National Flood Insurance Act Amendments

National Flood Insurance Act Amendments - Increases the limitation amounts on insurance coverage under the National Flood Insurance Act. Provides that the face amount of flood insurance coverage outstanding and in force at any one time under such Act shall not exceed the sum of $10,000,000 (formerly $2,500,000).

Provides that no officer or agency of the United States shall insure or guarantee or enter into a contract for the insurance of any mortgage or real estate if the property to which such loan relates is in a flood prone area, unless such property is covered under the National Flood Insurance Act.

Provides flood insurance for States and local government property, formerly ineligible for flood insurance because of inadequate land use controls, if the premium charged for such coverage exceeds by 25 percent the rate chargeable on similar property with proper land use controls.

Provides that in the case of any unit of local government which has special flood hazards and is not participating in the flood insurance program, Federal benefits to such unit of local government shall be reduced by 10 percent on July 1, 1977, and additional 20 percent on July 1, 1978, an additional 30 percent on July 1, 1979, and an additional 40 percent on July 1, 1980.