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pdfALL-HAZARD AUTHORITIES OF THE
FEDERAL EMERGENCY MANAGEMENT AGENCY
THE NATIONAL FLOOD INSURANCE ACT
OF 1968, AS AMENDED, AND
THE FLOOD DISASTER PROTECTION ACT
OF 1973, AS AMENDED
42 U.S.C. 4001 et seq.
OFFICE OF THE GENERAL COUNSEL
AUGUST, 1997
i
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Table of Contents
THE NATIONAL FLOOD INSURANCE ACT OF 1968, AS AMENDED, AND
THE FLOOD DISASTER PROTECTION ACT OF 1973, AS AMENDED,
42 U.S.C. 4001 et. seq
TABLE OF CONTENTS
§ 4001. Congressional findings and declaration of purpose
(a) Necessity and reasons for flood insurance program
(b) Participation of Federal Government in flood insurance program carried out by private
insurance industry
(c) Unified national program for flood plain management
(d) Authorization of flood insurance program; flexibility in program
(f) Mudslides
1
1
§ 4002. Additional Congressional findings and declaration of purpose
3
§ 4003. Additional definitions
5
SUBCHAPTER I--THE NATIONAL FLOOD INSURANCE PROGRAM
§ 4011. Authorization to establish and carry out program
(a) Authorization and establishment
(b) Additional coverage for compliance with land use and control measures
(c) Participation and risk sharing by insurers
1
2
2
3
7
7
7
7
8
§ 4012. Scope of program and priorities
8
(a) Priority for insurance for certain residential and church properties and business concerns8
(b) Availability of insurance for other properties
8
(c) Availability of insurance in States or areas evidencing positive interest in securing
insurance and assuring adoption of adequate land use and control measures
9
§ 4012a. Flood insurance purchase and compliance requirements and escrow accounts
(a) Amount and term of coverage
(b) Requirement for mortgage loans
(c) Exceptions to purchase requirements
(d) Escrow of flood insurance payments
(e) Placement of flood insurance by lender
(f) Civil monetary penalties for failure to require flood insurance or notify
(g) Other actions to remedy pattern of noncompliance
(h) Fee for determining location
10
10
10
12
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§ 4013. Nature and limitation of insurance coverage
(a) Regulations respecting general terms and conditions of insurability
(b) Regulations respecting amount of coverage
20
20
20
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ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Table of Contents
(c) Effective date of policies
22
§ 4014. Estimates of premium rates
23
(a) Studies and investigations
23
(b) Utilization of services of other Departments and agencies
24
(c) Priority to studies and investigations in States or areas evidencing positive interest in
securing insurance under program
24
(d) Parishes of Louisiana; premium rates
24
(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
25
(f) Availability of flood insurance in communities restoring disaccredited flood protection
systems; criteria; rates
25
§ 4015. Chargeable premium rates
27
(a) Establishment; terms and conditions
27
(b) Considerations for rates
27
(c) Rate with respect to property the construction or substantial improvement of which has
been started after December 31, 1974, or effective date of initial rate map published for area
in which property is located, whichever is later
28
(d) Payment of certain sums to Director; deposits in Fund
28
(e) Annual limitation on premium increases
28
§ 4016. Financing provisions; issuance of notes or other obligations; limitation; report to
Congressional committees; deposits in Fund
29
§ 4017. National Flood Insurance Fund
29
(a) Establishment; availability
29
(b) Credits to Fund
30
(c) Investment of moneys in obligations issued or guaranteed by United States
31
(d) Availability of Fund if operation of program is carried out through facilities of Federal
Government
31
(e) Annual budget
32
(f) Availability of funds dependent on future appropriations acts
32
ii
§ 4018. Operating costs and allowances; definitions
32
§ 4019. Payment of claims
33
§ 4022. State and local land use controls
(a) Requirement for participation in flood insurance program
(b) Community rating system and incentives for community floodplain management
34
34
35
§ 4023. Properties in violation of State and local law
37
§ 4024. Coordination with other programs
37
§ 4025. Flood insurance advisory committee
(a) Appointment; duties
(b) Membership
37
37
37
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Table of Contents
(c) Compensation and travel expenses
38
§ 4026. Expiration of program
38
§ 4027. Biennial report to President
(a) In general
(b) Effects of flood insurance program
38
38
38
§ 4028. Coastal Barrier Resources System
39
§ 4029. Colorado River Floodway
(a) Renewal and transfer of policies; acquisition of policies after filing of maps
(b) New coverage for new construction or substantial improvements
(c) Establishment of temporary boundaries
(d) Loans by federally supervised, approved, regulated, or insured financial institutions
39
39
40
40
40
SUBCHAPTER II--ORGANIZATION AND ADMINISTRATION OF FLOOD
INSURANCE PROGRAM
41
§ 4041. Implementation of program
PART A--INDUSTRY PROGRAM WITH FEDERAL FINANCIAL
ASSISTANCE
41
41
§ 4051. Industry flood insurance pool; requirements for participation
41
§ 4052. Agreements with flood insurance pool
(a) Authorization
(b) Terms and conditions
(c) Additional provisions
42
42
42
43
§ 4053. Adjustment and payment of claims; judicial review; limitations; jurisdiction
43
§ 4054. Premium equalization payments; basis; aggregate amount; establishment of
designated periods
44
§ 4055. Reinsurance coverage
(a) Availability for excess losses
(b) Availability pursuant to contract, agreement, or other arrangement; payment of
premium, fee, or other charge
(c) Excess loss agreement; negotiation
(d) Submission of excess losses on portfolio basis
44
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§ 4056. Emergency implementation of flood insurance program; applicability of other
provisions of law
45
PART B--GOVERNMENT PROGRAM WITH INDUSTRY ASSISTANCE46
iii
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Table of Contents
§ 4071. Federal operation of program; determination by Director; fiscal agents; report to
Congress
46
§ 4072. Adjustment and payment of claims; judicial review; limitations; jurisdiction
PART C--GENERAL PROVISIONS
47
48
§ 4081. Services by insurance industry; contracts, agreements, or other arrangements 48
§ 4082. Use of insurance pool, companies, or other private organizations for certain
payments
(a) Authorization to enter into contracts for certain responsibilities
(b) Terms and conditions of contract
(c) Competitive bidding
(d) Findings of Director
(e) Bond; liability of certifying officers and disbursing officers
(f) Term of contract; renewals; termination
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50
50
§ 4083. Settlement of claims; arbitration
51
§ 4084. Records and audits
51
SUBCHAPTER III--COORDINATION OF FLOOD INSURANCE WITH
LAND-MANAGEMENT PROGRAMS IN FLOOD-PRONE AREAS
52
§ 4101. Identification of flood-prone areas
52
(a) Publication of information; establishment of flood-risk zones; estimates of flood-caused
loss
52
(b) Accelerated identification of flood-risk zones; authority of Director: grants, technical
assistance, transactions, and payments
52
(c) Priority in allocation of manpower and other available resources for identification and
mapping of flood hazard areas and flood-risk zones
53
(d) Plan for bringing communities with flood-risk zones into full program status
53
(e) Review of flood maps
53
(f) Updating flood maps
53
(g) Availability of flood maps
54
(h) Notification of flood map changes
54
(i) Compendia of flood map changes
54
(j) Provision of information
55
§ 4102. Criteria for land management and use
55
(a) Studies and investigations
55
(b) Extent of studies and investigations
55
(c) Development of comprehensive criteria designed to encourage adoption of adequate State
and local measures.
56
§ 4104. Flood elevation determinations
(a) Publication or notification of proposed flood elevation determinations
iv
56
56
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Table of Contents
(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
57
(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 57
(d) Administrative review of appeals by private persons; modification of proposed
determinations; decision of Director: form and distribution
58
(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
58
(f) Reimbursement of certain expenses; appropriation authorization
59
(g) Judicial review of final administrative determinations; venue; time for appeal; scope of
review; good cause for stay of final determinations
59
§ 4104a. Notice requirements
(a) Notification of special flood hazards
(b) Notification of change of servicer
(c) Notification of expiration of insurance
60
60
61
62
§ 4104b. Standard hazard determination forms
(a) Development
(b) Design and contents
(c) Required use
(d) Guarantees regarding information
(e) Reliance on previous determination
(f) Effective date
62
62
62
63
63
63
64
§ 4104c. Mitigation assistance
(a) Authority
(b) Planning assistance grants
(c) Eligibility for mitigation assistance
(d) Notification of approval and grant award
(e) Eligible mitigation activities
(f) Limitations on amount of assistance
(g) Matching requirement
(h) Oversight of mitigation plans
(i) Recapture
(j) Reports
(k) “Community” defined
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64
65
65
66
66
68
69
69
69
70
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§ 4104d. National Flood Mitigation Fund
(a) Establishment and availability
(b) Credits
(c) Investment
(d) Report
70
70
71
71
71
§ 4105. Disaster mitigation requirements; notification to flood-prone areas
72
v
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Table of Contents
(a) Initial notification
72
(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
72
(c) Subsequent notification to additional communities known to be flood prone areas
72
(d) Provisions of section 4106 applicable to flood-prone communities disqualified for flood
insurance program
73
(e) Administrative procedures; establishment; reimbursement of certain expenses;
appropriation authorization
73
§ 4106. Nonparticipation in flood insurance program
(a) Prohibition against Federal approval of financial assistance
(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
74
74
§ 4107. Consultation with local officials; scope
74
SUBCHAPTER IV--GENERAL PROVISIONS
vi
74
76
§ 4121. Definitions
76
§ 4122. Studies of other natural disasters; cooperation and consultation with other
departments and agencies
78
§ 4124. Applicability of fiscal controls
79
§ 4125. Finality of certain financial transactions
79
§ 4126. Administrative expenses
80
§ 4127. Authorization of appropriations; availability
80
§ 4128. Rules and regulations
81
§ 4129. Federal Insurance Administrator; establishment of position
82
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Cross-Reference Table
CROSS-REFERENCE TABLE
SECTIONS IN NATIONAL FLOOD INSURANCE ACT OF 1968, AS
AMENDED, AND FLOOD DISASTER PROTECTION ACT OF 1973, AS
AMENDED, TO U.S. CODE SECTIONS
Section No. in
1968 1973
Section No. in
Act
Act
42 U.S.C.
1301
§ 4001. Congressional findings and declaration of
purpose
2 § 4002. Additional Congressional findings and
declaration of purpose
3 § 4003. Additional definitions
1304
§ 4011. National flood insurance program
1305
§ 4012. Scope of program and priorities
102 § 4012a. Flood insurance purchase and compliance
requirements and escrow accounts
1306
§ 4013.
Nature and limitation of insurance coverage
1307
§ 4014.
Estimates of premium rates
1308
§ 4015.
Chargeable premium rates
1309
§ 4016.
Financing provisions
1310
§ 4017.
National Flood Insurance Fund
1311
§ 4018.
Operating costs and allowances
1312
§ 4019.
Payment of claims
1313
§ 4020.
Dissemination of flood insurance information
§ 4021.
Repealed.
1315
§ 4022.
State and local land use controls
1316
§ 4023.
Properties in violation of State and local law
1317
§ 4024.
Coordination with other programs
1318
§ 4025.
Flood insurance advisory committee
1319
§ 4026.
Expiration of program
1320
§ 4027.
Biennial report to President
1321
§ 4028.
Coastal Barrier Resources System
1322
§ 4029.
Colorado River Floodway
1330
§ 4041.
Implementation of program
1331
§ 4051.
Industry flood insurance pool
1332
§ 4052.
Agreements with flood insurance pool
1333
§ 4053.
Adjustment and payment of claims; judicial
review; limitations; jurisdiction
1334
§ 4054.
Premium equalization
1335
§ 4055.
Reinsurance coverage
Page
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5
7
8
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27
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vii
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Cross-Reference Table
Section No. in
1968 1973
Section No. in
Act
Act
42 U.S.C.
1336
§ 4056.
Emergency implementation of flood insurance
program
1340
§ 4071.
Federal operation of program
1341
§ 4072.
Adjustment and payment of claims; judicial
review; limitations; jurisdiction
1345
§ 4081.
Services by insurance industry
1346
§ 4082.
Use of insurance pool, companies, or other
private organizations for certain payments
1347
§ 4083.
Settlement of claims
1348
§ 4084.
Record keeping
1360
§ 4101.
Identification of flood-prone areas
1361
§ 4102.
Criteria for land management and use
1363
§ 4104.
Flood elevation determinations
1364
§ 4104a. Notice requirements
1365
§ 4104b. Standard hazard determination forms
1366
§ 4104c. Mitigation assistance
1367
§
National Flood Mitigation Fund
4104d.
201 § 4105.
Disaster mitigation requirements; notification
to flood-prone areas
202 § 4106.
Nonparticipation in flood insurance program
207 § 4107.
Consultation with local officials; scope
1370
§ 4121.
Definitions
1371
§ 4122.
Studies of other natural disasters
1372
§ 4123.
Advance payments
1373
§ 4124.
Applicability of fiscal controls
1374
§ 4125.
Finality of certain financial transactions
1375
§ 4126.
Administrative expenses
1376
§ 4127.
Authorization of appropriations; availability
205 § 4128.
Rules and regulations
1105*
§ 4129.
Federal Insurance Administrator;
establishment of position
*
Page
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55
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60
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73
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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.
viii
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1301
[42 U.S.C. § 4001]
UNITED STATES CODE
TITLE 42--THE PUBLIC HEALTH AND WELFARE
CHAPTER 50--NATIONAL FLOOD INSURANCE
{Sec. 13011}
§ 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.
1
Exect as noted otherwise, marginal section numbers are references to title XIII of Pub. L. 90448, Aug. 1, 1968, 82 Stat. 572, as amended, known as the National Flood Insurance Act of
1968,
1
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1301
[42 U.S.C. § 4001]
(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 programshould 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 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; develop
ment of proposed future construction; assistance of lending and
credit institutions; relation of Federal assistance to all floodrelated 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.
2
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 2
[42 U.S.C. § 4002]
(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.
{Sec. 22}
§ 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;
2
Sec. 2 of the Flood Disaster Protection Act of 1973, as amended, Pub. L. 93-234, Dec. 31,
1973, 87 Stat. 975, as amended.
3
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 2
[42 U.S.C. § 4002]
(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 plain ordinances with effective enforcement
provisions 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.
4
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 3
[42 U.S.C. § 4003]
{Sec. 33}
§ 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 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;
(6) “Director” means the Director of the Federal Emergency
Management Agency
3
Of the Flood Disaster Protection Act of 1973, as amended.
5
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 3
[42 U.S.C. § 4003]
(7) “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;
(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.
6
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1304
[42 U.S.C. § 4011]
UNITED STATES CODE
TITLE 42--THE PUBLIC HEALTH AND WELFARE
CHAPTER 50--NATIONAL FLOOD INSURANCE
SUBCHAPTER I--THE NATIONAL FLOOD INSURANCE PROGRAM
{Sec. 1304}
§ 4011. Authorization to establish and carry out program
(a) Authorization and establishment
To carry out the purposes of this chapter, the Director 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 shall enable the purchase of insurance to cover the cost
of compliance with land use and control measures established under section
4102 of this title for-
(1) properties that are repetitive loss structures;
(2) properties that 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
(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 compliance with the land use
and control measures.
7
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1304
[42 U.S.C. § 4011]
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 [42 U.S.C. § 4041 et seq.].
{Sec. 1305}
§ 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,
8
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1305
[42 U.S.C. § 4012]
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.
9
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 102
[42 U.S.C. § 4012a]
{Sec. 1024}
§ 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 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
4
10
Of the Flood Disaster Protection Act of 1973, as amended.
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 102
[42 U.S.C. § 4012a]
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
regulationsnecessary 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).
11
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 102
[42 U.S.C. § 4012a]
(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, 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 103-3255 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--
5
The Reigle Community Development and Regulatory Improvement Act of 1994, enacted
September 23, 1994, of which Title V is the National Flood Insurance Reform Act of 1994.
12
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 102
[42 U.S.C. § 4012a]
(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).
(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].
13
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 102
[42 U.S.C. § 4012a]
(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.
14
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 102
[42 U.S.C. § 4012a]
(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.
(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 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 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.
15
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 102
[42 U.S.C. § 4012a]
(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 Office of Federal
Housing Enterprise Oversight of the Department of Housing and Urban
Development 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 shall assess a civil 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.
16
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 102
[42 U.S.C. § 4012a]
(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
17
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 102
[42 U.S.C. § 4012a]
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 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:
18
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1306
[42 U.S.C. § 4013]
(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)6
[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 [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.
6
So in original. Probably should be followed by “of the National Flood Insurance
Act of 1968”.
19
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1306
[42 U.S.C. § 4013]
{Sec. 1306}
§ 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--
20
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1306
[42 U.S.C. § 4013]
(i) $35,000 aggregate liability for any single-family dwelling, and
$100,000 for any residential structurecontaining 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 propertieswhich are owned or leased and
operated by small 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
21
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1306
[42 U.S.C. § 4013]
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.
(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 30-day 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
22
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1306
[42 U.S.C. § 4013]
(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.
{Sec. 1307}
§ 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,
23
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1307
[42 U.S.C. § 4014]
would be required in order to make such insurance available on an actuarial
basis for any 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
24
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1307
[42 U.S.C. § 4014]
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 Director
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 construc
tion 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 will afford flood protection for the onehundred 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 Director 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 100year 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
25
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1307
[42 U.S.C. § 4014]
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 Director 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 existing 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. The Director 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.
26
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1308
[42 U.S.C. § 4015]
{Sec. 1308}
§ 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,
(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
27
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1308
[42 U.S.C. § 4015]
(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) Rate with respect to property the construction or substantial
improvement of which has been started after December 31, 1974,
or effective date of initial rate map published for area in which
property is located, whichever is later
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.
(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
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 exceeding 10 percent of the
average of the risk premium rates for properties within the risk
classification upon the commencement of such 12-month period.
28
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1310
[42 U.S.C. § 4017]
{Sec. 1309}
§ 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 Housing and Home Finance
Administrator 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
$1,000,000,000. 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.
{Sec. 1310}
§ 4017. National Flood Insurance Fund
(a) Establishment; availability
To carry out the flood insurance program authorized by this chapter, the
Director shall establish 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;
29
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1310
[42 U.S.C. § 4017]
(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; and
(8) 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.
(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;
30
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1310
[42 U.S.C. § 4017]
(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).
(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,
31
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1310
[42 U.S.C. § 4017]
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, United States Code, 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.
{Sec. 1311}
§ 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 companies and
other insurers, insurance agents and brokers, and insurance adjustment
organizations participating on other than a risk-sharing 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 [42 U.S.C. § 4041 et seq.], 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--
32
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1313
(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.
{Sec. 1312}
§ 4019. Payment of claims
The Director is authorized to prescribe regulations establishing the
general method or methods 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.
{Sec. 1313}
§ 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.
33
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1315
§ 4021. Repealed
Act of Dec. 31, 1973, P. L. 93-234, Title II, §203, 87 Stat. 982.
{Sec. 1315}
§ 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.
34
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1315
[42 U.S.C. § 4023]
(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 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--
35
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1315
[42 U.S.C. § 4022]
(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 thereafter, 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.
36
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1318
{Sec. 1316}
§ 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 flood-prone areas.
{Sec. 1317}
§ 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 insurance program authorized
under this chapter are mutually consistent.
{Sec. 1318}
§ 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, United States Code, 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--
37
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1318
(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, United States Code, for persons in the
Government service employed intermittently.
{Sec. 1319}
§ 4026. Expiration of program
No new contract for flood insurance under this chapter shall be entered
into after September 30, 1997.
{Sec. 1320}
§ 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
38
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1322
[42 U.S.C. § 4029]
flood insurance program observed through implementation of requirements
under the Riegle Community Development and Regulatory Improvement
Act of 1994.
{Sec. 1321}
§ 4028. 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
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 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.
{Sec. 1322}
§ 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, United States Code, 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
39
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1322
[42 U.S.C. § 4029]
Floodway maps required by section 1600c(b)(2) 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, United States
Code. 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) 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.
40
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1331
[42 U.S.C. § 4051]
UNITED STATES CODE
TITLE 42--THE PUBLIC HEALTH AND WELFARE
CHAPTER 50--NATIONAL FLOOD INSURANCE
SUBCHAPTER II--ORGANIZATION AND ADMINISTRATION OF
FLOOD INSURANCE PROGRAM
{Sec. 1330}
§ 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 [42
U.S.C. § 4011 et seq.]in accordance with the provisions of part A of this
subchapter [42 U.S.C. § 4051 et seq.]and, if a determination is made by
him under section 4071 of this title, under part B of this subchapter [42
U.S.C. § 4071 et seq.].
PART A--INDUSTRY PROGRAM WITH FEDERAL FINANCIAL
ASSISTANCE
{Sec. 1331}
§ 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) to form, associate, or otherwise join
together in a pool
(1) in order to provide the flood insurance coverage authorized under
chapter I [42 U.S.C. § 4011 et seq.], 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
41
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1331
[42 U.S.C. § 4051]
under this title, 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 [42 USCS §4051 et seq.], and to assure that the
objectives of this title 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.
{Sec. 1332}
§ 4052. Agreements with flood insurance pool
(a) Authorization
The Director is authorized to enter into such agreements with the pool
formed or otherwise created under this part [42 U.S.C. § 4051 et seq.] as
he deems necessary to carry out the purposes of this chapter [42 U.S.C.
§ 4001 et seq.],.
(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 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),
42
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1333
[42 U.S.C. § 4053]
(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 risksharing basis, to the maximum extent practicable.
{Sec. 1333}
§ 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
43
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1333
[42 U.S.C. § 4053]
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.
{Sec. 1334}
§ 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.
{Sec. 1335}
§ 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.
44
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1341
[42 U.S.C. § 4072]
(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.
{Sec. 1336}
§ 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 [42 U.S.C. § 4011 et seq.], during the period
ending September 30, 1996, 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--
45
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1336
[42 U.S.C. § 4056]
(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.
Part B--Government Program With Industry Assistance
{Sec. 1340}
§ 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 [42 U.S.C. § 4051 et seq.] 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 [42 U.S.C. § 4011 et seq.] 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 of the United States Code) 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).
46
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1341
[42 U.S.C. § 4072]
(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.
{Sec. 1341}
§ 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
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.
47
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1345
Part C--General Provisions
{Sec. 1345}
§ 4081. Services by insurance industry; contracts, agreements, or
other arrangements
(a) In administering the flood insurance program under this subchapter [42
U.S.C. § 4041 et seq.], 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 5 of title 41, United States
Code, 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 Director 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 Director of the
Federal Emergency Management Agency may not hold harmless or
indemnify an agent or broker for his or her error or omission.
48
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1346
[42 U.S.C. § 4082]
{Sec. 1346}
§ 4082. Use of insurance pool, companies, or other private
organizations for certain payments
(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 5 of title 41, United States Code, or
any other provision of law requiring competitive bidding.
49
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1346
[42 U.S.C. § 4082]
(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.
(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.
50
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1348
{Sec. 1347}
§ 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 [42 U.S.C. § 4011 et seq.],
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.
(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.
{Sec. 1348}
§ 4084. Records and audits
(a) The flood insurance pool formed or otherwise created under part A of
this subchapter [42 U.S.C. § 4051 et seq.], 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
[42 U.S.C. § 4071 et seq.] 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.
51
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1360
[42 U.S.C. § 4101]
UNITED STATES CODE
TITLE 42--THE PUBLIC HEALTH AND WELFARE
CHAPTER 50--NATIONAL FLOOD INSURANCE
SUBCHAPTER III--COORDINATION OF FLOOD INSURANCE
WITH LAND-MANAGEMENT PROGRAMS IN FLOOD-PRONE
AREAS
{Sec. 1360}
§ 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,
52
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section1360
[42 U.S.C. § 4101]
the Director is authorized, without regard to subsections (a) and (b) of
section 3324 of title 31, United States Code, and section 5 of title 41,
United States Code, 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 floodrisk 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 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 flood-risk 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-53
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1360
[42 U.S.C. § 4101]
(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 [42 U.S.C.
§ 4001 et seq.], 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 Register. 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
54
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section1361
[42 U.S.C. § 4101]
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.
{Sec. 1361}
§ 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 flood-prone 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.
55
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1361
[42 U.S.C. § 4102]
(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 floodprone areas,
and he shall work closely with and provide any necessary technical
assistance to State, interstate, and local governmental agencies, to
encourage the application of such criteria and the adoption and
enforcement of such measures.
§ 4103. Repealed
{Sec. 1363}
§ 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
56
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1363
[42 U.S.C. § 4104]
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 government. 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.
57
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1363
[42 U.S.C. § 4104]
(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.
(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
58
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1363
[42 U.S.C. § 4104]
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 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, United States Code. During the pendency
of any such litigation, all final determinations of the Director shall be
effective for the purposes of this chapter [42 U.S.C. § 4001 et seq.] unless
stayed by the court for good cause shown.
59
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1364
[42 U.S.C. § 4104a]
{Sec. 1364}
§ 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 [42 U.S.C. § 4001 et seq.] 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 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 [42 U.S.C. § 4001 et seq.] 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
60
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1364
[42 U.S.C. § 4104a]
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.
61
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1364
[42 U.S.C. § 4104a]
(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
[42 U.S.C. § 4001 et seq.], 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.
{Sec. 1365}
§ 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 [42 U.S.C. § 4001
et seq.] 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 [42 U.S.C. § 4001 et seq.].
(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)
62
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1365
[42 U.S.C. § 4104b]
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 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
63
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1365
[42 U.S.C. § 4104b]
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.
{Sec. 1366}
§ 4104c. Mitigation assistance
(a) Authority
The Director shall carry out a program to provide financial assistance to
States and communities, 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
[42 U.S.C. § 4001 et seq.]. 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.
64
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1366
[42 U.S.C. § 4104c]
(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 $1,500,000 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
65
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1366
[42 U.S.C. § 4104c]
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 [42 U.S.C.
§ 4001 et seq.]. 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.
(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 costeffective and only such plans that propose activities that are cost-beneficial
to the National Flood Mitigation Fund.
66
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1366
[42 U.S.C. § 4104c]
(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.
(4) Priority
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.
(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
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;
67
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1366
[42 U.S.C. § 4104c]
(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.
68
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1366
[42 U.S.C. § 4104c]
(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 non-Federal 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) 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.
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ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1366
(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-
(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).
{Sec. 1367}
§ 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.
70
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1367
(b) Credits
The National Flood Mitigation Fund shall be credited with-
(1) 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;
(2) any penalties collected under section 4012a(f) of this title; and
(3) any amounts recaptured under section 4104c(i) of this title.
(c) 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.
(d) 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.
71
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 201
[42 U.S.C. § 4105]
{Sec. 2017}
§ 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 substantial 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
7
72
Of the Flood Disaster Protection Act of 1973, as amended.
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 201
[42 U.S.C. § 4105]
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 flood-prone 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 floodprone 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.
{Sec. 2028}
8
Of the Flood Disaster Protection Act of 1973, as amended.
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ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 202
§ 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.
{Sec. 2079}
§ 4107. Consultation with local officials; scope
In carrying out his responsibilities under the provisions of this title and
the National Flood Insurance Act of 1968 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
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
9
74
Of the Flood Disaster Protection Act of 1973, as amended.
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 207
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.
75
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1370
[42 U.S.C. § 4121]
UNITED STATES CODE
TITLE 42--THE PUBLIC HEALTH AND WELFARE
CHAPTER 50--NATIONAL FLOOD INSURANCE
SUBCHAPTER IV--GENERAL PROVISIONS
{Sec. 1370}
§ 4121. Definitions
(a) As used in this chapter [42 U.S.C. § 4001 et seq.] -(1) the term “flood” shall have such meaning as may be prescribed in
regulations of the Director, 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 Director of the Federal Emergency
Management Agency;
76
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1370
[42 U.S.C. § 4121]
(7) the term “repetitive loss structure” means a structure covered by a
contract for flood insurance under this chapter [42 U.S.C. § 4001 et seq.]
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;
(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 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; and
(14) the term “servicer” means the person responsible for receiving any
scheduled periodic payments from a borrower pursuant to the terms of a
77
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1370
[42 U.S.C. § 4121]
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 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 [42 U.S.C. § 4001 et seq.] 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 [42 U.S.C. § 4001 et
seq.] 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.
{Sec. 1371}
§ 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
78
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1374
[42 U.S.C. § 4125]
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.
{Sec. 1372}
§ 4123. Advance payments
Any payments under this title may be made (after necessary adjustment on
account of 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.
{Sec. 1373}
§ 4124. Applicability of fiscal controls
The provisions of chapter 91 of title 31, United States Code, shall apply
to the program authorized under this chapter [42 U.S.C. § 4001 et seq.] to
the same extent as they apply to wholly owned Government corporations.
{Sec. 1374}
§ 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 [42 U.S.C. § 4001 et seq.], and
79
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1374
(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.
{Sec. 1375}
§ 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 [42 U.S.C. § 4001 et seq.] 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.
{Sec. 1376}
§ 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 [42 U.S.C. § 4001 et
seq.], 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.
80
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Section 1105
[42 U.S.C. § 4129]
(b) All such funds shall be available without fiscal year limitation.
(c) There are authorized to be appropriated 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. Any amount appropriated under this
subsection shall remain available until expended.
{Sec. 20510}
§ 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.
10
Of the Flood Disaster Protection Act of 1973, as amended.
81
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Section 1105
[42 U.S.C. § 4129]
{Sec. 110511}
§ 4129. Federal Insurance Administrator; establishment of position
There is hereby established in the Federal Emergency Management
Agency the position of Federal Insurance Administrator.
11
Enacted as part of the Urban Property Protection and Reinsurance Act of 1968 and also as
part of the Housing and Urband Development Act of 1968, and not as part of the National Flood
Insurance Act of 1968.
82
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Index
INDEX
1
100 year frequency flood ...........................................................................................................25
5
50 Percent of value ................................................................................................................ 7, 35
A
Actuarial basis..................................................................................................................... 24, 28
Adjusters..........................................................................See Insurance adjustment organizations
Adjustment of claims............................................................................................... 34, 43, 44, 48
Expenses ......................................................................................................................... 32, 33
Administrative expenses.......................................................................................... 23, 28–30, 81
Administrative procedures.........................................................................................................74
Administrative review ................................................................................................... 59–61, 73
Advisory committee....................................................................................................... 20, 27, 38
Agents and brokers.................................................................... See Insurance agents and brokers
Agreement or other arrangement..............................................................................See Contracts
Agricultural commodities
Definition..............................................................................................................................36
Agricultural properties ....................................................................... See Properties, Agricultural
Agricultural structure ......................................................................... See Properties, Agricultural
Definition..............................................................................................................................36
Alaska.......................................................................................................................................21
Allowances..................................................................................................... See Operating costs
Appropriations ...................................................................................................31–32, 67, 72, 81
Authorization of .................................................................................................. 60, 74, 81–82
AR zone ....................................................................................................................................26
Arbitration ................................................................................................................................52
Arrangement ............................................................................................................See Contracts
Atchafalaya Basin Levee System ...............................................................................................25
Attorney fees .............................................................................................................................49
Audits ................................................................................................................................. 50, 52
Avoyelles Parish, Louisiana.......................................................................................................25
B
Base flood elevation ..................................................................................................................27
Borrowing authority ............................................................................................................ 29–31
Brokers ..................................................................................... See Insurance agents and brokers
Building ........................................................................................................................ 14, 70, 78
Building or mobile home.................................................................... 5, 10–11, 14–15, 19, 62–65
Business properties.................................................................................. See Properties, Business
83
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Index
C
C zone.......................................................................................................................................26
Chargeable premium rates................................................................................ See Premium rates
Church properties...................................................................................... See Properties, Church
Coastal areas .............................................................................................................................53
Coastal Barrier Resource System ...............................................................................................40
Coastal zone management .........................................................................................................56
Colorado River Floodway .................................................................................................... 40–41
Commissions....................................................................................................................... 24, 33
Community .................... 4, 25–26, 36, 54–55, 58–60, 64–76. See also Participating communities
Definition.......................................................................................................................... 5, 71
Community rating system..........................................................................................................36
Compendia of flood map changes ........................................................................................ 19, 56
Congress .................................................................................. 1–3, 24, 32, 37, 39, 48, 54, 71–72
House Committee on Banking, Finance and Urban Affairs ....................................................29
Senate Committee on Banking, Housing, and Urban Affairs..................................................29
Contractors................................................................................................................................49
Contracts.........................................................................17, 22, 39, 46, 49–54, 56, 63, 65–67, 78
Cost of compliance
Insurance to cover ...................................................................................................................7
Surcharge ................................................................................................................................8
Cost-effectiveness...................................................................................................... 7, 37, 68–69
D
Deductibles ...............................................................................................................................20
Definitions ........................................................................................... 5–6, 14, 17, 33, 36, 77–79
Development ....................................................................................................2–3, 10, 27, 38, 57
Director..................................................................................................................... 6–15, 20–82
Definition.......................................................................................................................... 6, 77
Disaster relief.............................................................................................................. 1, 4, 36, 75
District of Columbia..................................................................................................................77
Dwelling
Multi-unit..............................................................................................................................21
Single-family.........................................................................................................................21
E
Emergency program ..................................................................................................................46
Enterprise
Definition..............................................................................................................................17
Erosion......................................................................................................................................36
Error or omission ......................................................................................................................49
Escrow ................................................................................................................................ 13–16
Estimated premium rates .................................................................................. See Premium rates
Evangeline Parish, Louisiana ....................................................................................................25
Excess losses ....................................................................................................... See Reinsurance
Expiration of program ...............................................................................................................39
Extending loans ...................................... See Loans, Making, increasing, extending, or renewing
84
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Index
F
Federal agencies...................................................................................... See also Federal officers
Army Corps of Engineers ......................................................................................................54
Comptroller of the Currency .............................................................................................. 5, 78
Department of Agriculture.....................................................................................................24
Department of Commerce......................................................................................................24
Department of Housing and Urban Development ...................................................................16
Department of the Army........................................................................................................24
Department of the Interior .....................................................................................................24
Department of the Treasury ...................................................................................................30
Farm Credit Administration ........................................................................................ 5, 12, 78
Federal Deposit Insurance Corporation.............................................................................. 5, 78
Federal Home Loan Mortgage Corporation...................................................... 5, 11, 16, 17, 64
Federal National Mortgage Association ..................................................................... 11, 16, 64
Federal Reserve System ..................................................................................................... 5, 78
Financial Institutions Examination Council......................................................... 10, 13, 61–62
National Credit Union Administration............................................................................... 5, 78
National Oceanic and Atmospheric Administration ...............................................................54
Office of Thrift Supervision............................................................................................... 5, 78
Soil Conservation Service......................................................................................................54
Tennessee Valley Authority ....................................................................................... 24, 53–54
United States Geological Survey ............................................................................................54
Federal agency .............................................................................................................. 26, 36, 82
Definition................................................................................................................................5
Federal agency lender....................................................................... 11, 13, 41, 55–56, 61–64, 75
Definition.......................................................................................................................... 6, 78
Federal departments or agencies.........................................................................24, 53–54, 56, 80
Federal Emergency Management Agency .................6–7, 26–27, 49, 50, 77, 83. See also Director
Federal entity for lending regulation............................................. 6, 10, 13, 16, 18, 61–62, 75, 78
Definition.......................................................................................................................... 5, 78
Federal financial assistance .... See Financial assistance, Mitigation assistance, Planning assitance
Federal instrumentalities .............................................................................................................4
Federal officer or agency ..................................................................................................... 10, 75
Federal officers...................................................................................... See also Federal agencies
Comptroller General..............................................................................................................52
Housing and Home Finance Administrator ............................................................................29
Secretary of Agriculture................................................................................................... 53–54
Secretary of Commerce.................................................................................................... 53–54
Secretary of Defense ..............................................................................................................54
Secretary of Interior...............................................................................................................53
Secretary of the Army............................................................................................................53
Secretary of the Interior ................................................................................................... 41, 54
Secretary of the Treasury .......................................................................................................29
Under Secretary of Commerce for Oceans and Atmosphere ...................................................56
Federal programs ........................................................................................................................4
Federal Register ............................................................................................................ 55, 58, 60
Federally supervised institutions........................ 4–6, 10, 13, 16–17, 40–41, 61–62, 64, 75, 78, 82
Federally supervised, regulated, or insured agencies or institutionsSee Federally supervised institutions
Fees.................................................................................13–14, 18–19, 24, 28, 31, 33, 46, 60, 74
85
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Index
Attorney ................................................................................................................................49
Financial assistance..........................................................................................3–4, 43, 65–67, 82
Definition................................................................................................................................5
Financial assistance for acquisition or construction purposes ............................................... 10, 75
Definition................................................................................................................................5
Financial participation .......................................................................................................... 8, 46
Financial responsibility .............................................................................................................51
Fiscal year limitation..........................................................................................30, 32, 66, 72, 82
Flood
Definition........................................................................................................................ 77, 79
One-hundred year frequency..................................................................................................25
Flood elevations .................................................................................................................... 9, 58
Flood forecasting................................................................................................................. 27, 38
Flood hazard information ............................................................See Flood insurance information
Flood insurance information......................................................... 4, 34, 53–56, 62, 64–65, 73–76
Flood insurance program...................... 2–4, 7–9, 18, 23–25, 29–39, 42–52, 55–56, 62–64, 71, 73
Emergency implementation ...................................................................................................46
Expiration of authority ..........................................................................................................39
Flood insurance purchase requirement...................................................See Purchase requirement
Flood Insurance Rate Maps ........................................................................................... 26, 28, 55
Flood plain areas ..................................................................................................... 19, 23, 54, 55
Flood plain functions (natural and beneficial)...................................................................... 36–37
Definition..............................................................................................................................78
Flood plain management ......................................................................................2, 24–30, 36, 81
Flood plain ordinances .......................................................................................................... 4, 57
Flood protection system....................................................................................................... 25–27
Floodplain.............................................................................................................See Flood plain
Flood-prone areas..................................................................................... 4, 38, 53, 56–57, 73, 76
Identification of .....................................................................................................................53
Flood-prone communities ..........................................................................................................74
Flood-proofing .............................................................................................................. 27, 35, 68
Flood-risk zones ............................................................................................................ 19, 23, 64
Identification of ............................................................................................................... 53–55
Floodway............................................................................................................................. 40–41
Colorado River ............................................................................ See Colorado River Floodway
Floodways ............................................................................................................................. 9, 57
G
Gross negligence .......................................................................................................................51
Guam ........................................................................................................................................21
H
Hawaii.......................................................................................................................................21
Hold harmless ..................................................................................................See Indemification
Homebuilding industry ..............................................................................................................38
I
Improved real estate ................................................................6, 10–11, 13–14, 18–19, 61–65, 78
Definition.......................................................................................................................... 6, 78
Increasing loans ...................................... See Loans, Making, increasing, extending, or renewing
86
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Index
Indemnification..................................................................................................................... 4, 49
Industry flood insurance pool ....................................................................... 20, 27, 42–45, 50–52
Information .................................................................................See Flood insurance information
Initial purchase of flood insurance.............................................................................................23
Insurability
Terms and conditions ............................................................................................................20
Insurance adjustment organization
Definition..............................................................................................................................77
Insurance adjustment organizations......................................................................8, 33, 44, 47–49
Insurance agent or broker
Definition..............................................................................................................................77
Insurance agents and brokers............................................................................... 8, 33, 44, 47, 49
Insurance authorities ........................................................................................................... 20, 27
Insurance companies ................................................................................................. 8, 33, 42–52
Insurance company
Definition..............................................................................................................................77
Insurance industry..........................................................................................2, 33, 38, 42, 47–49
Intent to defraud........................................................................................................................51
Interest................................................................................................................................ 30–31
Interest-bearing obligations .......................................................................................................72
Investment .................................................................................................................... 31–32, 72
J
Jurisdiction of U.S. district court ................................................................................... 45, 48, 60
L
Land use.................................................................................................................... 2–3, 7–9, 58
Land use and control measures.................................................................. See Land use measures
Land use authority.....................................................................................................................68
Land use measures .................................................................................................... 9, 27, 35, 60
Lender
Definition.......................................................................................................................... 6, 78
Lending institution....................................................................... 5, 10, 13, 16–18, 38, 41, 75, 78
Lending institutions ............................................................................................................ 61–64
Liabilities ..................................................................................................................................31
Liability .................................................................................................................. 17, 21, 51, 65
Loans ........................................................................................3–6, 10–19, 23, 40, 41, 61–65, 78
Making, increasing, extending, or renewing ...................................................10–19, 61–65, 75
Property securing............................. See Building, Building or mobile home, Personal property
Small.....................................................................................................................................12
Local government officials .................................................................................................. 59, 76
Local governments ....................................................................................................................58
M
Mapping.......................................................................................................24, 28, 30, 54–61, 65
Maps .........................................................................................................................................64
COBRA areas........................................................................................................................40
Colorado Floodway................................................................................................................40
Maximum limit of coverage................................................................................................. 10–11
Mitigation assistance..................................................................................................... 37, 65–72
87
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Index
Mobile home ...................................................See Building or mobile home, Improved real estate
Mudslide ..................................................................................................................... 3–4, 53, 79
Multiple occasions
Properties sustaining flood damage on.....................................................................................7
N
National Flood Insurance Fund................................................................. 7, 28–34, 55–56, 72, 81
National Flood Insurance Program ...................................................See Flood insurance program
National Flood Mitigation Fund ...................................................................17, 65, 66, 67, 71–72
Natural hazards .........................................................................................................................54
New construction........................................................................................................... 26, 40–41
Non-Federal funds
Definition..............................................................................................................................70
Notice requirements ..................................................................................................................16
Notification
Approval or disapproval of mitigation plan............................................................................67
Availability of Federal disaster relief .....................................................................................75
Change of servicer........................................................................................................... 62–63
Change to flood insurance map panels...................................................................................55
Disallowance of claim ..................................................................................................... 44, 48
Expiration of insurance .........................................................................................................63
Flood elevation determinations ........................................................................................ 58–60
Identification as flood-prone community.................................................................... 73–74, 76
To borrower of lack of flood insurance coverage ....................................................................14
To purchaser of special flood hazards .............................................................................. 61–62
O
Operating allowances
Definition..............................................................................................................................33
Operating costs........................................................................................................ 23, 32, 44, 49
Definition..............................................................................................................................33
Schedule................................................................................................................................33
Other insurer
Definition..............................................................................................................................77
Other insurers ........................................................................................ See Insurance companies
Otherwise protected area ...........................................................................................................40
P
Pacific Islands, Trust Territory of ..............................................................................................77
Participating communities................................................................................................... 56, 64
Penalties.............................................................................................................................. 16–18
Person
Definition..............................................................................................................................77
Personal property ...................................................................................................... 7, 10–11, 14
Pool........................................................................................... See Industry flood insurance pool
Premium equalization payments .................................................................................... 44–45, 81
Premium rates
Chargeable ......................................................................................... 20–21, 27–28, 34–36, 45
Credits for risk reduction measures........................................................................................37
Estimated ................................................................................................. 22, 27–28, 34–36, 47
88
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Index
Flood protection system's effect on.........................................................................................25
Limitation on annual increase................................................................................................29
Louisiana parishes.................................................................................................................25
Risk................................................................................................................................. 21, 23
Premium taxes...........................................................................................................................24
Premiums...........................................................................................................20, 31–32, 43, 46
Coverage placed by lender .....................................................................................................14
Escrow of .................................................................................................................... 6, 13, 79
President ................................................................................................................... 2, 29, 39, 70
Priority in making flood insurance available................................................................................8
Private insurance industry ...........................................................................................................2
Properties
Agricultural....................................................................................................................... 9, 35
Business ............................................................................................................................ 8, 21
Church .............................................................................................................................. 8, 21
Nonresidential .......................................................................................................................22
Other.......................................................................................................................................9
Private nonprofit organizations, occupied by............................................................................9
Public ....................................................................................................................................68
Residential ........................................................................................................................ 8, 21
State and local agencies, owned by ........................................................................................12
State and local governments and agencies, owned by ...............................................................9
Properties declared in violation of State or local laws ................................................................37
Properties eligible for flood insurance under section 4012 ....................................... 20, 21, 24, 27
Properties impacted by disaccreditation of flood protection system.............................................26
Properties in special flood hazard areas .....................................................................................68
Puerto Rico................................................................................................................................77
Purchase requirement ...........................................................................................4, 10–19, 62–63
Exceptions.............................................................................................................................12
R
Rapides Parish, Louisiana .........................................................................................................25
Real estate............................................................................................... See Improved real estate
Regulated lending institution.....................................................................See Lending institution
Definition.......................................................................................................................... 6, 78
Regulations ............................................6, 9–22, 26–27, 34, 37, 41, 57, 61–65, 69, 75, 77, 79, 82
Reinsurance................................................................................................................... 31, 45–46
Claims....................................................................................................................... 30, 44, 81
Remedial actions
Lenders' noncompliance ........................................................................................................18
Renewal
Insurance......................................................................................................................... 22, 40
Loan.................................................... See Loans, Making, increasing, extending, or renewing
Repetitive loss structure................................................................................................... 7, 35, 68
Definition..............................................................................................................................78
Reports............................................................................................. 29–31, 37, 39, 48, 60, 71–72
Reserves for anticipated losses...................................................................................................28
Residential improved real estate
Definition..............................................................................................................................14
Residential properties ...........................................................................See Properties, Residential
89
ALL-HAZARD AUTHORITIES of the
Federal Emergency Management Agency
Index
Residential structure.............................................................................See Properties, Residential
Risk premium rates .......................................................................................... See Premium rates
Risk sharing .................................................................................................................... 8, 33, 46
Rules and regulations ........................................................................................... See Regulations
S
Saint Landry Parish, Louisiana..................................................................................................25
Scope of review .........................................................................................................................60
Self-insurance ...........................................................................................................................12
Servicer..............................................................................................................13–14, 18, 61–63
Definition.......................................................................................................................... 6, 79
Settlement of claims ..................................................................................................................52
Single-family dwelling ...................................................................... See Dwelling, Single-family
Small business concerns ........................................................................................................ 8, 21
Special flood hazard area........................4–5, 10–11, 14–15, 19, 26, 53, 58, 61–65, 68, 71, 73–75
State
Definition..............................................................................................................................77
State or local governments.............................................................. 2, 9, 34–38, 53–57, 68, 77, 80
State or local laws ......................................................................................................... 17, 37, 57
States ............................................................................4, 9, 12, 20–21, 25, 27, 54, 56, 65, 66, 68
Statute of limitations .................................................................................................................18
Statutes cross-referenced
16 U.S.C. § 3503 ...................................................................................................................40
31 U.S.C. § 3324 ...................................................................................................................54
31 U.S.C. §§ 9103, 9104 .......................................................................................................32
31 U.S.C., chapter 91 ............................................................................................................80
41 U.S.C. § 5............................................................................................................. 49, 51, 54
42 U.S.C. § 2414 ...................................................................................................................31
43 U.S.C. § 1600c ........................................................................................................... 40–41
5 U.S.C. § 105.......................................................................................................................47
5 U.S.C. § 553.......................................................................................................................41
5 U.S.C. § 5703.....................................................................................................................39
5 U.S.C., chapter 7 ................................................................................................................60
Federal Advisory Committee Act [5 U.S.C. App.]............................................................ 38, 49
Federal Financial Institutions Examination Council Act of 1974 [12 U.S.C. § 3301 et seq.] ..10
Real Estate Settlement Procedures Act of 1974 [12 U.S.C. § 2609]........................................13
Riegle Community Development and Regulatory Improvement Act of 1994 .................... 30, 39
Robert T. Stafford Disaster Relief and Emergency Assistance Act [42 U.S.C. § 5121 et seq.]5, 70
Structures................................................................................................................See Properties
Studies ........................................................................................2–3, 8, 23–25, 56–57, 76, 79–82
Substantial damage ......................................................................68. See also 50 Percent of value
Substantial improvements............................................................................ See New construction
Surety bond ...............................................................................................................................51
T
Technical assistance ................................................................................................ 35, 54, 57, 69
Technical data......................................................................................................... 55, 59, 73, 76
Technical information ........................................................................................................... 9, 15
Technically feasible...................................................................................................................68
Terms and conditions ................................................................... 1, 20, 27, 42, 43, 45–46, 49, 50
90
The National Flood Insurance Act of 1968, as amended, and
The Flood Disaster Protection Act of 1973, as amended,42 U.S.C. 4001 et. seq.
Index
Territories and possessions ........................................................................................................77
Travel expenses.........................................................................................................................39
Trust Territory of the Pacific Islands .........................................................................................77
U
United States ....................................................................................................... 7, 32, 51, 53, 72
Definition..............................................................................................................................77
United States district court ............................................................................................ 45, 48, 60
V
Violations
Pattern or practice .................................................................................................................16
Virgin Islands ...........................................................................................................................21
Z
Zone AR....................................................................................................................................26
Zone C ......................................................................................................................................26
91
| File Type | application/pdf |
| File Title | National Flood Insurance Act of 1968 |
| Author | Unknown |
| File Modified | 2020-07-27 |
| File Created | 0000-01-01 |