A bill to amend the National Flood Insurance Act of 1968 to continue the present federally subsidized flood insurance program in any locality where construction of an adequate flood protection system has begun, and to eliminate the compulsory features added to such program by the Flood Disaster Protection Act of 1973.

Amends the National Flood Insurance Act of 1968 to make communities which have obtained adequate financing for construction of certain flood protection systems, and the construction of which is in progress and will be completed by December 31, 1984, eligible for premium rates on flood insurance not exceeding those which would be applicable if such system had been completed.

Amends the Flood Disaster Protection Act of 1973 to: (1) repeal the requirement that flood insurance be a prerequisite to Federal or federally supervised financial assistance; (2) abolish the requirement that each community identified as a flood prone area either apply to participate in the national flood insurance program or show that the area is not flood prone, or that the hazards have been corrected; (3) repeal the authority of the Secretary of Housing and Urban Development to make the final decision as to the existence of a flood hazard area conclusive for purposes of the Act; and (4) repeal public hearing provisions with respect to communities notified of flood hazards after the statutory six-month period.