insurance in an amount at least equal to the outstanding principal balance of the loan or to the maximum limit of coverage made available with respect to the particular type of property under the Act, whichever is less." Subsec. (c). Pub. L. 103-325, Sec. 522(b), inserted heading, designated existing provisions as par. (1), inserted par. (1) heading, and added par. (2). Subsecs. (d) to (h). Pub. L. 103-325, Secs. 523-526, added subsecs. (d) to (h). 1983 - Pub. L. 98-181 substituted "Director" for "Secretary" wherever appearing. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by section 582(c) of Pub. L. 103-325 applicable to disasters declared after Sept. 23, 1994, see section 5154a(e) of this title. -TRANS- TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 313(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. -FOOTNOTE- (!1) See References in Text note below. (!2) So in original. Probably should be followed by "of the National Flood Insurance Act of 1968". -End- -CITE- 42 USC Sec. 4013 01/02/2006 -EXPCITE- TITLE 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 50 - NATIONAL FLOOD INSURANCE SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM -HEAD- Sec. 4013. Nature and limitation of insurance coverage -STATUTE- (a) Regulations respecting general terms and conditions of insurability The Director shall from time to time, after consultation with the advisory committee authorized under section 4025 of this title, appropriate representatives of the pool formed or otherwise created under section 4051 of this title, and appropriate representatives of the insurance authorities of the respective States, provide by regulation for general terms and conditions of insurability which shall be applicable to properties eligible for flood insurance coverage under section 4012 of this title, including - (1) the types, classes, and locations of any such properties which shall be eligible for flood insurance; (2) the nature and limits of loss or damage in any areas (or subdivisions thereof) which may be covered by such insurance; (3) the classification, limitation, and rejection of any risks which may be advisable; (4) appropriate minimum premiums; (5) appropriate loss-deductibles; and (6) any other terms and conditions relating to insurance coverage or exclusion which may be necessary to carry out the purposes of this chapter. (b) Regulations respecting amount of coverage In addition to any other terms and conditions under subsection (a) of this section, such regulations shall provide that - (1) any flood insurance coverage based on chargeable premium rates under section 4015 of this title which are less than the estimated premium rates under section 4014(a)(1) of this title shall not exceed - (A) in the case of residential properties - (i) $35,000 aggregate liability for any single-family dwelling, and $100,000 for any residential structure containing more than one dwelling unit, (ii) $10,000 aggregate liability per dwelling unit for any contents related to such unit, and (iii) in the States of Alaska and Hawaii, and in the Virgin Islands and Guam; the limits provided in clause (i) of this sentence shall be: $50,000 aggregate liability for any single- family dwelling, and $150,000 for any residential structure containing more than one dwelling unit; (B) in the case of business properties which are owned or leased and operated by small business concerns, an aggregate liability with respect to any single structure, including any contents thereof related to premises of small business occupants (as that term is defined by the Director), which shall be equal to (i) $100,000 plus (ii) $100,000 multiplied by the number of such occupants and shall be allocated among such occupants (or among the occupant or occupants and the owner) under regulations prescribed by the Director; except that the aggregate liability for the structure itself may in no case exceed $100,000; and (C) in the case of church properties and any other properties which may become eligible for flood insurance under section 4012 of this title - (i) $100,000 aggregate liability for any single structure, and (ii) $100,000 aggregate liability per unit for any contents related to such unit; and (2) in the case of any residential property for which the risk premium rate is determined in accordance with the provisions of section 4014(a)(1) of this title, additional flood insurance in excess of the limits specified in clause (i) of subparagraph (A) of paragraph (1) shall be made available to every insured upon renewal and every applicant for insurance so as to enable such insured or applicant to receive coverage up to a total amount (including such limits specified in paragraph (1)(A)(i)) of $250,000; (3) in the case of any residential property for which the risk premium rate is determined in accordance with the provisions of section 4014(a)(1) of this title, additional flood insurance in excess of the limits specified in clause (ii) of subparagraph (A) of paragraph (1) shall be made available to every insured upon renewal and every applicant for insurance so as to enable any such insured or applicant to receive coverage up to a total amount (including such limits specified in paragraph (1)(A)(ii)) of $100,000; (4) in the case of any nonresidential property, including churches, for which the risk premium rate is determined in accordance with the provisions of section 4014(a)(1) of this title, additional flood insurance in excess of the limits specified in subparagraphs (B) and (C) of paragraph (1) shall be made available to every insured upon renewal and every applicant for insurance, in respect to any single structure, up to a total amount (including such limit specified in subparagraph (B) or (C) of paragraph (1), as applicable) of $500,000 for each structure and $500,000 for any contents related to each structure; and (5) any flood insurance coverage which may be made available in excess of the limits specified in subparagraph (A), (B), or (C) of paragraph (1), shall be based only on chargeable premium rates under section 4015 of this title, which are not less than the estimated premium rates under section 4014(a)(1) of this title, and the amount of such excess coverage shall not in any case exceed an amount equal to the applicable limit so specified (or allocated) under paragraph (1)(C), (2), (3), or (4), as applicable. (c) Effective date of policies (1) Waiting period Except as provided in paragraph (2), coverage under a new contract for flood insurance coverage under this chapter entered into after September 23, 1994, and any modification to coverage under an existing flood insurance contract made after September 23, 1994, shall become effective upon the expiration of the 30- day period beginning on the date that all obligations for such coverage (including completion of the application and payment of any initial premiums owed) are satisfactorily completed. (2) Exception The provisions of paragraph (1) shall not apply to - (A) the initial purchase of flood insurance coverage under this chapter when the purchase of insurance is in connection with the making, increasing, extension, or renewal of a loan; or (B) the initial purchase of flood insurance coverage pursuant to a revision or updating of floodplain areas or flood-risk zones under section 4101(f) of this title, if such purchase occurs during the 1-year period beginning upon publication of notice of the revision or updating under section 4101(h) of this title. -SOURCE- (Pub. L. 90-448, title XIII, Sec. 1306, Aug. 1, 1968, 82 Stat. 575; Pub. L. 92-213, Sec. 2(c)(2), Dec. 22, 1971, 85 Stat. 775; Pub. L. 93-234, title I, Sec. 101, Dec. 31, 1973, 87 Stat. 977; Pub. L. 95- 128, title VII, Sec. 704(a), Oct. 12, 1977, 91 Stat. 1145; Pub. L. 98-181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L. 100-242, title V, Sec. 544(a), Feb. 5, 1988, 101 Stat. 1940; Pub. L. 100-628, title X, Sec. 1086(a), Nov. 7, 1988, 102 Stat. 3278; Pub. L. 100-707, title I, Sec. 109(o), Nov. 23, 1988, 102 Stat. 4709; Pub. L. 101-137, Sec. 1(c), Nov. 3, 1989, 103 Stat. 824; Pub. L. 101-508, title II, Sec. 2302(d), Nov. 5, 1990, 104 Stat. 1388-23; Pub. L. 103-325, title V, Secs. 552(a), 573, 579(a), Sept. 23, 1994, 108 Stat. 2269, 2278, 2284.) -MISC1- AMENDMENTS 1994 - Subsec. (b)(2). Pub. L. 103-325, Sec. 573(a)(1), substituted "a total amount (including such limits specified in paragraph (1)(A)(i)) of $250,000" for "an amount of $150,000 under the provisions of this clause". Subsec. (b)(3). Pub. L. 103-325, Sec. 573(a)(2), substituted "a total amount (including such limits specified in paragraph (1)(A)(ii)) of $100,000" for "an amount of $50,000 under the provisions of this clause". Subsec. (b)(4). Pub. L. 103-325, Sec. 573(a)(3), added par. (4) and struck out former par. (4) which read as follows: "in the case of business property owned, leased, or operated by small business concerns for which the risk premium rate is determined in accordance with the provisions of section 4014(a)(1) of this title, additional flood insurance in excess of the limits specified in subparagraph (B) of paragraph (1) shall be made available to every such owner, lessee, or operator in respect to any single structure, including any contents thereof, related to premises of small business occupants (as that term is defined by the Director), up to an amount equal to (i) $250,000 plus (ii) $200,000 multiplied by the number of such occupants which coverage shall be allocated among such occupants (or among the occupant or occupants and the owner) in accordance with the regulations prescribed by the Director pursuant to such subparagraph (B), except that the aggregate liability for the structure itself may in no case exceed $250,000;". Subsec. (b)(5). Pub. L. 103-325, Sec. 573(b)(1), substituted a period for "; and" at end. Subsec. (b)(6). Pub. L. 103-325, Sec. 573(b)(2), struck out par. (6) which read as follows: "the flood insurance purchase requirements of section 4012a of this title do not apply to the additional flood insurance limits made available in excess of twice the limits made available under paragraph (1)." Subsec. (c). Pub. L. 103-325, Sec. 579(a), added subsec. (c). Pub. L. 103-325, Sec. 552(a), struck out subsec. (c) which related to schedule for payment of flood insurance for structures on land subject to imminent collapse or subsidence. 1990 - Subsec. (c)(7). Pub. L. 101-508 substituted "September 30, 1995" for "September 30, 1991". 1989 - Subsec. (c)(7). Pub. L. 101-137 substituted "September 30, 1991" for "September 30, 1989". 1988 - Subsec. (c). Pub. L. 100-242 added subsec. (c). Subsec. (c)(1)(A). Pub. L. 100-628 substituted "following" for "Following" in cls. (i) and (ii). Subsec. (c)(5). Pub. L. 100-707 substituted "Disaster Relief and Emergency Assistance Act" for "Disaster Relief Act of 1974". 1983 - Subsecs. (a), (b)(1)(B), (4). Pub. L. 98-181 substituted "Director" for "Secretary" wherever appearing. 1977 - Subsec. (b)(2). Pub. L. 95-128 added par. (2) and redesignated former par. (2) as (5). Subsec. (b)(3), (4). Pub. L. 95-128 added pars. (3) and (4). Subsec. (b)(5). Pub. L. 95-128 redesignated former par. (2) as (5), struck out "(or allocated to any person under subparagraph (B) of such paragraph)" after "paragraph (1)", and inserted "under paragraph (1)(C), (2), (3), or (4), as applicable" after "(or allocated)". Subsec. (b)(6). Pub. L. 95-128 added par. (6). 1973 - Subsec. (b)(1)(A). Pub. L. 93-234, Sec. 101(a), in increasing limits of coverage, struck out following introductory text "residential properties" the clause "which are designed for the occupancy of from one to four families"; substituted provisions in cl. (i) "$35,000 aggregate liability for any single-family dwelling, and $100,000 for any residential structure containing more than one dwelling unit" for "$17,500 aggregate liability for any dwelling unit, and $30,000 for any single dwelling structure containing more than one dwelling unit"; increased cl. (ii) limits to $10,000 from $5,000 and added cl. (iii). Subsec. (b)(1)(B). Pub. L. 93-234, Sec. 101(b), substituted "$100,000" for "$30,000" in cl. (i), for "$5,000" in cl. (ii), and for "$30,000" in exception provision. Subsec. (b)(1)(C). Pub. L. 93-234, Sec. 101(c), increased cl. (i) limits to $100,000 from $30,000 and substituted cl. (ii) "$100,000 aggregate liability per unit for any contents related to such unit" for "$5,000 aggregate liability per dwelling unit for any contents related to such unit in the case of residential properties, or per occupant (as that term is defined by the Secretary) for any contents related to the premises occupied in the case of any other properties". 1971 - Subsec. (b)(1)(C). Pub. L. 92-213 inserted "church properties, and" before "any other properties which may become". EFFECTIVE DATE OF 1988 AMENDMENT Section 544(b) of Pub. L. 100-242 provided that: "The amendment made by this section [amending this section] shall become effective on the date of the enactment of this Act [Feb. 5, 1988]." SAVINGS PROVISION Section 552(c) of Pub. L. 103-325 provided that: "Notwithstanding subsection (a) [amending this section], the Director shall take any action necessary to make payments under flood insurance contracts pursuant to any commitments made before the expiration of the period referred to in subsection (b) [set out below] pursuant to the authority under section 1306(c) of the National Flood Insurance Act of 1968 [subsec. (c) of this section] or subsection (b)." -TRANS- TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see sections 313(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. -MISC2- TRANSITION PHASE Section 552(b) of Pub. L. 103-325 provided that: "Notwithstanding subsection (a) [amending this section], during the 1-year period beginning on the date of enactment of this Act [Sept. 23, 1994], the Director of the Federal Emergency Management Agency may pay amounts under flood insurance contracts for demolition or relocation of structures as provided in section 1306(c) of the National Flood Insurance Act of 1968 [subsec. (c) of this section] (as in effect immediately before the enactment of this Act)." -End- -CITE- 42 USC Sec. 4014 01/02/2006 -EXPCITE- TITLE 42 - THE PUBLIC HEALTH AND WELFARE CHAPTER 50 - NATIONAL FLOOD INSURANCE SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM -HEAD- Sec. 4014. Estimates of premium rates -STATUTE- (a) Studies and investigations The Director is authorized to undertake and carry out such studies and investigations and receive or exchange such information as may be necessary to estimate, and shall from time to time estimate, on an area, subdivision, or other appropriate basis - (1) the risk premium rates for flood insurance which - (A) based on consideration of the risk involved and accepted actuarial principles, and (B) including - (i) the applicable operating costs and allowances set forth in the schedules prescribed under section 4018 of this title and reflected in such rates, (ii) any administrative expenses (or portion of such expenses) of carrying out the flood insurance program which, in his discretion, should properly be reflected in such rates, and (iii) any remaining administrative expenses incurred in carrying out the flood insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title) not included under clause (ii), which shall be recovered by a fee charged to policyholders and such fee shall not be subject to any agents' commissions, company expense allowances, or State or local premium taxes, would be required in order to make such insurance available on an actuarial basis for any types and classes of properties for which insurance coverage is available under section 4012(a) of this title (or is recommended to the Congress under section 4012(b) of this title); (2) the rates, if less than the rates estimated under paragraph (1), which would be reasonable, would encourage prospective insureds to purchase flood insurance, and would be consistent with the purposes of this chapter, and which, together with a fee charged to policyholders that shall not be not subject to any agents' commission, company expenses allowances, or State or local premium taxes, shall include any administrative expenses incurred in carrying out the flood insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title); and (3) the extent, if any, to which federally assisted or other flood protection measures initiated after August 1, 1968, affect such rates. (b) Utilization of services of other Departments and agencies In carrying out subsection (a) of this section, the Director shall, to the maximum extent feasible and on a reimbursement basis, utilize the services of the Department of the Army, the Department of the Interior, the Department of Agriculture, the Department of Commerce, and the Tennessee Valley Authority, and, as appropriate, other Federal departments or agencies, and for such purposes may enter into agreements or other appropriate arrangements with any persons. (c) Priority to studies and investigations in States or areas evidencing positive interest in securing insurance under program The Director shall give priority to conducting studies and investigations and making estimates under this section in those States or areas (or subdivisions thereof) which he has determined have evidenced a positive interest in securing flood insurance coverage under the flood insurance program. (d) Parishes of Louisiana; premium rates Notwithstanding any other provision of law, any structure existing on December 31, 1973, and located within Avoyelles, Evangeline, Rapides, or Saint Landry Parish in the State of Louisiana, which the Secretary determines is subject to additional flood hazards as a result of the construction or operation of the Atchafalaya Basin Levee System, shall be eligible for flood insurance under this chapter (if and to the extent it is eligible for such insurance under the other provisions of this chapter) at premium rates that shall not exceed those which would be applicable if such additional hazards did not exist. (e) Eligibility of community making adequate progress on construction of flood protection system for rates not exceeding those applicable to completed flood protection system; determination of adequate progress Notwithstanding any other provision of law, any community that has made adequate progress, acceptable to the Director, on the construction of a flood protection system which will afford flood protection for the one-hundred year frequency flood as determined by the Director, shall be eligible for flood insurance under this chapter (if and to the extent it is eligible for such insurance under the other provisions of this chapter) at premium rates not exceeding those which would be applicable under this section if such flood protection system had been completed. The Director shall find that adequate progress on the construction of a flood protection system as required herein has been only if (1) 100 percent of the project cost of the system has been authorized, (2) at least 60 percent of the project cost of the system has been appropriated, (3) at least 50 percent of the project cost of the system has been expended, and (4) the system is at least 50 percent completed.