42 USC Chapter 50 - National Flood Insurance

§ 3939

TITLE 42—THE PUBLIC HEALTH AND WELFARE

of Title 31, Money and Finance, and item 2 on page 182
of House Document No. 103–7.

§ 3939. Applicability of antitrust laws
Nothing contained herein shall affect the applicability of the Federal antitrust laws to the
activities of the corporation and the partnership
created under this chapter and of the persons
participating therein or in partnerships, limited
partnerships, or joint ventures with either of
them.
(Pub. L. 90–448, title IX, § 909, Aug. 1, 1968, 82
Stat. 550.)
§ 3940. Reservation of right to repeal, alter, or
amend chapter
The right to repeal, alter, or amend this chapter at any time is expressly reserved.
(Pub. L. 90–448, title IX, § 910, Aug. 1, 1968, 82
Stat. 550.)
§ 3941. State or local taxation or regulation; access to judicial process
Nothing contained in this chapter shall preclude a State or other local jurisdiction from
imposing, in accordance with the laws of such
State or other local jurisdiction, any valid nondiscriminatory tax, obligation, or regulation on
the partnership as a taxable and or legal entity,
but no limited partner of the partnership not
otherwise subject to taxation or regulation by
or judicial process of a State or other local jurisdiction shall be subject to taxation or regulation by or subject to or denied access to judicial
process of such State or other local jurisdiction,
or be subject or denied access to any greater extent, because of activities of the corporation or
partnership within such State or other local jurisdiction.
(Pub. L. 90–448, title IX, § 912, as added Pub. L.
91–351, title VIII, § 711, July 24, 1970, 84 Stat. 463.)
CHAPTER 50—NATIONAL FLOOD INSURANCE
Sec.

4001.
4002.
4003.

Congressional findings and declaration of purpose.
Additional Congressional findings and declaration of purpose.
Additional definitions.
SUBCHAPTER I—THE NATIONAL FLOOD
INSURANCE PROGRAM

4011.
4012.
4012a.
4013.
4014.
4015.
4016.

4017.
4018.
4019.
4020.
4021.
4022.
4023.
4024.

Authorization to establish and carry out program.
Scope of program and priorities.
Flood insurance purchase and compliance requirements and escrow accounts.
Nature and limitation of insurance coverage.
Estimates of premium rates.
Chargeable premium rates.
Financing provisions; issuance of notes or
other obligations; limitation; report to Congressional committees; deposits in Fund.
National Flood Insurance Fund.
Operating costs and allowances; definitions.
Payment of claims.
Dissemination of flood insurance information.
Repealed.
State and local land use controls.
Properties in violation of State and local law.
Coordination with other programs.

Page 5158

Sec.

4025.
4026.
4027.
4028.

Flood insurance advisory committee.
Expiration of program.
Biennial report to President.
John H. Chafee Coastal Barrier Resources
System.
Colorado River Floodway.
Grants for repetitive insurance claims properties.
Treatment of certain payments.

4029.
4030.
4031.

SUBCHAPTER II—ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE PROGRAM
4041.

Implementation of program.
PART A—INDUSTRY PROGRAM WITH FEDERAL
FINANCIAL ASSISTANCE

4051.

Industry flood insurance pool; requirements
for participation.
Agreements with flood insurance pool.
Adjustment and payment of claims; judicial
review; limitations; jurisdiction.
Premium equalization payments; basis; aggregate amount; establishment of designated periods.
Reinsurance coverage.
Emergency implementation of flood insurance program; applicability of other provisions of law.

4052.
4053.
4054.

4055.
4056.

PART B—GOVERNMENT PROGRAM WITH INDUSTRY
ASSISTANCE
4071.

Federal operation of program; determination
by Director; fiscal agents; report to Congress.
Adjustment and payment of claims; judicial
review; limitations; jurisdiction.

4072.

PART C—GENERAL PROVISIONS
4081.

Services by insurance industry; contracts,
agreements, or other arrangements.
Use of insurance pool, companies, or other
private organizations for certain payments.
Settlement of claims; arbitration.
Records and audits.

4082.
4083.
4084.

SUBCHAPTER III—COORDINATION OF FLOOD INSURANCE
WITH
LAND-MANAGEMENT
PROGRAMS IN FLOOD-PRONE AREAS
4101.
4102.
4102a
4103.
4104.
4104a.
4104b.
4104c.
4104d.
4105.
4106.
4107.

Identification of flood-prone areas.
Criteria for land management and use.
Pilot program for mitigation of severe repetitive loss properties.
Repealed.
Flood elevation determinations.
Notice requirements.
Standard hazard determination forms.
Mitigation assistance.
National Flood Mitigation Fund.
Disaster mitigation requirements; notification to flood-prone areas.
Nonparticipation in flood insurance program.
Consultation with local officials; scope.

SUBCHAPTER IV—GENERAL PROVISIONS
4121.
4122.

4123.
4124.
4125.
4126.
4127.
4128.
4129.

Definitions.
Studies of other natural disasters; cooperation and consultation with other departments and agencies.
Advance payments.
Applicability of fiscal controls.
Finality of certain financial transactions.
Administrative expenses.
Authorization of appropriations; availability.
Rules and regulations.
Federal Insurance Administrator; establishment of position.

Page 5159

TITLE 42—THE PUBLIC HEALTH AND WELFARE

§ 4001. Congressional findings and declaration of
purpose
(a) Necessity and reasons for flood insurance
program
The Congress finds that (1) from time to time
flood disasters have created personal hardships
and economic distress which have required unforeseen disaster relief measures and have
placed an increasing burden on the Nation’s resources; (2) despite the installation of preventive
and protective works and the adoption of other
public programs designed to reduce losses
caused by flood damage, these methods have not
been sufficient to protect adequately against
growing exposure to future flood losses; (3) as a
matter of national policy, a reasonable method
of sharing the risk of flood losses is through a
program of flood insurance which can complement and encourage preventive and protective measures; and (4) if such a program is initiated and carried out gradually, it can be expanded as knowledge is gained and experience is
appraised, thus eventually making flood insurance coverage available on reasonable terms and
conditions to persons who have need for such
protection.
(b) Participation of Federal Government in flood
insurance program carried out by private insurance industry
The Congress also finds that (1) many factors
have made it uneconomic for the private insurance industry alone to make flood insurance
available to those in need of such protection on
reasonable terms and conditions; but (2) a program of flood insurance with large-scale participation of the Federal Government and carried
out to the maximum extent practicable by the
private insurance industry is feasible and can be
initiated.
(c) Unified national program for flood plain management
The Congress further finds that (1) a program
of flood insurance can promote the public interest by providing appropriate protection against
the perils of flood losses and encouraging sound
land use by minimizing exposure of property to
flood losses; and (2) the objectives of a flood insurance program should be integrally related to
a unified national program for flood plain management and, to this end, it is the sense of Congress that within two years following the effective date of this chapter the President should
transmit to the Congress for its consideration
any further proposals necessary for such a unified program, including proposals for the allocation of costs among beneficiaries of flood protection.
(d) Authorization of flood insurance program;
flexibility in program
It is therefore the purpose of this chapter to
(1) authorize a flood insurance program by
means of which flood insurance, over a period of
time, can be made available on a nationwide
basis through the cooperative efforts of the Federal Government and the private insurance industry, and (2) provide flexibility in the program
so that such flood insurance may be based on
workable methods of pooling risks, minimizing

§ 4001

costs, and distributing burdens equitably among
those who will be protected by flood insurance
and the general public.
(e) Land use adjustments by State and local governments; development of proposed future
construction; assistance of lending and credit institutions; relation of Federal assistance
to all flood-related programs; continuing
studies
It is the further purpose of this chapter to (1)
encourage State and local governments to make
appropriate land use adjustments to constrict
the development of land which is exposed to
flood damage and minimize damage caused by
flood losses, (2) guide the development of proposed future construction, where practicable,
away from locations which are threatened by
flood hazards, (3) encourage lending and credit
institutions, as a matter of national policy, to
assist in furthering the objectives of the flood
insurance program, (4) assure that any Federal
assistance provided under the program will be
related closely to all flood-related programs and
activities of the Federal Government, and (5) authorize continuing studies of flood hazards in
order to provide for a constant reappraisal of
the flood insurance program and its effect on
land use requirements.
(f) Mudslides
The Congress also finds that (1) the damage
and loss which results from mudslides is related
in cause and similar in effect to that which results directly from storms, deluges, overflowing
waters, and other forms of flooding, and (2) the
problems involved in providing protection
against this damage and loss, and the possibilities for making such protection available
through a Federal or federally sponsored program, are similar to those which exist in connection with efforts to provide protection
against damage and loss caused by such other
forms of flooding. It is therefore the further purpose of this chapter to make available, by means
of the methods, procedures, and instrumentalities which are otherwise established or available under this chapter for purposes of the flood
insurance program, protection against damage
and loss resulting from mudslides that are
caused by accumulations of water on or under
the ground.
(Pub. L. 90–448, title XIII, § 1302, Aug. 1, 1968, 82
Stat. 572; Pub. L. 91–152, title IV, § 409(a), Dec. 24,
1969, 83 Stat. 397; Pub. L. 93–234, title I, § 108(a),
Dec. 31, 1973, 87 Stat. 979; Pub. L. 103–325, title V,
§ 552(d), Sept. 23, 1994, 108 Stat. 2269.)
REFERENCES IN TEXT
For effective date of this chapter, referred to in subsec. (c), see section 1377 of Pub. L. 90–448, set out as an
Effective Date note below.
This chapter, referred to in subsecs. (d) to (f), was in
the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out below and Tables.
AMENDMENTS
1994—Subsec. (g). Pub. L. 103–325 struck out subsec.
(g) which read as follows: ‘‘The Congress also finds that

§ 4001

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(1) the damage and loss which may result from the erosion and undermining of shorelines by waves or currents in lakes and other bodies of water exceeding anticipated cyclical levels is related in cause and similar
in effect to that which results directly from storms,
deluges, overflowing waters, and other forms of flooding, and (2) the problems involved in providing protection against this damage and loss, and the possibilities
for making such protection available through a Federal
or federally sponsored program, are similar to those
which exist in connection with efforts to provide protection against damage and loss caused by such other
forms of flooding. It is therefore the further purpose of
this chapter to make available, by means of the methods, procedures, and instrumentalities which are otherwise established or available under this chapter for purposes of the flood insurance program, protection
against damage and loss resulting from the erosion and
undermining of shorelines by waves or currents in
lakes and other bodies of water exceeding anticipated
cyclical levels.’’
1973—Subsec. (g). Pub. L. 93–234 added subsec. (g).
1969—Subsec. (f). Pub. L. 91–152 added subsec. (f).
EFFECTIVE DATE
Section 1377 of title XIII of Pub. L. 90–448 provided
that: ‘‘This title [enacting this chapter, amending section 2414 of this title, repealing sections 2401 to 2413 and
2415 to 2421 of this title, and enacting provisions set out
as notes under this section] shall take effect one hundred and twenty days following the date of its enactment [Aug. 1, 1968], except that the Secretary, on the
basis of a finding that conditions exist necessitating
the prescribing of an additional period, may prescribe
a later effective date which in no event shall be more
than one hundred and eighty days following such date
of enactment.’’
SHORT TITLE OF 2010 AMENDMENT
Pub. L. 111–250, § 1, Sept. 30, 2010, 124 Stat. 2630, provided that: ‘‘This Act [amending sections 4016 and 4026
of this title] may be cited as the ‘National Flood Insurance Program Reextension Act of 2010’.’’
Pub. L. 111–196, § 1, July 2, 2010, 124 Stat. 1352, provided that: ‘‘This Act [amending sections 4016 and 4026
of this title and enacting provisions set out as a note
under section 4016 of this title] may be cited as the ‘National Flood Insurance Program Extension Act of
2010’.’’
SHORT TITLE OF 2006 AMENDMENT
Pub. L. 109–208, § 1, Mar. 23, 2006, 120 Stat. 317, provided that: ‘‘This Act [amending section 4016 of this
title] may be cited as the ‘National Flood Insurance
Program Enhanced Borrowing Authority Act of 2006’.’’
SHORT TITLE OF 2005 AMENDMENTS
Pub. L. 109–106, § 1, Nov. 21, 2005, 119 Stat. 2288, provided that: ‘‘This Act [amending section 4016 of this
title] may be cited as the ‘National Flood Insurance
Program Further Enhanced Borrowing Authority Act
of 2005’.’’
Pub. L. 109–65, § 1, Sept. 20, 2005, 119 Stat. 1998, provided that: ‘‘This Act [amending section 4016 of this
title] may be cited as the ‘National Flood Insurance
Program Enhanced Borrowing Authority Act of 2005’.’’
SHORT TITLE OF 2004 AMENDMENT
Pub. L. 108–264, § 1(a), June 30, 2004, 118 Stat. 712, provided that: ‘‘This Act [enacting sections 4030 and 4102a
of this title, amending sections 4011, 4015 to 4017, 4022,
4026, 4056, 4104c, 4104d, 4121, and 4127 of this title, and
enacting provisions set out as notes under this section
and sections 4011 and 4101 of this title] may be cited as
the ‘Bunning-Bereuter-Blumenauer Flood Insurance
Reform Act of 2004’.’’
SHORT TITLE OF 2003 AMENDMENTS
Pub. L. 108–171, § 1, Dec. 6, 2003, 117 Stat. 2064, provided
that: ‘‘This Act [amending sections 4016, 4026, 4056, and

Page 5160

4127 of this title and enacting provisions set out as a
note under section 4016 of this title] may be cited as the
‘National Flood Insurance Program Reauthorization
Act of 2004’.’’
Pub. L. 108–3, § 1, Jan. 13, 2003, 117 Stat. 7, provided
that: ‘‘This Act [amending sections 4016, 4026, 4056, and
4127 of this title and enacting provisions set out as a
note under section 4016 of this title] may be cited as the
‘National Flood Insurance Program Reauthorization
Act of 2003’.’’
SHORT TITLE OF 1994 AMENDMENT
Section 501 of title V of Pub. L. 103–325 provided that:
‘‘This title [enacting sections 4104b to 4104d and 5154a of
this title, amending this section, sections 4003, 4011,
4012a, 4013, 4015, 4017, 4022, 4026, 4027, 4029, 4056, 4081, 4101,
4104a, 4106, 4121, and 5154 of this title, and sections 1784,
1820, 3305, and 4521 of Title 12, Banks and Banking, repealing section 4103 of this title, enacting provisions
set out as notes under this section and sections 4011,
4013, 4014, 4101 to 4103, and 4104c of this title, and repealing provisions set out as a note under section 4015 of
this title] may be cited as the ‘National Flood Insurance Reform Act of 1994’.’’
SHORT TITLE OF 1973 AMENDMENT
Pub. L. 93–234, § 1, Dec. 31, 1973, 87 Stat. 975, provided:
‘‘That this Act [enacting sections 4002, 4003, 4012a, 4104,
4105 to 4107, and 4128 of this title, amending this section, sections 4013 to 4016, 4026, 4054, 4056, 4101, and 4121
of this title, and sections 24 and 1709–1 of Title 12,
Banks and Banking, and repealing section 4021 of this
title] may be cited as the ‘Flood Disaster Protection
Act of 1973’.’’
SHORT TITLE
Section 1301 of title XIII of Pub. L. 90–448 provided
that: ‘‘This title [enacting this chapter, amending section 2414 of this title, repealing sections 2401 to 2413 and
2415 to 2421 of this title, and enacting provisions set out
as a note under this section] may be cited as the ‘National Flood Insurance Act of 1968’.’’
REGULATIONS
Pub. L. 103–325, title V, § 583, Sept. 23, 1994, 108 Stat.
2287, as amended by Pub. L. 109–295, title VI, § 612(c),
Oct. 4, 2006, 120 Stat. 1410, provided that: ‘‘The Administrator of the Federal Emergency Management Agency
and any appropriate Federal agency may each issue
any regulations necessary to carry out the applicable
provisions of this title [see Short Title of 1994 Amendment note above] and the applicable amendments made
by this title.’’
[For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.]
[For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]
EVALUATION OF EROSION HAZARDS
Pub. L. 103–325, title V, § 577(a)–(g), Sept. 23, 1994, 108
Stat. 2281–2283, required the Director of the Federal
Emergency Management Agency to submit a report no
later than two years after Sept. 23, 1994, evaluating erosion hazards and estimating the impact of erosion on
flood insurance claims.

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TITLE 42—THE PUBLIC HEALTH AND WELFARE

RELATION OF TITLE V OF PUB. L. 103–325 TO STATE
AND LOCAL LAWS
Section 584 of title V of Pub. L. 103–325 provided that:
‘‘This title [see Short Title of 1994 Amendment note
above] and the amendments made by this title may not
be construed to preempt, annul, alter, amend, or exempt any person from compliance with any law, ordinance, or regulation of any State or local government
with respect to land use, management, or control.’’
FLOODPLAIN MANAGEMENT
For provisions relating to the reduction of the risk of
flood loss, the minimization of the impact of floods on
human safety, health and welfare, and the management
of floodplains, see Ex. Ord. No. 11988, May 24, 1977, 42
F.R. 26951, set out as a note under section 4321 of this
title.

§ 4002. Additional Congressional findings and
declaration of purpose
(a) The Congress finds that—
(1) annual losses throughout the Nation from
floods and mudslides are increasing at an
alarming rate, largely as a result of the accelerating development of, and concentration of
population in, areas of flood and mudslide hazards;
(2) the availability of Federal loans, grants,
guaranties, insurance, and other forms of financial assistance are often determining factors in the utilization of land and the location
and construction of public and of private industrial, commercial, and residential facilities;
(3) property acquired or constructed with
grants or other Federal assistance may be exposed to risk of loss through floods, thus frustrating the purpose for which such assistance
was extended;
(4) Federal instrumentalities insure or
otherwise provide financial protection to
banking and credit institutions whose assets
include a substantial number of mortgage
loans and other indebtedness secured by property exposed to loss and damage from floods
and mudslides;
(5) the Nation cannot afford the tragic losses
of life caused annually by flood occurrences,
nor the increasing losses of property suffered
by flood victims, most of whom are still inadequately compensated despite the provision of
costly disaster relief benefits; and
(6) it is in the public interest for persons already living in flood-prone areas to have both
an opportunity to purchase flood insurance
and access to more adequate limits of coverage, so that they will be indemnified, for
their losses in the event of future flood disasters.
(b) The purpose of this Act, therefore, is to—
(1) substantially increase the limits of coverage authorized under the national flood insurance program;
(2) provide for the expeditious identification
of, and the dissemination of information concerning, flood-prone areas;
(3) require States or local communities, as a
condition of future Federal financial assistance, to participate in the flood insurance program and to adopt adequate flood plan ordinances with effective enforcement provisions

§ 4003

consistent with Federal standards to reduce or
avoid future flood losses; and
(4) require the purchase of flood insurance
by property owners who are being assisted by
Federal programs or by federally supervised,
regulated, or insured agencies or institutions
in the acquisition or improvement of land or
facilities located or to be located in identified
areas having special flood hazards.
(Pub. L. 93–234, § 2, Dec. 31, 1973, 87 Stat. 975.)
REFERENCES IN TEXT
This Act, referred to in subsec. (b), means Pub. L.
93–234, Dec. 31, 1973, 87 Stat. 975, as amended, known as
the Flood Disaster Protection Act of 1973. For complete
classification of this Act to the Code, see Short Title of
1973 Amendment note set out under section 4001 of this
title and Tables.
CODIFICATION
Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968 which comprises this chapter.

§ 4003. Additional definitions
(a) As used in this Act, unless the context
otherwise requires, the term—
(1) ‘‘community’’ means a State or a political subdivision thereof which has zoning and
building code jurisdiction over a particular
area having special flood hazards;
(2) ‘‘Federal agency’’ means any department,
agency, corporation, or other entity or instrumentality of the executive branch of the Federal Government, and includes the Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation;
(3) ‘‘financial assistance’’ means any form of
loan, grant, guaranty, insurance, payment, rebate, subsidy, disaster assistance loan or
grant, or any other form of direct or indirect
Federal assistance, other than general or special revenue sharing or formula grants made
to States;
(4) ‘‘financial assistance for acquisition or
construction purposes’’ means any form of financial assistance which is intended in whole
or in part for the acquisition, construction, reconstruction, repair, or improvement of any
publicly or privately owned building or mobile
home, and for any machinery, equipment, fixtures, and furnishings contained or to be contained therein, and shall include the purchase
or subsidization of mortgages or mortgage
loans but shall exclude assistance pursuant to
the Disaster Relief and Emergency Assistance
Act [42 U.S.C. 5121 et seq.] (other than assistance under such Act in connection with a
flood);
(5) ‘‘Federal entity for lending regulation’’
means the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the National Credit Union Administration, and the Farm Credit Administration, and
with respect to a particular regulated lending
institution means the entity primarily responsible for the supervision of the institution;
(6) ‘‘Director’’ means the Administrator of
the Federal Emergency Management Agency;
(7) ‘‘Federal agency lender’’ means a Federal
agency that makes direct loans secured by im-

§ 4011

TITLE 42—THE PUBLIC HEALTH AND WELFARE

proved real estate or a mobile home, to the extent such agency acts in such capacity;
(8) the term ‘‘improved real estate’’ means
real estate upon which a building is located;
(9) ‘‘lender’’ means a regulated lending institution or Federal agency lender;
(10) ‘‘regulated lending institution’’ means
any bank, savings and loan association, credit
union, farm credit bank, Federal land bank association, production credit association, or
similar institution subject to the supervision
of a Federal entity for lending regulation; and
(11) ‘‘servicer’’ means the person responsible
for receiving any scheduled periodic payments
from a borrower pursuant to the terms of a
loan, including amounts for taxes, insurance
premiums, and other charges with respect to
the property securing the loan, and making
the payments of principal and interest and
such other payments with respect to the
amounts received from the borrower as may be
required pursuant to the terms of the loan.
(b) The Director is authorized to define or redefine, by rules and regulations, any scientific
or technical term used in this Act, insofar as
such definition is not inconsistent with the purposes of this Act.
(Pub. L. 93–234, § 3, Dec. 31, 1973, 87 Stat. 976; Pub.
L. 95–128, title VII, § 703(b), Oct. 12, 1977, 91 Stat.
1145; Pub. L. 98–181, title IV, § 451(e), Nov. 30,
1983, 97 Stat. 1229; Pub. L. 100–707, title I, § 109(t),
Nov. 23, 1988, 102 Stat. 4710; Pub. L. 103–325, title
V, § 511(a), Sept. 23, 1994, 108 Stat. 2255; Pub. L.
109–295, title VI, § 612(c), Oct. 4, 2006, 120 Stat.
1410; Pub. L. 111–203, title III, § 368, July 21, 2010,
124 Stat. 1557.)
REFERENCES IN TEXT
This Act, referred to in text, means Pub. L. 93–234,
Dec. 31, 1973, 87 Stat. 975, known as the Flood Disaster
Protection Act of 1973. For complete classification of
this Act to the Code, see Short Title of 1973 Amendment note set out under section 4001 of this title and
Tables.
The Disaster Relief and Emergency Assistance Act,
referred to in subsec. (a)(4), is Pub. L. 93–288, May 22,
1974, 88 Stat. 143, known as the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which is
classified principally to chapter 68 (§ 5121 et seq.) of this
title. For complete classification of this Act to the
Code, see Short Title note set out under section 5121 of
this title and Tables.
CODIFICATION
Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
2010—Subsec. (a)(5). Pub. L. 111–203 struck out ‘‘, the
Office of Thrift Supervision’’ after ‘‘the Comptroller of
the Currency’’.
1994—Subsec. (a)(5). Pub. L. 103–325, § 511(a)(1), added
par. (5) and struck out former par. (5) which read as follows: ‘‘ ‘Federal instrumentality responsible for the supervision, approval, regulation, or insuring of banks,
savings and loan associations, or similar institutions’
means the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation,
the Comptroller of the Currency, the Federal Home
Loan Bank Board, the Federal Savings and Loan Insurance Corporation, and the National Credit Union Administration; and’’.
Subsec. (a)(7) to (11). Pub. L. 103–325, § 511(a)(2), (3),
added pars. (7) to (11).

Page 5162

1988—Subsec. (a)(4). Pub. L. 100–707 substituted ‘‘Disaster Relief and Emergency Assistance Act’’ for ‘‘Disaster Relief Act of 1974’’.
1983—Subsec. (a)(6). Pub. L. 98–181, § 451(e)(2), substituted definition of ‘‘Director’’ meaning the Director
of the Federal Emergency Management Agency for definition of ‘‘Secretary’’ meaning the Secretary of Housing and Urban Development.
Subsec. (b). Pub. L. 98–181, § 451(e)(1), substituted ‘‘Director’’ for ‘‘Secretary’’.
1977—Subsec. (a)(4). Pub. L. 95–128 substituted ‘‘assistance pursuant to the Disaster Relief Act of 1974 (other
than assistance under such Act in connection with a
flood)’’ for ‘‘assistance for emergency work essential
for the protection and preservation of life and property
performed pursuant to the Disaster Relief Act of 1970 or
any subsequent Act of Congress which supersedes or
modifies the Disaster Relief Act of 1970’’.
CHANGE OF NAME
‘‘Administrator of the Federal Emergency Management Agency’’ substituted for ‘‘Director of the Federal
Emergency Management Agency’’ in subsec. (a)(6) on
authority of section 612(c) of Pub. L. 109–295, set out as
a note under section 313 of Title 6, Domestic Security.
Any reference to the Administrator of the Federal
Emergency Management Agency in title VI of Pub. L.
109–295 or an amendment by title VI to be considered to
refer and apply to the Director of the Federal Emergency Management Agency until Mar. 31, 2007, see section 612(f)(2) of Pub. L. 109–295, set out as a note under
section 313 of Title 6.
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a
note under section 906 of Title 2, The Congress.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

SUBCHAPTER I—THE NATIONAL FLOOD
INSURANCE PROGRAM
§ 4011. Authorization to establish and carry out
program
(a) Authorization and establishment
To carry out the purposes of this chapter, the
Administrator of the Federal Emergency Management Agency is authorized to establish and
carry out a national flood insurance program
which will enable interested persons to purchase
insurance against loss resulting from physical
damage to or loss of real property or personal
property related thereto arising from any flood
occurring in the United States.
(b) Additional coverage for compliance with land
use and control measures
The national flood insurance program established pursuant to subsection (a) of this section

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TITLE 42—THE PUBLIC HEALTH AND WELFARE

shall enable the purchase of insurance to cover
the cost of implementing measures that are consistent with land use and control measures established by the community under section 4102
of this title for—
(1) properties that are repetitive loss structures;
(2) properties that are substantially damaged structures;
(3) properties that have sustained flood damage on multiple occasions, if the Director determines that it is cost-effective and in the
best interests of the National Flood Insurance
Fund to require the implementation of such
measures; and
(4) properties for which an offer of mitigation assistance is made under—
(A) section 4104c of this title (Flood Mitigation Assistance Program);
(B) section 1368 1 (Repetitive Loss Priority
Program and Individual Priority Property
Program);
(C) the Hazard Mitigation Grant Program
authorized under section 5170c of this title;
(D) the Predisaster Hazard Mitigation Program under section 5133 of this title; and
(E) any programs authorized or for which
funds are appropriated to address any unmet
needs or for which supplemental funds are
made available.
The Director shall impose a surcharge on each
insured of not more than $75 per policy to provide cost of compliance coverage in accordance
with the provisions of this subsection.
(c) Participation and risk sharing by insurers
In carrying out the flood insurance program
the Director shall, to the maximum extent practicable, encourage and arrange for—
(1) appropriate financial participation and
risk sharing in the program by insurance companies and other insurers, and
(2) other appropriate participation, on other
than a risk-sharing basis, by insurance companies and other insurers, insurance agents and
brokers, and insurance adjustment organizations,
in accordance with the provisions of subchapter
II of this chapter.
(Pub. L. 90–448, title XIII, § 1304, Aug. 1, 1968, 82
Stat. 574; Pub. L. 98–181, title IV, § 451(d)(1), (2),
Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103–325, title
V, § 555(a), Sept. 23, 1994, 108 Stat. 2274; Pub. L.
108–264, title I, § 105(a), June 30, 2004, 118 Stat.
723; Pub. L. 109–295, title VI, § 612(c), Oct. 4, 2006,
120 Stat. 1410.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
2004—Subsec. (b). Pub. L. 108–264, § 105(a)(1)(B), which
directed insertion of ‘‘by the community’’ after ‘‘estab1 So

in original. Pub. L. 90–448 does not contain a section 1368.

§ 4011

lished’’ in introductory provisions, was executed by
making the insertion after ‘‘established’’ the second
time appearing to reflect the probable intent of Congress.
Pub. L. 108–264, § 105(a)(1)(A), substituted ‘‘implementing measures that are consistent’’ for ‘‘compliance’’ in
introductory provisions.
Subsec. (b)(2). Pub. L. 108–264, § 105(a)(2), substituted
‘‘are substantially damaged structures;’’ for ‘‘have
flood damage in which the cost of repairs equals or exceeds 50 percent of the value of the structure at the
time of the flood event; and’’.
Subsec. (b)(3). Pub. L. 108–264, § 105(a)(3), which directed the substitution of ‘‘the implementation of such
measures; and’’ for ‘‘compliance with land use and control measures.’’, was executed by making the substitution for ‘‘compliance with the land use and control
measures.’’, to reflect the probable intent of Congress.
Subsec. (b)(4). Pub. L. 108–264, § 105(a)(4), added par.
(4).
1994—Subsecs. (b), (c). Pub. L. 103–325 added subsec.
(b) and redesignated former subsec. (b) as (c).
1983—Subsec. (a). Pub. L. 98–181, § 451(d)(2), substituted ‘‘Director of the Federal Emergency Management Agency’’ for ‘‘Secretary of Housing and Urban Development’’.
Subsec. (b). Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for ‘‘Secretary’’.
CHANGE OF NAME
‘‘Administrator of the Federal Emergency Management Agency’’ substituted for ‘‘Director of the Federal
Emergency Management Agency’’ in subsec. (a) on authority of section 612(c) of Pub. L. 109–295, set out as a
note under section 313 of Title 6, Domestic Security.
Any reference to the Administrator of the Federal
Emergency Management Agency in title VI of Pub. L.
109–295 or an amendment by title VI to be considered to
refer and apply to the Director of the Federal Emergency Management Agency until Mar. 31, 2007, see section 612(f)(2) of Pub. L. 109–295, set out as a note under
section 313 of Title 6.
EFFECTIVE DATE OF 1994 AMENDMENT
Section 555(b) of Pub. L. 103–325 provided that: ‘‘The
provisions of subsection (a) [amending this section]
shall apply only to properties that sustain flood-related
damage after the date of enactment of this Act [Sept.
23, 1994].’’
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
CONGRESSIONAL FINDINGS
Pub. L. 108–264, § 2, June 30, 2004, 118 Stat. 712, provided that: ‘‘The Congress finds that—
‘‘(1) the national flood insurance program—
‘‘(A) identifies the flood risk;
‘‘(B) provides flood risk information to the public;
‘‘(C) encourages State and local governments to
make appropriate land use adjustments to constrict
the development of land which is exposed to flood
damage and minimize damage caused by flood
losses; and

§ 4011

TITLE 42—THE PUBLIC HEALTH AND WELFARE

‘‘(D) makes flood insurance available on a nationwide basis that would otherwise not be available, to
accelerate recovery from floods, mitigate future
losses, save lives, and reduce the personal and national costs of flood disasters;
‘‘(2) the national flood insurance program insures
approximately 4,400,000 policyholders;
‘‘(3) approximately 48,000 properties currently insured under the program have experienced, within a
10-year period, 2 or more flood losses where each such
loss exceeds the amount $1,000;
‘‘(4) approximately 10,000 of these repetitive-loss
properties have experienced either 2 or 3 losses that
cumulatively exceed building value or 4 or more
losses, each exceeding $1,000;
‘‘(5) repetitive-loss properties constitute a significant drain on the resources of the national flood insurance program, costing about $200,000,000 annually;
‘‘(6) repetitive-loss properties comprise approximately 1 percent of currently insured properties but
are expected to account for 25 to 30 percent of claims
losses;
‘‘(7) the vast majority of repetitive-loss properties
were built before local community implementation of
floodplain management standards under the program
and thus are eligible for subsidized flood insurance;
‘‘(8) while some property owners take advantage of
the program allowing subsidized flood insurance
without requiring mitigation action, others are
trapped in a vicious cycle of suffering flooding, then
repairing flood damage, then suffering flooding, without the means to mitigate losses or move out of
harm’s way;
‘‘(9) mitigation of repetitive-loss properties through
buyouts, elevations, relocations, or flood-proofing
will produce savings for policyholders under the program and for Federal taxpayers through reduced
flood insurance losses and reduced Federal disaster
assistance;
‘‘(10) a strategy of making mitigation offers aimed
at high-priority repetitive-loss properties and shifting more of the burden of recovery costs to property
owners who choose to remain vulnerable to repetitive
flood damage can encourage property owners to take
appropriate actions that reduce loss of life and property damage and benefit the financial soundness of
the program;
‘‘(11) the method for addressing repetitive-loss
properties should be flexible enough to take into consideration legitimate circumstances that may prevent an owner from taking a mitigation action; and
‘‘(12) focusing the mitigation and buy-out of repetitive loss properties upon communities and property
owners that choose to voluntarily participate in a
mitigation and buy-out program will maximize the
benefits of such a program, while minimizing any adverse impact on communities and property owners.’’
MISCELLANEOUS FLOOD INSURANCE PROVISIONS
Pub. L. 108–264, title II, June 30, 2004, 118 Stat. 725, as
amended by Pub. L. 109–295, title VI, § 612(c), Oct. 4,
2006, 120 Stat. 1410, provided that:
‘‘SEC. 201. DEFINITIONS.
‘‘In this title, the following definitions shall apply:
‘‘(1) DIRECTOR.—The term ‘Director’ means the Administrator of the Federal Emergency Management
Agency.
‘‘(2) FLOOD INSURANCE POLICY.—The term ‘flood insurance policy’ means a flood insurance policy issued
under the National Flood Insurance Act of 1968 (42
U.S.C. [4001] et seq.).
‘‘(3) PROGRAM.—The term ‘Program’ means the National Flood Insurance Program established under
the National Flood Insurance Act of 1968 (42 U.S.C.
4001 et seq.).
‘‘SEC. 202. SUPPLEMENTAL FORMS.
‘‘(a) IN GENERAL.—Not later than 6 months after the
date of enactment of this Act [June 30, 2004], the Direc-

Page 5164

tor shall develop supplemental forms to be issued in
conjunction with the issuance of a flood insurance policy that set forth, in simple terms—
‘‘(1) the exact coverages being purchased by a policyholder;
‘‘(2) any exclusions from coverage that apply to the
coverages purchased;
‘‘(3) an explanation, including illustrations, of how
lost items and damages will be valued under the policy at the time of loss;
‘‘(4) the number and dollar value of claims filed
under a flood insurance policy over the life of the
property, and the effect, under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.), of the filing of any further claims under a flood insurance policy with respect to that property; and
‘‘(5) any other information that the Director determines will be helpful to policyholders in understanding flood insurance coverage.
‘‘(b) DISTRIBUTION.—The forms developed under subsection (a) shall be given to—
‘‘(1) all holders of a flood insurance policy at the
time of purchase and renewal; and
‘‘(2) insurance companies and agents that are authorized to sell flood insurance policies.
‘‘SEC. 203. ACKNOWLEDGEMENT FORM.
‘‘(a) IN GENERAL.—Not later than 6 months after the
date of enactment of this Act [June 30, 2004], the Director shall develop an acknowledgement form to be
signed by the purchaser of a flood insurance policy that
contains—
‘‘(1) an acknowledgement that the purchaser has received a copy of the standard flood insurance policy,
and any forms developed under section 202; and
‘‘(2) an acknowledgement that the purchaser has
been told that the contents of a property or dwelling
are not covered under the terms of the standard flood
insurance policy, and that the policyholder has the
option to purchase additional coverage for such contents.
‘‘(b) DISTRIBUTION.—Copies of an acknowledgement
form executed under subsection (a) shall be made available to the purchaser and the Director.
‘‘SEC. 204. FLOOD INSURANCE CLAIMS HANDBOOK.
‘‘(a) IN GENERAL.—Not later than 6 months after the
date of enactment of this Act [June 30, 2004], the Director shall develop a flood insurance claims handbook
that contains—
‘‘(1) a description of the procedures to be followed
to file a claim under the Program, including how to
pursue a claim to completion;
‘‘(2) how to file supplementary claims, proof of loss,
and any other information relating to the filing of
claims under the Program; and
‘‘(3) detailed information regarding the appeals
process established under section 205.
‘‘(b) DISTRIBUTION.—The handbook developed under
subsection (a) shall be made available to—
‘‘(1) each insurance company and agent authorized
to sell flood insurance policies; and
‘‘(2) each purchaser, at the time of purchase and renewal, of a flood insurance policy, and at the time of
any flood loss sustained by such purchaser.
‘‘SEC. 205. APPEAL OF DECISIONS RELATING TO
FLOOD INSURANCE COVERAGE.
‘‘Not later than 6 months after the date of enactment
of this Act [June 30, 2004], the Director shall, by regulation, establish an appeals process through which holders of a flood insurance policy may appeal the decisions, with respect to claims, proofs of loss, and loss estimates relating to such flood insurance policy, of—
‘‘(1) any insurance agent or adjuster, or insurance
company; or
‘‘(2) any employee or contractor of the Federal
Emergency Management Agency.
‘‘SEC. 206. STUDY AND REPORT ON USE OF COST
COMPLIANCE COVERAGE.
‘‘Not later than 1 year after the date of enactment of
this Act [June 30, 2004], the Administrator of the Fed-

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TITLE 42—THE PUBLIC HEALTH AND WELFARE

eral Emergency Management Agency shall submit to
Congress a report that sets forth—
‘‘(1) the use of cost of compliance coverage under
section 1304(b) of the National Flood Insurance Act of
1968 (42 U.S.C. 4011(b)) in connection with flood insurance policies;
‘‘(2) any barriers to policyholders using the funds
provided by cost of compliance coverage under that
section 1304(b) under a flood insurance policy, and
recommendations to address those barriers; and
‘‘(3) the steps that the Federal Emergency Management Agency has taken to ensure that funds paid for
cost of compliance coverage under that section
1304(b) are being used to lessen the burdens on all
homeowners and the Program.
‘‘SEC. 207. MINIMUM TRAINING AND EDUCATION
REQUIREMENTS.
‘‘The Administrator of the Federal Emergency Management Agency shall, in cooperation with the insurance industry, State insurance regulators, and other
interested parties—
‘‘(1) establish minimum training and education requirements for all insurance agents who sell flood insurance policies; and
‘‘(2) not later than 6 months after the date of enactment of this Act [June 30, 2004], publish these requirements in the Federal Register, and inform insurance
companies and agents of the requirements.
‘‘SEC. 208. GAO STUDY AND REPORT.
‘‘(a) STUDY.—The Comptroller General of the United
States shall conduct a study of—
‘‘(1) the adequacy of the scope of coverage provided
under flood insurance policies in meeting the intended goal of Congress that flood victims be restored
to their pre-flood conditions, and any recommendations to ensure that goal is being met;
‘‘(2) the adequacy of payments to flood victims
under flood insurance policies; and
‘‘(3) the practices of the Federal Emergency Management Agency and insurance adjusters in estimating losses incurred during a flood, and how such practices affect the adequacy of payments to flood victims.
‘‘(b) REPORT.—Not later than 1 year after the date of
enactment of this Act [June 30, 2004], the Comptroller
General shall submit to Congress a report regarding the
results of the study under subsection (a).
‘‘SEC. 209. PROSPECTIVE PAYMENT OF FLOOD INSURANCE PREMIUMS.
[Amended section 4015 of this title.]
‘‘SEC. 210. REPORT ON CHANGES TO FEE SCHEDULE
OR FEE PAYMENT ARRANGEMENTS.
‘‘Not later than 3 months after the date of enactment
of this Act [June 30, 2004], the Director shall submit a
report on any changes or modifications made to the fee
schedule or fee payment arrangements between the
Federal Emergency Management Agency and insurance
adjusters who provide services with respect to flood insurance policies to—
‘‘(1) the Committee on Banking, Housing, and
Urban Affairs of the Senate; and
‘‘(2) the Committee on Financial Services of the
House of Representatives.’’
FLOOD INSURANCE INTERAGENCY TASK FORCE
Section 561 of Pub. L. 103–325 provided that:
‘‘(a) ESTABLISHMENT.—There is hereby established an
interagency task force to be known as the Flood Insurance Task Force (in this section referred to as the
‘Task Force’).
‘‘(b) MEMBERSHIP.—
‘‘(1) IN GENERAL.—The Task Force shall be composed of 10 members, who shall be the designees of—
‘‘(A) the Federal Insurance Administrator;
‘‘(B) the Federal Housing Commissioner;
‘‘(C) the Secretary of Veterans Affairs;
‘‘(D) the Administrator of the Farmers Home Administration;

§ 4011

‘‘(E) the Administrator of the Small Business Administration;
‘‘(F) the Chairman of the Board of Directors of
the Farm Credit Administration;
‘‘(G) a designee of the Financial Institutions Examination Council;
‘‘(H) the Director of the Office of Federal Housing
Enterprise Oversight;
‘‘(I) the chairman of the Board of Directors of the
Federal Home Loan Mortgage Corporation; and
‘‘(J) the chairman of the Board of Directors of the
Federal National Mortgage Association.
‘‘(2) QUALIFICATIONS.—Members of the Task Force
shall be designated for membership on the Task
Force by reason of demonstrated knowledge and competence regarding the national flood insurance program.
‘‘(c) DUTIES.—The Task Force shall carry out the following duties:
‘‘(1) RECOMMENDATIONS OF STANDARDIZED ENFORCEMENT PROCEDURES.—Make recommendations to the
head of each Federal agency and enterprise referred
to under subsection (b)(1) regarding establishment or
adoption of standardized enforcement procedures
among such agencies and corporations responsible for
enforcing compliance with the requirements under
the national flood insurance program to ensure fullest possible compliance with such requirements.
‘‘(2) STUDY OF COMPLIANCE ASSISTANCE.—Conduct a
study of the extent to which Federal agencies and the
secondary mortgage market can provide assistance in
ensuring compliance with the requirements under the
national flood insurance program and submit to the
Congress a report describing the study and any conclusions.
‘‘(3) STUDY OF COMPLIANCE MODEL.—Conduct a study
of the extent to which existing programs of Federal
agencies and corporations for compliance with the requirements under the national flood insurance program can serve as a model for other Federal agencies
responsible for enforcing compliance, and submit to
the Congress a report describing the study and any
conclusions.
‘‘(4) RECOMMENDATIONS FOR ENFORCEMENT AND COMPLIANCE PROCEDURES.—Develop recommendations regarding enforcement and compliance procedures,
based on the studies and findings of the Task Force,
and publish such recommendations.
‘‘(5) STUDY OF DETERMINATION FEES.—Conduct a
study of—
‘‘(A) the reasonableness of fees charged pursuant
to 102(h) of the Flood Disaster Protection Act of
1973 [42 U.S.C. 4012a(h)] for costs of determining
whether the property securing a loan is located in
an area having special flood hazards; and
‘‘(B) whether the fees charged pursuant to such
section by lenders and servicers are greater than
the amounts paid by such lenders and servicers to
persons actually conducting such determinations
and the extent to which the fees exceed such
amounts.
‘‘(d) NONCOMPENSATION.—Members of the Task Force
shall receive no additional pay by reason of their service on the Task Force.
‘‘(e) CHAIRPERSON.—The members of the Task Force
shall elect one member as chairperson of the Task
Force.
‘‘(f) MEETINGS AND ACTION.—The Task Force shall
meet at the call of the chairman or a majority of the
members of the Task Force and may take action by a
vote of the majority of the members. The Federal Insurance Administrator shall coordinate and call the
initial meeting of the Task Force.
‘‘(g) OFFICERS.—The chairperson of the Task Force
may appoint any officers to carry out the duties of the
Task Force under subsection (c).
‘‘(h) STAFF OF FEDERAL AGENCIES.—Upon request of
the chairperson of the Task Force, the head of any of
the Federal agencies and entities referred to under subsection (b)(1) may detail, on a nonreimbursable basis,

§ 4012

TITLE 42—THE PUBLIC HEALTH AND WELFARE

any of the personnel of such agency to the Task Force
to assist the Task Force in carrying out its duties
under this section.
‘‘(i) POWERS.—In carrying out this section, the Task
Force may hold hearings, sit and act at times and
places, take testimony, receive evidence and assistance, provide information, and conduct research as the
Task Force considers appropriate.
‘‘(j) TERMINATION.—The Task Force shall terminate
upon the expiration of the 24-month period beginning
upon the designation of the last member to be designated under subsection (b)(1).’’

§ 4012. Scope of program and priorities
(a) Priority for insurance for certain residential
and church properties and business concerns
In carrying out the flood insurance program
the Director shall afford a priority to making
flood insurance available to cover residential
properties which are designed for the occupancy
of from one to four families, church properties,
and business properties which are owned or
leased and operated by small business concerns.
(b) Availability of insurance for other properties
If on the basis of—
(1) studies and investigations undertaken
and carried out and information received or
exchanged under section 4014 of this title, and
(2) such other information as may be necessary,
the Director determines that it would be feasible to extend the flood insurance program to
cover other properties, he may take such action
under this chapter as from time to time may be
necessary in order to make flood insurance
available to cover, on such basis as may be feasible, any types and classes of—
(A) other residential properties,
(B) other business properties,
(C) agricultural properties,
(D) properties occupied by private nonprofit
organizations, and
(E) properties owned by State and local governments and agencies thereof,
and any such extensions of the program to any
types and classes of these properties shall from
time to time be prescribed in regulations.
(c) Availability of insurance in States or areas
evidencing positive interest in securing insurance and assuring adoption of adequate
land use and control measures
The Director shall make flood insurance available in only those States or areas (or subdivisions thereof) which he has determined have—
(1) evidenced a positive interest in securing
flood insurance coverage under the flood insurance program, and
(2) given satisfactory assurance that by December 31, 1971, adequate land use and control
measures will have been adopted for the State
or area (or subdivision) which are consistent
with the comprehensive criteria for land management and use developed under section 4102
of this title, and that the application and enforcement of such measures will commence as
soon as technical information on floodways
and on controlling flood elevations is available.
(Pub. L. 90–448, title XIII, § 1305, Aug. 1, 1968, 82
Stat. 574; Pub. L. 91–152, title IV, § 410(a), Dec. 24,

Page 5166

1969, 83 Stat. 397; Pub. L. 92–213, § 2(c)(1), Dec. 22,
1971, 85 Stat. 775; Pub. L. 98–181, title IV,
§ 451(d)(1), Nov. 30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (b), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1971—Subsec. (a). Pub. L. 92–213 inserted reference to
church properties.
1969—Subsec. (c)(2). Pub. L. 91–152 substituted ‘‘December 31, 1971, adequate’’ for ‘‘June 30, 1970, permanent’’.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4012a. Flood insurance purchase and compliance requirements and escrow accounts
(a) Amount and term of coverage
After the expiration of sixty days following
December 31, 1973, no Federal officer or agency
shall approve any financial assistance for acquisition or construction purposes for use in any
area that has been identified by the Director as
an area having special flood hazards and in
which the sale of flood insurance has been made
available under the National Flood Insurance
Act of 1968 [42 U.S.C. 4001 et seq.], unless the
building or mobile home and any personal property to which such financial assistance relates is
covered by flood insurance in an amount at least
equal to its development or project cost (less estimated land cost) or to the maximum limit of
coverage made available with respect to the particular type of property under the National
Flood Insurance Act of 1968, whichever is less:
Provided, That if the financial assistance provided is in the form of a loan or an insurance or
guaranty of a loan, the amount of flood insurance required need not exceed the outstanding
principal balance of the loan and need not be required beyond the term of the loan. The requirement of maintaining flood insurance shall apply
during the life of the property, regardless of
transfer of ownership of such property.
(b) Requirement for mortgage loans
(1) Regulated lending institutions
Each Federal entity for lending regulation
(after consultation and coordination with the

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TITLE 42—THE PUBLIC HEALTH AND WELFARE

Financial Institutions Examination Council
established under the Federal Financial Institutions Examination Council Act of 1974 [12
U.S.C. 3301 et seq.]) shall by regulation direct
regulated lending institutions not to make, increase, extend, or renew any loan secured by
improved real estate or a mobile home located
or to be located in an area that has been identified by the Director as an area having special flood hazards and in which flood insurance
has been made available under the National
Flood Insurance Act of 1968 [42 U.S.C. 4001 et
seq.], unless the building or mobile home and
any personal property securing such loan is
covered for the term of the loan by flood insurance in an amount at least equal to the
outstanding principal balance of the loan or
the maximum limit of coverage made available under the Act with respect to the particular type of property, whichever is less.
(2) Federal agency lenders
A Federal agency lender may not make, increase, extend, or renew any loan secured by
improved real estate or a mobile home located
or to be located in an area that has been identified by the Director as an area having special flood hazards and in which flood insurance
has been made available under the National
Flood Insurance Act of 1968, unless the building or mobile home and any personal property
securing such loan is covered for the term of
the loan by flood insurance in the amount provided in paragraph (1). Each Federal agency
lender shall issue any regulations necessary to
carry out this paragraph. Such regulations
shall be consistent with and substantially
identical to the regulations issued under paragraph (1).
(3) Government-sponsored enterprises for
housing
The Federal National Mortgage Association
and the Federal Home Loan Mortgage Corporation shall implement procedures reasonably designed to ensure that, for any loan that
is—
(A) secured by improved real estate or a
mobile home located in an area that has
been identified, at the time of the origination of the loan or at any time during the
term of the loan, by the Director as an area
having special flood hazards and in which
flood insurance is available under the National Flood Insurance Act of 1968, and
(B) purchased by such entity,
the building or mobile home and any personal
property securing the loan is covered for the
term of the loan by flood insurance in the
amount provided in paragraph (1).
(4) Applicability
(A) Existing coverage
Except as provided in subparagraph (B),
paragraph (1) shall apply on September 23,
1994.
(B) New coverage
Paragraphs (2) and (3) shall apply only
with respect to any loan made, increased,
extended, or renewed after the expiration of
the 1-year period beginning on September 23,

§ 4012a

1994. Paragraph (1) shall apply with respect
to any loan made, increased, extended, or renewed by any lender supervised by the Farm
Credit Administration only after the expiration of the period under this subparagraph.
(C) Continued effect of regulations
Notwithstanding any other provision of
this subsection, the regulations to carry out
paragraph (1), as in effect immediately before September 23, 1994, shall continue to
apply until the regulations issued to carry
out paragraph (1) as amended by section
522(a) of Public Law 103–325 take effect.
(c) Exceptions to purchase requirements
(1) State-owned property
Notwithstanding the other provisions of this
section, flood insurance shall not be required
on any State-owned property that is covered
under an adequate State policy of self-insurance satisfactory to the Director. The Director shall publish and periodically revise the
list of States to which this subsection applies.
(2) Small loans
Notwithstanding any other provision of this
section, subsections (a) and (b) of this section
shall not apply to any loan having—
(A) an original outstanding principal balance of $5,000 or less; and
(B) a repayment term of 1 year or less.
(d) Escrow of flood insurance payments
(1) Regulated lending institutions
Each Federal entity for lending regulation
(after consultation and coordination with the
Financial Institutions Examination Council)
shall by regulation require that, if a regulated
lending institution requires the escrowing of
taxes, insurance premiums, fees, or any other
charges for a loan secured by residential improved real estate or a mobile home, then all
premiums and fees for flood insurance under
the National Flood Insurance Act of 1968 [42
U.S.C. 4001 et seq.] for the real estate or mobile home shall be paid to the regulated lending institution or other servicer for the loan in
a manner sufficient to make payments as due
for the duration of the loan. Upon receipt of
the premiums, the regulated lending institution or servicer of the loan shall deposit the
premiums in an escrow account on behalf of
the borrower. Upon receipt of a notice from
the Director or the provider of the insurance
that insurance premiums are due, the regulated lending institution or servicer shall pay
from the escrow account to the provider of the
insurance the amount of insurance premiums
owed.
(2) Federal agency lenders
Each Federal agency lender shall by regulation require and provide for escrow and payment of any flood insurance premiums and
fees relating to residential improved real estate and mobile homes securing loans made by
the Federal agency lender under the circumstances and in the manner provided under
paragraph (1). Any regulations issued under
this paragraph shall be consistent with and
substantially identical to the regulations issued under paragraph (1).

§ 4012a

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(3) Applicability of RESPA
Escrow accounts established pursuant to
this subsection shall be subject to the provisions of section 10 of the Real Estate Settlement Procedures Act of 1974 [12 U.S.C. 2609].
(4) ‘‘Residential improved real estate’’ defined
For purposes of this subsection, the term
‘‘residential improved real estate’’ means improved real estate for which the improvement
is a residential building.
(5) Applicability
This subsection shall apply only with respect to any loan made, increased, extended,
or renewed after the expiration of the 1-year
period beginning on September 23, 1994.
(e) Placement of flood insurance by lender
(1) Notification to borrower of lack of coverage
If, at the time of origination or at any time
during the term of a loan secured by improved
real estate or by a mobile home located in an
area that has been identified by the Director
(at the time of the origination of the loan or
at any time during the term of the loan) as an
area having special flood hazards and in which
flood insurance is available under the National
Flood Insurance Act of 1968 [42 U.S.C. 4001 et
seq.], the lender or servicer for the loan determines that the building or mobile home and
any personal property securing the loan is not
covered by flood insurance or is covered by
such insurance in an amount less than the
amount required for the property pursuant to
paragraph (1), (2), or (3) of subsection (b) of
this section, the lender or servicer shall notify
the borrower under the loan that the borrower
should obtain, at the borrower’s expense, an
amount of flood insurance for the building or
mobile home and such personal property that
is not less than the amount under subsection
(b)(1) of this section, for the term of the loan.
(2) Purchase of coverage on behalf of borrower
If the borrower fails to purchase such flood
insurance within 45 days after notification
under paragraph (1), the lender or servicer for
the loan shall purchase the insurance on behalf of the borrower and may charge the borrower for the cost of premiums and fees incurred by the lender or servicer for the loan in
purchasing the insurance.
(3) Review of determination regarding required purchase
(A) In general
The borrower and lender for a loan secured
by improved real estate or a mobile home
may jointly request the Director to review a
determination of whether the building or
mobile home is located in an area having
special flood hazards. Such request shall be
supported by technical information relating
to the improved real estate or mobile home.
Not later than 45 days after the Director receives the request, the Director shall review
the determination and provide to the borrower and the lender with a letter stating
whether or not the building or mobile home
is in an area having special flood hazards.
The determination of the Director shall be
final.

Page 5168

(B) Effect of determination
Any person to whom a borrower provides a
letter issued by the Director pursuant to
subparagraph (A), stating that the building
or mobile home securing the loan of the borrower is not in an area having special flood
hazards, shall have no obligation under this
title 1 to require the purchase of flood insurance for such building or mobile home during the period determined by the Director,
which shall be specified in the letter and
shall begin on the date on which such letter
is provided.
(C) Effect of failure to respond
If a request under subparagraph (A) is
made in connection with the origination of a
loan and the Director fails to provide a letter under subparagraph (A) before the later
of (i) the expiration of the 45-day period
under such subparagraph, or (ii) the closing
of the loan, no person shall have an obligation under this title 1 to require the purchase
of flood insurance for the building or mobile
home securing the loan until such letter is
provided.
(4) Applicability
This subsection shall apply to all loans outstanding on or after September 23, 1994.
(f) Civil monetary penalties for failure to require
flood insurance or notify
(1) Civil monetary penalties against regulated
lenders
Any regulated lending institution that is
found to have a pattern or practice of committing violations under paragraph (2) shall be assessed a civil penalty by the appropriate Federal entity for lending regulation in the
amount provided under paragraph (5).
(2) Lender violations
The violations referred to in paragraph (1)
shall include—
(A) making, increasing, extending, or renewing loans in violation of—
(i) the regulations issued pursuant to
subsection (b) of this section;
(ii) the escrow requirements under subsection (d) of this section; or
(iii) the notice requirements under section 1364 of the National Flood Insurance
Act of 1968 [42 U.S.C. 4104a]; or
(B) failure to provide notice or purchase
flood insurance coverage in violation of subsection (e) of this section.
(3) Civil monetary penalties against GSE’s
(A) In general
If the Federal National Mortgage Association or the Federal Home Loan Mortgage
Corporation is found by the Director of the
Federal Housing Finance Agency to have a
pattern or practice of purchasing loans in
violation of the procedures established pursuant to subsection (b)(3) of this section, the
Director of such Office 2 shall assess a civil
1 See
2 So

References in Text note below.
in original. Probably should be ‘‘Agency’’.

Page 5169

TITLE 42—THE PUBLIC HEALTH AND WELFARE

penalty against such enterprise in the
amount provided under paragraph (5) of this
subsection.
(B) ‘‘Enterprise’’ defined
For purposes of this subsection, the term
‘‘enterprise’’ means the Federal National
Mortgage Association or the Federal Home
Loan Mortgage Corporation.
(4) Notice and hearing
A penalty under this subsection may be issued only after notice and an opportunity for
a hearing on the record.
(5) Amount
A civil monetary penalty under this subsection may not exceed $350 for each violation
under paragraph (2) or paragraph (3). The total
amount of penalties assessed under this subsection against any single regulated lending
institution or enterprise during any calendar
year may not exceed $100,000.
(6) Lender compliance
Notwithstanding any State or local law, for
purposes of this subsection, any regulated
lending institution that purchases flood insurance or renews a contract for flood insurance
on behalf of or as an agent of a borrower of a
loan for which flood insurance is required
shall be considered to have complied with the
regulations issued under subsection (b) of this
section.
(7) Effect of transfer on liability
Any sale or other transfer of a loan by a regulated lending institution that has committed
a violation under paragraph (1), that occurs
subsequent to the violation, shall not affect
the liability of the transferring lender with respect to any penalty under this subsection. A
lender shall not be liable for any violations relating to a loan committed by another regulated lending institution that previously held
the loan.
(8) Deposit of penalties
Any penalties collected under this subsection shall be paid into the National Flood
Mitigation Fund under section 1367 of the National Flood Insurance Act of 1968 [42 U.S.C.
4104d].
(9) Additional penalties
Any penalty under this subsection shall be
in addition to any civil remedy or criminal
penalty otherwise available.
(10) Statute of limitations
No penalty may be imposed under this subsection after the expiration of the 4-year period beginning on the date of the occurrence of
the violation for which the penalty is authorized under this subsection.
(g) Other actions to remedy pattern of noncompliance
(1) Authority of Federal entities for lending
regulation
A Federal entity for lending regulation may
require a regulated lending institution to take
such remedial actions as are necessary to ensure that the regulated lending institution

§ 4012a

complies with the requirements of the national flood insurance program if the Federal
agency for lending regulation makes a determination under paragraph (2) regarding the
regulated lending institution.
(2) Determination of violations
A determination under this paragraph shall
be a finding that—
(A) the regulated lending institution has
engaged in a pattern and practice of noncompliance in violation of the regulations
issued pursuant to subsection (b), (d), or (e)
of this section or the notice requirements
under section 1364 of the National Flood Insurance Act of 1968 [42 U.S.C. 4104a]; and
(B) the regulated lending institution has
not demonstrated measurable improvement
in compliance despite the assessment of civil
monetary penalties under subsection (f) of
this section.
(h) Fee for determining location
Notwithstanding any other Federal or State
law, any person who makes a loan secured by
improved real estate or a mobile home or any
servicer for such a loan may charge a reasonable
fee for the costs of determining whether the
building or mobile home securing the loan is located in an area having special flood hazards,
but only in accordance with the following requirements:
(1) Borrower fee
The borrower under such a loan may be
charged the fee, but only if the determination—
(A) is made pursuant to the making, increasing, extending, or renewing of the loan
that is initiated by the borrower;
(B) is made pursuant to a revision or updating under section 1360(f) 3 [42 U.S.C.
4101(f)] of the floodplain areas and flood-risk
zones or publication of a notice or compendia under subsection (h) or (i) of section
1360 3 [42 U.S.C. 4101(h), (i)] that affects the
area in which the improved real estate or
mobile home securing the loan is located or
that, in the determination of the Director,
may reasonably be considered to require a
determination under this subsection; or
(C) results in the purchase of flood insurance coverage pursuant to the requirement
under subsection (e)(2) of this section.
(2) Purchaser or transferee fee
The purchaser or transferee of such a loan
may be charged the fee in the case of sale or
transfer of the loan.
(Pub. L. 93–234, title I, § 102, Dec. 31, 1973, 87 Stat.
978; Pub. L. 98–181, title IV, § 451(e)(1), Nov. 30,
1983, 97 Stat. 1229; Pub. L. 103–325, title V,
§§ 522–526, 531, 582(c), Sept. 23, 1994, 108 Stat.
2257–2262, 2267, 2287; Pub. L. 110–289, div. A, title
I, § 1161(e), July 30, 2008, 122 Stat. 2780.)
REFERENCES IN TEXT
The National Flood Insurance Act of 1968, referred to
in subsecs. (a), (b), (d)(1), and (e)(1), and the Act, re3 So in original. Probably should be followed by ‘‘of the National Flood Insurance Act of 1968’’.

§ 4013

TITLE 42—THE PUBLIC HEALTH AND WELFARE

ferred to in subsec. (b), is title XIII of Pub. L. 90–448,
Aug. 1, 1968, 82 Stat. 572, as amended, which is classified
principally to this chapter (§ 4001 et seq.). For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
The Federal Financial Institutions Examination
Council Act of 1974, referred to in subsec. (b)(1), probably means the Federal Financial Institutions Examination Council Act of 1978, Pub. L. 95–630, title X, Nov.
10, 1978, 92 Stat. 3694, as amended, which is classified
principally to chapter 34 (§ 3301 et seq.) of Title 12,
Banks and Banking. For complete classification of this
Act to the Code, see Short Title note set out under section 3301 of Title 12 and Tables.
Section 522(a) of Public Law 103–325, referred to in
subsec. (b)(4)(C), was in original ‘‘section 522(a) of such
Act’’, which generally amended subsec. (b) of this section.
This title, referred to in subsec. (e)(3)(B), (C), means
title I of Pub. L. 93–234, Dec. 31, 1973, 87 Stat. 977, which
enacted this section and section 4104 of this title and
amended sections 4001, 4013 to 4016, 4026, 4054, 4056, and
4121 of this title.
CODIFICATION
Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
2008—Subsec. (f)(3)(A). Pub. L. 110–289 substituted
‘‘Director of the Federal Housing Finance Agency’’ for
‘‘Director of the Office of Federal Housing Enterprise
Oversight of the Department of Housing and Urban Development’’.
1994—Pub. L. 103–325, § 531, substituted section catchline for former section catchline.
Subsec. (a). Pub. L. 103–325, § 582(c), struck out
‘‘, during the anticipated economic or useful life of the
project,’’ before ‘‘covered by flood insurance’’ and inserted at end ‘‘The requirement of maintaining flood
insurance shall apply during the life of the property,
regardless of transfer of ownership of such property.’’
Subsec. (b). Pub. L. 103–325, § 522(a), amended subsec.
(b) generally. Prior to amendment, subsec. (b) read as
follows: ‘‘Each Federal instrumentality responsible for
the supervision, approval, regulation, or insuring of
banks, savings and loan associations, or similar institutions shall by regulation direct such institutions not
to make, increase, extend, or renew after the expiration
of sixty days following December 31, 1973, any loan secured by improved real estate or a mobile home located
or to be located in an area that has been identified by
the Director as an area having special flood hazards
and in which flood insurance has been made available
under the National Flood Insurance Act of 1968, unless
the building or mobile home and any personal property
securing such loan is covered for the term of the loan
by flood insurance in an amount at least equal to the
outstanding principal balance of the loan or to the
maximum limit of coverage made available with respect to the particular type of property under the Act,
whichever is less.’’
Subsec. (c). Pub. L. 103–325, § 522(b), inserted heading,
designated existing provisions as par. (1), inserted par.
(1) heading, and added par. (2).
Subsecs. (d) to (h). Pub. L. 103–325, §§ 523–526, added
subsecs. (d) to (h).
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by section 582(c) of Pub. L. 103–325 applicable to disasters declared after Sept. 23, 1994, see section 5154a(e) of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of

Page 5170

the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4013. Nature and limitation of insurance coverage
(a) Regulations respecting general terms and
conditions of insurability
The Director shall from time to time, after
consultation with the advisory committee authorized under section 4025 of this title, appropriate representatives of the pool formed or
otherwise created under section 4051 of this
title, and appropriate representatives of the insurance authorities of the respective States,
provide by regulation for general terms and conditions of insurability which shall be applicable
to properties eligible for flood insurance coverage under section 4012 of this title, including—
(1) the types, classes, and locations of any
such properties which shall be eligible for
flood insurance;
(2) the nature and limits of loss or damage in
any areas (or subdivisions thereof) which may
be covered by such insurance;
(3) the classification, limitation, and rejection of any risks which may be advisable;
(4) appropriate minimum premiums;
(5) appropriate loss-deductibles; and
(6) any other terms and conditions relating
to insurance coverage or exclusion which may
be necessary to carry out the purposes of this
chapter.
(b) Regulations respecting amount of coverage
In addition to any other terms and conditions
under subsection (a) of this section, such regulations shall provide that—
(1) any flood insurance coverage based on
chargeable premium rates under section 4015
of this title which are less than the estimated
premium rates under section 4014(a)(1) of this
title shall not exceed—
(A) in the case of residential properties—
(i) $35,000 aggregate liability for any single-family dwelling, and $100,000 for any
residential structure containing more than
one dwelling unit,
(ii) $10,000 aggregate liability per dwelling unit for any contents related to such
unit, and
(iii) in the States of Alaska and Hawaii,
and in the Virgin Islands and Guam; the
limits provided in clause (i) of this sentence shall be: $50,000 aggregate liability
for any single-family dwelling, and $150,000
for any residential structure containing
more than one dwelling unit;
(B) in the case of business properties which
are owned or leased and operated by small

Page 5171

TITLE 42—THE PUBLIC HEALTH AND WELFARE

business concerns, an aggregate liability
with respect to any single structure, including any contents thereof related to premises
of small business occupants (as that term is
defined by the Director), which shall be
equal to (i) $100,000 plus (ii) $100,000 multiplied by the number of such occupants and
shall be allocated among such occupants (or
among the occupant or occupants and the
owner) under regulations prescribed by the
Director; except that the aggregate liability
for the structure itself may in no case exceed $100,000; and
(C) in the case of church properties and
any other properties which may become eligible for flood insurance under section 4012
of this title—
(i) $100,000 aggregate liability for any
single structure, and
(ii) $100,000 aggregate liability per unit
for any contents related to such unit; and
(2) in the case of any residential property for
which the risk premium rate is determined in
accordance with the provisions of section
4014(a)(1) of this title, additional flood insurance in excess of the limits specified in clause
(i) of subparagraph (A) of paragraph (1) shall
be made available to every insured upon renewal and every applicant for insurance so as
to enable such insured or applicant to receive
coverage up to a total amount (including such
limits specified in paragraph (1)(A)(i)) of
$250,000;
(3) in the case of any residential property for
which the risk premium rate is determined in
accordance with the provisions of section
4014(a)(1) of this title, additional flood insurance in excess of the limits specified in clause
(ii) of subparagraph (A) of paragraph (1) shall
be made available to every insured upon renewal and every applicant for insurance so as
to enable any such insured or applicant to receive coverage up to a total amount (including
such limits specified in paragraph (1)(A)(ii)) of
$100,000;
(4) in the case of any nonresidential property, including churches, for which the risk
premium rate is determined in accordance
with the provisions of section 4014(a)(1) of this
title, additional flood insurance in excess of
the limits specified in subparagraphs (B) and
(C) of paragraph (1) shall be made available to
every insured upon renewal and every applicant for insurance, in respect to any single
structure, up to a total amount (including
such limit specified in subparagraph (B) or (C)
of paragraph (1), as applicable) of $500,000 for
each structure and $500,000 for any contents
related to each structure; and
(5) any flood insurance coverage which may
be made available in excess of the limits specified in subparagraph (A), (B), or (C) of paragraph (1), shall be based only on chargeable
premium rates under section 4015 of this title,
which are not less than the estimated premium rates under section 4014(a)(1) of this
title, and the amount of such excess coverage
shall not in any case exceed an amount equal
to the applicable limit so specified (or allocated) under paragraph (1)(C), (2), (3), or (4), as
applicable.

§ 4013

(c) Effective date of policies
(1) Waiting period
Except as provided in paragraph (2), coverage under a new contract for flood insurance
coverage under this chapter entered into after
September 23, 1994, and any modification to
coverage under an existing flood insurance
contract made after September 23, 1994, shall
become effective upon the expiration of the 30day period beginning on the date that all obligations for such coverage (including completion of the application and payment of any
initial premiums owed) are satisfactorily completed.
(2) Exception
The provisions of paragraph (1) shall not
apply to—
(A) the initial purchase of flood insurance
coverage under this chapter when the purchase of insurance is in connection with the
making, increasing, extension, or renewal of
a loan; or
(B) the initial purchase of flood insurance
coverage pursuant to a revision or updating
of floodplain areas or flood-risk zones under
section 4101(f) of this title, if such purchase
occurs during the 1-year period beginning
upon publication of notice of the revision or
updating under section 4101(h) of this title.
(Pub. L. 90–448, title XIII, § 1306, Aug. 1, 1968, 82
Stat. 575; Pub. L. 92–213, § 2(c)(2), Dec. 22, 1971, 85
Stat. 775; Pub. L. 93–234, title I, § 101, Dec. 31,
1973, 87 Stat. 977; Pub. L. 95–128, title VII,
§ 704(a), Oct. 12, 1977, 91 Stat. 1145; Pub. L. 98–181,
title IV, § 451(d)(1), Nov. 30, 1983, 97 Stat. 1229;
Pub. L. 100–242, title V, § 544(a), Feb. 5, 1988, 101
Stat. 1940; Pub. L. 100–628, title X, § 1086(a), Nov.
7, 1988, 102 Stat. 3278; Pub. L. 100–707, title I,
§ 109(o), Nov. 23, 1988, 102 Stat. 4709; Pub. L.
101–137, § 1(c), Nov. 3, 1989, 103 Stat. 824; Pub. L.
101–508, title II, § 2302(d), Nov. 5, 1990, 104 Stat.
1388–23; Pub. L. 103–325, title V, §§ 552(a), 573,
579(a), Sept. 23, 1994, 108 Stat. 2269, 2278, 2284.)
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a)(6) and (c)(1),
(2)(A), was in the original a reference to ‘‘this title’’
meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82
Stat. 572, known as the National Flood Insurance Act of
1968, which is classified principally to this chapter. For
complete classification of this Act to the Code, see
Short Title note set out under section 4001 of this title
and Tables.
AMENDMENTS
1994—Subsec. (b)(2). Pub. L. 103–325, § 573(a)(1), substituted ‘‘a total amount (including such limits specified in paragraph (1)(A)(i)) of $250,000’’ for ‘‘an amount
of $150,000 under the provisions of this clause’’.
Subsec. (b)(3). Pub. L. 103–325, § 573(a)(2), substituted
‘‘a total amount (including such limits specified in
paragraph (1)(A)(ii)) of $100,000’’ for ‘‘an amount of
$50,000 under the provisions of this clause’’.
Subsec. (b)(4). Pub. L. 103–325, § 573(a)(3), added par. (4)
and struck out former par. (4) which read as follows:
‘‘in the case of business property owned, leased, or operated by small business concerns for which the risk
premium rate is determined in accordance with the
provisions of section 4014(a)(1) of this title, additional
flood insurance in excess of the limits specified in subparagraph (B) of paragraph (1) shall be made available
to every such owner, lessee, or operator in respect to

§ 4014

TITLE 42—THE PUBLIC HEALTH AND WELFARE

any single structure, including any contents thereof,
related to premises of small business occupants (as that
term is defined by the Director), up to an amount equal
to (i) $250,000 plus (ii) $200,000 multiplied by the number
of such occupants which coverage shall be allocated
among such occupants (or among the occupant or occupants and the owner) in accordance with the regulations prescribed by the Director pursuant to such subparagraph (B), except that the aggregate liability for
the structure itself may in no case exceed $250,000;’’.
Subsec. (b)(5). Pub. L. 103–325, § 573(b)(1), substituted a
period for ‘‘; and’’ at end.
Subsec. (b)(6). Pub. L. 103–325, § 573(b)(2), struck out
par. (6) which read as follows: ‘‘the flood insurance purchase requirements of section 4012a of this title do not
apply to the additional flood insurance limits made
available in excess of twice the limits made available
under paragraph (1).’’
Subsec. (c). Pub. L. 103–325, § 579(a), added subsec. (c).
Pub. L. 103–325, § 552(a), struck out subsec. (c) which
related to schedule for payment of flood insurance for
structures on land subject to imminent collapse or subsidence.
1990—Subsec. (c)(7). Pub. L. 101–508 substituted ‘‘September 30, 1995’’ for ‘‘September 30, 1991’’.
1989—Subsec. (c)(7). Pub. L. 101–137 substituted ‘‘September 30, 1991’’ for ‘‘September 30, 1989’’.
1988—Subsec. (c). Pub. L. 100–242 added subsec. (c).
Subsec. (c)(1)(A). Pub. L. 100–628 substituted ‘‘following’’ for ‘‘Following’’ in cls. (i) and (ii).
Subsec. (c)(5). Pub. L. 100–707 substituted ‘‘Disaster
Relief and Emergency Assistance Act’’ for ‘‘Disaster
Relief Act of 1974’’.
1983—Subsecs. (a), (b)(1)(B), (4). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1977—Subsec. (b)(2). Pub. L. 95–128 added par. (2) and
redesignated former par. (2) as (5).
Subsec. (b)(3), (4). Pub. L. 95–128 added pars. (3) and
(4).
Subsec. (b)(5). Pub. L. 95–128 redesignated former par.
(2) as (5), struck out ‘‘(or allocated to any person under
subparagraph (B) of such paragraph)’’ after ‘‘paragraph
(1)’’, and inserted ‘‘under paragraph (1)(C), (2), (3), or
(4), as applicable’’ after ‘‘(or allocated)’’.
Subsec. (b)(6). Pub. L. 95–128 added par. (6).
1973—Subsec. (b)(1)(A). Pub. L. 93–234, § 101(a), in increasing limits of coverage, struck out following introductory text ‘‘residential properties’’ the clause ‘‘which
are designed for the occupancy of from one to four families’’; substituted provisions in cl. (i) ‘‘$35,000 aggregate liability for any single-family dwelling, and
$100,000 for any residential structure containing more
than one dwelling unit’’ for ‘‘$17,500 aggregate liability
for any dwelling unit, and $30,000 for any single dwelling structure containing more than one dwelling unit’’;
increased cl. (ii) limits to $10,000 from $5,000 and added
cl. (iii).
Subsec. (b)(1)(B). Pub. L. 93–234, § 101(b), substituted
‘‘$100,000’’ for ‘‘$30,000’’ in cl. (i), for ‘‘$5,000’’ in cl. (ii),
and for ‘‘$30,000’’ in exception provision.
Subsec. (b)(1)(C). Pub. L. 93–234, § 101(c), increased cl.
(i) limits to $100,000 from $30,000 and substituted cl. (ii)
‘‘$100,000 aggregate liability per unit for any contents
related to such unit’’ for ‘‘$5,000 aggregate liability per
dwelling unit for any contents related to such unit in
the case of residential properties, or per occupant (as
that term is defined by the Secretary) for any contents
related to the premises occupied in the case of any
other properties’’.
1971—Subsec. (b)(1)(C). Pub. L. 92–213 inserted
‘‘church properties, and’’ before ‘‘any other properties
which may become’’.
EFFECTIVE DATE OF 1988 AMENDMENT
Section 544(b) of Pub. L. 100–242 provided that: ‘‘The
amendment made by this section [amending this section] shall become effective on the date of the enactment of this Act [Feb. 5, 1988].’’

Page 5172

SAVINGS PROVISION
Pub. L. 103–325, title V, § 552(c), Sept. 23, 1994, 108 Stat.
2269, required the Director of the Federal Emergency
Management Agency to make payments under flood insurance contracts based on commitments made before
the expiration of the 1-year period beginning on Sept.
23, 1994, pursuant to the authority under subsec. (c) of
this section or section 552(b) of Pub. L. 103–325, formerly set out below.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
TRANSITION PHASE
Pub. L. 103–325, title V, § 552(b), Sept. 23, 1994, 108
Stat. 2269, permitted the Director of the Federal Emergency Management Agency to pay amounts under flood
insurance contracts for demolition or relocation of
structures as provided in subsec. (c) of this section (as
in effect immediately before the enactment of Pub. L.
103–325), during the 1-year period beginning on Sept. 23,
1994.

§ 4014. Estimates of premium rates
(a) Studies and investigations
The Director is authorized to undertake and
carry out such studies and investigations and receive or exchange such information as may be
necessary to estimate, and shall from time to
time estimate, on an area, subdivision, or other
appropriate basis—
(1) the risk premium rates for flood insurance which—
(A) based on consideration of the risk involved and accepted actuarial principles, and
(B) including—
(i) the applicable operating costs and allowances set forth in the schedules prescribed under section 4018 of this title and
reflected in such rates,
(ii) any administrative expenses (or portion of such expenses) of carrying out the
flood insurance program which, in his discretion, should properly be reflected in
such rates, and
(iii) any remaining administrative expenses incurred in carrying out the flood
insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title) not
included under clause (ii), which shall be
recovered by a fee charged to policyholders
and such fee shall not be subject to any
agents’ commissions, company expense allowances, or State or local premium taxes,
would be required in order to make such insurance available on an actuarial basis for any

Page 5173

TITLE 42—THE PUBLIC HEALTH AND WELFARE

types and classes of properties for which insurance coverage is available under section
4012(a) of this title (or is recommended to the
Congress under section 4012(b) of this title);
(2) the rates, if less than the rates estimated
under paragraph (1), which would be reasonable, would encourage prospective insureds to
purchase flood insurance, and would be consistent with the purposes of this chapter, and
which, together with a fee charged to policyholders that shall not be not subject to any
agents’ commission, company expenses allowances, or State or local premium taxes, shall
include any administrative expenses incurred
in carrying out the flood insurance and floodplain management programs (including the
costs of mapping activities under section 4101
of this title); and
(3) the extent, if any, to which federally assisted or other flood protection measures initiated after August 1, 1968, affect such rates.
(b) Utilization of services of other Departments
and agencies
In carrying out subsection (a) of this section,
the Director shall, to the maximum extent feasible and on a reimbursement basis, utilize the
services of the Department of the Army, the Department of the Interior, the Department of Agriculture, the Department of Commerce, and the
Tennessee Valley Authority, and, as appropriate, other Federal departments or agencies,
and for such purposes may enter into agreements or other appropriate arrangements with
any persons.
(c) Priority to studies and investigations in
States or areas evidencing positive interest
in securing insurance under program
The Director shall give priority to conducting
studies and investigations and making estimates under this section in those States or
areas (or subdivisions thereof) which he has determined have evidenced a positive interest in
securing flood insurance coverage under the
flood insurance program.
(d) Parishes of Louisiana; premium rates
Notwithstanding any other provision of law,
any structure existing on December 31, 1973, and
located within Avoyelles, Evangeline, Rapides,
or Saint Landry Parish in the State of Louisiana, which the Secretary determines is subject
to additional flood hazards as a result of the
construction or operation of the Atchafalaya
Basin Levee System, shall be eligible for flood
insurance under this chapter (if and to the extent it is eligible for such insurance under the
other provisions of this chapter) at premium
rates that shall not exceed those which would be
applicable if such additional hazards did not
exist.
(e) Eligibility of community making adequate
progress on construction of flood protection
system for rates not exceeding those applicable to completed flood protection system; determination of adequate progress
Notwithstanding any other provision of law,
any community that has made adequate
progress, acceptable to the Director, on the construction of a flood protection system which

§ 4014

will afford flood protection for the one-hundred
year frequency flood as determined by the Director, shall be eligible for flood insurance under
this chapter (if and to the extent it is eligible
for such insurance under the other provisions of
this chapter) at premium rates not exceeding
those which would be applicable under this section if such flood protection system had been
completed. The Director shall find that adequate progress on the construction of a flood
protection system as required herein has been
only if (1) 100 percent of the project cost of the
system has been authorized, (2) at least 60 percent of the project cost of the system has been
appropriated, (3) at least 50 percent of the
project cost of the system has been expended,
and (4) the system is at least 50 percent completed.
(f) Availability of flood insurance in communities
restoring disaccredited flood protection systems; criteria; rates
Notwithstanding any other provision of law,
this subsection shall only apply in a community
which has been determined by the Administrator of the Federal Emergency Management
Agency to be in the process of restoring flood
protection afforded by a flood protection system
that had been previously accredited on a Flood
Insurance Rate Map as providing 100-year frequency flood protection but no longer does so.
Except as provided in this subsection, in such a
community, flood insurance shall be made available to those properties impacted by the
disaccreditation of the flood protection system
at premium rates that do not exceed those
which would be applicable to any property located in an area of special flood hazard, the construction of which was started prior to the effective date of the initial Flood Insurance Rate
Map published by the Director for the community in which such property is located. A revised
Flood Insurance Rate Map shall be prepared for
the community to delineate as Zone AR the
areas of special flood hazard that result from
the disaccreditation of the flood protection system. A community will be considered to be in
the process of restoration if—
(1) the flood protection system has been
deemed restorable by a Federal agency in consultation with the local project sponsor;
(2) a minimum level of flood protection is
still provided to the community by the disaccredited system; and
(3) restoration of the flood protection system is scheduled to occur within a designated
time period and in accordance with a progress
plan negotiated between the community and
the Federal Emergency Management Agency.
Communities that the Administrator of the Federal Emergency Management Agency determines to meet the criteria set forth in paragraphs (1) and (2) as of January 1, 1992, shall not
be subject to revised Flood Insurance Rate Maps
that contravene the intent of this subsection.
Such communities shall remain eligible for C
zone rates for properties located in zone AR for
any policy written prior to promulgation of
final regulations for this section. Floodplain
management criteria for such communities shall
not require the elevation of improvements to ex-

§ 4015

TITLE 42—THE PUBLIC HEALTH AND WELFARE

Page 5174

isting structures and shall not exceed 3 feet
above existing grade for new construction, provided the base flood elevation based on the disaccredited flood control system does not exceed
five feet above existing grade, or the remaining
new construction in such communities is limited to infill sites, rehabilitation of existing
structures, or redevelopment of previously developed areas.

cy, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

The Administrator of the Federal Emergency
Management Agency shall develop and promulgate regulations to implement this subsection,
including minimum floodplain management criteria, within 24 months after October 28, 1992.

Pub. L. 108–7, div. K, title III, Feb. 20,
517, provided in part: ‘‘That beginning
2003 and thereafter, fees authorized
4014(a)(1)(B)(iii) shall be collected only
advance in appropriations acts.’’

(Pub. L. 90–448, title XIII, § 1307, Aug. 1, 1968, 82
Stat. 576; Pub. L. 93–234, title I, § 109, Dec. 31,
1973, 87 Stat. 980; Pub. L. 93–383, title VIII,
§ 816(b), Aug. 22, 1974, 88 Stat. 739; Pub. L. 98–181,
title IV, § 451(d)(1), Nov. 30, 1983, 97 Stat. 1229;
Pub. L. 101–508, title II, § 2302(e)(1), Nov. 5, 1990,
104 Stat. 1388–24; Pub. L. 102–550, title IX, § 928,
Oct. 28, 1992, 106 Stat. 3886; Pub. L. 109–295, title
VI, § 612(c), Oct. 4, 2006, 120 Stat. 1410.)

FEES
2003, 117 Stat.
in fiscal year
in 42 U.S.C.
if provided in

STUDY OF ECONOMIC EFFECTS OF CHARGING ACTUARIALLY BASED PREMIUM RATES FOR PRE-FIRM STRUCTURES

Pub. L. 103–325, title V, § 578, Sept. 23, 1994, 108 Stat.
2284, required the Director of the Federal Emergency
Management Agency to conduct a study of the economic effects that would result from increasing premium rates for flood insurance coverage for pre-FIRM
structures and submit a report to Congress no later
than 12 months after Sept. 23, 1994.

REFERENCES IN TEXT

SEA LEVEL RISE STUDY

This chapter, referred to in subsecs. (a)(2), (d), and
(e), was in the original a reference to ‘‘this title’’ meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572,
known as the National Flood Insurance Act of 1968,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short
Title note set out under section 4001 of this title and
Tables.

Pub. L. 101–137, § 5, Nov. 3, 1989, 103 Stat. 825, directed
Director of Federal Emergency Management Agency to
conduct a study to determine the impact of relative sea
level rise on the flood insurance rate maps, such study
also to project the economic losses associated with estimated sea level rise and aggregate such data for the
United States as a whole and by region, with Director
to report results of study to Congress not later than
one year after Nov. 3, 1989.

AMENDMENTS
1992—Subsec. (f). Pub. L. 102–550 added subsec. (f).
1990—Subsec.
(a)(1)(B)(iii).
Pub.
L.
101–508,
§ 2302(e)(1)(A)–(C), added cl. (iii).
Subsec. (a)(2). Pub. L. 101–508, § 2302(e)(1)(D), inserted
before semicolon ‘‘, and which, together with a fee
charged to policyholders that shall not be not subject
to any agents’ commission, company expenses allowances, or State or local premium taxes, shall include
any administrative expenses incurred in carrying out
the flood insurance and floodplain management programs (including the costs of mapping activities under
section 4101 of this title)’’.
1983—Subsecs. (a) to (c), (e). Pub. L. 98–181 substituted
‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1974—Subsec. (e). Pub. L. 93–383 added subsec. (e).
1973—Subsec. (d). Pub. L. 93–234 added subsec. (d).
CHANGE OF NAME
‘‘Administrator of the Federal Emergency Management Agency’’ substituted for ‘‘Director of the Federal
Emergency Management Agency’’ in subsec. (f) on authority of section 612(c) of Pub. L. 109–295, set out as a
note under section 313 of Title 6, Domestic Security.
Any reference to the Administrator of the Federal
Emergency Management Agency in title VI of Pub. L.
109–295 or an amendment by title VI to be considered to
refer and apply to the Director of the Federal Emergency Management Agency until Mar. 31, 2007, see section 612(f)(2) of Pub. L. 109–295, set out as a note under
section 313 of Title 6.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agen-

§ 4015. Chargeable premium rates
(a) Establishment; terms and conditions
On the basis of estimates made under section
4014 of this title, and such other information as
may be necessary, the Director shall from time
to time, after consultation with the advisory
committee authorized under section 4025 of this
title, appropriate representatives of the pool
formed or otherwise created under section 4051
of this title, and appropriate representatives of
the insurance authorities of the respective
States, prescribe by regulation—
(1) chargeable premium rates for any types
and classes of properties for which insurance
coverage shall be available under section 4012
of this title (at less than the estimated risk
premium rates under section 4014(a)(1) of this
title, where necessary), and
(2) the terms and conditions under which,
and the areas (including subdivisions thereof)
within which, such rates shall apply.
(b) Considerations for rates
Such rates shall, insofar as practicable, be—
(1) based on a consideration of the respective
risks involved, including differences in risks
due to land use measures, flood-proofing, flood
forecasting, and similar measures.
(2) adequate, on the basis of accepted actuarial principles, to provide reserves for anticipated losses, or, if less than such amount, consistent with the objective of making flood insurance available where necessary at reasonable rates so as to encourage prospective insureds to purchase such insurance and with
the purposes of this chapter,

Page 5175

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(3) adequate, together with the fee under
paragraph (1)(B)(iii) or (2) of section 4014(a) of
this title, to provide for any administrative
expenses of the flood insurance and floodplain
management programs (including the costs of
mapping activities under section 4101 of this
title), and
(4) stated so as to reflect the basis for such
rates, including the differences (if any) between the estimated risk premium rates under
section 4014(a)(1) of this title and the estimated rates under section 4014(a)(2) of this
title.
(c) Actuarial rate properties
Subject only to the limitations provided under
paragraphs (1) and (2), the chargeable rate shall
not be less than the applicable estimated risk
premium rate for such area (or subdivision
thereof) under section 4014(a)(1) of this title with
respect to the following properties:
(1) Post-firm properties
Any property the construction or substantial improvement of which the Director determines has been started after December 31, 1974,
or started after the effective date of the initial
rate map published by the Director under
paragraph (2) of section 4101 of this title for
the area in which such property is located,
whichever is later, except that the chargeable
rate for properties under this paragraph shall
be subject to the limitation under subsection
(e) of this section.
(2) Certain leased coastal and river properties
Any property leased from the Federal Government (including residential and nonresidential properties) that the Director determines is located on the river-facing side of any
dike, levee, or other riverine flood control
structure, or seaward of any seawall or other
coastal flood control structure.
(d) Payment of certain sums to Director; deposits
in Fund
With respect to any chargeable premium rate
prescribed under this section, a sum equal to the
portion of the rate that covers any administrative expenses of carrying out the flood insurance
and floodplain management programs which
have been estimated under paragraphs (1)(B)(ii)
and (1)(B)(iii) of section 4014(a) of this title or
paragraph (2) of such section (including the fees
under such paragraphs), shall be paid to the Director. The Director shall deposit the sum in the
National Flood Insurance Fund established
under section 4017 of this title.
(e) Annual limitation on premium increases
Except with respect to properties described
under paragraph (2) or (3) 1 of subsection (c) of
this section, and notwithstanding any other provision of this chapter, the chargeable risk premium rates for flood insurance under this chapter for any properties within any single risk
classification may not be increased by an
amount that would result in the average of such
rate increases for properties within the risk
classification during any 12-month period ex1 So in original. Subsec. (c) of this section does not contain a
par. (3).

§ 4015

ceeding 10 percent of the average of the risk premium rates for properties within the risk classification upon the commencement of such 12month period.
(f) Adjustment of premium
Notwithstanding any other provision of law, if
the Director determines that the holder of a
flood insurance policy issued under this chapter
is paying a lower premium than is required
under this section due to an error in the flood
plain determination, the Director may only prospectively charge the higher premium rate.
(Pub. L. 90–448, title XIII, § 1308, Aug. 1, 1968, 82
Stat. 576; Pub. L. 93–234, title I, § 103, Dec. 31,
1973, 87 Stat. 978; Pub. L. 98–181, title IV,
§ 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L.
101–508, title II, § 2302(e)(2), Nov. 5, 1990, 104 Stat.
1388–24; Pub. L. 103–325, title V, § 572(a), Sept. 23,
1994, 108 Stat. 2277; Pub. L. 108–264, title I, § 106,
title II, § 209, June 30, 2004, 118 Stat. 724, 727.)
REFERENCES IN TEXT
This chapter, referred to in subsecs. (b)(2) and (e), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
This chapter, referred to in subsec. (f), was in the
original ‘‘this Act’’, and was translated as reading ‘‘this
title’’, meaning title XIII of Pub. L. 90–448, Aug. 1, 1968,
82 Stat. 572, as amended, known as the National Flood
Insurance Act of 1968, which is classified principally to
this chapter, to reflect the probable intent of Congress.
For complete classification of this Act to the Code, see
Short Title note set out under section 4001 of this title
and Tables.
AMENDMENTS
2004—Subsec. (c). Pub. L. 108–264, § 106(a), added subsec. (c) and struck out former subsec. (c) which read as
follows ‘‘Subject only to the limitation under subsection (e) of this section, the chargeable rate with respect to any property, the construction or substantial
improvements of which the Director determines has
been started after December 31, 1974, or the effective
date of the initial rate map published by the Director
under paragraph (2) of section 4101 of this title for the
area in which such property is located, whichever is
later, shall not be less than the applicable estimated
risk premium rate for such area (or subdivision thereof)
under section 4014(a)(1) of this title.’’
Subsec. (e). Pub. L. 108–264, § 106(b), substituted ‘‘Except with respect to properties described under paragraph (2) or (3) of subsection (c) of this section, and notwithstanding’’ for ‘‘Notwithstanding’’.
Subsec. (f). Pub. L. 108–264, § 209, added subsec. (f).
1994—Subsec. (c). Pub. L. 103–325, § 572(a)(1), substituted ‘‘Subject only to the limitation under subsection (e) of this section’’ for ‘‘Notwithstanding any
other provision of this chapter’’.
Subsec. (e). Pub. L. 103–325, § 572(a)(2), added subsec.
(e).
1990—Subsec. (b)(3), (4). Pub. L. 101–508, § 2302(e)(2)(A),
added par. (3) and redesignated former par. (3) as (4).
Subsec. (d). Pub. L. 101–508, § 2302(e)(2)(B), added subsec. (d) and struck out former subsec. (d) which read as
follows: ‘‘In the event any chargeable premium rate
prescribed under this section—
‘‘(1) is a rate which is not less than the applicable
estimated risk premium rate under section 4014(a)(1)
of this title, and
‘‘(2) includes any amount for administrative expenses of carrying out the flood insurance program
which have been estimated under clause (ii) of section 4014(a)(1)(B) of this title,

§ 4016

TITLE 42—THE PUBLIC HEALTH AND WELFARE

a sum equal to such amount shall be paid to the Director, and he shall deposit such sum in the National
Flood Insurance Fund established under section 4017 of
this title.’’
1983—Subsecs. (a), (c), (d). Pub. L. 98–181 substituted
‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1973—Subsec. (c). Pub. L. 93–234 substituted ‘‘started
after December 31, 1974, or the effective date of the initial rate map published by the Secretary under paragraph (2) of section 4101 of this title for the area in
which such property is located, whichever is later’’ for
‘‘started after the identification of the area in which
such property is located has been published under paragraph (1) of section 4101 of this title’’.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
LIMITATION ON PREMIUMS
Section 2302(e)(5) of Pub. L. 101–508 provided that,
notwithstanding section 541(d) of Pub. L. 100–242, formerly set out below, premium rates charged for flood
insurance under any program established pursuant to
this chapter could be increased by more than 10 percent
during fiscal year 1991, with certain exceptions.
Pub. L. 100–242, title V, § 541(d), Feb. 5, 1988, 101 Stat.
1939, as amended by Pub. L. 101–137, § 1(d), Nov. 3, 1989,
103 Stat. 824; Pub. L. 101–508, title II, § 2302(c), Nov. 5,
1990, 104 Stat. 1388–23, limited increases in premium
rates charged for flood insurance under programs established pursuant to this chapter during period beginning
Feb. 5, 1988, and ending Sept. 30, 1995, to prorated annual rate of 10 percent, prior to repeal by Pub. L.
103–325, title V, § 572(b), Sept. 23, 1994, 108 Stat. 2278.
Section 451(g)(1) of Pub. L. 98–181 provided that premium rates charged for flood insurance under any program established pursuant to this chapter could not be
increased during the period beginning Nov. 30, 1983, and
ending Sept. 30, 1984.
TERMINATION OF ADVISORY COMMITTEES
Advisory committees in existence on Jan. 5, 1973, to
terminate not later than the expiration of the 2-year
period following Jan. 5, 1973, unless, in the case of a
committee established by the President or an officer of
the Federal Government, such committee is renewed by
appropriate action prior to the expiration of such 2year period, or in the case of a committee established
by the Congress, its duration is otherwise provided by
law. Advisory committees established after Jan. 5, 1973,
to terminate not later than the expiration of the 2-year
period beginning on the date of their establishment,
unless, in the case of a committee established by the
President or an officer of the Federal Government, such
committee is renewed by appropriate action prior to
the expiration of such 2-year period, or in the case of
a committee established by the Congress, its duration
is otherwise provided by law. See section 14 of Pub. L.
92–463, Oct. 6, 1972, 86 Stat. 776, set out in the Appendix
to Title 5, Government Organization and Employees.

Page 5176

§ 4016. Financing provisions; issuance of notes or
other obligations; limitation; report to Congressional committees; deposits in Fund
(a) All authority which was vested in the Director by virtue of section 2414(e) of this title
(pertaining to the issue of notes or other obligations to the Secretary of the Treasury), as
amended by subsections (a) and (b) of section
1303 of this Act, shall be available to the Director for the purpose of carrying out the flood insurance program under this chapter; except that
the total amount of notes and obligations which
may be issued by the Director pursuant to such
authority (1) without the approval of the President, may not exceed $500,000,000, and (2) with
the approval of the President, may not exceed
$1,500,000,000 through the date specified in section 4026 of this title, and $1,000,000,000 thereafter; except that, through the earlier of the
date of the enactment into law of an Act that
specifically amends the date specified in this
section or May 31, 2012, clause (2) of this sentence
shall
be
applied
by
substituting
‘‘$20,725,000,000’’ for ‘‘$1,500,000,000’’. The Director
shall report to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate at any
time when he requests the approval of the President in accordance with the preceding sentence.
(b) Any funds borrowed by the Director under
this authority shall, from time to time, be deposited in the National Flood Insurance Fund
established under section 4017 of this title.
(Pub. L. 90–448, title XIII, § 1309, Aug. 1, 1968, 82
Stat. 577; Pub. L. 89–174, § 5(a), Sept. 9, 1965, 79
Stat. 669; Pub. L. 93–234, title I, § 104, Dec. 31,
1973, 87 Stat. 979; Pub. L. 98–181, title IV,
§ 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L.
98–479, title II, § 204(g), Oct. 17, 1984, 98 Stat. 2233;
Pub. L. 104–208, div. A, title V, Sept. 30, 1996, 110
Stat. 3009–521; Pub. L. 105–65, title III, Oct. 27,
1997, 111 Stat. 1377; Pub. L. 105–276, title III, Oct.
21, 1998, 112 Stat. 2502; Pub. L. 106–74, title III,
Oct. 20, 1999, 113 Stat. 1088; Pub. L. 106–377,
§ 1(a)(1) [title III], Oct. 27, 2000, 114 Stat. 1441,
1441A–47; Pub. L. 107–73, title III, Nov. 26, 2001,
115 Stat. 689; Pub. L. 108–3, § 2(a)(1), Jan. 13, 2003,
117 Stat. 7; Pub. L. 108–171, § 2(a)(2), Dec. 6, 2003,
117 Stat. 2064; Pub. L. 108–199, div. H, § 136(a)(2),
Jan. 23, 2004, 118 Stat. 442; Pub. L. 108–264, title
I, § 101(a), June 30, 2004, 118 Stat. 714; Pub. L.
109–65, § 2, Sept. 20, 2005, 119 Stat. 1998; Pub. L.
109–106, § 2, Nov. 21, 2005, 119 Stat. 2288; Pub. L.
109–208, § 2, Mar. 23, 2006, 120 Stat. 317; Pub. L.
111–196, § 2(b), July 2, 2010, 124 Stat. 1352; Pub. L.
111–250, § 2(b), Sept. 30, 2010, 124 Stat. 2630; Pub.
L. 112–74, div. D, title V, § 573, Dec. 23, 2011, 125
Stat. 985.)
REFERENCES IN TEXT
Section 1303 of this Act, referred to in subsec. (a),
means section 1303 of Pub. L. 90–448, which amended
section 2414(e) of this title.
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.

Page 5177

TITLE 42—THE PUBLIC HEALTH AND WELFARE
AMENDMENTS

2011—Subsec. (a). Pub. L. 112–74 substituted ‘‘the earlier of the date of the enactment into law of an Act
that specifically amends the date specified in this section or May 31, 2012’’ for ‘‘September 30, 2011’’.
2010—Subsec. (a). Pub. L. 111–250 substituted ‘‘September 30, 2011’’ for ‘‘September 30, 2010’’.
Pub. L. 111–196 substituted ‘‘September 30, 2010’’ for
‘‘September
30,
2008’’
and
‘‘$20,725,000,000’’
for
‘‘$20,775,000,000’’.
2006—Subsec. (a). Pub. L. 109–208 substituted
‘‘$20,775,000,000’’ for ‘‘$18,500,000,000’’ in first sentence.
2005—Subsec. (a). Pub. L. 109–106 substituted
‘‘$18,500,000,000’’ for ‘‘$3,500,000,000’’ in first sentence.
Pub. L. 109–65 inserted ‘‘; except that, through September 30, 2008, clause (2) of this sentence shall be applied by substituting ‘$3,500,000,000’ for ‘$1,500,000,000’ ’’
before period at end of first sentence.
2004—Subsec. (a). Pub. L. 108–264, § 101(a), which directed amendment of first sentence of subsec. (a) by
substituting ‘‘through the date specified in section 4026
of this title, and’’ for ‘‘ ‘through December’ and all that
follows through ‘, and’ ’’, could not be executed because
the language to be struck out did not appear subsequent to amendment by Pub. L. 108–171. See 2003
Amendment note below.
Pub. L. 108–199 made amendment identical to that
made by Pub. L. 108–171. See 2003 Amendment note
below.
2003—Subsec. (a)(2). Pub. L. 108–171 substituted ‘‘the
date specified in section 4026 of this title’’ for ‘‘December 31, 2003’’.
Pub. L. 108–3 substituted ‘‘December 31, 2003’’ for ‘‘December 31, 2002’’.
2001—Subsec. (a)(2). Pub. L. 107–73 substituted ‘‘2002’’
for ‘‘2001’’.
2000—Subsec. (a)(2). Pub. L. 106–377 substituted ‘‘December 31, 2001’’ for ‘‘September 30, 2000’’.
1999—Subsec. (a)(2). Pub. L. 106–74, which directed
substitution of ‘‘2000’’ for ‘‘1999’’ in section ‘‘1309(a)(2) of
the National Flood Insurance Act’’, was executed to
subsec. (a)(2) of this section, which is section 1309 of the
National Flood Insurance Act of 1968, to reflect the
probable intent of Congress.
1998—Subsec. (a)(2). Pub. L. 105–276, which directed
substitution of ‘‘1999’’ for ‘‘1998’’ in section ‘‘1309(a)(2) of
the National Flood Insurance Act’’, was executed by
making the substitution in subsec. (a)(2) of this section, which is section 1309 of the National Flood Insurance Act of 1968, to reflect the probable intent of Congress.
1997—Subsec. (a)(2). Pub. L. 105–65, which directed
substitution of ‘‘1998’’ for ‘‘1997’’ in section ‘‘1309(a)(2) of
the National Flood Insurance Act’’, was executed by
making the substitution in subsec. (a)(2) of this section, which is section 1309 of the National Flood Insurance Act of 1968, to reflect the probable intent of Congress.
1996—Subsec. (a)(2). Pub. L. 104–208 substituted
‘‘$1,500,000,000 through September 30, 1997, and
$1,000,000,000 thereafter’’ for ‘‘$1,000,000,000’’.
1984—Subsec. (a). Pub. L. 98–479 substituted
‘‘, Finance and Urban Affairs’’ for ‘‘and Currency’’ and
inserted a comma after ‘‘Housing’’ in last sentence.
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1973—Subsec. (a). Pub. L. 93–234 substituted provisions respecting issuance of notes and obligation for
$500,000,000 without approval of President and for
$1,000,000,000 with approval of President, for former provision prescribing a $250,000,000 limitation, struck out
provision rescinding authority of Secretary to issue
notes and obligations under section 2414(e) of this title,
and provided for report to Congressional Committees
when the approval of the President is requested.
CHANGE OF NAME
Committee on Banking, Finance and Urban Affairs of
House of Representatives treated as referring to Com-

§ 4017

mittee on Banking and Financial Services of House of
Representatives by section 1(a) of Pub. L. 104–14, set
out as a note preceding section 21 of Title 2, The Congress. Committee on Banking and Financial Services of
House of Representatives abolished and replaced by
Committee on Financial Services of House of Representatives, and jurisdiction over matters relating to
securities and exchanges and insurance generally transferred from Committee on Energy and Commerce of
House of Representatives by House Resolution No. 5,
One Hundred Seventh Congress, Jan. 3, 2001.
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–196, § 2(c), July 2, 2010, 124 Stat. 1352, provided that: ‘‘The amendments made by subsections (a)
and (b) [amending this section and section 4026 of this
title] shall be considered to have taken effect on May
31, 2010.’’
EFFECTIVE DATE OF 2004 AMENDMENT
Pub. L. 108–199, div. H, § 136(b), Jan. 23, 2004, 118 Stat.
442, provided that: ‘‘The amendments made by this section [amending this section and sections 4026, 4056, and
4127 of this title] shall be considered to have taken effect on December 31, 2003.’’
EFFECTIVE DATE OF 2003 AMENDMENTS
Pub. L. 108–171, § 2(b), Dec. 6, 2003, 117 Stat. 2064, provided that: ‘‘The amendments made by this section
[amending this section and sections 4026, 4056, and 4127
of this title] shall be considered to have taken effect on
December 31, 2003.’’
Pub. L. 108–3, § 2(b), Jan. 13, 2003, 117 Stat. 7, provided
that: ‘‘The amendments made by this section [amending this section and sections 4026, 4056, and 4127 of this
title] shall be considered to have taken effect on December 31, 2002.’’
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
Functions of Housing and Home Finance Agency and
head thereof transferred to Secretary of Housing and
Urban Development by Pub. L. 89–174, § 5(a), Sept. 9,
1965, 79 Stat. 669, which is classified to section 3534(a) of
this title. Section 9(c) of such act, set out as a note
under section 3531 of this title, provides that references
to Housing and Home Finance Agency or to any agency
or officer therein are to be deemed to mean Secretary
of Housing and Urban Development and that Housing
and Home Finance Agency has lapsed.
EXTENSION OF LIMITATION ON FINANCING PROVISIONS
Subsec. (a) of this section to be applied by substituting ‘‘September 30, 2009’’ for ‘‘September 30, 2008’’, see
section 145 of Pub. L. 110–329, set out as a note under
section 4026 of this title.

§ 4017. National Flood Insurance Fund
(a) Establishment; availability
To carry out the flood insurance program authorized by this chapter, the Director shall es-

§ 4017

TITLE 42—THE PUBLIC HEALTH AND WELFARE

tablish in the Treasury of the United States a
National Flood Insurance Fund (hereinafter referred to as the ‘‘fund’’) which shall be an account separate from any other accounts or funds
available to the Director and shall be available
as described in subsection (f) of this section,
without fiscal year limitation (except as otherwise provided in this section)—
(1) for making such payments as may, from
time to time, be required under section 4054 of
this title;
(2) to pay reinsurance claims under the excess loss reinsurance coverage provided under
section 4055 of this title;
(3) to repay to the Secretary of the Treasury
such sums as may be borrowed from him (together with interest) in accordance with the
authority provided in section 4016 of this title;
and
(4) to the extent approved in appropriations
Acts, to pay any administrative expenses of
the flood insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title);
(5) for the purposes specified in subsection
(d) of this section under the conditions provided therein;
(6) for carrying out the program under section 4022(b) of this title;
(7) for transfers to the National Flood Mitigation Fund, but only to the extent provided
in section 4104d(b)(1) of this title;
(8) for financial assistance under section
4102a of this title to States and communities
for taking actions under such section with respect to severe repetitive loss properties, but
only to the extent provided in section 4102a(i)
of this title; and
(9) for funding, not to exceed $10,000,000 in
any fiscal year, for mitigation actions under
section 4030 of this title, except that, notwithstanding any other provision of this chapter,
amounts made available pursuant to this paragraph shall not be subject to offsetting collections through premium rates for flood insurance coverage under this chapter.
(b) Credits to Fund
The fund shall be credited with—
(1) such funds borrowed in accordance with
the authority provided in section 4016 of this
title as may from time to time be deposited in
the fund;
(2) premiums, fees, or other charges which
may be paid or collected in connection with
the excess loss reinsurance coverage provided
under section 4055 of this title;
(3) such amounts as may be advanced to the
fund from appropriations in order to maintain
the fund in an operative condition adequate to
meet its liabilities;
(4) interest which may be earned on investments of the fund pursuant to subsection (c) of
this section;
(5) such sums as are required to be paid to
the Director under section 4015(d) of this title;
and
(6) receipts from any other operations under
this chapter (including premiums under the
conditions specified in subsection (d) of this
section, and salvage proceeds, if any, resulting
from reinsurance coverage).

Page 5178

(c) Investment of moneys in obligations issued or
guaranteed by United States
If, after—
(1) all outstanding obligations of the fund
have been liquidated, and
(2) any outstanding amounts which may
have been advanced to the fund from appropriations authorized under section 4127(a)(2)(B)
of this title have been credited to the appropriation from which advanced, with interest
accrued at the rate prescribed under section
2414(e) of this title, as in effect immediately
prior to August 1, 1968,
the Director determines that the moneys of the
fund are in excess of current needs, he may request the investment of such amounts as he
deems advisable by the Secretary of the Treasury in obligations issued or guaranteed by the
United States.
(d) Availability of Fund if operation of program
is carried out through facilities of Federal
Government
In the event the Director makes a determination in accordance with the provisions of section
4071 of this title that operation of the flood insurance program, in whole or in part, should be
carried out through the facilities of the Federal
Government, the fund shall be available for all
purposes incident thereto, including—
(1) cost incurred in the adjustment and payment of any claims for losses, and
(2) payment of applicable operating costs set
forth in the schedules prescribed under section
4018 of this title,
for so long as the program is so carried out, and
in such event any premiums paid shall be deposited by the Director to the credit of the fund.
(e) Annual budget
An annual business-type budget for the fund
shall be prepared, transmitted to the Congress,
considered, and enacted in the manner prescribed by sections 9103 and 9104 of title 31 for
wholly-owned Government corporations.
(f) Availability of funds dependent on future appropriations acts
The fund shall be available, with respect to
any fiscal year beginning on or after October 1,
1981, only to the extent approved in appropriation Acts; except that the fund shall be available for the purpose described in subsection
(d)(1) of this section without such approval.
(Pub. L. 90–448, title XIII, § 1310, Aug. 1, 1968, 82
Stat. 577; Pub. L. 97–35, title III, § 341(c), Aug. 13,
1981, 95 Stat. 419; Pub. L. 98–181, title IV,
§ 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L.
98–479, title II, § 203(j)(1), Oct. 17, 1984, 98 Stat.
2231; Pub. L. 100–242, title V, § 545(d), Feb. 5, 1988,
101 Stat. 1942; Pub. L. 101–508, title II, § 2302(e)(3),
Nov. 5, 1990, 104 Stat. 1388–24; Pub. L. 103–325,
title V, §§ 542, 554(b), 577(h), Sept. 23, 1994, 108
Stat. 2269, 2274, 2283; Pub. L. 108–264, title I,
§§ 102(b), 104(b), June 30, 2004, 118 Stat. 721, 723.)
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a) and (b)(6), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is

Page 5179

TITLE 42—THE PUBLIC HEALTH AND WELFARE

classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
AMENDMENTS
2004—Subsec. (a)(7), (8). Pub. L. 108–264, § 102(b), struck
out ‘‘and’’ at end of par. (7), added par. (8), and struck
out former par. (8) which read as follows: ‘‘for costs of
preparing the report under section 577 of the Riegle
Community Development and Regulatory Improvement
Act of 1994, except that the fund shall be available for
the purpose under this paragraph in an amount not to
exceed an aggregate of $5,000,000 over the 2-year period
beginning on September 23, 1994.’’
Subsec. (a)(9). Pub. L. 108–264, § 104(b), added par. (9).
1994—Subsec. (a). Pub. L. 103–325, §§ 554(b)(1), 577(h)(1),
in introductory provisions, substituted ‘‘shall’’ for ‘‘is
authorized to’’ after ‘‘Director’’, inserted ‘‘an account
separate from any other accounts or funds available to
the Director and shall be’’ after ‘‘which shall be’’, and
inserted ‘‘(except as otherwise provided in this section)’’ after ‘‘without fiscal year limitation’’.
Subsec. (a)(6) to (8). Pub. L. 103–325, §§ 542, 554(b)(2),
577(h)(2), added pars. (6) to (8), respectively.
1990—Subsec. (a)(4). Pub. L. 101–508 amended par. (4)
generally. Prior to amendment, par. (4) read as follows:
‘‘to pay such administrative expenses (or portion of
such expenses) of carrying out the flood insurance program as he may deem necessary; and’’.
1988—Subsec. (e). Pub. L. 100–242 substituted ‘‘title 31,
United States Code,’’ for ‘‘title 31, United States Code’’,
which for purposes of codification was translated as
‘‘title 31’’, requiring no change in text.
1984—Subsec. (e). Pub. L. 98–479 substituted ‘‘sections
9103 and 9104 of title 31’’ for ‘‘law (sections 102, 103, and
104 of the Government Corporations Control Act (31
U.S.C. 847–849))’’.
1983—Subsecs. (a), (b)(5), (c), (d). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1981—Subsec. (a). Pub. L. 97–35, § 341(c)(1), inserted
reference to subsec. (f) of this section.
Subsec. (f). Pub. L. 97–35, § 341(c)(2), added subsec. (f).
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of Title 12, Banks and Banking.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4018. Operating costs and allowances; definitions
(a) The Director shall from time to time negotiate with appropriate representatives of the insurance industry for the purpose of establishing—
(1) a current schedule of operating costs applicable both to risk-sharing insurance companies and other insurers and to insurance com-

§ 4019

panies and other insurers, insurance agents
and brokers, and insurance adjustment organizations participating on other than a risksharing basis, and
(2) a current schedule of operating allowances applicable to risk-sharing insurance
companies and other insurers,
which may be payable in accordance with the
provisions of subchapter II of this chapter, and
such schedules shall from time to time be prescribed in regulations.
(b) For purposes of subsection (a) of this section—
(1) the term ‘‘operating costs’’ shall (without
limiting such term) include—
(A) expense reimbursements covering the
direct, actual, and necessary expenses incurred in connection with selling and servicing flood insurance coverage;
(B) reasonable compensation payable for
selling and servicing flood insurance coverage, or commissions or service fees paid to
producers;
(C) loss adjustment expenses; and
(D) other direct, actual, and necessary expenses which the Director finds are incurred
in connection with selling or servicing flood
insurance coverage; and
(2) the term ‘‘operating allowances’’ shall
(without limiting such term) include amounts
for profit and contingencies which the Director finds reasonable and necessary to carry
out the purposes of this chapter.
(Pub. L. 90–448, title XIII, § 1311, Aug. 1, 1968, 82
Stat. 579; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (b)(2), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
1983—Subsecs. (a), (b)(1)(D), (2). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4019. Payment of claims
The Director is authorized to prescribe regulations establishing the general method or meth-

§ 4020

TITLE 42—THE PUBLIC HEALTH AND WELFARE

Page 5180

ods by which proved and approved claims for
losses may be adjusted and paid for any damage
to or loss of property which is covered by flood
insurance made available under the provisions
of this chapter.

to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

(Pub. L. 90–448, title XIII, § 1312, Aug. 1, 1968, 82
Stat. 579; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)

§ 4021. Repealed. Pub. L. 93–234, title II, § 203,
Dec. 31, 1973, 87 Stat. 982

REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4020. Dissemination of flood insurance information
The Director shall from time to time take
such action as may be necessary in order to
make information and data available to the public, and to any State or local agency or official,
with regard to—
(1) the flood insurance program, its coverage
and objectives, and
(2) estimated and chargeable flood insurance
premium rates, including the basis for and differences between such rates in accordance
with the provisions of section 4015 of this title.
(Pub. L. 90–448, title XIII, § 1313, Aug. 1, 1968, 82
Stat. 579; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ in provisions preceding par. (1).
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,

Section, Pub. L. 90–448, title XIII, § 1314, Aug. 1, 1968,
82 Stat. 579, denied Federal disaster assistance after
Dec. 31, 1973, to persons who for a period of a year or
more could have purchased flood insurance but did not
do so, and defined ‘‘Federal disaster assistance’’ and
‘‘financial assistance’’.
LOSS, DESTRUCTION, OR DAMAGE OCCURRING ON OR
BEFORE DECEMBER 31, 1973
Pub. L. 92–213, § 2(b), Dec. 22, 1971, 85 Stat. 775, made
the provisions of subsec. (a)(2) of section 4021 inapplicable with respect to any loss, destruction, or damage of
real or personal property that occurred on or before
Dec. 31, 1973.

§ 4022. State and local land use controls
(a) Requirement for participation in flood insurance program
(1) In general
After December 31, 1971, no new flood insurance coverage shall be provided under this
chapter in any area (or subdivision thereof)
unless an appropriate public body shall have
adopted adequate land use and control measures (with effective enforcement provisions)
which the Director finds are consistent with
the comprehensive criteria for land management and use under section 4102 of this title.
(2) Agricultural structures
(A) Activity restrictions
Notwithstanding any other provision of
law, the adequate land use and control measures required to be adopted in an area (or
subdivision thereof) pursuant to paragraph
(1) may provide, at the discretion of the appropriate State or local authority, for the
repair and restoration to predamaged conditions of an agricultural structure that—
(i) is a repetitive loss structure; or
(ii) has incurred flood-related damage to
the extent that the cost of restoring the
structure to its predamaged condition
would equal or exceed 50 percent of the
market value of the structure before the
damage occurred.
(B) Premium rates and coverage
To the extent applicable, an agricultural
structure repaired or restored pursuant to
subparagraph (A) shall pay chargeable premium rates established under section 4015 of
this title at the estimated risk premium
rates under section 4014(a)(1) of this title. If
resources are available, the Director shall
provide technical assistance and counseling,
upon request of the owner of the structure,
regarding wet flood-proofing and other flood
damage reduction measures for agricultural
structures. The Director shall not be required to make flood insurance coverage
available for such an agricultural structure
unless the structure is wet flood-proofed

Page 5181

TITLE 42—THE PUBLIC HEALTH AND WELFARE

through permanent or contingent measures
applied to the structure or its contents that
prevent or provide resistance to damage
from flooding by allowing flood waters to
pass through the structure, as determined by
the Director.
(C) Prohibition on disaster relief
Notwithstanding any other provision of
law, any agricultural structure repaired or
restored pursuant to subparagraph (A) shall
not be eligible for disaster relief assistance
under any program administered by the Director or any other Federal agency.
(D) Definitions
For purposes of this paragraph—
(i) the term ‘‘agricultural structure’’
means any structure used exclusively in
connection with the production, harvesting, storage, raising, or drying of agricultural commodities; and
(ii) the term ‘‘agricultural commodities’’
means agricultural commodities and livestock.
(b) Community rating system and incentives for
community floodplain management
(1) Authority and goals
The Director shall carry out a community
rating system program, under which communities participate voluntarily—
(A) to provide incentives for measures that
reduce the risk of flood or erosion damage
that exceed the criteria set forth in section
4102 of this title and evaluate such measures;
(B) to encourage adoption of more effective measures that protect natural and beneficial floodplain functions;
(C) to encourage floodplain and erosion
management; and
(D) to promote the reduction of Federal
flood insurance losses.
(2) Incentives
The program shall provide incentives in the
form of credits on premium rates for flood insurance coverage in communities that the Director determines have adopted and enforced
measures that reduce the risk of flood and erosion damage that exceed the criteria set forth
in section 4102 of this title. In providing incentives under this paragraph, the Director may
provide for credits to flood insurance premium
rates in communities that the Director determines have implemented measures that protect natural and beneficial floodplain functions.
(3) Credits
The credits on premium rates for flood insurance coverage shall be based on the estimated reduction in flood and erosion damage
risks resulting from the measures adopted by
the community under this program. If a community has received mitigation assistance
under section 4104c of this title, the credits
shall be phased in a manner, determined by
the Director, to recover the amount of such
assistance provided for the community.
(4) Reports
Not later than 2 years after September 23,
1994, and not less than every 2 years there-

§ 4022

after, the Director shall submit a report to the
Congress regarding the program under this
subsection. Each report shall include an
analysis of the cost-effectiveness of the program, any other accomplishments or shortcomings of the program, and any recommendations of the Director for legislation regarding
the program.
(c) Replacement of mobile homes on original
sites
(1) Community participation
The placement of any mobile home on any
site shall not affect the eligibility of any community to participate in the flood insurance
program under this chapter and the Flood Disaster Protection Act of 1973 (notwithstanding
that such placement may fail to comply with
any elevation or flood damage mitigation requirements), if—
(A) such mobile home was previously located on such site;
(B) such mobile home was relocated from
such site because of flooding that threatened
or affected such site; and
(C) such replacement is conducted not
later than the expiration of the 180-day period that begins upon the subsidence (in the
area of such site) of the body of water that
flooded to a level considered lower than
flood levels.
(2) Definition
For purposes of this subsection, the term
‘‘mobile home’’ has the meaning given such
term in the law of the State in which the mobile home is located.
(Pub. L. 90–448, title XIII, § 1315, Aug. 1, 1968, 82
Stat. 580; Pub. L. 91–152, title IV, § 410(b), Dec. 24,
1969, 83 Stat. 397; Pub. L. 98–181, title IV,
§ 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L.
103–325, title V, §§ 541, 580, Sept. 23, 1994, 108 Stat.
2268, 2285; Pub. L. 108–264, title I, § 108, June 30,
2004, 118 Stat. 724.)
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a)(1) and (c)(1),
was in the original a reference to ‘‘this title’’ meaning
title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572,
known as the National Flood Insurance Act of 1968,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short
Title note set out under section 4001 of this title and
Tables.
The Flood Disaster Protection Act of 1973, referred to
in subsec. (c)(1), is Pub. L. 93–234, Dec. 31, 1973, 87 Stat.
975, as amended. For complete classification of this Act
to the Code, see Short Title of 1973 Amendment note
set out under section 4001 of this title and Tables.
AMENDMENTS
2004—Subsec. (c). Pub. L. 108–264 added subsec. (c).
1994—Subsec. (a)(1). Pub. L. 103–325, § 541(1), designated existing provisions as subsec. (a)(1) and inserted headings.
Subsec. (a)(2). Pub. L. 103–325, § 580, added par. (2).
Subsec. (b). Pub. L. 103–325, § 541(2), added subsec. (b).
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
1969—Pub. L. 91–152 substituted provisions prohibiting
new flood insurance coverage after Dec. 31, 1971, unless
adequate land use measures have been adopted, for provisions prohibiting such coverage after June 30, 1970,
unless permanent land use measures have been adopted.

§ 4023

TITLE 42—THE PUBLIC HEALTH AND WELFARE
TRANSFER OF FUNCTIONS

For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4023. Properties in violation of State and local
law
No new flood insurance coverage shall be provided under this chapter for any property which
the Director finds has been declared by a duly
constituted State or local zoning authority, or
other authorized public body, to be in violation
of State or local laws, regulations, or ordinances
which are intended to discourage or otherwise
restrict land development or occupancy in floodprone areas.
(Pub. L. 90–448, title XIII, § 1316, Aug. 1, 1968, 82
Stat. 580; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4024. Coordination with other programs
In carrying out this chapter, the Director
shall consult with other departments and agencies of the Federal Government, and with interstate, State, and local agencies having responsibilities for flood control, flood forecasting, or
flood damage prevention, in order to assure that
the programs of such agencies and the flood in-

Page 5182

surance program authorized under this chapter
are mutually consistent.
(Pub. L. 90–448, title XIII, § 1317, Aug. 1, 1968, 82
Stat. 581; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4025. Flood insurance advisory committee
(a) Appointment; duties
The Director shall appoint a flood insurance
advisory committee without regard to the provisions of title 5 governing appointments in the
competitive service, and such committee shall
advise the Director in the preparation of any
regulations prescribed in accordance with this
chapter and with respect to policy matters arising in the administration of this chapter, and
shall perform such other responsibilities as the
Director may, from time to time, assign to such
committee.
(b) Membership
Such committee shall consist of not more
than fifteen persons and such persons shall be
selected from among representatives of—
(1) the insurance industry,
(2) State and local governments,
(3) lending institutions,
(4) the homebuilding industry, and
(5) the general public.
(c) Compensation and travel expenses
Members of the committee shall, while attending conferences or meetings thereof, be entitled
to receive compensation at a rate fixed by the
Director but not exceeding $100 per day, including traveltime, and while so serving away from
their homes or regular places of business they
may be allowed travel expenses, including per
diem in lieu of subsistence, as is authorized
under section 5703 of title 5 for persons in the
Government service employed intermittently.

Page 5183

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(Pub. L. 90–448, title XIII, § 1318, Aug. 1, 1968, 82
Stat. 581; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
1983—Subsecs. (a), (c). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
TERMINATION OF ADVISORY COMMITTEES
Advisory committees in existence on Jan. 5, 1973, to
terminate not later than the expiration of the 2-year
period following Jan. 5, 1973, unless, in the case of a
committee established by the President or an officer of
the Federal Government, such committee is renewed by
appropriate action prior to the expiration of such 2year period, or in the case of a committee established
by the Congress, its duration is otherwise provided by
law. Advisory committees established after Jan. 5, 1973,
to terminate not later than the expiration of the 2-year
period beginning on the date of their establishment,
unless, in the case of a committee established by the
President or an officer of the Federal Government, such
committee is renewed by appropriate action prior to
the expiration of such 2-year period, or in the case of
a committee established by the Congress, its duration
is otherwise provided by law. See section 14 of Pub. L.
92–463, Oct. 6, 1972, 86 Stat. 776, set out in the Appendix
to Title 5, Government Organization and Employees.

§ 4026. Expiration of program
No new contract for flood insurance under this
chapter shall be entered into after the earlier of
the date of the enactment into law of an Act
that specifically amends the date specified in
this section or May 31, 2012.
(Pub. L. 90–448, title XIII, § 1319, Aug. 1, 1968, 82
Stat. 581; Pub. L. 93–4, Feb. 2, 1973, 87 Stat. 4;
Pub. L. 93–38, June 5, 1973, 87 Stat. 73; Pub. L.
93–234, title I, § 105, Dec. 31, 1973, 87 Stat. 979;
Pub. L. 95–60, § 3, June 30, 1977, 91 Stat. 257; Pub.
L. 95–80, § 3, July 31, 1977, 91 Stat. 339; Pub. L.
95–128, title VII, § 701(a), Oct. 12, 1977, 91 Stat.
1144; Pub. L. 95–406, § 6(a), Sept. 30, 1978, 92 Stat.
880; Pub. L. 95–557, title III, § 308(a), Oct. 31, 1978,
92 Stat. 2098; Pub. L. 96–153, title VI, § 602(a),
Dec. 21, 1979, 93 Stat. 1137; Pub. L. 97–35, title III,
§ 341(b)(1), Aug. 13, 1981, 95 Stat. 418; Pub. L.

§ 4026

97–289, § 4(a), Oct. 6, 1982, 96 Stat. 1231; Pub. L.
98–35, § 4(a), May 26, 1983, 97 Stat. 198; Pub. L.
98–109, § 5(a), Oct. 1, 1983, 97 Stat. 746; Pub. L.
98–181, title IV, § 451(a), Nov. 30, 1983, 97 Stat.
1229; Pub. L. 99–120, § 4(a)(1), Oct. 8, 1985, 99 Stat.
503; Pub. L. 99–156, § 4(a)(1), Nov. 15, 1985, 99 Stat.
816; Pub. L. 99–219, § 4(a)(1), Dec. 26, 1985, 99 Stat.
1731; Pub. L. 99–267, § 4(a)(1), Mar. 27, 1986, 100
Stat. 74; Pub. L. 99–272, title III, § 3010(a)(1), Apr.
7, 1986, 100 Stat. 106; Pub. L. 99–289, § 1(b), May 2,
1986, 100 Stat. 412; Pub. L. 99–345, § 1, June 24,
1986, 100 Stat. 673; Pub. L. 99–430, Sept. 30, 1986,
100 Stat. 986; Pub. L. 100–122, § 1, Sept. 30, 1987,
101 Stat. 793; Pub. L. 100–154, Nov. 5, 1987, 101
Stat. 890; Pub. L. 100–170, Nov. 17, 1987, 101 Stat.
914; Pub. L. 100–179, Dec. 3, 1987, 101 Stat. 1018;
Pub. L. 100–200, Dec. 21, 1987, 101 Stat. 1327; Pub.
L. 100–242, title V, § 541(a), Feb. 5, 1988, 101 Stat.
1939; Pub. L. 101–137, § 1(a), Nov. 3, 1989, 103 Stat.
824; Pub. L. 101–508, title II, § 2302(a), Nov. 5, 1990,
104 Stat. 1388–23; Pub. L. 103–325, title V, § 571(a),
Sept. 23, 1994, 108 Stat. 2277; Pub. L. 104–204, title
III, Sept. 26, 1996, 110 Stat. 2915; Pub. L. 105–46,
§ 118, Sept. 30, 1997, 111 Stat. 1157; Pub. L. 105–65,
title III, Oct. 27, 1997, 111 Stat. 1377; Pub. L.
105–276, title III, title V, § 599D(a), Oct. 21, 1998,
112 Stat. 2502, 2663; Pub. L. 107–73, title III, Nov.
26, 2001, 115 Stat. 689; Pub. L. 108–3, § 2(a)(2), Jan.
13, 2003, 117 Stat. 7; Pub. L. 108–171, § 2(a)(1), Dec.
6, 2003, 117 Stat. 2064; Pub. L. 108–199, div. H,
§ 136(a)(1), Jan. 23, 2004, 118 Stat. 442; Pub. L.
108–264, title I, § 101(b), June 30, 2004, 118 Stat.
714; Pub. L. 111–196, § 2(a), July 2, 2010, 124 Stat.
1352; Pub. L. 111–250, § 2(a), Sept. 30, 2010, 124
Stat. 2630; Pub. L. 112–74, div. D, title V, § 573,
Dec. 23, 2011, 125 Stat. 985.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
2011—Pub. L. 112–74 substituted ‘‘the earlier of the
date of the enactment into law of an Act that specifically amends the date specified in this section or May
31, 2012’’ for ‘‘September 30, 2011’’.
2010—Pub. L. 111–250 substituted ‘‘September 30, 2011’’
for ‘‘September 30, 2010’’.
Pub. L. 111–196 substituted ‘‘September 30, 2010’’ for
‘‘September 30, 2008’’.
2004—Pub. L. 108–264 substituted ‘‘after September 30,
2008’’ for ‘‘after March 31, 2004’’.
Pub. L. 108–199, which directed the substitution of
‘‘June 30, 2004.’’ for ‘‘December 31, 2003’’, could not be
executed because of the amendment by Pub. L. 108–171.
See 2003 Amendment note below.
2003—Pub. L. 108–171 substituted ‘‘March 31, 2004’’ for
‘‘December 31, 2003’’.
Pub. L. 108–3 substituted ‘‘after December 31, 2003’’
for ‘‘after December 31, 2002’’.
2001—Pub. L. 107–73 substituted ‘‘December 31, 2002’’
for ‘‘September 30, 2001’’.
1998—Pub. L. 105–276, § 599D(a), which directed the
substitution of ‘‘2001’’ for ‘‘1998’’, was executed by substituting ‘‘2001’’ for ‘‘1999’’ to reflect the probable intent of Congress and the amendment by Pub. L. 105–276,
title III, see below.
Pub. L. 105–276, title III, substituted ‘‘1999’’ for ‘‘1998’’.
1997—Pub. L. 105–65 substituted ‘‘September 30, 1998’’
for ‘‘October 23, 1997’’.

§ 4027

TITLE 42—THE PUBLIC HEALTH AND WELFARE

Pub. L. 105–46 substituted ‘‘October 23, 1997’’ for ‘‘September 30, 1997’’.
1996—Pub. L. 104–204 substituted ‘‘September 30, 1997’’
for ‘‘September 30, 1996’’.
1994—Pub. L. 103–325 substituted ‘‘September 30, 1996’’
for ‘‘September 30, 1995’’.
1990—Pub. L. 101–508 substituted ‘‘September 30, 1995’’
for ‘‘September 30, 1991’’.
1989—Pub. L. 101–137 substituted ‘‘September 30, 1991’’
for ‘‘September 30, 1989’’.
1988—Pub. L. 100–242 substituted ‘‘September 30, 1989’’
for ‘‘March 15, 1988’’.
1987—Pub. L. 100–200 substituted ‘‘March 15, 1988’’ for
‘‘December 16, 1987’’.
Pub. L. 100–179 substituted ‘‘December 16, 1987’’ for
‘‘December 2, 1987’’.
Pub. L. 100–170 substituted ‘‘December 2, 1987’’ for
‘‘November 15, 1987’’.
Pub. L. 100–154 substituted ‘‘November 15, 1987’’ for
‘‘October 31, 1987’’.
Pub. L. 100–122 substituted ‘‘October 31, 1987’’ for
‘‘September 30, 1987’’.
1986—Pub. L. 99–430 substituted ‘‘September 30, 1987’’
for ‘‘September 30, 1986’’.
Pub. L. 99–345 substituted ‘‘September 30, 1986’’ for
‘‘June 6, 1986’’.
Pub. L. 99–289 substituted ‘‘June 6, 1986’’ for ‘‘April 30,
1986’’.
Pub. L. 99–272 directed amendment identical to Pub.
L. 99–219 substituting ‘‘March 17, 1986’’ for ‘‘December
15, 1985’’.
Pub. L. 99–267 substituted ‘‘April 30, 1986’’ for ‘‘March
17, 1986’’.
1985—Pub. L. 99–219 substituted ‘‘March 17, 1986’’ for
‘‘December 15, 1985’’.
Pub. L. 99–156 substituted ‘‘December 15, 1985’’ for
‘‘November 14, 1985’’.
Pub. L. 99–120 substituted ‘‘November 14, 1985’’ for
‘‘September 30, 1985’’.
1983—Pub. L. 98–181 substituted ‘‘September 30, 1985’’
for ‘‘November 30, 1983’’.
Pub. L. 98–109 substituted ‘‘November 30, 1983’’ for
‘‘September 30, 1983’’.
Pub. L. 98–35 substituted ‘‘September 30, 1983’’ for
‘‘May 20, 1983’’.
1982—Pub. L. 97–289 substituted ‘‘May 20, 1983’’ for
‘‘September 30, 1982’’.
1981—Pub. L. 97–35 substituted ‘‘1982’’ for ‘‘1981’’.
1979—Pub. L. 96–153 substituted ‘‘September 30, 1981’’
for ‘‘September 30, 1980’’.
1978—Pub. L. 95–557 substituted ‘‘September 30, 1980’’
for ‘‘October 31, 1978’’.
Pub. L. 95–406 substituted ‘‘October 31, 1978’’ for ‘‘September 30, 1978’’.
1977—Pub. L. 95–128 substituted ‘‘September 30, 1978’’
for ‘‘September 30, 1977’’.
Pub. L. 95–80 substituted ‘‘September 30, 1977’’ for
‘‘July 31, 1977’’.
Pub. L. 95–60 substituted ‘‘July 31, 1977’’ for ‘‘June 30,
1977’’.
1973—Pub. L. 93–234 substituted expiration of program
provisions for $6,000,000,000 limitation on flood insurance coverage outstanding.
Pub. L. 93–38 substituted ‘‘$6,000,000,000’’ for
‘‘$4,000,000,000’’.
Pub.
L.
93–4
substituted
‘‘$4,000,000,000’’
for
‘‘$2,500,000,000’’.
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–196 considered effective on
May 31, 2010, see section 2(c) of Pub. L. 111–196, set out
as a note under section 4016 of this title.

Page 5184

Amendment by Pub. L. 108–3 effective Dec. 31, 2002,
see section 2(b) of Pub. L. 108–3, set out as a note under
section 4016 of this title.
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105–276, title V, § 599D(c), Oct. 21, 1998, 112
Stat. 2663, provided that: ‘‘The amendments made by
this section [amending this section and section 4056 of
this title] are made on, and shall apply beginning upon,
the date of the enactment of this Act [Oct. 21, 1998].’’
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of Title 12, Banks and Banking.
EXTENSION OF PROGRAM
Pub. L. 110–329, div. A, § 145, Sept. 30, 2008, 122 Stat.
3581, as amended by Pub. L. 111–8, div. J, § 101, Mar. 11,
2009, 123 Stat. 988, provided that: ‘‘Sections 1309(a) and
1319 of the National Flood Insurance Act of 1968 (42
U.S.C. 4016(a) and 4026) shall each be applied by substituting [‘]September 30, 2009[’] for ‘September 30,
2008’.’’
CONTINUING APPROPRIATIONS FOR FISCAL YEAR 1998
The expiration date of Oct. 23, 1997 (see 1997 Amendment note above) was temporarily extended to Nov. 7,
1997, by Pub. L. 105–64, Oct. 23, 1997, 111 Stat. 1343.

§ 4027. Biennial report to President
(a) In general
The Director shall biennially submit a report
of operations under this chapter to the President for submission to the Congress.
(b) Effects of flood insurance program
The Director shall include, as part of the biennial report submitted under subsection (a) of
this section, a chapter reporting on the effects
on the flood insurance program observed
through implementation of requirements under
the Riegle Community Development and Regulatory Improvement Act of 1994.
(Pub. L. 90–448, title XIII, § 1320, Aug. 1, 1968, 82
Stat. 581; Pub. L. 96–470, title II, § 205(b), Oct. 19,
1980, 94 Stat. 2244; Pub. L. 98–181, title IV,
§ 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L.
103–325, title V, § 581, Sept. 23, 1994, 108 Stat.
2286.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
The Riegle Community Development and Regulatory
Improvement Act of 1994, referred to in subsec. (b), is
Pub. L. 103–325, Sept. 23, 1994, 108 Stat. 2160. For complete classification of this Act to the Code, see Short
Title note set out under section 4701 of Title 12, Banks
and Banking, and Tables.

EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108–199 considered to have
taken effect on Dec. 31, 2003, see section 136(b) of div. H
of Pub. L. 108–199, set out as a note under section 4016
of this title.
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendment by Pub. L. 108–171 effective Dec. 31, 2003,
see section 2(b) of Pub. L. 108–171, set out as a note
under section 4016 of this title.

AMENDMENTS
1994—Pub. L. 103–325 designated existing provisions as
subsec. (a), inserted heading, and added subsec. (b).
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
1980—Pub. L. 96–470 substituted ‘‘biennially submit’’
for ‘‘include’’ and struck out ‘‘in the annual report’’
after ‘‘under this chapter’’ and ‘‘required by section
3536 of this title’’ after ‘‘the Congress’’.

Page 5185

TITLE 42—THE PUBLIC HEALTH AND WELFARE
TRANSFER OF FUNCTIONS

For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4028. John H. Chafee Coastal Barrier Resources
System
(a) No new flood insurance coverage may be
provided under this chapter on or after October
1, 1983, for any new construction or substantial
improvements of structures located on any
coastal barrier within the John H. Chafee Coastal Barrier Resources System established by section 3503 of title 16. A federally insured financial
institution may make loans secured by structures which are not eligible for flood insurance
by reason of this section.
(b) No new flood insurance coverage may be
provided under this chapter after the expiration
of the 1-year period beginning on November 16,
1990, for any new construction or substantial improvements of structures located in any area
identified and depicted on the maps referred to
in section 3503(a) of title 16 as an area that is (1)
not within the John H. Chafee Coastal Barrier
Resources System and (2) is in an otherwise protected area. Notwithstanding the preceding sentence, new flood insurance coverage may be provided for structures in such protected areas that
are used in a manner consistent with the purpose for which the area is protected.
(Pub. L. 90–448, title XIII, § 1321, as added Pub. L.
97–35, title III, § 341(d)(1), Aug. 13, 1981, 95 Stat.
419; amended Pub. L. 97–348, § 11(a), Oct. 18, 1982,
96 Stat. 1658; Pub. L. 101–591, § 9, Nov. 16, 1990, 104
Stat. 2938; Pub. L. 106–167, § 3(c)(7), Dec. 9, 1999,
113 Stat. 1804.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
1999—Pub. L. 106–167 amended section catchline and
substituted ‘‘John H. Chafee Coastal Barrier Resources
System’’ for ‘‘Coastal Barrier Resources System’’ in
subsecs. (a) and (b).
1990—Pub. L. 101–591 designated existing provisions as
subsec. (a) and added subsec. (b).
1982—Subsecs. (a) to (c). Pub. L. 97–348 struck out subsec. designations in subsecs. (a) and (c), in provisions of
former subsec. (a) substituted ‘‘on any coastal barrier
within the Coastal Barrier Resources System established by section 3503 of title 16’’ for ‘‘on undeveloped
coastal barriers which shall be designated by the Sec-

§ 4029

retary of the Interior’’, and struck out subsec. (b)
which provided definitions for purposes of this section.
EFFECTIVE DATE
Section effective Oct. 1, 1981, see section 371 of Pub.
L. 97–35, set out as a note under section 3701 of Title 12,
Banks and Banking.
STUDY FOR DESIGNATION OF UNDEVELOPED COASTAL
BARRIERS; REPORT AND RECOMMENDATIONS TO CONGRESS

Section 341(d)(2) of Pub. L. 97–35, relating to a study
by the Secretary of the Interior for the purpose of designating the undeveloped coastal barriers affected by
this section, and transmittal to Congress of a report on
such study, was repealed by Pub. L. 97–348, § 11(b), Oct.
18, 1982, 96 Stat. 1659.

§ 4029. Colorado River Floodway
(a) Renewal and transfer of policies; acquisition
of policies after filing of maps
Owners of existing National Flood Insurance
Act policies with respect to structures located
within the Floodway established under section
1600c of title 43 shall have the right to renew and
transfer such policies. Owners of existing structures located within said Floodway on October 8,
1986, who have not acquired National Flood Insurance Act policies shall have the right to acquire policies with respect to such structures for
six months after the Secretary of the Interior
files the Floodway maps required by section
1600c(b)(2) 1 of title 43 and to renew and transfer
such policies.
(b) New coverage for new construction or substantial improvements
No new flood insurance coverage may be provided under this chapter on or after a date six
months after October 8, 1986, for any new construction or substantial improvements of structures located within the Colorado River Floodway established by section 1600c of title 43. New
construction includes all structures that are not
insurable prior to that date.
(c) Establishment of temporary boundaries
The Secretary of the Interior may by rule
after notice and comment pursuant to section
553 of title 5 establish temporary Floodway
boundaries to be in effect until the maps required by section 1600c(b)(2) 1 of title 43 are filed,
for the purpose of enforcing subsections (b) and
(d) of this section.
(d) Loans by federally supervised, approved, regulated, or insured financial institutions
A regulated lending institution or Federal
agency lender may make loans secured by structures which are not eligible for flood insurance
by reason of this section: Provided, That prior to
making such a loan, such institution determines
that the loans or structures securing the loan
are within the Floodway.
(Pub. L. 90–448, title XIII, § 1322, as added Pub. L.
99–450, § 12, Oct. 8, 1986, 100 Stat. 1135; amended
Pub. L. 100–242, title V, § 545(e), Feb. 5, 1988, 101
Stat. 1942; Pub. L. 103–325, title V, § 512(b), Sept.
23, 1994, 108 Stat. 2257.)
REFERENCES IN TEXT
The National Flood Insurance Act, referred to in subsec. (a), probably means the National Flood Insurance
1 See

References in Text note below.

§ 4030

TITLE 42—THE PUBLIC HEALTH AND WELFARE

Page 5186

Act of 1968, title XIII of Pub. L. 90–448, Aug. 1, 1968, 82
Stat. 572, as amended, which is classified principally to
this chapter (§ 4001 et seq.). For complete classification
of this Act to the Code, see Short Title note set out
under section 4001 of this title and Tables.
Section 1600c(b)(2) of title 43, referred to in subsecs.
(a) and (c), was struck out and former subsec. (b)(1)(ii)
redesignated (b)(2) of section 1600c by Pub. L. 105–362,
title IX, § 901(d)(1), Nov. 10, 1998, 112 Stat. 3289. As
amended, section 1600c(b)(2) no longer relates to maps
required to be prepared and filed by the Secretary.
This chapter, referred to in subsec. (b), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.

gation pilot program under section 4102a of this
title, any assistance provided under the mitigation assistance program under section 4104c of
this title, and any funding provided under section 4030 of this title) with respect to a property
shall not be considered income or a resource of
the owner of the property when determining eligibility for or benefit levels under any income
assistance or resource-tested program that is
funded in whole or in part by an agency of the
United States or by appropriated funds of the
United States.

AMENDMENTS

This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.

1994—Subsec. (d). Pub. L. 103–325 substituted ‘‘regulated lending institution or Federal agency lender’’ for
‘‘federally supervised, approved, regulated or insured financial institution’’.
1988—Pub. L. 100–242 inserted section catchline.

§ 4030. Grants for repetitive insurance claims
properties
(a) In general
The Director may provide funding for mitigation actions that reduce flood damages to individual properties for which 1 or more claim payments for losses have been made under flood insurance coverage under this chapter, but only if
the Director determines that—
(1) such activities are in the best interest of
the National Flood Insurance Fund; and
(2) such activities cannot be funded under
the program under section 4104c of this title
because—
(A) the requirements of section 4104c(g) of
this title are not being met by the State or
community in which the property is located;
or
(B) the State or community does not have
the capacity to manage such activities.
(b) Priority for worst-case properties
In determining the properties for which funding is to be provided under this section, the Director shall consult with the States in which
such properties are located and provide assistance for properties in the order that will result
in the greatest amount of savings to the National Flood Insurance Fund in the shortest period of time.
(Pub. L. 90–448, title XIII, § 1323, as added Pub. L.
108–264, title I, § 104(a), June 30, 2004, 118 Stat.
722.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.

§ 4031. Treatment of certain payments
Assistance provided under a program under
this chapter for flood mitigation activities (including any assistance provided under the miti-

(Pub. L. 90–448, title XIII, § 1324, as added Pub. L.
109–64, § 1, Sept. 20, 2005, 119 Stat. 1997.)
REFERENCES IN TEXT

SUBCHAPTER II—ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE
PROGRAM
§ 4041. Implementation of program
Following such consultation with representatives of the insurance industry as may be necessary, the Director shall implement the flood
insurance program authorized under subchapter
I of this chapter in accordance with the provisions of part A of this subchapter and, if a determination is made by him under section 4071 of
this title, under part B of this subchapter.
(Pub. L. 90–448, title XIII, § 1330, Aug. 1, 1968, 82
Stat. 581; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

PART A—INDUSTRY PROGRAM WITH FEDERAL
FINANCIAL ASSISTANCE
§ 4051. Industry flood insurance pool; requirements for participation
(a) The Director is authorized to encourage
and otherwise assist any insurance companies
and other insurers which meet the requirements
prescribed under subsection (b) of this section to

Page 5187

TITLE 42—THE PUBLIC HEALTH AND WELFARE

form, associate, or otherwise join together in a
pool—
(1) in order to provide the flood insurance
coverage authorized under subchapter I of this
chapter; and
(2) for the purpose of assuming, on such
terms and conditions as may be agreed upon,
such financial responsibility as will enable
such companies and other insurers, with the
Federal financial and other assistance available under this chapter, to assume a reasonable proportion of responsibility for the adjustment and payment of claims for losses
under the flood insurance program.
(b) In order to promote the effective administration of the flood insurance program under
this part, and to assure that the objectives of
this chapter are furthered, the Director is authorized to prescribe appropriate requirements
for insurance companies and other insurers participating in such pool including, but not limited to, minimum requirements for capital or
surplus or assets.
(Pub. L. 90–448, title XIII, § 1331, Aug. 1, 1968, 82
Stat. 582; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a)(2) and (b), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4052

participating therein) shall participate in premiums received and profits or losses realized
or sustained,
(3) the maximum amount of profit, established by the Director and set forth in the
schedules prescribed under section 4018 of this
title, which may be realized by such pool (and
the companies and other insurers participating therein),
(4) the terms and conditions under which operating costs and allowances set forth in the
schedules prescribed under section 4018 of this
title may be paid, and
(5) the terms and conditions under which
premium equalization payments under section
4054 of this title will be made and reinsurance
claims under section 4055 of this title will be
paid.
(c) Additional provisions
In addition, such agreements shall contain
such provisions as the Director finds necessary
to assure that—
(1) no insurance company or other insurer
which meets the requirements prescribed
under section 4051(b) of this title, and which
has indicated an intention to participate in
the flood insurance program on a risk-sharing
basis, will be excluded from participating in
the pool,
(2) the insurance companies and other insurers participating in the pool will take whatever action may be necessary to provide continuity of flood insurance coverage by the
pool, and
(3) any insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations will be permitted to cooperate with the pool as fiscal
agents or otherwise, on other than a risk-sharing basis, to the maximum extent practicable.
(Pub. L. 90–448, title XIII, § 1332, Aug. 1, 1968, 82
Stat. 582; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS

§ 4052. Agreements with flood insurance pool

1983—Subsecs. (a), (b)(3), (c). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.

(a) Authorization
The Director is authorized to enter into such
agreements with the pool formed or otherwise
created under this part as he deems necessary to
carry out the purposes of this chapter.
(b) Terms and conditions
Such agreements shall specify—
(1) the terms and conditions under which
risk capital will be available for the adjustment and payment of claims,
(2) the terms and conditions under which the
pool (and the companies and other insurers

For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and

TRANSFER OF FUNCTIONS

§ 4053

TITLE 42—THE PUBLIC HEALTH AND WELFARE

sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4053. Adjustment and payment of claims; judicial review; limitations; jurisdiction
The insurance companies and other insurers
which form, associate, or otherwise join together in the pool under this part may adjust
and pay all claims for proved and approved
losses covered by flood insurance in accordance
with the provisions of this chapter and, upon the
disallowance by any such company or other insurer of any such claim, or upon the refusal of
the claimant to accept the amount allowed upon
any such claim, the claimant, within one year
after the date of mailing of notice of disallowance or partial disallowance of the claim, may
institute an action on such claim against such
company or other insurer in the United States
district court for the district in which the insured property or the major part thereof shall
have been situated, and original exclusive jurisdiction is hereby conferred upon such court to
hear and determine such action without regard
to the amount in controversy.
(Pub. L. 90–448, title XIII, § 1333, Aug. 1, 1968, 82
Stat. 583; Pub. L. 98–181, title IV, § 451(d)(3), Nov.
30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
1983—Pub. L. 98–181 inserted ‘‘original exclusive’’ before ‘‘jurisdiction’’.

§ 4054. Premium equalization payments; basis;
aggregate amount; establishment of designated periods
(a) The Director, on such terms and conditions
as he may from time to time prescribe, shall
make periodic payments to the pool formed or
otherwise created under section 4051 of this
title, in recognition of such reductions in
chargeable premium rates under section 4015 of
this title below estimated premium rates under
section 4014(a)(1) of this title as are required in
order to make flood insurance available on reasonable terms and conditions.
(b) Designated periods under this section and
the methods for determining the sum of premiums paid or payable during such periods shall
be established by the Director.
(Pub. L. 90–448, title XIII, § 1334, Aug. 1, 1968, 82
Stat. 583; Pub. L. 93–234, title I, § 111, Dec. 31,
1973, 87 Stat. 981; Pub. L. 98–181, title IV,
§ 451(d)(1), Nov. 30, 1983, 97 Stat. 1229.)

Page 5188

scribing formula for sharing losses between Government and industry and permit necessary flexibility in
loss sharing to take into account longer-term loss experience trends and to compensate for lack of precision in
actuarial computations.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4055. Reinsurance coverage
(a) Availability for excess losses
The Director is authorized to take such action
as may be necessary in order to make available,
to the pool formed or otherwise created under
section 4051 of this title, reinsurance for losses
(due to claims for proved and approved losses
covered by flood insurance) which are in excess
of losses assumed by such pool in accordance
with the excess loss agreement entered into
under subsection (c) of this section.
(b) Availability pursuant to contract, agreement,
or other arrangement; payment of premium,
fee, or other charge
Such reinsurance shall be made available pursuant to contract, agreement, or any other arrangement, in consideration of such payment of
a premium, fee, or other charge as the Director
finds necessary to cover anticipated losses and
other costs of providing such reinsurance.
(c) Excess loss agreement; negotiation
The Director is authorized to negotiate an excess loss agreement, from time to time, under
which the amount of flood insurance retained by
the pool, after ceding reinsurance, shall be adequate to further the purposes of this chapter,
consistent with the objective of maintaining appropriate financial participation and risk sharing to the maximum extent practicable on the
part of participating insurance companies and
other insurers.
(d) Submission of excess losses on portfolio basis
All reinsurance claims for losses in excess of
losses assumed by the pool shall be submitted on
a portfolio basis by such pool in accordance with
terms and conditions established by the Director.
(Pub. L. 90–448, title XIII, § 1335, Aug. 1, 1968, 82
Stat. 583; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)

AMENDMENTS

REFERENCES IN TEXT

1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1973—Subsecs. (b), (c). Pub. L. 93–234 redesignated
subsec. (c) as (b) and struck out former subsec. (b) pre-

This chapter, referred to in subsec. (c), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classi-

Page 5189

TITLE 42—THE PUBLIC HEALTH AND WELFARE

fied principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4056. Emergency implementation of flood insurance program; applicability of other provisions of law
(a) Notwithstanding any other provisions of
this chapter, for the purpose of providing flood
insurance coverage at the earliest possible time,
the Director shall carry out the flood insurance
program authorized under subchapter I of this
chapter during the period ending on the date
specified in section 4026 of this title, in accordance with the provisions of this part and the
other provisions of this chapter insofar as they
relate to this part but subject to the modifications made by or under subsection (b) of this
section.
(b) In carrying out the flood insurance program pursuant to subsection (a) of this section,
the Director—
(1) shall provide insurance coverage without
regard to any estimated risk premium rates
which would otherwise be determined under
section 4014 of this title; and
(2) shall utilize the provisions and procedures contained in or prescribed by this part
(other than section 4054 of this title) and sections 4081 and 4082 of this title to such extent
and in such manner as he may consider necessary or appropriate to carry out the purpose
of this section.
(Pub. L. 90–448, title XIII, § 1336, as added Pub. L.
91–152, title IV, § 408, Dec. 24, 1969, 83 Stat. 396;
amended Pub. L. 92–213, § 2(a), Dec. 22, 1971, 85
Stat. 775; Pub. L. 93–234, title I, § 106, Dec. 31,
1973, 87 Stat. 979; Pub. L. 94–173, § 5, Dec. 23, 1975,
89 Stat. 1028; Pub. L. 94–375, § 14(b), Aug. 3, 1976,
90 Stat. 1075; Pub. L. 95–128, title VII, § 701(b),
Oct. 12, 1977, 91 Stat. 1144; Pub. L. 95–406, § 6(b),
Sept. 30, 1978, 92 Stat. 880; Pub. L. 95–557, title
III, § 308(b), Oct. 31, 1978, 92 Stat. 2098; Pub. L.
96–153, title VI, § 602(b), Dec. 21, 1979, 93 Stat.
1137; Pub. L. 97–35, title III, § 341(b)(2), Aug. 13,
1981, 95 Stat. 419; Pub. L. 97–289, § 4(b), Oct. 6,
1982, 96 Stat. 1231; Pub. L. 98–35, § 4(b), May 26,
1983, 97 Stat. 198; Pub. L. 98–109, § 5(b), Oct. 1,
1983, 97 Stat. 746; Pub. L. 98–181, title IV, § 451(b),
(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L. 99–120,

§ 4056

§ 4(a)(2), Oct. 8, 1985, 99 Stat. 503; Pub. L. 99–156,
§ 4(a)(2), Nov. 15, 1985, 99 Stat. 816; Pub. L. 99–219,
§ 4(a)(2), Dec. 26, 1985, 99 Stat. 1731; Pub. L.
99–267, § 4(a)(2), Mar. 27, 1986, 100 Stat. 74; Pub. L.
99–272, title III, § 3010(a)(2), Apr. 7, 1986, 100 Stat.
106; Pub. L. 99–289, § 1(b), May 2, 1986, 100 Stat.
412; Pub. L. 99–345, § 1, June 24, 1986, 100 Stat. 673;
Pub. L. 99–430, Sept. 30, 1986, 100 Stat. 986; Pub.
L. 100–122, § 1, Sept. 30, 1987, 101 Stat. 793; Pub. L.
100–154, Nov. 5, 1987, 101 Stat. 890; Pub. L. 100–170,
Nov. 17, 1987, 101 Stat. 914; Pub. L. 100–179, Dec.
3, 1987, 101 Stat. 1018; Pub. L. 100–200, Dec. 21,
1987, 101 Stat. 1327; Pub. L. 100–242, title V,
§ 541(b), Feb. 5, 1988, 101 Stat. 1939; Pub. L.
101–137, § 1(b), Nov. 3, 1989, 103 Stat. 824; Pub. L.
101–508, title II, § 2302(b), Nov. 5, 1990, 104 Stat.
1388–23; Pub. L. 103–325, title V, § 571(b), Sept. 23,
1994, 108 Stat. 2277; Pub. L. 105–46, § 118, Sept. 30,
1997, 111 Stat. 1157; Pub. L. 105–65, title III, Oct.
27, 1997, 111 Stat. 1377; Pub. L. 105–276, title III,
title V, § 599D(b), Oct. 21, 1998, 112 Stat. 2502, 2663;
Pub. L. 107–73, title III, Nov. 26, 2001, 115 Stat.
689; Pub. L. 108–3, § 2(a)(3), Jan. 13, 2003, 117 Stat.
7; Pub. L. 108–171, § 2(a)(3), Dec. 6, 2003, 117 Stat.
2064; Pub. L. 108–199, div. H, § 136(a)(3), Jan. 23,
2004, 118 Stat. 442; Pub. L. 108–264, title I, § 101(c),
June 30, 2004, 118 Stat. 714.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
2004—Subsec. (a). Pub. L. 108–264 substituted ‘‘during
the period ending on the date specified in section 4026
of this title, in accordance’’ for identical language.
Pub. L. 108–199 made amendment identical to that
made by Pub. L. 108–171. See 2003 Amendment note
below.
2003—Subsec. (a). Pub. L. 108–171 substituted ‘‘on the
date specified in section 4026 of this title’’ for ‘‘December 31, 2003’’.
Pub. L. 108–3 substituted ‘‘ending December 31, 2003,
in’’ for ‘‘ending December 31, 2002, in’’.
2001—Subsec. (a). Pub. L. 107–73 substituted ‘‘December 31, 2002’’ for ‘‘September 30, 2001’’.
1998—Subsec. (a). Pub. L. 105–276, § 599D(b), which directed the substitution of ‘‘2001’’ for ‘‘1998’’, was executed by substituting ‘‘2001’’ for ‘‘1999’’ to reflect the
probable intent of Congress and the amendment by
Pub. L. 105–276, title III, see below.
Pub. L. 105–276, title III, substituted ‘‘1999’’ for ‘‘1998’’.
1997—Subsec. (a). Pub. L. 105–65 substituted ‘‘September 30, 1998’’ for ‘‘October 23, 1997’’.
Pub. L. 105–46 substituted ‘‘October 23, 1997’’ for ‘‘September 30, 1996’’.
1994—Subsec. (a). Pub. L. 103–325 substituted ‘‘September 30, 1996’’ for ‘‘September 30, 1995’’.
1990—Subsec. (a). Pub. L. 101–508 substituted ‘‘September 30, 1995’’ for ‘‘September 30, 1991’’.
1989—Subsec. (a). Pub. L. 101–137 substituted ‘‘September 30, 1991’’ for ‘‘September 30, 1989’’.
1988—Subsec. (a). Pub. L. 100–242 substituted ‘‘September 30, 1989’’ for ‘‘March 15, 1988’’.
1987—Subsec. (a). Pub. L. 100–200 substituted ‘‘March
15, 1988’’ for ‘‘December 16, 1987’’.
Pub. L. 100–179 substituted ‘‘December 16, 1987’’ for
‘‘December 2, 1987’’.
Pub. L. 100–170 substituted ‘‘December 2, 1987’’ for
‘‘November 15, 1987’’.
Pub. L. 100–154 substituted ‘‘November 15, 1987’’ for
‘‘October 31, 1987’’.

§ 4071

TITLE 42—THE PUBLIC HEALTH AND WELFARE

Pub. L. 100–122 substituted ‘‘October 31, 1987’’ for
‘‘September 30, 1987’’.
1986—Subsec. (a). Pub. L. 99–430 substituted ‘‘September 30, 1987’’ for ‘‘September 30, 1986’’.
Pub. L. 99–345 substituted ‘‘September 30, 1986’’ for
‘‘June 6, 1986’’.
Pub. L. 99–289 substituted ‘‘June 6, 1986’’ for ‘‘April 30,
1986’’.
Pub. L. 99–272 directed amendment identical to Pub.
L. 99–219 substituting ‘‘March 17, 1986’’ for ‘‘December
15, 1985’’.
Pub. L. 99–267 substituted ‘‘April 30, 1986’’ for ‘‘March
17, 1986’’.
1985—Subsec. (a). Pub. L. 99–219 substituted ‘‘March
17, 1986’’ for ‘‘December 15, 1985’’.
Pub. L. 99–156 substituted ‘‘December 15, 1985’’ for
‘‘November 14, 1985’’.
Pub. L. 99–120 substituted ‘‘November 14, 1985’’ for
‘‘September 30, 1985’’.
1983—Subsec. (a). Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for ‘‘Secretary’’.
Pub. L. 98–181, § 451(b), substituted ‘‘September 30,
1985’’ for ‘‘November 30, 1983’’.
Pub. L. 98–109 substituted ‘‘November 30, 1983’’ for
‘‘September 30, 1983’’.
Pub. L. 98–35 substituted ‘‘September 30, 1983’’ for
‘‘May 20, 1983’’.
Subsec. (b). Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for ‘‘Secretary’’.
1982—Subsec. (a). Pub. L. 97–289 substituted ‘‘May 20,
1983’’ for ‘‘September 30, 1982’’.
1981—Subsec. (a). Pub. L. 97–35 substituted ‘‘1982’’ for
‘‘1981’’.
1979—Subsec. (a). Pub. L. 96–153 substituted ‘‘1981’’ for
‘‘1980’’.
1978—Subsec. (a). Pub. L. 95–557 substituted ‘‘September 30, 1980’’ for ‘‘October 31, 1978’’.
Pub. L. 95–406 substituted ‘‘October 31, 1978’’ for ‘‘September 30, 1978’’.
1977—Subsec. (a). Pub. L. 95–128 substituted ‘‘1978’’ for
‘‘1977’’.
1976—Subsec. (a). Pub. L. 94–375 substituted ‘‘September 30, 1977’’ for ‘‘December 31, 1976’’.
1975—Subsec. (a). Pub. L. 94–173 substituted ‘‘1976’’ for
‘‘1975’’.
1973—Subsec. (a). Pub. L. 93–234 substituted ‘‘1975’’ for
‘‘1973’’.
1971—Subsec. (a). Pub. L. 92–213 substituted ‘‘1973’’ for
‘‘1971’’.
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108–199 considered to have
taken effect on Dec. 31, 2003, see section 136(b) of div. H
of Pub. L. 108–199, set out as a note under section 4016
of this title.
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendment by Pub. L. 108–171 effective Dec. 31, 2003,
see section 2(b) of Pub. L. 108–171, set out as a note
under section 4016 of this title.
Amendment by Pub. L. 108–3 effective Dec. 31, 2002,
see section 2(b) of Pub. L. 108–3, set out as a note under
section 4016 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of Title 12, Banks and Banking.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agen-

Page 5190

cy, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
CONTINUING APPROPRIATIONS FOR FISCAL YEAR 1998
The expiration date of Oct. 23, 1997 (see 1997 Amendment note above) was temporarily extended to Nov. 7,
1997, by Pub. L. 105–64, Oct. 23, 1997, 111 Stat. 1343.

PART B—GOVERNMENT PROGRAM WITH INDUSTRY
ASSISTANCE
§ 4071. Federal operation of program; determination by Director; fiscal agents; report to Congress
(a) If at any time, after consultation with representatives of the insurance industry, the Director determines that operation of the flood insurance program as provided under part A cannot be carried out, or that such operation, in itself, would be assisted materially by the Federal
Government’s assumption, in whole or in part,
of the operational responsibility for flood insurance under this chapter (on a temporary or
other basis) he shall promptly undertake any
necessary arrangements to carry out the program of flood insurance authorized under subchapter I of this chapter through the facilities
of the Federal Government, utilizing, for purposes of providing flood insurance coverage, either—
(1) insurance companies and other insurers,
insurance agents and brokers, and insurance
adjustment organizations, as fiscal agents of
the United States,
(2) such other officers and employees of any
executive agency (as defined in section 105 of
title 5) as the Director and the head of any
such agency may from time to time, agree
upon, on a reimbursement or other basis, or
(3) both the alternatives specified in paragraphs (1) and (2).
(b) Upon making the determination referred to
in subsection (a) of this section, the Director
shall make a report to the Congress and, at the
same time, to the private insurance companies
participating in the National Flood Insurance
Program pursuant to section 4017 of this title.
Such report shall—
(1) state the reason for such determinations,
(2) be supported by pertinent findings,
(3) indicate the extent to which it is anticipated that the insurance industry will be utilized in providing flood insurance coverage
under the program, and
(4) contain such recommendations as the Director deems advisable.
The Director shall not implement the program
of flood insurance authorized under subchapter I
of this chapter through the facilities of the Federal Government until 9 months after the date
of submission of the report under this subsection
unless it would be impossible to continue to effectively carry out the National Flood Insurance
Program operations during this time.
(Pub. L. 90–448, title XIII, § 1340, Aug. 1, 1968, 82
Stat. 584; Pub. L. 98–181, title IV, § 451(d)(1), (4),

Page 5191

TITLE 42—THE PUBLIC HEALTH AND WELFARE

Nov. 30, 1983, 97 Stat. 1229; Pub. L. 101–137, § 3,
Nov. 3, 1989, 103 Stat. 824.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
1989—Subsec. (b). Pub. L. 101–137 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ‘‘Upon making the determination referred to in
subsection (a) of this section, and at least thirty days
prior to implementing the program of flood insurance
authorized under subchapter I of this chapter through
the facilities of the Federal Government, the Director
shall make a report to the Congress and such report
shall—
‘‘(1) state the reasons for such determination,
‘‘(2) be supported by pertinent findings,
‘‘(3) indicate the extent to which it is anticipated
that the insurance industry will be utilized in providing flood insurance coverage under the program, and
‘‘(4) contain such recommendations as the Director
deems advisable.’’
1983—Subsec. (a). Pub. L. 98–181, § 451(d)(1), in provisions preceding par. (1), substituted ‘‘Director’’ for
‘‘Secretary’’.
Subsec. (a)(2). Pub. L. 98–181, § 451(d)(4), struck out
‘‘officers and employees of the Department of Housing
and Urban Development, and’’ before ‘‘such other officers’’.
Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for
‘‘Secretary’’.
Subsec. (b). Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4072. Adjustment and payment of claims; judicial review; limitations; jurisdiction
In the event the program is carried out as provided in section 4071 of this title, the Director
shall be authorized to adjust and make payment
of any claims for proved and approved losses
covered by flood insurance, and upon the disallowance by the Director of any such claim, or
upon the refusal of the claimant to accept the
amount allowed upon any such claim, the claimant, within one year after the date of mailing of
notice of disallowance or partial disallowance by
the Director, may institute an action against
the Director on such claim in the United States
district court for the district in which the insured property or the major part thereof shall

§ 4081

have been situated, and original exclusive jurisdiction is hereby conferred upon such court to
hear and determine such action without regard
to the amount in the controversy.
(Pub. L. 90–448, title XIII, § 1341, Aug. 1, 1968, 82
Stat. 584; Pub. L. 98–181, title IV, § 451(d)(1), (5),
Nov. 30, 1983, 97 Stat. 1229.)
AMENDMENTS
1983—Pub. L. 98–181, § 451(d)(5), inserted ‘‘original exclusive’’ before ‘‘jurisdiction’’.
Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for
‘‘Secretary’’ wherever appearing.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

PART C—GENERAL PROVISIONS
§ 4081. Services by insurance industry; contracts,
agreements, or other arrangements
(a) In administering the flood insurance program under this subchapter, the Director is authorized to enter into any contracts, agreements, or other appropriate arrangements which
may, from time to time, be necessary for the
purpose of utilizing, on such terms and conditions as may be agreed upon, the facilities and
services of any insurance companies or other insurers, insurance agents and brokers, or insurance adjustment organizations; and such contracts, agreements, or arrangements may include provision for payment of applicable operating costs and allowances for such facilities
and services as set forth in the schedules prescribed under section 4018 of this title.
(b) Any such contracts, agreements, or other
arrangements may be entered into without regard to the provisions of section 6101 of title 41
or any other provision of law requiring competitive bidding and without regard to the provisions of the Federal Advisory Committee Act (5
U.S.C. App.).
(c) The Administrator of the Federal Emergency Management Agency shall hold any agent
or broker selling or undertaking to sell flood insurance under this chapter harmless from any
judgment for damages against such agent or
broker as a result of any court action by a policyholder or applicant arising out of an error or
omission on the part of the Federal Emergency
Management Agency, and shall provide any such
agent or broker with indemnification, including
court costs and reasonable attorney fees, arising
out of and caused by an error or omission on the
part of the Federal Emergency Management
Agency and its contractors. The Administrator

§ 4082

TITLE 42—THE PUBLIC HEALTH AND WELFARE

Page 5192

of the Federal Emergency Management Agency
may not hold harmless or indemnify an agent or
broker for his or her error or omission.

§ 4082. Use of insurance pool, companies, or
other private organizations for certain payments

(Pub. L. 90–448, title XIII, § 1345, Aug. 1, 1968, 82
Stat. 585; Pub. L. 97–35, title III, § 341(e), Aug. 13,
1981, 95 Stat. 419; Pub. L. 98–181, title IV,
§ 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L.
103–325, title V, § 574, Sept. 23, 1994, 108 Stat. 2278;
Pub. L. 109–295, title VI, § 612(c), Oct. 4, 2006, 120
Stat. 1410.)

(a) Authorization to enter into contracts for certain responsibilities
In order to provide for maximum efficiency in
the administration of the flood insurance program and in order to facilitate the expeditious
payment of any Federal funds under such program, the Director may enter into contracts
with pool formed or otherwise created under section 4051 of this title, or any insurance company
or other private organizations, for the purpose
of securing performance by such pool, company,
or organization of any or all of the following responsibilities:
(1) estimating and later determining any
amounts of payments to be made;
(2) receiving from the Director, disbursing,
and accounting for funds in making such payments;
(3) making such audits of the records of any
insurance company or other insurer, insurance
agent or broker, or insurance adjustment organization as may be necessary to assure that
proper payments are made; and
(4) otherwise assisting in such manner as the
contract may provide to further the purposes
of this chapter.
(b) Terms and conditions of contract
Any contract with the pool or an insurance
company or other private organization under
this section may contain such terms and conditions as the Director finds necessary or appropriate for carrying out responsibilities under
subsection (a) of this section, and may provide
for payment of any costs which the Director determines are incidental to carrying out such responsibilities which are covered by the contract.
(c) Competitive bidding
Any contract entered into under subsection (a)
of this section may be entered into without regard to section 6101 of title 41 or any other provision of law requiring competitive bidding.
(d) Findings of Director
No contract may be entered into under this
section unless the Director finds that the pool,
company, or organization will perform its obligations under the contract efficiently and effectively, and will meet such requirements as to financial responsibility, legal authority, and
other matters as he finds pertinent.
(e) Bond; liability of certifying officers and disbursing officers
(1) Any such contract may require the pool,
company, or organization or any of its officers
or employees certifying payments or disbursing
funds pursuant to the contract, or otherwise
participating in carrying out the contract, to
give surety bond to the United States in such
amount as the Director may deem appropriate.
(2) No individual designated pursuant to a contract under this section to certify payments
shall, in the absence of gross negligence or intent to defraud the United States, be liable with
respect to any payment certified by him under
this section.

REFERENCES IN TEXT
The Federal Advisory Committee Act, referred to in
subsec. (b), is Pub. L. 92–463, Oct. 6, 1972, 86 Stat. 770, as
amended, which is set out in the Appendix to Title 5,
Government Organization and Employees.
This chapter, referred to in subsec. (c), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
CODIFICATION
In subsec. (b), ‘‘section 6101 of title 41’’ substituted
for ‘‘section 3709 of the Revised Statutes (41 U.S.C. 5)’’
on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124
Stat. 3854, which Act enacted Title 41, Public Contracts.
AMENDMENTS
1994—Subsec. (b). Pub. L. 103–325 inserted before period at end ‘‘and without regard to the provisions of the
Federal Advisory Committee Act (5 U.S.C. App.)’’.
1983—Subsec. (a). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
1981—Subsec. (c). Pub. L. 97–35 added subsec. (c).
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of Title 12, Banks and Banking.
CHANGE OF NAME
‘‘Administrator of the Federal Emergency Management Agency’’ substituted for ‘‘Director of the Federal
Emergency Management Agency’’ in subsec. (c) on authority of section 612(c) of Pub. L. 109–295, set out as a
note under section 313 of Title 6, Domestic Security.
Any reference to the Administrator of the Federal
Emergency Management Agency in title VI of Pub. L.
109–295 or an amendment by title VI to be considered to
refer and apply to the Director of the Federal Emergency Management Agency until Mar. 31, 2007, see section 612(f)(2) of Pub. L. 109–295, set out as a note under
section 313 of Title 6.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

Page 5193

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(3) No officer disbursing funds shall in the absence of gross negligence or intent to defraud
the United States, be liable with respect to any
payment by him under this section if it was
based upon a voucher signed by an individual
designated to certify payments as provided in
paragraph (2) of this subsection.
(f) Term of contract; renewals; termination
Any contract entered into under this section
shall be for a term of one year, and may be made
automatically renewable from term to term in
the absence of notice by either party of an intention to terminate at the end of the current
term; except that the Director may terminate
any such contract at any time (after reasonable
notice to the pool, company, or organization involved) if he finds that the pool, company, or organization has failed substantially to carry out
the contract, or is carrying out the contract in
a manner inconsistent with the efficient and effective administration of the flood insurance
program authorized under this chapter.
(Pub. L. 90–448, title XIII, § 1346, Aug. 1, 1968, 82
Stat. 585; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a)(4) and (f), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
CODIFICATION
In subsec. (c), ‘‘section 6101 of title 41’’ substituted for
‘‘section 3709 of the Revised Statute (41 U.S.C. 5)’’ on
authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat.
3854, which Act enacted Title 41, Public Contracts.
AMENDMENTS
1983—Subsecs. (a), (b), (d), (e)(1), (f). Pub. L. 98–181
substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4083. Settlement of claims; arbitration
(a) The Director is authorized to make final
settlement of any claims or demands which may
arise as a result of any financial transactions
which he is authorized to carry out under this
subchapter, and may, to assist him in making
any such settlement, refer any disputes relating
to such claims or demands to arbitration, with
the consent of the parties concerned.

§ 4084

(b) Such arbitration shall be advisory in nature, and any award, decision, or recommendation which may be made shall become final only
upon the approval of the Director.
(Pub. L. 90–448, title XIII, § 1347, Aug. 1, 1968, 82
Stat. 586; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4084. Records and audits
(a) The flood insurance pool formed or otherwise created under part A of this subchapter,
and any insurance company or other private organization executing any contract, agreement,
or other appropriate arrangement with the Director under part B of this subchapter or this
part, shall keep such records as the Director
shall prescribe, including records which fully
disclose the total costs of the program undertaken or the services being rendered, and such
other records as will facilitate an effective
audit.
(b) The Director and the Comptroller General
of the United States, or any of their duly authorized representatives, shall have access for
the purpose of audit and examination to any
books, documents, papers, and records of the
pool and any such insurance company or other
private organization that are pertinent to the
costs of the program undertaken or the services
being rendered.
(Pub. L. 90–448, title XIII, § 1348, Aug. 1, 1968, 82
Stat. 586; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,

§ 4101

TITLE 42—THE PUBLIC HEALTH AND WELFARE

to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

SUBCHAPTER
III—COORDINATION
OF
FLOOD INSURANCE WITH LAND-MANAGEMENT
PROGRAMS
IN
FLOOD-PRONE
AREAS
§ 4101. Identification of flood-prone areas
(a) Publication of information; establishment of
flood-risk zones; estimates of flood-caused
loss
The Director is authorized to consult with, receive information from, and enter into any
agreements or other arrangements with the Secretaries of the Army, the Interior, Agriculture,
and Commerce, the Tennessee Valley Authority,
and the heads of other Federal departments or
agencies, on a reimbursement basis, or with the
head of any State or local agency, or enter into
contracts with any persons or private firms, in
order that he may—
(1) identify and publish information with respect to all flood plain areas, including coastal
areas located in the United States, which has
special flood hazards, within five years following August 1, 1968, and
(2) establish or update flood-risk zone data
in all such areas, and make estimates with respect to the rates of probable flood caused loss
for the various flood risk zones for each of
these areas until the date specified in section
4026 of this title.
(b) Accelerated identification of flood-risk zones;
authority of Director: grants, technical assistance, transactions, and payments
The Director is directed to accelerate the
identification of risk zones within flood-prone
and mudslide-prone areas, as provided by subsection (a)(2) of this section, in order to make
known the degree of hazard within each such
zone at the earliest possible date. To accomplish
this objective, the Director is authorized, without regard to subsections (a) and (b) of section
3324 of title 31 and section 6101 of title 41, to
make grants, provide technical assistance, and
enter into contracts, cooperative agreements, or
other transactions, on such terms as he may
deem appropriate, or consent to modifications
thereof, and to make advance or progress payments in connection therewith.
(c) Priority in allocation of manpower and other
available resources for identification and
mapping of flood hazard areas and flood-risk
zones
The Secretary of Defense (through the Army
Corps of Engineers), the Secretary of the Interior (through the United States Geological Survey), the Secretary of Agriculture (through the
Soil Conservation Service), the Secretary of
Commerce (through the National Oceanic and
Atmospheric Administration), the head of the
Tennessee Valley Authority, and the heads of all
other Federal agencies engaged in the identification or delineation of flood-risk zones within
the several States shall, in consultation with

Page 5194

the Director, give the highest practicable priority in the allocation of available manpower and
other available resources to the identification
and mapping of flood hazard areas and flood-risk
zones, in order to assist the Director to meet the
deadline established by this section.
(d) Plan for bringing communities with floodrisk zones into full program status
The Director shall, not later than September
30, 1984, submit to the Congress a plan for bringing all communities containing flood-risk zones
into full program status by September 30, 1987.
(e) Review of flood maps
Once during each 5-year period (the 1st such
period beginning on September 23, 1994) or more
often as the Director determines necessary, the
Director shall assess the need to revise and update all floodplain areas and flood risk zones
identified, delineated, or established under this
section, based on an analysis of all natural hazards affecting flood risks.
(f) Updating flood maps
The Director shall revise and update any
floodplain areas and flood-risk zones—
(1) upon the determination of the Director,
according to the assessment under subsection
(e) of this section, that revision and updating
are necessary for the areas and zones; or
(2) upon the request from any State or local
government stating that specific floodplain
areas or flood-risk zones in the State or locality need revision or updating, if sufficient
technical data justifying the request is submitted and the unit of government making the
request agrees to provide funds in an amount
determined by the Director, but which may
not exceed 50 percent of the cost of carrying
out the requested revision or update.
(g) Availability of flood maps
To promote compliance with the requirements
of this chapter, the Director shall make flood insurance rate maps and related information
available free of charge to the Federal entities
for lending regulation, Federal agency lenders,
State agencies directly responsible for coordinating the national flood insurance program,
and appropriate representatives of communities
participating in the national flood insurance
program, and at a reasonable cost to all other
persons. Any receipts resulting from this subsection shall be deposited in the National Flood
Insurance Fund, pursuant to section 4017(b)(6) of
this title.
(h) Notification of flood map changes
The Director shall cause notice to be published in the Federal Register (or shall provide
notice by another comparable method) of any
change to flood insurance map panels and any
change to flood insurance map panels issued in
the form of a letter of map amendment or a letter of map revision. Such notice shall be published or otherwise provided not later than 30
days after the map change or revision becomes
effective. Notice by any method other than publication in the Federal Register shall include all
pertinent information, provide for regular and
frequent distribution, and be at least as accessible to map users as notice in the Federal Reg-

Page 5195

TITLE 42—THE PUBLIC HEALTH AND WELFARE

ister. All notices under this subsection shall include information on how to obtain copies of the
changes or revisions.
(i) Compendia of flood map changes
Every 6 months, the Director shall publish
separately in their entirety within a compendium, all changes and revisions to flood insurance map panels and all letters of map amendment and letters of map revision for which notice was published in the Federal Register or
otherwise provided during the preceding 6
months. The Director shall make such compendia available, free of charge, to Federal entities
for lending regulation, Federal agency lenders,
and States and communities participating in the
national flood insurance program pursuant to
section 4017 of this title and at cost to all other
parties. Any receipts resulting from this subsection shall be deposited in the National Flood
Insurance Fund, pursuant to section 4017(b)(6) of
this title.
(j) Provision of information
In the implementation of revisions to and updates of flood insurance rate maps, the Director
shall share information, to the extent appropriate, with the Under Secretary of Commerce
for Oceans and Atmosphere and representatives
from State coastal zone management programs.
(Pub. L. 90–448, title XIII, § 1360, Aug. 1, 1968, 82
Stat. 587; Pub. L. 93–234, title II, § 204, Dec. 31,
1973, 87 Stat. 983; Pub. L. 98–181, title IV,
§ 451(d)(1), (6), (7), Nov. 30, 1983, 97 Stat. 1229; Pub.
L. 98–479, title II, § 203(j)(2), Oct. 17, 1984, 98 Stat.
2231; Pub. L. 99–120, § 4(a)(3), Oct. 8, 1985, 99 Stat.
503; Pub. L. 99–156, § 4(a)(3), Nov. 15, 1985, 99 Stat.
816; Pub. L. 99–219, § 4(a)(3), Dec. 26, 1985, 99 Stat.
1731; Pub. L. 99–267, § 4(a)(3), Mar. 27, 1986, 100
Stat. 74; Pub. L. 99–272, title III, § 3010(a)(3), Apr.
7, 1986, 100 Stat. 106; Pub. L. 99–289, § 1(b), May 2,
1986, 100 Stat. 412; Pub. L. 99–345, § 1, June 24,
1986, 100 Stat. 673; Pub. L. 99–430, Sept. 30, 1986,
100 Stat. 986; Pub. L. 100–122, § 1, Sept. 30, 1987,
101 Stat. 793; Pub. L. 100–154, Nov. 5, 1987, 101
Stat. 890; Pub. L. 100–170, Nov. 17, 1987, 101 Stat.
914; Pub. L. 100–179, Dec. 3, 1987, 101 Stat. 1018;
Pub. L. 100–200, Dec. 21, 1987, 101 Stat. 1327; Pub.
L. 100–242, title V, § 541(c), Feb. 5, 1988, 101 Stat.
1939; Pub. L. 101–137, § 2, Nov. 3, 1989, 103 Stat.
824; Pub. L. 103–325, title V, § 575, Sept. 23, 1994,
108 Stat. 2278.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (g), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
CODIFICATION
In subsec. (b), ‘‘section 6101 of title 41’’ substituted
for ‘‘section 3709 of the Revised Statutes (41 U.S.C. 5)’’
on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124
Stat. 3854, which Act enacted Title 41, Public Contracts.
AMENDMENTS
1994—Subsecs. (e) to (j). Pub. L. 103–325 added subsecs.
(e) to (j).
1989—Subsec. (a)(2). Pub. L. 101–137 added par. (2) and
struck out former par. (2) which read as follows: ‘‘es-

§ 4101

tablish flood-risk zones in all such areas, and make estimates with respect to the rates of probable floodcaused loss for the various flood-risk zones for each of
these areas, by September 30, 1989.’’
1988—Subsec. (a)(2). Pub. L. 100–242 substituted ‘‘September 30, 1989’’ for ‘‘March 15, 1988’’.
1987—Subsec. (a)(2). Pub. L. 100–200 substituted
‘‘March 15, 1988’’ for ‘‘December 16, 1987’’.
Pub. L. 100–179 substituted ‘‘December 16, 1987’’ for
‘‘December 2, 1987’’.
Pub. L. 100–170 substituted ‘‘December 2, 1987’’ for
‘‘November 15, 1987’’.
Pub. L. 100–154 substituted ‘‘November 15, 1987’’ for
‘‘October 31, 1987’’.
Pub. L. 100–122 substituted ‘‘October 31, 1987’’ for
‘‘September 30, 1987’’.
1986—Subsec. (a)(2). Pub. L. 99–430 substituted ‘‘September 30, 1987’’ for ‘‘September 30, 1986’’.
Pub. L. 99–345 substituted ‘‘September 30, 1986’’ for
‘‘June 6, 1986’’.
Pub. L. 99–289 substituted ‘‘June 6, 1986’’ for ‘‘April 30,
1986’’.
Pub. L. 99–272 directed amendment identical to Pub.
L. 99–219 substituting ‘‘March 17, 1986’’ for ‘‘December
15, 1985’’.
Pub. L. 99–267 substituted ‘‘April 30, 1986’’ for ‘‘March
17, 1986’’.
1985—Subsec. (a)(2). Pub. L. 99–219 substituted ‘‘March
17, 1986’’ for ‘‘December 15, 1985’’.
Pub. L. 99–156 substituted ‘‘December 15, 1985’’ for
‘‘November 14, 1985’’.
Pub. L. 99–120 substituted ‘‘November 14, 1985’’ for
‘‘September 30, 1985’’.
1984—Subsec. (b). Pub. L. 98–479 substituted reference
to subsections (a) and (b) of section 3324 of title 31 for
reference to section 3648 of the Revised Statutes, as
amended (31 U.S.C. 529).
1983—Subsec. (a). Pub. L. 98–181, § 451(d)(1), in provisions preceding par. (1) substituted ‘‘Director’’ for
‘‘Secretary’’.
Subsec. (a)(2). Pub. L. 98–181, § 451(d)(6), substituted
‘‘by September 30, 1985’’ for ‘‘within fifteen years following such date’’.
Subsecs. (b), (c). Pub. L. 98–181, § 451(d)(1), substituted
‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
Subsec. (d). Pub. L. 98–181, § 451(d)(7), added subsec.
(d).
1973—Pub. L. 93–234 designated existing provisions as
subsec. (a) and added subsecs. (b) and (c).
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
GEOSPATIAL DIGITAL FLOOD HAZARD DATA
Pub. L. 108–264, title I, § 107, June 30, 2004, 118 Stat.
724, provided that: ‘‘For the purposes of flood insurance
and floodplain management activities conducted pursuant to the National Flood Insurance Program under the
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.), geospatial digital flood hazard data distributed
by the Federal Emergency Management Agency, or its
designee, or the printed products derived from that
data, are interchangeable and legally equivalent for the

§ 4102

TITLE 42—THE PUBLIC HEALTH AND WELFARE

determination of the location of 1 in 100 year and 1 in
500 year flood planes [sic], provided that all other geospatial data shown on the printed product meets or exceeds any accuracy standard promulgated by the Federal Emergency Management Agency.’’
REITERATION OF FEMA RESPONSIBILITY TO MAP
MUDSLIDES
Pub. L. 108–264, title I, § 109, June 30, 2004, 118 Stat.
725, as amended by Pub. L. 109–295, title VI, § 612(c), Oct.
4, 2006, 120 Stat. 1410, provided that: ‘‘As directed in section 1360(b) of the National Flood Insurance Act of 1968
(42 U.S.C. 4101(b)), the Administrator of the Federal
Emergency Management Agency is again directed to
accelerate the identification of risk zones within floodprone and mudslide-prone areas, as provided by subsection (a)(2) of such section 1360, in order to make
known the degree of hazard within each such zone at
the earliest possible date.’’
TECHNICAL MAPPING ADVISORY COUNCIL
Pub. L. 103–325, title V, § 576, Sept. 23, 1994, 108 Stat.
2280, established the Technical Mapping Advisory Council to help improve flood insurance rate maps and provided for its termination 5 years after the appointment
of all its members.

§ 4102. Criteria for land management and use
(a) Studies and investigations
The Director is authorized to carry out studies
and investigations, utilizing to the maximum
extent practicable the existing facilities and
services of other Federal departments or agencies, and State and local governmental agencies,
and any other organizations, with respect to the
adequacy of State and local measures in floodprone areas as to land management and use,
flood control, flood zoning, and flood damage
prevention, and may enter into any contracts,
agreements, or other appropriate arrangements
to carry out such authority.
(b) Extent of studies and investigations
Such studies and investigations shall include,
but not be limited to, laws, regulations, or ordinances relating to encroachments and obstructions on stream channels and floodways, the orderly development and use of flood plains of rivers or streams, floodway encroachment lines,
and flood plain zoning, building codes, building
permits, and subdivision or other building restrictions.
(c) Development of comprehensive criteria designed to encourage adoption of adequate
State and local measures
On the basis of such studies and investigations, and such other information as he deems
necessary, the Director shall from time to time
develop comprehensive criteria designed to encourage, where necessary, the adoption of adequate State and local measures which, to the
maximum extent feasible, will—
(1) constrict the development of land which
is exposed to flood damage where appropriate,
(2) guide the development of proposed construction away from locations which are
threatened by flood hazards,
(3) assist in reducing damage caused by
floods, and
(4) otherwise improve the long-range land
management and use of flood-prone areas,
and he shall work closely with and provide any
necessary technical assistance to State, inter-

Page 5196

state, and local governmental agencies, to encourage the application of such criteria and the
adoption and enforcement of such measures.
(Pub. L. 90–448, title XIII, § 1361, Aug. 1, 1968, 82
Stat. 587; Pub. L. 91–152, title IV, § 410(c), Dec. 24,
1969, 83 Stat. 397; Pub. L. 98–181, title IV,
§ 451(d)(1), Nov. 30, 1983, 97 Stat. 1229.)
AMENDMENTS
1983—Subsecs. (a), (c). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
1969—Subsec. (c). Pub. L. 91–152 substituted provisions
requiring development of criteria designed to encourage adoption of adequate State and local measures, for
provisions requiring development of criteria designed
to encourage adoption of permanent State and local
measures.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
TASK FORCE ON NATURAL AND BENEFICIAL FUNCTIONS
OF THE FLOODPLAIN
Pub. L. 103–325, title V, § 562, Sept. 23, 1994, 108 Stat.
2276, established the Task Force on Natural and Beneficial Functions of the Floodplain to conduct a study
on the functions of the floodplain that reduce flood-related losses and provided for its termination 24 months
after its last member was designated.

§ 4102a. Pilot program for mitigation of severe
repetitive loss properties
(a) Authority
To the extent amounts are made available for
use under this section, the Director may, subject
to the limitations of this section, provide financial assistance to States and communities that
decide to participate in the pilot program established under this section for taking actions with
respect to severe repetitive loss properties (as
such term is defined in subsection (b) of this section) to mitigate flood damage to such properties and losses to the National Flood Insurance Fund from such properties.
(b) Severe repetitive loss property
For purposes of this section, the term ‘‘severe
repetitive loss property’’ has the following
meaning:
(1) Single-family properties
In the case of a property consisting of 1 to 4
residences, such term means a property that—
(A) is covered under a contract for flood
insurance made available under this chapter;
and
(B) has incurred flood-related damage—
(i) for which 4 or more separate claims
payments have been made under flood in-

Page 5197

TITLE 42—THE PUBLIC HEALTH AND WELFARE

surance coverage under this chapter, with
the amount of each such claim exceeding
$5,000, and with the cumulative amount of
such claims payments exceeding $20,000; or
(ii) for which at least 2 separate claims
payments have been made under such coverage, with the cumulative amount of such
claims exceeding the value of the property.
(2) Multifamily properties
In the case of a property consisting of 5 or
more residences, such term shall have such
meaning as the Director shall by regulation
provide.
(c) Eligible activities
Amounts provided under this section to a
State or community may be used only for the
following activities:
(1) Mitigation activities
To carry out mitigation activities that reduce flood damages to severe repetitive loss
properties, including elevation, relocation,
demolition, and floodproofing of structures,
and minor physical localized flood control
projects, and the demolition and rebuilding of
properties to at least Base Flood Elevation or
greater, if required by any local ordinance.
(2) Purchase
To purchase severe repetitive loss properties, subject to subsection (g) of this section.
(d) Matching requirement
(1) In general
Except as provided in paragraph (2), in any
fiscal year the Director may not provide assistance under this section to a State or community in an amount exceeding 3 times the
amount that the State or community certifies, as the Director shall require, that the
State or community will contribute from nonFederal funds for carrying out the eligible activities to be funded with such assistance
amounts.
(2) Reduced community match
With respect to any 1-year period in which
assistance is made available under this section, the Director may adjust the contribution
required under paragraph (1) by any State, and
for the communities located in that State, to
not less than 10 percent of the cost of the activities for each severe repetitive loss property
for which grant amounts are provided if, for
such year—
(A) the State has an approved State mitigation plan meeting the requirements for
hazard mitigation planning under section
5165 of this title that specifies how the State
intends to reduce the number of severe repetitive loss properties; and
(B) the Director determines, after consultation with the State, that the State has
taken actions to reduce the number of such
properties.
(3) Non-Federal funds
For purposes of this subsection, the term
‘‘non-Federal funds’’ includes State or local
agency funds, in-kind contributions, any salary paid to staff to carry out the eligible ac-

§ 4102a

tivities of the recipient, the value of the time
and services contributed by volunteers to
carry out such activities (at a rate determined
by the Director), and the value of any donated
material or building and the value of any lease
on a building.
(e) Notice of mitigation program
(1) In general
Upon selecting a State or community to receive assistance under subsection (a) of this
section to carry out eligible activities, the Director shall notify the owners of a severe repetitive loss property, in plain language, within that State or community—
(A) that their property meets the definition of a severe repetitive loss property
under this section;
(B) that they may receive an offer of assistance under this section;
(C) of the types of assistance potentially
available under this section;
(D) of the implications of declining such
offer of assistance under this section; and
(E) that there is a right to appeal under
this section.
(2) Identification of severe repetitive loss properties
The Director shall take such steps as are
necessary to identify severe repetitive loss
properties, and submit that information to the
relevant States and communities.
(f) Standards for mitigation offers
The program under this section for providing
assistance for eligible activities for severe repetitive loss properties shall be subject to the following limitations:
(1) Priority
In determining the properties for which to
provide assistance for eligible activities under
subsection (c) of this section, the Director
shall provide assistance for properties in the
order that will result in the greatest amount
of savings to the National Flood Insurance
Fund in the shortest period of time, in a manner consistent with the allocation formula
under paragraph (5).
(2) Offers
The Director shall provide assistance in a
manner that permits States and communities
to make offers to owners of severe repetitive
loss properties to take eligible activities under
subsection (c) of this section as soon as practicable.
(3) Consultation
In determining for which eligible activities
under subsection (c) of this section to provide
assistance with respect to a severe repetitive
loss property, the relevant States and communities shall consult, to the extent practicable,
with the owner of the property.
(4) Deference to local mitigation decisions
The Director shall not, by rule, regulation,
or order, establish a priority for funding eligible activities under this section that gives
preference to one type or category of eligible
activity over any other type or category of eligible activity.

§ 4102a

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(5) Allocation
(A) In general
Subject to subparagraphs (B) and (C), of
the total amount made available for assistance under this section in any fiscal year,
the Director shall allocate assistance to a
State, and the communities located within
that State, based upon the percentage of the
total number of severe repetitive loss properties located within that State.
(B) Redistribution
Any funds allocated to a State, and the
communities within the State, under subparagraph (A) that have not been obligated
by the end of each fiscal year shall be redistributed by the Director to other States and
communities to carry out eligible activities
in accordance with this section.
(C) Exception
Of the total amount made available for assistance under this section in any fiscal
year, 10 percent shall be made available to
communities that—
(i) contain one or more severe repetitive
loss properties; and
(ii) are located in States that receive little or no assistance, as determined by the
Director, under the allocation formula
under subparagraph (A).
(6) Notice
Upon making an offer to provide assistance
with respect to a property for any eligible activity under subsection (c) of this section, the
State or community shall notify each holder
of a recorded interest on the property of such
offer and activity.
(g) Purchase offers
A State or community may take action under
subsection (c)(2) of this section to purchase a severe repetitive loss property only if the following requirements are met:
(1) Use of property
The State or community enters into an
agreement with the Director that provides assurances that the property purchased will be
used in a manner that is consistent with the
requirements of section 5170c(b)(2)(B) of this
title for properties acquired, accepted, or from
which a structure will be removed pursuant to
a project provided property acquisition and relocation assistance under such section 5170c(b)
of this title.
(2) Offers
The Director shall provide assistance in a
manner that permits States and communities
to make offers to owners of severe repetitive
loss properties and of associated land to engage in eligible activities as soon as possible.
(3) Purchase price
The amount of purchase offer is not less
than the greatest of—
(A) the amount of the original purchase
price of the property, when purchased by the
holder of the current policy of flood insurance under this chapter;
(B) the total amount owed, at the time the
offer to purchase is made, under any loan se-

Page 5198

cured by a recorded interest on the property;
and
(C) an amount equal to the fair market
value of the property immediately before the
most recent flood event affecting the property, or an amount equal to the current fair
market value of the property.
(4) Comparable housing payment
If a purchase offer made under paragraph (2)
is less than the cost of the homeowner-occupant to purchase a comparable replacement
dwelling outside the flood hazard area in the
same community, the Director shall make
available an additional relocation payment to
the homeowner-occupant to apply to the difference.
(h) Increased premiums in cases of refusal to
mitigate
(1) In general
In any case in which the owner of a severe
repetitive loss property refuses an offer to
take action under paragraph (1) or (2) of subsection (c) of this section with respect to such
property, the Director shall—
(A) notify each holder of a recorded interest on the property of such refusal; and
(B)
notwithstanding
subsections
(a)
through (c) of section 4015 of this title,
thereafter the chargeable premium rate with
respect to the property shall be the amount
equal to 150 percent of the chargeable rate
for the property at the time that the offer
was made, as adjusted by any other premium
adjustments otherwise applicable to the
property and any subsequent increases pursuant to paragraph (2) and subject to the
limitation under paragraph (3).
(2) Increased premiums upon subsequent flood
damage
Notwithstanding subsections (a) through (c)
of section 4015 of this title, if the owner of a
severe repetitive loss property does not accept
an offer to take action under paragraph (1) or
(2) of subsection (c) of this section with respect to such property and a claim payment
exceeding $1,500 is made under flood insurance
coverage under this chapter for damage to the
property caused by a flood event occurring
after such offer is made, thereafter the chargeable premium rate with respect to the property shall be the amount equal to 150 percent
of the chargeable rate for the property at the
time of such flood event, as adjusted by any
other premium adjustments otherwise applicable to the property and any subsequent increases pursuant to this paragraph and subject
to the limitation under paragraph (3).
(3) Limitation on increased premiums
In no case may the chargeable premium rate
for a severe repetitive loss property be increased pursuant to this subsection to an
amount exceeding the applicable estimated
risk premium rate for the area (or subdivision
thereof) under section 4014(a)(1) of this title.
(4) Treatment of deductibles
Any increase in chargeable premium rates
required under this subsection for a severe re-

Page 5199

TITLE 42—THE PUBLIC HEALTH AND WELFARE

petitive loss property may be carried out, to
the extent appropriate, as determined by the
Director, by adjusting any deductible charged
in connection with flood insurance coverage
under this chapter for the property.
(5) Notice of continued offer
Upon each renewal or modification of any
flood insurance coverage under this chapter
for a severe repetitive loss property, the Director shall notify the owner that the offer made
pursuant to subsection (c) of this section is
still open.
(6) Appeals
(A) In general
Any owner of a severe repetitive loss property may appeal a determination of the Director to take action under paragraph (1)(B)
or (2) with respect to such property, based
only upon the following grounds:
(i) As a result of such action, the owner
of the property will not be able to purchase a replacement primary residence of
comparable value and that is functionally
equivalent.
(ii) Based on independent information,
such as contractor estimates or appraisals,
the property owner believes that the price
offered for purchasing the property is not
an accurate estimation of the value of the
property, or the amount of Federal funds
offered for mitigation activities, when
combined with funds from non-Federal
sources, will not cover the actual cost of
mitigation.
(iii) As a result of such action, the preservation or maintenance of any prehistoric
or historic district, site, building, structure, or object included in, or eligible for
inclusion in, the National Register of Historic Places will be interfered with, impaired, or disrupted.
(iv) The flooding that resulted in the
flood insurance claims described in subsection (b)(2) of this section for the property resulted from significant actions by a
third party in violation of Federal, State,
or local law, ordinance, or regulation.
(v) In purchasing the property, the owner
relied upon flood insurance rate maps of
the Federal Emergency Management
Agency that were current at the time and
did not indicate that the property was located in an area having special flood hazards.
(vi) The owner of the property, based on
independent information, such as contractor estimates or other appraisals, demonstrates that an alternative eligible activity under subsection (c) of this section
is at least as cost effective as the initial
offer of assistance.
(B) Procedure
An appeal under this paragraph of a determination of the Director shall be made by
filing, with the Director, a request for an appeal within 90 days after receiving notice of
such determination. Upon receiving the request, the Director shall select, from a list
of independent third parties compiled by the

§ 4102a

Director for such purpose, a party to hear
such appeal. Within 90 days after filing of
the request for the appeal, such third party
shall review the determination of the Director and shall set aside such determination if
the third party determines that the grounds
under subparagraph (A) exist. During the
pendency of an appeal under this paragraph,
the Director shall stay the applicability of
the rates established pursuant to paragraph
(1)(B) or (2), as applicable.
(C) Effect of final determination
In an appeal under this paragraph—
(i) if a final determination is made in
favor of the property owner under subparagraph (A) exist,1 the third party hearing
such appeal shall require the Director to
reduce the chargeable risk premium rate
for flood insurance coverage for the property involved in the appeal from the
amount required under paragraph (1)(B) or
(2) to the amount paid prior to the offer to
take action under paragraph (1) or (2) of
subsection (c) of this section; and
(ii) if a final determination is made that
the grounds under subparagraph (A) do not
exist, the Director shall promptly increase
the chargeable risk premium rate for such
property to the amount established pursuant to paragraph (1)(B) or (2), as applicable, and shall collect from the property
owner the amount necessary to cover the
stay of the applicability of such increased
rates during the pendency of the appeal.
(D) Costs
If the third party hearing an appeal under
this paragraph is compensated for such service, the costs of such compensation shall be
borne—
(i) by the owner of the property requesting the appeal, if the final determination
in the appeal is that the grounds under
subparagraph (A) do not exist; and
(ii) by the National Flood Insurance
Fund, if such final determination is that
the grounds under subparagraph (A) do
exist.
(E) Report
Not later than 6 months after June 30, 2004,
the Director shall submit a report describing
the rules, procedures, and administration for
appeals under this paragraph to—
(i) the Committee on Banking, Housing,
and Urban Affairs of the Senate; and
(ii) the Committee on Financial Services
of the House of Representatives.
(i) Discretionary actions in cases of fraudulent
claims
If the Director determines that a fraudulent
claim was made under flood insurance coverage
under this chapter for a severe repetitive loss
property, the Director may—
(1) cancel the policy and deny the provision
to such policyholder of any new flood insurance coverage under this chapter for the property; or
1 So

in original. Word ‘‘exist’’ probably should not appear.

§ 4103

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(2) refuse to renew the policy with such policyholder upon expiration and deny the provision of any new flood insurance coverage
under this chapter to such policyholder for the
property.
(j) Rules
(1) In general
The Director shall, by rule—
(A) subject to subsection (f)(4) of this section, develop procedures for the distribution
of funds to States and communities to carry
out eligible activities under this section; and
(B) ensure that the procedures developed
under paragraph (1)—
(i) require 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;
(ii) provide that the Director may assist
States and communities in identifying severe repetitive loss properties within
States or communities;
(iii) allow each State and community to
select properties to be the subject of eligible activities, and the appropriate eligible
activity to be performed with respect to
each severe repetitive loss property; and
(iv) require each State or community to
submit a list of severe repetitive loss properties to the Director that the State or
community would like to be the subject of
eligible activities under this section.
(2) Consultation
Not later than 90 days after June 30, 2004, the
Director shall consult with State and local officials in carrying out paragraph (1)(A), and
provide an opportunity for an oral presentation, on the record, of data and arguments
from such officials.
(k) Funding
(1) In general
Pursuant to section 4017(a)(8) of this title,
the Director may use amounts from the National Flood Insurance Fund to provide assistance under this section in each of fiscal years
2005, 2006, 2007, 2008, and 2009, except that the
amount so used in each such fiscal year may
not exceed $40,000,000 and shall remain available until expended. Notwithstanding any
other provision of this chapter, amounts made
available pursuant to this subsection shall not
be subject to offsetting collections through
premium rates for flood insurance coverage
under this chapter.
(2) Administrative expenses
Of the amounts made available under this
subsection, the Director may use up to 5 percent for expenses associated with the administration of this section.
(l) Termination
The Director may not provide assistance under
this section to any State or community after
September 30, 2009.
(Pub. L. 90–448, title XIII, § 1361A, as added Pub.
L. 108–264, title I, § 102(a), June 30, 2004, 118 Stat.
714.)

Page 5200

REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
CODIFICATION
June 30, 2004, referred to in subsec. (j)(2), was in the
original ‘‘the date of enactment of this Act’’, which was
translated as meaning the date of enactment of Pub. L.
108–264, which enacted this section, to reflect the probable intent of Congress.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.

§ 4103. Repealed. Pub. L. 103–325, title V, § 551(a),
Sept. 23, 1994, 108 Stat. 2269
Section, Pub. L. 90–448, title XIII, § 1362, Aug. 1, 1968,
82 Stat. 588; Pub. L. 95–128, title VII, § 704(b), Oct. 12,
1977, 91 Stat. 1145; Pub. L. 98–181, title IV, § 451(d)(1),
Nov. 30, 1983, 97 Stat. 1229, related to purchase, by Director, of insured properties damaged substantially beyond repair by flood, for subsequent transfer to State
or local agency upon negotiated conditions.
SAVINGS PROVISION
Pub. L. 103–325, title V, § 551(c), Sept. 23, 1994, 108 Stat.
2269, required the Director of the Federal Emergency
Management Agency to comply with any purchase or
loan commitment entered into before the expiration of
the 1-year period beginning on Sept. 23, 1994, pursuant
to authority under this section or section 551(b) of Pub.
L. 103–325.
TRANSITION PHASE
Pub. L. 103–325, title V, § 551(b), Sept. 23, 1994, 108
Stat. 2269, permitted the Director of the Federal Emergency Management Agency to enter into loan and purchase commitments as provided under this section (as
in effect immediately before the enactment of Pub. L.
103–325) during the 1-year period beginning on Sept. 23,
1994.

§ 4104. Flood elevation determinations
(a) Publication or notification of proposed flood
elevation determinations
In establishing projected flood elevations for
land use purposes with respect to any community pursuant to section 4102 of this title, the
Director shall first propose such determinations
by publication for comment in the Federal Register, by direct notification to the chief executive officer of the community, and by publication in a prominent local newspaper.
(b) Publication of flood elevation determinations;
appeal of owner or lessee to local government; scientific or technical knowledge or information as basis for appeal; modification of
proposed determinations
The Director shall publish notification of flood
elevation determinations in a prominent local
newspaper at least twice during the ten-day period following notification to the local govern-

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TITLE 42—THE PUBLIC HEALTH AND WELFARE

ment. During the ninety-day period following
the second publication, any owner or lessee of
real property within the community who believes his property rights to be adversely affected by the Director’s proposed determination
may appeal such determination to the local government. The sole basis for such appeal shall be
the possession of knowledge or information indicating that the elevations being proposed by the
Director with respect to an identified area having special flood hazards are scientifically or
technically incorrect, and the sole relief which
shall be granted under the authority of this section in the event that such appeal is sustained
in accordance with subsection (e) or (f) of this
section is a modification of the Director’s proposed determination accordingly.
(c) Appeals by private persons; submission of
negativing or contradicting data to community; opinion of community respecting justification for appeal by community; transmission of individual appeals to Director; filing of community action with Director
Appeals by private persons shall be made to
the chief executive officer of the community, or
to such agency as he shall publicly designate,
and shall set forth the data that tend to negate
or contradict the Director’s finding in such form
as the chief executive officer may specify. The
community shall review and consolidate all such
appeals and issue a written opinion stating
whether the evidence presented is sufficient to
justify an appeal on behalf of such persons by
the community in its own name. Whether or not
the community decides to appeal the Director’s
determination, copies of individual appeals shall
be sent to the Director as they are received by
the community, and the community’s appeal or
a copy of its decision not to appeal shall be filed
with the Director not later than ninety days
after the date of the second newspaper publication of the Director’s notification.
(d) Administrative review of appeals by private
persons; modification of proposed determinations; decision of Director: form and distribution
In the event the Director does not receive an
appeal from the community within the ninety
days provided, he shall consolidate and review
on their own merits, in accordance with the procedures set forth in subsection (e) of this section, the appeals filed within the community by
private persons and shall make such modifications of his proposed determinations as may be
appropriate, taking into account the written
opinion, if any, issued by the community in not
supporting such appeals. The Director’s decision
shall be in written form, and copies thereof shall
be sent both to the chief executive officer of the
community and to each individual appellant.

§ 4104

(e) Administrative review of appeals by community; agencies for resolution of conflicting
data; availability of flood insurance pending
such resolution; time for determination of
Director; community adoption of local land
use and control measures within reasonable
time of final determination; public inspection
and admissibility in evidence of reports and
other administrative information
Upon appeal by any community, as provided
by this section, the Director shall review and
take fully into account any technical or scientific data submitted by the community that
tend to negate or contradict the information
upon which his proposed determination is based.
The Director shall resolve such appeal by consultation with officials of the local government
involved, by administrative hearing, or by submission of the conflicting data to an independent scientific body or appropriate Federal agency for advice. Until the conflict in data is resolved, and the Director makes a final determination on the basis of his findings in the Federal Register, and so notifies the governing body
of the community, flood insurance previously
available within the community shall continue
to be available, and no person shall be denied
the right to purchase such insurance at chargeable rates. The Director shall make his determination within a reasonable time. The community shall be given a reasonable time after the
Director’s final determination in which to adopt
local land use and control measures consistent
with the Director’s determination. The reports
and other information used by the Director in
making his final determination shall be made
available for public inspection and shall be admissible in a court of law in the event the community seeks judicial review as provided by this
section.
(f) Reimbursement of certain expenses; appropriation authorization
When, incident to any appeal under subsection
(b) or (c) of this section, the owner or lessee of
real property or the community, as the case
may be, incurs expense in connection with the
services of surveyors, engineers, or similar services, but not including legal services, in the effecting of an appeal which is successful in whole
or part, the Director shall reimburse such individual or community to an extent measured by
the ratio of the successful portion of the appeal
as compared to the entire appeal and applying
such ratio to the reasonable value of all such
services, but no reimbursement shall be made by
the Director in respect to any fee or expense
payment, the payment of which was agreed to be
contingent upon the result of the appeal. There
is authorized to be appropriated for purposes of
implementing this subsection, not to exceed
$250,000.
(g) Judicial review of final administrative determinations; venue; time for appeal; scope of
review; good cause for stay of final determinations
Any appellant aggrieved by any final determination of the Director upon administrative
appeal, as provided by this section, may appeal
such determination to the United States district

§ 4104a

TITLE 42—THE PUBLIC HEALTH AND WELFARE

court for the district within which the community is located not more than sixty days after
receipt of notice of such determination. The
scope of review by the court shall be as provided
by chapter 7 of title 5. During the pendency of
any such litigation, all final determinations of
the Director shall be effective for the purposes
of this chapter unless stayed by the court for
good cause shown.
(Pub. L. 90–448, title XIII, § 1363, as added Pub. L.
93–234, title I, § 110, Dec. 31, 1973, 87 Stat. 980;
amended Pub. L. 95–128, title VII, § 704(c), Oct. 12,
1977, 91 Stat. 1146; Pub. L. 98–181, title IV,
§ 451(d)(1), Nov. 30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This chapter, referred to in subsec. (g), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ and ‘‘Director’s’’ for ‘‘Secretary’s’’ wherever
appearing.
1977—Subsecs. (f), (g). Pub. L. 95–128 added subsec. (f)
and redesignated former subsec. (f) as (g).
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4104a. Notice requirements
(a) Notification of special flood hazards
(1) Regulated lending institutions
Each Federal entity for lending regulation
(after consultation and coordination with the
Financial Institutions Examination Council)
shall by regulation require regulated lending
institutions, as a condition of making, increasing, extending, or renewing any loan secured by improved real estate or a mobile
home that the regulated lending institution
determines is located or is to be located in an
area that has been identified by the Director
under this chapter or the Flood Disaster Protection Act of 1973 as an area having special
flood hazards, to notify the purchaser or lessee
(or obtain satisfactory assurances that the
seller or lessor has notified the purchaser or
lessee) and the servicer of the loan of such special flood hazards, in writing, a reasonable period in advance of the signing of the purchase
agreement, lease, or other documents involved
in the transaction. The regulations shall also

Page 5202

require that the regulated lending institution
retain a record of the receipt of the notices by
the purchaser or lessee and the servicer.
(2) Federal agency lenders
Each Federal agency lender shall by regulation require notification in the manner provided under paragraph (1) with respect to any
loan that is made by the Federal agency lender and secured by improved real estate or a
mobile home located or to be located in an
area that has been identified by the Director
under this chapter or the Flood Disaster Protection Act of 1973 as an area having special
flood hazards. Any regulations issued under
this paragraph shall be consistent with and
substantially identical to the regulations issued under paragraph (1).
(3) Contents of notice
Written notification required under this subsection shall include—
(A) a warning, in a form to be established
by the Director, stating that the building on
the improved real estate securing the loan is
located, or the mobile home securing the
loan is or is to be located, in an area having
special flood hazards;
(B) a description of the flood insurance
purchase requirements under section 102(b)
of the Flood Disaster Protection Act of 1973
[42 U.S.C. 4012a(b)];
(C) a statement that flood insurance coverage may be purchased under the national
flood insurance program and is also available from private insurers; and
(D) any other information that the Director considers necessary to carry out the purposes of the national flood insurance program.
(b) Notification of change of servicer
(1) Lending institutions
Each Federal entity for lending regulation
(after consultation and coordination with the
Financial Institutions Examination Council)
shall by regulation require regulated lending
institutions, in connection with the making,
increasing, extending, renewing, selling, or
transferring any loan described in subsection
(a)(1) of this section, to notify the Director (or
the designee of the Director) in writing during
the term of the loan of the servicer of the
loan. Such institutions shall also notify the
Director (or such designee) of any change in
the servicer of the loan, not later than 60 days
after the effective date of such change. The
regulations under this subsection shall provide
that upon any change in the servicing of a
loan, the duty to provide notification under
this subsection shall transfer to the transferee
servicer of the loan.
(2) Federal agency lenders
Each Federal agency lender shall by regulation provide for notification in the manner
provided under paragraph (1) with respect to
any loan described in subsection (a)(1) of this
section that is made by the Federal agency
lender. Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under
paragraph (1) of this subsection.

Page 5203

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(c) Notification of expiration of insurance
The Director (or the designee of the Director)
shall, not less than 45 days before the expiration
of any contract for flood insurance under this
chapter, issue notice of such expiration by first
class mail to the owner of the property covered
by the contract, the servicer of any loan secured
by the property covered by the contract, and (if
known to the Director) the owner of the loan.
(Pub. L. 90–448, title XIII, § 1364, as added Pub. L.
93–383, title VIII, § 816(a), Aug. 22, 1974, 88 Stat.
739; amended Pub. L. 98–181, title IV, § 451(d)(1),
Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103–325, title
V, § 527, Sept. 23, 1994, 108 Stat. 2263.)
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a)(1), (2) and (c),
was in the original a reference to ‘‘this title’’ meaning
title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572,
known as the National Flood Insurance Act of 1968,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short
Title note set out under section 4001 of this title and
Tables.
The Flood Disaster Protection Act of 1973, referred to
in subsec. (a)(1), (2), is Pub. L. 93–234, Dec. 31, 1973, 87
Stat. 975, as amended, which enacted sections 4002, 4003,
4012a, 4104, 4104a, 4105 to 4107, and 4128 of this title,
amended sections 4001, 4013 to 4016, 4026, 4054, 4056, 4101,
and 4121 of this title and sections 24 and 1709–1 of Title
12, Banks and Banking, repealed section 4021 of this
title, and enacted provision set out as a note under section 4001 of this title. For complete classification of
this Act to the Code, see Short Title of 1973 Amendment note set out under section 4001 of this title and
Tables.
AMENDMENTS
1994—Pub. L. 103–325 amended section generally. Prior
to amendment, section read as follows: ‘‘Each Federal
instrumentality responsible for the supervision, approval, regulation, or insuring of banks, savings and
loan associations, or similar institutions shall by regulation require such institutions, as a condition of making, increasing, extending, or renewing (after the expiration of thirty days following August 22, 1974) any loan
secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Director under this chapter or Public Law
93–234 as an area having special flood hazards, to notify
the purchaser or lessee (or obtain satisfactory assurances that the seller or lessor has notified the purchaser or lessee) of such special flood hazards, in writing, a reasonable period in advance of the signing of the
purchase agreement, lease, or other documents involved in the transaction.’’
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4104b

§ 4104b. Standard hazard determination forms
(a) Development
The Director, in consultation with representatives of the mortgage and lending industry, the
Federal entities for lending regulation, the Federal agency lenders, and any other appropriate
individuals, shall develop a standard form for
determining, in the case of a loan secured by improved real estate or a mobile home, whether
the building or mobile home is located in an
area identified by the Director as an area having
special flood hazards and in which flood insurance under this chapter is available. The form
shall be established by regulations issued not
later than 270 days after September 23, 1994.
(b) Design and contents
(1) Purpose
The form under subsection (a) of this section
shall be designed to facilitate compliance with
the flood insurance purchase requirements of
this chapter.
(2) Contents
The form shall require identification of the
type of flood-risk zone in which the building
or mobile home is located, the complete map
and panel numbers for the improved real estate or property on which the mobile home is
located, the community identification number
and community participation status (for purposes of the national flood insurance program)
of the community in which the improved real
estate or such property is located, and the
date of the map used for the determination,
with respect to flood hazard information on
file with the Director. If the building or mobile home is not located in an area having special flood hazards the form shall require a
statement to such effect and shall indicate the
complete map and panel numbers of the improved real estate or property on which the
mobile home is located. If the complete map
and panel numbers are not available because
the building or mobile home is not located in
a community that is participating in the national flood insurance program or because no
map exists for the relevant area, the form
shall require a statement to such effect. The
form shall provide for inclusion or attachment
of any relevant documents indicating revisions or amendments to maps.
(c) Required use
The Federal entities for lending regulation
shall by regulation require the use of the form
under this section by regulated lending institutions. Each Federal agency lender shall by regulation provide for the use of the form with respect to any loan made by such Federal agency
lender. The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association shall require the use of the
form with respect to any loan purchased by such
entities. A lender or other person may comply
with the requirement under this subsection by
using the form in a printed, computerized, or
electronic manner.
(d) Guarantees regarding information
In providing information regarding special
flood hazards on the form developed under this

§ 4104c

TITLE 42—THE PUBLIC HEALTH AND WELFARE

section, any lender (or other person required to
use the form) who makes, increases, extends, or
renews a loan secured by improved real estate or
a mobile home may provide for the acquisition
or determination of such information to be
made by a person other than such lender (or
other person), only to the extent such person
guarantees the accuracy of the information.
(e) Reliance on previous determination
Any person increasing, extending, renewing, or
purchasing a loan secured by improved real estate or a mobile home may rely on a previous
determination of whether the building or mobile
home is located in an area having special flood
hazards (and shall not be liable for any error in
such previous determination), if the previous determination was made not more than 7 years before the date of the transaction and the basis for
the previous determination has been set forth on
a form under this section, unless—
(1) map revisions or updates pursuant to section 4101(f) of this title after such previous determination have resulted in the building or
mobile home being located in an area having
special flood hazards; or
(2) the person contacts the Director to determine when the most recent map revisions or
updates affecting such property occurred and
such revisions and updates have occurred after
such previous determination.
(f) Effective date
The regulations under this section requiring
use of the form established pursuant to this section shall be issued together with the regulations required under subsection (a) of this section and shall take effect upon the expiration of
the 180-day period beginning on such issuance.
(Pub. L. 90–448, title XIII, § 1365, as added Pub. L.
103–325, title V, § 528, Sept. 23, 1994, 108 Stat.
2264.)
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a) and (b)(1), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4104c. Mitigation assistance
(a) Authority
The Director shall carry out a program to provide financial assistance to States and commu-

Page 5204

nities, using amounts made available from the
National Flood Mitigation Fund under section
4104d of this title, for planning and carrying out
activities designed to reduce the risk of flood
damage to structures covered under contracts
for flood insurance under this chapter. Such financial assistance shall be made available to
States and communities in the form of grants
under subsection (b) of this section for planning
assistance and in the form of grants under this
section for carrying out mitigation activities.
(b) Planning assistance grants
(1) In general
The Director may make grants under this
subsection to States and communities to assist in developing mitigation plans under subsection (c) of this section.
(2) Funding
Of any amounts made available from the National Flood Mitigation Fund for use under
this section in any fiscal year, the Director
may use not more than 7.5 percent of the
available funds under this section to provide
planning assistance grants under this subsection.
(3) Limitations
(A) Timing
A grant under this subsection may be
awarded to a State or community not more
than once every 5 years and each grant may
cover a period of 1 to 3 years.
(B) Single grantee amount
A grant for planning assistance may not
exceed—
(i) $150,000, to any State; or
(ii) $50,000, to any community.
(C) Cumulative State grant amount
The sum of the amounts of grants made
under this subsection in any fiscal year to
any one State and all communities located
in such State may not exceed $300,000.
(c) Eligibility for mitigation assistance
To be eligible to receive financial assistance
under this section for mitigation activities, a
State or community shall develop, and have approved by the Director, a flood risk mitigation
plan (in this section referred to as a ‘‘mitigation
plan’’), that describes the mitigation activities
to be carried out with assistance provided under
this section, is consistent with the criteria established by the Director under section 4102 of
this title, and provides protection against flood
losses to structures for which contracts for flood
insurance are available under this chapter. The
mitigation plan shall be consistent with a comprehensive strategy for mitigation activities for
the area affected by the mitigation plan, that
has been adopted by the State or community
following a public hearing.
(d) Notification of approval and grant award
(1) In general
The Director shall notify a State or community submitting a mitigation plan of the approval or disapproval of the plan not later
than 120 days after submission of the plan.

Page 5205

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(2) Notification of disapproval
If the Director does not approve a mitigation plan submitted under this subsection, the
Director shall notify, in writing, the State or
community submitting the plan of the reasons
for such disapproval.
(e) Eligible mitigation activities
(1) Use of amounts
Amounts provided under this section (other
than under subsection (b) of this section) may
be used only for mitigation activities specified
in a mitigation plan approved by the Director
under subsection (d) of this section. The Director shall provide assistance under this section
to the extent amounts are available in the National Flood Mitigation Fund pursuant to appropriation Acts, subject only to the absence
of approvable mitigation plans.
(2) Determination of eligible plans
The Director may approve only mitigation
plans that specify mitigation activities that
the Director determines are technically feasible and cost-effective and only such plans
that propose activities that are cost-beneficial
to the National Flood Mitigation Fund.
(3) Standard for approval
The Director shall approve mitigation plans
meeting the requirements for approval under
paragraph (1) that will be most cost-beneficial
to the National Flood Mitigation Fund. The
Director may approve only mitigation plans
that give priority for funding to such properties, or to such subsets of properties, as are
in the best interest of the National Flood Insurance Fund.
(4) Priority for mitigation assistance
In providing grants under this subsection for
mitigation activities, the Director shall give
first priority for funding to such properties, or
to such subsets of such properties as the Director may establish, that the Director determines are in the best interests of the National
Flood Insurance Fund and for which matching
amounts under subsection (f) of this section
are available.
(5) Eligible activities
The Director shall determine whether mitigation activities described in a mitigation
plan submitted under subsection (d) of this
section comply with the requirements under
paragraph (1). Such activities may include—
(A) demolition or relocation of any structure located on land that is along the shore
of a lake or other body of water and is certified by an appropriate State or local land
use authority to be subject to imminent collapse or subsidence as a result of erosion or
flooding;
(B) elevation, relocation, demolition, or
floodproofing of structures (including public
structures) located in areas having special
flood hazards or other areas of flood risk;
(C) acquisition by States and communities
of properties (including public properties) located in areas having special flood hazards
or other areas of flood risk and properties
substantially damaged by flood, for public

§ 4104c

use, as the Director determines is consistent
with sound land management and use in
such area;
(D) minor physical mitigation efforts that
do not duplicate the flood prevention activities of other Federal agencies and that lessen the frequency or severity of flooding and
decrease predicted flood damages, which
shall not include major flood control
projects such as dikes, levees, seawalls,
groins, and jetties unless the Director specifically determines in approving a mitigation plan that such activities are the most
cost-effective mitigation activities for the
National Flood Mitigation Fund;
(E) beach nourishment activities;
(F) the provision of technical assistance by
States to communities and individuals to
conduct eligible mitigation activities;
(G) other activities that the Director considers appropriate and specifies in regulation; and
(H) other mitigation activities not described in subparagraphs (A) through (F) or
the regulations issued under subparagraph
(G), that are described in the mitigation
plan of a State or community.
(f) Limitations on amount of assistance
(1) Amount
The sum of the amounts of mitigation assistance provided under this section during
any 5-year period may not exceed—
(A) $10,000,000, to any State; or
(B) $3,300,000, to any community.
(2) Geographic
The sum of the amounts of mitigation assistance provided under this section during
any 5-year period to any one State and all
communities located in such State may not
exceed $20,000,000.
(3) Waiver
The Director may waive the dollar amount
limitations under paragraphs (1) and (2) for
any State or community for any 5-year period
during which a major disaster or emergency
declared by the President (pursuant to the
Robert T. Stafford Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et seq.])
as a result of flood conditions is in effect with
respect to areas in the State or community.
(g) Matching requirement
(1) In general
The Director may not provide mitigation assistance under this section to a State or community in an amount exceeding 3 times the
amount that the State or community certifies, as the Director shall require, that the
State or community will contribute from nonFederal funds to develop a mitigation plan
under subsection (c) of this section and to
carry out mitigation activities under the approved mitigation plan. In no case shall any
in-kind contribution by any State or community exceed one-half of the amount of non-Federal funds contributed by the State or community.
(2) Reduced community match
With respect to any 1-year period in which
assistance is made available under this sec-

§ 4104c

TITLE 42—THE PUBLIC HEALTH AND WELFARE

tion, the Director may adjust the contribution
required under paragraph (1) by any State, and
for the communities located in that State, to
not less than 10 percent of the cost of the activities for each severe repetitive loss property
for which grant amounts are provided if, for
such year—
(A) the State has an approved State mitigation plan meeting the requirements for
hazard mitigation planning under section 322
of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5165)
that specifies how the State intends to reduce the number of severe repetitive loss
properties; and
(B) the Director determines, after consultation with the State, that the State has
taken actions to reduce the number of such
properties.
(3) Non-Federal funds
For purposes of this subsection, the term
‘‘non-Federal funds’’ includes State or local
agency funds, in-kind contributions, any salary paid to staff to carry out the mitigation
activities of the recipient, the value of the
time and services contributed by volunteers to
carry out such activities (at a rate determined
by the Director), and the value of any donated
material or building and the value of any lease
on a building.
(h) Oversight of mitigation plans
The Director shall conduct oversight of recipients of mitigation assistance under this section
to ensure that the assistance is used in compliance with the approved mitigation plans of the
recipients and that matching funds certified
under subsection (g) of this section are used in
accordance with such certification.
(i) Recapture
(1) Noncompliance with plan
If the Director determines that a State or
community that has received mitigation assistance under this section has not carried out
the mitigation activities as set forth in the
mitigation plan, the Director shall recapture
any unexpended amounts and deposit the
amounts in the National Flood Mitigation
Fund under section 4104d of this title.
(2) Failure to provide matching funds
If the Director determines that a State or
community that has received mitigation assistance under this section has not provided
matching funds in the amount certified under
subsection (g) of this section, the Director
shall recapture any unexpended amounts of
mitigation assistance exceeding 3 times the
amount of such matching funds actually provided and deposit the amounts in the National
Flood Mitigation Fund under section 4104d of
this title.
(j) Reports
Not later than 1 year after September 23, 1994,
and biennially thereafter, the Director shall
submit a report to the Congress describing the
status of mitigation activities carried out with
assistance provided under this section.
(k) ‘‘Community’’ defined
For purposes of this section, the term ‘‘community’’ means—

Page 5206

(1) a political subdivision that (A) has zoning
and building code jurisdiction over a particular area having special flood hazards, and (B)
is participating in the national flood insurance program; or
(2) a political subdivision of a State, or other
authority, that is designated to develop and
administer a mitigation plan by political subdivisions, all of which meet the requirements
of paragraph (1).
(m) 1 Coordination with States and communities
The 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, including
owners of properties that are not located in
areas having special flood hazards (the 100-year
floodplain), but are located within flood prone
areas.
(Pub. L. 90–448, title XIII, § 1366, as added Pub. L.
103–325, title V, § 553(a), Sept. 23, 1994, 108 Stat.
2270; amended Pub. L. 108–264, title I, § 103(a)–(c),
(e), (f), June 30, 2004, 118 Stat. 721, 722.)
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a) and (c), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (f)(3), is
Pub. L. 93–288, May 22, 1974, 88 Stat. 143, as amended,
which is classified principally to chapter 68 (§ 5121 et
seq.) of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 5121 of this title and Tables.
AMENDMENTS
2004—Subsec. (b)(2). Pub. L. 108–264, § 103(f), substituted ‘‘7.5 percent of the available funds under this
section’’ for ‘‘$1,500,000’’.
Subsec. (e)(3). Pub. L. 108–264, § 103(a), inserted at end
‘‘The Director may approve only mitigation plans that
give priority for funding to such properties, or to such
subsets of properties, as are in the best interest of the
National Flood Insurance Fund.’’
Subsec. (e)(4). Pub. L. 108–264, § 103(b), added par. (4)
and struck out heading and text of former par. (4). Text
read as follows: ‘‘The Director shall make every effort
to provide mitigation assistance under this section for
mitigation plans proposing activities for repetitive loss
structures and structures that have incurred substantial damage.’’
Subsec. (g)(2), (3). Pub. L. 108–264, § 103(e), added par.
(2) and redesignated former par. (2) as (3).
Subsec. (m). Pub. L. 108–264, § 103(c), added subsec.
(m).
REGULATIONS
Pub. L. 103–325, title V, § 553(b), Sept. 23, 1994, 108
Stat. 2273, required the Director of the Federal Emergency Management Agency to issue regulations no
later than 6 months after Sept. 23, 1994, to carry out
this section.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
1 So

in original. No subsec. (l) has been enacted.

Page 5207

TITLE 42—THE PUBLIC HEALTH AND WELFARE

the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4104d. National Flood Mitigation Fund
(a) Establishment and availability
The Director shall establish in the Treasury of
the United States a fund to be known as the National Flood Mitigation Fund, which shall be
credited with amounts described in subsection
(b) of this section and shall be available, to the
extent provided in appropriation Acts, for providing assistance under section 4104c of this
title.
(b) Credits
The National Flood Mitigation Fund shall be
credited with—
(1) in each fiscal year, amounts from the National Flood Insurance Fund not exceeding
$40,000,000, to remain available until expended;
(2) any penalties collected under section
4012a(f) of this title; and
(3) any amounts recaptured under section
4104c(i) of this title.
(c) Administrative expenses
The Director may use not more than 5 percent
of amounts made available under subsection (b)
of this section to cover salaries, expenses, and
other administrative costs incurred by the Director to make grants and provide assistance
under sections 4104c and 4030 of this title.
(d) Investment
If the Director determines that the amounts in
the National Flood Mitigation Fund are in excess of amounts needed under subsection (a) of
this section, the Director may invest any excess
amounts the Director determines advisable in
interest-bearing obligations issued or guaranteed by the United States.
(e) Report
The Director shall submit a report to the Congress not later than the expiration of the 1-year
period beginning on September 23, 1994, and not
less than once during each successive 2-year period thereafter. The report shall describe the
status of the Fund and any activities carried out
with amounts from the Fund.
(Pub. L. 90–448, title XIII, § 1367, as added Pub. L.
103–325, title V, § 554(a), Sept. 23, 1994, 108 Stat.
2273; amended Pub. L. 108–264, title I, § 103(d),
June 30, 2004, 118 Stat. 721.)
CODIFICATION
September 23, 1994, referred to in subsec. (e), was in
the original ‘‘the date of enactment of this Act’’, which
was translated as meaning the date of enactment of
Pub. L. 103–325, which enacted this section, to reflect
the probable intent of Congress.

§ 4105

AMENDMENTS
2004—Subsec. (b)(1). Pub. L 108–264, § 103(d)(1), added
par. (1) and struck out former par. (1) which read as follows: ‘‘amounts from the National Flood Insurance
Fund, in amounts not exceeding—
‘‘(A) $10,000,000 in the fiscal year ending September
30, 1994;
‘‘(B) $15,000,000 in the fiscal year ending September
30, 1995;
‘‘(C) $20,000,000 in the fiscal year ending September
30, 1996; and
‘‘(D) $20,000,000 in each fiscal year thereafter;’’.
Subsecs. (c) to (e). Pub. L. 108–264, § 103(d)(2), (3),
added subsec. (c) and redesignated former subsecs. (c)
and (d) as (d) and (e), respectively.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4105. Disaster mitigation requirements; notification to flood-prone areas
(a) Initial notification
Not later than six months following December
31, 1973, the Director shall publish information
in accordance with section 4101(1) of this title,
and shall notify the chief executive officer of
each known flood-prone community not already
participating in the national flood insurance
program of its tentative identification as a community containing one or more areas having
special flood hazards.
(b) Alternative actions of tentatively identified
communities; public hearing; opportunity for
submission of evidence; finality of administrative determination of existence or extent
of flood hazard area
After such notification, each tentatively identified community shall either (1) promptly make
proper application to participate in the national
flood insurance program or (2) within six
months submit technical data sufficient to establish to the satisfaction of the Director that
the community either is not seriously flood
prone or that such flood hazards as may have existed have been corrected by flood-works or
other flood control methods. The Director may,
in his discretion, grant a public hearing to any
community with respect to which conflicting
data exist as to the nature and extent of a flood
hazard. If the Director decides not to hold a
hearing, the community shall be given an opportunity to submit written and documentary evidence. Whether or not such hearing is granted,
the Director’s final determination as to the existence or extent of a flood hazard area in a particular community shall be deemed conclusive
for the purposes of this Act if supported by sub-

§ 4106

TITLE 42—THE PUBLIC HEALTH AND WELFARE

stantial evidence in the record considered as a
whole.
(c) Subsequent notification to additional communities known to be flood prone areas
As information becomes available to the Director concerning the existence of flood hazards
in communities not known to be flood prone at
the time of the initial notification provided for
by subsection (a) of this section he shall provide
similar notifications to the chief executive officers of such additional communities, which shall
then be subject to the requirements of subsection (b) of this section.
(d) Provisions of section 4106 applicable to floodprone communities disqualified for flood insurance program
Formally identified flood-prone communities
that do not qualify for the national flood insurance program within one year after such notification or by the date specified in section 4106 of
this title, whichever is later, shall thereafter be
subject to the provisions of that section relating
to flood-prone communities which are not participating in the program.
(e) Administrative procedures; establishment; reimbursement of certain expenses; appropriation authorization
The Director is authorized to establish administrative procedures whereby the identification
under this section of one or more areas in the
community as having special flood hazards may
be appealed to the Director by the community
or any owner or lessee of real property within
the community who believes his property has
been inadvertently included in a special flood
hazard area by the identification. When, incident to any appeal under this subsection, the
owner or lessee of real property or the community, as the case may be, incurs expense in connection with the services of surveyors, engineers, or similar services, but not including
legal services, in the effecting of an appeal
which is successful in whole or part, the Director shall reimburse such individual or community to an extent measured by the ratio of the
successful portion of the appeal as compared to
the entire appeal and applying such ratio to the
reasonable value of all such services, but no reimbursement shall be made by the Director in
respect to any fee or expense payment, the payment of which was agreed to be contingent upon
the result of the appeal. There is authorized to
be appropriated for purposes of implementing
this subsection not to exceed $250,000.
(Pub. L. 93–234, title II, § 201, Dec. 31, 1973, 87
Stat. 982; Pub. L. 95–128, title VII, § 704(d), Oct.
12, 1977, 91 Stat. 1146; Pub. L. 98–181, title IV,
§ 451(e)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L.
98–479, title II, § 204(j), Oct. 17, 1984, 98 Stat. 2233.)
REFERENCES IN TEXT
This Act, referred to in subsec. (b), means Pub. L.
93–234, Dec. 31, 1973, 87 Stat. 975, as amended, known as
the Flood Disaster Protection Act of 1973. For complete
classification of this Act to the Code, see Short Title of
1973 Amendment note set out under section 4001 of this
title and Tables.

Page 5208

CODIFICATION
Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
1984—Subsec. (e). Pub. L. 98–479 struck out quotation
marks before ‘‘$250,000’’.
1983—Subsecs. (a) to (c), (e). Pub. L. 98–181 substituted
‘‘Director’’ for ‘‘Secretary’’ and ‘‘Director’s’’ for ‘‘Secretary’s’’ wherever appearing.
1977—Subsec. (e). Pub. L. 95–128 added subsec. (e).
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4106. Nonparticipation in flood insurance program
(a) Prohibition against Federal approval of financial assistance
No Federal officer or agency shall approve any
financial assistance for acquisition or construction purposes on and after July 1, 1975, for use in
any area that has been identified by the Director as an area having special flood hazards unless the community in which such area is situated is then participating in the national flood
insurance program.
(b) Notification of purchaser or lessee of property in flood hazard area of availability of
Federal disaster relief assistance in event of
a flood disaster
In addition to the requirements of section
4104a of this title, each Federal entity for lending regulation shall by regulation require the
regulated lending institutions described in such
section, and each Federal agency lender shall
issue regulations requiring the Federal agency
lender, described in such section to notify (as a
condition of making, increasing, extending, or
renewing any loan secured by property described
in such section) the purchaser or lessee of such
property of whether, in the event of a disaster
caused by flood to such property, Federal disaster relief assistance will be available to such
property.
(Pub. L. 93–234, title II, § 202, Dec. 31, 1973, 87
Stat. 982; Pub. L. 94–50, title III, § 303, July 2,
1975, 89 Stat. 256; Pub. L. 94–198, Dec. 31, 1975, 89
Stat. 1116; Pub. L. 94–375, § 14(a), Aug. 3, 1976, 90
Stat. 1075; Pub. L. 95–128, title VII, § 703(a), Oct.
12, 1977, 91 Stat. 1144; Pub. L. 98–181, title IV,
§ 451(e)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L.
103–325, title V, § 511(b), Sept. 23, 1994, 108 Stat.
2256.)

Page 5209

TITLE 42—THE PUBLIC HEALTH AND WELFARE
CODIFICATION

Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
1994—Subsec. (b). Pub. L. 103–325 substituted ‘‘Federal
entity for lending regulation shall by regulation require the regulated lending institutions described in
such section, and each Federal agency lender shall
issue regulations requiring the Federal agency lender,’’
for ‘‘Federal instrumentality described in such section
shall by regulation require the institutions’’.
1983—Subsec. (a). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
1977—Subsec. (b). Pub. L. 95–128 substituted provisions respecting notification of purchaser or lessee of
property in flood hazards area of availability of Federal
disaster relief assistance in the event of a flood disaster
for prior provisions relating to: Federal regulations
against loans by financial institutions, unaffected preMarch 1, 1976, residences, small business concerns, improvements under $5,000 and nonresidential farm improvement.
1976—Subsec. (b). Pub. L. 94–375 incorporated provision regarding any loan made prior to March 1, 1976, to
finance the acquisition of a previously occupied residential dwelling into cl. (1) as so designated, added remainder of cl. (1), and cls. (2) to (4).
1975—Subsec. (b). Pub. L. 94–198 substituted ‘‘March 1,
1976’’ for ‘‘January 1, 1976’’.
Pub. L. 94–50 inserted provision excepting from the
prohibition of this section any loan made prior to January 1, 1976, to finance the acquisition of a previously
occupied residential dwelling.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
FLOODPLAIN MANAGEMENT
For provisions relating to the reduction of the risk of
flood loss, the minimization of the impact of floods on
human safety, health and welfare, and the management
of floodplains, see Ex. Ord. No. 11988, May 24, 1977, 42
F.R. 26951 set out as a note under section 4321 of this
title.

§ 4107. Consultation with local officials; scope
In carrying out his responsibilities under the
provisions of this title 1 and the National Flood
Insurance Act of 1968 [42 U.S.C. 4001 et seq.]
which relate to notification to and identification of flood-prone areas and the application of
criteria for land management and use, including
criteria derived from data reflecting new developments that may indicate the desirability of
modifying elevations based on previous flood
studies, the Director shall establish procedures
1 See

References in Text note below.

§ 4121

assuring adequate consultation with the appropriate elected officials of general purpose local
governments, including but not limited to those
local governments whose prior eligibility under
the program has been suspended. Such consultation shall include, but not be limited to, fully
informing local officials at the commencement
of any flood elevation study or investigation
undertaken by any agency on behalf of the Director concerning the nature and purpose of the
study, the areas involved, the manner in which
the study is to be undertaken, the general principles to be applied, and the use to be made of
the data obtained. The Director shall encourage
local officials to disseminate information concerning such study widely within the community, so that interested persons will have an opportunity to bring all relevant facts and technical data concerning the local flood hazard to
the attention of the agency during the course of
the study.
(Pub. L. 93–234, title II, § 206, Dec. 31, 1973, 87
Stat. 983; Pub. L. 98–181, title IV, § 451(e)(1), Nov.
30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This title, referred to in text, means title II of Pub.
L. 93–234, Dec. 31, 1973, 87 Stat. 975, as amended, which
enacted sections 4105 to 4107 and 4128 of this title and
amended section 4101 of this title and sections 24 and
1709–1 of Title 12, Banks and Banking. For complete
classification of this Act to the Code, see Short Title of
1973 Amendment note set out under section 4001 of this
title and Tables.
The National Flood Insurance Act of 1968, referred to
in text, is title XIII of Pub. L. 90–448, Aug. 1, 1968, 82
Stat. 572, as amended, which is classified principally to
this chapter (§ 4001 et seq.). For complete classification
of this Act to the Code, see Short Title note set out
under section 4001 of this title and Tables.
CODIFICATION
Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

SUBCHAPTER IV—GENERAL PROVISIONS
§ 4121. Definitions
(a) As used in this chapter—
(1) the term ‘‘flood’’ shall have such meaning
as may be prescribed in regulations of the Di-

§ 4121

TITLE 42—THE PUBLIC HEALTH AND WELFARE

rector, and may include inundation from rising waters or from the overflow of streams,
rivers, or other bodies of water, or from tidal
surges, abnormally high tidal water, tidal
waves, tsunamis, hurricanes, or other severe
storms or deluge;
(2) the terms ‘‘United States’’ (when used in
a geographic sense) and ‘‘State’’ includes the
several States, the District of Columbia, the
territories and possessions, the Commonwealth of Puerto Rico, and the Trust Territory
of the Pacific Islands;
(3) the terms ‘‘Insurance company’’, ‘‘other
insurer’’ and ‘‘insurance agent or broker’’ include any organizations and persons authorized to engage in the insurance business under
the laws of any State;
(4) the term ‘‘insurance adjustment organization’’ includes any organizations and persons engaged in the business of adjusting loss
claims arising under insurance policies issued
by any insurance company or other insurer;
(5) the term ‘‘person’’ includes any individual or group of individuals, corporation, partnership, association, or any other organized
group of persons, including State and local
governments and agencies thereof;
(6) the term ‘‘Director’’ means the Administrator of the Federal Emergency Management
Agency;
(7) the term ‘‘repetitive loss structure’’
means a structure covered by a contract for
flood insurance that—
(A) has incurred flood-related damage on 2
occasions, in which the cost of repair, on the
average, equaled or exceeded 25 percent of
the value of the structure at the time of
each such flood event; and
(B) at the time of the second incidence of
flood-related damage, the contract for flood
insurance contains increased cost of compliance coverage.1
(8) the term ‘‘Federal agency lender’’ means
a Federal agency that makes direct loans secured by improved real estate or a mobile
home, to the extent such agency acts in such
capacity;
(9) the term ‘‘Federal entity for lending regulation’’ means the Board of Governors of the
Federal Reserve System, the Federal Deposit
Insurance Corporation, the Comptroller of the
Currency, the Office of Thrift Supervision, the
National Credit Union Administration, and
the Farm Credit Administration, and with respect to a particular regulated lending institution means the entity primarily responsible
for the supervision of the institution;
(10) the term ‘‘improved real estate’’ means
real estate upon which a building is located;
(11) the term ‘‘lender’’ means a regulated
lending institution or Federal agency lender;
(12) the term ‘‘natural and beneficial floodplain functions’’ means—
(A) the functions associated with the natural or relatively undisturbed floodplain that
(i) moderate flooding, retain flood waters,
reduce erosion and sedimentation, and mitigate the effect of waves and storm surge
1 So

in original. The period probably should be a semicolon.

Page 5210

from storms, and (ii) reduce flood related
damage; and
(B) ancillary beneficial functions, including maintenance of water quality and recharge of ground water, that reduce flood related damage;
(13) the term ‘‘regulated lending institution’’
means any bank, savings and loan association,
credit union, farm credit bank, Federal land
bank association, production credit association, or similar institution subject to the supervision of a Federal entity for lending regulation;
(14) the term ‘‘servicer’’ means the person
responsible for receiving any scheduled periodic payments from a borrower pursuant to
the terms of a loan, including amounts for
taxes, insurance premiums, and other charges
with respect to the property securing the loan,
and making the payments of principal and interest and such other payments with respect
to the amounts received from the borrower as
may be required pursuant to the terms of the
loan; and
(15) the term ‘‘substantially damaged structure’’ means a structure covered by a contract
for flood insurance that has incurred damage
for which the cost of repair exceeds an amount
specified in any regulation promulgated by the
Director, or by a community ordinance,
whichever is lower.
(b) The term ‘‘flood’’ shall also include inundation from mudslides which are proximately
caused by accumulations of water on or under
the ground; and all of the provisions of this
chapter shall apply with respect to such mudslides in the same manner and to the same extent as with respect to floods described in subsection (a)(1) of this section, subject to and in
accordance with such regulations, modifying the
provisions of this chapter (including the provisions relating to land management and use) to
the extent necessary to insure that they can be
effectively so applied, as the Director may prescribe to achieve (with respect to such mudslides) the purposes of this chapter and the objectives of the program.
(c) The term ‘‘flood’’ shall also include the collapse or subsidence of land along the shore of a
lake or other body of water as a result of erosion
or undermining caused by waves or currents of
water exceeding anticipated cyclical levels, and
all of the provisions of this chapter shall apply
with respect to such collapse or subsidence in
the same manner and to the same extent as with
respect to floods described in subsection (a)(1) of
this section, subject to and in accordance with
such regulations, modifying the provisions of
this chapter (including the provisions relating
to land management and use) to the extent necessary to insure that they can be effectively so
applied, as the Director may prescribe to
achieve (with respect to such collapse or subsidence) the purposes of this chapter and the objectives of the program.
(Pub. L. 90–448, title XIII, § 1370, Aug. 1, 1968, 82
Stat. 588; Pub. L. 91–152, title IV, § 409(b), Dec. 24,
1969, 83 Stat. 397; Pub. L. 93–234, title I, §§ 107,
108(b), Dec. 31, 1973, 87 Stat. 979, 980; Pub. L.
98–181, title IV, § 451(d)(1), (8), Nov. 30, 1983, 97

Page 5211

TITLE 42—THE PUBLIC HEALTH AND WELFARE

Stat. 1229; Pub. L. 100–628, title X, § 1086(b), Nov.
7, 1988, 102 Stat. 3278; Pub. L. 103–325, title V,
§ 512(a), Sept. 23, 1994, 108 Stat. 2256; Pub. L.
108–264, title I, § 105(b), June 30, 2004, 118 Stat.
723; Pub. L. 109–295, title VI, § 612(c), Oct. 4, 2006,
120 Stat. 1410.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
2004—Subsec. (a)(7). Pub. L. 108–264, § 105(b)(1), added
par. (7) and struck out former par. (7) which read as follows: ‘‘the term ‘repetitive loss structure’ means a
structure covered by a contract for flood insurance
under this chapter that has incurred flood-related damage on 2 occasions during a 10-year period ending on the
date of the event for which a second claim is made, in
which the cost of repair, on the average, equaled or exceeded 25 percent of the value of the structure at the
time of each such flood event;’’.
Subsec. (a)(15). Pub. L. 108–264, § 105(b)(2)–(4), added
par. (15).
1994—Subsec. (a)(7) to (14). Pub. L. 103–325 added pars.
(7) to (14).
1988—Subsecs. (b), (c). Pub. L. 100–628 substituted
‘‘subsection (a)(1) of this section’’ for ‘‘paragraph (1)’’.
1983—Subsec. (a)(1). Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for ‘‘Secretary’’.
Subsec. (a)(6). Pub. L. 98–181, § 451(d)(8), substituted
definition of ‘‘Director’’ as the Director of the Federal
Emergency Management Agency for definition of ‘‘Secretary’’ as the Secretary of Housing and Urban Development.
Subsecs. (b), (c). Pub. L. 98–181, § 451(d)(1), substituted
‘‘Director’’ for ‘‘Secretary’’.
1973—Subsec. (b). Pub. L. 93–234, § 107, inserted ‘‘proximately’’ before ‘‘caused’’.
Subsec. (c). Pub. L. 93–234, § 108(b), added subsec. (c).
1969—Pub. L. 91–152 designated existing provisions as
subsec. (a) and added subsec. (b).
CHANGE OF NAME
‘‘Administrator of the Federal Emergency Management Agency’’ substituted for ‘‘Director of the Federal
Emergency Management Agency’’ in subsec. (a)(6) on
authority of section 612(c) of Pub. L. 109–295, set out as
a note under section 313 of Title 6, Domestic Security.
Any reference to the Administrator of the Federal
Emergency Management Agency in title VI of Pub. L.
109–295 or an amendment by title VI to be considered to
refer and apply to the Director of the Federal Emergency Management Agency until Mar. 31, 2007, see section 612(f)(2) of Pub. L. 109–295, set out as a note under
section 313 of Title 6.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reor-

§ 4123

ganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
For transfer of functions of the Office of Thrift Supervision, including the functions of the Director of the
Office of Thrift Supervision, to the Board of Governors
of the Federal Reserve System, the Office of the Comptroller of the Currency and the Comptroller of the Currency, and the Federal Deposit Insurance Corporation,
see sections 5412 and 5413 of Title 12, Banks and Banking.
TERMINATION OF TRUST TERRITORY OF THE PACIFIC
ISLANDS
For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title
48, Territories and Insular Possessions.

§ 4122. Studies of other natural disasters; cooperation and consultation with other departments and agencies
(a) The Director is authorized to undertake
such studies as may be necessary for the purpose
of determining the extent to which insurance
protection against earthquakes or any other
natural disaster perils, other than flood, is not
available from public or private sources, and the
feasibility of such insurance protection being
made available.
(b) Studies under this section shall be carried
out, to the maximum extent practicable, with
the cooperation of other Federal departments
and agencies and State and local agencies, and
the Director is authorized to consult with, receive information from, and enter into any necessary agreements or other arrangements with
such other Federal departments and agencies
(on a reimbursement basis) and such State and
local agencies.
(Pub. L. 90–448, title XIII, § 1371, Aug. 1, 1968, 82
Stat. 588; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
STUDY OF SINKHOLE INSURANCE
Pub. L. 98–181, title IV, § 453, Nov. 30, 1983, 97 Stat.
1230, permitted the Director of the Federal Emergency
Management Agency to make a grant to a nonprofit organization, educational institution, or State or local
agency to study the feasibility of expanding the national flood insurance program to cover damage or loss
arising from sinkholes and authorized appropriations.

§ 4123. Advance payments
Any payments under this chapter may be
made (after necessary adjustment on account of

§ 4124

TITLE 42—THE PUBLIC HEALTH AND WELFARE

previously made underpayments or overpayments) in advance or by way of reimbursement,
and in such installments and on such conditions,
as the Director may determine.
(Pub. L. 90–448, title XIII, § 1372, Aug. 1, 1968, 82
Stat. 589; Pub. L. 98–181, title IV, § 451(d)(1), Nov.
30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

§ 4124. Applicability of fiscal controls
The provisions of chapter 91 of title 31 shall
apply to the program authorized under this
chapter to the same extent as they apply to
wholly owned Government corporations.
(Pub. L. 90–448, title XIII, § 1373, Aug. 1, 1968, 82
Stat. 589; Pub. L. 98–479, title II, § 203(j)(3), Oct.
17, 1984, 98 Stat. 2231.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
1984—Pub. L. 98–479 substituted ‘‘chapter 91 of title
31’’ for ‘‘the Government Corporation Control Act’’.

§ 4125. Finality of certain financial transactions
Notwithstanding the provisions of any other
law—
(1) any financial transaction authorized to
be carried out under this chapter, and
(2) any payment authorized to be made or to
be received in connection with any such financial transaction,
shall be final and conclusive upon all officers of
the Government.
(Pub. L. 90–448, title XIII, § 1374, Aug. 1, 1968, 82
Stat. 589.)

Page 5212

REFERENCES IN TEXT
This chapter, referred to in par. (1), was in the original a reference to ‘‘this title’’ meaning title XIII of
Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.

§ 4126. Administrative expenses
Any administrative expenses which may be
sustained by the Federal Government in carrying out the flood insurance and floodplain management programs authorized under this chapter may be paid with amounts from the National
Flood Insurance Fund (as provided under section
4017(a)(4) of this title), subject to approval in appropriations Acts.
(Pub. L. 90–448, title XIII, § 1375, Aug. 1, 1968, 82
Stat. 589; Pub. L. 101–508, title II, § 2302(e)(4),
Nov. 5, 1990, 104 Stat. 1388–25.)
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
1990—Pub. L. 101–508 substituted ‘‘and floodplain
management programs authorized under this chapter
may be paid with amounts from the National Flood Insurance Fund (as provided under section 4017(a)(4) of
this title), subject to approval in appropriations Acts’’
for ‘‘program authorized under this chapter may be
paid out of appropriated funds’’.

§ 4127. Authorization of appropriations; availability
(a) There are hereby authorized to be appropriated such sums as may from time to time be
necessary to carry out this chapter, including
sums—
(1) to cover administrative expenses authorized under section 4126 of this title;
(2) to reimburse the National Flood Insurance Fund established under section 4017 of
this title for—
(A) premium equalization payments under
section 4054 of this title which have been
made from such fund; and
(B) reinsurance claims paid under the excess loss reinsurance coverage provided
under section 4055 of this title; and
(3) to make such other payments as may be
necessary to carry out the purposes of this
chapter.
(b) All such funds shall be available without
fiscal year limitation.
(c) There are authorized to be appropriated
such sums as may be necessary through the date
specified in section 4026 of this title, for studies
under this chapter.
(Pub. L. 90–448, title XIII, § 1376, Aug. 1, 1968, 82
Stat. 589; Pub. L. 94–375, § 14(c), Aug. 3, 1976, 90
Stat. 1075; Pub. L. 95–128, title VII, § 702, Oct. 12,
1977, 91 Stat. 1144; Pub. L. 95–557, title III, § 309,
Oct. 31, 1978, 92 Stat. 2098; Pub. L. 96–153, title

Page 5213

TITLE 42—THE PUBLIC HEALTH AND WELFARE

VI, § 602(c), Dec. 21, 1979, 93 Stat. 1137; Pub. L.
96–399, title III, § 304, Oct. 8, 1980, 94 Stat. 1639;
Pub. L. 97–35, title III, § 341(a), Aug. 13, 1981, 95
Stat. 418; Pub. L. 98–181, title IV, § 451(c), Nov. 30,
1983, 97 Stat. 1229; Pub. L. 100–242, title V, § 543,
Feb. 5, 1988, 101 Stat. 1940; Pub. L. 101–137, § 4,
Nov. 3, 1989, 103 Stat. 825; Pub. L. 104–204, title
III, Sept. 26, 1996, 110 Stat. 2915; Pub. L. 105–65,
title III, Oct. 27, 1997, 111 Stat. 1377; Pub. L.
105–276, title III, Oct. 21, 1998, 112 Stat. 2503; Pub.
L. 106–74, title III, Oct. 20, 1999, 113 Stat. 1088;
Pub. L. 106–377, § 1(a)(1) [title III], Oct. 27, 2000,
114 Stat. 1441, 1441A–47; Pub. L. 107–73, title III,
Nov. 26, 2001, 115 Stat. 689; Pub. L. 108–3, § 2(a)(4),
Jan. 13, 2003, 117 Stat. 7; Pub. L. 108–171, § 2(a)(4),
Dec. 6, 2003, 117 Stat. 2064; Pub. L. 108–199, div. H,
§ 136(a)(4), Jan. 23, 2004, 118 Stat. 442; Pub. L.
108–264, title I, § 101(d), June 30, 2004, 118 Stat.
714.)
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a) and (c), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
AMENDMENTS
2004—Subsec. (c). Pub. L. 108–264 substituted ‘‘through
the date specified in section 4026 of this title, for studies under this chapter.’’ for ‘‘through the date specified
in section 4026 of this title, for studies under this chapter. Any amount appropriated under this subsection
shall remain available until expended.’’
Pub. L. 108–199 made amendment identical to that
made by Pub. L. 108–171. See 2003 Amendment note
below.
2003—Subsec. (c). Pub. L. 108–171 substituted ‘‘the
date specified in section 4026 of this title’’ for ‘‘December 31, 2003’’.
Pub. L. 108–3 substituted ‘‘December 31, 2003’’ for ‘‘December 31, 2002’’.
2001—Subsec. (c). Pub. L. 107–73 substituted ‘‘2002’’ for
‘‘2001’’.
2000—Subsec. (c). Pub. L. 106–377 substituted ‘‘December 31, 2001’’ for ‘‘September 30, 2000’’.
1999—Subsec. (c). Pub. L. 106–74 substituted ‘‘2000’’ for
‘‘1999’’.
1998—Subsec. (c). Pub. L. 105–276 substituted ‘‘1999’’
for ‘‘1998’’.
1997—Subsec. (c). Pub. L. 105–65 substituted ‘‘such
sums as may be necessary through September 30, 1998,
for studies under this chapter’’ for ‘‘for studies under
this chapter not to exceed $36,283,000 for fiscal year
1990, and such sums as may be necessary for fiscal year
1991’’.
1996—Subsec. (c). Pub. L. 104–204, which directed
amendment of first sentence by substituting ‘‘such
sums as may be necessary through September 30, 1997
for studies under this chapter.’’ for ‘‘this subsection’’
and all that follows, could not be executed because
phrase ‘‘this subsection’’ does not appear in first sentence.
1989—Subsec. (c). Pub. L. 101–137 substituted provisions authorizing appropriations of not to exceed
$36,283,000 for fiscal year 1990 and such sums as may be
necessary for fiscal year 1991 for provisions authorizing
appropriations of $37,000,000 for fiscal year 1988, and
$37,000,000 for fiscal year 1989.
1988—Subsec. (c). Pub. L. 100–242 amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as follows: ‘‘There are authorized to be appropriated for
studies under this chapter not to exceed $100,000,000 for
the fiscal year 1977, not to exceed $108,000,000 for the fiscal year 1978, not to exceed $114,000,000 for the fiscal

§ 4128

year 1979, not to exceed $74,000,000 for the fiscal year
1980, not to exceed $61,600,000 for the fiscal year 1981,
not to exceed $42,600,000 for the fiscal year 1982, not to
exceed $49,752,000 for the fiscal year 1984, and such sums
as may be necessary for fiscal year 1985.’’
1983—Subsec. (c). Pub. L. 98–181 inserted ‘‘not to exceed $49,752,000 for the fiscal year 1984, and such sums
as may be necessary for fiscal year 1985’’.
1981—Subsec. (c). Pub. L. 97–35 authorized appropriation of not to exceed $42,600,000 for fiscal year 1982.
1980—Subsec. (c). Pub. L. 96–399 authorized appropriation of not to exceed $61,600,000 for fiscal year 1981.
1979—Subsec. (c). Pub. L. 96–153 authorized appropriation of $74,000,000 for fiscal year 1980.
1978—Subsec. (c). Pub. L. 95–557 substituted ‘‘not to
exceed $108,000,000 for the fiscal year 1978, and not to exceed $114,000,000 for the fiscal year 1979’’ for ‘‘and not to
exceed $108,000,000 for the fiscal year 1978’’.
1977—Subsec. (c). Pub. L. 95–128 authorized appropriation of $108,000,000 for fiscal year 1978.
1976—Subsec. (c). Pub. L. 94–375 added subsec. (c).
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108–199 considered to have
taken effect on Dec. 31, 2003, see section 136(b) of div. H
of Pub. L. 108–199, set out as a note under section 4016
of this title.
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendment by Pub. L. 108–171 effective Dec. 31, 2003,
see section 2(b) of Pub. L. 108–171, set out as a note
under section 4016 of this title.
Amendment by Pub. L. 108–3 effective Dec. 31, 2002,
see section 2(b) of Pub. L. 108–3, set out as a note under
section 4016 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of Title 12, Banks and Banking.

§ 4128. Rules and regulations
(a) The Director is authorized to issue such
regulations as may be necessary to carry out the
purpose of this Act.
(b) The head of each Federal agency that administers a program of financial assistance relating to the acquisition, construction, reconstruction, repair, or improvement of publicly or
privately owned land or facilities, and each Federal instrumentality responsible for the supervision, approval, regulation, or insuring of
banks, savings and loan associations, or similar
institutions, shall, in cooperation with the Director, issue appropriate rules and regulations
to govern the carrying out of the agency’s responsibilities under this Act.
(Pub. L. 93–234, title II, § 205, Dec. 31, 1973, 87
Stat. 983; Pub. L. 98–181, title IV, § 451(e)(1), Nov.
30, 1983, 97 Stat. 1229.)
REFERENCES IN TEXT
This Act, referred to in text, means Pub. L. 93–234,
Dec. 31, 1973, 87 Stat. 975, as amended, known as the
Flood Disaster Protection Act of 1973. For complete
classification of this Act to the Code, see Short Title of
1973 Amendment note set out under section 4001 of this
title and Tables.
CODIFICATION
Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.

§ 4129

TITLE 42—THE PUBLIC HEALTH AND WELFARE
TRANSFER OF FUNCTIONS

For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
FLOODPLAIN MANAGEMENT
For provisions relating to the reduction of the risk of
flood loss, the minimization of the impact of floods on
human safety, health and welfare, and the management
of floodplains, see Ex. Ord. No. 11988, May 24, 1977, 42
F.R. 26951, set out as a note under section 4321 of this
title.

§ 4129. Federal Insurance Administrator; establishment of position
There is hereby established in the Federal
Emergency Management Agency the position of
Federal Insurance Administrator.
(Pub. L. 90–448, title XI, § 1105(a), Aug. 1, 1968, 82
Stat. 567; Pub. L. 96–153, title VI, § 603(a), Dec. 21,
1979, 93 Stat. 1138.)
CODIFICATION
Section was formerly classified to section 3533a of
this title.
Section was enacted as part of the Urban Property
Protection and Reinsurance Act of 1968 and also as part
of the Housing and Urban Development Act of 1968, and
not as part of the National Flood Insurance Act of 1968
which comprises this chapter.
AMENDMENTS
1979—Pub. L. 96–153 substituted ‘‘Federal Emergency
Management Agency’’ for ‘‘Department of Housing and
Urban Development’’.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.

CHAPTER 51—DESIGN AND CONSTRUCTION
OF PUBLIC BUILDINGS TO ACCOMMODATE
PHYSICALLY HANDICAPPED
Sec.

4151.
4152.

‘‘Building’’ defined.
Standards for design, construction, and alteration of buildings; Administrator of General Services.

Page 5214

Sec.

4153.
4154.
4154a.
4155.
4156.
4157.

Standards for design, construction, and alteration of buildings; Secretary of Housing and
Urban Development.
Standards for design, construction, and alteration of buildings; Secretary of Defense.
Standards for design, construction, and alteration of buildings; United States Postal
Service.
Effective date of standards.
Waiver and modification of standards.
Omitted.

§ 4151. ‘‘Building’’ defined
As used in this chapter, the term ‘‘building’’
means any building or facility (other than (A) a
privately owned residential structure not leased
by the Government for subsidized housing programs and (B) any building or facility on a military installation designed and constructed primarily for use by able bodied military personnel) the intended use for which either will require that such building or facility be accessible
to the public, or may result in the employment
or residence therein of physically handicapped
persons, which building or facility is—
(1) to be constructed or altered by or on behalf of the United States;
(2) to be leased in whole or in part by the
United States after August 12, 1968;
(3) to be financed in whole or in part by a
grant or a loan made by the United States
after August 12, 1968, if such building or facility is subject to standards for design, construction, or alteration issued under authority
of the law authorizing such grant or loan; or
(4) to be constructed under authority of the
National Capital Transportation Act of 1960,
the National Capital Transportation Act of
1965, or title III of the Washington Metropolitan Area Transit Regulation Compact.
(Pub. L. 90–480, § 1, Aug. 12, 1968, 82 Stat. 718;
Pub. L. 91–205, Mar. 5, 1970, 84 Stat. 49; Pub. L.
94–541, title II, § 201(1), Oct. 18, 1976, 90 Stat. 2507.)
REFERENCES IN TEXT
The National Capital Transportation Act of 1960, referred to in par. (4), is Pub. L. 86–669, July 14, 1960, 74
Stat. 537, which enacted sections 651, 652, 661 to 665, and
671 of former Title 40, Public Buildings, Property, and
Works, and enacted provisions set out as notes under
section 651 of former Title 40 and which was repealed by
Pub. L. 91–143, § 8(a)(1), Dec. 9, 1969, 83 Stat. 322.
The National Capital Transportation Act of 1965, referred to in par. (4), is Pub. L. 89–173, Sept. 8, 1965, 79
Stat. 663, as amended. Section 1 of the Act, which was
classified to a note under section 681 of former Title 40,
Public Buildings, Property, and Works, was repealed by
Pub. L. 107–217, § 6(b), Aug. 21, 2002, 116 Stat. 1304. Section 2 of the Act, which was classified to section 681 of
former Title 40, has been omitted from the Code. Sections 3 and 4 of the Act, which were classified to sections 682 and 683, respectively, of former Title 40, were
repealed by Pub. L. 91–143, § 8(a)(2), Dec. 9, 1969, 83 Stat.
323. Sections 5(a) (no subsec. (b) was enacted) and 6 of
the Act, which were classified to sections 684 and 685,
respectively, of former Title 40, were repealed by Pub.
L. 107–217, § 6(b), Aug. 21, 2002, 116 Stat. 1304. Section 7
of the Act amended provisions classified to section 662
of former Title 40, which was repealed by Pub. L. 89–774,
§ 5(b), Nov. 6, 1966, 80 Stat. 1353. Section 8 of the Act,
which was classified to a note under section 681 of
former Title 40, has been omitted from the Code.
AMENDMENTS
1976—Pub. L. 94–541 inserted in parenthetical text
‘‘not leased by the Government for subsidized housing