Public Law 108-264 (SRL)

LAW

712

118

J.V()-£.,V'±---':)

30, 2004

Public Law 108-264
108th

An Act
June

2004

To amend the National Flood InsuranCe Act of 1968 to reduce los~es to orooertws
for which repetitive flood insurance claim payments have been

[So

Be it enacted by the Senate and House
the United States ofAmerica in

'of

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

note.

(a) SHORT TITLE.-This Act
be cited as the
Bereuter-Blumenauer Flood Insurance
Act of 2004".
(b) TABLE OF eONTENTS.-The table of contents for this Act
is as follows:
1.
2.

TITLE I-AMENDMENTS TO FLOOD INSURANCE ACT OF 1968

TITLE JI-MISCELLANEOUS PROVISIONS

to

42 USC 4011
note.

flood insurance premiums.
schedule or fee payment arrangements.

SEC. 2. CONGRESSIONAL FINDINGS.

The

finds that­
national flood insurance program­
(A) identifies the flood risk;

(Bl
flood risk information to the public;

(e)
State and local governments to make

use
to constrict the develop­
ment of land which is
to flood
and mini­
mize damage caused
and
(D) makes flood
available on a nationwide
basis that would otherwise not be
to accelerate
(1)

PUBLIC

118 STAT. 714

30,

TITLE I-AMENDMENTS TO FLOOD

INSURANCE ACT OF 1968

SEC. 101. EXTENSION OF PROGRAM
AUTHORIZATIONS.

AND

CONSOLIDATION

O}<'

BORROWING AUTHORITY.~The first sentence of section
of the National Flood Insurance Act of 1968 (42 U.S.C.
is amended
striking
December" and all that
follows
",
and
the date 0}1<'LU""U
in section
and".
(b) AUTHORITY FOR CONTRACTS.-Section 1319 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4026), is amended by
striking "after" and all that follows and
"after Sp"j-p'm
30,2008.".
(c) EMERGENCY IMPLEMENTATION.~Section 1336(a) of the
National Flood Insurance Act of 1968
U.s.C. 4056(a», is
amended by
the
all that follows through
"in accordance"
the period
on the
date specified in section 1319,
.
(d) AUTHORIZATION OF ApPROPRIATIONS FOR
1376(c) of the National Flood Insurance Act
1968 (42 U.S.C.
"through" and all that follows
4127(c», is amended
and inserting
in section
for studies
under this title.".
SEC. 102. ESTABLISHMENT OF PILOT PROGRAM FOR MITIGATION OF
SEVERE REPETITIVE LOSS PROPERTIES.

(a) IN GENERAL.-The National Flood Insurance Act of 1968
is amended by
after section 1361 (42 U.S.C. 4102) the
following:
42 USC 4102a.

"SEC. 1361A. PILOT PROGRAM FOR MITIGATION OF SEVERE REPET­
ITIVE LOSS PROPERTIES.

AUTHORITY.-To the extent amounts are made available
for use under this
the Director
to the limita­
tions of this section, provide financial
to States and
communities that decide to
in the
estab­
lished under this section for
to severe
repetitive loss properties (as
term is defined
subsection
(b» to mitigate flood damage to such
and losses to
the National Flood Insurance Fund from such nrt,n"'rT'
SEVERE REPETITIVE Loss
the term 'severe repetitive loss property'

that-

SINGLE-FAMILY
of 1 to 4

PROPERTIES.~In

the case of a property
such term means a property

is covered under a contract for flood insurance
made available under this
and
has incurred flood-related
"(i) for which 4 or more
claims payments
have .been ~ade under flood insurance coverage under
tItle, wlth the amount of each such claim ",,,,,.Lv'lUU'l'>
and with the cumulative amount of such claims
payments
$20,000; or

PUBLIC LAW

to a
ties:

2004

118 STAT. 715

"(ii) for which at least 2 separate claims payments
have been made under such coverage, with the cumu­
lative
of such claims exceeding the value of
the nr.,nA,rt"
"(2) MULTIFAi\ULY PROPERTIES.-In the case of a property Regulations.
of 5 or more
such term shall have such
as the Director shall by regulation provide.
ELIGIBLE ACTIVITIES.-Amounts provided under this section
may be used only for the following activi­
"(1) MITIGATION ACTIVITIES.-To carry out mitigation activi­

ties that reduce flood damages to severe repetitive loss prop­

elevation, relocation, demolition, and

flood proofing of "trllt'i-"
and minor physical localized flood

and the demolition and rebuilding of

control
to at
Base Flood Elevation or
if required

any local ordinance.

loss prop-

as
the Director may
to a State or
or community
3 times the amount that the
as the Director shall
that the State or commu­
contribute from
funds for
out
activities to be funded with such

under section
of the Robert T ......t"tttwrl Vl;sas,ter
and Emergency Assistance Act (42 U.S.C. 5165) that speci­
fies how the State intends to reduce the number of severe
repetitive loss
and
"(B) the
after consultation with
the State, that the State has
actions to reduce the
number of such properties.
NON-FEDERAL FUNDS.-For
of this
the term 'non-Federal funds'
State or local agency
funds, in-kind contributions, any
paid to staff to carry
out the eligible activities of the
the value of the
time and services contributed by
' ... t'M....~" to
out such
activities (at a rate determined by the
value
of any donated material or building
value of any
lease on a
"(e) NOTICE OF MITIGATION PROGRAM.­
IN
severe

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30, 2004

loss
in
language, within that State
or community­
"(A) that their property meets the definition of a severe
repetitive loss property under this
"(B) that they may receive an offer
assistance under
this sectlOJn;
of assistance potentially available
under
"(D) ofthe
of Uv'~U',H""5 such offer of assist­
ance under this
and
"(E) that there is a
to appeal under this section.
IDENTIFICATION OF SEVERE REPETITIVE LOSS PROP­
ERTIES.-The Director shall take such
to identify severe
loss T\T',rm,'rtl
information to the
States
"(t) STANDARDS FOR MITIGATION rh, __.~~
program under
this section for providing assistance for
activities for severe
repetitive loss
shall be
the following limita­
hons:
"(1) PRIORITY.-In
for which
under subsection
to provide assistance for
the Director shall
assistance for
in the
that will result
the
savings to
the National Flood Insurance
in the shortest period of
time, in a manner consistent with the allocation formula under
(5).

manner that
to owners of severe
activities under

Director shall
assistance in a
States and communities to make offers
loss
to take eligible

"(3)
for which eligible
activities under subsection (c) to provide assistance with ",",nA"t
to a severe repetitive loss property, the relevant States and
communities shall
to the extent practicable, with the
owner of the property.
DEFERENCE TO
MITIGATION DECISIONS.-The
Director shall not, by
or order, establish a
for
eligible
under this section that
preference
one
of
activity
over any other type or
"(5) ALLOCATION.­
"(A) IN
of the total amount
section in any fiscal
assistance to a State,
that
based upon the nplrt'pn1"<"",·
of severe
loss
State.
funds allocated to a
and
communities within
State, under
that have not been
the end of each
year shall be redistributed
to other States
and communities to carry
activities in accord­
ance with this section.
EXCEPTION.-Of the total amount made available
for
under this section in any fiscal
10
percent shall be made available to communities

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30,2004

118 STAT. 717

contain one or more severe
loss prop~
and
are located in States that receive little or
determined by the
under
under subparagraph
an offer to provide assistance
eligible activity under sub­
shall notify each holder
of such offer and
or community
take action
under subsection (c)(2) to
a severe repetitive
property
only if the following requirements are met:
USE OF PROPERTy.-The State or
enters
into an agreement with the Director that
that the property
will be
in a
is consistent with
of section
the Robert T. Stafford
Relief and
ance Act (42
5170c(b)(2)(B» for
or from which a structure will
property

such section 404(b).

OFFERS.-The Director shall provide assistance in a

manner that
States and communities to make offers

and of associated

to owners of severe repetitive loss
land to
in eligible activities as soon as

PRICE.-The amount of
offer is

not less than the
of-

the amount of the original purchase price of the
property, when purchased
the holder of the current
policy of flood insurance under
title;
"(B) the total amount
at the time the offer to
under any loan secured by a recorded
and
equal to the fair market value of the
before the most recent flood event
or an amount
to the current
of
COMPARABLE HOUSING PAYMENT.-If a

made under
(2) is less than the

to purchase a comparable
dwelling

outside the flood hazard area in the same community, the

Director shall make available an additional relocation n""NY\,"nt

to the homeowner-occupant to
to the difference.

INCREASED PREMIUMS IN
OF REFUSAL To MITl-

GATE.­
IN GENERAL.-In
case in which the owner of a
severe repetitive loss T'()r,Ar,·" refuses an offer to take action
under
(1) or
subsection
with respect to
such
Director
notify each holder of a recorded interest on the Notification,
property of such
and
"(B)
subsections (a) through
of sec­
chargeable premium rate with
tion 1308, thereafter
",.,o'no,(>t to the
shall be the amount equal to 150
of the
rate for the
at the
that the offer
any other
premium
property

118

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PUBLIC LAW

2004
(2)
DA..'vi­

of section
loss property does

in £>"Y'n&.£>t,
this title
the property.
"(5) NOTICE OF CONTINUED OFFER.-Upon each renewal
or modification of
flood insurance
under this
title for a severe
loss
shall
the
the offer
subsection
is still

"(6)
"(A) IN
owner of a severe

loss property may appeal a determination of the

to take action

to such

on independent
contractor estimates or appraisals, the nron",,..t
believes that the
offered for
erty is not an accurate
of
the
or the amount of Federal
for
when combined with funds
from non-Federal sources, will not cover the actual
cost of
a result of such action, the
or maintenance of any
or
building, structure, or object included
for inclusion
the National .n";"'l;:>CC;
Places will be
with,

rupted.

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30, 2004

"(iv) The
that resulted in the flood insur­
ance claims
in subsection (b)(2) for the prop­
erty resulted from "1.M "",\.,a.,, actions by a third party
in violation of
or local law,

if a
determination is made in favor of
the property owner under subparagraph (A)
the
third party hearing such appeal shall
the
Director to red uce the chargeable risk
for flood insurance coverage for the nl'r,,"'''.-tu
in the appeal from the amount
graph (l)(B) or
to the
paid
the
offer to take action under paragraph (1) or (2) of sub­
section (c); and
if a final determination is made that the
under
(A) do not
the
shall ,-,w,,,,,, ,,,,.
the
risk
premium rate
nr(lnl'rtv to the amount estab­
lished
as
and
amount necessary to cover the
bility of such increased rates during
the
the third party
is compensated for
shall be borne­
"(i) by
owner of the property
appeal, if the final determination in the
the
under
do not

STAT. 719

118

Deadline.

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PUBLIC LAW

2004

do exist .
.-Not later than 6 months after the date
of
enactment of the
Flood Insurance Reform Act of
submit a
the
administration for
under this """'''Ct'''''''
and
the Committee on
Urban
of the
and
"Oi) the Committee on Financial Senrices of the
Houseof~on,.£,oonr<.tl\!OO

Deadline.

DISCRETIONARY ACTIONS IN CASES OF FRAUDULENT
CLAlMs.-If the Director determines that a fraudulent claim was
made under flood insurance coverage under this title for a severe
V"y,,,t,,ti,,'o loss
the Director
"(1)
policy and deny
to such policy­
holder of any new flood insurance coverage under this title
for the property; or
with such policyholder upon
"(2) refuse to renew the
expiration and
the
new flood insurance
of
coverage under this title
for the
RULES.­
"(1) IN GENERAL.-The Director shall, by rule-­
"(A) subject to subsection (D( 4), develop
the distribution of funds to States and communities
out eligible activities under this
and
ensure that the procedures
under para­
(1)­
"(i)
the Director to notify States and
communities of the availability of funding under this
section, and that participation in the pilot program
under this section is optional;
provide that the Director may assist States
and communities in
loss
properties within States or
select
"(iii) allow each State
properties to be the
and
the
eligible
with
to each severe
and
require each State or
submit
a list severe repetitive loss
Director
that the State or
to be the
of eligible activities
this section.
after the date
CONSULTATION.-Not later than 90
of enactment of this Act, the Director shall consult with State
and local officials in
out
and provide
an opportunity for an
of data
and arguments from such
"(k) FUNDING.­
IN GENERAL.-Pursuant to section 131O(a)(8), the
Director may use amounts from the National Flood Insurance
Fund to provide assistance under this section in each of fiscal
years 2005, 2006,
2008, and 2009,
that the amount
so used in each such
year may not exceed $40,000,000
and shall remain available until
Notwithstanding

PUBLIC LAW 108-264-JUNE 30, 2004

118

other
of this title, amounts made available pursu­
to this subsection shall not be subject to offsetting collec­
tions through
rates for flood insurance coverage under

this title.

ADMINISTRATIVE EXPENSES.-Of the amounts made
under this
the Director may use up to
with the administration of
for expenses ct"H'V\.OlC1
section.
TERMINATION.-The Director may not
assistance

under this section to any State or community after ",p:"rpm

30,2009.".

(b) AVAILABILITY OF' NATIONAL FLOOD INSURANCE FUND

fu\IOUNTS.-Section 1310(a) of the National Flood Insurance Act

is amended-

of 1968 (42 U.S.C.
in
"and" at the

by
(8)
inserting the

for
a"'~l,,"alH..'" under section 1361A to States

and communities for
actions under such section with

to severe repetitive loss properties, but
to the

provided in section
and".
SEC. 103. AMENDMENTS TO EXISTING FLOOD MITIGATION ASSIST·

ANCE PROGRAM:.

STANDARD FOR APPROVAL OF MITIGATION PLANs.-Section
1366(e)(3) of the National Flood Insurance Act of 1968 (42 U.S.C.
at the end the following new sentence:
4104c) is amended by
priority
"The Director may approve only mitigation plans that
for
to such
or to such subsets
properties,
as are in
best
of
National Flood Insurance Fund.".
(b) PRIORITY FOR MITIGATION ASSISTANCE.-Section 1366(e) of
the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is
amended by
paragraph
and
the following:
"(4) PRIORITY FOR MITIGATION ASSISTANCE.-In n1"'~\T1.(hn

grants under this subsection for

Director shall
first priority for LU"L'UJ.Hj:;

or to such
of such

that the Director
are in the best interests

of the National Flood Insurance Fund and for which matching

amounts under subsection
are available.".

AND
(c) COORDINATION WITH
1366 of the National Flood Insurance Act of 1968
at the end the following:
is amended
"(m) COORDINATION WITH STATES AND
Director shall, in consultation and coordination with States and
communities take such actions as are appropriate to encourage
and improve participation in the national flood insurance program
of owners of properties,
owners of
that are
not located in areas.
flood
(the lOO-year
flood
areas.".
floodplain), but are located
(d) FUNDING.-Section 1367 of
National Flood Insurance
Act of 1968 (42 U.S.C. 4104d) is amended­
(1) in subsection
by
(1) and

the following:

"(1) in each fiscal year, amounts from the National Flood

Insurance Fund not exceeding $40,000,000, to remain available

until

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