CHAPTER 50 —NATIONAL FLOOD INSURANCE
SUBCHAPTER I—THE NATIONAL FLOOD INSURANCE PROGRAM
SUBCHAPTER II—ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE PROGRAM
Part A—Industry Program With Federal Financial Assistance
Part B—Government Program With Industry Assistance
Part C—General Provisions
SUBCHAPTER III—COORDINATION OF FLOOD INSURANCE WITH LAND-MANAGEMENT PROGRAMS IN FLOOD-PRONE AREAS
SUBCHAPTER IV—GENERAL PROVISIONS
§4001. Congressional findings and declaration of purpose
(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.
(
Editorial Notes
References in Text
For effective date of this chapter, referred to in subsec. (c), see section 1377 of
This chapter, referred to in subsecs. (d) to (f), was in the original a reference to "this title" meaning title XIII of
Amendments
1994—Subsec. (g).
1973—Subsec. (g).
1969—Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date
Short Title of 2019 Amendment
Short Title of 2018 Amendment
Short Title of 2014 Amendment
Short Title of 2012 Amendment
Short Title of 2010 Amendment
Short Title of 2006 Amendment
Short Title of 2005 Amendments
Short Title of 2004 Amendment
Short Title of 2003 Amendments
Short Title of 1994 Amendment
Short Title of 1973 Amendment
Short Title
Regulations
[For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
[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 former section 313(1) and
Evaluation of Erosion Hazards
Relation of Title V of Pub. L. 103–325 to State and Local Laws
Executive Documents
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
§4002. Additional Congressional findings and declaration of purpose
(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.
(
Editorial Notes
References in Text
This Act, referred to in subsec. (b), means
Codification
Section was enacted as part of the Flood Disaster Protection Act of 1973, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
§4003. Definitions applicable to Flood Disaster Protection Act of 1973
(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 [
(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 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) "Administrator" means the Administrator 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 Administrator 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.
(
Editorial Notes
References in Text
This Act, referred to in text, means
The Disaster Relief and Emergency Assistance Act, referred to in subsec. (a)(4), is
Codification
Section was enacted as part of the Flood Disaster Protection Act of 1973, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Amendments
2012—Subsec. (a)(6).
Subsec. (b).
2010—Subsec. (a)(5).
1994—Subsec. (a)(5).
Subsec. (a)(7) to (11).
1988—Subsec. (a)(4).
1983—Subsec. (a)(6).
Subsec. (b).
1977—Subsec. (a)(4).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Amendment by
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4004. Definitions applicable to Biggert-Waters Flood Insurance Reform Act of 2012
(a) In general
In this subtitle, the following definitions shall apply:
(1) 100-year floodplain
The term "100-year floodplain" means that area which is subject to inundation from a flood having a 1-percent chance of being equaled or exceeded in any given year.
(2) 500-year floodplain
The term "500-year floodplain" means that area which is subject to inundation from a flood having a 0.2-percent chance of being equaled or exceeded in any given year.
(3) Administrator
The term "Administrator" means the Administrator of the Federal Emergency Management Agency.
(4) National Flood Insurance Program
The term "National Flood Insurance Program" means the program established under the National Flood Insurance Act of 1968 (
(5) Write Your Own
The term "Write Your Own" means the cooperative undertaking between the insurance industry and the Federal Insurance Administration which allows participating property and casualty insurance companies to write and service standard flood insurance policies.
(b) Common terminology
Except as otherwise provided in this subtitle, any terms used in this subtitle shall have the meaning given to such terms under section 1370 of the National Flood Insurance Act of 1968 (
(
Editorial Notes
References in Text
This subtitle, referred to in subsecs. (a) and (b), is subtitle A (§§100201–100249) of title II of div. F of
The National Flood Insurance Act of 1968, referred to in subsec. (a)(4), is title XIII of
Codification
Section was enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012, and also as part of the Moving Ahead for Progress in the 21st Century Act, also known as the MAP–21, and not as part of National Flood Insurance Act of 1968 which comprises this chapter.
§4005. Definitions applicable to Homeowner Flood Insurance Affordability Act of 2014
For purposes of this title,1 the following definitions shall apply:
(1) Administrator
The term "Administrator" means the Administrator of the Federal Emergency Management Agency.
(2) National Flood Insurance Program
The term "National Flood Insurance Program" means the program established under the National Flood Insurance Act of 1968 (
(
Editorial Notes
References in Text
This title, referred to in text, probably should read "this Act", meaning
The National Flood Insurance Act of 1968, referred to in par. (2), is title XIII of
Codification
Section was enacted as part of the Homeowner Flood Insurance Affordability Act of 2014, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
1 See References in Text note below.
SUBCHAPTER I—THE NATIONAL FLOOD INSURANCE PROGRAM
§4011. Authorization to establish and carry out program
(a) Authorization and establishment
To carry out the purposes of this chapter, the Administrator 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) 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
(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 Administrator 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)
(B) the Hazard Mitigation Grant Program authorized under
(C) the Predisaster Hazard Mitigation Program under
(D) any programs authorized or for which funds are appropriated to address any unmet needs or for which supplemental funds are made available.
The Administrator 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 Administrator 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.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—Subsec. (a).
Subsec. (b).
Subsec. (b)(3).
Subsec. (b)(4)(B) to (E).
Subsec. (c).
2004—Subsec. (b).
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(4).
1994—Subsecs. (b), (c).
1983—Subsec. (a).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1994 Amendment
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Flood in Progress Determinations
"(a)
"(1)
"(A) the processes and procedures for determining that a flood event has commenced or is in progress for purposes of flood insurance coverage made available under the National Flood Insurance Program;
"(B) the processes and procedures for providing public notification that such a flood event has commenced or is in progress;
"(C) the processes and procedures regarding the timing of public notification of flood insurance requirements and availability; and
"(D) the effects and implications that weather conditions, including rainfall, snowfall, projected snowmelt, existing water levels, and other conditions, have on the determination that a flood event has commenced or is in progress.
"(2)
"(A) the results and conclusions of the review under paragraph (1); and
"(B) any actions taken, or proposed actions to be taken, by the Administrator to provide for more precise and technical processes and procedures for determining that a flood event has commenced or is in progress.
"(b)
"(1)
"(2)
"(A) be deemed to take effect on the date that is 30 days after the date on which all obligations for the eligible coverage (including completion of the application and payment of any initial premiums owed) are satisfactorily completed; and
"(B) cover damage to property occurring after the effective date described in subparagraph (A) that resulted from the flooding of the Missouri River that commenced on June 1, 2011, if the property did not suffer damage or loss as a result of such flooding before the effective date described in subparagraph (A).
"(c)
[For definitions of terms used in section 100227 of
Congressional Findings
"(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
"SEC. 201. DEFINITIONS.
"In this title, the following definitions shall apply:
"(1)
"(2)
"(3)
"SEC. 202. SUPPLEMENTAL FORMS.
"(a)
"(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 (
"(5) any other information that the Director determines will be helpful to policyholders in understanding flood insurance coverage.
"(b)
"(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)
"(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)
"SEC. 204. FLOOD INSURANCE CLAIMS HANDBOOK.
"(a)
"(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)
"(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 Administrator 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 (
"(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 Administrator 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)
"(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)
"SEC. 209. PROSPECTIVE PAYMENT OF FLOOD INSURANCE PREMIUMS.
[Amended
"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
"(a)
"(b)
"(1)
"(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)
"(c)
"(1)
"(2)
"(3)
"(4)
"(5)
"(A) the reasonableness of fees charged pursuant to 102(h) of the Flood Disaster Protection Act of 1973 [
"(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)
"(e)
"(f)
"(g)
"(h)
"(i)
"(j)
§4012. Scope of program and priorities
(a) Priority for insurance for certain residential and church properties and business concerns
In carrying out the flood insurance program the Administrator 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
(2) such other information as may be necessary,
the Administrator 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 not described in subsection (a) or (d),
(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 Administrator 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
(d) Availability of insurance for multifamily properties
(1) In general
The Administrator shall make flood insurance available to cover residential properties of 5 or more residences. Notwithstanding any other provision of law, the maximum coverage amount that the Administrator may make available under this subsection to such residential properties shall be equal to the coverage amount made available to commercial properties.
(2) Rule of construction
Nothing in this subsection shall be construed to limit the ability of individuals residing in residential properties of 5 or more residences to obtain insurance for the contents and personal articles located in such residences.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (b), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—Subsec. (a).
Subsec. (b).
Subsec. (b)(A).
Subsec. (c).
Subsec. (d).
1983—
1971—Subsec. (a).
1969—Subsec. (c)(2).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4012a. Flood insurance purchase and compliance requirements and escrow accounts
(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 Administrator 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 [
(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 [
(A) 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 Administrator as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968 [
(B) to accept private flood insurance as satisfaction of the flood insurance coverage requirement under subparagraph (A) if the coverage provided by such private flood insurance meets the requirements for coverage under such subparagraph.
(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 Administrator 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)(A). Each Federal agency lender shall accept private flood insurance as satisfaction of the flood insurance coverage requirement under the preceding sentence if the flood insurance coverage provided by such private flood insurance meets the requirements for coverage under such sentence. 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)(A).
(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 Administrator 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)(A). The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall accept private flood insurance as satisfaction of the flood insurance coverage requirement under paragraph (1)(A) if the flood insurance coverage provided by such private flood insurance meets the requirements for coverage under such paragraph and any requirements established by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, respectively, relating to the financial solvency, strength, or claims-paying ability of private insurance companies from which the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation will accept private flood insurance.
(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
(5) Rule of construction
Nothing in this subsection shall be construed to supersede or limit the authority of a Federal entity for lending regulation, the Federal Housing Finance Agency, a Federal agency lender, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation to establish requirements relating to the financial solvency, strength, or claims-paying ability of private insurance companies from which the entity or agency will accept private flood insurance.
(6) Notice
(A) In general
Each lender shall disclose to a borrower that is subject to this subsection that—
(i) flood insurance is available from private insurance companies that issue standard flood insurance policies on behalf of the national flood insurance program or directly from the national flood insurance program;
(ii) flood insurance that provides the same level of coverage as a standard flood insurance policy under the national flood insurance program may be available from a private insurance company that issues policies on behalf of the company; and
(iii) the borrower is encouraged to compare the flood insurance coverage, deductibles, exclusions, conditions and premiums associated with flood insurance policies issued on behalf of the national flood insurance program and policies issued on behalf of private insurance companies and to direct inquiries regarding the availability, cost, and comparisons of flood insurance coverage to an insurance agent.
(B) Rule of construction
Nothing in this paragraph shall be construed as affecting or otherwise limiting the authority of a Federal entity for lending regulation to approve any disclosure made by a regulated lending institution for purposes of complying with subparagraph (A).
(7) Private flood insurance defined
In this subsection, the term "private flood insurance" means an insurance policy that—
(A) is issued by an insurance company that is—
(i) licensed, admitted, or otherwise approved to engage in the business of insurance in the State or jurisdiction in which the insured building is located, by the insurance regulator of that State or jurisdiction; or
(ii) in the case of a policy of difference in conditions, multiple peril, all risk, or other blanket coverage insuring nonresidential commercial property, is 1 recognized, or not disapproved, as a surplus lines insurer by the insurance regulator of the State or jurisdiction where the property to be insured is located;
(B) provides flood insurance coverage which is at least as broad as the coverage provided under a standard flood insurance policy under the national flood insurance program, including when considering deductibles, exclusions, and conditions offered by the insurer;
(C) includes—
(i) a requirement for the insurer to give 45 days' written notice of cancellation or non-renewal of flood insurance coverage to—
(I) the insured; and
(II) the regulated lending institution or Federal agency lender;
(ii) information about the availability of flood insurance coverage under the national flood insurance program;
(iii) a mortgage interest clause similar to the clause contained in a standard flood insurance policy under the national flood insurance program; and
(iv) a provision requiring an insured to file suit not later than 1 year after date of a written denial of all or part of a claim under the policy; and
(D) contains cancellation provisions that are as restrictive as the provisions contained in a standard flood insurance policy under the national flood insurance program.
(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 Administrator. The Administrator 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) 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.
(3) Detached structures
Notwithstanding any other provision of this section, flood insurance shall not be required, in the case of any residential property, for any structure that is a part of such property but is detached from the primary residential structure of such property and does not serve as a residence.
(d) Escrow of flood insurance payments
(1) Regulated lending institutions
(A) Federal entities responsible for lending regulations
Each Federal entity for lending regulation (after consultation and coordination with the Federal Financial Institutions Examination Council) shall, by regulation, direct that all premiums and fees for flood insurance under the National Flood Insurance Act of 1968, for residential improved real estate or a mobile home, shall be paid to the regulated lending institution or servicer for any loan secured by the residential improved real estate or mobile home, with the same frequency as payments on the loan are made, for the duration of the loan. Except as provided in subparagraph (B), upon receipt of any premiums or fees, the regulated lending institution or servicer shall deposit such premiums and fees in an escrow account on behalf of the borrower. Upon receipt of a notice from the Administrator or the provider of the flood insurance that insurance premiums are due, the premiums deposited in the escrow account shall be paid to the provider of the flood insurance.
(B) Limitation
Except as may be required under applicable State law, a Federal entity for lending regulation may not direct or require a regulated lending institution to deposit premiums or fees for flood insurance under the National Flood Insurance Act of 1968 in an escrow account on behalf of a borrower under subparagraph (A)—
(i) if—
(I) the regulated lending institution has total assets of less than $1,000,000,000; and
(II) on or before July 6, 2012, the regulated lending institution—
(aa) in the case of a loan secured by residential improved real estate or a mobile home, was not required under Federal or State law to deposit taxes, insurance premiums, fees, or any other charges in an escrow account for the entire term of the loan; and
(bb) did not have a policy of consistently and uniformly requiring the deposit of taxes, insurance premiums, fees, or any other charges in an escrow account for loans secured by residential improved real estate or a mobile home; or
(ii) in the case of a loan that—
(I) is in a junior or subordinate position to a senior lien secured by the same residential improved real estate or mobile home for which flood insurance is being provided at the time of the origination of the loan;
(II) is secured by residential improved real estate or a mobile home that is part of a condominium, cooperative, or other project development, if the residential improved real estate or mobile home is covered by a flood insurance policy that—
(aa) meets the requirements that the regulated lending institution is required to enforce under subsection (b)(1);
(bb) is provided by the condominium association, cooperative, homeowners association, or other applicable group; and
(cc) the premium for which is paid by the condominium association, cooperative, homeowners association, or other applicable group as a common expense;
(III) is secured by residential improved real estate or a mobile home that is used as collateral for a business purpose;
(IV) is a home equity line of credit;
(V) is a nonperforming loan; or
(VI) has a term of not longer than 12 months.
(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 [
(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 Administrator (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 [
(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, including premiums or fees incurred for coverage beginning on the date on which flood insurance coverage lapsed or did not provide a sufficient coverage amount.
(3) Termination of force-placed insurance
Within 30 days of receipt by the lender or servicer of a confirmation of a borrower's existing flood insurance coverage, the lender or servicer shall—
(A) terminate any insurance purchased by the lender or servicer under paragraph (2); and
(B) refund to the borrower all premiums paid by the borrower for any insurance purchased by the lender or servicer under paragraph (2) during any period during which the borrower's flood insurance coverage and the insurance coverage purchased by the lender or servicer were each in effect, and any related fees charged to the borrower with respect to the insurance purchased by the lender or servicer during such period.
(4) Sufficiency of demonstration
For purposes of confirming a borrower's existing flood insurance coverage, a lender or servicer for a loan shall accept from the borrower an insurance policy declarations page that includes the existing flood insurance policy number and the identity of, and contact information for, the insurance company or agent.
(5) 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 Administrator 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 Administrator receives the request, the Administrator 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 Administrator shall be final.
(B) Effect of determination
Any person to whom a borrower provides a letter issued by the Administrator 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 2 to require the purchase of flood insurance for such building or mobile home during the period determined by the Administrator, 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 Administrator 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 2 to require the purchase of flood insurance for the building or mobile home securing the loan until such letter is provided.
(6) 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 [
(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 Federal Housing Finance Agency to have a pattern or practice of purchasing loans in violation of the procedures established pursuant to subsection (b)(3), the Director of such Office 3 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 $2,000 for each violation under paragraph (2) or paragraph (3).
(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).
(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 [
(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) or the notice requirements under section 1364 of the National Flood Insurance Act of 1968 [
(B) the regulated lending institution has not demonstrated measurable improvement in compliance despite the assessment of civil monetary penalties under subsection (f).
(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) 4 [
(C) results in the purchase of flood insurance coverage pursuant to the requirement under subsection (e)(2).
(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.
(
Editorial Notes
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
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,
Section 522(a) of
This title, referred to in subsec. (e)(5)(B), (C), means title I of
Codification
Section was enacted as part of the Flood Disaster Protection Act of 1973, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Amendments
2014—Subsec. (c)(3).
Subsec. (d)(1)(A).
Subsec. (d)(1)(B).
2013—Subsec. (d)(1)(A).
2012—Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(3)(A).
Subsec. (b)(5) to (7).
Subsec. (c)(1).
Subsec. (d)(1).
Subsec. (e)(1).
Subsec. (e)(2).
Subsec. (e)(3).
Subsec. (e)(3).
Subsec. (e)(4) to (6).
Subsec. (f)(5).
Subsec. (h)(1)(B).
2008—Subsec. (f)(3)(A).
1994—
Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsecs. (d) to (h).
1983—
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
"(1)
"(A)
"(B)
"(i)
"(I) the terms 'Federal entity for lending regulation', 'improved real estate', 'regulated lending institution', and 'servicer' have the meanings given the terms in section 3 of the Flood Disaster Protection Act of 1973 (
"(II) the term 'outstanding loan' means a loan that—
"(aa) is outstanding as of January 1, 2016;
"(bb) is not subject to the requirement to escrow premiums and fees for flood insurance under section 102(d)(1) of the Flood Disaster Protection Act of 1973 (
"(cc) would, if the loan had been originated, refinanced, increased, extended, or renewed on or after January 1, 2016, be subject to the requirements under section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as amended; and
"(III) the term 'section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as amended' means section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973 (
"(aa) section 100209(a) of the Biggert-Waters Flood Insurance Reform Act of 2012 (
"(bb) subsection (a) of this section.
"(ii)
Effective Date of 2012 Amendment
Effective Date of 1994 Amendment
Amendment by section 582(c) of
Rule of Construction
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Treatment of Floodproofed Residential Basements
1 So in original. The word "is" probably should not appear.
2 See References in Text note below.
3 So in original. Probably should be "Agency".
4 So in original. Probably should be followed by "of the National Flood Insurance Act of 1968".
§4013. Nature and limitation of insurance coverage
(a) Regulations respecting general terms and conditions of insurability
The Administrator shall from time to time, after consultation with the advisory committee authorized under
(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), such regulations shall provide that—
(1) any flood insurance coverage based on chargeable premium rates under
(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 Administrator), 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 Administrator; 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
(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 building designed for the occupancy of from 1 to 4 families for which the risk premium rate is determined in accordance with the provisions of
(3) in the case of any residential property for which the risk premium rate is determined in accordance with the provisions of
(4) in the case of any nonresidential building, including a church, for which the risk premium rate is determined in accordance with the provisions of
(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
(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;
(B) the initial purchase of flood insurance coverage pursuant to a revision or updating of floodplain areas or flood-risk zones under
(C) the initial purchase of flood insurance coverage for private property if—
(i) the Administrator determines that the property is affected by flooding on Federal land that is a result of, or is exacerbated by, post-wildfire conditions, after consultation with an authorized employee of the Federal agency that has jurisdiction of the land on which the wildfire that caused the post-wildfire conditions occurred; and
(ii) the flood insurance coverage was purchased not later than 60 days after the fire containment date, as determined by the appropriate Federal employee, relating to the wildfire that caused the post-wildfire conditions described in clause (i).
(d) Optional high-deductible policies for residential properties
(1) Availability
In the case of residential properties, the Administrator shall make flood insurance coverage available, at the option of the insured, that provides for a loss-deductible for damage to the covered property in various amounts, up to and including $10,000.
(2) Disclosure
(A) Form
The Administrator shall provide the information described in subparagraph (B) clearly and conspicuously on the application form for flood insurance coverage or on a separate form, segregated from all unrelated information and other required disclosures.
(B) Information
The information described in this subparagraph is—
(i) information sufficient to inform the applicant of the availability of the coverage option required by paragraph (1) to applicants for flood insurance coverage; and
(ii) a statement explaining the effect of a loss-deductible and that, in the event of an insured loss, the insured is responsible out-of-pocket for losses to the extent of the deductible selected.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a)(6) and (c)(1), (2)(A), was in the original a reference to "this title" meaning title XIII of
Amendments
2014—Subsec. (d).
2012—Subsec. (a).
Subsec. (b)(1)(B).
Subsec. (b)(2).
Subsec. (b)(4).
Subsec. (c)(2)(C).
1994—Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(4).
Subsec. (b)(5).
Subsec. (b)(6).
Subsec. (c).
1990—Subsec. (c)(7).
1989—Subsec. (c)(7).
1988—Subsec. (c).
Subsec. (c)(1)(A).
Subsec. (c)(5).
1983—Subsecs. (a), (b)(1)(B), (4).
1977—Subsec. (b)(2).
Subsec. (b)(3), (4).
Subsec. (b)(5).
Subsec. (b)(6).
1973—Subsec. (b)(1)(A).
Subsec. (b)(1)(B).
Subsec. (b)(1)(C).
1971—Subsec. (b)(1)(C).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Savings Provision
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Transition Phase
§4013a. Policy disclosures
(a) In general
Notwithstanding any other provision of law, in addition to any other disclosures that may be required, each policy under the National Flood Insurance Program shall state all conditions, exclusions, and other limitations pertaining to coverage under the subject policy, regardless of the underlying insurance product, in plain English, in boldface type, and in a font size that is twice the size of the text of the body of the policy.
(b) Violations
The Administrator may impose a civil penalty of not more than $50,000 on any person that fails to comply with subsection (a).
(
Editorial Notes
Codification
Section was enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012, and also as part of the Moving Ahead for Progress in the 21st Century Act, also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Definitions
For definitions of terms used in this section, see
§4014. Estimates of premium rates
(a) Studies and investigations
The Administrator 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—
(i) the risk involved and accepted actuarial principles; and
(ii) the flood mitigation activities that an owner or lessee has undertaken on a property, including differences in the risk involved due to land use measures, floodproofing, flood forecasting, and similar measures, and
(B) including—
(i) the applicable operating costs and allowances set forth in the schedules prescribed under
(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,
(iii) any remaining administrative expenses incurred in carrying out the flood insurance and floodplain management programs (including the costs of mapping activities under
(iv) all costs, as prescribed by principles and standards of practice in ratemaking adopted by the American Academy of Actuaries and the Casualty Actuarial Society, including—
(I) an estimate of the expected value of future costs,
(II) all costs associated with the transfer of risk, and
(III) the costs associated with an individual risk transfer with respect to risk classes, as defined by the Administrator,
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
(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
(A) any residential property which is not the primary residence of an individual;
(B) any severe repetitive loss property;
(C) any property that has incurred flood-related damage in which the cumulative amounts of payments under this chapter equaled or exceeded the fair market value of such property;
(D) any business property; or
(E) any property which on or after July 6, 2012, has experienced or sustained—
(i) substantial damage exceeding 50 percent of the fair market value of such property; or
(ii) substantial improvement exceeding 50 percent of the fair market value of such property; 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), the Administrator 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 Administrator 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 Administrator, on the construction or reconstruction of a flood protection system which will afford flood protection for the one-hundred year frequency flood as determined by the Administrator, 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 Administrator shall find that adequate progress on the construction or reconstruction of a flood protection system, based on the present value of the completed flood protection system, has been made only if: (1) 100 percent of the cost of the system has been authorized; (2) at least 60 percent of the cost of the system has been appropriated; (3) at least 50 percent of the cost of the system has been expended; and (4) the system is at least 50 percent completed. Notwithstanding any other provision of law, in determining whether a community has made adequate progress on the construction, reconstruction, or improvement of a flood protection system, the Administrator shall consider all sources of funding, including Federal, State, and local funds.
(f) Availability of flood insurance in communities restoring disaccredited flood protection systems; criteria; rates
Notwithstanding any other provision of law, this subsection shall apply to riverine and coastal levees that are located in a community which has been determined by the Administrator of the Federal Emergency Management Agency to be in the process of restoring flood protection afforded by a flood protection system that had been previously accredited on a Flood Insurance Rate Map as providing 100-year frequency flood protection but no longer does so, and shall apply without regard to the level of Federal funding of or participation in the construction, reconstruction, or improvement of the flood protection system. Except as provided in this subsection, in such a community, flood insurance shall be made available to those properties impacted by the disaccreditation of the flood protection system at premium rates that do not exceed those which would be applicable to any property located in an area of special flood hazard, the construction of which was started prior to the effective date of the initial Flood Insurance Rate Map published by the Administrator for the community in which such property is located. A revised Flood Insurance Rate Map shall be prepared for the community to delineate as Zone AR the areas of special flood hazard that result from the disaccreditation of the flood protection system. A community will be considered to be in the process of restoration if—
(1) the flood protection system has been deemed restorable by a Federal agency in consultation with the local project sponsor;
(2) a minimum level of flood protection is still provided to the community by the disaccredited system; and
(3) restoration of the flood protection system is scheduled to occur within a designated time period and in accordance with a progress plan negotiated between the community and the Federal Emergency Management Agency.
Communities that the Administrator of the Federal Emergency Management Agency determines to meet the criteria set forth in paragraphs (1) and (2) as of January 1, 1992, shall not be subject to revised Flood Insurance Rate Maps that contravene the intent of this subsection. Such communities shall remain eligible for C zone rates for properties located in zone AR for any policy written prior to promulgation of final regulations for this section. Floodplain management criteria for such communities shall not require the elevation of improvements to existing structures and shall not exceed 3 feet above existing grade for new construction, provided the base flood elevation based on the disaccredited flood control system does not exceed five feet above existing grade, or the remaining new construction in such communities is limited to infill sites, rehabilitation of existing structures, or redevelopment of previously developed areas.
The Administrator of the Federal Emergency Management Agency shall develop and promulgate regulations to implement this subsection, including minimum floodplain management criteria, within 24 months after October 28, 1992.
(g) No extension of subsidy to new policies or lapsed policies
The Administrator shall not provide flood insurance to prospective insureds at rates less than those estimated under subsection (a)(1), as required by paragraph (2) of that subsection, for—
(1) any policy under the flood insurance program that has lapsed in coverage,,1 unless the decision of the policy holder to permit a lapse in flood insurance coverage was as a result of the property covered by the policy no longer being required to retain such coverage; or
(2) any prospective insured who refuses to accept any offer for mitigation assistance by the Administrator (including an offer to relocate), including an offer of mitigation assistance—
(A) following a major disaster, as defined in
(B) in connection with—
(i) a repetitive loss property; or
(ii) a severe repetitive loss property.
(h) Definition
In this section, the term "severe repetitive loss property" has the following meaning:
(1) Single-family properties
In the case of a property consisting of 1 to 4 residences, such term means a property that—
(A) is covered under a contract for flood insurance made available under this chapter; and
(B) has incurred flood-related damage—
(i) for which 4 or more separate claims payments have been made under flood insurance coverage under this subchapter, with the amount of each such claim exceeding $5,000, and with the cumulative amount of such claims payments exceeding $20,000; or
(ii) for which at least 2 separate claims payments have been made under such coverage, with the cumulative amount of such claims exceeding the value of the property.
(2) Multifamily properties
In the case of a property consisting of 5 or more residences, such term shall have such meaning as the Director 2 shall by regulation provide.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a)(2), (d), (e), and (h)(1)(A), was in the original a reference to "this title" meaning title XIII of
Amendments
2014—Subsec. (a)(1)(A).
Subsec. (a)(2)(E)(ii).
Subsec. (e).
Subsec. (f).
Subsec. (g).
"(1) any property not insured by the flood insurance program as of July 6, 2012;
"(2) any property purchased after July 6, 2012;".
2012—Subsec. (a).
Subsec. (a)(1)(B)(iv).
Subsec. (a)(2).
Subsecs. (b), (c), (e), (f).
Subsecs. (g), (h).
1992—Subsec. (f).
1990—Subsec. (a)(1)(B)(iii).
Subsec. (a)(2).
1983—Subsecs. (a) to (c), (e).
1974—Subsec. (e).
1973—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2012 Amendment
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Repeal of Certain Rate Increases
"(a)
"(1)
"(2)
"(3)
"(A)
"(B)
"(4)
"(b)
Changes in Rates Resulting From Pub. L. 113–89
Eligibility for Flood Insurance for Persons Residing in Communities That Have Made Adequate Progress on the Reconstruction or Improvement of a Flood Protection System
"(a)
"(1)
"(A) if the person resides in a community that is a participant in the National Flood Insurance Program; and
"(B) at a risk premium rate that does not exceed the risk premium rate that would be chargeable if the flood protection system had been completed.
"(2)
"(A)
"(i) 100 percent of the project cost has been authorized;
"(ii) not less than 60 percent of the project cost has been secured or appropriated;
"(iii) not less than 50 percent of the flood protection system has been assessed as being without deficiencies; and
"(iv) the reconstruction or improvement has a project schedule that does not exceed 5 years, beginning on the date on which the reconstruction or construction of the improvement commences.
"(B)
"(C)
"(3)
"(4)
"(b)
"(1)
"(A) a requirement that the Administrator shall—
"(i) consult with the owner of the flood protection system—
"(I) 6 months after the date of a determination under subsection (a);
"(II) 18 months after the date of a determination under subsection (a); and
"(III) 36 months after the date of a determination under subsection (a); and
"(ii) after each consultation under clause (i), determine whether the reconstruction or improvement is reasonably likely to be completed in accordance with the project schedule described in subsection (a)(2)(A)(iv); and
"(B) a requirement that, if the Administrator makes a determination under subparagraph (A)(ii) that reconstruction or improvement is not reasonably likely to be completed in accordance with the project schedule, the Administrator shall—
"(i) not later than 30 days after the date of the determination, notify the owner of the flood protection system of the determination and provide the rationale and evidence for the determination; and
"(ii) provide the owner of the flood protection system the opportunity to appeal the determination.
"(2)
"(A) the Administrator determines that the community has not made adequate continuing progress; or
"(B) on the date that is 5 years after the date on which the reconstruction or construction of the improvement commences, the project has not been completed.
"(3)
"(A) the community has made adequate continuing progress on the reconstruction or improvement of a flood protection system; and
"(B) there is a reasonable expectation that the reconstruction or improvement of the flood protection system will be completed not later than 1 year after the date of the determination under this paragraph.
"(4)
"(c)
"(1)
"(A) the community makes a written request for the determination setting forth the exceptional and exigent circumstances, including why the community cannot meet the criteria for adequate progress set forth in under [sic] subsection (a)(2)(A) and why immediate relief is necessary;
"(B) the Administrator submits a written report setting forth findings of the exceptional and exigent circumstances on which the Administrator based an affirmative determination to the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives not later than 15 days before making the determination; and
"(C) the eligibility for flood insurance coverage at a risk premium rate determined under this subsection terminates no later than 1 year after the date on which the Administrator makes the determination.
"(2)
"(3)
[For definitions of terms used in section 100230 of
Fees
Study of Economic Effects of Charging Actuarially Based Premium Rates for Pre-FIRM Structures
Sea Level Rise Study
2 So in original. Probably means "Administrator".
§4015. Chargeable premium rates
(a) Establishment; terms and conditions
On the basis of estimates made under
(1) chargeable premium rates for any types and classes of properties for which insurance coverage shall be available under
(2) the terms and conditions under which, and the areas (including subdivisions thereof) within which, such rates shall apply.
(b) Considerations for rates
Such rates shall, insofar as practicable, be—
(1) based on a consideration of the respective risks involved, including differences in risks due to land use measures, flood-proofing, flood forecasting, and similar measures;
(2) adequate, on the basis of accepted actuarial principles, to provide reserves for anticipated losses, or, if less than such amount, consistent with the objective of making flood insurance available where necessary at reasonable rates so as to encourage prospective insureds to purchase such insurance and with the purposes of this chapter;
(3) adequate, together with the fee under paragraph (1)(B)(iii) or (2) of
(4) stated so as to reflect the basis for such rates, including the differences (if any) between the estimated risk premium rates under
(5) adequate, on the basis of accepted actuarial principles, to cover the average historical loss year obligations incurred by the National Flood Insurance Fund.
(c) Actuarial rate properties
Subject only to the limitations provided under paragraphs (1) and (2), the chargeable rate shall not be less than the applicable estimated risk premium rate for such area (or subdivision thereof) under
(1) Post-firm properties
Any property the construction or substantial improvement of which the Administrator determines has been started after December 31, 1974, or started after the effective date of the initial rate map published by the Administrator under paragraph (2) of
(2) Certain leased coastal and river properties
Any property leased from the Federal Government (including residential and nonresidential properties) that the Administrator determines is located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure.
(d) Payment of certain sums to Administrator; deposits in Fund
With respect to any chargeable premium rate prescribed under this section, a sum equal to the portion of the rate that covers any administrative expenses of carrying out the flood insurance and floodplain management programs which have been estimated under paragraphs (1)(B)(ii) and (1)(B)(iii) of
(e) Annual limitation on premium increases
Except with respect to properties described under paragraph (2) of subsection (c), and notwithstanding any other provision of this chapter—
(1) the chargeable risk premium rate for flood insurance under this chapter for any property may not be increased by more than 18 percent each year, except—
(A) as provided in paragraph (4);
(B) in the case of property identified under
(C) in the case of a property that—
(i) is located in a community that has experienced a rating downgrade under the community rating system program carried out under
(ii) is covered by a policy with respect to which the policyholder has—
(I) decreased the amount of the deductible; or
(II) increased the amount of coverage; or
(iii) was misrated;
(2) the chargeable risk premium rates for flood insurance under this chapter for any properties initially rated under
(3) the chargeable risk premium rates for flood insurance under this chapter for any properties within any single risk classification may not be increased by an amount that would result in the average of such rate increases for properties within the risk classification during any 12-month period exceeding 15 percent of the average of the risk premium rates for properties within the risk classification upon the commencement of such 12-month period; and
(4) the chargeable risk premium rates for flood insurance under this chapter for any properties described in subparagraphs (A) through (E) of
(f) Adjustment of premium
Notwithstanding any other provision of law, if the Administrator determines that the holder of a flood insurance policy issued under this chapter is paying a lower premium than is required under this section due to an error in the flood plain determination, the Administrator may only prospectively charge the higher premium rate.
(g) Frequency of premium collection
With respect to any chargeable premium rate prescribed under this section, the Administrator shall provide policyholders that are not required to escrow their premiums and fees for flood insurance as set forth under
(h) Rule of construction
For purposes of this section, the calculation of an "average historical loss year"—
(1) includes catastrophic loss years; and
(2) shall be computed in accordance with generally accepted actuarial principles.
(i) Rates for properties newly mapped into areas with special flood hazards
Notwithstanding subsection (f), the premium rate for flood insurance under this chapter that is purchased on or after March 21, 2014—
(1) on a property located in an area not previously designated as having special flood hazards and that, pursuant to any issuance, revision, updating, or other change in a flood insurance map, becomes designated as such an area; and
(2) where such flood insurance premium rate is calculated under subsection (a)(1) of
shall for the first policy year be the preferred risk premium for the property and upon renewal shall be calculated in accordance with subsection (e) of this section until the rate reaches the rate calculated under subsection (a)(1) of
(j) Premiums and reports
In setting premium risk rates, in addition to striving to achieve the objectives of this chapter the Administrator shall also strive to minimize the number of policies with annual premiums that exceed one percent of the total coverage provided by the policy. For any policies premiums that exceed this one percent threshold, the Administrator shall report such exceptions to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.
(k) Consideration of mitigation methods
In calculating the risk premium rate charged for flood insurance for a property under this section, the Administrator shall take into account the implementation of any mitigation method identified by the Administrator in the guidance issued under
(l) Clear communications
The Administrator shall clearly communicate full flood risk determinations to individual property owners regardless of whether their premium rates are full actuarial rates.
(m) Protection of small businesses, non-profits, houses of worship, and residences
(1) Report
Not later than 18 months after March 21, 2014,1 and semiannually thereafter, the Administrator shall monitor and report to Committee on Financial Services of the House Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, the Administrator's assessment of the impact, if any, of the rate increases required under subparagraphs (A) and (D) of
(A) small businesses with less than 100 employees;
(B) non-profit entities;
(C) houses of worship; and
(D) residences with a value equal to or less than 25 percent of the median home value of properties in the State in which the property is located.
(2) Recommendations
If the Administrator determines that the rate increases or surcharges described in paragraph (1) are having a detrimental effect on affordability, including resulting in lapsed policies, late payments, or other criteria related to affordability as identified by the Administrator, for any of the properties identified in subparagraphs (A) through (D) of such paragraph, the Administrator shall, not later than 3 months after making such a determination, make such recommendations as the Administrator considers appropriate to improve affordability to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (b)(2), (e), (i), and (j), was in the original a reference to "this title" meaning title XIII of
This chapter, referred to in subsec. (f), was in the original "this Act", and was translated as reading "this title", meaning title XIII of
The Flood Disaster Protection Act of 1973, referred to in subsec. (h), is
The Biggert-Waters Flood Insurance Reform Act of 2012, referred to in subsec. (h), is subtitle A (§§100201–100249) of title II of div. F of
March 21, 2014, referred to in subsec. (m)(1), was in the original "the date of the enactment of this section", and was translated as reading "the date of the enactment of this subsection", meaning the date of enactment of
Amendments
2014—Subsec. (e).
Subsec. (e)(1), (2).
Subsec. (e)(3).
Subsec. (e)(4).
Subsec. (g).
Subsec. (h).
Subsec. (i).
Subsec. (j).
Subsec. (k).
Subsec. (l).
Subsec. (m).
2012—Subsec. (a).
Subsec. (b)(5).
Subsecs. (c), (d).
Subsec. (e).
Subsec. (e)(1).
Subsec. (e)(2).
Subsec. (f).
Subsec. (g).
Subsec. (h).
Subsec. (i).
2004—Subsec. (c).
Subsec. (e).
Subsec. (f).
1994—Subsec. (c).
Subsec. (e).
1990—Subsec. (b)(3), (4).
Subsec. (d).
"(1) is a rate which is not less than the applicable estimated risk premium rate under
"(2) includes any amount for administrative expenses of carrying out the flood insurance program which have been estimated under clause (ii) of
a sum equal to such amount shall be paid to the Director, and he shall deposit such sum in the National Flood Insurance Fund established under
1983—Subsecs. (a), (c), (d).
1973—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Effective Date of 2012 Amendment
Construction of Amendment by Pub. L. 112–141
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Implementation
Limitation on Premiums
1 See References in Text note below.
§4015a. Premium surcharge
(a) Imposition and collection
The Administrator shall impose and collect an annual surcharge, in the amount provided in subsection (b), on all policies for flood insurance coverage under the National Flood Insurance Program that are newly issued or renewed after March 21, 2014. Such surcharge shall be in addition to the surcharge under
(b) Amount
The amount of the surcharge under subsection (a) shall be—
(1) $25, except as provided in paragraph (2); and
(2) $250, in the case of a policy for any property that is—
(A) a non-residential property; or
(B) a residential property that is not the primary residence of an individual.
(c) Termination
Subsections (a) and (b) shall cease to apply on the date on which the chargeable risk premium rate for flood insurance under this chapter for each property covered by flood insurance under this chapter, other than properties for which premiums are calculated under subsection (e) or (f) of
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (c), was in the original a reference to "this title" meaning title XIII of
Section 100230 of the Biggert-Waters Flood Insurance Reform Act of 2012, referred to in subsec. (c), is section 100230 of
§4016. Financing
(a) Authority to issue notes and other obligations
All authority which was vested in the Housing and Home Finance Administrator by virtue of
(b) Deposit of borrowed funds
Any funds borrowed by the Administrator under this authority shall, from time to time, be deposited in the National Flood Insurance Fund established under
(c) Schedule of repayments
Upon the exercise of the authority established under subsection (a), the Administrator shall transmit a schedule for repayment of such amounts to—
(1) the Secretary of the Treasury;
(2) the Committee on Banking, Housing, and Urban Affairs of the Senate; and
(3) the Committee on Financial Services of the House of Representatives.
(d) Reports on repayment
In connection with any funds borrowed by the Administrator under the authority established in subsection (a), the Administrator, beginning 6 months after the date on which such funds are borrowed, and continuing every 6 months thereafter until such borrowed funds are fully repaid, shall submit a report on the progress of such repayment to—
(1) the Secretary of the Treasury;
(2) the Committee on Banking, Housing, and Urban Affairs of the Senate; and
(3) the Committee on Financial Services of the House of Representatives.
(
Editorial Notes
References in Text
Section 1303 of this Act, referred to in subsec. (a), means section 1303 of
This chapter, referred to in subsec. (a), was in the original a reference to "this title" meaning title XIII of
Amendments
2022—Subsec. (a).
2020—Subsec. (a).
2019—Subsec. (a).
2018—Subsec. (a).
2013—Subsec. (a).
2012—Subsec. (a).
Subsec. (b).
Subsecs. (c), (d).
2011—Subsec. (a).
2010—Subsec. (a).
2006—Subsec. (a).
2005—Subsec. (a).
2004—Subsec. (a).
2003—Subsec. (a)(2).
2001—Subsec. (a)(2).
2000—Subsec. (a)(2).
1999—Subsec. (a)(2).
1998—Subsec. (a)(2).
1997—Subsec. (a)(2).
1996—Subsec. (a)(2).
1984—Subsec. (a).
1983—
1973—Subsec. (a).
Statutory Notes and Related Subsidiaries
Change of Name
Reference to the Director of the Federal Emergency Management Agency in any law, rule, regulation, certificate, directive, instruction, or other official paper, considered to refer and apply to the Administrator of the Federal Emergency Management Agency, see section 612(f)(2) of
Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of
Effective Date of 2022 Amendment
Effective Date of 2020 Amendment
"(1) This section [amending this section and
"(2) If this Act is enacted after September 30, 2020, this section shall be applied as if it were in effect on September 30, 2020."
Effective Date of 2019 Amendment
Effective Date of 2018 Amendment
Effective Date of 2010 Amendment
Effective Date of 2004 Amendment
Effective Date of 2003 Amendments
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Functions of Housing and Home Finance Agency and head thereof transferred to Secretary of Housing and Urban Development by
Extension of Limitation on Financing Provisions
[
For nonamendatory provisions extending both the limitation on financing provisions in subsec. (a) of this section and the National Flood Insurance Program generally, see Extension of Program notes under
Executive Documents
Transfer of Functions
Functions vested in Secretary of Housing and Urban Development pursuant to this chapter transferred to Director of Federal Emergency Management Agency pursuant to Reorg. Plan No. 3 of 1978, §202, June 19, 1978, 43 F.R. 41944,
1 See Extension of Limitation on Financing Provisions note below.
§4017. National Flood Insurance Fund
(a) Establishment; availability
To carry out the flood insurance program authorized by this chapter, the Administrator shall establish in the Treasury of the United States a National Flood Insurance Fund (hereinafter referred to as the "fund") which shall be an account separate from any other accounts or funds available to the Administrator and shall be available as described in subsection (f), without fiscal year limitation (except as otherwise provided in this section)—
(1) for making such payments as may, from time to time, be required under
(2) to pay reinsurance claims under the excess loss reinsurance coverage provided under
(3) to repay to the Secretary of the Treasury such sums as may be borrowed from him (together with interest) in accordance with the authority provided in
(4) to the extent approved in appropriations Acts, to pay any administrative expenses of the flood insurance and floodplain management programs (including the costs of mapping activities under
(5) for the purposes specified in subsection (d) under the conditions provided therein;
(6) for carrying out the program under
(7) for transfers to the National Flood Mitigation Fund, but only to the extent provided in
(8) for carrying out
(b) Credits to Fund
The fund shall be credited with—
(1) such funds borrowed in accordance with the authority provided in
(2) premiums, fees, or other charges which may be paid or collected in connection with the excess loss reinsurance coverage provided under
(3) such amounts as may be advanced to the fund from appropriations in order to maintain the fund in an operative condition adequate to meet its liabilities;
(4) interest which may be earned on investments of the fund pursuant to subsection (c);
(5) such sums as are required to be paid to the Administrator under
(6) receipts from any other operations under this chapter (including premiums under the conditions specified in subsection (d), and salvage proceeds, if any, resulting from reinsurance coverage).
(c) Investment of moneys in obligations issued or guaranteed by United States
If, after—
(1) all outstanding obligations of the fund have been liquidated, and
(2) any outstanding amounts which may have been advanced to the fund from appropriations authorized under
the Administrator determines that the moneys of the fund are in excess of current needs, he may request the investment of such amounts as he deems advisable by the Secretary of the Treasury in obligations issued or guaranteed by the United States.
(d) Availability of Fund if operation of program is carried out through facilities of Federal Government
In the event the Administrator makes a determination in accordance with the provisions of
(1) cost incurred in the adjustment and payment of any claims for losses, and
(2) payment of applicable operating costs set forth in the schedules prescribed under
for so long as the program is so carried out, and in such event any premiums paid shall be deposited by the Administrator to the credit of the fund.
(e) Annual budget
An annual business-type budget for the fund shall be prepared, transmitted to the Congress, considered, and enacted in the manner prescribed by
(f) Availability of funds dependent on future appropriations acts
The fund shall be available, with respect to any fiscal year beginning on or after October 1, 1981, only to the extent approved in appropriation Acts; except that the fund shall be available for the purpose described in subsection (d)(1) without such approval.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a) and (b)(6), was in the original a reference to "this title" meaning title XIII of
Amendments
2014—Subsec. (a)(8).
2012—Subsec. (a).
Subsec. (a)(6) to (9).
"(8) for financial assistance under
"(9) for funding, not to exceed $10,000,000 in any fiscal year, for mitigation actions under
Subsecs. (b)(5), (c), (d).
2004—Subsec. (a)(7), (8).
Subsec. (a)(9).
1994—Subsec. (a).
Subsec. (a)(6) to (8).
1990—Subsec. (a)(4).
1988—Subsec. (e).
1984—Subsec. (e).
1983—Subsecs. (a), (b)(5), (c), (d).
1981—Subsec. (a).
Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 1981 Amendment
Amendment by
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4017a. Reserve Fund
(a) Establishment of Reserve Fund
In carrying out the flood insurance program authorized by this subchapter, the Administrator shall establish in the Treasury of the United States a National Flood Insurance Reserve Fund (in this section referred to as the "Reserve Fund") which shall—
(1) be an account separate from any other accounts or funds available to the Administrator; and
(2) be available for meeting the expected future obligations of the flood insurance program, including—
(A) the payment of claims;
(B) claims adjustment expenses; and
(C) the repayment of amounts outstanding under any note or other obligation issued by the Administrator under
(b) Reserve ratio
Subject to the phase-in requirements under subsection (d), the Reserve Fund shall maintain a balance equal to—
(1) 1 percent of the sum of the total potential loss exposure of all outstanding flood insurance policies in force in the prior fiscal year; or
(2) such higher percentage as the Administrator determines to be appropriate, taking into consideration any circumstance that may raise a significant risk of substantial future losses to the Reserve Fund.
(c) Maintenance of reserve ratio
(1) In general
The Administrator shall have the authority to establish, increase, or decrease the amount of aggregate annual insurance premiums to be collected for any fiscal year necessary—
(A) to maintain the reserve ratio required under subsection (b); and
(B) to achieve such reserve ratio, if the actual balance of such reserve is below the amount required under subsection (b).
(2) Considerations
In exercising the authority granted under paragraph (1), the Administrator shall consider—
(A) the expected operating expenses of the Reserve Fund;
(B) the insurance loss expenditures under the flood insurance program;
(C) any investment income generated under the flood insurance program; and
(D) any other factor that the Administrator determines appropriate.
(3) Limitations
(A) Rates
In exercising the authority granted under paragraph (1), the Administrator shall be subject to all other provisions of this chapter, including any provisions relating to chargeable premium rates or annual increases of such rates.
(B) Use of additional annual insurance premiums
Notwithstanding any other provision of law or any agreement entered into by the Administrator, the Administrator shall ensure that all amounts attributable to the establishment or increase of annual insurance premiums under paragraph (1) are transferred to the Administrator for deposit into the Reserve Fund, to be available for meeting the expected future obligations of the flood insurance program as described in subsection (a)(2).
(4) Deposit of premium surcharges
The Administrator shall deposit in the Reserve Fund any surcharges collected pursuant to
(d) Phase-in requirements
The phase-in requirements under this subsection are as follows:
(1) In general
Beginning in fiscal year 2013 and not ending until the fiscal year in which the ratio required under subsection (b) is achieved, in each such fiscal year the Administrator shall place in the Reserve Fund an amount equal to not less than 7.5 percent of the reserve ratio required under subsection (b).
(2) Amount satisfied
As soon as the ratio required under subsection (b) is achieved, and except as provided in paragraph (3), the Administrator shall not be required to set aside any amounts for the Reserve Fund.
(3) Exception
If at any time after the ratio required under subsection (b) is achieved, the Reserve Fund falls below the required ratio under subsection (b), the Administrator shall place in the Reserve Fund for that fiscal year an amount equal to not less than 7.5 percent of the reserve ratio required under subsection (b).
(e) Limitation on reserve ratio
In any given fiscal year, if the Administrator determines that the reserve ratio required under subsection (b) cannot be achieved, the Administrator shall submit, on a calendar quarterly basis, a report to Congress that—
(1) describes and details the specific concerns of the Administrator regarding the consequences of the reserve ratio not being achieved;
(2) demonstrates how such consequences would harm the long-term financial soundness of the flood insurance program; and
(3) indicates the maximum attainable reserve ratio for that particular fiscal year.
(f) Investment
The Secretary of the Treasury shall invest such amounts of the Reserve Fund as the Secretary determines advisable in obligations issued or guaranteed by the United States.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (c)(3)(A), was in the original "this Act", and was translated as reading "this title", meaning title XIII of
Amendments
2014—Subsec. (c)(4).
Subsec. (e).
§4018. Operating costs and allowances; definitions
(a) The Administrator shall from time to time negotiate with appropriate representatives of the insurance industry for the purpose of establishing—
(1) a current schedule of operating costs applicable both to risk-sharing insurance companies and other insurers and to insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations participating on other than a risk-sharing basis, and
(2) a current schedule of operating allowances applicable to risk-sharing insurance companies and other insurers,
which may be payable in accordance with the provisions of subchapter II, and such schedules shall from time to time be prescribed in regulations.
(b) For purposes of subsection (a)—
(1) the term "operating costs" shall (without limiting such term) include—
(A) expense reimbursements covering the direct, actual, and necessary expenses incurred in connection with selling and servicing flood insurance coverage;
(B) reasonable compensation payable for selling and servicing flood insurance coverage, or commissions or service fees paid to producers;
(C) loss adjustment expenses; and
(D) other direct, actual, and necessary expenses which the Administrator finds are incurred in connection with selling or servicing flood insurance coverage; and
(2) the term "operating allowances" shall (without limiting such term) include amounts for profit and contingencies which the Administrator finds reasonable and necessary to carry out the purposes of this chapter.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (b)(2), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—Subsecs. (a), (b)(1)(D), (2).
1983—Subsecs. (a), (b)(1)(D), (2).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4019. Payment of claims
(a) In general
The Administrator is authorized to prescribe regulations establishing the general method or methods by which proved and approved claims for losses may be adjusted and paid for any damage to or loss of property which is covered by flood insurance made available under the provisions of this chapter.
(b) Minimum annual deductible
(1) Pre-firm properties
For any structure which is covered by flood insurance under this chapter, and on which construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial flood insurance rate map published by the Administrator under
(A) $1,500, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and
(B) $2,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000.
(2) Post-firm properties
For any structure which is covered by flood insurance under this chapter, and on which construction or substantial improvement occurred after December 31, 1974, or after the effective date of an initial flood insurance rate map published by the Administrator under
(A) $1,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and
(B) $1,250, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000.
(c) Payment of claims to condominium owners
The Administrator may not deny payment for any damage to or loss of property which is covered by flood insurance to condominium owners who purchased such flood insurance separate and apart from the flood insurance purchased by the condominium association in which such owner is a member, based solely, or in any part, on the flood insurance coverage of the condominium association or others on the overall property owned by the condominium association.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a) and (b), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—
Subsec. (c).
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4020. Dissemination of flood insurance information
The Administrator shall from time to time take such action as may be necessary in order to make information and data available to the public, and to any State or local agency or official, with regard to—
(1) the flood insurance program, its coverage and objectives, and
(2) estimated and chargeable flood insurance premium rates, including the basis for and differences between such rates in accordance with the provisions of
(
Editorial Notes
Amendments
2012—
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4021. Participation in State disaster claims mediation programs
(a) Requirement to participate
In the case of the occurrence of a major disaster, as defined in
(b) Extent of participation
In satisfying the requirements of subsection (a), the Administrator shall require that each representative of the Administrator—
(1) be certified for purposes of the national flood insurance program to settle claims against such program resulting from such disaster in amounts up to the limits of policies under such program;
(2) attend State-sponsored mediation meetings regarding flood insurance claims resulting from such disaster at such times and places as may be arranged by the State;
(3) participate in good-faith negotiations toward the settlement of such claims with policyholders of coverage made available under the national flood insurance program; and
(4) finalize the settlement of such claims on behalf of the national flood insurance program with such policyholders.
(c) Coordination
Representatives of the Administrator shall at all times coordinate their activities with insurance officials of the State and representatives of insurers for the purposes of consolidating and expediting settlement of claims under the national flood insurance program resulting from such disaster.
(d) Qualifications of mediators
Each State mediator participating in State-sponsored mediation under this section shall be—
(1)(A) a member in good standing of the State bar in the State in which the mediation is to occur with at least 2 years of practical experience; and
(B) an active member of such bar for at least 1 year prior to the year in which such mediator's participation is sought; or
(2) a retired trial judge from any United States jurisdiction who was a member in good standing of the bar in the State in which the judge presided for at least 5 years prior to the year in which such mediator's participation is sought.
(e) Mediation proceedings and documents privileged
As a condition of participation, all statements made and documents produced pursuant to State-sponsored mediation involving representatives of the Administrator shall be deemed privileged and confidential settlement negotiations made in anticipation of litigation.
(f) Liability, rights, or obligations not affected
Participation in State-sponsored mediation, as described in this section does not—
(1) affect or expand the liability of any party in contract or in tort; or
(2) affect the rights or obligations of the parties, as established—
(A) in any regulation issued by the Administrator, including any regulation relating to a standard flood insurance policy;
(B) under this chapter; and
(C) under any other provision of Federal law.
(g) Exclusive Federal jurisdiction
Participation in State-sponsored mediation shall not alter, change, or modify the original exclusive jurisdiction of United States courts, as set forth in this chapter.
(h) Cost limitation
Nothing in this section shall be construed to require the Administrator or a representative of the Administrator to pay additional mediation fees relating to flood insurance claims associated with a State-sponsored mediation program in which such representative of the Administrator participates.
(i) Exception
In the case of the occurrence of a major disaster that results in flood damage claims under the national flood insurance program and that does not result in any loss covered by a personal lines residential property insurance policy—
(1) this section shall not apply; and
(2) the provisions of the standard flood insurance policy under the national flood insurance program and the appeals process established under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (
(j) Representatives of the Administrator
For purposes of this section, the term "representatives of the Administrator" means representatives of the national flood insurance program who participate in the appeals process established under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a), (f)(2)(B), and (g), was in the original a reference to "this title" meaning title XIII of
Section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004, referred to in subsecs. (i)(2) and (j), is section 205 of
Prior Provisions
A prior section 4021,
§4022. State and local land use controls
(a) Requirement for participation in flood insurance program
(1) In general
After December 31, 1971, no new flood insurance coverage shall be provided under this chapter in any area (or subdivision thereof) unless an appropriate public body shall have adopted adequate land use and control measures (with effective enforcement provisions) which the Administrator finds are consistent with the comprehensive criteria for land management and use under
(2) Agricultural structures
(A) Activity restrictions
Notwithstanding any other provision of law, the adequate land use and control measures required to be adopted in an area (or subdivision thereof) pursuant to paragraph (1) may provide, at the discretion of the appropriate State or local authority, for the repair and restoration to predamaged conditions of an agricultural structure that—
(i) is a repetitive loss structure; or
(ii) has incurred flood-related damage to the extent that the cost of restoring the structure to its predamaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred.
(B) Premium rates and coverage
To the extent applicable, an agricultural structure repaired or restored pursuant to subparagraph (A) shall pay chargeable premium rates established under
(C) Prohibition on disaster relief
Notwithstanding any other provision of law, any agricultural structure repaired or restored pursuant to subparagraph (A) shall not be eligible for disaster relief assistance under any program administered by the Administrator or any other Federal agency.
(D) Definitions
For purposes of this paragraph—
(i) the term "agricultural structure" means any structure used exclusively in connection with the production, harvesting, storage, raising, or drying of agricultural commodities; and
(ii) the term "agricultural commodities" means agricultural commodities and livestock.
(b) Community rating system and incentives for community floodplain management
(1) Authority and goals
The Administrator shall carry out a community rating system program, under which communities participate voluntarily—
(A) to provide incentives for measures that reduce the risk of flood or erosion damage that exceed the criteria set forth in
(B) to encourage adoption of more effective measures that protect natural and beneficial floodplain functions;
(C) to encourage floodplain and erosion management; and
(D) to promote the reduction of Federal flood insurance losses.
(2) Incentives
The program shall provide incentives in the form of credits on premium rates for flood insurance coverage in communities that the Administrator determines have adopted and enforced measures that reduce the risk of flood and erosion damage that exceed the criteria set forth in
(3) Credits
The credits on premium rates for flood insurance coverage shall be based on the estimated reduction in flood and erosion damage risks resulting from the measures adopted by the community under this program. If a community has received mitigation assistance under
(4) Reports
Not later than 2 years after September 23, 1994, and not less than every 2 years thereafter, the Administrator shall submit a report to the Congress regarding the program under this subsection. Each report shall include an analysis of the cost-effectiveness of the program, any other accomplishments or shortcomings of the program, and any recommendations of the Administrator for legislation regarding the program.
(c) Replacement of mobile homes on original sites
(1) Community participation
The placement of any mobile home on any site shall not affect the eligibility of any community to participate in the flood insurance program under this chapter and the Flood Disaster Protection Act of 1973 (notwithstanding that such placement may fail to comply with any elevation or flood damage mitigation requirements), if—
(A) such mobile home was previously located on such site;
(B) such mobile home was relocated from such site because of flooding that threatened or affected such site; and
(C) such replacement is conducted not later than the expiration of the 180-day period that begins upon the subsidence (in the area of such site) of the body of water that flooded to a level considered lower than flood levels.
(2) Definition
For purposes of this subsection, the term "mobile home" has the meaning given such term in the law of the State in which the mobile home is located.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a)(1) and (c)(1), was in the original a reference to "this title" meaning title XIII of
The Flood Disaster Protection Act of 1973, referred to in subsec. (c)(1), is
Amendments
2012—Subsecs. (a)(1), (2)(B), (C), (b).
2004—Subsec. (c).
1994—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (b).
1983—
1969—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4023. Properties in violation of State and local law
No new flood insurance coverage shall be provided under this chapter for any property which the Administrator finds has been declared by a duly constituted State or local zoning authority, or other authorized public body, to be in violation of State or local laws, regulations, or ordinances which are intended to discourage or otherwise restrict land development or occupancy in flood-prone areas.
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original a reference to "this title" meaning title XIII of
Amendments
2012—
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4024. Coordination with other programs
In carrying out this chapter, the Administrator shall consult with other departments and agencies of the Federal Government, and with interstate, State, and local agencies having responsibilities for flood control, flood forecasting, or flood damage prevention, in order to assure that the programs of such agencies and the flood insurance program authorized under this chapter are mutually consistent.
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original a reference to "this title" meaning title XIII of
Amendments
2012—
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4025. Flood insurance advisory committee
(a) Appointment; duties
The Administrator shall appoint a flood insurance advisory committee without regard to the provisions of title 5 governing appointments in the competitive service, and such committee shall advise the Administrator in the preparation of any regulations prescribed in accordance with this chapter and with respect to policy matters arising in the administration of this chapter, and shall perform such other responsibilities as the Administrator may, from time to time, assign to such committee.
(b) Membership
Such committee shall consist of not more than fifteen persons and such persons shall be selected from among representatives of—
(1) the insurance industry,
(2) State and local governments,
(3) lending institutions,
(4) the homebuilding industry, and
(5) the general public.
(c) Compensation and travel expenses
Members of the committee shall, while attending conferences or meetings thereof, be entitled to receive compensation at a rate fixed by the Administrator but not exceeding $100 per day, including traveltime, and while so serving away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as is authorized under
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—Subsecs. (a), (c).
1983—Subsecs. (a), (c).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Termination of Advisory Committees
Advisory committees in existence on Jan. 5, 1973, to terminate not later than the expiration of the 2-year period following Jan. 5, 1973, unless, in the case of a committee established by the President or an officer of the Federal Government, such committee is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a committee established by the Congress, its duration is otherwise provided by law. Advisory committees established after Jan. 5, 1973, to terminate not later than the expiration of the 2-year period beginning on the date of their establishment, unless, in the case of a committee established by the President or an officer of the Federal Government, such committee is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a committee established by the Congress, its duration is otherwise provided by law. See
§4026. Expiration of program
No new contract for flood insurance under this chapter shall be entered into after September 30, 2023.1
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original a reference to "this title" meaning title XIII of
Amendments
2022—
2020—
2019—
2018—
2012—
2011—
2010—
2004—
2003—
2001—
1998—
1997—
1996—
1994—
1990—
1989—
1988—
1987—
1986—
1985—
1983—
1982—
1981—
1979—
1978—
1977—
1973—
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2018 Amendment
Amendment by
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2004 Amendment
Amendment by
Effective Date of 2003 Amendments
Amendment by
Amendment by
Effective Date of 1998 Amendment
Effective Date of 1981 Amendment
Amendment by
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Extension of Program
"(a) Sections 1309(a) and 1319 of the National Flood Insurance Act of 1968 (
"(b)(1) Subject to paragraph (2), this section shall become effective immediately upon enactment of this Act [div. A of
"(2) If this Act is enacted after September 30, 2024, this section shall be applied as if it were in effect on September 30, 2024."
[Section 101(b) of div. G of
1 See Extension of Program note below.
§4027. Biennial report to President
(a) In general
The Administrator shall biennially submit a report of operations under this chapter to the President for submission to the Congress.
(b) Effects of flood insurance program
The Administrator shall include, as part of the biennial report submitted under subsection (a), a chapter reporting on the effects on the flood insurance program observed through implementation of requirements under the Riegle Community Development and Regulatory Improvement Act of 1994.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original a reference to "this title" meaning title XIII of
The Riegle Community Development and Regulatory Improvement Act of 1994, referred to in subsec. (b), is
Amendments
2012—
1994—
1983—
1980—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4027a. Report of the Administrator on activities under the National Flood Insurance Program
(1) In general
The Administrator shall, on an annual basis, submit a full report on the operations, activities, budget, receipts, and expenditures of the National Flood Insurance Program for the preceding 12-month period to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.
(2) Timing
Each report required under paragraph (1) shall be submitted to the committees described in paragraph (1) not later than 3 months following the end of each fiscal year.
(3) Contents
Each report required under paragraph (1) shall include—
(A) the current financial condition and income statement of the National Flood Insurance Fund established under
(i) premiums paid into such Fund;
(ii) policy claims against such Fund; and
(iii) expenses in administering such Fund;
(B) the number and face value of all policies issued under the National Flood Insurance Program that are in force;
(C) a description and summary of the losses attributable to repetitive loss structures;
(D) a description and summary of all losses incurred by the National Flood Insurance Program due to—
(i) hurricane related damage; and
(ii) nonhurricane related damage;
(E) the amounts made available by the Administrator for mitigation assistance under
(F) the estimate of the Administrator as to the average historical loss year, and the basis for that estimate;
(G) the estimate of the Administrator as to the maximum amount of claims that the National Flood Insurance Program would have to expend in the event of a catastrophic year;
(H) the average—
(i) amount of insurance carried per flood insurance policy;
(ii) premium per flood insurance policy; and
(iii) loss per flood insurance policy; and
(I) the number of claims involving damages in excess of the maximum amount of flood insurance available under the National Flood Insurance Program and the sum of the amount of all damages in excess of such amount.
(
Editorial Notes
References in Text
This Act, referred to in par. (3)(E), is
Codification
Section was enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012, and also as part of the Moving Ahead for Progress in the 21st Century Act, also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Definitions
For definitions of terms used in this section, see
§4027b. Assessment of claims-paying ability
(1) Assessment
(A) Assessment required
(i) In general
Not later than September 30 of each year, the Administrator shall conduct an assessment of the ability of the National Flood Insurance Program to pay claims.
(ii) Private market reinsurance
The assessment under this paragraph for any year in which the Administrator exercises the authority under
(iii) First assessment
The Administrator shall conduct the first assessment required under this paragraph not later than September 30, 2012.
(B) Considerations
In conducting an assessment under subparagraph (A), the Administrator shall take into consideration regional concentrations of coverage written by the National Flood Insurance Program, peak flood zones, and relevant mitigation measures.
(2) Annual report of the Administrator of activities under the National Flood Insurance Program
The Administrator shall—
(A) include the results of each assessment in the report required under
(B) not later than 30 days after the date on which the Administrator completes an assessment required under paragraph (1), make the results of the assessment available to the public.
(
Editorial Notes
References in Text
This section, referred to in par. (1)(A)(ii), means section 100232 of
Codification
Section was enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012, and also as part of the Moving Ahead for Progress in the 21st Century Act, also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Definitions
For definitions of terms used in this section, see
1 See References in Text note below.
§4028. John H. Chafee Coastal Barrier Resources System
(a) No new flood insurance coverage may be provided under this chapter on or after October 1, 1983, for any new construction or substantial improvements of structures located on any coastal barrier within the John H. Chafee Coastal Barrier Resources System established by
(b) No new flood insurance coverage may be provided under this chapter after the expiration of the 1-year period beginning on November 16, 1990, for any new construction or substantial improvements of structures located in any area identified and depicted on the maps referred to in
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original a reference to "this title" meaning title XIII of
Amendments
1999—
1990—
1982—Subsecs. (a) to (c).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 1981, see section 371 of
Study for Designation of Undeveloped Coastal Barriers; Report and Recommendations to Congress
§4029. Colorado River Floodway
(a) Renewal and transfer of policies; acquisition of policies after filing of maps
Owners of existing National Flood Insurance Act policies with respect to structures located within the Floodway established under
(b) New coverage for new construction or substantial improvements
No new flood insurance coverage may be provided under this chapter on or after a date six months after October 8, 1986, for any new construction or substantial improvements of structures located within the Colorado River Floodway established by
(c) Establishment of temporary boundaries
The Secretary of the Interior may by rule after notice and comment pursuant to
(d) Loans by federally supervised, approved, regulated, or insured financial institutions
A regulated lending institution or Federal agency lender may make loans secured by structures which are not eligible for flood insurance by reason of this section: Provided, That prior to making such a loan, such institution determines that the loans or structures securing the loan are within the Floodway.
(
Editorial Notes
References in Text
The National Flood Insurance Act, referred to in subsec. (a), probably means the National Flood Insurance Act of 1968, title XIII of
This chapter, referred to in subsec. (b), was in the original a reference to "this title" meaning title XIII of
Amendments
1994—Subsec. (d).
1988—
1 See References in Text note below.
§4030. Repealed. Pub. L. 112–141, div. F, title II, §100225(b), July 6, 2012, 126 Stat. 941
Section,
§4031. Treatment of certain payments
Assistance provided under a program under this chapter for flood mitigation activities (including any assistance provided under the mitigation pilot program under section 4102a 1 of this title, any assistance provided under the mitigation assistance program under
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original a reference to "this title" meaning title XIII of
1 See References in Text note below.
§4032. Treatment of swimming pool enclosures outside of hurricane season
(a) In general
Notwithstanding any other provision of law, including the adequate land use and control measures developed pursuant to
(1) Nonsupporting breakaway walls in the space below the lowest elevated floor of a building, if the space is used solely for a swimming pool between November 30 and June 1 of any year, in an area designated as Zone V on a flood insurance rate map.
(2) Openings in walls in the space below the lowest elevated floor of a building, if the space is used solely for a swimming pool between November 30 and June 1 of any year, in an area designated as Zone A on a flood insurance rate map.
(b) Rule of construction
Nothing in subsection (a) shall be construed to alter the terms and conditions of eligibility and insurability of coverage for a building under the standard flood insurance policy under the national flood insurance program.
(
§4033. Designation of Flood Insurance Advocate
(a) In general
The Administrator shall designate a Flood Insurance Advocate to advocate for the fair treatment of policy holders under the National Flood Insurance Program and property owners in the mapping of flood hazards, the identification of risks from flood, and the implementation of measures to minimize the risk of flood.
(b) Duties and responsibilities
The duties and responsibilities of the Flood Insurance Advocate designated under subsection (a) shall be to—
(1) educate property owners and policyholders under the National Flood Insurance Program on—
(A) individual flood risks;
(B) flood mitigation;
(C) measures to reduce flood insurance rates through effective mitigation;
(D) the flood insurance rate map review and amendment process; and
(E) any changes in the flood insurance program as a result of any newly enacted laws (including this Act);
(2) assist policy holders under the National Flood Insurance Program and property owners to understand the procedural requirements related to appealing preliminary flood insurance rate maps and implementing measures to mitigate evolving flood risks;
(3) assist in the development of regional capacity to respond to individual constituent concerns about flood insurance rate map amendments and revisions;
(4) coordinate outreach and education with local officials and community leaders in areas impacted by proposed flood insurance rate map amendments and revisions; and
(5) aid potential policy holders under the National Flood Insurance Program in obtaining and verifying accurate and reliable flood insurance rate information when purchasing or renewing a flood insurance policy.
(
Editorial Notes
References in Text
This Act, referred to in subsec. (b)(1)(E), is
Codification
Section was enacted as part of the Homeowner Flood Insurance Affordability Act of 2014, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Definitions
For definitions of terms used in this section, see
SUBCHAPTER II—ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE PROGRAM
§4041. Implementation of program
Following such consultation with representatives of the insurance industry as may be necessary, the Administrator shall implement the flood insurance program authorized under subchapter I in accordance with the provisions of part A of this subchapter and, if a determination is made by him under
(
Editorial Notes
Amendments
2012—
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Part A—Industry Program With Federal Financial Assistance
§4051. Industry flood insurance pool; requirements for participation
(a) The Administrator is authorized to encourage and otherwise assist any insurance companies and other insurers which meet the requirements prescribed under subsection (b) to form, associate, or otherwise join together in a pool—
(1) in order to provide the flood insurance coverage authorized under subchapter I; and
(2) for the purpose of assuming, including as reinsurance of coverage provided by the flood insurance program, on such terms and conditions as may be agreed upon, such financial responsibility as will enable such companies and other insurers, with the Federal financial and other assistance available under this chapter, to assume a reasonable proportion of responsibility for the adjustment and payment of claims for losses under the flood insurance program.
(b) In order to promote the effective administration of the flood insurance program under this part, and to assure that the objectives of this chapter are furthered, the Administrator is authorized to prescribe appropriate requirements for insurance companies and other insurers participating in such pool including, but not limited to, minimum requirements for capital or surplus or assets.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a)(2) and (b), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—Subsec. (a).
Subsec. (a)(2).
Subsec. (b).
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4052. Agreements with flood insurance pool
(a) Authorization
The Administrator is authorized to enter into such agreements with the pool formed or otherwise created under this part as he deems necessary to carry out the purposes of this chapter.
(b) Terms and conditions
Such agreements shall specify—
(1) the terms and conditions under which risk capital will be available for the adjustment and payment of claims,
(2) the terms and conditions under which the pool (and the companies and other insurers participating therein) shall participate in premiums received and profits or losses realized or sustained,
(3) the maximum amount of profit, established by the Administrator and set forth in the schedules prescribed under
(4) the terms and conditions under which operating costs and allowances set forth in the schedules prescribed under
(5) the terms and conditions under which premium equalization payments under
(c) Additional provisions
In addition, such agreements shall contain such provisions as the Administrator finds necessary to assure that—
(1) no insurance company or other insurer which meets the requirements prescribed under
(2) the insurance companies and other insurers participating in the pool will take whatever action may be necessary to provide continuity of flood insurance coverage or reinsurance by the pool, and
(3) any insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations will be permitted to cooperate with the pool as fiscal agents or otherwise, on other than a risk-sharing basis, to the maximum extent practicable.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—Subsecs. (a), (b)(3), (c).
Subsec. (c)(2).
1983—Subsecs. (a), (b)(3), (c).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4053. Adjustment and payment of claims; judicial review; limitations; jurisdiction
The insurance companies and other insurers which form, associate, or otherwise join together in the pool under this part may adjust and pay all claims for proved and approved losses covered by flood insurance in accordance with the provisions of this chapter and, upon the disallowance by any such company or other insurer of any such claim, or upon the refusal of the claimant to accept the amount allowed upon any such claim, the claimant, within one year after the date of mailing of notice of disallowance or partial disallowance of the claim, may institute an action on such claim against such company or other insurer in the United States district court for the district in which the insured property or the major part thereof shall have been situated, and original exclusive jurisdiction is hereby conferred upon such court to hear and determine such action without regard to the amount in controversy.
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original a reference to "this title" meaning title XIII of
Amendments
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
§4054. Premium equalization payments; basis; aggregate amount; establishment of designated periods
(a) The Administrator, on such terms and conditions as he may from time to time prescribe, shall make periodic payments to the pool formed or otherwise created under
(b) Designated periods under this section and the methods for determining the sum of premiums paid or payable during such periods shall be established by the Administrator.
(
Editorial Notes
Amendments
2012—
1983—
1973—Subsecs. (b), (c).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4055. Reinsurance coverage
(a) Availability for excess losses
(1) In general
The Administrator is authorized to take such action as may be necessary in order to make available, to the pool formed or otherwise created under
(2) Private reinsurance
The Administrator is authorized to secure reinsurance of coverage provided by the flood insurance program from the private market at rates and on terms determined by the Administrator to be reasonable and appropriate, in an amount sufficient to maintain the ability of the program to pay claims.
(b) Availability pursuant to contract, agreement, or other arrangement; payment of premium, fee, or other charge
Such reinsurance shall be made available pursuant to contract, agreement, or any other arrangement, in consideration of such payment of a premium, fee, or other charge as the Administrator finds necessary to cover anticipated losses and other costs of providing such reinsurance.
(c) Excess loss agreement; negotiation
The Administrator is authorized to negotiate an excess loss agreement, from time to time, under which the amount of flood insurance retained by the pool, after ceding reinsurance, shall be adequate to further the purposes of this chapter, consistent with the objective of maintaining appropriate financial participation and risk sharing to the maximum extent practicable on the part of participating insurance companies and other insurers.
(d) Submission of excess losses on portfolio basis
All reinsurance claims for losses in excess of losses assumed by the pool shall be submitted on a portfolio basis by such pool in accordance with terms and conditions established by the Administrator.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (c), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—Subsec. (a).
Subsecs. (b) to (d).
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4056. Emergency implementation of flood insurance program; applicability of other provisions of law
(a) Notwithstanding any other provisions of this chapter, for the purpose of providing flood insurance coverage at the earliest possible time, the Administrator shall carry out the flood insurance program authorized under subchapter I during the period ending on the date specified in
(b) In carrying out the flood insurance program pursuant to subsection (a), the Administrator—
(1) shall provide insurance coverage without regard to any estimated risk premium rates which would otherwise be determined under
(2) shall utilize the provisions and procedures contained in or prescribed by this part (other than
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—
2004—Subsec. (a).
2003—Subsec. (a).
2001—Subsec. (a).
1998—Subsec. (a).
1997—Subsec. (a).
1994—Subsec. (a).
1990—Subsec. (a).
1989—Subsec. (a).
1988—Subsec. (a).
1987—Subsec. (a).
1986—Subsec. (a).
1985—Subsec. (a).
1983—Subsec. (a).
Subsec. (b).
1982—Subsec. (a).
1981—Subsec. (a).
1979—Subsec. (a).
1978—Subsec. (a).
1977—Subsec. (a).
1976—Subsec. (a).
1975—Subsec. (a).
1973—Subsec. (a).
1971—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2004 Amendment
Amendment by
Effective Date of 2003 Amendments
Amendment by
Amendment by
Effective Date of 1981 Amendment
Amendment by
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Continuing Appropriations for Fiscal Year 1998
The expiration date of Oct. 23, 1997 (see 1997 Amendment note above) was temporarily extended to Nov. 7, 1997, by
§4057. Alternative loss allocation system for indeterminate claims
(a) Definitions
In this section:
(1) Administrator
The term "Administrator" means the Administrator of the Federal Emergency Management Agency.
(2) COASTAL Formula
The term "COASTAL Formula" means the formula established under subsection (b).
(3) Coastal State
The term "coastal State" has the meaning given the term "coastal state" in
(4) Indeterminate loss
(A) In general
The term "indeterminate loss" means, as determined by an insurance claims adjuster certified under the national flood insurance program and in consultation with an engineer as appropriate, a loss resulting from physical damage to, or loss of, property located in any coastal State arising from the combined perils of flood and wind associated with a named storm.
(B) Requirements
An insurance claims adjuster certified under the national flood insurance program shall only determine that a loss is an indeterminate loss if the claims adjuster determines that—
(i) no material remnant of physical buildings or man-made structures remain except building foundations for the specific property for which the claim is made; and
(ii) there is insufficient or no tangible evidence created, yielded, or otherwise left behind of the specific property for which the claim is made as a result of the named storm.
(5) Named storm
The term "named storm" means any organized weather system with a defined surface circulation and maximum sustained winds of not less than 39 miles per hour which the National Hurricane Center of the United States National Weather Service names as a tropical storm or a hurricane.
(6) Post-storm assessment
The term "post-storm assessment" means the post-storm assessment developed under
(7) State
The term "State" means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any other territory or possession of the United States.
(8) Secretary
The term "Secretary" means the Secretary of Homeland Security.
(9) Standard insurance policy
The term "standard insurance policy" means any insurance policy issued under the national flood insurance program that covers loss or damage to property resulting from water peril.
(10) Property
The term "property" means real or personal property that is insured under a standard insurance policy for loss or damage to structure or contents.
(11) Under Secretary
The term "Under Secretary" means the Under Secretary of Commerce for Oceans and Atmosphere, in the Under Secretary's capacity as Administrator of the National Oceanic and Atmospheric Administration.
(b) Establishment of flood loss allocation formula for indeterminate claims
(1) In general
Not later than 180 days after the date on which the protocol is established under
(2) Contents
The standard formula established under paragraph (1) shall—
(A) incorporate data available from the Coastal Wind and Water Event Database established under
(B) use relevant data provided on the National Flood Insurance Program Elevation Certificate, or other data or information used to determine a property's current risk of flood, as determined by the Administrator, for each indeterminate loss for which the formula is used;
(C) consider any sufficient and credible evidence, approved by the Administrator, of the pre-event condition of a specific property, including the findings of any policyholder or insurance claims adjuster in connection with the indeterminate loss to that specific property;
(D) include other measures, as the Administrator considers appropriate, required to determine and allocate by mathematical formula the property damage caused by flood or storm surge associated with a named storm; and
(E) subject to paragraph (3), for each indeterminate loss, use the post-storm assessment to allocate water damage (flood or storm surge) associated with a named storm.
(3) Degree of accuracy required
The standard formula established under paragraph (1) shall specify that the Administrator may only use the post-storm assessment for purposes of the formula if the Under Secretary certifies that the post-storm assessment has a degree of accuracy of not less than 90 percent in connection with the specific indeterminate loss for which the assessment and formula are used.
(c) Authorized use of post-storm assessment and COASTAL Formula
(1) In general
Subject to paragraph (3), the Administrator may use the post-storm assessment and the COASTAL Formula to—
(A) review flood loss payments for indeterminate losses, including as part of the quality assurance reinspection program of the Federal Emergency Management Agency for claims under the national flood insurance program and any other process approved by the Administrator to review and validate payments under the national flood insurance program for indeterminate losses following a named storm; and
(B) assist the national flood insurance program to—
(i) properly cover qualified flood loss for claims for indeterminate losses; and
(ii) avoid paying for any loss or damage to property caused by any peril (including wind), other than flood or storm surge, that is not covered under a standard policy under the national flood insurance program.
(2) Federal disaster declaration
Subject to paragraph (3), in order to expedite claims and reduce costs to the national flood insurance program, following any major disaster declared by the President under
(3) National Academy of Sciences evaluation
(A) Evaluation required
(i) Evaluation
Upon publication of the COASTAL Formula in the Federal Register as required by subsection (b)(1), and each time the Administrator modifies the COASTAL Formula, the National Academy of Sciences shall—
(I) evaluate the expected financial impact on the national flood insurance program of the use of the COASTAL Formula as so established or modified; and
(II) evaluate the validity of the scientific assumptions upon which the formula is based and determine whether the COASTAL formula 1 can achieve a degree of accuracy of not less than 90 percent in allocating flood losses for indeterminate losses.
(ii) Report
The National Academy of Sciences shall submit a report containing the results of each evaluation under clause (i) to the Administrator, the Committee on Banking, Housing, and Urban Affairs and the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Financial Services and the Committee on Science, Space, and Technology of the House of Representatives.
(B) Effective date and applicability
(i) Effective date
Paragraphs (1) and (2) of this subsection shall not take effect unless the report under subparagraph (A) relating to the establishment of the COASTAL Formula concludes that the use of the COASTAL Formula for purposes of paragraph 2 (1) and (2) would not have an adverse financial impact on the national flood insurance program and that the COASTAL Formula is based on valid scientific assumptions that would allow a degree of accuracy of not less than 90 percent to be achieved in allocating flood losses for indeterminate losses.
(ii) Effect of modifications
Unless the report under subparagraph (A) relating to a modification of the COASTAL Formula concludes that the use of the COASTAL Formula, as so modified, for purposes of paragraphs (1) and (2) would not have an adverse financial impact on the national flood insurance program and that the COASTAL Formula is based on valid scientific assumptions that would allow a degree of accuracy of not less than 90 percent to be achieved in allocating flood losses for indeterminate losses the Administrator may not use the COASTAL Formula, as so modified, for purposes of paragraphs (1) and (2).
(C) Funding
Notwithstanding
(d) Disclosure of COASTAL Formula
Not later than 30 days after the date on which a post-storm assessment is submitted to the Secretary under
(1) that the Administrator used the COASTAL Formula with respect to the indeterminate loss; and
(2) a summary of the results of the use of the COASTAL Formula.
(e) Consultation
In carrying out subsections (b) and (c), the Secretary shall consult with—
(1) the Under Secretary for Oceans and Atmosphere;
(2) the Director of the National Institute of Standards and Technology;
(3) the Chief of Engineers of the Corps of Engineers;
(4) the Director of the United States Geological Survey;
(5) the Office of the Federal Coordinator for Meteorology;
(6) State insurance regulators of coastal States; and
(7) such public, private, and academic sector entities as the Secretary considers appropriate for purposes of carrying out such subsections.
(f) Recordkeeping
Each consideration and measure the Administrator determines necessary to carry out subsection (b) may be required, with advanced approval of the Administrator, to be provided for on the National Flood Insurance Program Elevation Certificate, or maintained otherwise on record if approved by the Administrator, for any property that qualifies for the COASTAL Formula under subsection (c).
(g) Civil penalty
(1) In general
If an insurance claims adjuster knowingly and willfully makes a false or inaccurate determination relating to an indeterminate loss, the Administrator may, after notice and opportunity for hearing, impose on the insurance claims adjuster a civil penalty of not more than $1,000.
(2) Deposit
Notwithstanding
(h) Rule of construction
Nothing in this subsection 3 shall be construed to require the Administrator to make any payment under the national flood insurance program, or an insurance company that issues a standard flood insurance policy under the national flood insurance program to make any payment, for an indeterminate loss based upon post-storm assessment, the COASTAL Formula, or any other loss allocation or post-storm assessment arising under the laws or ordinances of any State.
(i) Applicability
Subsection (c) shall apply with respect to an indeterminate loss associated with a named storm that occurs 60 days after publication of the COASTAL Formula in the Federal Register as required by subsection (b)(1).
(j) Rule of Construction
Nothing in this subsection 3 shall be construed to negate, set aside, or void any policy limit, including any loss limitation, set forth in a standard insurance policy.
(k) Rule of construction
Nothing in this section shall be construed to create a cause of action under this chapter.
(
Editorial Notes
Amendments
2020—Subsec. (a)(3).
Subsec. (a)(5).
Subsec. (b)(1).
Subsec. (b)(2)(B).
Subsec. (c)(3)(A)(i).
Subsec. (d).
Subsec. (h).
Subsec. (i).
Subsec. (k).
1 So in original. Probably should be capitalized.
2 So in original. Probably should be "paragraphs".
3 So in original. Probably should be "this section".
Part B—Government Program With Industry Assistance
§4071. Federal operation of program; determination by Administrator; fiscal agents; report to Congress
(a) If at any time, after consultation with representatives of the insurance industry, the Administrator determines that operation of the flood insurance program as provided under part A cannot be carried out, or that such operation, in itself, would be assisted materially by the Federal Government's assumption, in whole or in part, of the operational responsibility for flood insurance under this chapter (on a temporary or other basis) he shall promptly undertake any necessary arrangements to carry out the program of flood insurance authorized under subchapter I through the facilities of the Federal Government, utilizing, for purposes of providing flood insurance coverage, either—
(1) insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations, as fiscal agents of the United States,
(2) such other officers and employees of any executive agency (as defined in
(3) both the alternatives specified in paragraphs (1) and (2).
(b) Upon making the determination referred to in subsection (a), the Administrator shall make a report to the Congress and, at the same time, to the private insurance companies participating in the National Flood Insurance Program pursuant to
(1) state the reason for such determinations,
(2) be supported by pertinent findings,
(3) indicate the extent to which it is anticipated that the insurance industry will be utilized in providing flood insurance coverage under the program, and
(4) contain such recommendations as the Administrator deems advisable.
The Administrator shall not implement the program of flood insurance authorized under subchapter I through the facilities of the Federal Government until 9 months after the date of submission of the report under this subsection unless it would be impossible to continue to effectively carry out the National Flood Insurance Program operations during this time.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—
1989—Subsec. (b).
"(1) state the reasons for such determination,
"(2) be supported by pertinent findings,
"(3) indicate the extent to which it is anticipated that the insurance industry will be utilized in providing flood insurance coverage under the program, and
"(4) contain such recommendations as the Director deems advisable."
1983—Subsec. (a).
Subsec. (a)(2).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4072. Adjustment and payment of claims; judicial review; limitations; jurisdiction
In the event the program is carried out as provided in
(
Editorial Notes
Amendments
2012—
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Part C—General Provisions
§4081. Services by insurance industry
(a) Contracting for services and facilities
In administering the flood insurance program under this subchapter, the Administrator is authorized to enter into any contracts, agreements, or other appropriate arrangements which may, from time to time, be necessary for the purpose of utilizing, on such terms and conditions as may be agreed upon, the facilities and services of any insurance companies or other insurers, insurance agents and brokers, or insurance adjustment organizations; and such contracts, agreements, or arrangements may include provision for payment of applicable operating costs and allowances for such facilities and services as set forth in the schedules prescribed under
(b) Certain laws inapplicable to contracting
Any such contracts, agreements, or other arrangements may be entered into without regard to the provisions of
(c) Hold harmless
The Administrator of the Federal Emergency Management Agency shall hold any agent or broker selling or undertaking to sell flood insurance under this chapter harmless from any judgment for damages against such agent or broker as a result of any court action by a policyholder or applicant arising out of an error or omission on the part of the Federal Emergency Management Agency, and shall provide any such agent or broker with indemnification, including court costs and reasonable attorney fees, arising out of and caused by an error or omission on the part of the Federal Emergency Management Agency and its contractors. The Administrator of the Federal Emergency Management Agency may not hold harmless or indemnify an agent or broker for his or her error or omission.
(d) FEMA authority on transfer of policies
Notwithstanding any other provision of this chapter, the Administrator may, at the discretion of the Administrator, refuse to accept the transfer of the administration of policies for coverage under the flood insurance program under this chapter that are written and administered by any insurance company or other insurer, or any insurance agent or broker.
(e) Risk transfer
The Administrator may secure reinsurance of coverage provided by the flood insurance program from the private reinsurance and capital markets at rates and on terms determined by the Administrator to be reasonable and appropriate, in an amount sufficient to maintain the ability of the program to pay claims.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (c) and (d), was in the original a reference to "this title" meaning title XIII of
Codification
In subsec. (b), "
Amendments
2022—Subsec. (b).
2014—Subsec. (e).
2012—Subsecs. (a), (c).
Subsec. (d).
1994—Subsec. (b).
1983—Subsec. (a).
1981—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1981 Amendment
Amendment by
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Oversight and Expense Reimbursements of Insurance Companies
"(a)
"(1)
"(2)
"(3)
"(4)
"(b)
"(1) flood insurance expense data produced by the property and casualty insurance companies;
"(2) flood insurance expense data collected by the National Association of Insurance Commissioners; or
"(3) a combination of the methodologies described in paragraphs (1) and (2).
"(c)
"(d)
"(e)
"(1) the specific rationale and purposes of such rule;
"(2) the reasons for the adoption of the policies contained in such rule; and
"(3) the degree to which such rule accurately represents the true operating costs and expenses of property and casualty insurance companies participating in the Write Your Own program.
"(f)
"(1)
"(A) conduct a study on the efficacy, adequacy, and sufficiency of the final rules issued pursuant to subsection (d); and
"(B) report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the findings of the study conducted under subparagraph (A).
"(2)
"(A) may use any previous findings, studies, or reports that the Comptroller General previously completed on the Write Your Own program;
"(B) shall determine if—
"(i) the final rule issued pursuant to subsection (d) allows the Federal Emergency Management Agency to access adequate information regarding the actual expenses of property and casualty insurance companies participating in the Write Your Own program; and
"(ii) the actual reimbursements paid out under the final rule issued pursuant to subsection (d) accurately reflect the expenses reported by property and casualty insurance companies participating in the Write Your Own program, including the standard business costs and operating expenses of such companies; and
"(C) shall analyze the effect of the final rule issued pursuant to subsection (d) on the level of participation of property and casualty insurers in the Write Your Own program."
[For definitions of terms used in section 100224 of
§4082. Use of insurance pool, companies, or other private organizations for certain payments
(a) Authorization to enter into contracts for certain responsibilities
In order to provide for maximum efficiency in the administration of the flood insurance program and in order to facilitate the expeditious payment of any Federal funds under such program, the Administrator may enter into contracts with pool formed or otherwise created under
(1) Estimating and later determining any amounts of payments to be made.
(2) Receiving from the Administrator, disbursing, and accounting for funds in making such payments.
(3) Making such audits of the records of any insurance company or other insurer, insurance agent or broker, or insurance adjustment organization as may be necessary to assure that proper payments are made.
(4) Placing reinsurance coverage on insurance provided by such program.
(5) Otherwise assisting in such manner as the contract may provide to further the purposes of this chapter.
(b) Terms and conditions of contract
Any contract with the pool or an insurance company or other private organization under this section may contain such terms and conditions as the Administrator finds necessary or appropriate for carrying out responsibilities under subsection (a), and may provide for payment of any costs which the Administrator determines are incidental to carrying out such responsibilities which are covered by the contract.
(c) Competitive bidding
Any contract entered into under subsection (a) may be entered into without regard to
(d) Findings of Administrator
No contract may be entered into under this section unless the Administrator finds that the pool, company, or organization will perform its obligations under the contract efficiently and effectively, and will meet such requirements as to financial responsibility, legal authority, and other matters as he finds pertinent.
(e) Bond; liability of certifying officers and disbursing officers
(1) Any such contract may require the pool, company, or organization or any of its officers or employees certifying payments or disbursing funds pursuant to the contract, or otherwise participating in carrying out the contract, to give surety bond to the United States in such amount as the Administrator may deem appropriate.
(2) No individual designated pursuant to a contract under this section to certify payments shall, in the absence of gross negligence or intent to defraud the United States, be liable with respect to any payment certified by him under this section.
(3) No officer disbursing funds shall in the absence of gross negligence or intent to defraud the United States, be liable with respect to any payment by him under this section if it was based upon a voucher signed by an individual designated to certify payments as provided in paragraph (2) of this subsection.
(f) Term of contract; renewals; termination
Any contract entered into under this section shall be for a term of one year, and may be made automatically renewable from term to term in the absence of notice by either party of an intention to terminate at the end of the current term; except that the Administrator may terminate any such contract at any time (after reasonable notice to the pool, company, or organization involved) if he finds that the pool, company, or organization has failed substantially to carry out the contract, or is carrying out the contract in a manner inconsistent with the efficient and effective administration of the flood insurance program authorized under this chapter.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a)(5) and (f), was in the original a reference to "this title" meaning title XIII of
Codification
In subsec. (c), "
Amendments
2012—Subsec. (a).
Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(4).
Subsec. (a)(5).
Subsecs. (b), (d), (e)(1), (f).
1983—Subsecs. (a), (b), (d), (e)(1), (f).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4083. Settlement of claims; arbitration
(a) The Administrator is authorized to make final settlement of any claims or demands which may arise as a result of any financial transactions which he is authorized to carry out under this subchapter, and may, to assist him in making any such settlement, refer any disputes relating to such claims or demands to arbitration, with the consent of the parties concerned.
(b) Such arbitration shall be advisory in nature, and any award, decision, or recommendation which may be made shall become final only upon the approval of the Administrator.
(
Editorial Notes
Amendments
2012—
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4084. Records and audits
(a) The flood insurance pool formed or otherwise created under part A of this subchapter, and any insurance company or other private organization executing any contract, agreement, or other appropriate arrangement with the Administrator under part B of this subchapter or this part, shall keep such records as the Administrator shall prescribe, including records which fully disclose the total costs of the program undertaken or the services being rendered, and such other records as will facilitate an effective audit.
(b) The Administrator and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of the pool and any such insurance company or other private organization that are pertinent to the costs of the program undertaken or the services being rendered.
(
Editorial Notes
Amendments
2012—
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
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
The Administrator is authorized to consult with, receive information from, and enter into any agreements or other arrangements with the Secretaries of the Army, the Interior, Agriculture, and Commerce, the Tennessee Valley Authority, and the heads of other Federal departments or agencies, on a reimbursement basis, or with the head of any State or local agency, or enter into contracts with any persons or private firms, in order that he may—
(1) identify and publish information with respect to all flood plain areas, including coastal areas located in the United States, which has special flood hazards, within five years following August 1, 1968, and
(2) establish or update flood-risk zone data in all such areas, and make estimates with respect to the rates of probable flood caused loss for the various flood risk zones for each of these areas until the date specified in
(b) Accelerated identification of flood-risk zones; authority of Administrator: grants, technical assistance, transactions, and payments
The Administrator is directed to accelerate the identification of risk zones within flood-prone and mudslide-prone areas, as provided by subsection (a)(2) of this section, in order to make known the degree of hazard within each such zone at the earliest possible date. To accomplish this objective, the Administrator is authorized, without regard to subsections (a) and (b) of
(c) Priority in allocation of manpower and other available resources for identification and mapping of flood hazard areas and flood-risk zones
The Secretary of Defense (through the Army Corps of Engineers), the Secretary of the Interior (through the United States Geological Survey), the Secretary of Agriculture (through the Soil Conservation Service), the Secretary of Commerce (through the National Oceanic and Atmospheric Administration), the head of the Tennessee Valley Authority, and the heads of all other Federal agencies engaged in the identification or delineation of flood-risk zones within the several States shall, in consultation with the Administrator, give the highest practicable priority in the allocation of available manpower and other available resources to the identification and mapping of flood hazard areas and flood-risk zones, in order to assist the Administrator to meet the deadline established by this section.
(d) Plan for bringing communities with flood-risk zones into full program status
The Administrator shall, not later than September 30, 1984, submit to the Congress a plan for bringing all communities containing flood-risk zones into full program status by September 30, 1987.
(e) Review of flood maps
Once during each 5-year period (the 1st such period beginning on September 23, 1994) or more often as the Administrator determines necessary, the Administrator shall assess the need to revise and update all floodplain areas and flood risk zones identified, delineated, or established under this section, based on an analysis of all natural hazards affecting flood risks.
(f) Updating flood maps
The Administrator shall revise and update any floodplain areas and flood-risk zones—
(1) upon the determination of the Administrator, according to the assessment under subsection (e), that revision and updating are necessary for the areas and zones; or
(2) upon the request from any State or local government stating that specific floodplain areas or flood-risk zones in the State or locality need revision or updating, if sufficient technical data justifying the request is submitted and the unit of government making the request agrees to provide funds in an amount determined by the Administrator.
(g) Availability of flood maps
To promote compliance with the requirements of this chapter, the Administrator shall make flood insurance rate maps and related information available free of charge to the Federal entities for lending regulation, Federal agency lenders, State agencies directly responsible for coordinating the national flood insurance program, and appropriate representatives of communities participating in the national flood insurance program, and at a reasonable cost to all other persons. Any receipts resulting from this subsection shall be deposited in the National Flood Insurance Fund, pursuant to
(h) Notification of flood map changes
The Administrator shall cause notice to be published in the Federal Register (or shall provide notice by another comparable method) of any change to flood insurance map panels and any change to flood insurance map panels issued in the form of a letter of map amendment or a letter of map revision. Such notice shall be published or otherwise provided not later than 30 days after the map change or revision becomes effective. Notice by any method other than publication in the Federal Register shall include all pertinent information, provide for regular and frequent distribution, and be at least as accessible to map users as notice in the Federal Register. All notices under this subsection shall include information on how to obtain copies of the changes or revisions.
(i) Compendia of flood map changes
Every 6 months, the Administrator shall publish separately in their entirety within a compendium, all changes and revisions to flood insurance map panels and all letters of map amendment and letters of map revision for which notice was published in the Federal Register or otherwise provided during the preceding 6 months. The Administrator shall make such compendia available, free of charge, to Federal entities for lending regulation, Federal agency lenders, and States and communities participating in the national flood insurance program pursuant to
(j) Provision of information
In the implementation of revisions to and updates of flood insurance rate maps, the Administrator shall share information, to the extent appropriate, with the Under Secretary of Commerce for Oceans and Atmosphere and representatives from State coastal zone management programs.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (g), was in the original a reference to "this title" meaning title XIII of
Codification
In subsec. (b), "
Amendments
2012—
Subsec. (f)(2).
1994—Subsecs. (e) to (j).
1989—Subsec. (a)(2).
1988—Subsec. (a)(2).
1987—Subsec. (a)(2).
1986—Subsec. (a)(2).
1985—Subsec. (a)(2).
1984—Subsec. (b).
1983—Subsec. (a).
Subsec. (a)(2).
Subsecs. (b), (c).
Subsec. (d).
1973—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Flood Protection Structure Accreditation Task Force
"(a)
"(1) the term 'flood protection structure accreditation requirements' means the requirements established under section 65.10 of title 44, Code of Federal Regulations, for levee systems to be recognized on maps created for purposes of the National Flood Insurance Program;
"(2) the term 'National Committee on Levee Safety' means the Committee on Levee Safety established under section 9003 of the National Levee Safety Act of 2007 (
"(3) the term 'task force' means the Flood Protection Structure Accreditation Task Force established under subsection (b).
"(b)
"(1)
"(2)
"(A)
"(i) information and data collected for either purpose can be used interchangeably; and
"(ii) information and data collected by or for the Corps of Engineers under the Inspection of Completed Works Program is sufficient to satisfy the flood protection structure accreditation requirements.
"(B)
"(3)
"(A) the information and data collected by or for the Corps of Engineers under the Inspection of Completed Works Program; and
"(B) the flood protection structure accreditation requirements.
"(4)
"(c)
"(d)
"(1) an interim report, not later than 180 days after the date of enactment of this Act [July 6, 2012]; and
"(2) a final report, not later than 1 year after the date of enactment of this Act.
"(e)
[For definitions of terms used in section 100226 of
Geospatial Digital Flood Hazard Data
Reiteration of FEMA Responsibility to Map Mudslides
Technical Mapping Advisory Council
§4101a. Technical Mapping Advisory Council
(a) Establishment
There is established a council to be known as the Technical Mapping Advisory Council (in this section referred to as the "Council").
(b) Membership
(1) In general
The Council shall consist of—
(A) the Administrator (or the designee thereof);
(B) the Secretary of the Interior (or the designee thereof);
(C) the Secretary of Agriculture (or the designee thereof);
(D) the Under Secretary of Commerce for Oceans and Atmosphere (or the designee thereof); and
(E) 16 additional members appointed by the Administrator or the designee of the Administrator, who shall be—
(i) a member of a recognized professional surveying association or organization;
(ii) a member of a recognized professional mapping association or organization;
(iii) a member of a recognized professional engineering association or organization;
(iv) a member of a recognized professional association or organization representing flood hazard determination firms;
(v) a representative of the United States Geological Survey;
(vi) a representative of a recognized professional association or organization representing State geographic information;
(vii) a representative of State national flood insurance coordination offices;
(viii) a representative of the Corps of Engineers;
(ix) a member of a recognized regional flood and storm water management organization;
(x) 2 representatives of different State government agencies that have entered into cooperating technical partnerships with the Administrator and have demonstrated the capability to produce flood insurance rate maps;
(xi) 2 representatives of different local government agencies that have entered into cooperating technical partnerships with the Administrator and have demonstrated the capability to produce flood insurance maps;
(xii) a member of a recognized floodplain management association or organization;
(xiii) a member of a recognized risk management association or organization; and
(xiv) a State mitigation officer.
(2) Qualifications
Members of the Council shall be appointed based on their demonstrated knowledge and competence regarding surveying, cartography, remote sensing, geographic information systems, or the technical aspects of preparing and using flood insurance rate maps. In appointing members under paragraph (1)(E), the Administrator shall, to the maximum extent practicable, ensure that the membership of the Council has a balance of Federal, State, local, tribal, and private members, and includes geographic diversity, including representation from areas with coastline on the Gulf of Mexico and other States containing areas identified by the Administrator as at high risk for flooding or as areas having special flood hazards.
(c) Duties
The Council shall—
(1) recommend to the Administrator how to improve in a cost-effective manner the—
(A) accuracy, general quality, ease of use, and distribution and dissemination of flood insurance rate maps and risk data; and
(B) performance metrics and milestones required to effectively and efficiently map flood risk areas in the United States;
(2) recommend to the Administrator mapping standards and guidelines for—
(A) flood insurance rate maps; and
(B) data accuracy, data quality, data currency, and data eligibility;
(3) recommend to the Administrator how to maintain, on an ongoing basis, flood insurance rate maps and flood risk identification;
(4) recommend procedures for delegating mapping activities to State and local mapping partners;
(5) recommend to the Administrator and other Federal agencies participating in the Council—
(A) methods for improving interagency and intergovernmental coordination on flood mapping and flood risk determination; and
(B) a funding strategy to leverage and coordinate budgets and expenditures across Federal agencies; and
(6) submit an annual report to the Administrator that contains—
(A) a description of the activities of the Council;
(B) an evaluation of the status and performance of flood insurance rate maps and mapping activities to revise and update flood insurance rate maps, as required under
(C) a summary of recommendations made by the Council to the Administrator.
(d) Future conditions risk assessment and modeling report
(1) In general
The Council shall consult with scientists and technical experts, other Federal agencies, States, and local communities to—
(A) develop recommendations on how to—
(i) ensure that flood insurance rate maps incorporate the best available climate science to assess flood risks; and
(ii) ensure that the Federal Emergency Management Agency uses the best available methodology to consider the impact of—
(I) the rise in the sea level; and
(II) future development on flood risk; and
(B) not later than 1 year after July 6, 2012, prepare written recommendations in a future conditions risk assessment and modeling report and to submit such recommendations to the Administrator.
(2) Responsibility of the Administrator
The Administrator, as part of the ongoing program to review and update National Flood Insurance Program rate maps under
(e) Chairperson
The members of the Council shall elect 1 member to serve as the chairperson of the Council (in this section referred to as the "Chairperson").
(f) Coordination
To ensure that the Council's recommendations are consistent, to the maximum extent practicable, with national digital spatial data collection and management standards, the Chairperson shall consult with the Chairperson of the Federal Geographic Data Committee (established pursuant to Office of Management and Budget Circular A–16).
(g) Compensation
Members of the Council shall receive no additional compensation by reason of their service on the Council.
(h) Meetings and actions
(1) In general
The Council shall meet not less frequently than twice each year at the request of the Chairperson or a majority of its members, and may take action by a vote of the majority of the members.
(2) Initial meeting
The Administrator, or a person designated by the Administrator, shall request and coordinate the initial meeting of the Council.
(i) Officers
The Chairperson may appoint officers to assist in carrying out the duties of the Council under subsection (c).
(j) Staff
(1) Staff of FEMA
Upon the request of the Chairperson, the Administrator may detail, on a nonreimbursable basis, personnel of the Federal Emergency Management Agency to assist the Council in carrying out its duties.
(2) Staff of other Federal agencies
Upon request of the Chairperson, any other Federal agency that is a member of the Council may detail, on a nonreimbursable basis, personnel to assist the Council in carrying out its duties.
(k) Powers
In carrying out this section, the Council may hold hearings, receive evidence and assistance, provide information, and conduct research, as it considers appropriate.
(l) Report to Congress
The Administrator, on an annual basis, shall report to the Committee on Banking, Housing, and Urban Affairs of the Senate, the Committee on Financial Services of the House of Representatives, and the Office of Management and Budget on the—
(1) recommendations made by the Council;
(2) actions taken by the Federal Emergency Management Agency to address such recommendations to improve flood insurance rate maps and flood risk data; and
(3) any recommendations made by the Council that have been deferred or not acted upon, together with an explanatory statement.
(
Editorial Notes
Codification
Section was enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012, and also as part of the Moving Ahead for Progress in the 21st Century Act, also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Definitions
For definitions of terms used in this section, see
§4101b. National Flood Mapping Program
(a) Reviewing, updating, and maintaining maps
The Administrator, in coordination with the Technical Mapping Advisory Council established under
(b) Mapping
(1) In general
In carrying out the program established under subsection (a), the Administrator shall—
(A) identify, review, update, maintain, and publish National Flood Insurance Program rate maps with respect to—
(i) all populated areas and areas of possible population growth located within the 100-year floodplain;
(ii) all populated areas and areas of possible population growth located within the 500-year floodplain;
(iii) areas of residual risk, including areas that are protected by levees, dams, and other flood control structures;
(iv) areas that could be inundated as a result of the failure of a levee, dam, or other flood control structure;
(v) areas that are protected by non-structural flood mitigation features; and
(vi) the level of protection provided by flood control structures and by non-structural flood mitigation features;
(B) establish or update flood-risk zone data in all such areas, and make estimates with respect to the rates of probable flood caused loss for the various flood risk zones for each such area; and
(C) use, in identifying, reviewing, updating, maintaining, or publishing any National Flood Insurance Program rate map required under this section or under the National Flood Insurance Act of 1968 (
(2) Mapping elements
Each map updated under this section shall—
(A) assess the accuracy of current ground elevation data used for hydrologic and hydraulic modeling of flooding sources and mapping of the flood hazard and wherever necessary acquire new ground elevation data utilizing the most up-to-date geospatial technologies in accordance with guidelines and specifications of the Federal Emergency Management Agency; and
(B) develop National Flood Insurance Program flood data on a watershed basis—
(i) to provide the most technically effective and efficient studies and hydrologic and hydraulic modeling; and
(ii) to eliminate, to the maximum extent possible, discrepancies in base flood elevations between adjacent political subdivisions.
(3) Other inclusions
In updating maps under this section, the Administrator shall include—
(A) any relevant information on coastal inundation from—
(i) an applicable inundation map of the Corps of Engineers; and
(ii) data of the National Oceanic and Atmospheric Administration relating to storm surge modeling;
(B) any relevant information of the United States Geological Survey on stream flows, watershed characteristics, and topography that is useful in the identification of flood hazard areas, as determined by the Administrator;
(C) any relevant information on land subsidence, coastal erosion areas, changing lake levels, and other flood-related hazards;
(D) any relevant information or data of the National Oceanic and Atmospheric Administration and the United States Geological Survey relating to the best available science regarding future changes in sea levels, precipitation, and intensity of hurricanes; and
(E) any other relevant information as may be recommended by the Technical Mapping Advisory Committee.
(c) Standards
In updating and maintaining maps under this section, the Administrator shall—
(1) establish standards to—
(A) ensure that maps are adequate for—
(i) flood risk determinations; and
(ii) use by State and local governments in managing development to reduce the risk of flooding; and
(B) facilitate identification and use of consistent methods of data collection and analysis by the Administrator, in conjunction with State and local governments, in developing maps for communities with similar flood risks, as determined by the Administrator; and
(2) publish maps in a format that is—
(A) digital geospatial data compliant;
(B) compliant with the open publishing and data exchange standards established by the Open Geospatial Consortium; and
(C) aligned with official data defined by the National Geodetic Survey.
(d) Communication and outreach
(1) In general
The Administrator shall—
(A) before commencement of any mapping or map updating process, notify each community affected of the model or models that the Administrator plans to use in such process and provide an explanation of why such model or models are appropriate;
(B) provide each community affected a 30-day period beginning upon notification under subparagraph (A) to consult with the Administrator regarding the appropriateness, with respect to such community, of the mapping model or models to be used; provided that consultation by a community pursuant to this subparagraph shall not waive or otherwise affect any right of the community to appeal any flood hazard determinations;
(C) upon completion of the first Independent Data Submission, transmit a copy of such Submission to the affected community, provide the affected community a 30-day period during which the community may provide data to Administrator 1 that can be used to supplement or modify the existing data, and incorporate any data that is consistent with prevailing engineering principles;
(D) work with States, local communities, and property owners to identify areas and features described in subsection (b)(1)(A)(v);
(E) work to enhance communication and outreach to States, local communities, and property owners about the effects—
(i) of any potential changes to National Flood Insurance Program rate maps that may result from the mapping program required under this section; and
(ii) that any such changes may have on flood insurance purchase requirements;
(F) engage with local communities to enhance communication and outreach to the residents of such communities, including tenants (with regard to contents insurance), on the matters described under subparagraph (E);
(G) not less than 30 days before issuance of any preliminary map, notify the Senators for each State affected and each Member of the House of Representatives for each congressional district affected by the preliminary map in writing of—
(i) the estimated schedule for—
(I) community meetings regarding the preliminary map;
(II) publication of notices regarding the preliminary map in local newspapers; and
(III) the commencement of the appeals process regarding the map; and
(ii) the estimated number of homes and businesses that will be affected by changes contained in the preliminary map, including how many structures will be 2 that were not previously located in an area having special flood hazards will be located within such an area under the preliminary map; and
(H) upon the issuance of any proposed map and any notice of an opportunity to make an appeal relating to the proposed map, notify the Senators for each State affected and each Member of the House of Representatives for each congressional district affected by the proposed map of any action taken by the Administrator with respect to the proposed map or an appeal relating to the proposed map.
(2) Required activities
The communication and outreach activities required under paragraph (1) shall include—
(A) notifying property owners when their properties become included in, or when they are excluded from, an area covered by the mandatory flood insurance purchase requirement under
(B) educating property owners regarding the flood risk and reduction of this risk in their community, including the continued flood risks to areas that are no longer subject to the flood insurance mandatory purchase requirement;
(C) educating property owners regarding the benefits and costs of maintaining or acquiring flood insurance, including, where applicable, lower-cost preferred risk policies under the National Flood Insurance Act of 1968 (
(D) educating property owners about flood map revisions and the process available to such owners to appeal proposed changes in flood elevations through their community, including by notifying local radio and television stations; and
(E) encouraging property owners to maintain or acquire flood insurance coverage.
(e) Community remapping request
Upon the adoption by the Administrator of any recommendation by the Technical Mapping Advisory Council for reviewing, updating, or maintaining National Flood Insurance Program rate maps in accordance with this section, a community that believes that its flood insurance rates in effect prior to adoption would be affected by the adoption of such recommendation may submit a request for an update of its rate maps, which may be considered at the Administrator's sole discretion. The Administrator shall establish a protocol for the evaluation of such community map update requests.
(f) Authorization of appropriations
There is authorized to be appropriated to the Administrator to carry out this section $400,000,000 for each of fiscal years 2013 through 2017.
(
Editorial Notes
References in Text
The National Flood Insurance Act of 1968, referred to in subsecs. (b)(1)(C) and (d)(2)(C), is title XIII of
Codification
Section was enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012, and also as part of the Moving Ahead for Progress in the 21st Century Act, also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Amendments
2014—Subsec. (b)(1)(A)(v), (vi).
Subsec. (d)(1)(A).
Subsec. (d)(1)(B).
Subsec. (d)(1)(C).
Subsec. (d)(1)(D).
Subsec. (d)(1)(E), (F).
Subsec. (d)(1)(G).
Subsec. (d)(1)(H).
Statutory Notes and Related Subsidiaries
Definitions
For definitions of terms used in this section, see
1 So in original. Probably should be preceded by "the".
2 So in original. The words "will be" probably should not appear.
§4101c. Coordination
(a) Interagency budget crosscut and coordination report
(1) In general
The Secretary of Homeland Security, the Administrator, the Director of the Office of Management and Budget, and the heads of each Federal department or agency carrying out activities under
(2) Report
Not later than 30 days after the submission of the budget of the United States Government by the President to Congress, the Director of the Office of Management and Budget, in coordination with the Federal Emergency Management Agency, the United States Geological Survey, the National Oceanic and Atmospheric Administration, the Corps of Engineers, and other Federal agencies, as appropriate, shall submit to the appropriate authorizing and appropriating committees of the Senate and the House of Representatives an interagency budget crosscut and coordination report, certified by the Secretary or head of each such agency, that—
(A) contains an interagency budget crosscut report that displays relevant sections of the budget proposed for each of the Federal agencies working on flood risk determination data and digital elevation models, including any planned interagency or intra-agency transfers; and
(B) describes how the efforts aligned with such sections complement one another.
(b) Duties of the Administrator
In carrying out
(1) participate, pursuant to section 216 of the E–Government Act of 2002 (
(2) coordinate with, seek assistance and cooperation of, and provide a liaison to the Federal Geographic Data Committee pursuant to the Office of Management and Budget Circular A–16 and Executive Order 12906 (
(3) integrate with, leverage, and coordinate funding of, to the maximum extent practicable, the current flood mapping activities of each unit of State and local government;
(4) integrate with, leverage, and coordinate, to the maximum extent practicable, the current geospatial activities of other Federal agencies and units of State and local government; and
(5) develop a funding strategy to leverage and coordinate budgets and expenditures, and to maintain or establish joint funding and other agreement mechanisms with other Federal agencies and units of State and local government to share in the collection and utilization of geospatial data among all governmental users.
(
Editorial Notes
References in Text
Section 216 of the E–Government Act of 2002, referred to in subsec. (b)(1), is section 216 of
Executive Order 12906, referred to in subsec. (b)(2), is Ex. Ord. No. 12906, Apr. 11, 1994, 59 F.R. 17671, which is set out as a note under
Codification
Section was enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012, and also as part of the Moving Ahead for Progress in the 21st Century Act, also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Definitions
For definitions of terms used in this section, see
§4101d. Flood insurance rate map certification
The Administrator shall implement a flood mapping program for the National Flood Insurance Program, only after review by the Technical Mapping Advisory Council, that, when applied, results in technically credible flood hazard data in all areas where Flood Insurance Rate Maps are prepared or updated, shall certify in writing to the Congress when such a program has been implemented, and shall provide to the Congress the Technical Mapping Advisory Council review report.
(
Editorial Notes
Codification
Section was enacted as part of the Homeowner Flood Insurance Affordability Act of 2014, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Definitions
For definitions of terms used in this section, see
§4101e. Exemption from fees for certain map change requests
Notwithstanding any other provision of law, a requester shall be exempt from submitting a review or processing fee for a request for a flood insurance rate map change based on a habitat restoration project that is funded in whole or in part with Federal or State funds, including dam removal, culvert redesign or installation, or the installation of fish passage.
(
Editorial Notes
Codification
Section was enacted as part of the Homeowner Flood Insurance Affordability Act of 2014, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
§4102. Criteria for land management and use
(a) Studies and investigations
The Administrator is authorized to carry out studies and investigations, utilizing to the maximum extent practicable the existing facilities and services of other Federal departments or agencies, and State and local governmental agencies, and any other organizations, with respect to the adequacy of State and local measures in flood-prone areas as to land management and use, flood control, flood zoning, and flood damage prevention, and may enter into any contracts, agreements, or other appropriate arrangements to carry out such authority.
(b) Extent of studies and investigations
Such studies and investigations shall include, but not be limited to, laws, regulations, or ordinances relating to encroachments and obstructions on stream channels and floodways, the orderly development and use of flood plains of rivers or streams, floodway encroachment lines, and flood plain zoning, building codes, building permits, and subdivision or other building restrictions.
(c) Development of comprehensive criteria designed to encourage adoption of adequate State and local measures
On the basis of such studies and investigations, and such other information as he deems necessary, the Administrator shall from time to time develop comprehensive criteria designed to encourage, where necessary, the adoption of adequate State and local measures which, to the maximum extent feasible, will—
(1) constrict the development of land which is exposed to flood damage where appropriate,
(2) guide the development of proposed construction away from locations which are threatened by flood hazards,
(3) assist in reducing damage caused by floods, and
(4) otherwise improve the long-range land management and use of flood-prone areas,
and he shall work closely with and provide any necessary technical assistance to State, interstate, and local governmental agencies, to encourage the application of such criteria and the adoption and enforcement of such measures.
(d) Flood mitigation methods for buildings
The Administrator shall establish guidelines for property owners that—
(1) provide alternative methods of mitigation, other than building elevation, to reduce flood risk to residential buildings that cannot be elevated due to their structural characteristics, including—
(A) types of building materials; and
(B) types of floodproofing; and
(2) inform property owners about how the implementation of mitigation methods described in paragraph (1) may affect risk premium rates for flood insurance coverage under the National Flood Insurance Program.
(
Editorial Notes
Amendments
2014—Subsec. (d).
2012—Subsecs. (a), (c).
1983—Subsecs. (a), (c).
1969—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
Guidelines
Task Force on Natural and Beneficial Functions of the Floodplain
§4102a. Repealed. Pub. L. 112–141, div. F, title II, §100225(c), July 6, 2012, 126 Stat. 941
Section,
§4103. Repealed. Pub. L. 103–325, title V, §551(a), Sept. 23, 1994, 108 Stat. 2269
Section,
Statutory Notes and Related Subsidiaries
Savings Provision
Transition Phase
§4104. Flood elevation determinations
(a) Publication or notification of proposed flood elevation determinations
In establishing projected flood elevations and designating areas having special flood hazards for land use purposes with respect to any community pursuant to
(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
The Administrator shall publish notification of flood elevation determinations and designations of areas having special flood hazards in a prominent local newspaper at least twice during the ten-day period following notification to the local government. During the ninety-day period following the second publication, any owner or lessee of real property within the community who believes his property rights to be adversely affected by the Administrator's proposed determination may appeal such determination to the local government. The sole grounds for appeal shall be the possession of knowledge or information indicating that (1) the elevations being proposed by the Administrator with respect to an identified area having special flood hazards are scientifically or technically incorrect, or (2) the designation of an identified special flood hazard area is scientifically or technically incorrect.
(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 Administrator; filing of community action with Administrator
Appeals by private persons shall be made to the chief executive officer of the community, or to such agency as he shall publicly designate, and shall set forth the data that tend to negate or contradict the Administrator's finding in such form as the chief executive officer may specify. The community shall review and consolidate all such appeals and issue a written opinion stating whether the evidence presented is sufficient to justify an appeal on behalf of such persons by the community in its own name. Whether or not the community decides to appeal the Administrator's determination, copies of individual appeals shall be sent to the Administrator as they are received by the community, and the community's appeal or a copy of its decision not to appeal shall be filed with the Administrator not later than ninety days after the date of the second newspaper publication of the Administrator's notification.
(d) Administrative review of appeals by private persons; modification of proposed determinations; decision of Administrator: form and distribution
In the event the Administrator does not receive an appeal from the community within the ninety days provided, he shall consolidate and review on their own merits, in accordance with the procedures set forth in subsection (e), the appeals filed within the community by private persons and shall make such modifications of his proposed determinations as may be appropriate, taking into account the written opinion, if any, issued by the community in not supporting such appeals. The Administrator's decision shall be in written form, and copies thereof shall be sent both to the chief executive officer of the community and to each individual appellant.
(e) Administrative review of appeals by community; agencies for resolution of conflicting data; availability of flood insurance pending such resolution; time for determination of Administrator; 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
Upon appeal by any community, as provided by this section, the Administrator shall review and take fully into account any technical or scientific data submitted by the community that tend to negate or contradict the information upon which his proposed determination is based. The Administrator shall resolve such appeal by consultation with officials of the local government involved, by administrative hearing, or by submission of the conflicting data to the Scientific Resolution Panel provided for in
(f) Reimbursement of certain expenses
When, incident to any appeal under subsection (b) or (c) of this section, the owner or lessee of real property or the community, as the case may be, or, in the case of an appeal that is resolved by submission of conflicting data to the Scientific Resolution Panel provided for in
(g) Judicial review of final administrative determinations; venue; time for appeal; scope of review; good cause for stay of final determinations
Except as provided in
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (g), was in the original a reference to "this title" meaning title XIII of
Amendments
2014—Subsec. (f).
2012—Subsec. (a).
Subsec. (b).
Subsecs. (c), (d).
Subsec. (e).
Subsec. (f).
Subsec. (g).
1983—
1977—Subsecs. (f), (g).
Statutory Notes and Related Subsidiaries
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4104–1. Scientific Resolution Panel
(a) Availability
(1) In general
Pursuant to the authority provided under
(A) that has—
(i) filed a timely map appeal in accordance with
(ii) completed 60 days of consultation with the Federal Emergency Management Agency on the appeal; and
(iii) not allowed more than 120 days, or such longer period as may be provided by the Administrator by waiver, to pass since the end of the appeal period; or
(B) that has received an unsatisfactory ruling under the map revision process established pursuant to
(2) Appeals by owners and lessees
If a community and an owner or lessee of real property within the community appeal a proposed determination of a flood elevation under
(A) the owner or lessee shall submit scientific and technical data relating to the appeals to the Scientific Resolution Panel; and
(B) the Scientific Resolution Panel shall make a determination with respect to the appeals in accordance with subsection (c).
(3) Definition
For purposes of paragraph (1)(B), an "unsatisfactory ruling" means that a community—
(A) received a revised Flood Insurance Rate Map from the Federal Emergency Management Agency, via a Letter of Final Determination, after September 30, 2008, and prior to July 6, 2012;
(B) has subsequently applied for a Letter of Map Revision or Physical Map Revision with the Federal Emergency Management Agency; and
(C) has received an unfavorable ruling on their request for a map revision.
(b) Membership
The Scientific Resolution Panel made available under subsection (a) shall consist of 5 members with expertise that relates to the creation and study of flood hazard maps and flood insurance. The Scientific Resolution Panel may include representatives from Federal agencies not involved in the mapping study in question and from other impartial experts. Employees of the Federal Emergency Management Agency may not serve on the Scientific Resolution Panel.
(c) Determination
(1) In general
Following deliberations, and not later than 90 days after its formation, the Scientific Resolution Panel shall issue a determination of resolution of the dispute. Such determination shall set forth recommendations for the base flood elevation determination or the designation of an area having special flood hazards that shall be reflected in the Flood Insurance Rate Maps.
(2) Basis
The determination of the Scientific Resolution Panel shall be based on—
(A) data previously provided to the Administrator by the community, and, in the case of a dispute submitted under subsection (a)(2), an owner or lessee of real property in the community; and
(B) data provided by the Administrator.
(3) No alternative determinations permissible
The Scientific Resolution Panel—
(A) shall provide a determination of resolution of a dispute that—
(i) is either in favor of the Administrator or in favor of the community on each distinct element of the dispute; or
(ii) in the case of a dispute submitted under subsection (a)(2), is in favor of the Administrator, in favor of the community, or in favor of the owner or lessee of real property in the community on each distinct element of the dispute; and
(B) may not offer as a resolution any other alternative determination.
(4) Effect of determination
(A) Binding
The recommendations of the Scientific Resolution Panel shall be binding on all appellants and not subject to further judicial review unless the Administrator determines that implementing the determination of the panel would—
(i) pose a significant threat due to failure to identify a substantial risk of special flood hazards; or
(ii) violate applicable law.
(B) Written justification not to enforce
If the Administrator elects not to implement the determination of the Scientific Resolution Panel pursuant to subparagraph (A), then not later than 60 days after the issuance of the determination, the Administrator shall issue a written justification explaining such election.
(C) Appeal of determination not to enforce
If the Administrator elects not to implement the determination of the Scientific Resolution Panel pursuant to subparagraph (A), the community may appeal the determination of the Administrator as provided for under
(d) Maps used for insurance and mandatory purchase requirements
With respect to any community that has a dispute that is being considered by the Scientific Resolution Panel formed pursuant to this subsection, the Federal Emergency Management Agency shall ensure that for each such community that—
(1) the Flood Insurance Rate Map described in the most recently issued Letter of Final Determination shall be in force and effect with respect to such community; and
(2) flood insurance shall continue to be made available to the property owners and residents of the participating community.
(
§4104a. Notice requirements
(a) Notification of special flood hazards
(1) Regulated lending institutions
Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council) shall by regulation require regulated lending institutions, as a condition of making, increasing, extending, or renewing any loan secured by improved real estate or a mobile home that the regulated lending institution determines is located or is to be located in an area that has been identified by the Administrator under this chapter or the Flood Disaster Protection Act of 1973 as an area having special flood hazards, to notify the purchaser or lessee (or obtain satisfactory assurances that the seller or lessor has notified the purchaser or lessee) and the servicer of the loan of such special flood hazards, in writing, a reasonable period in advance of the signing of the purchase agreement, lease, or other documents involved in the transaction. The regulations shall also require that the regulated lending institution retain a record of the receipt of the notices by the purchaser or lessee and the servicer.
(2) Federal agency lenders
Each Federal agency lender shall by regulation require notification in the manner provided under paragraph (1) with respect to any loan that is made by the Federal agency lender and secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Administrator under this chapter or the Flood Disaster Protection Act of 1973 as an area having special flood hazards. Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under paragraph (1).
(3) Contents of notice
Written notification required under this subsection shall include—
(A) a warning, in a form to be established by the Administrator, stating that the building on the improved real estate securing the loan is located, or the mobile home securing the loan is or is to be located, in an area having special flood hazards;
(B) a description of the flood insurance purchase requirements under section 102(b) of the Flood Disaster Protection Act of 1973 [
(C) a statement that flood insurance coverage may be purchased under the national flood insurance program and is also available from private insurers, as required under section 102(b)(6) of the Flood Disaster Protection Act of 1973 (
(D) any other information that the Administrator considers necessary to carry out the purposes of the national flood insurance program.
(b) Notification of change of servicer
(1) Lending institutions
Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council) shall by regulation require regulated lending institutions, in connection with the making, increasing, extending, renewing, selling, or transferring any loan described in subsection (a)(1), to notify the Administrator (or the designee of the Administrator) in writing during the term of the loan of the servicer of the loan. Such institutions shall also notify the Administrator (or such designee) of any change in the servicer of the loan, not later than 60 days after the effective date of such change. The regulations under this subsection shall provide that upon any change in the servicing of a loan, the duty to provide notification under this subsection shall transfer to the transferee servicer of the loan.
(2) Federal agency lenders
Each Federal agency lender shall by regulation provide for notification in the manner provided under paragraph (1) with respect to any loan described in subsection (a)(1) that is made by the Federal agency lender. Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under paragraph (1) of this subsection.
(c) Notification of expiration of insurance
The Administrator (or the designee of the Administrator) shall, not less than 45 days before the expiration of any contract for flood insurance under this chapter, issue notice of such expiration by first class mail to the owner of the property covered by the contract, the servicer of any loan secured by the property covered by the contract, and (if known to the Administrator) the owner of the loan.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a)(1), (2) and (c), was in the original a reference to "this title" meaning title XIII of
The Flood Disaster Protection Act of 1973, referred to in subsec. (a)(1), (2), is
Amendments
2012—Subsec. (a).
Subsec. (a)(3)(C).
Subsecs. (b)(1), (c).
1994—
1983—
Statutory Notes and Related Subsidiaries
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4104b. Standard hazard determination forms
(a) Development
The Administrator, in consultation with representatives of the mortgage and lending industry, the Federal entities for lending regulation, the Federal agency lenders, and any other appropriate individuals, shall develop a standard form for determining, in the case of a loan secured by improved real estate or a mobile home, whether the building or mobile home is located in an area identified by the Administrator as an area having special flood hazards and in which flood insurance under this chapter is available. The form shall be established by regulations issued not later than 270 days after September 23, 1994.
(b) Design and contents
(1) Purpose
The form under subsection (a) shall be designed to facilitate compliance with the flood insurance purchase requirements of this chapter.
(2) Contents
The form shall require identification of the type of flood-risk zone in which the building or mobile home is located, the complete map and panel numbers for the improved real estate or property on which the mobile home is located, the community identification number and community participation status (for purposes of the national flood insurance program) of the community in which the improved real estate or such property is located, and the date of the map used for the determination, with respect to flood hazard information on file with the Administrator. If the building or mobile home is not located in an area having special flood hazards the form shall require a statement to such effect and shall indicate the complete map and panel numbers of the improved real estate or property on which the mobile home is located. If the complete map and panel numbers are not available because the building or mobile home is not located in a community that is participating in the national flood insurance program or because no map exists for the relevant area, the form shall require a statement to such effect. The form shall provide for inclusion or attachment of any relevant documents indicating revisions or amendments to maps.
(c) Required use
The Federal entities for lending regulation shall by regulation require the use of the form under this section by regulated lending institutions. Each Federal agency lender shall by regulation provide for the use of the form with respect to any loan made by such Federal agency lender. The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association shall require the use of the form with respect to any loan purchased by such entities. A lender or other person may comply with the requirement under this subsection by using the form in a printed, computerized, or electronic manner.
(d) Guarantees regarding information
In providing information regarding special flood hazards on the form developed under this section, any lender (or other person required to use the form) who makes, increases, extends, or renews a loan secured by improved real estate or a mobile home may provide for the acquisition or determination of such information to be made by a person other than such lender (or other person), only to the extent such person guarantees the accuracy of the information.
(e) Reliance on previous determination
Any person increasing, extending, renewing, or purchasing a loan secured by improved real estate or a mobile home may rely on a previous determination of whether the building or mobile home is located in an area having special flood hazards (and shall not be liable for any error in such previous determination), if the previous determination was made not more than 7 years before the date of the transaction and the basis for the previous determination has been set forth on a form under this section, unless—
(1) map revisions or updates pursuant to
(2) the person contacts the Administrator to determine when the most recent map revisions or updates affecting such property occurred and such revisions and updates have occurred after such previous determination.
(f) Effective date
The regulations under this section requiring use of the form established pursuant to this section shall be issued together with the regulations required under subsection (a) and shall take effect upon the expiration of the 180-day period beginning on such issuance.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a) and (b)(1), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—Subsecs. (a), (b)(2), (e)(2).
Statutory Notes and Related Subsidiaries
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
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 former section 313(1) and
§4104c. Mitigation assistance
(a) Authority
The Administrator shall carry out a program to provide financial assistance to States and communities, using amounts made available from the National Flood Mitigation Fund under
(1) to States and communities in the form of grants under this section for carrying out mitigation activities;
(2) to States and communities in the form of grants under this section for carrying out mitigation activities that reduce flood damage to severe repetitive loss structures; and
(3) to property owners in the form of direct grants under this section for carrying out mitigation activities that reduce flood damage to individual structures for which 2 or more claim payments for losses have been made under flood insurance coverage under this chapter if the Administrator, after consultation with the State and community, determines that neither the State nor community in which such a structure is located has the capacity to manage such grants.
(b) Eligibility for mitigation assistance
To be eligible to receive financial assistance under this section for mitigation activities, a State or community shall develop, and have approved by the Administrator, a flood risk mitigation plan (in this section referred to as a "mitigation plan"), that describes the mitigation activities to be carried out with assistance provided under this section, is consistent with the criteria established by the Administrator under
(c) Eligible mitigation activities
(1) Requirement of consistency with approved mitigation plan
Amounts provided under this section may be used only for mitigation activities that are consistent with mitigation plans that are approved by the Administrator and identified under paragraph (4). The Administrator shall provide assistance under this section to the extent amounts are available in the National Flood Mitigation Fund pursuant to appropriation Acts, subject only to the absence of approvable mitigation plans.
(2) Requirements of technical feasibility, cost effectiveness, and interest of National Flood Insurance Fund
(A) In general
The Administrator may approve only mitigation activities that the Administrator determines—
(i) are technically feasible and cost-effective; or
(ii) will eliminate future payments from the National Flood Insurance Fund for severe repetitive loss structures through an acquisition or relocation activity.
(B) Considerations
In making a determination under subparagraph (A), the Administrator shall take into consideration recognized ancillary benefits.
(3) Eligible activities
Eligible activities under a mitigation plan may include—
(A) demolition or relocation of any structure located on land that is along the shore of a lake or other body of water and is certified by an appropriate State or local land use authority to be subject to imminent collapse or subsidence as a result of erosion or flooding;
(B) elevation, relocation, demolition, or floodproofing of structures (including public structures) located in areas having special flood hazards or other areas of flood risk;
(C) acquisition by States and communities of properties (including public properties) located in areas having special flood hazards or other areas of flood risk and properties substantially damaged by flood, for public use, as the Administrator determines is consistent with sound land management and use in such area;
(D) elevation, relocation, or floodproofing of utilities (including equipment that serves structures);
(E) minor physical mitigation efforts that do not duplicate the flood prevention activities of other Federal agencies and that lessen the frequency or severity of flooding and decrease predicted flood damages, which shall not include major flood control projects such as dikes, levees, seawalls, groins, and jetties unless the Administrator specifically determines in approving a mitigation plan that such activities are the most cost-effective mitigation activities for the National Flood Mitigation Fund;
(F) the development or update of mitigation plans by a State or community which meet the planning criteria established by the Administrator, except that the amount from grants under this section that may be used under this subparagraph may not exceed $50,000 for any mitigation plan of a State or $25,000 for any mitigation plan of a community;
(G) the provision of technical assistance by States to communities and individuals to conduct eligible mitigation activities;
(H) other activities that the Administrator considers appropriate and specifies in regulation;
(I) other mitigation activities not described in subparagraphs (A) through (G) or the regulations issued under subparagraph (H), that are described in the mitigation plan of a State or community; and
(J) without regard to the requirements under paragraphs (1) and (2) of subsection (d), and if the State applied for and was awarded at least $1,000,000 in grants available under this section in the prior fiscal year, technical assistance to communities to identify eligible activities, to develop grant applications, and to implement grants awarded under this section, not to exceed $50,000 to any 1 State in any fiscal year.
(4) Eligibility of demolition and rebuilding of properties
The Administrator shall consider as an eligible activity the demolition and rebuilding of properties to at least base flood elevation or greater, if required by the Administrator or if required by any State regulation or local ordinance, and in accordance with criteria established by the Administrator.
(d) Matching requirement
The Administrator may provide grants for eligible mitigation activities as follows:
(1) Severe repetitive loss structures
In the case of mitigation activities to severe repetitive loss structures, in an amount up to—
(A) 100 percent of all eligible costs, if the activities are approved under subsection (c)(2)(A)(i); or
(B) the expected savings to the National Flood Insurance Fund from expected avoided damages through acquisition or relocation activities, if the activities are approved under subsection (c)(2)(A)(ii).
(2) Repetitive loss structures
In the case of mitigation activities to repetitive loss structures, in an amount up to 90 percent of all eligible costs.
(3) Other mitigation activities
In the case of all other mitigation activities, in an amount up to 75 percent of all eligible costs.
(e) Recapture
(1) Noncompliance with plan
If the Administrator determines that a State or community that has received mitigation assistance under this section has not carried out the mitigation activities as set forth in the mitigation plan, the Administrator shall recapture any unexpended amounts and deposit the amounts in the National Flood Mitigation Fund under
(2) Failure to provide matching funds
If the Administrator determines that a State or community that has received mitigation assistance under this section has not provided matching funds in the amount required under subsection (d), the Administrator shall recapture any unexpended amounts of mitigation assistance exceeding the amount of such matching funds actually provided and deposit the amounts in the National Flood Mitigation Fund under
(f) Reports
Not later than 1 year after July 6, 2012, and biennially thereafter, the Administrator shall submit a report to the Congress describing the status of mitigation activities carried out with assistance provided under this section.
(g) Failure to make grant award within 5 years
For any application for a grant under this section for which the Administrator fails to make a grant award within 5 years of the date of the application, the grant application shall be considered to be denied and any funding amounts allocated for such grant applications shall remain in the National Flood Mitigation Fund under
(h) Definitions
For purposes of this section, the following definitions shall apply:
(1) Community
The term "community" means—
(A) a political subdivision that—
(i) has zoning and building code jurisdiction over a particular area having special flood hazards; and
(ii) is participating in the national flood insurance program; or
(B) a political subdivision of a State, or other authority, that is designated by political subdivisions, all of which meet the requirements of subparagraph (A), to administer grants for mitigation activities for such political subdivisions.
(2) Repetitive loss structure
The term "repetitive loss structure" has the meaning given such term in
(3) Severe repetitive loss structure
The term "severe repetitive loss structure" means a structure that—
(A) is covered under a contract for flood insurance made available under this chapter; and
(B) has incurred flood-related damage—
(i) for which 4 or more separate claims payments have been made under flood insurance coverage under this chapter, with the amount of each such claim exceeding $5,000, and with the cumulative amount of such claims payments exceeding $20,000; or
(ii) for which at least 2 separate claims payments have been made under such coverage, with the cumulative amount of such claims exceeding the value of the insured structure.
(
Editorial Notes
References in Text
This chapter, referred to in subs