Flood Insurance Reform Act of 2003 - (Sec. 3) Amends the National Flood Insurance Act of 1968 to extend the national flood insurance program's authorization through September 30, 2008.
(Sec. 4) Establishes a pilot program for mitigation of severe repetitive loss properties. Authorizes the Director of the Federal Emergency Management Agency (FEMA), subject to specified limitations, to provide financial assistance to States and communities for taking actions with respect to severe repetitive loss properties to mitigate flood damage to such properties and losses to the National Flood Insurance Fund from such properties.
Defines "severe repetitive loss property" (SRLP) to mean, in the case of a property consisting of one to four residences, property that is covered under a contract for flood insurance and that has incurred flood-related damage for which either: (1) four or more separate claims payments have been made under flood insurance coverage before the date of this Act's enactment, with the amount of each claim exceeding $5,000, and with the cumulative amount of such claims payments exceeding $20,000; (2) four or more separate flood insurance claims payments have been made after enactment of this Act, with the amount of each claim exceeding $3,000, and with the cumulative amount of such payments exceeding $15,000; or (3) at least two separate claims payments have been made under such coverage, with the cumulative amount of such claims exceeding the value of the property. Defines SRLP, in the case of a property consisting of five or more residences, to have such meaning as the Director shall by regulation provide.
Authorizes amounts provided to a State or community to be used only to for the following activities (eligible activities): (1) carry out mitigation activities that reduce flood damages to SRLPs, including elevation, reallocation, demolition, and floodproofing of structures, and minor physical localized flood control projects; and (2) purchase SRLPs, subject to specified requirements.
Prohibits the Director from providing assistance to a State or community in an amount exceeding three times the amount that the State or community certifies that it will contribute from non-Federal funds for carrying out the eligible activities to be funded with such assistance amounts. Authorizes the Director to waive such limitation for any State, and for the communities located in that State, regarding a year in which: (1) five percent or more of the total number of SRLPs in the United States are located in such State; and (2) the State submits a plan specifying how the State intends to reduce the number of SRLPs and the Director determines that the State has taken actions to reduce that number. Allows, however, the Director to waive such limitation only to the extent that the State or community involved is required to contribute, for each SRLP for which grant amounts are provided, not less than ten percent of the cost of the activities for such properties that are to be funded with grant amounts.
Subjects the program for providing assistance for eligible activities for SRLPs to the following limitations. Requires that: (1) the Director, in determining the properties for which to provide assistance to eligible activities, provide assistance for properties in the order that will result in the greatest amount of savings to the Fund in the shortest period of time; (2) the Director provide assistance in a manner that permits States and communities to make offers to owners of SRLPs to take eligible activities as soon as is practicable; and (3) the State or community, upon making an offer to provide assistance , notify each holder of a recorded interest on the property of such offer and eligible activity.
Permits a State or community to take action to purchase a severe repetitive loss property only if the following requirements are met: (1) the State or community enters into an agreement with the Director that provides assurances that the property purchased will be used in a manner consistent with requirements under the Robert T. Stafford Disaster Relief and Emergency Assistance Act requiring that the property be open to the public and maintained as open space, recreational land, or wetlands; and (2) the amount of purchase offer is not less than the greatest of the amount of the original purchase price of the property when purchased by the holder of the current flood insurance policy, the total amount owed at the time the offer to purchase is made under any loan secured by a recorded interest on the property, an amount equal to the fair market value of the property immediately before the most recent flood event affecting the property, or an amount equal to the replacement value of the property immediately before the most recent flood event affecting the property (but only in the case of a property for which the State or community taking action determines, and the Director concurs, that the fair market value of the property is less than the purchase price of a replacement primary residence that is of comparable value, functionally equivalent, and located in the same community or market area but not in an area having special flood hazards).
Provides for increased premiums in cases where the owner of an SRLP refuses an offer of eligible activities. Limits the increased premiums to an amount exceeding the applicable estimated risk premium rate for the area or subdivision. Permits any increase in chargeable premium rates to be carried out by adjusting any deductible charged in connection with flood insurance coverage for the property. Requires the Director, upon each renewal or modification of flood insurance coverage, to notify the owner that the offer is still open. Establishes as grounds for appealing increased premiums that: (1) as a result of such action, the owner will not be able to purchase a replacement primary residence of comparable value that is functionally equivalent; (2) as a result of such action, the preservation or maintenance of any prehistoric or historic district, site, building structure, or object included in, or eligible for inclusion in, the National Register of historic places will be interfered with, impaired, or disrupted; (3) the flooding that resulted in the flood insurance claims for the property resulted from significant actions by a third party in violation of law; or (4) in purchasing the property, the owner relied upon flood insurance rate maps of FEMA that were current at the time and did not indicate special flood hazards. Sets forth provisions regarding procedures, effect of a final determination, and costs.
Authorizes the Director to cancel the policy and deny new coverage, or refuse to renew the policy upon expiration and deny new coverage, upon determining that a fraudulent claim was made.
Authorizes the Director to use amounts from the Fund to provide assistance in each of FY 2004 through 2008, with a limitation. Prohibits the Director from providing assistance under the program after September 30, 2008.
(Sec. 5) Authorizes the Director to approve only mitigation plans that give priority for funding to repetitive insurance claims properties, or to such subsets of properties, as are in the best interest of the National Flood Insurance Fund.
Requires the Director, in providing grants for mitigation activities, to give first priority for funding to such properties or subsets of properties as the Director determines are in the best interest of the Fund.
Requires the Director to take appropriate actions to encourage and improve participation in the program of owners of properties, including owners that are not located in areas having special flood hazards but are located within the 100-year floodplain.
Limits funding to $40 million in each fiscal year from the Fund for repetitive insurance claims properties.
(Sec. 6) Authorizes the Director to provide funding for mitigation actions that reduce flood damages to individual properties for which one or more claim payments have been made under flood insurance coverage only if the Director determines that such activities: (1) are in the best interest of the Fund; and (2) cannot be funded under the repetitive insurance claims program because specified requirements are not being met by the State or community in which the property is located, or the State or community does not have the capacity to manage such activities.
Requires the Director, in determining the properties for which funding is to be provided, to consult with the States in which they are located and provide assistance in the order that will result in the greatest amount of savings to the Fund in the shortest period of time. Limits funding to $10 million in any fiscal year for mitigation actions under this section, with an exception.
(Sec. 7) Modifies provisions regarding chargeable premium rates for specified properties. Requires that the chargeable rate be not less than the applicable estimated risk premium rate for the area or subdivision with respect to any property leased from the Federal Government that the Director 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. Makes annual limitations on premium increases inapplicable to such properties.
(Sec. 8) Authorizes the Director to establish and maintain a database identifying by location and address all repetitive loss structures and SRLPs. Requires the Director to make the database available to the public in a format that may be searched electronically. Prohibits such a database from including information regarding ownership of properties.
(Sec. 9) Provides that 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 the National Flood Insurance Act and under the Flood Disaster Protection Act of 1973 if such: (1) mobile home was previously located on the site and was relocated from that site because of flooding that threatened or affected the site; and (2) replacement is conducted not later than the expiration of the 180-day period that begins upon the subsidence (in the area of that site) of the body of water that flooded to a level considered lower than flood levels.
(Sec. 10) Requires the Director to accelerate the identification of risk zones within flood- and mudslide- prone areas.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 253 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 253
To amend the National Flood Insurance Act of 1968 to reduce losses to
properties for which repetitive flood insurance claim payments have
been made.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 8, 2003
Mr. Bereuter (for himself and Mr. Blumenauer) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the National Flood Insurance Act of 1968 to reduce losses to
properties for which repetitive flood insurance claim payments have
been made.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Two Floods and You Are Out of the
Taxpayers' Pocket Act of 2003''.
SEC. 2. FLOOD LOSS REDUCTION FOR REPETITIVE FLOOD INSURANCE CLAIM
PROPERTIES.
Section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C.
4104c) is amended--
(1) in subsection (a), by inserting after the first
sentence the following new sentence: ``In awarding grants under
this section for mitigation activities, the Director shall give
priority to properties for which repetitive flood insurance
claim payments have been made.'';
(2) in the last sentence of subsection (c), by inserting
before the period the following: ``, and shall address
properties in the area for which repetitive flood insurance
claim payments have been made''; and
(3) in subsection (f), by striking paragraph (3) and
inserting the following new paragraph:
``(3) Waiver.--The Director may waive the dollar amount
limitations under paragraphs (1) and (2) for any State or
community--
``(A) for any 5-year period when a major disaster
or emergency declared by the President (pursuant to the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.)) as a result of
flood conditions is in effect with respect to areas in
the State or community; or
``(B) whenever the Director determines that the
State or community has properties for which repetitive
flood insurance claim payments have been made and that
waiver of the cost limitations is cost-effective and in
the best interests of the National Flood Insurance
Fund.''.
SEC. 3. NATIONAL FLOOD MITIGATION FUND.
(a) Credits.--Section 1367(b) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4104d(b)) is amended--
(1) by striking paragraph (1) and inserting the following
new paragraph:
``(1) amounts from the National Flood Insurance Fund, in
amounts not exceeding $70,000,000 in each of fiscal years 2004,
2005, 2006, and 2007, of which all amounts made available under
this paragraph in excess of $20,000,000 in each such fiscal
year shall be used only under section 1366 for mitigation
activities for properties for which repetitive flood insurance
claim payments have been made, such sums to remain available
until expended;'';
(2) in paragraph (2), by striking ``and'' at the end;
(3) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following new paragraph:
``(4) any amounts which may be appropriated for the Fund,
which are authorized to be appropriated in amounts not
exceeding $50,000,000 in each of fiscal years 2004, 2005, 2006,
and 2007, which amounts shall be used only under section 1366
for mitigation activities that will address properties for
which repetitive flood insurance claim payments have been made,
such sums to remain available until expended.''.
SEC. 4. CONSOLIDATION OF AUTHORIZATIONS.
(a) In General.--The National Flood Insurance Act of 1968 is
amended as follows:
(1) Borrowing authority.--In the first sentence of section
1309(a) (42 U.S.C. 4016(a)), by striking ``through September''
and all that follows through ``, and'' and inserting the
following: ``through the date specified in section 1319, and''.
(2) Authority for contracts.--In section 1319 (42 U.S.C.
4026), by striking ``after'' and all that follows and inserting
``after September 30, 2007.''.
(3) Emergency implementation.--In section 1336(a) (42
U.S.C. 4056(a)), by striking ``during the period'' and all that
follows through ``in accordance'' and inserting ``during the
period ending on the date specified in section 1319, in
accordance''.
(4) Authorization of appropriations for studies.--In
section 1376(c) (42 U.S.C. 4127(c)), by striking ``through''
and all that follows and inserting the following: ``through the
date specified in section 1319.''.
SEC. 5. CHARGEABLE PREMIUM RATES.
(a) Actuarial Rate Properties.--Section 1308 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015) is amended by striking
subsection (c) and inserting the following new subsection:
``(c) Actuarial Rate Properties.--Subject only to the limitation
provided under paragraph (1), the chargeable rate shall not be less
than the applicable estimated risk premium rate for such area (or
subdivision thereof) under section 1307(a)(1) with respect to the
following properties:
``(1) Post-firm properties.--Any property the construction
or substantial improvement of which the Director determines has
been started after December 31, 1974, or started after the
effective date of the initial rate map published by the
Director under paragraph (2) of section 1360 for the area in which such
property is located, whichever is later, except that the chargeable
rate for properties under this paragraph shall be subject to the
limitation under subsection (e).
``(2) Repetitive insurance claims properties.--Any property
for which the Director determines that repetitive flood
insurance claim payments have been made and the owner of which
has refused a buyout, elevation, or other flood mitigation
measure funded in whole or in part by the Federal Emergency
Management Agency.
``(3) Certain leased coastal and river properties.--Any
property leased from the Federal Government (including
residential and nonresidential properties) that the Director
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.''.
(b) Applicability of Annual Limitation on Premium Increases.--
Section 1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C.
4015(e)) is amended by striking ``Notwithstanding'' and inserting
``Except with respect to properties described under paragraph (2) or
(3) of subsection (c) and notwithstanding''.
SEC. 6. REMOVING REPETITIVE INSURANCE CLAIMS PROPERTIES FROM FEDERAL
DISASTER ASSISTANCE RESPONSIBILITY.
(a) In General.--Section 582 of the National Flood Insurance Reform
Act of 1994 (42 U.S.C. 5154a) is amended--
(1) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively; and
(2) by inserting after subsection (c) the following new
subsection:
``(d) Unmitigated Repetitive Insurance Claims Properties.--
Notwithstanding any other provision of law, no Federal disaster relief
assistance made available in a flood disaster area may be used to make
a payment (including any loan assistance payment) for repair,
replacement, or restoration for damage to any property in the area for
which--
``(1) repetitive flood insurance claim payments have been
made; and
``(2) in accordance with such requirements as the Director
may establish, mitigation assistance under section 1366 of this
Act or section 404 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5170c) has been offered
to the owner of the property, before or after the occurrence of
the flood loss events, which was refused by the owner.''.
(b) Effective Date.--Notwithstanding subsection (f) of section 582
of the National Flood Insurance Reform Act of 1994 (as so redesignated
by paragraph (1)(A) of this subsection), the amendment made by
paragraph (1) shall apply to disasters declared after the date of the
enactment of this Act.
SEC. 7. MITIGATION GRANTS FOR REPETITIVE INSURANCE CLAIMS PROPERTIES.
(a) In General.--Chapter I of the National Flood Insurance Act of
1968 is amended by adding after section 1322 (42 U.S.C. 4029) the
following new section:
``grants for repetitive insurance claims properties
``Sec. 1323. The Director may provide funding for mitigation
actions that reduce flood damages to repetitive insurance claims
properties, but only if the Director determines that--
``(1) such activities are in the best interest of the
National Flood Insurance Fund;
``(2) the owner of such property has refused a buyout,
elevation, or other flood mitigation measure funded in whole or
in part by the Federal Emergency Management Agency; and
``(3) such activities can not be funded under the program
under section 1366 because--
``(A) the State or community in which the property
is located can not comply with the requirements of
section 1366(g); or
``(B) the State or community does not have the
capacity to manage such activities.''.
(b) Availability of National Flood Insurance Fund Amounts.--Section
1310(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a))
is amended--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(9) for funding for mitigation actions under section
1323.''.
SEC. 8. USE RESTRICTIONS ON ACQUIRED PROPERTY.
Section 1366(e)(5)(C) of the National Flood Insurance Act of 1968
(42 U.S.C. 4104c(e)(5)(C)) is amended by striking ``for public use, as
the Director determines is consistent with sound land management and
use in such area'' and inserting the following: ``except that the
Director may not provide amounts under this section for use for
acquisition of properties unless the State or community agrees, to the
satisfaction of the Director, that the instrument for acquisition of
the property will convey to the United States a future interest in all
right, title, and interest in and to all property acquired with the
amounts under this section that is contingent upon the condition that
the property acquired ceases to be dedicated and maintained for use
that is compatible with open space, recreational, or wetlands
management practices.''.
SEC. 9. DEFINITIONS OF REPETITIVE FLOOD INSURANCE CLAIM PAYMENTS AND
REPETITIVE INSURANCE CLAIMS PROPERTIES.
Section 1370(a) of the National Flood Insurance Act of 1968 (42
U.S.C. 4121(a)) is amended--
(1) in paragraph (7), by inserting after the paragraph
designation the following: ``for purposes of sections
1304(b)(1), 1315(a)(2)(A)(i), and 1366(e)(4),'';
(2) in paragraph (13), by striking ``and'' at the end;
(3) in paragraph (14), by striking the period at the end
and inserting a semicolon''; and
(4) by adding at the end the following new paragraphs:
``(15) the term `repetitive flood insurance claim payments'
means, with respect to a property, that claim payments for
losses to the property have been made under flood insurance
coverage under this title on more than one occasion within a
10-year period, with each such claim exceeding $1,000, without
regard to the ownership of the property; and
``(16) the term `repetitive insurance claims property'
means a property with respect to which repetitive flood
insurance claims payments have been made.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Housing and Community Opportunity.
Subcommittee on Housing and Community Opportunity Discharged.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Voice Vote.
Reported (Amended) by the Committee on Financial Services. H. Rept. 108-266.
Reported (Amended) by the Committee on Financial Services. H. Rept. 108-266.
Placed on the Union Calendar, Calendar No. 152.
Mr. Ney moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H11833-11842)
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DEBATE - The House proceeded with forty minutes of debate on H.R. 253.
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
Considered as unfinished business. (consideration: CR H11844)
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 352 - 67 (Roll no. 655).(text: CR H11833-11835)
Roll Call #655 (House)On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 352 - 67 (Roll no. 655). (text: CR H11833-11835)
Roll Call #655 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate.
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.