This Act may be cited as the “National Flood Insurance Program Reauthorization and Reform Act of 2019”.

The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

In this Act:

(1) ADMINISTRATOR.—The term “Administrator” means the Administrator of the Federal Emergency Management Agency.

(2) FEDERAL FLOOD INSURANCE.—The term “Federal flood insurance” means an insurance policy made available under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.).

(3) NATIONAL FLOOD INSURANCE PROGRAM.—The term “National Flood Insurance Program” means the program established under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.).

(4) NATIONAL FLOOD MITIGATION FUND.—The term “National Flood Mitigation Fund” means the fund established under section 1367 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104d).

(5) WRITE YOUR OWN COMPANY.—The term “Write Your Own Company” means a private property insurance company that participates in the Write Your Own Program.

(6) WRITE YOUR OWN PROGRAM.—The term “Write Your Own Program” means the program under which the Federal Emergency Management Agency enters into a standard arrangement with private property insurance companies to—

(A) sell contracts for Federal flood insurance under their own business lines of insurance; and

(B) adjust and pay claims arising under the contracts described in subparagraph (A).

(a) Financing.—Section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) is amended by striking “September 30, 2019” and inserting “September 30, 2024”.

(b) Program expiration.—Section 1319 of the National Flood Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking “September 30, 2019” and inserting “September 30, 2024”.

(c) Program continuation.—

(1) IN GENERAL.—Section 1310 of the National Flood Insurance Act of 1968 (42 U.S.C. 4017) is amended by adding at the end the following:

“(g) Amounts in the National Flood Insurance Reserve Fund established under section 1310A may be credited to the National Flood Insurance Fund to enter into, and renew, contracts for flood insurance under this title during any lapse in appropriations.”.

(2) TECHNICAL AND CONFORMING AMENDMENTS.—Section 1310A(a)(2) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017A(a)(2)) is amended—

(A) in subparagraph (B), by striking “and” at the end;

(B) in subparagraph (C), by striking the period at the end and inserting “; and”; and

(C) by adding at the end the following:

“(D) for the purpose described in section 1310(g).”.

(a) Definition.—In this section, the term “covered cost” means—

(1) the amount of an annual premium with respect to any policy for flood insurance under the National Flood Insurance Program;

(2) any surcharge imposed with respect to a policy described in paragraph (1), including a surcharge imposed under—

(A) section 1304(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)); or

(B) section 1308A(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015a(a)); and

(3) a fee described in paragraph (1)(B)(iii) or (2) of section 1307(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)).

(b) Limitation on increases.—During the 5-year period beginning on the date of enactment of this Act, and notwithstanding section 1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e)), the Administrator may not, in any year, increase the amount of any covered cost by an amount that is more than 9 percent, as compared with the amount of the covered cost during the previous year.

(c) Rule of construction.—Nothing in subsection (b) may be construed as prohibiting the Administrator from reducing, in any year, the amount of any covered cost, as compared with the amount of the covered cost during the previous year.

(d) Average historical loss year.—Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C. 4015) is amended by striking subsection (h) and inserting the following:

“(h) Rule of construction.—For purposes of this section, the calculation of an ‘average historical loss year’ shall be computed in accordance with generally accepted actuarial principles.”.

(e) Disclosure with respect to the affordability standard.—Section 1308(j) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(j)) is amended, in the second sentence, by inserting “and shall include in the report the number of those exceptions as of the date on which the Administrator submits the report and the location of each policyholder insured under those exceptions, organized by county and State” after “of the Senate”.

Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amended by adding at the end the following:

Section 1308(g) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended—

(1) by striking “With respect to” and inserting the following:

“(1) ANNUAL OR MONTHLY OPTION.—Subject to paragraph (2), with respect to”; and

(2) by adding at the end the following:

“(2) MONTHLY INSTALLMENT.—With respect to a policyholder that opts under paragraph (1) to pay premiums on a monthly basis, the Administrator may charge the policyholder an annual fee of not more than $15.

“(3) EXEMPTION FROM RULE MAKING; PILOT PROGRAM.—During the period beginning on the date of enactment of this paragraph and ending on the date on which the Administrator promulgates regulations carrying out paragraph (1), the Administrator may, notwithstanding any other provision of law—

“(A) adopt policies and procedures to carry out that paragraph without—

“(i) undergoing notice and comment rule making under section 553 of title 5, United States Code; or

“(ii) conducting regulatory analyses otherwise required by statute, regulation, or Executive order; or

“(B) carry out that paragraph by establishing a pilot program that gradually implements the requirements of that paragraph.”.

(a) In general.—The Administrator shall conduct a study on the feasibility and soundness of offering coverage for interruption business losses caused by a flood under the National Flood Insurance Program (referred to in this section as “business interruption coverage”).

(b) Contents.—In conducting the study under subsection (a), the Administrator shall, at a minimum—

(1) evaluate insurance industry best practices for offering business interruption coverage, including the types of coverage provided and the utilization rate;

(2) estimate the potential risk premium rates for business interruption coverage based on the flood risk reflected in the flood insurance rate map or other risk metrics in effect at the time of purchase;

(3) analyze the operational and administrative expenses associated with providing business interruption coverage and adjusting claims;

(4) identify potential obstacles that may prevent the Administrator from offering business interruption coverage;

(5) evaluate the benefits of providing business interruption coverage;

(6) analyze any potential impacts on the financial position of the National Flood Insurance Program; and

(7) develop a feasibility implementation plan and projected timelines for offering business interruption coverage.

(c) Availability of experts.—In conducting the study under subsection (a), the Administrator may accept and utilize the personnel and services of any other Federal agency, and appoint and fix the compensation of temporary personnel without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, or employ experts and consultants in accordance with the provisions of section 3109 of such title, without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates.

(d) Deadline.—The Administrator shall complete the study required under subsection (a) not later than September 30 of the second full fiscal year after the date of enactment of this Act.

(a) In general.—Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 4013) is amended by adding at the end the following:

“(e) Cooperatives.—

“(1) DEFINITION.—In this subsection, the term ‘cooperative building’ has the meaning given the term in section 1312(d).

“(2) EQUAL TREATMENT WITH CONDOMINIUMS.—Notwithstanding any other provision of law, an owner of a share of a cooperative building shall be eligible to purchase flood insurance coverage under the national flood insurance program on the same terms as a condominium owner.”.

(b) Payment of claims.—Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019) is amended—

(1) in subsection (c)—

(A) in the subsection heading, by inserting “and cooperative” after “condominium”;

(B) by inserting “or owners of a share of a cooperative building” after “condominium owners”; and

(C) by inserting “or cooperative association” after “condominium association” each place that term appears; and

(2) by adding at the end the following:

“(d) Definitions.—In this section, the terms ‘cooperative association’ and ‘cooperative building’ have the meanings given the terms by the Administrator.”.

(a) In general.—Section 1306 of the National Flood Insurance Act of 1968 (42 U.S.C. 4013), as amended by section 106(a), is amended—

(1) in subsection (b)—

(A) in the matter preceding paragraph (1), by striking “In addition to any other terms and conditions under subsection (a), such regulations” and inserting “The Administrator”;

(B) in paragraph (2)—

(i) by striking “shall be made” and inserting “may be made”; and

(ii) by striking “$250,000” and inserting “the baseline amount”;

(C) in paragraph (3)—

(i) by striking “shall be made” and inserting “may be made”; and

(ii) by striking “$100,000” and inserting “50 percent of the baseline amount”; and

(D) in paragraph (4)—

(i) by striking “shall be made” each place that term appears and inserting “may be made”; and

(ii) by striking “$500,000” each place that term appears and inserting “200 percent of the baseline amount”; and

(2) by adding at the end the following:

“(f) Definition.—

“(1) IN GENERAL.—Subject to paragraph (2), in this section, the term ‘baseline amount’, with respect to a property, means the maximum original principal obligation of a conventional mortgage that may be purchased by the Federal National Mortgage Association in the area in which the property as located, as established under section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)).

“(2) CLARIFICATION.—If, after the date of enactment of this subsection, the baseline amount, as defined in paragraph (1), decreases as compared with the baseline amount in effect on the day before the date of enactment of this subsection, the baseline amount that was in effect on the day before the date of enactment of this subsection shall be deemed to be the baseline amount for the purposes of paragraphs (2), (3), and (4) of subsection (b).”.

(b) Authority of Administrator To sell policies.—The Administrator may sell a policy for flood insurance under the National Flood Insurance Program that meets the requirements of paragraphs (2), (3), and (4) of section 1306(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4013(b)), as amended by subsection (a), without regard to—

(1) section 61.6 of title 44, Code of Federal Regulations, as in effect on the day before the date of enactment of this Act; or

(2) any other provision of law.

(a) Definitions.—In this section—

(1) the term “500-year floodplain” has the meaning given the term in section 100202(a) of the Biggert-Waters Flood Insurance Reform Act of 2012 (40 U.S.C. 4004(a));

(2) the terms “Federal agency lender”, “improved real estate”, and “regulated lending institution” have the meanings given those terms in section 3(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4003(a)); and

(3) the term “property with a Federally backed mortgage” means improved real estate or a mobile home securing a loan that was—

(A) made by a regulated lending institution or Federal agency lender; or

(B) purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.

(b) Study.—The Comptroller General of the United States shall conduct a study that proposes to address, through programmatic and regulatory changes, how to increase the rate at which properties in the United States are covered by flood insurance.

(c) Considerations.—In conducting the study required under subsection (b), the Comptroller General of the United States shall—

(1) consider—

(A) expanding participation in the National Flood Insurance Program beyond areas having special flood hazards to areas of moderate or minimum risk with respect to flooding;

(B) automatically enrolling consumers in the National Flood Insurance Program and providing those consumers with the opportunity to decline such enrollment; and

(C) bundling flood insurance coverage that diversifies risk across all or multiple forms of peril; and

(2) determine—

(A) the percentage of properties with Federally backed mortgages located in an area having special flood hazards that are covered by flood insurance that satisfies the requirement under section 102(b) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)); and

(B) the percentage of properties with Federally backed mortgages located in the 500-year floodplain that are covered by flood insurance that would satisfy the requirement described in subparagraph (A) if that requirement applied to such properties.

(d) Report.—Not later than 18 months after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report regarding the results of the study conducted under subsection (b).

(a) In general.—Section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133) is amended by adding at the end the following:

“(n) Flood mitigation activities.—The President shall set aside from the Disaster Relief Fund an amount equal to 10 percent of the average amount appropriated to the Fund during the preceding 10 fiscal years to provide assistance for mitigation activities under section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) for—

“(1) severe repetitive loss structures; and

“(2) properties insured under the national flood insurance program with the largest increase in the actuarial risk for the property compared to the actuarial risk for the previous fiscal year as a result of Risk Rating 2.0, as in effect on October 1, 2020.”.

(b) Applicability.—The amendment made to section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133) by subsection (a) shall apply to funds appropriated on or after the date of enactment of this Act.

(c) Technical and conforming amendment.—Effective on October 5, 2023, section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133) is amended by redesignating subsection (n), as added by subsection (a) of this section, as subsection (m).

Section 1304(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)) is amended—

(1) in paragraph (4), by redesignating subparagraphs (A) through (D) as clauses (i) through (iv), respectively, and adjusting the margins accordingly;

(2) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and adjusting the margins accordingly;

(3) in subparagraph (C), as so redesignated, by striking the period at the end and inserting a semicolon;

(4) by redesignating paragraph (4) as subparagraph (F), and adjusting the margins accordingly;

(5) by inserting after subparagraph (C), as so redesignated, the following:

“(D) properties identified by the Administrator as priorities for mitigation activities before the occurrence of damage to or loss of property which is covered by flood insurance;

“(E) properties outside an area having special flood hazards if the communities in which the properties are located have, under section 1361, established land use and control measures for the areas in which the properties are located; and”;

(6) by inserting before “The national flood insurance program” the following: “(1) In general.—”;

(7) in the flush text following subparagraph (F)(iv), by striking “The Administrator” and inserting the following:

“(2) Premium.—The Administrator”; and

(8) by adding at the end the following:

“(3) Amount of coverage.—Each policy for flood insurance coverage made available under this title shall provide coverage under this subsection having an aggregate liability for any single property of $60,000.

“(4) Eligible mitigation activities.—

“(A) IN GENERAL.—Eligible mitigation methods the cost of which is covered by coverage provided under this subsection shall include—

“(i) alternative methods of mitigation identified in the guidelines issued pursuant to section 1361(d);

“(ii) pre-disaster mitigation projects for eligible structures; and

“(iii) costs associated with the purchase, clearing, and stabilization of property that is part of an acquisition or relocation project that complies with subparagraph (B).

“(B) ACQUISITION AND RELOCATION PROJECT ELIGIBILITY AND REQUIREMENTS.—

“(i) IN GENERAL.—An acquisition or relocation project shall be eligible to receive assistance pursuant to subparagraph (A)(iii) only if—

“(I) any property acquired, accepted, or from which a structure will be removed shall be dedicated and maintained in perpetuity for a use that is compatible with open space, recreational, or wetland and natural floodplain management practices; and

“(II) any new structure erected on such property will be—

“(aa) a public facility that is open on all sides and functionally related to a designated open space;

“(bb) a restroom; or

“(cc) a structure that the Administrator approves in writing before the commencement of the construction of the structure.

“(ii) FURTHER ASSISTANCE.—If an acquisition or relocation project is assisted pursuant to subparagraph (A)(iii)—

“(I) no person may apply to a Federal entity for disaster assistance with regard to any property acquired, accepted, or from which a structure was removed as part of such acquisition or relocation project; and

“(II) no Federal entity may provide disaster assistance for such property.

“(iii) REQUIREMENT TO MAINTAIN FLOOD INSURANCE COVERAGE.—

“(I) IN GENERAL.—Notwithstanding any other provision of law, any assisted structure shall, at all times, maintain insurance against flood damage, in accordance with Federal law, for the life of such structure.

“(II) TRANSFER OF PROPERTY.—

“(aa) DUTY TO NOTIFY.—If any part of a property on which an assisted structure is located is transferred, the transferor shall, not later than the date on which such transfer occurs, notify the transferee in writing, including in all documents evidencing the transfer of ownership of the property, that such transferee is required to—

“(AA) obtain flood insurance in accordance with applicable Federal law with respect to such assisted structure, if such structure is not so insured on the date on which the structure is transferred; and

“(BB) maintain flood insurance in accordance with applicable Federal law with respect to such structure.

“(bb) FAILURE TO NOTIFY.—If a transferor fails to make a notification in accordance with item (aa) and such assisted structure is damaged by a flood disaster, the transferor shall pay the Federal Government an amount equal to the amount of any disaster relief provided by the Federal Government with respect to such assisted structure.

“(III) ASSISTED STRUCTURE DEFINED.—For the purposes of this clause, the term ‘assisted structure’ means a structure on property that is part of an acquisition or relocation project assisted pursuant to subparagraph (A) that was, as part of such acquisition or relocation project—

“(aa) altered;

“(bb) improved;

“(cc) replaced;

“(dd) repaired; or

“(ee) restored.

“(C) ELIGIBLE STRUCTURE DEFINED.—For purposes of this paragraph, the term ‘eligible structure’ means any structure that—

“(i) was constructed in compliance with the Flood Insurance Rate Map and local building and zoning codes in effect on the date of construction of the structure; and

“(ii) has not previously been altered, improved, replaced, or repaired using assistance provided under this subsection.

“(5) Treatment of coverage limits.—Any amount of coverage provided for a property pursuant to this subsection shall not be considered or counted for purposes of any limitation on coverage applicable to such property under section 1306(b) and any claim on such coverage shall not be considered a claim for purposes of section 1307(h) or subsection (a)(3) or (h)(3) of section 1366.

“(6) Implementation.—Notwithstanding any other provision of law, the Administrator may implement this subsection by adopting 1 or more standard endorsements to the Standard Flood Insurance Policy by publication of such standards in the Federal Register, or by comparable means.”.

(a) Flood Mitigation Assistance Grant Program priority.—Section 1366 of the National Flood Insurance Act (42 U.S.C. 4104c) is amended—

(1) in subsection (a)—

(A) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively, and adjusting the margins accordingly;

(B) in the second sentence of the matter preceding subparagraph (A), as so redesignated, by striking “assistance shall be” and inserting the following: “assistance shall—

“(1) be”;

(C) in paragraph (1)(C), as so redesignated, by striking the period at the end and inserting “; and”; and

(D) by adding at the end the following:

“(2) in addition to the requirement under paragraph (1)(C), give priority to properties—

“(A) that are repetitive loss structures;

“(B) with respect to which the Administrator makes a determination that the premium rates with respect to a policy for flood insurance coverage under this title—

“(i) are unaffordable; or

“(ii) will soon become unaffordable as a result of a risk adjustment under Risk Rating 2.0, as in effect on the date of that determination; and

“(C) for which aggregate losses exceed the replacement value of the properties.”; and

(2) in subsection (h), by adding at the end the following:

“(4) UNAFFORDABLE.—The term ‘unaffordable’ means, with respect to the premium rates for a policy for flood insurance coverage under this title, that, in a year, those rates are in an such an amount that the housing expenses (as defined in section 1326(b)(1)) of the household that is the subject of the policy are, for that year, more than 30 percent of the adjusted gross income (as defined in section 1326(b)(1)) of the household for that year.”.

(b) Additional mitigation assistance.—

(1) APPROPRIATIONS FROM GENERAL FUND OF TREASURY.—For each of the first 5 full fiscal years after the date of enactment of this Act, there is authorized to be appropriated $1,000,000,000 to the National Flood Mitigation Fund to provide mitigation assistance under this subsection.

(2) RULE OF CONSTRUCTION.—The authorization of appropriations under subparagraph (A) shall not be construed to authorize the transfer or crediting to the National Flood Mitigation Fund of any amounts from the National Flood Insurance Fund.

(a) Mitigation strategies.—Section 1361(d)(1) of the National Flood Insurance Act of 1968 (42 U.S.C. 4102(d)(1)) is amended—

(1) in subparagraph (A), by striking “and” at the end;

(2) in subparagraph (B), by striking “and” at the end; and

(3) by inserting after subparagraph (B) the following:

“(C) with respect to buildings in dense urban environments, methods that can be deployed on a block or neighborhood scale; and

“(D) elevation of mechanical systems; and”.

(b) Mitigation credit.—Section 1308(k) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(k)) is amended—

(1) by striking “shall take into account” and inserting shall—

“(1) take into account”;

(2) in paragraph (1), as so designated, by striking the period at the end and inserting “; and”; and

(3) by adding at the end the following:

“(2) offer a reduction of the risk premium rate charged to a policyholder in an amount that is not less than 10 percent of that rate if the policyholder implements any mitigation method described in paragraph (1).”.

Section 1315(b) of the National Flood Insurance Act of 1968 (42 U.S.C. 4022(b)) is amended by adding at the end the following:

“(5) REGIONAL COORDINATOR.—

“(A) IN GENERAL.—The Administrator shall appoint a regional coordinator in each region served by a Regional Office (as defined in section 501 of the Homeland Security Act of 2002 (6 U.S.C. 311)) to provide technical assistance to small communities to enable those communities to effectively participate in and benefit from the community rating system program.

“(B) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as may be necessary to carry out this paragraph, which shall remain available until expended.”.

(a) Definition.—In this section, the term “mitigation measure” means, with respect to a structure, a measure undertaken to reduce the risk of flood damage to the structure.

(b) Establishment.—The Administrator may establish a pilot program through which the Administrator may provide low-interest loans to policyholders under the National Flood Insurance Program for the purposes described in subsection (c).

(c) Purposes of loans.—A loan provided to a policyholder under the pilot program established under subsection (b) shall be used to undertake mitigation measures with respect to the insured property that cost less than the cost of the estimated amount of premiums that would be paid with respect to the property during the 50-year period beginning in the year in which the loan is made and if those mitigation measures were not undertaken.

(d) Sale of property.—If a property with respect to which a loan has been made under this section is sold, upon that sale, the outstanding loan balance shall—

(1) be repaid using the proceeds of the sale; or

(2) carry over to the purchaser of the property if the purchaser so consents before the execution of the sale.

(a) In general.—Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.), as amended by section 103, is amended by adding at the end the following:

(b) Consideration of mitigation measures funded by state loan funds in flood insurance premium rates.—

(1) ESTIMATED RATES.—Section 1307(a)(1)(A)(ii) of the National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(A)(ii)) is amended by striking “and similar measures” and inserting “similar measures, and any activities funded through amounts from a State loan fund established under section 1326”.

(2) CHARGEABLE RATES.—Section 1308(b)(1) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(b)(1)) is amended by striking “and similar measures” and inserting “similar measures, and any activities funded through amounts from a State loan fund established under section 1326”.

(a) Amendments to the Biggert-Waters Flood Insurance Reform Act of 2012.—The Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4004 et seq.) is amended—

(1) in section 100215 (42 U.S.C. 4101a)—

(A) in subsection (b)(1)—

(i) by redesignating subparagraphs (A) through (E) as subparagraphs (B) through (F), respectively;

(ii) by inserting before subparagraph (B), as so redesignated, the following:

“(A) the Director of the United States Geological Survey;”; and

(iii) in subparagraph (F), as so redesignated—

(I) in the matter preceding clause (i), by striking “16” and inserting “17”;

(II) in clause (xiii), by striking “and” at the end;

(III) in clause (xiv), by striking the period at the end and inserting “; and”; and

(IV) by adding at the end the following:

“(xv) an expert in the field of catastrophic risk modeling.”; and

(B) by adding at the end the following:

“(m) Private or community flood maps.—

“(1) STANDARDS AND PROCEDURES.—In addition to the other duties of the Council under this section, not later than 1 year after the date of enactment of this subsection, the Council shall develop and establish a set of standards, guidelines, and procedures for—

“(A) State and local governments, federally or State-recognized metropolitan planning organizations (commonly known as ‘MPOs’), federally or State-recognized councils of local governments, and federally or State-recognized rural transportation planning organizations to use in mapping flood risks and developing alternative maps to the flood insurance rate maps developed by the Administrator; and

“(B) certification, by the Administrator not later than 90 days after the date on which a map developed under subparagraph (A) is submitted to the Administrator, for use under the National Flood Insurance Program in the case of any area covered by a flood insurance rate map developed or approved by the Administrator that has not been updated or reissued during the preceding 3-year period.

“(2) TREATMENT.—On and after the date on which the Administrator certifies a map under paragraph (1)(B), the map—

“(A) shall be considered the flood insurance rate map in effect for all purposes of the National Flood Insurance Program with respect to the area covered by the map; and

“(B) may not be revised, updated, or replaced in accordance with the standards, guidelines, and procedures established under paragraph (1) before the expiration of the 3-year period beginning on that date of certification.

“(3) EXEMPTION FROM RULEMAKING.—Until the date on which the Administrator promulgates regulations implementing paragraphs (1) and (2), the Administrator may adopt policies and procedures, notwithstanding any other provision of law, necessary to implement those paragraphs without regard to section 553 of title 5, United States Code, and without conducting regulatory analyses otherwise required by statute, regulation, or Executive order.”; and

(2) in section 100216 (42 U.S.C. 4101b)—

(A) in subsection (b)—

(i) in paragraph (1)—

(I) in subparagraph (A), by striking “to—” and all that follows through the end of clause (vi) and inserting “to all areas of the United States;”;

(II) in subparagraph (B), by striking “and” at the end;

(III) in subparagraph (C), by striking “accurate topography” and all that follows through the period at the end and inserting “current and best remote sensing technology;”; and

(IV) by adding at the end the following:

“(D) when appropriate, partner with other Federal agencies and private entities in order to meet the objectives of the program; and

“(E) consult and coordinate with the Secretary of Defense, the Director of the United States Geological Survey, and the Administrator of the National Oceanic and Atmospheric Administration to obtain the most up-to-date maps and other information of those agencies, including information relating to topography, water flow, watershed characteristics, and any other issues that are relevant to identifying, reviewing, updating, maintaining, and publishing National Flood Insurance Program rate maps.”; and

(ii) in paragraph (3)—

(I) in subparagraph (A), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and adjusting the margins accordingly;

(II) by redesignating subparagraphs (A) through (E) as clauses (i) through (v), respectively, and adjusting the margins accordingly;

(III) in the matter preceding clause (i), as so redesignated, by striking “Administrator shall include—” and inserting the following: “Administrator—

“(A) shall include—”;

(IV) in subparagraph (A)(v), as so redesignated, by striking the period at the end and inserting “; and”; and

(V) by adding at the end the following:

“(B) may include—

“(i) any relevant information that is obtained under paragraph (1)(D); and

“(ii) cadastral features, including, for each cadastral feature—

“(I) the associated parcel identification data for that feature; and

“(II) to the maximum extent practicable, using public and private sector address data, the address of that feature.”;

(B) in subsection (c)(2)—

(i) in subparagraph (B), by striking “and” at the end;

(ii) in subparagraph (C), by striking the period at the end and inserting “; and”; and

(iii) by adding at the end the following:

“(D) not later than 5 years after the date on which the National Geodetic Survey completes the modernization of the National Spatial Reference System in 2022, updated to conform with the geospatial data provided by that system; and

“(E) spatially accurate in accordance with the common protocols for geographic information systems under section 216 of the E-Government Act of 2002 (44 U.S.C. 3501 note).”;

(C) by redesignating subsection (f) as subsection (g);

(D) by inserting after subsection (e) the following:

“(f) Incorporating building-Specific flood risk information.—

“(1) ESTABLISHMENT.—

“(A) IN GENERAL.—Not later than 5 years after the date of enactment of the National Flood Insurance Program Reauthorization and Reform Act of 2019, the Administrator, in coordination with, and as recommended by, the Technical Mapping Advisory Council, shall establish a dynamic, database-derived digital display environment for flood hazard risk production and dissemination.

“(B) CONSULTATION WITH STATES AND COMMUNITIES.—In designing and constructing the environment under subparagraph (A), the Administrator shall—

“(i) leverage and partner with States and communities that have successfully implemented the same approach; and

“(ii) consider adopting the techniques and technologies used by States and communities described in clause (i) and applying them nationwide.

“(2) DIGITAL DISPLAY.—

“(A) IN GENERAL.—In carrying out paragraph (1), the Administrator shall create a digital display prompted through dynamic querying of a spatial, relational building database that includes—

“(i) special flood hazard areas and base flood elevations for purposes of lender compliance with the requirements under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a); and

“(ii) structure-specific flood risk information, including, for each property address—

“(I) the spatial footprint and elevation of the structure relative to special flood hazard areas and base flood elevations;

“(II) the most current elevation certificate applicable to the property;

“(III) any letter of map changes;

“(IV) the full risk premium rate estimated for the structure under section 1307(a)(1) of the National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)) based on elevation data;

“(V) the disclosure described in section 1308(l) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(l)), which shall include—

“(aa) the extent to which, if any, the chargeable premium rate applicable to the property is less than the full risk premium rate under section 1307(a)(1) of that Act (42 U.S.C. 4014(a)(1)); and

“(bb) an explanation of the difference described in item (aa) and the methodology used to rate the property;

“(VI) the estimated cost to repair the structure in the case of damage from floods with recurrence intervals ranging from the 10 percent annual chance event to the 0.2 percent annual chance event;

“(VII) the cost-effectiveness of mitigating the structure using common methods and how the chargeable premium rate would change based on each mitigation method; and

“(VIII) the claims history of the structure, including the amount and date of each loss.

“(B) PRIVACY REQUIREMENTS.—With respect to the database described in subparagraph (A), including any data used to create that database, the Administrator may not disseminate the database to any person other than the owner or leaseholder of a property identified in the database.

“(3) DATABASE.—

“(A) IN GENERAL.—The Administrator shall—

“(i) develop a spatial, relational database of buildings in the National Flood Insurance Program; and

“(ii) obtain the data necessary to support the digital display created under paragraph (2).

“(B) DATA.—The data obtained under subparagraph (A) shall include, at a minimum—

“(i) footprints and elevations (including lowest adjacent grade and first floor) from Light Detection and Ranging (commonly known as ‘LiDAR’) data collections or other data collection methods that meet or exceed the standards for buildings, as determined by the Administrator;

“(ii) elevation certificates;

“(iii) parcel, address, and imagery data necessary for the identification, assessment, and reduction of flood hazards for individual properties;

“(iv) flood insurance rate maps, studies, and supporting data;

“(v) letters of map change; and

“(vi) any other data that the Administrator determines necessary to collect to meet the objectives of this section.

“(4) DATA PROCUREMENT.—The Administrator shall obtain any data necessary to establish the environment under paragraph (1), including by—

“(A) directing communities participating in the National Flood Insurance Program, by regulation, to collect and supply information, including elevation data, for each structure that obtains a construction or other development permit within—

“(i) a special flood hazard area; or

“(ii) an advisory special flood hazard area adopted by the community;

“(B) issuing guidelines and standards, as determined by the Administrator;

“(C) partnering with other Federal, State, local, and private stakeholders to the greatest extent possible to obtain and share existing data that meets or exceeds the standards determined by the Administrator under subparagraph (B); and

“(D) contracting with private companies to obtain new LiDAR data collections or elevation certificates.

“(5) NFIP PREMIUM CREDIT.—The Administrator shall provide a 1-time premium credit of not more than $500 to a policyholder for—

“(A) the purchase of an elevation certificate; or

“(B) the purposes of appealing the chargeable premium rate with respect to the property to which the premium applies.

“(6) MASS LETTERS OF MAP CHANGE.—In coordination with States and communities that have successfully implemented a dynamic, database-derived digital display environment for flood hazard risk production and dissemination, the Administrator shall issue guidelines for the adoption and integration into the program established under subsection (a) of LiDAR-based letter of map amendment approaches.

“(7) ANNUAL REPORT.—The Administrator shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives an annual progress report on the implementation of this subsection, which shall include recommendations to reduce the cost and improve the implementation of this subsection.”; and

(E) in subsection (g), as so redesignated—

(i) by striking “this section $400,000,000” and inserting the following: “this section—

“(1) $400,000,000”; and

(ii) by striking the period at the end and inserting the following: “; and

“(2) $400,000,000 for each of fiscal years 2020 through 2025.”.

(b) Appeals.—

(1) IN GENERAL.—

(A) RIGHT TO APPEAL.—Section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 4101) is amended by adding at the end the following:

“(k) Appeals of existing maps.—

“(1) RIGHT TO APPEAL.—Subject to paragraph (6), a State or local government, or the owner or lessee of real property, that makes a formal request to the Administrator to update a flood insurance rate map that the Administrator denies may at any time appeal the denial in accordance with this subsection.

“(2) BASIS FOR APPEAL.—The basis for an appeal under this subsection shall be the possession of knowledge or information that—

“(A) the base flood elevation level or designation of any aspect of a flood insurance rate map is scientifically or technically inaccurate; or

“(B) factors exist that mitigate the risk of flooding, including ditches, banks, walls, vegetation, levees, lakes, dams, reservoirs, basin, retention ponds, and other natural or manmade topographical features.

“(3) APPEALS PROCESS.—

“(A) ADMINISTRATIVE ADJUDICATION.—The Administrator shall determine an appeal under this subsection by making a final adjudication on the record, after providing an opportunity for an administrative hearing.

“(B) RIGHTS UPON ADVERSE DECISION.—

“(i) OPTIONAL ARBITRATION.—If an appeal determined under subparagraph (A) does not result in a decision in favor of the State, local government, owner, or lessee, that party may request that an appeal of the adverse decision be heard through independent, non-binding arbitration.

“(ii) PROCESS.—The Administrator shall establish a process for arbitration under clause (i) under which the arbitrator provides a non-binding recommendation to the Administrator.

“(4) RELIEF.—

“(A) WHOLLY SUCCESSFUL APPEALS.—If the Administrator determines, in an appeal under this subsection, that the property of a policyholder that had been included in a special flood hazard area under the flood insurance rate map is actually not in a special flood hazard area—

“(i) the policyholder may cancel the policy at any time during the year in which the Administrator makes the determination; and

“(ii) the Administrator shall provide the policyholder a refund equal to the amount of—

“(I) any premiums that the policyholder paid during the year described in clause (i); and

“(II) any premiums that the policyholder paid for flood insurance coverage that the policyholder was required to purchase or maintain during the 2-year period preceding the year described in clause (i).

“(B) PARTIALLY SUCCESSFUL APPEALS.—If the Administrator determines in an appeal under this subsection that mitigating factors have reduced, but not eliminated, the risk of flooding to a property, the Administrator shall—

“(i) reduce the amount of flood insurance coverage required to be maintained for the property by the ratio of the successful portion of the appeal as compared to the entire appeal; and

“(ii) provide the policyholder a refund equal to the difference between—

“(I) the amount of any premiums that the policyholder paid during the period—

“(aa) beginning on the later of—

“(AA) the date on which the mitigating factor was created; or

“(BB) January 1 of the second year preceding the date on which the determination is made; and

“(bb) ending on the date on which the reduction in the amount of flood insurance required, as described in clause (i), takes effect; and

“(II) the amount of premiums that the policyholder would have been required to pay if the reduced amount of flood insurance coverage required, as described in clause (i), had been in effect during the period described in subclause (I) of this clause.

“(C) ADDITIONAL RELIEF.—The Administrator may provide additional refunds in excess of the amounts required under subparagraphs (A) and (B) if the Administrator determines that such additional refunds are warranted.

“(5) RECOVERY OF COSTS.—

“(A) APPEAL EXPENSES.—If a State or local government, or the owner or lessee of real property, incurs any expense in connection with an appeal under this subsection that is based on a scientific or technical error made by the Administrator and that is successful in whole or part regarding the designation of the base flood elevation or any aspect of a flood insurance rate map, including elevation or designation of a special flood hazard area, the Administrator shall reimburse the State, local government, owner, or lessee in accordance with subparagraph (B).

“(B) REIMBURSABLE EXPENSES.—The Administrator—

“(i) may reimburse a party under subparagraph (A) for reasonable expenses described in that subparagraph—

“(I) including for a service provided by a surveyor, engineer, or scientific expert; and

“(II) to the extent measured by the ratio of the successful portion of the appeal as compared to the entire appeal; and

“(ii) may not reimburse a party under subparagraph (A) for—

“(I) the cost of legal services; or

“(II) the payment of any fee or expense, the payment of which was agreed to be contingent upon the result of the appeal.

“(6) GUIDANCE.—The Administrator shall issue guidance to implement this subsection, which shall not be subject to the notice and comment requirements under section 553 of title 5, United States Code.”.

(B) TECHNICAL AND CONFORMING AMENDMENTS.—Section 1310(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended—

(i) in paragraph (7), by striking “and” at the end;

(ii) in paragraph (8), by striking the period at the end and inserting “; and”; and

(iii) by adding at the end the following:

“(9) for providing reimbursements of expenses of flood insurance rate map appeals under section 1360(k)(5).”.

(2) DEADLINE FOR ISSUANCE OF GUIDANCE.—Not later than 180 days after the date of enactment of this Act, the Administrator shall issue the guidance required under subsection (k)(6) of section 1360 of the National Flood Insurance Act of 1968 (42 U.S.C. 4101), as added by paragraph (1)(A).

Section 100216(b) of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4101b(b)) is amended by adding at the end the following:

“(4) ZONES PROTECTED BY LEVEE SYSTEMS.—

“(A) APPLICABILITY.—Subject to full implementation of this section, and notwithstanding any other provision of law, this paragraph shall apply to a community in which the Administrator maps or re-maps a levee-impacted area in which the pertinent levee system fails to meet the minimum design, operation, and maintenance standards of the National Flood Insurance Program required for levee accreditation on a National Flood Insurance Program rate map.

“(B) AL ZONES.—For levee-impacted areas described in subparagraph (A), the Administrator shall establish flood risk zones known as ‘AL Zones’ on the National Flood Insurance Program rate map.

“(C) ACTUARIAL RATES.—

“(i) IN GENERAL.—The Administrator shall make available flood insurance to properties in AL Zones at actuarial rates based upon the risk associated with structures within the applicable AL Zone.

“(ii) TEMPORARY RATES.—Until the Administrator promulgates actuarial rates for the various AL Zones, a structure within a portion of a community located within a levee-impacted area described in subparagraph (A) shall be eligible for rates associated with areas of moderate flood hazards (also known as ‘Standard X zone’ rates).”.

It is the sense of Congress that the Administrator should consider flood mitigation activities that—

(1) provide benefits to an entire floodplain or community, or to a portion of such a community;

(2) consider all available and practicable approaches; and

(3) the Administrator determines—

(A) are technically feasible;

(B) have the highest net benefits; and

(C) are consistent with mitigation plans approved by the Administrator.

(a) In general.—During the 5-year period beginning on the date of enactment of this Act, the Secretary of the Treasury may not charge the Administrator interest on amounts borrowed by the Administrator under section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 4016(a)) that were outstanding as of that date of enactment.

(b) Use of saved amounts.—There shall be deposited into the National Flood Mitigation Fund an amount equal to the interest that would have accrued on the borrowed amounts during the 5-year period described in subsection (a), which, notwithstanding any provision of section 1367 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104d), the Administrator shall use to carry out the program established under section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c).

(c) No retroactive accrual.—After the 5-year period described in subsection (a), the Secretary of the Treasury shall not require the Administrator to repay any interest that, but for that subsection, would have accrued on the borrowed amounts described in that subsection during that 5-year period.

(a) In general.—Section 1311 of the National Flood Insurance Act of 1968 (42 U.S.C. 4018) is amended—

(1) by redesignating subsection (b) as subsection (c); and

(2) by inserting after subsection (a) the following:

“(b) Limitation on compensation; minimum agent commissions.—In negotiating with appropriate representatives of the insurance industry under subsection (a), the Administrator shall ensure that—

“(1) any reimbursement paid to a property and casualty insurance company for selling, writing, and servicing flood insurance policies is not more than 22.46 percent of the aggregate amount of premiums charged by the insurance company; and

“(2) an insurance company pays a portion of the reimbursement described in paragraph (1) to agents of the company as a commission, in an amount that is not less than 15 percent of the aggregate amount of the premiums sold by the agent.”.

(b) Technical and conforming amendments.—Section 1311 of the National Flood Insurance Act of 1968 (42 U.S.C. 4018), as amended by subsection (a), is amended—

(1) in subsection (a), by striking “The Administrator” and inserting “In general.—The Administrator”; and

(2) in subsection (c), as so redesignated by subsection (a) of this section, by striking “For purposes of subsection (a)” and inserting “Definitions.—For purposes of this section”.

Section 1360(g) of the National Flood Insurance Act of 1968 (42 U.S.C. 4101(g)) is amended—

(1) in the first sentence, by inserting “, subject to the following sentence,” after “at a reasonable cost”; and

(2) by inserting after the first sentence the following: “The Administrator shall develop a fee schedule based on recovering the actual costs of providing flood insurance rate maps to such other persons, and shall charge a fee based on the schedule to any private entity for the use of such a map.”.

(a) In general.—Section 100224(d) of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4081 note) is amended—

(1) by striking “Not later than 12 months after the date of enactment of this Act, the Administrator” and inserting the following:

“(1) IN GENERAL.—The Administrator”; and

(2) by adding at the end the following:

“(2) VENDOR COSTS; TRANSPARENCY.—In issuing the rule under paragraph (1), the Administrator shall—

“(A) develop a schedule to determine the actual costs of Write Your Own vendors, including claims adjusters and engineering companies;

“(B) provide that if a Write Your Own company requests reimbursement for the costs of a service or product provided to the company by a vendor, the Administrator only reimburses the company for the actual costs of the service or products; and

“(C) require that all reimbursements to Write Your Own companies be made public, including a description of the product or service provided to which the reimbursement pertains.”.

(b) Deadline for revised rule.—Not later than 90 days after the date of enactment of this Act, the Administrator shall issue a revised rule under section 100224(d) of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4081 note), as amended by subsection (a).

(a) Study required.—

(1) IN GENERAL.—The Administrator shall study the feasibility of selling or licensing the use of historical structure-specific National Flood Insurance Program claims data (referred to in this section as “covered claims data”) to nongovernmental entities.

(2) CONTENTS.—In conducting the study required under paragraph (1), the Administrator shall, at a minimum—

(A) investigate 1 or more methods of providing the most specific covered claims data possible while reasonably protecting policyholder privacy;

(B) review existing means, as of the date of enactment of this Act, by which the Federal Government and nongovernmental entities provide leases or licenses to private persons, and the various regulations, terms, conditions, and guidance employed;

(C) identify potential uses for covered claims data and any known risks concerning those uses, including the risk that private insurance companies will use the data to issue flood insurance policies with respect to properties that have the lowest level of flood risk, which would require the National Flood Insurance Program to issue those policies with respect to properties with higher levels of flood risk;

(D) identify mechanisms for determining the likely market value for access to covered claims data;

(E) consider whether selling or licensing the use of covered claims data, as described in paragraph (1), would be in compliance with section 552a of title 5, United States Code; and

(F) recommend actions the Administrator could take, if any, to prevent unintended consequences associated with the sale or licensing for private insurance purposes covered claims data.

(b) Report by Administrator.—Not later than 1 year after the date of enactment of this Act, the Administrator shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that contains the results and conclusions of the study conducted under subsection (a), which shall include an analysis of any recommendations made by the study.

Section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended—

(1) in subsection (a), in the matter preceding paragraph (1), in the first sentence, by inserting “and, with respect to financial assistance described in paragraph (2), using amounts made available from the Disaster Relief Fund in accordance with section 203(n) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133(n))” after “section 1367”;

(2) by redesignating subsection (h) as subsection (i); and

(3) by inserting after subsection (g) the following:

“(h) Refusal of assistance.—

“(1) DEFINITION.—In this subsection, the term ‘bona fide offer of assistance’ means an offer of assistance made by the Administrator to a policyholder under the national flood insurance program that—

“(A) relates to mitigation activities with respect to the structure insured under that program;

“(B) covers 100 percent of the cost of the mitigation activities described in subparagraph (A);

“(C) permits the policyholder to continue to live in the structure to which the policy relates; and

“(D) is carried out under a mitigation plan.

“(2) PENALTY.—If, after the date of enactment of this subsection, a policyholder under the national flood insurance program refuses a bona fide offer of assistance with respect to the property so insured, the Administrator shall, notwithstanding any other provision of this title, increase the chargeable risk premium rate for flood insurance under this title for the property by 25 percent each year until—

“(A) the policyholder accepts the bona fide offer of assistance; or

“(B) that chargeable risk premium rate is actuarially sound.”.

(a) Rebuttable presumption for foundation and structural damage.—

(1) IN GENERAL.—Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019) is amended by adding at the end the following:

“(d) Rebuttable presumption for foundation and structural damage.—

“(1) IN GENERAL.—For the purposes of the Administrator determining coverage under the standard flood insurance policy under the national flood insurance program, a rebuttable presumption that physical damage to the foundation of, or structural damage to, a structure was not caused by earth movement shall apply if—

“(A) flood caused direct physical change to the structure; and

“(B) there is damage to the foundation of, or structural damage to, the structure that was not present before the flood, as demonstrated by a certification from the policyholder.

“(2) REBUTTAL.—In determining coverage as a result of the rebuttable presumption under paragraph (1), an insurance company may rebut the presumption only by providing the Administrator with an engineering report that—

“(A) meets standards issued by the Administrator under paragraph (3); and

“(B) clearly demonstrates that the physical damage to the foundation of, or structural damage to, a structure described in paragraph (1) was caused directly by earth movement that was not caused by—

“(i) the horizontal pressure from standing or slow-moving floodwater (commonly known as ‘hydrostatic pressure’);

“(ii) the force of floodwater that causes the vertical uplift from the underside of a horizontal foundation component, such as a concrete slab, footer, or a structural floor assembly (commonly known as ‘buoyancy’);

“(iii) pressure imposed on an object, such as a wall of a building, by high-velocity floodwater or waves flowing against and around the building (commonly known as ‘hydrodynamic force’);

“(iv) floodwater moving along the surface of the ground causing soil to suddenly erode or undermine, resulting in failure of a foundation or to one of the structural components of the foundation (commonly known as ‘scouring’); or

“(v) earth movement otherwise caused by flood.

“(3) IN GENERAL.—The Administrator shall issue minimum standards—

“(A) regarding the form and content of engineering reports used to assist insurance claims adjusters with respect to carrying out this subsection; and

“(B) which shall—

“(i) include a requirement that any such engineering report shall be signed and have a seal affixed by an engineer who is licensed in the State in which the property to which the claim relates is located; and

“(ii) be consistent with generally accepted practices in—

“(I) the field of forensic engineering; and

“(II) the insurance industry.

“(4) RULE OF CONSTRUCTION.—Nothing in this subsection may be construed to modify the terms and conditions of the standard flood insurance policy.”.

(2) APPLICATION.—The amendments made by paragraph (1) shall apply with respect to a claim with a date of loss that is on or after the date that is 90 days after the date of enactment of this Act.

(b) Regulations.—Not later than 90 days after the date of enactment of this Act, the Administrator shall issue the standards required under subsection (d)(3) of section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as added by subsection (a)(1).

(a) Basement clarification.—

(1) IN GENERAL.—Section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C. 4012) is amended by adding at the end the following:

“(e) Availability of insurance for pre-FIRM condominium basements.—

“(1) DEFINITION.—In this subsection, the term ‘pre-FIRM condominium building’ means a condominium building that was not constructed or substantially improved after the later of—

“(A) December 31, 1974; or

“(B) the effective date of the initial flood insurance rate map published by the Administrator under section 1360 for the area in which the building is located.

“(2) COVERAGE.—The Administrator shall make flood insurance available to cover the basement of any pre-FIRM condominium building if that basement serves as a separate residential unit within that condominium building.”.

(2) AMENDMENTS TO REGULATIONS.—Not later than 180 days after the date of enactment of this Act, the Administrator shall make any amendments to the regulations of the Federal Emergency Management Agency that are necessary as a result of the amendment made by paragraph (1).

(b) Study on consequences of street-Raising.—

(1) DEFINITION.—In this subsection, the term “affected property” means a property containing an area—

(A) the floor of which was located at or above grade before the community raised the street adjacent to the property; and

(B) after the street-raising described in subparagraph (A), that was designated as a basement because of the street-raising.

(2) STUDY; REPORT.—Not later than 1 year after the date of enactment of this Act, the Administrator shall study and submit to Congress a report on the consequences of street-raising on flood insurance coverage for an affected property under the National Flood Insurance Program, including the cost implications for the property owner.

(a) In general.—Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as amended by section 401(a)(1), is amended by adding at the end the following:

“(e) Guidance on mold remediation.—

“(1) IN GENERAL.—The Administrator shall issue guidance relating to the identification of reasonable actions that a policyholder of coverage for flood insurance made available under this title may take to inspect and maintain the property to which that coverage applies—

“(A) after a flood recedes; and

“(B) in order to avoid damage to the property that is caused by mold, mildew, moisture, or water.

“(2) CONSIDERATIONS.—In developing guidance under paragraph (1), the Administrator shall consider—

“(A) any applicable laws and regulations;

“(B) the terms and conditions of the standard flood insurance policy;

“(C) technical best practices;

“(D) the costs of remediation in relation to the condition of a property described in that paragraph; and

“(E) the actions that the Administrator may reasonably expect a policyholder described in that paragraph to take, given the likely challenges faced by the policyholder after a flood.

“(3) REGULAR REVIEW.—The Administrator shall—

“(A) regularly review the guidance issued under paragraph (1); and

“(B) revise the guidance issued under paragraph (1) as the Administrator determines appropriate.

“(4) ANNUAL DISTRIBUTION.—The Administrator shall provide a copy of the guidance issued under paragraph (1) to a policyholder at the time of the purchase or renewal of a flood insurance policy sold under this title.”.

(b) Initial issuance.—Not later than 1 year after the date of enactment of this Act, the Administrator shall issue the guidance required under subsection (e) of section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as added by subsection (a) of this section.

(c) Accessibility, reasonableness and degree of damage.—Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as amended by subsection (a), is amended by adding at the end the following:

“(f) Exclusion of certain damage.—For purposes of determining whether damage caused by mold, mildew, moisture, or water to a property shall be excluded from coverage under the standard flood insurance policy—

“(1) subject to paragraph (2), only the degree of damage caused by mold, mildew, moisture, or water that could have been avoided through inspection and maintenance may be excluded from that coverage; and

“(2) the condition of the property to which the damage relates may not be considered to be attributable to the policyholder with respect to the property, including any failure by the policyholder to inspect and maintain the property after a flood recedes, if—

“(A) the policyholder was denied access to the property after the flood receded because of—

“(i) a lawful government order;

“(ii) a determination by local authorities that the property—

“(I) is unsafe or unstable; or

“(II) shall be condemned; or

“(iii) otherwise unsafe conditions;

“(B) a reasonable individual exercising reasonable judgment could not be expected to inspect, maintain, or mitigate the damage to the property under the circumstances; or

“(C) the policyholder faced particular challenges, including—

“(i) practical or financial difficulty in inspecting or maintaining the property;

“(ii) the need to address other more immediate priorities, including—

“(I) the health and well-being of the policyholder and the family of the policyholder;

“(II) the preservation of basic items;

“(III) displacement; and

“(IV) other issues that make inspection and maintenance of the property a near-term challenge for the policyholder; and

“(iii) the unavailability of contractors or other individuals to perform any required inspection and maintenance.”.

(a) In general.—Section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note) is amended—

(1) in the matter preceding paragraph (1), by striking “Not later” and inserting the following:

“(a) In general.—Not later”; and

(2) by adding at the end the following:

“(b) Deadline To file appeal.—The Director shall establish a deadline for filing an appeal under this section that is not less than 1 year after the date on which the decision being appealed was made.

“(c) Notification upon initial denial of claim.—The Director shall ensure that a claimant is provided with the rules, forms, and deadlines for an appeal under this section at the time a claim is first denied in full or in part, including—

“(1) the effective date of the denial;

“(2) a justification for the denial, including supporting documentation;

“(3) the date on which the period of limitation for instituting an action on the claim under section 1333 or 1341 of the National Flood Insurance Act of 1968 (42 U.S.C. 4053 and 4072), as applicable, will end; and

“(4) a point of contact through which the claimant can directly discuss an appeal with a representative of the Federal Emergency Management Agency.

“(d) Deadline To resolve appeal.—

“(1) IN GENERAL.—Not later than 90 days after the date on which a policyholder has submitted all necessary information relating to an appeal under this section, the Director shall provide an appeal decision in writing to the policyholder and insurer, including specific information for the resolution of the appeal.

“(2) ENFORCEMENT.—If the Director does not comply with the deadline under paragraph (1) with respect to an appeal, and the policyholder that brought the appeal is ultimately successful, the Director shall pay to the policyholder interest on the claim that is the subject of the appeal, which shall—

“(A) begin accruing on the date on which the policyholder files the appeal; and

“(B) be calculated using the rate of return on a 3-year Treasury bill, as in effect on the date described in subparagraph (A).

“(3) NOTIFICATION UPON DENIAL OF APPEAL.—If the Director denies an appeal filed by a policyholder under this section, the Director shall include with the notice of denial—

“(A) an explanation of the legal options of the policyholder for further challenging the denial; and

“(B) the date on which the period of limitation for instituting an action on the claim under section 1333 or 1341 of the National Flood Insurance Act of 1968 (42 U.S.C. 4053 and 4072), as applicable, will end.

“(e) Optional arbitration.—

“(1) IN GENERAL.—Not later than 180 days after the date of enactment of this subsection, the Director shall, by regulation, establish a process through which a flood insurance policyholder, instead of submitting an appeal under this section, may request that the appeal be heard through independent, binding arbitration.

“(2) RULE OF CONSTRUCTION.—Nothing in paragraph (1) may be construed to—

“(A) require a policyholder to submit to the arbitration described in that paragraph; or

“(B) prevent a policyholder from obtaining judicial review of the results of the arbitration described in that paragraph.”.

(b) Relation to regulations and other law.—Nothing in the amendments made by subsection (a) may be construed to require the Administrator to repeal the regulations promulgated under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011 note), as in effect on the day before the date of enactment of this Act, or to promulgate new regulations, except as necessary to implement those amendments.

Section 1348 of the National Flood Insurance Act of 1968 (42 U.S.C. 4084) is amended by adding at the end the following:

“(c) Accountability for underpayments.—If the Administrator determines through any audit that the pool or an insurance company or other private organization described in subsection (a) has not adjusted a claim in accordance with adjusting standards that are in effect as of the date on which the adjustment is performed and, as a result of that failure, has underpaid or overpaid a claim of a policyholder, the penalty imposed by the Administrator with respect to such a failure may not be less for an overpayment of a claim than for an underpayment of a claim.

“(d) GAO report.—Not later than 2 years after the date of enactment of this subsection, and triennially thereafter, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report regarding any fines or other penalties imposed by the Administrator under subsection (c).”.

(a) Use.—Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as amended by section 403(c), is amended by adding at the end the following:

“(g) Use of technical assistance reports.—When adjusting claims for any damage to or loss of property that is covered by flood insurance made available under this title, the Administrator may rely upon technical assistance reports, as defined in section 1312A(a), only if the reports are final and are prepared in compliance with applicable State and Federal laws regarding professional licensure and conduct.”.

(b) Disclosure.—Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amended by inserting after section 1312 (42 U.S.C. 4019) the following:

(c) Transmission of report without approval.—

(1) DEFINITION.—In this subsection, the term “final engineering report” means an engineering report, survey, or other document in connection with a claim for losses covered by a policy for flood insurance coverage made available under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.) that—

(A) is based on an on-site inspection;

(B) contains final conclusions with respect to an engineering issue or issues involved in the claim; and

(C) is signed by the responsible in charge or affixed with the seal of the responsible in charge, or both.

(2) TRANSMISSION.—A Write Your Own company or a National Flood Insurance Program direct servicer may, without obtaining further review or approval by the Administrator, transmit to a policyholder a final engineering report in the possession of the Write Your Own company or the direct servicer in connection with a claim submitted by the policyholder.

(a) Government program with industry assistance.—Section 1341 of the National Flood Insurance Act of 1968 (42 U.S.C. 4072) is amended to read as follows:

(b) Industry program with federal financial assistance.—Section 1333 of the National Flood Insurance Act of 1968 (42 U.S.C. 4053) is amended to read as follows:

(a) In general.—Part C of chapter II of the National Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.) is amended by adding at the end the following:

(b) Effective date; applicability.—The amendment made by subsection (a) shall apply to any contract or other agreement between a covered entity, as defined in section 1349(a) of the National Flood Insurance Act of 1968, as added by subsection (a), and a Write Your Own company that is entered into on or after the date of enactment of this Act.

Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as amended by section 406(a), is amended by adding at the end the following:

“(h) Proof of loss.—

“(1) DEADLINE FOR SUBMISSION OF SUPPLEMENTAL PROOF OF LOSS.—If a policyholder submits a proof of loss, or an equivalent submission, for a claim with respect to a policy for flood insurance coverage made available under this title by the deadline required under the standard flood insurance policy, the Administrator may not deny payment for any supplemental proof of loss submitted for flood damage sustained from the same flood event on the basis that the policyholder failed to include the flood damages on the initial proof of loss.

“(2) EFFECT OF SIGNATURE ON PROOF OF LOSS.—If a policyholder of a policy for flood insurance coverage made available under this title signs an initial or supplemental proof of loss described in paragraph (1), that act of signing may not preclude the policyholder from making supplemental claims to, or otherwise amending, the initial proof of loss.

“(i) No condition of payment.—Notwithstanding any other provision of law, or any term or condition of a standard flood insurance policy, the Administrator may not condition payment of an undisputed claim based on the submission of a signed and sworn to proof of loss.”.

(a) In general.—Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as amended by section 409, is amended by adding at the end the following:

“(j) Deadline for approval of claims.—

“(1) IN GENERAL.—The Administrator shall provide that, in the case of a claim for damage to or loss of property that is covered by a policy for flood insurance made available under this title—

“(A) except as provided in paragraph (2), not later than 60 days after the date on which a proof of loss or comparable submission is provided to the Administrator—

“(i) an initial determination regarding approval of the claim for payment or disapproval of the claim shall be made; and

“(ii) notification of the determination described in clause (i) shall be provided to the policyholder making the claim; and

“(B) payment of an approved claim shall be made as soon as possible after that approval.

“(2) EXTENSION OF DEADLINE.—The Administrator shall—

“(A) provide that the period described in paragraph (1)(A) may be extended by an additional period of 30 days under extraordinary circumstances; and

“(B) by regulation—

“(i) establish criteria for—

“(I) demonstrating the extraordinary circumstances described in subparagraph (A); and

“(II) determining to which claims the extraordinary circumstances described in subparagraph (A) apply; and

“(ii) provide that, if the deadline imposed under paragraph (1)(A), as extended under subparagraph (A), if applicable, is not satisfied, the amount of the claim to which the deadline relates shall be increased with interest, which shall begin accruing on the date on which the initial claim is filed.”.

(b) Applicability.—The amendment made by subsection (a) shall apply to any claim for damage to or loss of property that is covered by a policy for flood insurance made available under the National Flood Insurance Program that is made after the date of enactment of this Act.

Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as amended by section 410(a), is amended by adding at the end the following:

“(k) Final engineering reports.—

“(1) DEFINITIONS.—In this subsection—

“(A) the term ‘covered claim’ means any claim for losses covered by a policy for flood insurance coverage made available under this title; and

“(B) the term ‘final engineering report’ means an engineering report, survey, or other document in connection with a covered claim that—

“(i) is based on an on-site inspection;

“(ii) contains final conclusions with respect to an engineering issue or issues involved in the claim; and

“(iii) is signed by the responsible in charge or affixed with the seal of the responsible in charge, or both.

“(2) PROHIBITION ON MANIPULATION AND TRANSMISSION TO THIRD PARTIES.—The Administrator shall require that, in the case of any on-site inspection of a property by an engineer for the purpose of assessing any covered claim, the final engineering report—

“(A) may not—

“(i) include alterations by, or at the request of, anyone other than the person responsible for the report; or

“(ii) be transmitted to any other person before the final engineering report is transmitted to the policyholder who submitted the covered claim; and

“(B) shall include a certification, signed by the person responsible for the final engineering report, that the final engineering report does not contain any alterations described in subparagraph (A).”.

(a) Local floodplain managers.—Each regional office of the Federal Emergency Management Agency shall—

(1) provide training to local floodplain managers, agents, and claim adjusters in the region regarding the responsibilities and procedures of local floodplain managers with respect to conducting substantial damage and substantial improvement determinations;

(2) work with applicable State agencies to provide the training described in paragraph (1); and

(3) verify that the individuals described in paragraph (1) are completing the training described in that paragraph.

(b) Major disaster training.—After a flood that is declared a major disaster by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), the Administrator shall, if determined appropriate, provide—

(1) refresher training to prepare insurance claims adjusters for the unique circumstances of the major disaster; and

(2) any briefings that are necessary to prepare and inform floodplain managers, agents, and claim adjusters regarding any atypical circumstances and issues arising from the natural disaster.

(a) Administrative appeals.—Subsection (d) of section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C. 4019), as added by section 401(a)(1), is amended by adding at the end the following:

“(5) AWARDS FOR COSTS IN ADMINISTRATIVE PROCEEDINGS.—

“(A) IN GENERAL.—If the claimant prevails in any appeal to the Administrator of the disallowance or partial disallowance of a claim for losses covered by flood insurance made available under this title, the Administrator shall award costs of the appeal, including attorney fees, any proceeding expenses, and engineering and other expert expenses, to the claimant.

“(B) DEFINITION.—For purposes of this paragraph, the term ‘prevail’ means to be awarded a greater amount by the Administrator than the amount of the last, best offer from the Administrator with respect to the claim of the claimant.”.

(b) Judicial review.—

(1) GOVERNMENT PROGRAM WITH INDUSTRY ASSISTANCE.—Subsection (b) of section 1341 of the National Flood Insurance Act of 1968 (42 U.S.C. 4072), as added by section 407(a), is amended by adding at the end the following:

“(4) ATTORNEY FEES AND OTHER LITIGATION COSTS.—

“(A) IN GENERAL.—If the claimant prevails in an action under this subsection, the court shall award reasonable costs of litigation, including attorney fees, litigation expenses, and engineering and other expert expenses, to the claimant.

“(B) SUBROGATION.—Any award under subparagraph (A) shall be paid by the Administrator and, upon such payment, the Administrator shall be subrogated to the rights of the claimant to recover such costs for which the Administrator has compensated the claimant from any insurance company or other insurer or insurance adjustment organization that may be responsible for the disallowance or partial disallowance of the claim.

“(C) DEFINITION.—For purposes of this paragraph, the term ‘prevail’ means to be awarded a greater amount by the court than the amount of the last, best offer from the Administrator with respect to the claim of the claimant.”.

(2) INDUSTRY PROGRAM WITH FEDERAL FINANCIAL ASSISTANCE.—Subsection (b) of section 1333 of the National Flood Insurance Act of 1968 (42 U.S.C. 4053), as amended by section 407(b), is amended by adding at the end the following:

“(4) ATTORNEY FEES AND OTHER LITIGATION COSTS.—

“(A) IN GENERAL.—If the claimant prevails in an action under this subsection, the court shall award reasonable costs of litigation, including attorney fees, litigation expenses, and engineering and other expert expenses, to the claimant.

“(B) SUBROGATION.—Any award under subparagraph (A) shall be paid by the Administrator and, upon such payment, the Administrator shall be subrogated to the rights of the claimant to recover such costs for which the Administrator has compensated the claimant from any company or other insurer responsible for the disallowance or partial disallowance of the claim.

“(C) DEFINITION.—For purposes of this paragraph, the term ‘prevail’ means to be awarded a greater amount by the court than the amount of the last, best offer from the insurer or Administrator with respect to the claim of the claimant.”.

Subsection (b) of section 1341 of the National Flood Insurance Act of 1968 (42 U.S.C. 4072), as amended by section 413(b)(1), is amended by adding at the end the following:

“(5) REPRESENTATION BY DEPARTMENT OF JUSTICE.—If a claimant institutes an action under this subsection—

“(A) the Administrator shall refer the matter to the Attorney General; and

“(B) the Attorney General—

“(i) shall represent the Administrator or the Write Your Own company, as applicable, in the action; and

“(ii) may not seek to have the court dismiss an action with potentially meritorious claims based on good faith errors or omissions by the claimant in the claimant's proof of loss.”.

(a) Definitions.—In this section—

(1) the term “covered property” means a property that is or may be covered by flood insurance under the National Flood Insurance Program; and

(2) the term “covered policyholder” means a policyholder or potential policyholder of flood insurance under the National Flood Insurance Program for a covered property.

(b) Pilot program.—Not later than 180 days after the date of enactment of this Act, the Administrator shall establish a pilot program under which Write Your Own companies and National Flood Insurance Program direct servicers shall, at the request of a covered policyholder and before providing or renewing insurance coverage with respect to a covered property under the National Flood Insurance Program, investigate the pre-existing structural condition of the covered property for any issues that could result in the denial of a claim under the National Flood Insurance Program for damage to or loss of the covered property.

Part C of chapter II of the National Flood Insurance Act of 1968 (42 U.S.C. 4081 et seq.), as amended by section 408, is amended by adding at the end the following:

(a) In general.—Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et seq.), as amended by section 207, is amended by adding at the end the following:

(b) Availability of flood insurance coverage.—Section 1305(c) of the National Flood Insurance Act of 1968 (42 U.S.C. 4012(c)) is amended—

(1) in paragraph (1), by striking “, and” at the end and inserting a semicolon;

(2) in paragraph (2), by striking the period at the end and inserting “; and”; and

(3) by adding at the end the following:

“(3) given satisfactory assurance that, not later than October 1, 2022, property flood hazard disclosure requirements will have been adopted for the area (or subdivision) that meet the requirements of section 1328.”.