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pdf§ 3938
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Page 5754
(Pub. L. 90–448, title IX, § 907, Aug. 1, 1968, 82
Stat. 549.)
(Pub. L. 90–448, title IX, § 909, Aug. 1, 1968, 82
Stat. 550.)
Editorial Notes
§ 3940. Reservation of right to repeal, alter, or
amend chapter
REFERENCES IN TEXT
The District of Columbia Uniform Limited Partnership Act, referred to in subsecs. (a) and (h), is Pub. L.
87–716, Sept. 28, 1962, 76 Stat. 655, as amended, which is
not classified to the Code.
The District of Columbia Uniform Partnership Act,
referred to in subsec. (b), is Pub. L. 87–709, Sept. 27,
1962, 76 Stat. 636, as amended, which is not classified to
the Code.
§ 3938. Annual report of corporation; audit of accounts
(a)(1) The corporation shall submit an annual
report to the President for transmittal to the
Congress within six months after the end of its
fiscal year. The report shall include a comprehensive and detailed report of the operations,
activities, and financial condition of the corporation and the partnership under this chapter.
(2) The report shall contain a description of
the
activities
undertaken
under
section
3936(a)(4) of this title, and shall specify, as a percentage of equity and in dollars, the extent of
the corporation’s and the partnership’s investment in housing for the benefit of families and
individuals of low or moderate income, the extent of the corporation’s and the partnership’s
investment in other housing, and the extent of
the corporation’s and the partnership’s activities which are undertaken under section
3936(a)(4) of this title.
(b) The accounts of the corporation and of the
partnership shall be audited annually in accordance with generally accepted auditing standards
by independent certified public accountants or
independent licensed public accountants certified or licensed by a regulatory authority of a
State or other political subdivision of the
United States.
(Pub. L. 90–448, title IX, § 908, Aug. 1, 1968, 82
Stat. 550; Pub. L. 98–479, title I, § 104(c)(3), Oct.
17, 1984, 98 Stat. 2225.)
Editorial Notes
The right to repeal, alter, or amend this chapter at any time is expressly reserved.
(Pub. L. 90–448, title IX, § 910, Aug. 1, 1968, 82
Stat. 550.)
§ 3941. State or local taxation or regulation; access to judicial process
Nothing contained in this chapter shall preclude a State or other local jurisdiction from
imposing, in accordance with the laws of such
State or other local jurisdiction, any valid nondiscriminatory tax, obligation, or regulation on
the partnership as a taxable and or legal entity,
but no limited partner of the partnership not
otherwise subject to taxation or regulation by
or judicial process of a State or other local jurisdiction shall be subject to taxation or regulation by or subject to or denied access to judicial
process of such State or other local jurisdiction,
or be subject or denied access to any greater extent, because of activities of the corporation or
partnership within such State or other local jurisdiction.
(Pub. L. 90–448, title IX, § 912, as added Pub. L.
91–351, title VIII, § 711, July 24, 1970, 84 Stat. 463.)
CHAPTER 50—NATIONAL FLOOD INSURANCE
Sec.
4001.
4002.
4003.
4004.
4005.
4011.
4012.
4012a.
AMENDMENTS
1984—Subsec. (a). Pub. L. 98–479 designated existing
provisions as par. (1) and added par. (2).
Statutory Notes and Related Subsidiaries
TERMINATION OF REPORTING REQUIREMENTS
For termination, effective May 15, 2000, of provisions
in subsec. (a) of this section relating to transmittal of
annual report to Congress, see section 3003 of Pub. L.
104–66, as amended, set out as a note under section 1113
of Title 31, Money and Finance, and item 2 on page 182
of House Document No. 103–7.
§ 3939. Applicability of antitrust laws
Nothing contained herein shall affect the applicability of the Federal antitrust laws to the
activities of the corporation and the partnership
created under this chapter and of the persons
participating therein or in partnerships, limited
partnerships, or joint ventures with either of
them.
4013.
4013a.
4014.
4015.
4015a.
4016.
4017.
4017a.
4018.
4019.
4020.
4021.
4022.
4023.
4024.
4025.
4026.
4027.
4027a.
Congressional findings and declaration of purpose.
Additional Congressional findings and declaration of purpose.
Definitions applicable to Flood Disaster Protection Act of 1973.
Definitions applicable to Biggert-Waters
Flood Insurance Reform Act of 2012.
Definitions applicable to Homeowner Flood
Insurance Affordability Act of 2014.
SUBCHAPTER I—THE NATIONAL FLOOD
INSURANCE PROGRAM
Authorization to establish and carry out program.
Scope of program and priorities.
Flood insurance purchase and compliance requirements and escrow accounts.
Nature and limitation of insurance coverage.
Policy disclosures.
Estimates of premium rates.
Chargeable premium rates.
Premium surcharge.
Financing.
National Flood Insurance Fund.
Reserve Fund.
Operating costs and allowances; definitions.
Payment of claims.
Dissemination of flood insurance information.
Participation in State disaster claims mediation programs.
State and local land use controls.
Properties in violation of State and local law.
Coordination with other programs.
Flood insurance advisory committee.
Expiration of program.
Biennial report to President.
Report of the Administrator on activities
under the National Flood Insurance Program.
Page 5755
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Sec.
§ 4001
Sec.
4027b.
4028.
4029.
4030.
4031.
4032.
4033.
Assessment of claims-paying ability.
John H. Chafee Coastal Barrier Resources
System.
Colorado River Floodway.
Repealed.
Treatment of certain payments.
Treatment of swimming pool enclosures outside of hurricane season.
Designation of Flood Insurance Advocate.
4127.
4128.
4129.
4130.
4131.
Authorization of appropriations; availability.
Rules and regulations.
Federal Insurance Administrator; establishment of position.
No cause of action.
Levee certifications.
§ 4001. Congressional findings and declaration of
purpose
SUBCHAPTER II—ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE PROGRAM
(a) Necessity and reasons for flood insurance
program
4041.
The Congress finds that (1) from time to time
flood disasters have created personal hardships
and economic distress which have required unforeseen disaster relief measures and have
placed an increasing burden on the Nation’s resources; (2) despite the installation of preventive
and protective works and the adoption of other
public programs designed to reduce losses
caused by flood damage, these methods have not
been sufficient to protect adequately against
growing exposure to future flood losses; (3) as a
matter of national policy, a reasonable method
of sharing the risk of flood losses is through a
program of flood insurance which can complement and encourage preventive and protective measures; and (4) if such a program is initiated and carried out gradually, it can be expanded as knowledge is gained and experience is
appraised, thus eventually making flood insurance coverage available on reasonable terms and
conditions to persons who have need for such
protection.
(b) Participation of Federal Government in flood
insurance program carried out by private insurance industry
The Congress also finds that (1) many factors
have made it uneconomic for the private insurance industry alone to make flood insurance
available to those in need of such protection on
reasonable terms and conditions; but (2) a program of flood insurance with large-scale participation of the Federal Government and carried
out to the maximum extent practicable by the
private insurance industry is feasible and can be
initiated.
(c) Unified national program for flood plain management
The Congress further finds that (1) a program
of flood insurance can promote the public interest by providing appropriate protection against
the perils of flood losses and encouraging sound
land use by minimizing exposure of property to
flood losses; and (2) the objectives of a flood insurance program should be integrally related to
a unified national program for flood plain management and, to this end, it is the sense of Congress that within two years following the effective date of this chapter the President should
transmit to the Congress for its consideration
any further proposals necessary for such a unified program, including proposals for the allocation of costs among beneficiaries of flood protection.
(d) Authorization of flood insurance program;
flexibility in program
It is therefore the purpose of this chapter to
(1) authorize a flood insurance program by
Implementation of program.
PART A—INDUSTRY PROGRAM WITH FEDERAL
FINANCIAL ASSISTANCE
4051.
Industry flood insurance pool; requirements
for participation.
Agreements with flood insurance pool.
Adjustment and payment of claims; judicial
review; limitations; jurisdiction.
Premium equalization payments; basis; aggregate amount; establishment of designated periods.
Reinsurance coverage.
Emergency implementation of flood insurance program; applicability of other provisions of law.
Alternative loss allocation system for indeterminate claims.
4052.
4053.
4054.
4055.
4056.
4057.
PART B—GOVERNMENT PROGRAM WITH INDUSTRY
ASSISTANCE
4071.
Federal operation of program; determination
by Administrator; fiscal agents; report to
Congress.
Adjustment and payment of claims; judicial
review; limitations; jurisdiction.
4072.
PART C—GENERAL PROVISIONS
4081.
4082.
Services by insurance industry.
Use of insurance pool, companies, or other
private organizations for certain payments.
Settlement of claims; arbitration.
Records and audits.
4083.
4084.
SUBCHAPTER III—COORDINATION OF FLOOD INSURANCE
WITH
LAND-MANAGEMENT
PROGRAMS IN FLOOD-PRONE AREAS
4101.
4101a.
4101b.
4101c.
4101d.
4101e.
Identification of flood-prone areas.
Technical Mapping Advisory Council.
National Flood Mapping Program.
Coordination.
Flood insurance rate map certification.
Exemption from fees for certain map change
requests.
4102.
Criteria for land management and use.
4102a, 4103.Repealed.
4104.
Flood elevation determinations.
4104–1.
Scientific Resolution Panel.
4104a.
Notice requirements.
4104b.
Standard hazard determination forms.
4104c.
Mitigation assistance.
4104d.
National Flood Mitigation Fund.
4105.
Disaster mitigation requirements; notification to flood-prone areas.
4106.
Nonparticipation in flood insurance program.
4107.
Consultation with local officials; scope.
SUBCHAPTER IV—GENERAL PROVISIONS
4121.
4122.
4123.
4124.
4125.
4126.
Definitions.
Studies of other natural disasters; cooperation and consultation with other departments and agencies.
Advance payments.
Applicability of fiscal controls.
Finality of certain financial transactions.
Administrative expenses.
§ 4001
TITLE 42—THE PUBLIC HEALTH AND WELFARE
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; development of proposed future
construction; assistance of lending and credit institutions; relation of Federal assistance
to all flood-related programs; continuing
studies
It is the further purpose of this chapter to (1)
encourage State and local governments to make
appropriate land use adjustments to constrict
the development of land which is exposed to
flood damage and minimize damage caused by
flood losses, (2) guide the development of proposed future construction, where practicable,
away from locations which are threatened by
flood hazards, (3) encourage lending and credit
institutions, as a matter of national policy, to
assist in furthering the objectives of the flood
insurance program, (4) assure that any Federal
assistance provided under the program will be
related closely to all flood-related programs and
activities of the Federal Government, and (5) authorize continuing studies of flood hazards in
order to provide for a constant reappraisal of
the flood insurance program and its effect on
land use requirements.
(f) Mudslides
The Congress also finds that (1) the damage
and loss which results from mudslides is related
in cause and similar in effect to that which results directly from storms, deluges, overflowing
waters, and other forms of flooding, and (2) the
problems involved in providing protection
against this damage and loss, and the possibilities for making such protection available
through a Federal or federally sponsored program, are similar to those which exist in connection with efforts to provide protection
against damage and loss caused by such other
forms of flooding. It is therefore the further purpose of this chapter to make available, by means
of the methods, procedures, and instrumentalities which are otherwise established or available under this chapter for purposes of the flood
insurance program, protection against damage
and loss resulting from mudslides that are
caused by accumulations of water on or under
the ground.
(Pub. L. 90–448, title XIII, § 1302, Aug. 1, 1968, 82
Stat. 572; Pub. L. 91–152, title IV, § 409(a), Dec. 24,
1969, 83 Stat. 397; Pub. L. 93–234, title I, § 108(a),
Dec. 31, 1973, 87 Stat. 979; Pub. L. 103–325, title V,
§ 552(d), Sept. 23, 1994, 108 Stat. 2269.)
Page 5756
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out below and Tables.
AMENDMENTS
1994—Subsec. (g). Pub. L. 103–325 struck out subsec.
(g) which read as follows: ‘‘The Congress also finds that
(1) the damage and loss which may result from the erosion and undermining of shorelines by waves or currents in lakes and other bodies of water exceeding anticipated cyclical levels is related in cause and similar
in effect to that which results directly from storms,
deluges, overflowing waters, and other forms of flooding, and (2) the problems involved in providing protection against this damage and loss, and the possibilities
for making such protection available through a Federal
or federally sponsored program, are similar to those
which exist in connection with efforts to provide protection against damage and loss caused by such other
forms of flooding. It is therefore the further purpose of
this chapter to make available, by means of the methods, procedures, and instrumentalities which are otherwise established or available under this chapter for purposes of the flood insurance program, protection
against damage and loss resulting from the erosion and
undermining of shorelines by waves or currents in
lakes and other bodies of water exceeding anticipated
cyclical levels.’’
1973—Subsec. (g). Pub. L. 93–234 added subsec. (g).
1969—Subsec. (f). Pub. L. 91–152 added subsec. (f).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Pub. L. 90–448, title XIII, § 1377, Aug. 1, 1968, 82 Stat.
589, provided that: ‘‘This title [enacting this chapter,
amending section 2414 of this title, repealing sections
2401 to 2413 and 2415 to 2421 of this title, and enacting
provisions set out as notes under this section] shall
take effect one hundred and twenty days following the
date of its enactment [Aug. 1, 1968], except that the
Secretary, on the basis of a finding that conditions
exist necessitating the prescribing of an additional period, may prescribe a later effective date which in no
event shall be more than one hundred and eighty days
following such date of enactment.’’
SHORT TITLE OF 2019 AMENDMENT
Pub. L. 116–19, § 1, May 31, 2019, 133 Stat. 870, provided
that: ‘‘This Act [amending sections 4016 and 4026 of this
title and enacting provisions set out as a note under
section 4016 of this title] may be cited as the ‘National
Flood Insurance Program Extension Act of 2019’.’’
SHORT TITLE OF 2018 AMENDMENT
Pub. L. 115–396, § 1, Dec. 21, 2018, 132 Stat. 5296, provided that: ‘‘This Act [amending sections 4016 and 4026
of this title and enacting provisions set out as a note
under section 4016 of this title] may be cited as the ‘National Flood Insurance Program Extension Act’.’’
Pub. L. 115–281, § 1, Dec. 1, 2018, 132 Stat. 4191, provided
that: ‘‘This Act [amending sections 4016 and 4026 of this
title] may be cited as the ‘National Flood Insurance
Program Further Extension Act of 2018’.’’
Pub. L. 115–225, § 1, July 31, 2018, 132 Stat. 1624, provided that: ‘‘This Act [amending sections 4016 and 4026
of this title] may be cited as the ‘National Flood Insurance Program Extension Act of 2018’.’’
Editorial Notes
SHORT TITLE OF 2014 AMENDMENT
REFERENCES IN TEXT
Pub. L. 113–89, § 1(a), Mar. 21, 2014, 128 Stat. 1020, provided that: ‘‘This Act [enacting sections 4005, 4015a,
4033, 4101d, and 4101e of this title, amending sections
4012a, 4013, 4014, 4015, 4017, 4017a, 4081, 4101b, 4102, and
4104 of this title and section 2604 of Title 12, Banks and
Banking, enacting provisions set out as notes under
For effective date of this chapter, referred to in subsec. (c), see section 1377 of Pub. L. 90–448, set out as an
Effective Date note below.
This chapter, referred to in subsecs. (d) to (f), was in
the original a reference to ‘‘this title’’ meaning title
Page 5757
TITLE 42—THE PUBLIC HEALTH AND WELFARE
sections 4012a, 4014, 4015, and 4102 of this title, and repealing provisions set out as a note under section 4012a
of this title] may be cited as the ‘Homeowner Flood Insurance Affordability Act of 2014’.’’
SHORT TITLE OF 2012 AMENDMENT
Pub. L. 112–141, div. F, title II, § 100201, July 6, 2012,
126 Stat. 916, provided that: ‘‘This subtitle [subtitle A
(§§ 100201–100249) of title II of div. F of Pub. L. 112–141,
see Tables for classification] may be cited as the
‘Biggert-Waters Flood Insurance Reform Act of 2012’.’’
Pub. L. 112–141, div. F, title II, § 100251, July 6, 2012,
126 Stat. 969, provided that: ‘‘This subtitle [subtitle B
(§§ 100251–100253) of title II of div. F of Pub. L. 112–141,
enacting section 4057 of this title and section 3611 of
Title 33, Navigation and Navigable Waters] may be
cited as the ‘Consumer Option for an Alternative System to Allocate Losses Act of 2012’ or the ‘COASTAL
Act of 2012’.’’
SHORT TITLE OF 2010 AMENDMENT
Pub. L. 111–250, § 1, Sept. 30, 2010, 124 Stat. 2630, provided that: ‘‘This Act [amending sections 4016 and 4026
of this title] may be cited as the ‘National Flood Insurance Program Reextension Act of 2010’.’’
Pub. L. 111–196, § 1, July 2, 2010, 124 Stat. 1352, provided that: ‘‘This Act [amending sections 4016 and 4026
of this title and enacting provisions set out as a note
under section 4016 of this title] may be cited as the ‘National Flood Insurance Program Extension Act of
2010’.’’
SHORT TITLE OF 2006 AMENDMENT
Pub. L. 109–208, § 1, Mar. 23, 2006, 120 Stat. 317, provided that: ‘‘This Act [amending section 4016 of this
title] may be cited as the ‘National Flood Insurance
Program Enhanced Borrowing Authority Act of 2006’.’’
SHORT TITLE OF 2005 AMENDMENTS
Pub. L. 109–106, § 1, Nov. 21, 2005, 119 Stat. 2288, provided that: ‘‘This Act [amending section 4016 of this
title] may be cited as the ‘National Flood Insurance
Program Further Enhanced Borrowing Authority Act
of 2005’.’’
Pub. L. 109–65, § 1, Sept. 20, 2005, 119 Stat. 1998, provided that: ‘‘This Act [amending section 4016 of this
title] may be cited as the ‘National Flood Insurance
Program Enhanced Borrowing Authority Act of 2005’.’’
SHORT TITLE OF 2004 AMENDMENT
Pub. L. 108–264, § 1(a), June 30, 2004, 118 Stat. 712, provided that: ‘‘This Act [enacting sections 4030 and 4102a
of this title, amending sections 4011, 4015 to 4017, 4022,
4026, 4056, 4104c, 4104d, 4121, and 4127 of this title, and
enacting provisions set out as notes under this section
and sections 4011 and 4101 of this title] may be cited as
the ‘Bunning-Bereuter-Blumenauer Flood Insurance
Reform Act of 2004’.’’
SHORT TITLE OF 2003 AMENDMENTS
Pub. L. 108–171, § 1, Dec. 6, 2003, 117 Stat. 2064, provided
that: ‘‘This Act [amending sections 4016, 4026, 4056, and
4127 of this title and enacting provisions set out as a
note under section 4016 of this title] may be cited as the
‘National Flood Insurance Program Reauthorization
Act of 2004’.’’
Pub. L. 108–3, § 1, Jan. 13, 2003, 117 Stat. 7, provided
that: ‘‘This Act [amending sections 4016, 4026, 4056, and
4127 of this title and enacting provisions set out as a
note under section 4016 of this title] may be cited as the
‘National Flood Insurance Program Reauthorization
Act of 2003’.’’
SHORT TITLE OF 1994 AMENDMENT
Pub. L. 103–325, title V, § 501, Sept. 23, 1994, 108 Stat.
2255, provided that: ‘‘This title [enacting sections 4104b
to 4104d and 5154a of this title, amending this section,
sections 4003, 4011, 4012a, 4013, 4015, 4017, 4022, 4026, 4027,
§ 4001
4029, 4056, 4081, 4101, 4104a, 4106, 4121, and 5154 of this
title, and sections 1784, 1820, 3305, and 4521 of Title 12,
Banks and Banking, repealing section 4103 of this title,
enacting provisions set out as notes under this section
and sections 4011, 4013, 4014, 4101 to 4103, and 4104c of
this title, and repealing provisions set out as a note
under section 4015 of this title] may be cited as the ‘National Flood Insurance Reform Act of 1994’.’’
SHORT TITLE OF 1973 AMENDMENT
Pub. L. 93–234, § 1, Dec. 31, 1973, 87 Stat. 975, provided:
‘‘That this Act [enacting sections 4002, 4003, 4012a, 4104,
4105 to 4107, and 4128 of this title, amending this section, sections 4013 to 4016, 4026, 4054, 4056, 4101, and 4121
of this title, and sections 24 and 1709–1 of Title 12,
Banks and Banking, and repealing section 4021 of this
title] may be cited as the ‘Flood Disaster Protection
Act of 1973’.’’
SHORT TITLE
Pub. L. 90–448, title XIII, § 1301, Aug. 1, 1968, 82 Stat.
572, provided that: ‘‘This title [enacting this chapter,
amending section 2414 of this title, repealing sections
2401 to 2413 and 2415 to 2421 of this title, and enacting
provisions set out as a note under this section] may be
cited as the ‘National Flood Insurance Act of 1968’.’’
REGULATIONS
Pub. L. 103–325, title V, § 583, Sept. 23, 1994, 108 Stat.
2287, as amended by Pub. L. 109–295, title VI, § 612(c),
Oct. 4, 2006, 120 Stat. 1410, provided that: ‘‘The Administrator of the Federal Emergency Management Agency
and any appropriate Federal agency may each issue
any regulations necessary to carry out the applicable
provisions of this title [see Short Title of 1994 Amendment note above] and the applicable amendments made
by this title.’’
[For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.]
[For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]
EVALUATION OF EROSION HAZARDS
Pub. L. 103–325, title V, § 577(a)–(g), Sept. 23, 1994, 108
Stat. 2281–2283, required the Director of the Federal
Emergency Management Agency to submit a report no
later than two years after Sept. 23, 1994, evaluating erosion hazards and estimating the impact of erosion on
flood insurance claims.
RELATION OF TITLE V OF PUB. L. 103–325 TO STATE
AND LOCAL LAWS
Pub. L. 103–325, title V, § 584, Sept. 23, 1994, 108 Stat.
2287, provided that: ‘‘This title [see Short Title of 1994
Amendment note above] and the amendments made by
this title may not be construed to preempt, annul,
alter, amend, or exempt any person from compliance
with any law, ordinance, or regulation of any State or
local government with respect to land use, management, or control.’’
Executive Documents
FLOODPLAIN MANAGEMENT
For provisions relating to the reduction of the risk of
flood loss, the minimization of the impact of floods on
§ 4002
TITLE 42—THE PUBLIC HEALTH AND WELFARE
human safety, health and welfare, and the management
of floodplains, see Ex. Ord. No. 11988, May 24, 1977, 42
F.R. 26951, set out as a note under section 4321 of this
title.
§ 4002. Additional Congressional findings and
declaration of purpose
(a) The Congress finds that—
(1) annual losses throughout the Nation from
floods and mudslides are increasing at an
alarming rate, largely as a result of the accelerating development of, and concentration of
population in, areas of flood and mudslide hazards;
(2) the availability of Federal loans, grants,
guaranties, insurance, and other forms of financial assistance are often determining factors in the utilization of land and the location
and construction of public and of private industrial, commercial, and residential facilities;
(3) property acquired or constructed with
grants or other Federal assistance may be exposed to risk of loss through floods, thus frustrating the purpose for which such assistance
was extended;
(4) Federal instrumentalities insure or otherwise provide financial protection to banking
and credit institutions whose assets include a
substantial number of mortgage loans and
other indebtedness secured by property exposed to loss and damage from floods and
mudslides;
(5) the Nation cannot afford the tragic losses
of life caused annually by flood occurrences,
nor the increasing losses of property suffered
by flood victims, most of whom are still inadequately compensated despite the provision of
costly disaster relief benefits; and
(6) it is in the public interest for persons already living in flood-prone areas to have both
an opportunity to purchase flood insurance
and access to more adequate limits of coverage, so that they will be indemnified, for
their losses in the event of future flood disasters.
(b) The purpose of this Act, therefore, is to—
(1) substantially increase the limits of coverage authorized under the national flood insurance program;
(2) provide for the expeditious identification
of, and the dissemination of information concerning, flood-prone areas;
(3) require States or local communities, as a
condition of future Federal financial assistance, to participate in the flood insurance program and to adopt adequate flood plan ordinances with effective enforcement provisions
consistent with Federal standards to reduce or
avoid future flood losses; and
(4) require the purchase of flood insurance
by property owners who are being assisted by
Federal programs or by federally supervised,
regulated, or insured agencies or institutions
in the acquisition or improvement of land or
facilities located or to be located in identified
areas having special flood hazards.
(Pub. L. 93–234, § 2, Dec. 31, 1973, 87 Stat. 975.)
Page 5758
Editorial Notes
REFERENCES IN TEXT
This Act, referred to in subsec. (b), means Pub. L.
93–234, Dec. 31, 1973, 87 Stat. 975, as amended, known as
the Flood Disaster Protection Act of 1973. For complete
classification of this Act to the Code, see Short Title of
1973 Amendment note set out under section 4001 of this
title and Tables.
CODIFICATION
Section was enacted as part of the Flood Disaster
Protection Act of 1973, and not as part of the National
Flood Insurance Act of 1968 which comprises this chapter.
§ 4003. Definitions applicable to Flood Disaster
Protection Act of 1973
(a) As used in this Act, unless the context otherwise requires, the term—
(1) ‘‘community’’ means a State or a political subdivision thereof which has zoning and
building code jurisdiction over a particular
area having special flood hazards;
(2) ‘‘Federal agency’’ means any department,
agency, corporation, or other entity or instrumentality of the executive branch of the Federal Government, and includes the Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation;
(3) ‘‘financial assistance’’ means any form of
loan, grant, guaranty, insurance, payment, rebate, subsidy, disaster assistance loan or
grant, or any other form of direct or indirect
Federal assistance, other than general or special revenue sharing or formula grants made
to States;
(4) ‘‘financial assistance for acquisition or
construction purposes’’ means any form of financial assistance which is intended in whole
or in part for the acquisition, construction, reconstruction, repair, or improvement of any
publicly or privately owned building or mobile
home, and for any machinery, equipment, fixtures, and furnishings contained or to be contained therein, and shall include the purchase
or subsidization of mortgages or mortgage
loans but shall exclude assistance pursuant to
the Disaster Relief and Emergency Assistance
Act [42 U.S.C. 5121 et seq.] (other than assistance under such Act in connection with a
flood);
(5) ‘‘Federal entity for lending regulation’’
means the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the National Credit Union Administration, and the Farm Credit Administration, and
with respect to a particular regulated lending
institution means the entity primarily responsible for the supervision of the institution;
(6) ‘‘Administrator’’ means the Administrator of the Federal Emergency Management
Agency;
(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;
Page 5759
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(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 Administrator is authorized to define
or redefine, by rules and regulations, any scientific or technical term used in this Act, insofar as such definition is not inconsistent with
the purposes of this Act.
(Pub. L. 93–234, § 3, Dec. 31, 1973, 87 Stat. 976; Pub.
L. 95–128, title VII, § 703(b), Oct. 12, 1977, 91 Stat.
1145; Pub. L. 98–181, title I [title IV, § 451(e)],
Nov. 30, 1983, 97 Stat. 1229; Pub. L. 100–707, title
I, § 109(t), Nov. 23, 1988, 102 Stat. 4710; Pub. L.
103–325, title V, § 511(a), Sept. 23, 1994, 108 Stat.
2255; Pub. L. 111–203, title III, § 368, July 21, 2010,
124 Stat. 1557; Pub. L. 112–141, div. F, title II,
§ 100238(a)(1), July 6, 2012, 126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This Act, referred to in text, means Pub. L. 93–234,
Dec. 31, 1973, 87 Stat. 975, known as the Flood Disaster
Protection Act of 1973. For complete classification of
this Act to the Code, see Short Title of 1973 Amendment note set out under section 4001 of this title and
Tables.
The Disaster Relief and Emergency Assistance Act,
referred to in subsec. (a)(4), is Pub. L. 93–288, May 22,
1974, 88 Stat. 143, known as the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which is
classified principally to chapter 68 (§ 5121 et seq.) of this
title. For complete classification of this Act to the
Code, see Short Title note set out under section 5121 of
this title and Tables.
CODIFICATION
Section was enacted as part of the Flood Disaster
Protection Act of 1973, and not as part of the National
Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
2012—Subsec. (a)(6). Pub. L. 112–141 substituted ‘‘ ‘Administrator’ ’’ for ‘‘ ‘Director’ ’’ and ‘‘Administrator of’’
for ‘‘Director of’’.
Subsec. (b). Pub. L. 112–141 substituted ‘‘Administrator’’ for ‘‘Director’’.
2010—Subsec. (a)(5). Pub. L. 111–203 struck out ‘‘, the
Office of Thrift Supervision’’ after ‘‘the Comptroller of
the Currency’’.
1994—Subsec. (a)(5). Pub. L. 103–325, § 511(a)(1), added
par. (5) and struck out former par. (5) which read as follows: ‘‘ ‘Federal instrumentality responsible for the supervision, approval, regulation, or insuring of banks,
savings and loan associations, or similar institutions’
means the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation,
the Comptroller of the Currency, the Federal Home
Loan Bank Board, the Federal Savings and Loan Insurance Corporation, and the National Credit Union Administration; and’’.
§ 4004
Subsec. (a)(7) to (11). Pub. L. 103–325, § 511(a)(2), (3),
added pars. (7) to (11).
1988—Subsec. (a)(4). Pub. L. 100–707 substituted ‘‘Disaster Relief and Emergency Assistance Act’’ for ‘‘Disaster Relief Act of 1974’’.
1983—Subsec. (a)(6). Pub. L. 98–181, § 451(e)(2), substituted definition of ‘‘Director’’ meaning the Director
of the Federal Emergency Management Agency for definition of ‘‘Secretary’’ meaning the Secretary of Housing and Urban Development.
Subsec. (b). Pub. L. 98–181, § 451(e)(1), substituted ‘‘Director’’ for ‘‘Secretary’’.
1977—Subsec. (a)(4). Pub. L. 95–128 substituted ‘‘assistance pursuant to the Disaster Relief Act of 1974 (other
than assistance under such Act in connection with a
flood)’’ for ‘‘assistance for emergency work essential
for the protection and preservation of life and property
performed pursuant to the Disaster Relief Act of 1970 or
any subsequent Act of Congress which supersedes or
modifies the Disaster Relief Act of 1970’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a
note under section 906 of Title 2, The Congress.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4004. Definitions applicable to Biggert-Waters
Flood Insurance Reform Act of 2012
(a) In general
In this subtitle, the following definitions shall
apply:
(1) 100-year floodplain
The term ‘‘100-year floodplain’’ means that
area which is subject to inundation from a
flood having a 1-percent chance of being
equaled or exceeded in any given year.
(2) 500-year floodplain
The term ‘‘500-year floodplain’’ means that
area which is subject to inundation from a
flood having a 0.2-percent chance of being
equaled or exceeded in any given year.
(3) Administrator
The term ‘‘Administrator’’ means the Administrator of the Federal Emergency Management Agency.
(4) National Flood Insurance Program
The term ‘‘National Flood Insurance Program’’ means the program established under
the National Flood Insurance Act of 1968 (42
U.S.C. 4011 et seq.).
(5) Write Your Own
The term ‘‘Write Your Own’’ means the cooperative undertaking between the insurance
§ 4005
TITLE 42—THE PUBLIC HEALTH AND WELFARE
industry and the Federal Insurance Administration which allows participating property
and casualty insurance companies to write
and service standard flood insurance policies.
(b) Common terminology
Except as otherwise provided in this subtitle,
any terms used in this subtitle shall have the
meaning given to such terms under section 1370
of the National Flood Insurance Act of 1968 (42
U.S.C. 4121).
(Pub. L. 112–141, div. F, title II, § 100202, July 6,
2012, 126 Stat. 916.)
Editorial Notes
REFERENCES IN TEXT
This subtitle, referred to in subsecs. (a) and (b), is
subtitle A (§§ 100201–100249) of title II of div. F of Pub.
L. 112–141, July 6, 2012, 126 Stat. 916, known as the
Biggert-Waters Flood Insurance Reform Act of 2012.
For complete classification of this subtitle to the Code,
see Short Title of 2012 Amendment note set out under
section 4001 of this title and Tables.
The National Flood Insurance Act of 1968, referred to
in subsec. (a)(4), is title XIII of Pub. L. 90–448, Aug. 1,
1968, 82 Stat. 572, which is classified principally to this
chapter. For complete classification of this Act to the
Code, see Short Title note set out under section 4001 of
this title and Tables.
CODIFICATION
Section was enacted as part of the Biggert-Waters
Flood Insurance Reform Act of 2012, and also as part of
the Moving Ahead for Progress in the 21st Century Act,
also known as the MAP–21, and not as part of National
Flood Insurance Act of 1968 which comprises this chapter.
§ 4005. Definitions applicable to Homeowner
Flood Insurance Affordability Act of 2014
For purposes of this title,1 the following definitions shall apply:
(1) Administrator
The term ‘‘Administrator’’ means the Administrator of the Federal Emergency Management Agency.
(2) National Flood Insurance Program
The term ‘‘National Flood Insurance Program’’ means the program established under
the National Flood Insurance Act of 1968 (42
U.S.C. 4001 et seq.).
(Pub. L. 113–89, § 2, Mar. 21, 2014, 128 Stat. 1020.)
Editorial Notes
REFERENCES IN TEXT
This title, referred to in text, probably should read
‘‘this Act’’, meaning Pub. L. 113–89, Mar. 21, 2014, 128
Stat. 1020, known as the Homeowner Flood Insurance
Affordability Act of 2014, which does not contain titles.
For complete classification of this Act to the Code, see
Short Title of 2014 Amendment note set out under section 4001 of this title and Tables.
The National Flood Insurance Act of 1968, referred to
in par. (2), is title XIII of Pub. L. 90–448, Aug. 1, 1968, 82
Stat. 572, which is classified principally to this chapter.
For complete classification of this Act to the Code, see
Short Title note set out under section 4001 of this title
and Tables.
1 See
References in Text note below.
Page 5760
CODIFICATION
Section was enacted as part of the Homeowner Flood
Insurance Affordability Act of 2014, and not as part of
the National Flood Insurance Act of 1968 which comprises this chapter.
SUBCHAPTER I—THE NATIONAL FLOOD
INSURANCE PROGRAM
§ 4011. Authorization to establish and carry out
program
(a) Authorization and establishment
To carry out the purposes of this chapter, the
Administrator of the Federal Emergency Management Agency is authorized to establish and
carry out a national flood insurance program
which will enable interested persons to purchase
insurance against loss resulting from physical
damage to or loss of real property or personal
property related thereto arising from any flood
occurring in the United States.
(b) Additional coverage for compliance with land
use and control measures
The national flood insurance program established pursuant to subsection (a) shall enable
the purchase of insurance to cover the cost of
implementing measures that are consistent with
land use and control measures established by
the community under section 4102 of this title
for—
(1) properties that are repetitive loss structures;
(2) properties that are substantially damaged structures;
(3) properties that have sustained flood damage on multiple occasions, if the Administrator determines that it is cost-effective and
in the best interests of the National Flood Insurance Fund to require the implementation
of such measures; and
(4) properties for which an offer of mitigation assistance is made under—
(A) section 4104c of this title (Flood Mitigation Assistance Program);
(B) the Hazard Mitigation Grant Program
authorized under section 5170c of this title;
(C) the Predisaster Hazard Mitigation Program under section 5133 of this title; and
(D) any programs authorized or for which
funds are appropriated to address any unmet
needs or for which supplemental funds are
made available.
The Administrator 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 Administrator 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.
Page 5761
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(Pub. L. 90–448, title XIII, § 1304, Aug. 1, 1968, 82
Stat. 574; Pub. L. 98–181, title I [title IV,
§ 451(d)(1), (2)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
103–325, title V, § 555(a), Sept. 23, 1994, 108 Stat.
2274; Pub. L. 108–264, title I, § 105(a), June 30, 2004,
118 Stat. 723; Pub. L. 112–141, div. F, title II,
§§ 100225(f), 100238(b)(1), July 6, 2012, 126 Stat. 942,
958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Subsec. (b). Pub. L. 112–141, § 100238(b)(1), substituted
‘‘Administrator’’ for ‘‘Director’’ in concluding provisions.
Subsec. (b)(3). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Subsec. (b)(4)(B) to (E). Pub. L. 112–141, § 100225(f), redesignated subpars. (C) to (E) as (B) to (D), respectively, and struck out former subpar. (B) which read as
follows: ‘‘section 1368 (Repetitive Loss Priority Program and Individual Priority Property Program);’’.
Subsec. (c). Pub. L. 112–141, § 100238(b)(1), substituted
‘‘Administrator’’ for ‘‘Director’’ in introductory provisions.
2004—Subsec. (b). Pub. L. 108–264, § 105(a)(1)(B), which
directed insertion of ‘‘by the community’’ after ‘‘established’’ in introductory provisions, was executed by
making the insertion after ‘‘established’’ the second
time appearing to reflect the probable intent of Congress.
Pub. L. 108–264, § 105(a)(1)(A), substituted ‘‘implementing measures that are consistent’’ for ‘‘compliance’’ in introductory provisions.
Subsec. (b)(2). Pub. L. 108–264, § 105(a)(2), substituted
‘‘are substantially damaged structures;’’ for ‘‘have
flood damage in which the cost of repairs equals or exceeds 50 percent of the value of the structure at the
time of the flood event; and’’.
Subsec. (b)(3). Pub. L. 108–264, § 105(a)(3), which directed the substitution of ‘‘the implementation of such
measures; and’’ for ‘‘compliance with land use and control measures.’’, was executed by making the substitution for ‘‘compliance with the land use and control
measures.’’, to reflect the probable intent of Congress.
Subsec. (b)(4). Pub. L. 108–264, § 105(a)(4), added par.
(4).
1994—Subsecs. (b), (c). Pub. L. 103–325 added subsec.
(b) and redesignated former subsec. (b) as (c).
1983—Subsec. (a). Pub. L. 98–181, § 451(d)(2), substituted ‘‘Director of the Federal Emergency Management Agency’’ for ‘‘Secretary of Housing and Urban Development’’.
Subsec. (b). Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for ‘‘Secretary’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1994 AMENDMENT
Pub. L. 103–325, title V, § 555(b), Sept. 23, 1994, 108
Stat. 2274, provided that: ‘‘The provisions of subsection
(a) [amending this section] shall apply only to properties that sustain flood-related damage after the date
of enactment of this Act [Sept. 23, 1994].’’
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
§ 4011
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
FLOOD IN PROGRESS DETERMINATIONS
Pub. L. 112–141, div. F, title II, § 100227, July 6, 2012,
126 Stat. 943, provided that:
‘‘(a) REPORT.—
‘‘(1) REVIEW.—The Administrator shall review—
‘‘(A) the processes and procedures for determining
that a flood event has commenced or is in progress
for purposes of flood insurance coverage made
available under the National Flood Insurance Program;
‘‘(B) the processes and procedures for providing
public notification that such a flood event has commenced or is in progress;
‘‘(C) the processes and procedures regarding the
timing of public notification of flood insurance requirements and availability; and
‘‘(D) the effects and implications that weather
conditions, including rainfall, snowfall, projected
snowmelt, existing water levels, and other conditions, have on the determination that a flood event
has commenced or is in progress.
‘‘(2) REPORT.—Not later than 6 months after the
date of enactment of this Act [July 6, 2012], the Administrator shall submit a report to Congress that
describes—
‘‘(A) the results and conclusions of the review
under paragraph (1); and
‘‘(B) any actions taken, or proposed actions to be
taken, by the Administrator to provide for more
precise and technical processes and procedures for
determining that a flood event has commenced or is
in progress.
‘‘(b) EFFECTIVE DATE OF POLICIES COVERING PROPERTIES AFFECTED BY FLOODING OF THE MISSOURI RIVER
IN 2011.—
‘‘(1) ELIGIBLE COVERAGE.—For purposes of this subsection, the term ‘eligible coverage’ means coverage
under a new contract for flood insurance coverage
under the National Flood Insurance Program, or a
modification to coverage under an existing flood insurance contract, for property damaged by the flooding of the Missouri River that commenced on June 1,
2011, that was purchased or made during the period
beginning May 1, 2011, and ending June 6, 2011.
‘‘(2) EFFECTIVE DATES.—Notwithstanding section
1306(c) of the National Flood Insurance Act of 1968 (42
U.S.C. 4013(c)), or any other provision of law, any eligible coverage shall—
‘‘(A) be deemed to take effect on the date that is
30 days after the date on which all obligations for
the eligible coverage (including completion of the
application and payment of any initial premiums
owed) are satisfactorily completed; and
‘‘(B) cover damage to property occurring after the
effective date described in subparagraph (A) that
resulted from the flooding of the Missouri River
§ 4011
TITLE 42—THE PUBLIC HEALTH AND WELFARE
that commenced on June 1, 2011, if the property did
not suffer damage or loss as a result of such flooding before the effective date described in subparagraph (A).
‘‘(c) TIMELY NOTIFICATION.—Not later than 90 days
after the date on which the Administrator submits the
report required under subsection (a)(2), the Administrator shall, taking into consideration the results of
the review under subsection (a)(1)(B), develop procedures for providing timely notification, to the extent
practicable, to policyholders who have purchased flood
insurance coverage under the National Flood Insurance
Program within 30 days of a determination of a flood in
progress and who may be affected by the flood of the
determination and how the determination may affect
their coverage.’’
[For definitions of terms used in section 100227 of
Pub. L. 112–141, set out above, see section 4004 of this
title.]
CONGRESSIONAL FINDINGS
Pub. L. 108–264, § 2, June 30, 2004, 118 Stat. 712, provided that: ‘‘The Congress finds that—
‘‘(1) the national flood insurance program—
‘‘(A) identifies the flood risk;
‘‘(B) provides flood risk information to the public;
‘‘(C) encourages State and local governments to
make appropriate land use adjustments to constrict
the development of land which is exposed to flood
damage and minimize damage caused by flood
losses; and
‘‘(D) makes flood insurance available on a nationwide basis that would otherwise not be available, to
accelerate recovery from floods, mitigate future
losses, save lives, and reduce the personal and national costs of flood disasters;
‘‘(2) the national flood insurance program insures
approximately 4,400,000 policyholders;
‘‘(3) approximately 48,000 properties currently insured under the program have experienced, within a
10-year period, 2 or more flood losses where each such
loss exceeds the amount $1,000;
‘‘(4) approximately 10,000 of these repetitive-loss
properties have experienced either 2 or 3 losses that
cumulatively exceed building value or 4 or more
losses, each exceeding $1,000;
‘‘(5) repetitive-loss properties constitute a significant drain on the resources of the national flood insurance program, costing about $200,000,000 annually;
‘‘(6) repetitive-loss properties comprise approximately 1 percent of currently insured properties but
are expected to account for 25 to 30 percent of claims
losses;
‘‘(7) the vast majority of repetitive-loss properties
were built before local community implementation of
floodplain management standards under the program
and thus are eligible for subsidized flood insurance;
‘‘(8) while some property owners take advantage of
the program allowing subsidized flood insurance
without requiring mitigation action, others are
trapped in a vicious cycle of suffering flooding, then
repairing flood damage, then suffering flooding, without the means to mitigate losses or move out of
harm’s way;
‘‘(9) mitigation of repetitive-loss properties through
buyouts, elevations, relocations, or flood-proofing
will produce savings for policyholders under the program and for Federal taxpayers through reduced
flood insurance losses and reduced Federal disaster
assistance;
‘‘(10) a strategy of making mitigation offers aimed
at high-priority repetitive-loss properties and shifting more of the burden of recovery costs to property
owners who choose to remain vulnerable to repetitive
flood damage can encourage property owners to take
appropriate actions that reduce loss of life and property damage and benefit the financial soundness of
the program;
‘‘(11) the method for addressing repetitive-loss
properties should be flexible enough to take into con-
Page 5762
sideration legitimate circumstances that may prevent an owner from taking a mitigation action; and
‘‘(12) focusing the mitigation and buy-out of repetitive loss properties upon communities and property
owners that choose to voluntarily participate in a
mitigation and buy-out program will maximize the
benefits of such a program, while minimizing any adverse impact on communities and property owners.’’
MISCELLANEOUS FLOOD INSURANCE PROVISIONS
Pub. L. 108–264, title II, June 30, 2004, 118 Stat. 725, as
amended by Pub. L. 109–295, title VI, § 612(c), Oct. 4,
2006, 120 Stat. 1410, provided that:
‘‘SEC. 201. DEFINITIONS.
‘‘In this title, the following definitions shall apply:
‘‘(1) DIRECTOR.—The term ‘Director’ means the Administrator of the Federal Emergency Management
Agency.
‘‘(2) FLOOD INSURANCE POLICY.—The term ‘flood insurance policy’ means a flood insurance policy issued
under the National Flood Insurance Act of 1968 (42
U.S.C. [4001] et seq.).
‘‘(3) PROGRAM.—The term ‘Program’ means the National Flood Insurance Program established under
the National Flood Insurance Act of 1968 (42 U.S.C.
4001 et seq.).
‘‘SEC. 202. SUPPLEMENTAL FORMS.
‘‘(a) IN GENERAL.—Not later than 6 months after the
date of enactment of this Act [June 30, 2004], the Director shall develop supplemental forms to be issued in
conjunction with the issuance of a flood insurance policy that set forth, in simple terms—
‘‘(1) the exact coverages being purchased by a policyholder;
‘‘(2) any exclusions from coverage that apply to the
coverages purchased;
‘‘(3) an explanation, including illustrations, of how
lost items and damages will be valued under the policy at the time of loss;
‘‘(4) the number and dollar value of claims filed
under a flood insurance policy over the life of the
property, and the effect, under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.), of the filing of any further claims under a flood insurance policy with respect to that property; and
‘‘(5) any other information that the Director determines will be helpful to policyholders in understanding flood insurance coverage.
‘‘(b) DISTRIBUTION.—The forms developed under subsection (a) shall be given to—
‘‘(1) all holders of a flood insurance policy at the
time of purchase and renewal; and
‘‘(2) insurance companies and agents that are authorized to sell flood insurance policies.
‘‘SEC. 203. ACKNOWLEDGEMENT FORM.
‘‘(a) IN GENERAL.—Not later than 6 months after the
date of enactment of this Act [June 30, 2004], the Director shall develop an acknowledgement form to be
signed by the purchaser of a flood insurance policy that
contains—
‘‘(1) an acknowledgement that the purchaser has received a copy of the standard flood insurance policy,
and any forms developed under section 202; and
‘‘(2) an acknowledgement that the purchaser has
been told that the contents of a property or dwelling
are not covered under the terms of the standard flood
insurance policy, and that the policyholder has the
option to purchase additional coverage for such contents.
‘‘(b) DISTRIBUTION.—Copies of an acknowledgement
form executed under subsection (a) shall be made available to the purchaser and the Director.
‘‘SEC. 204. FLOOD INSURANCE CLAIMS HANDBOOK.
‘‘(a) IN GENERAL.—Not later than 6 months after the
date of enactment of this Act [June 30, 2004], the Director shall develop a flood insurance claims handbook
that contains—
Page 5763
TITLE 42—THE PUBLIC HEALTH AND WELFARE
‘‘(1) a description of the procedures to be followed
to file a claim under the Program, including how to
pursue a claim to completion;
‘‘(2) how to file supplementary claims, proof of loss,
and any other information relating to the filing of
claims under the Program; and
‘‘(3) detailed information regarding the appeals
process established under section 205.
‘‘(b) DISTRIBUTION.—The handbook developed under
subsection (a) shall be made available to—
‘‘(1) each insurance company and agent authorized
to sell flood insurance policies; and
‘‘(2) each purchaser, at the time of purchase and renewal, of a flood insurance policy, and at the time of
any flood loss sustained by such purchaser.
‘‘SEC. 205. APPEAL OF DECISIONS RELATING TO
FLOOD INSURANCE COVERAGE.
‘‘Not later than 6 months after the date of enactment
of this Act [June 30, 2004], the Director shall, by regulation, establish an appeals process through which holders of a flood insurance policy may appeal the decisions, with respect to claims, proofs of loss, and loss estimates relating to such flood insurance policy, of—
‘‘(1) any insurance agent or adjuster, or insurance
company; or
‘‘(2) any employee or contractor of the Federal
Emergency Management Agency.
‘‘SEC. 206. STUDY AND REPORT ON USE OF COST
COMPLIANCE COVERAGE.
‘‘Not later than 1 year after the date of enactment of
this Act [June 30, 2004], the Administrator of the Federal Emergency Management Agency shall submit to
Congress a report that sets forth—
‘‘(1) the use of cost of compliance coverage under
section 1304(b) of the National Flood Insurance Act of
1968 (42 U.S.C. 4011(b)) in connection with flood insurance policies;
‘‘(2) any barriers to policyholders using the funds
provided by cost of compliance coverage under that
section 1304(b) under a flood insurance policy, and
recommendations to address those barriers; and
‘‘(3) the steps that the Federal Emergency Management Agency has taken to ensure that funds paid for
cost of compliance coverage under that section
1304(b) are being used to lessen the burdens on all
homeowners and the Program.
‘‘SEC. 207. MINIMUM TRAINING AND EDUCATION
REQUIREMENTS.
‘‘The Administrator of the Federal Emergency Management Agency shall, in cooperation with the insurance industry, State insurance regulators, and other
interested parties—
‘‘(1) establish minimum training and education requirements for all insurance agents who sell flood insurance policies; and
‘‘(2) not later than 6 months after the date of enactment of this Act [June 30, 2004], publish these requirements in the Federal Register, and inform insurance
companies and agents of the requirements.
‘‘SEC. 208. GAO STUDY AND REPORT.
‘‘(a) STUDY.—The Comptroller General of the United
States shall conduct a study of—
‘‘(1) the adequacy of the scope of coverage provided
under flood insurance policies in meeting the intended goal of Congress that flood victims be restored
to their pre-flood conditions, and any recommendations to ensure that goal is being met;
‘‘(2) the adequacy of payments to flood victims
under flood insurance policies; and
‘‘(3) the practices of the Federal Emergency Management Agency and insurance adjusters in estimating losses incurred during a flood, and how such
practices affect the adequacy of payments to flood
victims.
‘‘(b) REPORT.—Not later than 1 year after the date of
enactment of this Act [June 30, 2004], the Comptroller
General shall submit to Congress a report regarding the
results of the study under subsection (a).
§ 4011
‘‘SEC. 209. PROSPECTIVE PAYMENT OF FLOOD INSURANCE PREMIUMS.
[Amended section 4015 of this title.]
‘‘SEC. 210. REPORT ON CHANGES TO FEE SCHEDULE
OR FEE PAYMENT ARRANGEMENTS.
‘‘Not later than 3 months after the date of enactment
of this Act [June 30, 2004], the Director shall submit a
report on any changes or modifications made to the fee
schedule or fee payment arrangements between the
Federal Emergency Management Agency and insurance
adjusters who provide services with respect to flood insurance policies to—
‘‘(1) the Committee on Banking, Housing, and
Urban Affairs of the Senate; and
‘‘(2) the Committee on Financial Services of the
House of Representatives.’’
FLOOD INSURANCE INTERAGENCY TASK FORCE
Section 561 of Pub. L. 103–325 provided that:
‘‘(a) ESTABLISHMENT.—There is hereby established an
interagency task force to be known as the Flood Insurance Task Force (in this section referred to as the
‘Task Force’).
‘‘(b) MEMBERSHIP.—
‘‘(1) IN GENERAL.—The Task Force shall be composed of 10 members, who shall be the designees of—
‘‘(A) the Federal Insurance Administrator;
‘‘(B) the Federal Housing Commissioner;
‘‘(C) the Secretary of Veterans Affairs;
‘‘(D) the Administrator of the Farmers Home Administration;
‘‘(E) the Administrator of the Small Business Administration;
‘‘(F) the Chairman of the Board of Directors of
the Farm Credit Administration;
‘‘(G) a designee of the Financial Institutions Examination Council;
‘‘(H) the Director of the Office of Federal Housing
Enterprise Oversight;
‘‘(I) the chairman of the Board of Directors of the
Federal Home Loan Mortgage Corporation; and
‘‘(J) the chairman of the Board of Directors of the
Federal National Mortgage Association.
‘‘(2) QUALIFICATIONS.—Members of the Task Force
shall be designated for membership on the Task
Force by reason of demonstrated knowledge and competence regarding the national flood insurance program.
‘‘(c) DUTIES.—The Task Force shall carry out the following duties:
‘‘(1) RECOMMENDATIONS OF STANDARDIZED ENFORCEMENT PROCEDURES.—Make recommendations to the
head of each Federal agency and enterprise referred
to under subsection (b)(1) regarding establishment or
adoption of standardized enforcement procedures
among such agencies and corporations responsible for
enforcing compliance with the requirements under
the national flood insurance program to ensure fullest possible compliance with such requirements.
‘‘(2) STUDY OF COMPLIANCE ASSISTANCE.—Conduct a
study of the extent to which Federal agencies and the
secondary mortgage market can provide assistance in
ensuring compliance with the requirements under the
national flood insurance program and submit to the
Congress a report describing the study and any conclusions.
‘‘(3) STUDY OF COMPLIANCE MODEL.—Conduct a study
of the extent to which existing programs of Federal
agencies and corporations for compliance with the requirements under the national flood insurance program can serve as a model for other Federal agencies
responsible for enforcing compliance, and submit to
the Congress a report describing the study and any
conclusions.
‘‘(4) RECOMMENDATIONS FOR ENFORCEMENT AND COMPLIANCE PROCEDURES.—Develop recommendations regarding enforcement and compliance procedures,
based on the studies and findings of the Task Force,
and publish such recommendations.
§ 4012
TITLE 42—THE PUBLIC HEALTH AND WELFARE
‘‘(5) STUDY OF DETERMINATION FEES.—Conduct a
study of—
‘‘(A) the reasonableness of fees charged pursuant
to 102(h) of the Flood Disaster Protection Act of
1973 [42 U.S.C. 4012a(h)] for costs of determining
whether the property securing a loan is located in
an area having special flood hazards; and
‘‘(B) whether the fees charged pursuant to such
section by lenders and servicers are greater than
the amounts paid by such lenders and servicers to
persons actually conducting such determinations
and the extent to which the fees exceed such
amounts.
‘‘(d) NONCOMPENSATION.—Members of the Task Force
shall receive no additional pay by reason of their service on the Task Force.
‘‘(e) CHAIRPERSON.—The members of the Task Force
shall elect one member as chairperson of the Task
Force.
‘‘(f) MEETINGS AND ACTION.—The Task Force shall
meet at the call of the chairman or a majority of the
members of the Task Force and may take action by a
vote of the majority of the members. The Federal Insurance Administrator shall coordinate and call the
initial meeting of the Task Force.
‘‘(g) OFFICERS.—The chairperson of the Task Force
may appoint any officers to carry out the duties of the
Task Force under subsection (c).
‘‘(h) STAFF OF FEDERAL AGENCIES.—Upon request of
the chairperson of the Task Force, the head of any of
the Federal agencies and entities referred to under subsection (b)(1) may detail, on a nonreimbursable basis,
any of the personnel of such agency to the Task Force
to assist the Task Force in carrying out its duties
under this section.
‘‘(i) POWERS.—In carrying out this section, the Task
Force may hold hearings, sit and act at times and
places, take testimony, receive evidence and assistance, provide information, and conduct research as the
Task Force considers appropriate.
‘‘(j) TERMINATION.—The Task Force shall terminate
upon the expiration of the 24-month period beginning
upon the designation of the last member to be designated under subsection (b)(1).’’
§ 4012. Scope of program and priorities
(a) Priority for insurance for certain residential
and church properties and business concerns
In carrying out the flood insurance program
the Administrator shall afford a priority to
making flood insurance available to cover residential properties which are designed for the occupancy of from one to four families, church
properties, and business properties which are
owned or leased and operated by small business
concerns.
(b) Availability of insurance for other properties
If on the basis of—
(1) studies and investigations undertaken
and carried out and information received or
exchanged under section 4014 of this title, and
(2) such other information as may be necessary,
the Administrator 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 not described in subsection (a) or (d),
(B) other business properties,
(C) agricultural properties,
Page 5764
(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 Administrator 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.
(d) Availability of insurance for multifamily
properties
(1) In general
The Administrator shall make flood insurance available to cover residential properties
of 5 or more residences. Notwithstanding any
other provision of law, the maximum coverage
amount that the Administrator may make
available under this subsection to such residential properties shall be equal to the coverage amount made available to commercial
properties.
(2) Rule of construction
Nothing in this subsection shall be construed to limit the ability of individuals residing in residential properties of 5 or more residences to obtain insurance for the contents
and personal articles located in such residences.
(Pub. L. 90–448, title XIII, § 1305, Aug. 1, 1968, 82
Stat. 574; Pub. L. 91–152, title IV, § 410(a), Dec. 24,
1969, 83 Stat. 397; Pub. L. 92–213, § 2(c)(1), Dec. 22,
1971, 85 Stat. 775; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, §§ 100204, 100238(b)(1), July
6, 2012, 126 Stat. 916, 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (b), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Page 5765
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Subsec. (b). Pub. L. 112–141, § 100238(b)(1), substituted
‘‘Administrator’’ for ‘‘Director’’ in concluding provisions following par. (2).
Subsec. (b)(A). Pub. L. 112–141, § 100204(1), which directed amendment of subsec. (b)(2)(A) by inserting ‘‘not
described in subsection (a) or (d)’’ after ‘‘properties’’,
was executed by making the insertion in subpar. (A)
following first concluding provisions to reflect the
probable intent of Congress.
Subsec. (c). Pub. L. 112–141, § 100238(b)(1), substituted
‘‘Administrator’’ for ‘‘Director’’ in introductory provisions.
Subsec. (d). Pub. L. 112–141, § 100204(2), added subsec.
(d).
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1971—Subsec. (a). Pub. L. 92–213 inserted reference to
church properties.
1969—Subsec. (c)(2). Pub. L. 91–152 substituted ‘‘December 31, 1971, adequate’’ for ‘‘June 30, 1970, permanent’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 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 Administrator 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 re-
§ 4012a
quired 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—
(A) 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 Administrator as an area having special flood hazards and in which flood insurance has been
made available under the National Flood Insurance Act of 1968 [42 U.S.C. 4001 et seq.],
unless the building or mobile home and any
personal property securing such loan is covered for the term of the loan by flood insurance in an amount at least equal to the outstanding principal balance of the loan or the
maximum limit of coverage made available
under the Act with respect to the particular
type of property, whichever is less; and
(B) to accept private flood insurance as
satisfaction of the flood insurance coverage
requirement under subparagraph (A) if the
coverage provided by such private flood insurance meets the requirements for coverage
under such subparagraph.
(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 Administrator 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)(A). Each
Federal agency lender shall accept private
flood insurance as satisfaction of the flood insurance coverage requirement under the preceding sentence if the flood insurance coverage provided by such private flood insurance
meets the requirements for coverage under
such sentence. Each Federal agency lender
shall issue any regulations necessary to carry
out this paragraph. Such regulations shall be
consistent with and substantially identical to
the regulations issued under paragraph (1)(A).
(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 origina-
§ 4012a
TITLE 42—THE PUBLIC HEALTH AND WELFARE
tion of the loan or at any time during the
term of the loan, by the Administrator 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)(A). The Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation
shall accept private flood insurance as satisfaction of the flood insurance coverage requirement under paragraph (1)(A) if the flood
insurance coverage provided by such private
flood insurance meets the requirements for
coverage under such paragraph and any requirements established by the Federal National Mortgage Association or the Federal
Home Loan Mortgage Corporation, respectively, relating to the financial solvency,
strength, or claims-paying ability of private
insurance companies from which the Federal
National Mortgage Association or the Federal
Home Loan Mortgage Corporation will accept
private flood insurance.
(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 103–325 take effect.
(5) Rule of construction
Nothing in this subsection shall be construed to supersede or limit the authority of a
Federal entity for lending regulation, the Federal Housing Finance Agency, a Federal agency lender, the Federal National Mortgage Association, or the Federal Home Loan Mortgage
Corporation to establish requirements relating
to the financial solvency, strength, or claimspaying ability of private insurance companies
from which the entity or agency will accept
private flood insurance.
(6) Notice
(A) In general
Each lender shall disclose to a borrower
that is subject to this subsection that—
(i) flood insurance is available from private insurance companies that issue stand-
Page 5766
ard flood insurance policies on behalf of
the national flood insurance program or
directly from the national flood insurance
program;
(ii) flood insurance that provides the
same level of coverage as a standard flood
insurance policy under the national flood
insurance program may be available from
a private insurance company that issues
policies on behalf of the company; and
(iii) the borrower is encouraged to compare
the
flood
insurance
coverage,
deductibles, exclusions, conditions and
premiums associated with flood insurance
policies issued on behalf of the national
flood insurance program and policies
issued on behalf of private insurance companies and to direct inquiries regarding
the availability, cost, and comparisons of
flood insurance coverage to an insurance
agent.
(B) Rule of construction
Nothing in this paragraph shall be construed as affecting or otherwise limiting the
authority of a Federal entity for lending
regulation to approve any disclosure made
by a regulated lending institution for purposes of complying with subparagraph (A).
(7) Private flood insurance defined
In this subsection, the term ‘‘private flood
insurance’’ means an insurance policy that—
(A) is issued by an insurance company that
is—
(i) licensed, admitted, or otherwise approved to engage in the business of insurance in the State or jurisdiction in which
the insured building is located, by the insurance regulator of that State or jurisdiction; or
(ii) in the case of a policy of difference in
conditions, multiple peril, all risk, or
other blanket coverage insuring nonresidential commercial property, is 1 recognized, or not disapproved, as a surplus
lines insurer by the insurance regulator of
the State or jurisdiction where the property to be insured is located;
(B) provides flood insurance coverage
which is at least as broad as the coverage
provided under a standard flood insurance
policy under the national flood insurance
program,
including
when
considering
deductibles, exclusions, and conditions offered by the insurer;
(C) includes—
(i) a requirement for the insurer to give
45 days’ written notice of cancellation or
non-renewal of flood insurance coverage
to—
(I) the insured; and
(II) the regulated lending institution
or Federal agency lender;
(ii) information about the availability of
flood insurance coverage under the national flood insurance program;
(iii) a mortgage interest clause similar
to the clause contained in a standard flood
1 So
in original. The word ‘‘is’’ probably should not appear.
Page 5767
TITLE 42—THE PUBLIC HEALTH AND WELFARE
insurance policy under the national flood
insurance program; and
(iv) a provision requiring an insured to
file suit not later than 1 year after date of
a written denial of all or part of a claim
under the policy; and
(D) contains cancellation provisions that
are as restrictive as the provisions contained
in a standard flood insurance policy under
the national flood insurance program.
(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 Administrator. The
Administrator 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) shall not apply
to any loan having—
(A) an original outstanding principal balance of $5,000 or less; and
(B) a repayment term of 1 year or less.
(3) Detached structures
Notwithstanding any other provision of this
section, flood insurance shall not be required,
in the case of any residential property, for any
structure that is a part of such property but is
detached from the primary residential structure of such property and does not serve as a
residence.
(d) Escrow of flood insurance payments
(1) Regulated lending institutions
(A) Federal entities responsible for lending
regulations
Each Federal entity for lending regulation
(after consultation and coordination with
the Federal Financial Institutions Examination Council) shall, by regulation, direct
that all premiums and fees for flood insurance under the National Flood Insurance Act
of 1968, for residential improved real estate
or a mobile home, shall be paid to the regulated lending institution or servicer for any
loan secured by the residential improved
real estate or mobile home, with the same
frequency as payments on the loan are made,
for the duration of the loan. Except as provided in subparagraph (B), upon receipt of
any premiums or fees, the regulated lending
institution or servicer shall deposit such
premiums and fees in an escrow account on
behalf of the borrower. Upon receipt of a notice from the Administrator or the provider
of the flood insurance that insurance premiums are due, the premiums deposited in
the escrow account shall be paid to the provider of the flood insurance.
(B) Limitation
Except as may be required under applicable State law, a Federal entity for lending
regulation may not direct or require a regu-
§ 4012a
lated lending institution to deposit premiums or fees for flood insurance under the
National Flood Insurance Act of 1968 in an
escrow account on behalf of a borrower
under subparagraph (A)—
(i) if—
(I) the regulated lending institution
has total assets of less than $1,000,000,000;
and
(II) on or before July 6, 2012, the regulated lending institution—
(aa) in the case of a loan secured by
residential improved real estate or a
mobile home, was not required under
Federal or State law to deposit taxes,
insurance premiums, fees, or any other
charges in an escrow account for the
entire term of the loan; and
(bb) did not have a policy of consistently and uniformly requiring the deposit of taxes, insurance premiums,
fees, or any other charges in an escrow
account for loans secured by residential improved real estate or a mobile
home; or
(ii) in the case of a loan that—
(I) is in a junior or subordinate position to a senior lien secured by the same
residential improved real estate or mobile home for which flood insurance is
being provided at the time of the origination of the loan;
(II) is secured by residential improved
real estate or a mobile home that is part
of a condominium, cooperative, or other
project development, if the residential
improved real estate or mobile home is
covered by a flood insurance policy
that—
(aa) meets the requirements that the
regulated lending institution is required to enforce under subsection
(b)(1);
(bb) is provided by the condominium
association, cooperative, homeowners
association, or other applicable group;
and
(cc) the premium for which is paid by
the condominium association, cooperative, homeowners association, or other
applicable group as a common expense;
(III) is secured by residential improved
real estate or a mobile home that is used
as collateral for a business purpose;
(IV) is a home equity line of credit;
(V) is a nonperforming loan; or
(VI) has a term of not longer than 12
months.
(2) Federal agency lenders
Each Federal agency lender shall by regulation require and provide for escrow and payment of any flood insurance premiums and
fees relating to residential improved real estate and mobile homes securing loans made by
the Federal agency lender under the circumstances and in the manner provided under
paragraph (1). Any regulations issued under
this paragraph shall be consistent with and
substantially identical to the regulations
issued under paragraph (1).
§ 4012a
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(3) Applicability of RESPA
Escrow accounts established pursuant to
this subsection shall be subject to the provisions of section 10 of the Real Estate Settlement Procedures Act of 1974 [12 U.S.C. 2609].
(4) ‘‘Residential improved real estate’’ defined
For purposes of this subsection, the term
‘‘residential improved real estate’’ means improved real estate for which the improvement
is a residential building.
(5) Applicability
This subsection shall apply only with respect to any loan made, increased, extended,
or renewed after the expiration of the 1-year
period beginning on September 23, 1994.
(e) Placement of flood insurance by lender
(1) Notification to borrower of lack of coverage
If, at the time of origination or at any time
during the term of a loan secured by improved
real estate or by a mobile home located in an
area that has been identified by the Administrator (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), 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), 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, including premiums
or fees incurred for coverage beginning on the
date on which flood insurance coverage lapsed
or did not provide a sufficient coverage
amount.
(3) Termination of force-placed insurance
Within 30 days of receipt by the lender or
servicer of a confirmation of a borrower’s existing flood insurance coverage, the lender or
servicer shall—
(A) terminate any insurance purchased by
the lender or servicer under paragraph (2);
and
(B) refund to the borrower all premiums
paid by the borrower for any insurance purchased by the lender or servicer under paragraph (2) during any period during which the
borrower’s flood insurance coverage and the
insurance coverage purchased by the lender
Page 5768
or servicer were each in effect, and any related fees charged to the borrower with respect to the insurance purchased by the
lender or servicer during such period.
(4) Sufficiency of demonstration
For purposes of confirming a borrower’s existing flood insurance coverage, a lender or
servicer for a loan shall accept from the borrower an insurance policy declarations page
that includes the existing flood insurance policy number and the identity of, and contact
information for, the insurance company or
agent.
(5) 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 Administrator 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
Administrator receives the request, the Administrator 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 Administrator shall be final.
(B) Effect of determination
Any person to whom a borrower provides a
letter issued by the Administrator 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 2 to require the purchase of flood
insurance for such building or mobile home
during the period determined by the Administrator, 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 Administrator 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 2 to require the
purchase of flood insurance for the building
or mobile home securing the loan until such
letter is provided.
(6) Applicability
This subsection shall apply to all loans outstanding on or after September 23, 1994.
(f) Civil monetary penalties for failure to require
flood insurance or notify
(1) Civil monetary penalties against regulated
lenders
Any regulated lending institution that is
found to have a pattern or practice of commit2 See
References in Text note below.
Page 5769
TITLE 42—THE PUBLIC HEALTH AND WELFARE
ting violations under paragraph (2) shall be assessed a civil penalty by the appropriate Federal entity for lending regulation in the
amount provided under paragraph (5).
(2) Lender violations
The violations referred to in paragraph (1)
shall include—
(A) making, increasing, extending, or renewing loans in violation of—
(i) the regulations issued pursuant to
subsection (b) of this section;
(ii) the escrow requirements under subsection (d) of this section; or
(iii) the notice requirements under section 1364 of the National Flood Insurance
Act of 1968 [42 U.S.C. 4104a]; or
(B) failure to provide notice or purchase
flood insurance coverage in violation of subsection (e) of this section.
(3) Civil monetary penalties against GSE’s
(A) In general
If the Federal National Mortgage Association or the Federal Home Loan Mortgage
Corporation is found by the Director of the
Federal Housing Finance Agency to have a
pattern or practice of purchasing loans in
violation of the procedures established pursuant to subsection (b)(3), the Director of
such Office 3 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.
(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 $2,000 for each violation under paragraph (2) or paragraph (3).
(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).
(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.
3 So
in original. Probably should be ‘‘Agency’’.
§ 4012a
(8) Deposit of penalties
Any penalties collected under this subsection shall be paid into the National Flood
Mitigation Fund under section 1367 of the National Flood Insurance Act of 1968 [42 U.S.C.
4104d].
(9) Additional penalties
Any penalty under this subsection shall be
in addition to any civil remedy or criminal
penalty otherwise available.
(10) Statute of limitations
No penalty may be imposed under this subsection after the expiration of the 4-year period beginning on the date of the occurrence of
the violation for which the penalty is authorized under this subsection.
(g) Other actions to remedy pattern of noncompliance
(1) Authority of Federal entities for lending
regulation
A Federal entity for lending regulation may
require a regulated lending institution to take
such remedial actions as are necessary to ensure that the regulated lending institution
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)
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).
(h) Fee for determining location
Notwithstanding any other Federal or State
law, any person who makes a loan secured by
improved real estate or a mobile home or any
servicer for such a loan may charge a reasonable
fee for the costs of determining whether the
building or mobile home securing the loan is located in an area having special flood hazards,
but only in accordance with the following requirements:
(1) Borrower fee
The borrower under such a loan may be
charged the fee, but only if the determination—
(A) is made pursuant to the making, increasing, extending, or renewing of the loan
that is initiated by the borrower;
(B) is made pursuant to a revision or updating under section 1360(f) 4 [42 U.S.C.
4101(f)] of the floodplain areas and flood-risk
4 So in original. Probably should be followed by ‘‘of the National Flood Insurance Act of 1968’’.
§ 4012a
TITLE 42—THE PUBLIC HEALTH AND WELFARE
zones or publication of a notice or compendia under subsection (h) or (i) of section
1360 4 [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 Administrator, 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).
(2) Purchaser or transferee fee
The purchaser or transferee of such a loan
may be charged the fee in the case of sale or
transfer of the loan.
(Pub. L. 93–234, title I, § 102, Dec. 31, 1973, 87 Stat.
978; Pub. L. 98–181, title I [title IV, § 451(e)(1)],
Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103–325, title
V, §§ 522–526, 531, 582(c), Sept. 23, 1994, 108 Stat.
2257–2262, 2267, 2287; Pub. L. 110–289, div. A, title
I, § 1161(e), July 30, 2008, 122 Stat. 2780; Pub. L.
112–141, div. F, title II, §§ 100208, 100209(a),
100238(a)(1), 100239(a), 100244(a), July 6, 2012, 126
Stat. 919, 920, 958, 966; Pub. L. 112–281, § 1, Jan. 14,
2013, 126 Stat. 2485; Pub. L. 113–89, §§ 13(a), 25(a),
Mar. 21, 2014, 128 Stat. 1026, 1030.)
Editorial Notes
REFERENCES IN TEXT
The National Flood Insurance Act of 1968, referred to
in subsecs. (a), (b), (d)(1), and (e)(1), and the Act, referred to in subsec. (b), is title XIII of Pub. L. 90–448,
Aug. 1, 1968, 82 Stat. 572, as amended, which is classified
principally to this chapter (§ 4001 et seq.). For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
The Federal Financial Institutions Examination
Council Act of 1974, referred to in subsec. (b)(1), probably means the Federal Financial Institutions Examination Council Act of 1978, Pub. L. 95–630, title X, Nov.
10, 1978, 92 Stat. 3694, which is classified principally to
chapter 34 (§ 3301 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code,
see Short Title note set out under section 3301 of Title
12 and Tables.
Section 522(a) of Public Law 103–325, referred to in
subsec. (b)(4)(C), was in original ‘‘section 522(a) of such
Act’’, which generally amended subsec. (b) of this section.
This title, referred to in subsec. (e)(5)(B), (C), means
title I of Pub. L. 93–234, Dec. 31, 1973, 87 Stat. 977, which
enacted this section and section 4104 of this title and
amended sections 4001, 4013 to 4016, 4026, 4054, 4056, and
4121 of this title.
CODIFICATION
Section was enacted as part of the Flood Disaster
Protection Act of 1973, and not as part of the National
Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
2014—Subsec. (c)(3). Pub. L. 113–89, § 13(a), added par.
(3).
Subsec. (d)(1)(A). Pub. L. 113–89, § 25(a)(1), substituted
‘‘subparagraph (B)’’ for ‘‘subparagraph (C)’’.
Subsec. (d)(1)(B). Pub. L. 113–89, § 25(a)(2), substituted
‘‘under subparagraph (A)—’’ for ‘‘under subparagraph
(A) or (B), if—’’ in introductory provisions, designated
existing provisions as cl. (i) and inserted ‘‘if—’’ after cl.
(i) designation, redesignated former cls. (i) and (ii) as
subcls. (I) and (II), respectively, of cl. (i), redesignated
Page 5770
former subcls. (I) and (II) as items (aa) and (bb), respectively, of subcl. (II), and added cl. (ii).
2013—Subsec. (d)(1)(A). Pub. L. 112–281 inserted ‘‘residential’’ before ‘‘improved real estate’’ in two places.
2012—Subsec. (a). Pub. L. 112–141, § 100238(a)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Subsec. (b)(1). Pub. L. 112–141, § 100239(a)(1), substituted ‘‘; and’’ for period at end, substituted ‘‘institutions—’’ for ‘‘institutions’’, inserted subpar. (A) designation before ‘‘not to make’’, and added subpar. (B).
Pub. L. 112–141, § 100238(a)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Subsec. (b)(2). Pub. L. 112–141, § 100239(a)(2), substituted ‘‘paragraph (1)(A)’’ for ‘‘paragraph (1)’’ in two
places and inserted ‘‘Each Federal agency lender shall
accept private flood insurance as satisfaction of the
flood insurance coverage requirement under the preceding sentence if the flood insurance coverage provided by such private flood insurance meets the requirements for coverage under such sentence.’’ after
first sentence.
Pub. L. 112–141, § 100238(a)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Subsec. (b)(3). Pub. L. 112–141, § 100239(a)(3), substituted ‘‘paragraph (1)(A). The Federal National Mortgage Association and the Federal Home Loan Mortgage
Corporation shall accept private flood insurance as satisfaction of the flood insurance coverage requirement
under paragraph (1)(A) if the flood insurance coverage
provided by such private flood insurance meets the requirements for coverage under such paragraph and any
requirements established by the Federal National
Mortgage Association or the Federal Home Loan Mortgage Corporation, respectively, relating to the financial solvency, strength, or claims-paying ability of private insurance companies from which the Federal National Mortgage Association or the Federal Home Loan
Mortgage Corporation will accept private flood insurance.’’ for ‘‘paragraph (1).’’ in concluding provisions.
Subsec. (b)(3)(A). Pub. L. 112–141, § 100238(a)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Subsec. (b)(5) to (7). Pub. L. 112–141, § 100239(a)(4),
added pars. (5) to (7).
Subsec. (c)(1). Pub. L. 112–141, § 100238(a)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ in two places.
Subsec. (d)(1). Pub. L. 112–141, § 100238(a)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Pub. L. 112–141, § 100209(a), amended par. (1) generally.
Prior to amendment, text read as follows: ‘‘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 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 Administrator 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.’’
Subsec. (e)(1). Pub. L. 112–141, § 100238(a)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Subsec. (e)(2). Pub. L. 112–141, § 100244(a)(1), substituted ‘‘purchasing the insurance, including premiums or fees incurred for coverage beginning on the
date on which flood insurance coverage lapsed or did
not provide a sufficient coverage amount’’ for ‘‘purchasing the insurance’’.
Subsec. (e)(3). Pub. L. 112–141, § 100244(a)(3), added par.
(3). Former par. (3) redesignated (5).
Subsec. (e)(3). Pub. L. 112–141, § 100238(a)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ wherever appearing.
Page 5771
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Subsec. (e)(4) to (6). Pub. L. 112–141, § 100244(a)(2), (3),
added par. (4) and redesignated former pars. (3) and (4)
as (5) and (6), respectively.
Subsec. (f)(5). Pub. L. 112–141, § 100208, substituted
‘‘$2,000’’ for ‘‘$350’’ and struck out at end ‘‘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.’’
Subsec. (h)(1)(B). Pub. L. 112–141, § 100238(a)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
2008—Subsec. (f)(3)(A). Pub. L. 110–289 substituted
‘‘Director of the Federal Housing Finance Agency’’ for
‘‘Director of the Office of Federal Housing Enterprise
Oversight of the Department of Housing and Urban Development’’.
1994—Pub. L. 103–325, § 531, substituted section catchline for former section catchline.
Subsec. (a). Pub. L. 103–325, § 582(c), struck out
‘‘, during the anticipated economic or useful life of the
project,’’ before ‘‘covered by flood insurance’’ and inserted at end ‘‘The requirement of maintaining flood
insurance shall apply during the life of the property,
regardless of transfer of ownership of such property.’’
Subsec. (b). Pub. L. 103–325, § 522(a), amended subsec.
(b) generally. Prior to amendment, subsec. (b) read as
follows: ‘‘Each Federal instrumentality responsible for
the supervision, approval, regulation, or insuring of
banks, savings and loan associations, or similar institutions shall by regulation direct such institutions not
to make, increase, extend, or renew after the expiration
of sixty days following December 31, 1973, any loan secured by improved real estate or a mobile home located
or to be located in an area that has been identified by
the Director as an area having special flood hazards
and in which flood insurance has been made available
under the National Flood Insurance Act of 1968, unless
the building or mobile home and any personal property
securing such loan is covered for the term of the loan
by flood insurance in an amount at least equal to the
outstanding principal balance of the loan or to the
maximum limit of coverage made available with respect to the particular type of property under the Act,
whichever is less.’’
Subsec. (c). Pub. L. 103–325, § 522(b), inserted heading,
designated existing provisions as par. (1), inserted par.
(1) heading, and added par. (2).
Subsecs. (d) to (h). Pub. L. 103–325, §§ 523–526, added
subsecs. (d) to (h).
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2014 AMENDMENT
Pub. L. 113–89, § 25(b)(1), Mar. 21, 2014, 128 Stat. 1031,
provided that:
‘‘(1) IN GENERAL.—
‘‘(A) REQUIRED APPLICATION.—The amendments to
section 102(d)(1) of the Flood Disaster Protection Act
of 1973 (42 U.S.C. 4012a(d)(1)) made by section 100209(a)
of the Biggert-Waters Flood Insurance Reform Act of
2012 (Public Law 112–141; 126 Stat. 920) and by subsection (a) of this section shall apply to any loan that
is originated, refinanced, increased, extended, or renewed on or after January 1, 2016.
‘‘(B) OPTIONAL APPLICATION.—
‘‘(i) DEFINITIONS.—In this subparagraph—
‘‘(I) the terms ‘Federal entity for lending regulation’, ‘improved real estate’, ‘regulated lending
institution’, and ‘servicer’ have the meanings
given the terms in section 3 of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4003);
‘‘(II) the term ‘outstanding loan’ means a loan
that—
‘‘(aa) is outstanding as of January 1, 2016;
‘‘(bb) is not subject to the requirement to escrow premiums and fees for flood insurance
under section 102(d)(1) of the Flood Disaster
§ 4012a
Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) as
in effect on July 5, 2012; and
‘‘(cc) would, if the loan had been originated,
refinanced, increased, extended, or renewed on
or after January 1, 2016, be subject to the requirements under section 102(d)(1)(A) of the
Flood Disaster Protection Act of 1973, as
amended; and
‘‘(III) the term ‘section 102(d)(1)(A) of the Flood
Disaster Protection Act of 1973, as amended’
means section 102(d)(1)(A) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4012a(d)(1)(A)), as
amended by—
‘‘(aa) section 100209(a) of the Biggert-Waters
Flood Insurance Reform Act of 2012 (Public Law
112–141; 126 Stat. 920); and
‘‘(bb) subsection (a) of this section.
‘‘(ii) OPTION TO ESCROW FLOOD INSURANCE PAYMENTS.—Each Federal entity for lending regulation
(after consultation and coordination with the Federal Financial Institutions Examination Council)
shall, by regulation, direct that each regulated
lending institution or servicer of an outstanding
loan shall offer and make available to a borrower
the option to have the borrower’s payment of premiums and fees for flood insurance under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.), including the escrow of such payments, be
treated in the same manner provided under section
102(d)(1)(A) of the Flood Disaster Protection Act of
1973, as amended.’’
EFFECTIVE DATE OF 2012 AMENDMENT
Pub. L. 112–141, div. F, title II, § 100209(b), July 6, 2012,
126 Stat. 920, which provided that the amendment made
to this section by section 100209(a) of Pub. L. 112–141
would apply to any mortgage outstanding or entered
into on or after the expiration of the 2-year period beginning on July 6, 2012, was repealed by Pub. L. 113–89,
§ 25(b)(2), Mar. 21, 2014, 128 Stat. 1032. For effective date
of amendment by section 100209(a) of Pub. L. 112–141,
see Effective Date of 2014 Amendment note above.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by section 582(c) of Pub. L. 103–325 applicable to disasters declared after Sept. 23, 1994, see section 5154a(e) of this title.
RULE OF CONSTRUCTION
Pub. L. 113–89, § 25(b)(3), Mar. 21, 2014, 128 Stat. 1032,
provided that: ‘‘Nothing in this section [amending this
section and enacting and repealing provisions set out
as notes under this section] or the amendments made
by this section shall be construed to supersede, during
the period beginning on July 6, 2012 and ending on December 31, 2015, the requirements under section 102(d)(1)
of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a(d)(1)), as in effect on July 5, 2012.’’
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4013
TITLE 42—THE PUBLIC HEALTH AND WELFARE
TREATMENT OF FLOODPROOFED RESIDENTIAL
BASEMENTS
Pub. L. 113–89, § 21, Mar. 21, 2014, 128 Stat. 1028, provided that: ‘‘The Administrator [of the Federal Emergency Management Agency] shall continue to extend
exceptions and variances for flood-proofed basements
consistent with section 60.6 of title 44, Code of Federal
Regulations, which are effective April 3, 2009; and section 60.3 of such title, which are effective April 3, 2009.’’
§ 4013. Nature and limitation of insurance coverage
(a) Regulations respecting general terms and
conditions of insurability
The Administrator 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), such regulations shall provide that—
(1) any flood insurance coverage based on
chargeable premium rates under section 4015
of this title which are less than the estimated
premium rates under section 4014(a)(1) of this
title shall not exceed—
(A) in the case of residential properties—
(i) $35,000 aggregate liability for any single-family dwelling, and $100,000 for any
residential structure containing more than
one dwelling unit,
(ii) $10,000 aggregate liability per dwelling unit for any contents related to such
unit, and
(iii) in the States of Alaska and Hawaii,
and in the Virgin Islands and Guam; the
limits provided in clause (i) of this sentence shall be: $50,000 aggregate liability
for any single-family dwelling, and $150,000
for any residential structure containing
more than one dwelling unit;
(B) in the case of business properties which
are owned or leased and operated by small
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 Administrator), which shall
Page 5772
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
Administrator; 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 building designed for the occupancy of from 1 to 4 families 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, with respect to any
single such building, up to an aggregate liability (including such limits specified in paragraph (1)(A)(i)) of $250,000;
(3) in the case of any residential property for
which the risk premium rate is determined in
accordance with the provisions of section
4014(a)(1) of this title, additional flood insurance in excess of the limits specified in clause
(ii) of subparagraph (A) of paragraph (1) shall
be made available to every insured upon renewal and every applicant for insurance so as
to enable any such insured or applicant to receive coverage up to a total amount (including
such limits specified in paragraph (1)(A)(ii)) of
$100,000;
(4) in the case of any nonresidential building, including a church, 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 with respect to any single such building, up to an aggregate liability (including such limits specified in subparagraph (B) or (C) of paragraph
(1), as applicable) of $500,000, and coverage
shall be made available up to a total of $500,000
aggregate liability for contents owned by the
building owner and $500,000 aggregate liability
for each unit within the building for contents
owned by the tenant; 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
Page 5773
TITLE 42—THE PUBLIC HEALTH AND WELFARE
coverage under this chapter entered into after
September 23, 1994, and any modification to
coverage under an existing flood insurance
contract made after September 23, 1994, shall
become effective upon the expiration of the 30day period beginning on the date that all obligations for such coverage (including completion of the application and payment of any
initial premiums owed) are satisfactorily completed.
(2) Exception
The provisions of paragraph (1) shall not
apply to—
(A) the initial purchase of flood insurance
coverage under this chapter when the purchase of insurance is in connection with the
making, increasing, extension, or renewal of
a loan;
(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;
or
(C) the initial purchase of flood insurance
coverage for private property if—
(i) the Administrator determines that
the property is affected by flooding on
Federal land that is a result of, or is exacerbated by, post-wildfire conditions, after
consultation with an authorized employee
of the Federal agency that has jurisdiction
of the land on which the wildfire that
caused the post-wildfire conditions occurred; and
(ii) the flood insurance coverage was purchased not later than 60 days after the fire
containment date, as determined by the
appropriate Federal employee, relating to
the wildfire that caused the post-wildfire
conditions described in clause (i).
(d) Optional high-deductible policies for residential properties
(1) Availability
In the case of residential properties, the Administrator shall make flood insurance coverage available, at the option of the insured,
that provides for a loss-deductible for damage
to the covered property in various amounts,
up to and including $10,000.
(2) Disclosure
(A) Form
The Administrator shall provide the information described in subparagraph (B) clearly
and conspicuously on the application form
for flood insurance coverage or on a separate
form, segregated from all unrelated information and other required disclosures.
(B) Information
The information described in this subparagraph is—
(i) information sufficient to inform the
applicant of the availability of the coverage option required by paragraph (1) to
applicants for flood insurance coverage;
and
§ 4013
(ii) a statement explaining the effect of a
loss-deductible and that, in the event of an
insured loss, the insured is responsible outof-pocket for losses to the extent of the deductible selected.
(Pub. L. 90–448, title XIII, § 1306, Aug. 1, 1968, 82
Stat. 575; Pub. L. 92–213, § 2(c)(2), Dec. 22, 1971, 85
Stat. 775; Pub. L. 93–234, title I, § 101, Dec. 31,
1973, 87 Stat. 977; Pub. L. 95–128, title VII,
§ 704(a), Oct. 12, 1977, 91 Stat. 1145; Pub. L. 98–181,
title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat.
1229; Pub. L. 100–242, title V, § 544(a), Feb. 5, 1988,
101 Stat. 1940; Pub. L. 100–628, title X, § 1086(a),
Nov. 7, 1988, 102 Stat. 3278; Pub. L. 100–707, title
I, § 109(o), Nov. 23, 1988, 102 Stat. 4709; Pub. L.
101–137, § 1(c), Nov. 3, 1989, 103 Stat. 824; Pub. L.
101–508, title II, § 2302(d), Nov. 5, 1990, 104 Stat.
1388–23; Pub. L. 103–325, title V, §§ 552(a), 573,
579(a), Sept. 23, 1994, 108 Stat. 2269, 2278, 2284;
Pub. L. 112–141, div. F, title II, §§ 100228,
100238(b)(1), 100241, July 6, 2012, 126 Stat. 944, 958,
962; Pub. L. 113–89, § 12, Mar. 21, 2014, 128 Stat.
1025.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a)(6) and (c)(1),
(2)(A), was in the original a reference to ‘‘this title’’
meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82
Stat. 572, known as the National Flood Insurance Act of
1968, which is classified principally to this chapter. For
complete classification of this Act to the Code, see
Short Title note set out under section 4001 of this title
and Tables.
AMENDMENTS
2014—Subsec. (d). Pub. L. 113–89 added subsec. (d).
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ in introductory provisions.
Subsec. (b)(1)(B). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ in two places.
Subsec. (b)(2). Pub. L. 112–141, § 100228(1), substituted
‘‘in the case of any residential building designed for the
occupancy of from 1 to 4 families’’ for ‘‘in the case of
any residential property’’ and ‘‘shall be made available,
with respect to any single such building, up to an aggregate liability (including such limits specified in
paragraph (1)(A)(i)) of $250,000’’ for ‘‘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’’.
Subsec. (b)(4). Pub. L. 112–141, § 100228(2), substituted
‘‘in the case of any nonresidential building, including a
church,’’ for ‘‘in the case of any nonresidential property, including churches,’’ and ‘‘shall be made available
with respect to any single such building, up to an aggregate liability (including such limits specified in subparagraph (B) or (C) of paragraph (1), as applicable) of
$500,000, and coverage shall be made available up to a
total of $500,000 aggregate liability for contents owned
by the building owner and $500,000 aggregate liability
for each unit within the building for contents owned by
the tenant’’ for ‘‘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’’.
Subsec. (c)(2)(C). Pub. L. 112–141, § 100241, added subpar. (C).
1994—Subsec. (b)(2). Pub. L. 103–325, § 573(a)(1), substituted ‘‘a total amount (including such limits speci-
§ 4013a
TITLE 42—THE PUBLIC HEALTH AND WELFARE
fied in paragraph (1)(A)(i)) of $250,000’’ for ‘‘an amount
of $150,000 under the provisions of this clause’’.
Subsec. (b)(3). Pub. L. 103–325, § 573(a)(2), substituted
‘‘a total amount (including such limits specified in
paragraph (1)(A)(ii)) of $100,000’’ for ‘‘an amount of
$50,000 under the provisions of this clause’’.
Subsec. (b)(4). Pub. L. 103–325, § 573(a)(3), added par. (4)
and struck out former par. (4) which read as follows:
‘‘in the case of business property owned, leased, or operated by small business concerns for which the risk
premium rate is determined in accordance with the
provisions of section 4014(a)(1) of this title, additional
flood insurance in excess of the limits specified in subparagraph (B) of paragraph (1) shall be made available
to every such owner, lessee, or operator in respect to
any single structure, including any contents thereof,
related to premises of small business occupants (as that
term is defined by the Director), up to an amount equal
to (i) $250,000 plus (ii) $200,000 multiplied by the number
of such occupants which coverage shall be allocated
among such occupants (or among the occupant or occupants and the owner) in accordance with the regulations prescribed by the Director pursuant to such subparagraph (B), except that the aggregate liability for
the structure itself may in no case exceed $250,000;’’.
Subsec. (b)(5). Pub. L. 103–325, § 573(b)(1), substituted a
period for ‘‘; and’’ at end.
Subsec. (b)(6). Pub. L. 103–325, § 573(b)(2), struck out
par. (6) which read as follows: ‘‘the flood insurance purchase requirements of section 4012a of this title do not
apply to the additional flood insurance limits made
available in excess of twice the limits made available
under paragraph (1).’’
Subsec. (c). Pub. L. 103–325, § 579(a), added subsec. (c).
Pub. L. 103–325, § 552(a), struck out subsec. (c) which
related to schedule for payment of flood insurance for
structures on land subject to imminent collapse or subsidence.
1990—Subsec. (c)(7). Pub. L. 101–508 substituted ‘‘September 30, 1995’’ for ‘‘September 30, 1991’’.
1989—Subsec. (c)(7). Pub. L. 101–137 substituted ‘‘September 30, 1991’’ for ‘‘September 30, 1989’’.
1988—Subsec. (c). Pub. L. 100–242 added subsec. (c).
Subsec. (c)(1)(A). Pub. L. 100–628 substituted ‘‘following’’ for ‘‘Following’’ in cls. (i) and (ii).
Subsec. (c)(5). Pub. L. 100–707 substituted ‘‘Disaster
Relief and Emergency Assistance Act’’ for ‘‘Disaster
Relief Act of 1974’’.
1983—Subsecs. (a), (b)(1)(B), (4). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1977—Subsec. (b)(2). Pub. L. 95–128 added par. (2) and
redesignated former par. (2) as (5).
Subsec. (b)(3), (4). Pub. L. 95–128 added pars. (3) and
(4).
Subsec. (b)(5). Pub. L. 95–128 redesignated former par.
(2) as (5), struck out ‘‘(or allocated to any person under
subparagraph (B) of such paragraph)’’ after ‘‘paragraph
(1)’’, and inserted ‘‘under paragraph (1)(C), (2), (3), or
(4), as applicable’’ after ‘‘(or allocated)’’.
Subsec. (b)(6). Pub. L. 95–128 added par. (6).
1973—Subsec. (b)(1)(A). Pub. L. 93–234, § 101(a), in increasing limits of coverage, struck out following introductory text ‘‘residential properties’’ the clause ‘‘which
are designed for the occupancy of from one to four families’’; substituted provisions in cl. (i) ‘‘$35,000 aggregate liability for any single-family dwelling, and
$100,000 for any residential structure containing more
than one dwelling unit’’ for ‘‘$17,500 aggregate liability
for any dwelling unit, and $30,000 for any single dwelling structure containing more than one dwelling unit’’;
increased cl. (ii) limits to $10,000 from $5,000 and added
cl. (iii).
Subsec. (b)(1)(B). Pub. L. 93–234, § 101(b), substituted
‘‘$100,000’’ for ‘‘$30,000’’ in cl. (i), for ‘‘$5,000’’ in cl. (ii),
and for ‘‘$30,000’’ in exception provision.
Subsec. (b)(1)(C). Pub. L. 93–234, § 101(c), increased cl.
(i) limits to $100,000 from $30,000 and substituted cl. (ii)
‘‘$100,000 aggregate liability per unit for any contents
related to such unit’’ for ‘‘$5,000 aggregate liability per
Page 5774
dwelling unit for any contents related to such unit in
the case of residential properties, or per occupant (as
that term is defined by the Secretary) for any contents
related to the premises occupied in the case of any
other properties’’.
1971—Subsec. (b)(1)(C). Pub. L. 92–213 inserted
‘‘church properties, and’’ before ‘‘any other properties
which may become’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1988 AMENDMENT
Pub. L. 100–242, title V, § 544(b), Feb. 5, 1988, 101 Stat.
1942, provided that: ‘‘The amendment made by this section [amending this section] shall become effective on
the date of the enactment of this Act [Feb. 5, 1988].’’
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
SAVINGS PROVISION
Pub. L. 103–325, title V, § 552(c), Sept. 23, 1994, 108 Stat.
2269, required the Director of the Federal Emergency
Management Agency to make payments under flood insurance contracts based on commitments made before
the expiration of the 1-year period beginning on Sept.
23, 1994, pursuant to the authority under subsec. (c) of
this section or section 552(b) of Pub. L. 103–325, formerly set out below.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
TRANSITION PHASE
Pub. L. 103–325, title V, § 552(b), Sept. 23, 1994, 108
Stat. 2269, permitted the Director of the Federal Emergency Management Agency to pay amounts under flood
insurance contracts for demolition or relocation of
structures as provided in subsec. (c) of this section (as
in effect immediately before the enactment of Pub. L.
103–325), during the 1-year period beginning on Sept. 23,
1994.
§ 4013a. Policy disclosures
(a) In general
Notwithstanding any other provision of law, in
addition to any other disclosures that may be
required, each policy under the National Flood
Insurance Program shall state all conditions,
exclusions, and other limitations pertaining to
coverage under the subject policy, regardless of
the underlying insurance product, in plain
English, in boldface type, and in a font size that
is twice the size of the text of the body of the
policy.
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
(b) Violations
The Administrator may impose a civil penalty
of not more than $50,000 on any person that fails
to comply with subsection (a).
(Pub. L. 112–141, div. F, title II, § 100234, July 6,
2012, 126 Stat. 956.)
Editorial Notes
CODIFICATION
Section was enacted as part of the Biggert-Waters
Flood Insurance Reform Act of 2012, and also as part of
the Moving Ahead for Progress in the 21st Century Act,
also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this
chapter.
Statutory Notes and Related Subsidiaries
DEFINITIONS
For definitions of terms used in this section, see section 4004 of this title.
§ 4014. Estimates of premium rates
(a) Studies and investigations
The Administrator 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—
(i) the risk involved and accepted actuarial principles; and
(ii) the flood mitigation activities that
an owner or lessee has undertaken on a
property, including differences in the risk
involved due to land use measures,
floodproofing, flood forecasting, and similar measures, 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,
(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,
and
(iv) all costs, as prescribed by principles
and standards of practice in ratemaking
adopted by the American Academy of Actuaries and the Casualty Actuarial Society, including—
(I) an estimate of the expected value of
future costs,
§ 4014
(II) all costs associated with the transfer of risk, and
(III) the costs associated with an individual risk transfer with respect to risk
classes, as defined by the Administrator,
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), except that the Administrator
shall not estimate rates under this paragraph
for—
(A) any residential property which is not
the primary residence of an individual;
(B) any severe repetitive loss property;
(C) any property that has incurred floodrelated damage in which the cumulative
amounts of payments under this chapter
equaled or exceeded the fair market value of
such property;
(D) any business property; or
(E) any property which on or after July 6,
2012, has experienced or sustained—
(i) substantial damage exceeding 50 percent of the fair market value of such property; or
(ii) substantial improvement exceeding
50 percent of the fair market value of such
property; 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), the Administrator 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 Administrator 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.
§ 4014
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(d) Parishes of Louisiana; premium rates
Notwithstanding any other provision of law,
any structure existing on December 31, 1973, and
located within Avoyelles, Evangeline, Rapides,
or Saint Landry Parish in the State of Louisiana, which the Secretary determines is subject to additional flood hazards as a result of the
construction or operation of the Atchafalaya
Basin Levee System, shall be eligible for flood
insurance under this chapter (if and to the extent it is eligible for such insurance under the
other provisions of this chapter) at premium
rates that shall not exceed those which would be
applicable if such additional hazards did not
exist.
(e) Eligibility of community making adequate
progress on construction of flood protection
system for rates not exceeding those applicable to completed flood protection system; determination of adequate progress
Notwithstanding any other provision of law,
any community that has made adequate
progress, acceptable to the Administrator, on
the construction or reconstruction of a flood
protection system which will afford flood protection for the one-hundred year frequency flood
as determined by the Administrator, 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 Administrator shall find that adequate
progress on the construction or reconstruction
of a flood protection system, based on the
present value of the completed flood protection
system, has been made only if: (1) 100 percent of
the cost of the system has been authorized; (2)
at least 60 percent of the cost of the system has
been appropriated; (3) at least 50 percent of the
cost of the system has been expended; and (4)
the system is at least 50 percent completed. Notwithstanding any other provision of law, in determining whether a community has made adequate progress on the construction, reconstruction, or improvement of a flood protection system, the Administrator shall consider all
sources of funding, including Federal, State, and
local funds.
(f) Availability of flood insurance in communities
restoring disaccredited flood protection systems; criteria; rates
Notwithstanding any other provision of law,
this subsection shall apply to riverine and coastal levees that are located in a community which
has been determined by the Administrator of
the Federal Emergency Management Agency to
be in the process of restoring flood protection
afforded by a flood protection system that had
been previously accredited on a Flood Insurance
Rate Map as providing 100-year frequency flood
protection but no longer does so, and shall apply
without regard to the level of Federal funding of
or participation in the construction, reconstruction, or improvement of the flood protection
system. Except as provided in this subsection, in
such a community, flood insurance shall be
made available to those properties impacted by
Page 5776
the disaccreditation of the flood protection system at premium rates that do not exceed those
which would be applicable to any property located in an area of special flood hazard, the construction of which was started prior to the effective date of the initial Flood Insurance Rate
Map published by the Administrator for the
community in which such property is located. A
revised Flood Insurance Rate Map shall be prepared for the community to delineate as Zone
AR the areas of special flood hazard that result
from the disaccreditation of the flood protection
system. A community will be considered to be in
the process of restoration if—
(1) the flood protection system has been
deemed restorable by a Federal agency in consultation with the local project sponsor;
(2) a minimum level of flood protection is
still provided to the community by the
disaccredited system; and
(3) restoration of the flood protection system is scheduled to occur within a designated
time period and in accordance with a progress
plan negotiated between the community and
the Federal Emergency Management Agency.
Communities that the Administrator of the Federal Emergency Management Agency determines to meet the criteria set forth in paragraphs (1) and (2) as of January 1, 1992, shall not
be subject to revised Flood Insurance Rate Maps
that contravene the intent of this subsection.
Such communities shall remain eligible for C
zone rates for properties located in zone AR for
any policy written prior to promulgation of
final regulations for this section. Floodplain
management criteria for such communities shall
not require the elevation of improvements to 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 Administrator of the Federal Emergency
Management Agency shall develop and promulgate regulations to implement this subsection,
including minimum floodplain management criteria, within 24 months after October 28, 1992.
(g) No extension of subsidy to new policies or
lapsed policies
The Administrator shall not provide flood insurance to prospective insureds at rates less
than those estimated under subsection (a)(1), as
required by paragraph (2) of that subsection,
for—
(1) any policy under the flood insurance program that has lapsed in coverage,,1 unless the
decision of the policy holder to permit a lapse
in flood insurance coverage was as a result of
the property covered by the policy no longer
being required to retain such coverage; or
(2) any prospective insured who refuses to
accept any offer for mitigation assistance by
the Administrator (including an offer to relo1 So
in original.
Page 5777
TITLE 42—THE PUBLIC HEALTH AND WELFARE
cate), including an offer of mitigation assistance—
(A) following a major disaster, as defined
in section 5122 of this title; or
(B) in connection with—
(i) a repetitive loss property; or
(ii) a severe repetitive loss property.
(h) Definition
In this section, the term ‘‘severe repetitive
loss property’’ has the following meaning:
(1) Single-family properties
In the case of a property consisting of 1 to 4
residences, such term means a property that—
(A) is covered under a contract for flood
insurance made available under this chapter;
and
(B) has incurred flood-related damage—
(i) for which 4 or more separate claims
payments have been made under flood insurance coverage under this subchapter,
with the amount of each such claim exceeding $5,000, and with the cumulative
amount of such claims payments exceeding $20,000; or
(ii) for which at least 2 separate claims
payments have been made under such coverage, with the cumulative amount of such
claims exceeding the value of the property.
(2) Multifamily properties
In the case of a property consisting of 5 or
more residences, such term shall have such
meaning as the Director 2 shall by regulation
provide.
(Pub. L. 90–448, title XIII, § 1307, Aug. 1, 1968, 82
Stat. 576; Pub. L. 93–234, title I, § 109, Dec. 31,
1973, 87 Stat. 980; Pub. L. 93–383, title VIII,
§ 816(b), Aug. 22, 1974, 88 Stat. 739; Pub. L. 98–181,
title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat.
1229; Pub. L. 101–508, title II, § 2302(e)(1), Nov. 5,
1990, 104 Stat. 1388–24; Pub. L. 102–550, title IX,
§ 928, Oct. 28, 1992, 106 Stat. 3886; Pub. L. 112–123,
§ 2(a), May 31, 2012, 126 Stat. 365; Pub. L. 112–141,
div. F, title II, §§ 100205(a)(1), (b), 100238(b)(1),
July 6, 2012, 126 Stat. 917, 918, 958; Pub. L. 113–89,
§§ 3(a)(1), 14, 15, 19, Mar. 21, 2014, 128 Stat. 1021,
1026, 1027.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a)(2), (d), (e),
and (h)(1)(A), was in the original a reference to ‘‘this
title’’ meaning title XIII of Pub. L. 90–448, Aug. 1, 1968,
82 Stat. 572, known as the National Flood Insurance Act
of 1968, which is classified principally to this chapter.
For complete classification of this Act to the Code, see
Short Title note set out under section 4001 of this title
and Tables.
AMENDMENTS
2014—Subsec. (a)(1)(A). Pub. L. 113–89, § 14, amended
subpar. (A) generally. Prior to amendment, subpar. (A)
read as follows: ‘‘based on consideration of the risk involved and accepted actuarial principles, and’’.
Subsec. (a)(2)(E)(ii). Pub. L. 113–89, § 15, substituted
‘‘50 percent’’ for ‘‘30 percent’’.
Subsec. (e). Pub. L. 113–89, § 19(a)(3), inserted before
period at end ‘‘Notwithstanding any other provision of
2 So
in original. Probably means ‘‘Administrator’’.
§ 4014
law, in determining whether a community has made
adequate progress on the construction, reconstruction,
or improvement of a flood protection system, the Administrator shall consider all sources of funding, including Federal, State, and local funds.’’
Pub. L. 113–89, § 19(a)(1), (2), inserted ‘‘or reconstruction’’ after ‘‘construction’’ in first sentence and amended second sentence generally. Prior to amendment, second sentence read as follows: ‘‘The Administrator 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.’’
Subsec. (f). Pub. L. 113–89, § 19(b), amended first sentence generally. Prior to amendment, first sentence
read as follows: ‘‘Notwithstanding any other provision
of law, this subsection shall only apply in a community
which has been determined by the Administrator of the
Federal Emergency Management Agency to be in the
process of restoring flood protection afforded by a flood
protection system that had been previously accredited
on a Flood Insurance Rate Map as providing 100-year
frequency flood protection but no longer does so.’’
Subsec. (g). Pub. L. 113–89, § 3(a)(1), redesignated pars.
(3) and (4) as (1) and (2), respectively, substituted
‘‘, unless the decision of the policy holder to permit a
lapse in flood insurance coverage was as a result of the
property covered by the policy no longer being required
to retain such coverage’’ for ‘‘as a result of the deliberate choice of the holder of such policy’’ in par. (1) as
redesignated, and struck out former pars. (1) and (2),
which read as follows:
‘‘(1) any property not insured by the flood insurance
program as of July 6, 2012;
‘‘(2) any property purchased after July 6, 2012;’’.
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ in introductory provisions.
Subsec. (a)(1)(B)(iv). Pub. L. 112–141, § 100205(b), added
cl. (iv).
Subsec. (a)(2). Pub. L. 112–141, § 100205(a)(1)(A), substituted ‘‘for—’’ for ‘‘for any residential property which
is not the primary residence of an individual; and’’ and
added subpars. (A) to (E).
Pub. L. 112–123 inserted ‘‘, except that the Administrator shall not estimate rates under this paragraph for
any residential property which is not the primary residence of an individual’’ before ‘‘; and’’.
Subsecs. (b), (c), (e), (f). Pub. L. 112–141, § 100238(b)(1),
substituted ‘‘Administrator’’ for ‘‘Director’’ wherever
appearing.
Subsecs. (g), (h). Pub. L. 112–141, § 100205(a)(1)(B),
added subsecs. (g) and (h).
1992—Subsec. (f). Pub. L. 102–550 added subsec. (f).
1990—Subsec.
(a)(1)(B)(iii).
Pub.
L.
101–508,
§ 2302(e)(1)(A)–(C), added cl. (iii).
Subsec. (a)(2). Pub. L. 101–508, § 2302(e)(1)(D), inserted
before semicolon ‘‘, and which, together with a fee
charged to policyholders that shall not be not subject
to any agents’ commission, company expenses allowances, or State or local premium taxes, shall include
any administrative expenses incurred in carrying out
the flood insurance and floodplain management programs (including the costs of mapping activities under
section 4101 of this title)’’.
1983—Subsecs. (a) to (c), (e). Pub. L. 98–181 substituted
‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1974—Subsec. (e). Pub. L. 93–383 added subsec. (e).
1973—Subsec. (d). Pub. L. 93–234 added subsec. (d).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2012 AMENDMENT
Pub. L. 112–141, div. F, title II, § 100205(a)(2), July 6,
2012, 126 Stat. 918, provided that: ‘‘The amendments
§ 4014
TITLE 42—THE PUBLIC HEALTH AND WELFARE
made by paragraph (1) [amending this section] shall become effective 90 days after the date of enactment of
this Act [July 6, 2012].’’
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
REPEAL OF CERTAIN RATE INCREASES
Pub. L. 113–89, § 3, Mar. 21, 2014, 128 Stat. 1021, provided that:
‘‘(a) REPEAL.—
‘‘(1) IN GENERAL.—[Amended this section.]
‘‘(2) EFFECTIVE DATE.—The Administrator [of the
Federal Emergency Management Agency] shall make
available such rate tables, as necessary to implement
the amendments made by paragraph (1) as if it were
enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012 ([subtitle A of title II of div.
F of] Public Law 112–141; 126 Stat. 957 [sic]).
‘‘(3) IMPLEMENTATION, COORDINATION, AND GUIDANCE.—
‘‘(A) FACILITATION OF TIMELY REFUNDS.—To ensure
the participation of Write Your Own companies (as
such term is defined in section 100202(a) of the
Biggert-Waters Flood Insurance Reform Act of 2012
(42 U.S.C. 4004(a)), the Administrator and the Federal Emergency Management Agency shall consult
with Write Your Own companies throughout the development of guidance and rate tables necessary to
implement the provisions of and the amendments
made by this Act [see Short Title of 2014 Amendment note set out under section 4001 of this title].
‘‘(B) IMPLEMENTATION AND GUIDANCE.—The Administrator shall issue final guidance and rate tables
necessary to implement the provisions of and the
amendments made by this Act not later than eight
months following the date of the enactment of this
Act [Mar. 21, 2014]. Write Your Own companies, in
coordination with the Federal Emergency Management Agency, shall have not less than six months
but not more than eight months following the
issuance of such final guidance and rate tables to
implement the changes required by such final guidance and rate tables.
‘‘(4) REFUND OF EXCESS PREMIUM CHARGES COLLECTED.—The Administrator shall refund directly to
insureds any premiums for flood insurance coverage
under the National Flood Insurance Program [defined
as the program established under the National Flood
Insurance Act of 1968 (42 U.S.C. 4001 et seq.)] collected
in excess of the rates required under the provisions of
and amendments made by this section [amending this
section]. To allow for necessary and appropriate implementation of such provisions and amendments,
any premium changes necessary to implement such
provisions and amendments, including any such pre-
Page 5778
mium refund due to policy holders, which shall be
paid directly by the National Flood Insurance Program, shall not be charged or paid to policyholders by
the National Flood Insurance Program until after the
Administrator issues guidance and makes available
such rate tables to implement the provisions of and
amendments made by this Act.
‘‘(b) ASSUMPTION OF POLICIES AT EXISTING PREMIUM
RATES.—The Administrator shall provide that the purchaser of a property that, as of the date of such purchase, is covered under an existing flood insurance policy under this title [probably means the National Flood
Insurance Act of 1968, 42 U.S.C. 4001 et seq.] may assume such existing policy and coverage for the remainder of the term of the policy at the chargeable premium rates under such existing policy. Such rates shall
continue with respect to such property until the implementation of subsection (a).’’
CHANGES IN RATES RESULTING FROM PUB. L. 113–89
Pub. L. 113–89, § 31(a), Mar. 21, 2014, 128 Stat. 1035, provided that: ‘‘Not later than the date that is 6 months
before the date on which any change in risk premium
rates for flood insurance coverage under the National
Flood Insurance Program [defined as the program established under the National Flood Insurance Act of
1968 (42 U.S.C. 4001 et seq.)] resulting from this Act [see
Short Title of 2014 Amendment note set out under section 4001 of this title] or any amendment made by this
Act is implemented, the Administrator [of the Federal
Emergency Management Agency] shall make publicly
available the rate tables and underwriting guidelines
that provide the basis for the change.’’
ELIGIBILITY FOR FLOOD INSURANCE FOR PERSONS RESIDING IN COMMUNITIES THAT HAVE MADE ADEQUATE
PROGRESS ON THE RECONSTRUCTION OR IMPROVEMENT
OF A FLOOD PROTECTION SYSTEM
Pub. L. 112–141, div. F, title II, § 100230, July 6, 2012,
126 Stat. 946, provided that:
‘‘(a) ELIGIBILITY FOR FLOOD INSURANCE COVERAGE.—
‘‘(1) IN GENERAL.—Notwithstanding any other provision of law (including section 1307(e) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4014(e))), a person residing in a community that the Administrator
determines has made adequate progress on the reconstruction or improvement of a flood protection system that will afford flood protection for a 100-year
floodplain (without regard to the level of Federal
funding of or participation in the construction, reconstruction, or improvement), shall be eligible for
flood insurance coverage under the National Flood
Insurance Program—
‘‘(A) if the person resides in a community that is
a participant in the National Flood Insurance Program; and
‘‘(B) at a risk premium rate that does not exceed
the risk premium rate that would be chargeable if
the flood protection system had been completed.
‘‘(2) ADEQUATE PROGRESS.—
‘‘(A) RECONSTRUCTION OR IMPROVEMENT.—For purposes of paragraph (1), the Administrator shall determine that a community has made adequate
progress on the reconstruction or improvement of a
flood protection system if—
‘‘(i) 100 percent of the project cost has been authorized;
‘‘(ii) not less than 60 percent of the project cost
has been secured or appropriated;
‘‘(iii) not less than 50 percent of the flood protection system has been assessed as being without
deficiencies; and
‘‘(iv) the reconstruction or improvement has a
project schedule that does not exceed 5 years, beginning on the date on which the reconstruction
or construction of the improvement commences.
‘‘(B) CONSIDERATIONS.—In determining whether a
flood protection system has been assessed as being
without deficiencies, the Administrator shall con-
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
sider the requirements under section 65.10 of chapter 44, Code of Federal Regulations, or any successor thereto.
‘‘(C) DATE OF COMMENCEMENT.—For purposes of
subparagraph (A)(iv) of this paragraph and subsection (b)(2)(B), the date of commencement of the
reconstruction or improvement of a flood protection system that is undergoing reconstruction or
improvement on the date of enactment of this Act
[July 6, 2012] shall be deemed to be the date on
which the owner of the flood protection system submits a request under paragraph (3).
‘‘(3) REQUEST FOR DETERMINATION.—The owner of a
flood protection system that is undergoing reconstruction or improvement on the date of enactment
of this Act [July 6, 2012] may submit to the Administrator a request for a determination under paragraph
(2) that the community in which the flood protection
system is located has made adequate progress on the
reconstruction or improvement of the flood protection system.
‘‘(4) RULE OF CONSTRUCTION.—Nothing in this subsection shall be construed to prohibit the Administrator from making a determination under paragraph
(2) for any community in which a flood protection
system is not undergoing reconstruction or improvement on the date of enactment of this Act.
‘‘(b) TERMINATION OF ELIGIBILITY.—
‘‘(1) ADEQUATE CONTINUING PROGRESS.—The Administrator shall issue rules to establish a method of determining whether a community has made adequate
continuing progress on the reconstruction or improvement of a flood protection system that includes—
‘‘(A) a requirement that the Administrator
shall—
‘‘(i) consult with the owner of the flood protection system—
‘‘(I) 6 months after the date of a determination under subsection (a);
‘‘(II) 18 months after the date of a determination under subsection (a); and
‘‘(III) 36 months after the date of a determination under subsection (a); and
‘‘(ii) after each consultation under clause (i),
determine whether the reconstruction or improvement is reasonably likely to be completed in
accordance with the project schedule described in
subsection (a)(2)(A)(iv); and
‘‘(B) a requirement that, if the Administrator
makes a determination under subparagraph (A)(ii)
that reconstruction or improvement is not reasonably likely to be completed in accordance with the
project schedule, the Administrator shall—
‘‘(i) not later than 30 days after the date of the
determination, notify the owner of the flood protection system of the determination and provide
the rationale and evidence for the determination;
and
‘‘(ii) provide the owner of the flood protection
system the opportunity to appeal the determination.
‘‘(2) TERMINATION.—The Administrator shall terminate the eligibility for flood insurance coverage
under subsection (a) for persons residing in a community with respect to which the Administrator made a
determination under subsection (a) if—
‘‘(A) the Administrator determines that the community has not made adequate continuing progress;
or
‘‘(B) on the date that is 5 years after the date on
which the reconstruction or construction of the improvement commences, the project has not been
completed.
‘‘(3) WAIVER.—A person whose eligibility would otherwise be terminated under paragraph (2)(B) shall
continue to be eligible to purchase flood insurance
coverage described in subsection (a) if the Administrator determines—
‘‘(A) the community has made adequate continuing progress on the reconstruction or improvement of a flood protection system; and
§ 4014
‘‘(B) there is a reasonable expectation that the reconstruction or improvement of the flood protection system will be completed not later than 1 year
after the date of the determination under this paragraph.
‘‘(4) RISK PREMIUM RATE.—If the Administrator terminates the eligibility of persons residing in a community to purchase flood insurance coverage described in subsection (a), the Administrator shall establish an appropriate risk premium rate for flood insurance coverage under the National Flood Insurance
Program for persons residing in the community that
purchased flood insurance coverage before the date
on which the termination of eligibility takes effect,
taking into consideration the then-current state of
the flood protection system.
‘‘(c) ADDITIONAL AUTHORITY.—
‘‘(1) ADDITIONAL AUTHORITY.—Notwithstanding subsection (a), in exceptional and exigent circumstances,
the Administrator may, in the Administrator’s sole
discretion, determine that a person residing in a community, which is a participant in the National Flood
Insurance Program, that has begun reconstruction or
improvement of a flood protection system that will
afford flood protection for a 100-year floodplain (without regard to the level of Federal funding of or participation in the reconstruction or improvement)
shall be eligible for flood insurance coverage under
the National Flood Insurance Program at a risk premium rate that does not exceed the risk premium
rate that would be chargeable if the flood protection
system had been completed, provided—
‘‘(A) the community makes a written request for
the determination setting forth the exceptional and
exigent circumstances, including why the community cannot meet the criteria for adequate progress
set forth in under [sic] subsection (a)(2)(A) and why
immediate relief is necessary;
‘‘(B) the Administrator submits a written report
setting forth findings of the exceptional and exigent circumstances on which the Administrator
based an affirmative determination to the Committee on Banking, Housing, and Urban Affairs of
the Senate, and the Committee on Financial Services of the House of Representatives not later than
15 days before making the determination; and
‘‘(C) the eligibility for flood insurance coverage
at a risk premium rate determined under this subsection terminates no later than 1 year after the
date on which the Administrator makes the determination.
‘‘(2) LIMITATION.—Upon termination of eligibility
under paragraph (1)(C), a community may submit another request pursuant to paragraph (1)(A). The Administrator may make no more than two determinations under paragraph (1) with respect to persons residing within any single requesting community.
‘‘(3) TERMINATION.—The authority provided under
paragraphs (1) and (2) shall terminate two years after
the enactment of this Act [July 6, 2012].’’
[For definitions of terms used in section 100230 of
Pub. L. 112–141, set out above, see section 4004 of this
title.]
FEES
Pub. L. 108–7, div. K, title III, Feb. 20,
517, provided in part: ‘‘That beginning
2003 and thereafter, fees authorized
4014(a)(1)(B)(iii) shall be collected only
advance in appropriations acts.’’
2003, 117 Stat.
in fiscal year
in 42 U.S.C.
if provided in
STUDY OF ECONOMIC EFFECTS OF CHARGING ACTUARIALLY BASED PREMIUM RATES FOR PRE-FIRM STRUCTURES
Pub. L. 103–325, title V, § 578, Sept. 23, 1994, 108 Stat.
2284, required the Director of the Federal Emergency
Management Agency to conduct a study of the economic effects that would result from increasing premium rates for flood insurance coverage for pre-FIRM
§ 4015
TITLE 42—THE PUBLIC HEALTH AND WELFARE
structures and submit a report to Congress no later
than 12 months after Sept. 23, 1994.
SEA LEVEL RISE STUDY
Pub. L. 101–137, § 5, Nov. 3, 1989, 103 Stat. 825, directed
Director of Federal Emergency Management Agency to
conduct a study to determine the impact of relative sea
level rise on the flood insurance rate maps, such study
also to project the economic losses associated with estimated sea level rise and aggregate such data for the
United States as a whole and by region, with Director
to report results of study to Congress not later than
one year after Nov. 3, 1989.
§ 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 Administrator shall from
time to time prescribe, after providing notice—
(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);
(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; and
(5) adequate, on the basis of accepted actuarial principles, to cover the average historical loss year obligations incurred by the National Flood Insurance Fund.
(c) Actuarial rate properties
Subject only to the limitations provided under
paragraphs (1) and (2), the chargeable rate shall
not be less than the applicable estimated risk
premium rate for such area (or subdivision
thereof) under section 4014(a)(1) of this title with
respect to the following properties:
(1) Post-firm properties
Any property the construction or substantial improvement of which the Administrator
Page 5780
determines has been started after December
31, 1974, or started after the effective date of
the initial rate map published by the Administrator under paragraph (2) of section 4101 of
this title for the area in which such property
is located, whichever is later, except that the
chargeable rate for properties under this paragraph shall be subject to the limitation under
subsection (e).
(2) Certain leased coastal and river properties
Any property leased from the Federal Government (including residential and nonresidential properties) that the Administrator determines is located on the river-facing side of
any dike, levee, or other riverine flood control
structure, or seaward of any seawall or other
coastal flood control structure.
(d) Payment of certain sums to Administrator;
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 Administrator. The Administrator shall deposit
the sum in the National Flood Insurance Fund
established under section 4017 of this title.
(e) Annual limitation on premium increases
Except with respect to properties described
under paragraph (2) of subsection (c), and notwithstanding any other provision of this chapter—
(1) the chargeable risk premium rate for
flood insurance under this chapter for any
property may not be increased by more than 18
percent each year, except—
(A) as provided in paragraph (4);
(B) in the case of property identified under
section 4014(g) of this title; or
(C) in the case of a property that—
(i) is located in a community that has
experienced a rating downgrade under the
community rating system program carried
out under section 4022(b) of this title;
(ii) is covered by a policy with respect to
which the policyholder has—
(I) decreased the amount of the deductible; or
(II) increased the amount of coverage;
or
(iii) was misrated;
(2) the chargeable risk premium rates for
flood insurance under this chapter for any
properties initially rated under section
4014(a)(2) of this title within any single risk
classification, excluding properties for which
the chargeable risk premium rate is not less
than the applicable estimated risk premium
rate under section 4014(a)(1) of this title, shall
be increased by an amount that results in an
average of such rate increases for properties
within the risk classification during any 12month period of not less than 5 percent of the
average of the risk premium rates for such
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
properties within the risk classification upon
the commencement of such 12-month period;
(3) 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
15 percent of the average of the risk premium
rates for properties within the risk classification upon the commencement of such 12month period; and
(4) the chargeable risk premium rates for
flood insurance under this chapter for any
properties described in subparagraphs (A)
through (E) of section 4014(a)(2) of this title
shall be increased by 25 percent each year,
until the average risk premium rate for such
properties is equal to the average of the risk
premium rates for properties described under
paragraph (3).
(f) Adjustment of premium
Notwithstanding any other provision of law, if
the Administrator determines that the holder of
a flood insurance policy issued under this chapter is paying a lower premium than is required
under this section due to an error in the flood
plain determination, the Administrator may
only prospectively charge the higher premium
rate.
(g) Frequency of premium collection
With respect to any chargeable premium rate
prescribed under this section, the Administrator
shall provide policyholders that are not required
to escrow their premiums and fees for flood insurance as set forth under section 4012a of this
title with the option of paying their premiums
annually or monthly.
(h) Rule of construction
For purposes of this section, the calculation of
an ‘‘average historical loss year’’—
(1) includes catastrophic loss years; and
(2) shall be computed in accordance with
generally accepted actuarial principles.
(i) Rates for properties newly mapped into areas
with special flood hazards
Notwithstanding subsection (f), the premium
rate for flood insurance under this chapter that
is purchased on or after March 21, 2014—
(1) on a property located in an area not previously designated as having special flood hazards and that, pursuant to any issuance, revision, updating, or other change in a flood insurance map, becomes designated as such an
area; and
(2) where such flood insurance premium rate
is calculated under subsection (a)(1) of section
4014 of this title,
shall for the first policy year be the preferred
risk premium for the property and upon renewal
shall be calculated in accordance with subsection (e) of this section until the rate reaches
the rate calculated under subsection (a)(1) of
section 4014 of this title.
(j) Premiums and reports
In setting premium risk rates, in addition to
striving to achieve the objectives of this chapter
§ 4015
the Administrator shall also strive to minimize
the number of policies with annual premiums
that exceed one percent of the total coverage
provided by the policy. For any policies premiums that exceed this one percent threshold,
the Administrator shall report such exceptions
to the Committee on Financial Services of the
House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(k) Consideration of mitigation methods
In calculating the risk premium rate charged
for flood insurance for a property under this section, the Administrator shall take into account
the implementation of any mitigation method
identified by the Administrator in the guidance
issued under section 4102(d) of this title.
(l) Clear communications
The Administrator shall clearly communicate
full flood risk determinations to individual
property owners regardless of whether their premium rates are full actuarial rates.
(m) Protection of small businesses, non-profits,
houses of worship, and residences
(1) Report
Not later than 18 months after March 21,
2014,1 and semiannually thereafter, the Administrator shall monitor and report to Committee on Financial Services of the House
Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate,
the Administrator’s assessment of the impact,
if any, of the rate increases required under
subparagraphs (A) and (D) of section 4014(a)(2)
of this title and the surcharges required under
section 4015a of this title on the affordability
of flood insurance for—
(A) small businesses with less than 100 employees;
(B) non-profit entities;
(C) houses of worship; and
(D) residences with a value equal to or less
than 25 percent of the median home value of
properties in the State in which the property
is located.
(2) Recommendations
If the Administrator determines that the
rate increases or surcharges described in paragraph (1) are having a detrimental effect on affordability, including resulting in lapsed policies, late payments, or other criteria related
to affordability as identified by the Administrator, for any of the properties identified in
subparagraphs (A) through (D) of such paragraph, the Administrator shall, not later than
3 months after making such a determination,
make such recommendations as the Administrator considers appropriate to improve affordability to the Committee on Financial
Services of the House of Representatives and
the Committee on Banking, Housing, and
Urban Affairs of the Senate.
(Pub. L. 90–448, title XIII, § 1308, Aug. 1, 1968, 82
Stat. 576; Pub. L. 93–234, title I, § 103, Dec. 31,
1973, 87 Stat. 978; Pub. L. 98–181, title I [title IV,
1 See
References in Text note below.
§ 4015
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
101–508, title II, § 2302(e)(2), Nov. 5, 1990, 104 Stat.
1388–24; Pub. L. 103–325, title V, § 572(a), Sept. 23,
1994, 108 Stat. 2277; Pub. L. 108–264, title I, § 106,
title II, § 209, June 30, 2004, 118 Stat. 724, 727; Pub.
L. 112–123, § 2(b), May 31, 2012, 126 Stat. 365; Pub.
L. 112–141, div. F, title II, §§ 100205(c), (d), 100207,
100211, 100238(b)(1), July 6, 2012, 126 Stat. 918, 919,
921, 958; Pub. L. 113–89, §§ 4(a), 5–7, 11(a), 26(b), 28,
29, Mar. 21, 2014, 128 Stat. 1022, 1023, 1025, 1033.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (b)(2), (e), (i), and
(j), was in the original a reference to ‘‘this title’’ meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572,
known as the National Flood Insurance Act of 1968,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short
Title note set out under section 4001 of this title and
Tables.
This chapter, referred to in subsec. (f), was in the
original ‘‘this Act’’, and was translated as reading ‘‘this
title’’, meaning title XIII of Pub. L. 90–448, Aug. 1, 1968,
82 Stat. 572, known as the National Flood Insurance Act
of 1968, which is classified principally to this chapter,
to reflect the probable intent of Congress. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
The Flood Disaster Protection Act of 1973, referred to
in subsec. (h), is Pub. L. 93–234, Dec. 31, 1973, 87 Stat.
975. For complete classification of this Act to the Code,
see Short Title of 1973 Amendment note set out under
section 4001 of this title and Tables.
The Biggert-Waters Flood Insurance Reform Act of
2012, referred to in subsec. (h), is subtitle A
(§§ 100201–100249) of title II of div. F of Pub. L. 112–141,
July 6, 2012, 126 Stat. 916. For complete classification of
this Act to the Code, see Short Title of 2012 Amendment note set out under section 4001 of this title and
Tables.
March 21, 2014, referred to in subsec. (m)(1), was in
the original ‘‘the date of the enactment of this section’’, and was translated as reading ‘‘the date of the
enactment of this subsection’’, meaning the date of enactment of Pub. L. 113–89, which enacted subsec. (m), to
reflect the probable intent of Congress.
AMENDMENTS
2014—Subsec. (e). Pub. L. 113–89, § 5(1), struck out
‘‘, the chargeable risk premium rates for flood insurance under this chapter for any properties’’ before dash
at end of introductory provisions.
Subsec. (e)(1), (2). Pub. L. 113–89, § 5(5), added pars. (1)
and (2). Former pars. (1) and (2) redesignated (3) and (4),
respectively.
Pub. L. 113–89, § 5(2), (3), inserted ‘‘the chargeable risk
premium rates for flood insurance under this chapter
for any properties’’ at beginning.
Subsec. (e)(3). Pub. L. 113–89, § 5(4), (6), redesignated
par. (1) as (3) and substituted ‘‘15 percent’’ for ‘‘20 percent’’.
Subsec. (e)(4). Pub. L. 113–89, § 5(4), (7), redesignated
par. (2) as (4) and substituted ‘‘paragraph (3)’’ for ‘‘paragraph (1)’’.
Subsec. (g). Pub. L. 113–89, § 11(a), substituted ‘‘annually or monthly’’ for ‘‘either annually or in more frequent installments’’.
Subsec. (h). Pub. L. 113–89, § 4(a), redesignated subsec.
(i) as (h) and struck out former subsec. (h) which related to premium adjustment to reflect current risk of
flood.
Subsec. (i). Pub. L. 113–89, § 6, added subsec. (i).
Former subsec. (i) redesignated (h).
Subsec. (j). Pub. L. 113–89, § 7, added subsec. (j).
Subsec. (k). Pub. L. 113–89, § 26(b), added subsec. (k).
Subsec. (l). Pub. L. 113–89, § 28, added subsec. (l).
Page 5782
Subsec. (m). Pub. L. 113–89, § 29, added subsec. (m).
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ in introductory provisions.
Pub. L. 112–141, § 100211(1), in introductory provisions,
substituted ‘‘prescribe, after providing notice’’ for
‘‘, 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’’.
Subsec. (b)(5). Pub. L. 112–141, § 100211(2), added par.
(5).
Subsecs. (c), (d). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ wherever appearing.
Subsec. (e). Pub. L. 112–141, § 100205(c)(1), struck out
‘‘or (3)’’ after ‘‘paragraph (2)’’ and inserted ‘‘any properties’’ after ‘‘under this chapter for’’ in introductory
provisions.
Pub. L. 112–123 substituted ‘‘under this chapter for—
’’ for ‘‘under this chapter for’’, inserted par. (1) designation before ‘‘any properties’’, and added par. (2).
Subsec. (e)(1). Pub. L. 112–141, § 100205(c)(2), substituted ‘‘within any single’’ for ‘‘any properties within
any single’’ and ‘‘20 percent’’ for ‘‘10 percent’’.
Subsec. (e)(2). Pub. L. 112–141, § 100205(c)(3), added par.
(2) and struck out former par. (2) which read as follows:
‘‘any residential properties which are not the primary
residence of an individual, as described in section
4014(a)(2) of this title, shall be increased by 25 percent
each year, until the average risk premium rate for such
properties is equal to the average of the risk premium
rates for properties described under paragraph (1).’’
Subsec. (f). Pub. L. 112–141, § 100238(b)(1), substituted
‘‘Administrator’’ for ‘‘Director’’ in two places.
Subsec. (g). Pub. L. 112–141, § 100205(d), added subsec.
(g).
Subsec. (h). Pub. L. 112–141, § 100207, added subsec. (h).
Subsec. (i). Pub. L. 112–141, § 100211(3), added subsec.
(i).
2004—Subsec. (c). Pub. L. 108–264, § 106(a), added subsec. (c) and struck out former subsec. (c) which read as
follows ‘‘Subject only to the limitation under subsection (e) of this section, the chargeable rate with respect to any property, the construction or substantial
improvements of which the Director determines has
been started after December 31, 1974, or the effective
date of the initial rate map published by the Director
under paragraph (2) of section 4101 of this title for the
area in which such property is located, whichever is
later, shall not be less than the applicable estimated
risk premium rate for such area (or subdivision thereof)
under section 4014(a)(1) of this title.’’
Subsec. (e). Pub. L. 108–264, § 106(b), substituted ‘‘Except with respect to properties described under paragraph (2) or (3) of subsection (c), and notwithstanding’’
for ‘‘Notwithstanding’’.
Subsec. (f). Pub. L. 108–264, § 209, added subsec. (f).
1994—Subsec. (c). Pub. L. 103–325, § 572(a)(1), substituted ‘‘Subject only to the limitation under subsection (e) of this section’’ for ‘‘Notwithstanding any
other provision of this chapter’’.
Subsec. (e). Pub. L. 103–325, § 572(a)(2), added subsec.
(e).
1990—Subsec. (b)(3), (4). Pub. L. 101–508, § 2302(e)(2)(A),
added par. (3) and redesignated former par. (3) as (4).
Subsec. (d). Pub. L. 101–508, § 2302(e)(2)(B), added subsec. (d) and struck out former subsec. (d) which read as
follows: ‘‘In the event any chargeable premium rate
prescribed under this section—
‘‘(1) is a rate which is not less than the applicable
estimated risk premium rate under section 4014(a)(1)
of this title, and
‘‘(2) includes any amount for administrative expenses of carrying out the flood insurance program
which have been estimated under clause (ii) of section 4014(a)(1)(B) of this title,
a sum equal to such amount shall be paid to the Director, and he shall deposit such sum in the National
Page 5783
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Flood Insurance Fund established under section 4017 of
this title.’’
1983—Subsecs. (a), (c), (d). Pub. L. 98–181 substituted
‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1973—Subsec. (c). Pub. L. 93–234 substituted ‘‘started
after December 31, 1974, or the effective date of the initial rate map published by the Secretary under paragraph (2) of section 4101 of this title for the area in
which such property is located, whichever is later’’ for
‘‘started after the identification of the area in which
such property is located has been published under paragraph (1) of section 4101 of this title’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2014 AMENDMENT
Pub. L. 113–89, § 4(b), Mar. 21, 2014, 128 Stat. 1022, provided that: ‘‘The amendments made by subsection (a)
[amending this section] shall take effect as if enacted
as part of the Biggert-Waters Flood Insurance Reform
Act of 2012 ([subtitle A of title II of div. F of] Public
Law 112–141; 126 Stat. 957 [sic]).’’
EFFECTIVE DATE OF 2012 AMENDMENT
Pub. L. 112–123, § 2(c), May 31, 2012, 126 Stat. 365, provided that: ‘‘The first increase in chargeable risk premium rates for residential properties which are not the
primary residence of an individual under section
1308(e)(2) of the National Flood Insurance Act of 1968
[former 42 U.S.C. 4015(e)(2)], as added by this Act, shall
take effect on July 1, 2012, and the chargeable risk premium rates for such properties shall be increased by 25
percent each year thereafter, as provided in such section 1308(e)(2).’’
CONSTRUCTION OF AMENDMENT BY PUB. L. 112–141
Pub. L. 112–141, div. F, title II, § 100205(e), July 6, 2012,
126 Stat. 919, provided that: ‘‘Nothing in this section
[amending this section and section 4014 of this title and
enacting provisions set out as a note under section 4014
of this title] or the amendments made by this section
may be construed to affect the requirement under section 2(c) of the Act entitled ‘An Act to extend the National Flood Insurance Program, and for other purposes’, approved May 31, 2012 (Public Law 112–123) [set
out above], that the first increase in chargeable risk
premium rates for residential properties which are not
the primary residence of an individual take effect on
July 1, 2012.’’
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4015a
gency Management Agency] shall implement the requirement under section 1308(g) of the National Flood
Insurance Act of 1968 [42 U.S.C. 4015(g)], as amended by
subsection (a), not later than the expiration of the 18month period beginning on the date of the enactment
of this Act [Mar. 21, 2014].’’
LIMITATION ON PREMIUMS
Pub. L. 101–508, title II, § 2302(e)(5), Nov. 5, 1990, 104
Stat. 1388–25, provided that, notwithstanding section
541(d) of Pub. L. 100–242, formerly set out below, premium rates charged for flood insurance under any program established pursuant to this chapter could be increased by more than 10 percent during fiscal year 1991,
with certain exceptions.
Pub. L. 100–242, title V, § 541(d), Feb. 5, 1988, 101 Stat.
1939, as amended by Pub. L. 101–137, § 1(d), Nov. 3, 1989,
103 Stat. 824; Pub. L. 101–508, title II, § 2302(c), Nov. 5,
1990, 104 Stat. 1388–23, limited increases in premium
rates charged for flood insurance under programs established pursuant to this chapter during period beginning
Feb. 5, 1988, and ending Sept. 30, 1995, to prorated annual rate of 10 percent, prior to repeal by Pub. L.
103–325, title V, § 572(b), Sept. 23, 1994, 108 Stat. 2278.
Pub. L. 98–181, title I [title IV, § 451(g)(1)], Nov. 30,
1983, 97 Stat. 1229, provided that premium rates charged
for flood insurance under any program established pursuant to this chapter could not be increased during the
period beginning Nov. 30, 1983, and ending Sept. 30, 1984.
§ 4015a. Premium surcharge
(a) Imposition and collection
The Administrator shall impose and collect an
annual surcharge, in the amount provided in
subsection (b), on all policies for flood insurance
coverage under the National Flood Insurance
Program that are newly issued or renewed after
March 21, 2014. Such surcharge shall be in addition to the surcharge under section 4011(b) of
this title and any other assessments and surcharges applied to such coverage.
(b) Amount
The amount of the surcharge under subsection
(a) shall be—
(1) $25, except as provided in paragraph (2);
and
(2) $250, in the case of a policy for any property that is—
(A) a non-residential property; or
(B) a residential property that is not the
primary residence of an individual.
(c) Termination
Subsections (a) and (b) shall cease to apply on
the date on which the chargeable risk premium
rate for flood insurance under this chapter for
each property covered by flood insurance under
this chapter, other than properties for which
premiums are calculated under subsection (e) or
(f) of section 4014 of this title or section 4056 of
this title or under section 100230 of the BiggertWaters Flood Insurance Reform Act of 2012 (42
U.S.C. 4014 note), is not less than the applicable
estimated risk premium rate under section
4014(a)(1) of this title for such property.
(Pub. L. 90–448, title XIII, § 1308A, as added Pub.
L. 113–89, § 8(a), Mar. 21, 2014, 128 Stat. 1023.)
Editorial Notes
IMPLEMENTATION
REFERENCES IN TEXT
Pub. L. 113–89, § 11(b), Mar. 21, 2014, 128 Stat. 1025, provided that: ‘‘The Administrator [of the Federal Emer-
This chapter, referred to in subsec. (c), was in the
original a reference to ‘‘this title’’ meaning title XIII
§ 4016
TITLE 42—THE PUBLIC HEALTH AND WELFARE
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
Section 100230 of the Biggert-Waters Flood Insurance
Reform Act of 2012, referred to in subsec. (c), is section
100230 of Pub. L. 112–141, which is set out as a note
under section 4014 of this title.
§ 4016. Financing
(a) Authority to issue notes and other obligations
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 Administrator 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 Administrator pursuant to such
authority (1) without the approval of the President, may not exceed $500,000,000, and (2) with
the approval of the President, may not exceed
$1,500,000,000 through the date specified in section 4026 of this title, and $1,000,000,000 thereafter; except that, through September 30, 2021,
clause (2) of this sentence shall be applied by
substituting ‘‘$30,425,000,000’’ for ‘‘$1,500,000,000’’.
The Administrator 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) Deposit of borrowed funds
Any funds borrowed by the Administrator
under this authority shall, from time to time, be
deposited in the National Flood Insurance Fund
established under section 4017 of this title.
(c) Schedule of repayments
Upon the exercise of the authority established
under subsection (a), the Administrator shall
transmit a schedule for repayment of such
amounts to—
(1) the Secretary of the Treasury;
(2) the Committee on Banking, Housing, and
Urban Affairs of the Senate; and
(3) the Committee on Financial Services of
the House of Representatives.
(d) Reports on repayment
In connection with any funds borrowed by the
Administrator under the authority established
in subsection (a), the Administrator, beginning 6
months after the date on which such funds are
borrowed, and continuing every 6 months thereafter until such borrowed funds are fully repaid,
shall submit a report on the progress of such repayment to—
(1) the Secretary of the Treasury;
(2) the Committee on Banking, Housing, and
Urban Affairs of the Senate; and
(3) the Committee on Financial Services of
the House of Representatives.
(Pub. L. 90–448, title XIII, § 1309, Aug. 1, 1968, 82
Stat. 577; Pub. L. 89–174, § 5(a), Sept. 9, 1965, 79
Page 5784
Stat. 669; Pub. L. 93–234, title I, § 104, Dec. 31,
1973, 87 Stat. 979; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
98–479, title II, § 204(g), Oct. 17, 1984, 98 Stat. 2233;
Pub. L. 104–208, div. A, title V, Sept. 30, 1996, 110
Stat. 3009–521; Pub. L. 105–65, title III, Oct. 27,
1997, 111 Stat. 1377; Pub. L. 105–276, title III, Oct.
21, 1998, 112 Stat. 2502; Pub. L. 106–74, title III,
Oct. 20, 1999, 113 Stat. 1088; Pub. L. 106–377,
§ 1(a)(1) [title III], Oct. 27, 2000, 114 Stat. 1441,
1441A–47; Pub. L. 107–73, title III, Nov. 26, 2001,
115 Stat. 689; Pub. L. 108–3, § 2(a)(1), Jan. 13, 2003,
117 Stat. 7; Pub. L. 108–171, § 2(a)(2), Dec. 6, 2003,
117 Stat. 2064; Pub. L. 108–199, div. H, § 136(a)(2),
Jan. 23, 2004, 118 Stat. 442; Pub. L. 108–264, title
I, § 101(a), June 30, 2004, 118 Stat. 714; Pub. L.
109–65, § 2, Sept. 20, 2005, 119 Stat. 1998; Pub. L.
109–106, § 2, Nov. 21, 2005, 119 Stat. 2288; Pub. L.
109–208, § 2, Mar. 23, 2006, 120 Stat. 317; Pub. L.
111–196, § 2(b), July 2, 2010, 124 Stat. 1352; Pub. L.
111–250, § 2(b), Sept. 30, 2010, 124 Stat. 2630; Pub.
L. 112–74, div. D, title V, § 573, Dec. 23, 2011, 125
Stat. 985; Pub. L. 112–123, § 1(b), May 31, 2012, 126
Stat. 365; Pub. L. 112–141, div. F, title II,
§§ 100203(a), 100213(a), 100238(b)(1), July 6, 2012, 126
Stat. 916, 923, 958; Pub. L. 113–1, § 1(a), Jan. 6,
2013, 127 Stat. 3; Pub. L. 115–225, § 2(a), July 31,
2018, 132 Stat. 1624; Pub. L. 115–281, § 2(a), Dec. 1,
2018, 132 Stat. 4191; Pub. L. 115–396, § 2(a), Dec. 21,
2018, 132 Stat. 5296; Pub. L. 116–19, § 2(a), May 31,
2019, 133 Stat. 870; Pub. L. 116–20, title XII,
§ 1207(a), June 6, 2019, 133 Stat. 901; Pub. L.
116–159, div. A, § 146(a), Oct. 1, 2020, 134 Stat. 718.)
Editorial Notes
REFERENCES IN TEXT
Section 1303 of this Act, referred to in subsec. (a),
means section 1303 of Pub. L. 90–448, which amended
section 2414(e) of this title.
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
2020—Subsec. (a). Pub. L. 116–159 substituted ‘‘September 30, 2021’’ for ‘‘September 30, 2019’’.
2019—Subsec. (a). Pub. L. 116–20 substituted ‘‘September 30, 2019’’ for ‘‘June 14, 2019’’.
Pub. L. 116–19 substituted ‘‘June 14, 2019’’ for ‘‘May 31,
2019’’.
2018—Subsec. (a). Pub. L. 115–396 substituted ‘‘May 31,
2019’’ for ‘‘December 7, 2018’’.
Pub. L. 115–281 substituted ‘‘December 7, 2018’’ for
‘‘November 30, 2018’’.
Pub. L. 115–225 substituted ‘‘November 30, 2018’’ for
‘‘September 30, 2017’’.
2013—Subsec.
(a).
Pub.
L.
113–1
substituted
‘‘$30,425,000,000’’ for ‘‘$20,725,000,000’’.
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ wherever appearing.
Pub. L. 112–141, § 100203(a), substituted ‘‘September 30,
2017’’ for ‘‘July 31, 2012’’.
Pub. L. 112–123 substituted ‘‘July 31, 2012’’ for ‘‘the
earlier of the date of the enactment into law of an Act
that specifically amends the date specified in this section or May 31, 2012’’.
Subsec. (b). Pub. L. 112–141, § 100238(b)(1), substituted
‘‘Administrator’’ for ‘‘Director’’.
Subsecs. (c), (d). Pub. L. 112–141, § 100213(a), added subsecs. (c) and (d).
Page 5785
TITLE 42—THE PUBLIC HEALTH AND WELFARE
2011—Subsec. (a). Pub. L. 112–74 substituted ‘‘the earlier of the date of the enactment into law of an Act
that specifically amends the date specified in this section or May 31, 2012’’ for ‘‘September 30, 2011’’.
2010—Subsec. (a). Pub. L. 111–250 substituted ‘‘September 30, 2011’’ for ‘‘September 30, 2010’’.
Pub. L. 111–196 substituted ‘‘September 30, 2010’’ for
‘‘September
30,
2008’’
and
‘‘$20,725,000,000’’
for
‘‘$20,775,000,000’’.
2006—Subsec. (a). Pub. L. 109–208 substituted
‘‘$20,775,000,000’’ for ‘‘$18,500,000,000’’ in first sentence.
2005—Subsec. (a). Pub. L. 109–106 substituted
‘‘$18,500,000,000’’ for ‘‘$3,500,000,000’’ in first sentence.
Pub. L. 109–65 inserted ‘‘; except that, through September 30, 2008, clause (2) of this sentence shall be applied by substituting ‘$3,500,000,000’ for ‘$1,500,000,000’ ’’
before period at end of first sentence.
2004—Subsec. (a). Pub. L. 108–264, § 101(a), which directed amendment of first sentence of subsec. (a) by
substituting ‘‘through the date specified in section 4026
of this title, and’’ for ‘‘ ‘through December’ and all that
follows through ‘, and’ ’’, could not be executed because
the language to be struck out did not appear subsequent to amendment by Pub. L. 108–171. See 2003
Amendment note below.
Pub. L. 108–199 made amendment identical to that
made by Pub. L. 108–171. See 2003 Amendment note
below.
2003—Subsec. (a)(2). Pub. L. 108–171 substituted ‘‘the
date specified in section 4026 of this title’’ for ‘‘December 31, 2003’’.
Pub. L. 108–3 substituted ‘‘December 31, 2003’’ for ‘‘December 31, 2002’’.
2001—Subsec. (a)(2). Pub. L. 107–73 substituted ‘‘2002’’
for ‘‘2001’’.
2000—Subsec. (a)(2). Pub. L. 106–377 substituted ‘‘December 31, 2001’’ for ‘‘September 30, 2000’’.
1999—Subsec. (a)(2). Pub. L. 106–74, which directed
substitution of ‘‘2000’’ for ‘‘1999’’ in section ‘‘1309(a)(2) of
the National Flood Insurance Act’’, was executed to
subsec. (a)(2) of this section, which is section 1309 of the
National Flood Insurance Act of 1968, to reflect the
probable intent of Congress.
1998—Subsec. (a)(2). Pub. L. 105–276, which directed
substitution of ‘‘1999’’ for ‘‘1998’’ in section ‘‘1309(a)(2) of
the National Flood Insurance Act’’, was executed by
making the substitution in subsec. (a)(2) of this section, which is section 1309 of the National Flood Insurance Act of 1968, to reflect the probable intent of Congress.
1997—Subsec. (a)(2). Pub. L. 105–65, which directed
substitution of ‘‘1998’’ for ‘‘1997’’ in section ‘‘1309(a)(2) of
the National Flood Insurance Act’’, was executed by
making the substitution in subsec. (a)(2) of this section, which is section 1309 of the National Flood Insurance Act of 1968, to reflect the probable intent of Congress.
1996—Subsec. (a)(2). Pub. L. 104–208 substituted
‘‘$1,500,000,000 through September 30, 1997, and
$1,000,000,000 thereafter’’ for ‘‘$1,000,000,000’’.
1984—Subsec. (a). Pub. L. 98–479 substituted
‘‘, Finance and Urban Affairs’’ for ‘‘and Currency’’ and
inserted a comma after ‘‘Housing’’ in last sentence.
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1973—Subsec. (a). Pub. L. 93–234 substituted provisions respecting issuance of notes and obligation for
$500,000,000 without approval of President and for
$1,000,000,000 with approval of President, for former provision prescribing a $250,000,000 limitation, struck out
provision rescinding authority of Secretary to issue
notes and obligations under section 2414(e) of this title,
and provided for report to Congressional Committees
when the approval of the President is requested.
Statutory Notes and Related Subsidiaries
§ 4016
tificate, directive, instruction, or other official paper,
considered to refer and apply to the Administrator of
the Federal Emergency Management Agency, see section 612(f)(2) of Pub. L. 109–295, set out as a note under
section 313 of Title 6, Domestic Security.
Committee on Banking, Finance and Urban Affairs of
House of Representatives treated as referring to Committee on Banking and Financial Services of House of
Representatives by section 1(a) of Pub. L. 104–14, set
out as a note preceding section 21 of Title 2, The Congress. Committee on Banking and Financial Services of
House of Representatives abolished and replaced by
Committee on Financial Services of House of Representatives, and jurisdiction over matters relating to
securities and exchanges and insurance generally transferred from Committee on Energy and Commerce of
House of Representatives by House Resolution No. 5,
One Hundred Seventh Congress, Jan. 3, 2001.
EFFECTIVE DATE OF 2020 AMENDMENT
Pub. L. 116–159, div. A, § 146(c), Oct. 1, 2020, 134 Stat.
718, provided that:
‘‘(1) This section [amending this section and section
4026 of this title] shall become effective immediately
upon enactment of this Act [div. A of Pub. L. 116–159,
approved Oct. 1, 2020].
‘‘(2) If this Act is enacted after September 30, 2020,
this section shall be applied as if it were in effect on
September 30, 2020.’’
EFFECTIVE DATE OF 2019 AMENDMENT
Pub. L. 116–20, title XII, § 1207(c), June 6, 2019, 133
Stat. 901, provided that: ‘‘If this Act is enacted after
June 14, 2019 [Pub. L. 116–20 enacted on June 6, 2019],
the amendments made by subsections (a) and (b)
[amending this section and section 4026 of this title]
shall take effect as if enacted on June 14, 2019.’’
Pub. L. 116–19, § 2(c), May 31, 2019, 133 Stat. 870, provided that: ‘‘If this Act is enacted after May 31, 2019
[Pub. L. 116–19 enacted on May 31, 2019], the amendments made by subsections (a) and (b) [amending this
section and section 4026 of this title] shall take effect
as if enacted on May 31, 2019.’’
EFFECTIVE DATE OF 2018 AMENDMENT
Pub. L. 115–396, § 2(c), Dec. 21, 2018, 132 Stat. 5296, provided that: ‘‘If this Act is enacted after December 7,
2018 [Pub. L. 115–396 enacted on Dec. 21, 2018], the
amendments made by subsections (a) and (b) [amending
this section and section 4026 of this title] shall take effect as if enacted on December 7, 2018.’’
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–196, § 2(c), July 2, 2010, 124 Stat. 1352, provided that: ‘‘The amendments made by subsections (a)
and (b) [amending this section and section 4026 of this
title] shall be considered to have taken effect on May
31, 2010.’’
EFFECTIVE DATE OF 2004 AMENDMENT
Pub. L. 108–199, div. H, § 136(b), Jan. 23, 2004, 118 Stat.
442, provided that: ‘‘The amendments made by this section [amending this section and sections 4026, 4056, and
4127 of this title] shall be considered to have taken effect on December 31, 2003.’’
EFFECTIVE DATE OF 2003 AMENDMENTS
Pub. L. 108–171, § 2(b), Dec. 6, 2003, 117 Stat. 2064, provided that: ‘‘The amendments made by this section
[amending this section and sections 4026, 4056, and 4127
of this title] shall be considered to have taken effect on
December 31, 2003.’’
Pub. L. 108–3, § 2(b), Jan. 13, 2003, 117 Stat. 7, provided
that: ‘‘The amendments made by this section [amending this section and sections 4026, 4056, and 4127 of this
title] shall be considered to have taken effect on December 31, 2002.’’
CHANGE OF NAME
EFFECTIVE DATE
Reference to the Director of the Federal Emergency
Management Agency in any law, rule, regulation, cer-
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
§ 4017
TITLE 42—THE PUBLIC HEALTH AND WELFARE
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
Functions of Housing and Home Finance Agency and
head thereof transferred to Secretary of Housing and
Urban Development by Pub. L. 89–174, § 5(a), Sept. 9,
1965, 79 Stat. 669, which is classified to section 3534(a) of
this title. Section 9(c) of such act, set out as a note
under section 3531 of this title, provides that references
to Housing and Home Finance Agency or to any agency
or officer therein are to be deemed to mean Secretary
of Housing and Urban Development and that Housing
and Home Finance Agency has lapsed.
EXTENSION OF LIMITATION ON FINANCING PROVISIONS
For nonamendatory provisions extending the limitation on financing provisions in subsec. (a) of this section, see Extension of Program notes under section 4026
of this title.
Executive Documents
TRANSFER OF FUNCTIONS
Functions vested in Secretary of Housing and Urban
Development pursuant to this chapter transferred to
Director of Federal Emergency Management Agency
pursuant to Reorg. Plan No. 3 of 1978, § 202, June 19,
1978, 43 F.R. 41944, 92 Stat. 3788, set out as a note under
section 2201 of Title 15, Commerce and Trade, effective
Apr. 1, 1979, as provided by Ex. Ord. No. 12127, Mar. 31,
1979, 44 F.R. 19367, set out as a note under section 2201
of Title 15.
§ 4017. National Flood Insurance Fund
(a) Establishment; availability
To carry out the flood insurance program authorized by this chapter, the Administrator
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 Administrator and shall
be available as described in subsection (f), without fiscal year limitation (except as otherwise
provided in this section)—
(1) for making such payments as may, from
time to time, be required under section 4054 of
this title;
(2) to pay reinsurance claims under the excess loss reinsurance coverage provided under
section 4055 of this title;
(3) to repay to the Secretary of the Treasury
such sums as may be borrowed from him (together with interest) in accordance with the
authority provided in section 4016 of this title;
and
Page 5786
(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) 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 carrying out section 4104(f) of this
title.
(b) Credits to Fund
The fund shall be credited with—
(1) such funds borrowed in accordance with
the authority provided in section 4016 of this
title as may from time to time be deposited in
the fund;
(2) premiums, fees, or other charges which
may be paid or collected in connection with
the excess loss reinsurance coverage provided
under section 4055 of this title;
(3) such amounts as may be advanced to the
fund from appropriations in order to maintain
the fund in an operative condition adequate to
meet its liabilities;
(4) interest which may be earned on investments of the fund pursuant to subsection (c);
(5) such sums as are required to be paid to
the Administrator 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), 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 Administrator 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 Administrator 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
Page 5787
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(2) payment of applicable operating costs set
forth in the schedules prescribed under section
4018 of this title,
for so long as the program is so carried out, and
in such event any premiums paid shall be deposited by the Administrator to the credit of the
fund.
(e) Annual budget
An annual business-type budget for the fund
shall be prepared, transmitted to the Congress,
considered, and enacted in the manner prescribed by sections 9103 and 9104 of title 31 for
wholly-owned Government corporations.
(f) Availability of funds dependent on future appropriations acts
The fund shall be available, with respect to
any fiscal year beginning on or after October 1,
1981, only to the extent approved in appropriation Acts; except that the fund shall be available for the purpose described in subsection
(d)(1) without such approval.
(Pub. L. 90–448, title XIII, § 1310, Aug. 1, 1968, 82
Stat. 577; Pub. L. 97–35, title III, § 341(c), Aug. 13,
1981, 95 Stat. 419; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
98–479, title II, § 203(j)(1), Oct. 17, 1984, 98 Stat.
2231; Pub. L. 100–242, title V, § 545(d), Feb. 5, 1988,
101 Stat. 1942; Pub. L. 101–508, title II, § 2302(e)(3),
Nov. 5, 1990, 104 Stat. 1388–24; Pub. L. 103–325,
title V, §§ 542, 554(b), 577(h), Sept. 23, 1994, 108
Stat. 2269, 2274, 2283; Pub. L. 108–264, title I,
§§ 102(b), 104(b), June 30, 2004, 118 Stat. 721, 723;
Pub. L. 112–141, div. F, title II, §§ 100225(d),
100238(b)(1), July 6, 2012, 126 Stat. 941, 958; Pub.
L. 113–89, § 18(b), Mar. 21, 2014, 128 Stat. 1027.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a) and (b)(6), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
AMENDMENTS
2014—Subsec. (a)(8). Pub. L. 113–89 added par. (8).
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ in two places.
Subsec. (a)(6) to (9). Pub. L. 112–141, § 100225(d), inserted ‘‘and’’ at end of par. (6), substituted period for
semicolon at end of par. (7), and struck out pars. (8) and
(9) which read as follows:
‘‘(8) for financial assistance under section 4102a of
this title to States and communities for taking actions
under such section with respect to severe repetitive
loss properties, but only to the extent provided in section 4102a(i) of this title; and
‘‘(9) for funding, not to exceed $10,000,000 in any fiscal
year, for mitigation actions under section 4030 of this
title, except that, notwithstanding any other provision
of this chapter, amounts made available pursuant to
this paragraph shall not be subject to offsetting collections through premium rates for flood insurance coverage under this chapter.’’
Subsecs. (b)(5), (c), (d). Pub. L. 112–141, § 100238(b)(1),
substituted ‘‘Administrator’’ for ‘‘Director’’ wherever
appearing.
2004—Subsec. (a)(7), (8). Pub. L. 108–264, § 102(b), struck
out ‘‘and’’ at end of par. (7), added par. (8), and struck
§ 4017a
out former par. (8) which read as follows: ‘‘for costs of
preparing the report under section 577 of the Riegle
Community Development and Regulatory Improvement
Act of 1994, except that the fund shall be available for
the purpose under this paragraph in an amount not to
exceed an aggregate of $5,000,000 over the 2-year period
beginning on September 23, 1994.’’
Subsec. (a)(9). Pub. L. 108–264, § 104(b), added par. (9).
1994—Subsec. (a). Pub. L. 103–325, §§ 554(b)(1), 577(h)(1),
in introductory provisions, substituted ‘‘shall’’ for ‘‘is
authorized to’’ after ‘‘Director’’, inserted ‘‘an account
separate from any other accounts or funds available to
the Director and shall be’’ after ‘‘which shall be’’, and
inserted ‘‘(except as otherwise provided in this section)’’ after ‘‘without fiscal year limitation’’.
Subsec. (a)(6) to (8). Pub. L. 103–325, §§ 542, 554(b)(2),
577(h)(2), added pars. (6) to (8), respectively.
1990—Subsec. (a)(4). Pub. L. 101–508 amended par. (4)
generally. Prior to amendment, par. (4) read as follows:
‘‘to pay such administrative expenses (or portion of
such expenses) of carrying out the flood insurance program as he may deem necessary; and’’.
1988—Subsec. (e). Pub. L. 100–242 substituted ‘‘title 31,
United States Code,’’ for ‘‘title 31, United States Code’’,
which for purposes of codification was translated as
‘‘title 31’’, requiring no change in text.
1984—Subsec. (e). Pub. L. 98–479 substituted ‘‘sections
9103 and 9104 of title 31’’ for ‘‘law (sections 102, 103, and
104 of the Government Corporations Control Act (31
U.S.C. 847–849))’’.
1983—Subsecs. (a), (b)(5), (c), (d). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
1981—Subsec. (a). Pub. L. 97–35, § 341(c)(1), inserted
reference to subsec. (f) of this section.
Subsec. (f). Pub. L. 97–35, § 341(c)(2), added subsec. (f).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of Title 12, Banks and Banking.
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4017a. Reserve Fund
(a) Establishment of Reserve Fund
In carrying out the flood insurance program
authorized by this subchapter, the Administrator shall establish in the Treasury of the
United States a National Flood Insurance Reserve Fund (in this section referred to as the
‘‘Reserve Fund’’) which shall—
§ 4017a
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(1) be an account separate from any other
accounts or funds available to the Administrator; and
(2) be available for meeting the expected future obligations of the flood insurance program, including—
(A) the payment of claims;
(B) claims adjustment expenses; and
(C) the repayment of amounts outstanding
under any note or other obligation issued by
the Administrator under section 4016(a) of
this title.
(b) Reserve ratio
Subject to the phase-in requirements under
subsection (d), the Reserve Fund shall maintain
a balance equal to—
(1) 1 percent of the sum of the total potential
loss exposure of all outstanding flood insurance policies in force in the prior fiscal year;
or
(2) such higher percentage as the Administrator determines to be appropriate, taking
into consideration any circumstance that may
raise a significant risk of substantial future
losses to the Reserve Fund.
(c) Maintenance of reserve ratio
(1) In general
The Administrator shall have the authority
to establish, increase, or decrease the amount
of aggregate annual insurance premiums to be
collected for any fiscal year necessary—
(A) to maintain the reserve ratio required
under subsection (b); and
(B) to achieve such reserve ratio, if the actual balance of such reserve is below the
amount required under subsection (b).
(2) Considerations
In exercising the authority granted under
paragraph (1), the Administrator shall consider—
(A) the expected operating expenses of the
Reserve Fund;
(B) the insurance loss expenditures under
the flood insurance program;
(C) any investment income generated
under the flood insurance program; and
(D) any other factor that the Administrator determines appropriate.
(3) Limitations
(A) Rates
In exercising the authority granted under
paragraph (1), the Administrator shall be
subject to all other provisions of this chapter, including any provisions relating to
chargeable premium rates or annual increases of such rates.
(B) Use of additional annual insurance premiums
Notwithstanding any other provision of
law or any agreement entered into by the
Administrator, the Administrator shall ensure that all amounts attributable to the establishment or increase of annual insurance
premiums under paragraph (1) are transferred to the Administrator for deposit into
the Reserve Fund, to be available for meeting the expected future obligations of the
Page 5788
flood insurance program as described in subsection (a)(2).
(4) Deposit of premium surcharges
The Administrator shall deposit in the Reserve Fund any surcharges collected pursuant
to section 4015a of this title.
(d) Phase-in requirements
The phase-in requirements under this subsection are as follows:
(1) In general
Beginning in fiscal year 2013 and not ending
until the fiscal year in which the ratio required under subsection (b) is achieved, in
each such fiscal year the Administrator shall
place in the Reserve Fund an amount equal to
not less than 7.5 percent of the reserve ratio
required under subsection (b).
(2) Amount satisfied
As soon as the ratio required under subsection (b) is achieved, and except as provided
in paragraph (3), the Administrator shall not
be required to set aside any amounts for the
Reserve Fund.
(3) Exception
If at any time after the ratio required under
subsection (b) is achieved, the Reserve Fund
falls below the required ratio under subsection
(b), the Administrator shall place in the Reserve Fund for that fiscal year an amount
equal to not less than 7.5 percent of the reserve ratio required under subsection (b).
(e) Limitation on reserve ratio
In any given fiscal year, if the Administrator
determines that the reserve ratio required under
subsection (b) cannot be achieved, the Administrator shall submit, on a calendar quarterly
basis, a report to Congress that—
(1) describes and details the specific concerns of the Administrator regarding the consequences of the reserve ratio not being
achieved;
(2) demonstrates how such consequences
would harm the long-term financial soundness
of the flood insurance program; and
(3) indicates the maximum attainable reserve ratio for that particular fiscal year.
(f) Investment
The Secretary of the Treasury shall invest
such amounts of the Reserve Fund as the Secretary determines advisable in obligations
issued or guaranteed by the United States.
(Pub. L. 90–448, title XIII, § 1310A, as added Pub.
L. 112–141, div. F, title II, § 100212, July 6, 2012,
126 Stat. 922; amended Pub. L. 113–89, §§ 8(b), 20,
Mar. 21, 2014, 128 Stat. 1024, 1028.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (c)(3)(A), was in
the original ‘‘this Act’’, and was translated as reading
‘‘this title’’, meaning title XIII of Pub. L. 90–448, Aug.
1, 1968, 82 Stat. 572, known as the National Flood Insurance Act of 1968, which is classified principally to this
chapter, to reflect the probable intent of Congress. For
complete classification of this Act to the Code, see
Short Title note set out under section 4001 of this title
and Tables.
Page 5789
TITLE 42—THE PUBLIC HEALTH AND WELFARE
AMENDMENTS
2014—Subsec. (c)(4). Pub. L. 113–89, § 8(b), added par.
(4).
Subsec. (e). Pub. L. 113–89, § 20, inserted ‘‘, on a calendar quarterly basis,’’ after ‘‘submit’’ in introductory
provisions.
§ 4018. Operating costs and allowances; definitions
(a) The Administrator 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 risksharing basis, and
(2) a current schedule of operating allowances applicable to risk-sharing insurance
companies and other insurers,
which may be payable in accordance with the
provisions of subchapter II, and such schedules
shall from time to time be prescribed in regulations.
(b) For purposes of subsection (a)—
(1) the term ‘‘operating costs’’ shall (without
limiting such term) include—
(A) expense reimbursements covering the
direct, actual, and necessary expenses incurred in connection with selling and servicing flood insurance coverage;
(B) reasonable compensation payable for
selling and servicing flood insurance coverage, or commissions or service fees paid to
producers;
(C) loss adjustment expenses; and
(D) other direct, actual, and necessary expenses which the Administrator 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 Administrator finds reasonable and necessary to
carry out the purposes of this chapter.
(Pub. L. 90–448, title XIII, § 1311, Aug. 1, 1968, 82
Stat. 579; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (b)(2), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
2012—Subsecs. (a), (b)(1)(D), (2). Pub. L. 112–141 substituted ‘‘Administrator’’ for ‘‘Director’’.
1983—Subsecs. (a), (b)(1)(D), (2). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
§ 4019
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4019. Payment of claims
(a) In general
The Administrator 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.
(b) Minimum annual deductible
(1) Pre-firm properties
For any structure which is covered by flood
insurance under this chapter, and on which
construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial flood insurance rate map published by the Administrator
under section 4101 of this title for the area in
which such structure is located, the minimum
annual deductible for damage to such structure shall be—
(A) $1,500, if the flood insurance coverage
for such structure covers loss of, or physical
damage to, such structure in an amount
equal to or less than $100,000; and
(B) $2,000, if the flood insurance coverage
for such structure covers loss of, or physical
damage to, such structure in an amount
greater than $100,000.
(2) Post-firm properties
For any structure which is covered by flood
insurance under this chapter, and on which
construction or substantial improvement occurred after December 31, 1974, or after the effective date of an initial flood insurance rate
map published by the Administrator under
section 4101 of this title for the area in which
such structure is located, the minimum annual deductible for damage to such structure
shall be—
(A) $1,000, if the flood insurance coverage
for such structure covers loss of, or physical
damage to, such structure in an amount
equal to or less than $100,000; and
§ 4020
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(B) $1,250, if the flood insurance coverage
for such structure covers loss of, or physical
damage to, such structure in an amount
greater than $100,000.
(c) Payment of claims to condominium owners
The Administrator may not deny payment for
any damage to or loss of property which is covered by flood insurance to condominium owners
who purchased such flood insurance separate
and apart from the flood insurance purchased by
the condominium association in which such
owner is a member, based solely, or in any part,
on the flood insurance coverage of the condominium association or others on the overall
property owned by the condominium association.
(Pub. L. 90–448, title XIII, § 1312, Aug. 1, 1968, 82
Stat. 579; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, §§ 100210, 100214, July 6,
2012, 126 Stat. 920, 924.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a) and (b), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
AMENDMENTS
2012—Pub. L. 112–141, § 100210, designated existing provisions as subsec. (a) and inserted heading, substituted
‘‘The Administrator is’’ for ‘‘The Director is’’, and
added subsec. (b).
Subsec. (c). Pub. L. 112–141, § 100214, added subsec. (c).
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4020. Dissemination of flood insurance information
The Administrator shall from time to time
take such action as may be necessary in order to
Page 5790
make information and data available to the public, and to any State or local agency or official,
with regard to—
(1) the flood insurance program, its coverage
and objectives, and
(2) estimated and chargeable flood insurance
premium rates, including the basis for and differences between such rates in accordance
with the provisions of section 4015 of this title.
(Pub. L. 90–448, title XIII, § 1313, Aug. 1, 1968, 82
Stat. 579; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’ in introductory provisions.
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ in introductory provisions.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4021. Participation in State disaster claims mediation programs
(a) Requirement to participate
In the case of the occurrence of a major disaster, as defined in section 5122 of this title, that
may have resulted in flood damage covered
under the national flood insurance program established under this chapter and other personal
lines residential property insurance coverage offered by a State regulated insurer, upon a request made by the insurance commissioner of a
State (or such other official responsible for regulating the business of insurance in the State)
for the participation of representatives of the
Administrator in a program sponsored by such
State for nonbinding mediation of insurance
claims resulting from a major disaster, the Administrator shall cause representatives of the
national flood insurance program to participate
in such a State program where claims under the
national flood insurance program are involved
to expedite settlement of flood damage claims
resulting from such disaster.
Page 5791
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(b) Extent of participation
In satisfying the requirements of subsection
(a), the Administrator shall require that each
representative of the Administrator—
(1) be certified for purposes of the national
flood insurance program to settle claims
against such program resulting from such disaster in amounts up to the limits of policies
under such program;
(2) attend State-sponsored mediation meetings regarding flood insurance claims resulting from such disaster at such times and
places as may be arranged by the State;
(3) participate in good-faith negotiations toward the settlement of such claims with policyholders of coverage made available under
the national flood insurance program; and
(4) finalize the settlement of such claims on
behalf of the national flood insurance program
with such policyholders.
(c) Coordination
Representatives of the Administrator shall at
all times coordinate their activities with insurance officials of the State and representatives of
insurers for the purposes of consolidating and
expediting settlement of claims under the national flood insurance program resulting from
such disaster.
(d) Qualifications of mediators
Each State mediator participating in Statesponsored mediation under this section shall
be—
(1)(A) a member in good standing of the
State bar in the State in which the mediation
is to occur with at least 2 years of practical
experience; and
(B) an active member of such bar for at least
1 year prior to the year in which such mediator’s participation is sought; or
(2) a retired trial judge from any United
States jurisdiction who was a member in good
standing of the bar in the State in which the
judge presided for at least 5 years prior to the
year in which such mediator’s participation is
sought.
(e) Mediation proceedings and documents privileged
As a condition of participation, all statements
made and documents produced pursuant to
State-sponsored mediation involving representatives of the Administrator shall be deemed privileged and confidential settlement negotiations
made in anticipation of litigation.
(f) Liability, rights, or obligations not affected
Participation in State-sponsored mediation, as
described in this section does not—
(1) affect or expand the liability of any party
in contract or in tort; or
(2) affect the rights or obligations of the parties, as established—
(A) in any regulation issued by the Administrator, including any regulation relating
to a standard flood insurance policy;
(B) under this chapter; and
(C) under any other provision of Federal
law.
(g) Exclusive Federal jurisdiction
Participation in State-sponsored mediation
shall not alter, change, or modify the original
§ 4022
exclusive jurisdiction of United States courts, as
set forth in this chapter.
(h) Cost limitation
Nothing in this section shall be construed to
require the Administrator or a representative of
the Administrator to pay additional mediation
fees relating to flood insurance claims associated with a State-sponsored mediation program
in which such representative of the Administrator participates.
(i) Exception
In the case of the occurrence of a major disaster that results in flood damage claims under
the national flood insurance program and that
does not result in any loss covered by a personal
lines residential property insurance policy—
(1) this section shall not apply; and
(2) the provisions of the standard flood insurance policy under the national flood insurance
program and the appeals process established
under section 205 of the Bunning-BereuterBlumenauer Flood Insurance Reform Act of
2004 (42 U.S.C. 4011 note) and the regulations
issued pursuant to such section shall apply exclusively.
(j) Representatives of the Administrator
For purposes of this section, the term ‘‘representatives of the Administrator’’ means representatives of the national flood insurance program who participate in the appeals process established under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act
of 2004 (42 U.S.C. 4011 note).
(Pub. L. 90–448, title XIII, § 1314, as added Pub. L.
112–141, div. F, title II, § 100223, July 6, 2012, 126
Stat. 934.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a), (f)(2)(B), and
(g), was in the original a reference to ‘‘this title’’ meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572,
known as the National Flood Insurance Act of 1968,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short
Title note set out under section 4001 of this title and
Tables.
Section 205 of the Bunning-Bereuter-Blumenauer
Flood Insurance Reform Act of 2004, referred to in subsecs. (i)(2) and (j), is section 205 of Pub. L. 108–264,
which is set out in a note under section 4011 of this
title.
PRIOR PROVISIONS
A prior section 4021, Pub. L. 90–448, title XIII, § 1314,
Aug. 1, 1968, 82 Stat. 579, which denied Federal disaster
assistance after Dec. 31, 1973, to persons who for a period of a year or more could have purchased flood insurance but did not do so, and defined ‘‘Federal disaster
assistance’’ and ‘‘financial assistance’’, was repealed by
Pub. L. 93–234, title II, § 203, Dec. 31, 1973, 87 Stat. 982.
§ 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)
§ 4022
TITLE 42—THE PUBLIC HEALTH AND WELFARE
unless an appropriate public body shall have
adopted adequate land use and control measures (with effective enforcement provisions)
which the Administrator finds are consistent
with the comprehensive criteria for land management and use under section 4102 of this
title.
(2) Agricultural structures
(A) Activity restrictions
Notwithstanding any other provision of
law, the adequate land use and control measures required to be adopted in an area (or
subdivision thereof) pursuant to paragraph
(1) may provide, at the discretion of the appropriate State or local authority, for the
repair and restoration to predamaged conditions of an agricultural structure that—
(i) is a repetitive loss structure; or
(ii) has incurred flood-related damage to
the extent that the cost of restoring the
structure to its predamaged condition
would equal or exceed 50 percent of the
market value of the structure before the
damage occurred.
(B) Premium rates and coverage
To the extent applicable, an agricultural
structure repaired or restored pursuant to
subparagraph (A) shall pay chargeable premium rates established under section 4015 of
this title at the estimated risk premium
rates under section 4014(a)(1) of this title. If
resources are available, the Administrator
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 Administrator
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 Administrator.
(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 Administrator 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 Administrator shall carry out a community rating system program, under which communities participate voluntarily—
Page 5792
(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 Administrator 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
Administrator may provide for credits to flood
insurance premium rates in communities that
the Administrator 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 Administrator, 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 Administrator 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 Administrator for legislation regarding the program.
(c) Replacement of mobile homes on original
sites
(1) Community participation
The placement of any mobile home on any
site shall not affect the eligibility of any community to participate in the flood insurance
program under this chapter and the Flood Disaster Protection Act of 1973 (notwithstanding
that such placement may fail to comply with
any elevation or flood damage mitigation requirements), if—
(A) such mobile home was previously located on such site;
(B) such mobile home was relocated from
such site because of flooding that threatened
or affected such site; and
(C) such replacement is conducted not
later than the expiration of the 180-day period that begins upon the subsidence (in the
area of such site) of the body of water that
flooded to a level considered lower than
flood levels.
Page 5793
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(2) Definition
For purposes of this subsection, the term
‘‘mobile home’’ has the meaning given such
term in the law of the State in which the mobile home is located.
(Pub. L. 90–448, title XIII, § 1315, Aug. 1, 1968, 82
Stat. 580; Pub. L. 91–152, title IV, § 410(b), Dec. 24,
1969, 83 Stat. 397; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
103–325, title V, §§ 541, 580, Sept. 23, 1994, 108 Stat.
2268, 2285; Pub. L. 108–264, title I, § 108, June 30,
2004, 118 Stat. 724; Pub. L. 112–141, div. F, title II,
§ 100238(b)(1), July 6, 2012, 126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a)(1) and (c)(1),
was in the original a reference to ‘‘this title’’ meaning
title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572,
known as the National Flood Insurance Act of 1968,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short
Title note set out under section 4001 of this title and
Tables.
The Flood Disaster Protection Act of 1973, referred to
in subsec. (c)(1), is Pub. L. 93–234, Dec. 31, 1973, 87 Stat.
975, as amended. For complete classification of this Act
to the Code, see Short Title of 1973 Amendment note
set out under section 4001 of this title and Tables.
AMENDMENTS
2012—Subsecs. (a)(1), (2)(B), (C), (b). Pub. L. 112–141
substituted ‘‘Administrator’’ for ‘‘Director’’ wherever
appearing.
2004—Subsec. (c). Pub. L. 108–264 added subsec. (c).
1994—Subsec. (a)(1). Pub. L. 103–325, § 541(1), designated existing provisions as subsec. (a)(1) and inserted headings.
Subsec. (a)(2). Pub. L. 103–325, § 580, added par. (2).
Subsec. (b). Pub. L. 103–325, § 541(2), added subsec. (b).
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
1969—Pub. L. 91–152 substituted provisions prohibiting
new flood insurance coverage after Dec. 31, 1971, unless
adequate land use measures have been adopted, for provisions prohibiting such coverage after June 30, 1970,
unless permanent land use measures have been adopted.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4024
§ 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 Administrator 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.
(Pub. L. 90–448, title XIII, § 1316, Aug. 1, 1968, 82
Stat. 580; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’.
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4024. Coordination with other programs
In carrying out this chapter, the Administrator 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.
(Pub. L. 90–448, title XIII, § 1317, Aug. 1, 1968, 82
Stat. 581; Pub. L. 98–181, title I [title IV,
§ 4025
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
Page 5794
to receive compensation at a rate fixed by the
Administrator but not exceeding $100 per day,
including traveltime, and while so serving away
from their homes or regular places of business
they may be allowed travel expenses, including
per diem in lieu of subsistence, as is authorized
under section 5703 of title 5 for persons in the
Government service employed intermittently.
(Pub. L. 90–448, title XIII, § 1318, Aug. 1, 1968, 82
Stat. 581; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’.
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4025. Flood insurance advisory committee
(a) Appointment; duties
The Administrator shall appoint a flood insurance advisory committee without regard to the
provisions of title 5 governing appointments in
the competitive service, and such committee
shall advise the Administrator 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 Administrator may, from time
to time, assign to such committee.
(b) Membership
Such committee shall consist of not more
than fifteen persons and such persons shall be
selected from among representatives of—
(1) the insurance industry,
(2) State and local governments,
(3) lending institutions,
(4) the homebuilding industry, and
(5) the general public.
(c) Compensation and travel expenses
Members of the committee shall, while attending conferences or meetings thereof, be entitled
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
2012—Subsecs. (a), (c). Pub. L. 112–141 substituted
‘‘Administrator’’ for ‘‘Director’’ wherever appearing.
1983—Subsecs. (a), (c). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
TERMINATION OF ADVISORY COMMITTEES
Advisory committees in existence on Jan. 5, 1973, to
terminate not later than the expiration of the 2-year
period following Jan. 5, 1973, unless, in the case of a
committee established by the President or an officer of
the Federal Government, such committee is renewed by
appropriate action prior to the expiration of such 2year period, or in the case of a committee established
by the Congress, its duration is otherwise provided by
law. Advisory committees established after Jan. 5, 1973,
to terminate not later than the expiration of the 2-year
period beginning on the date of their establishment,
unless, in the case of a committee established by the
President or an officer of the Federal Government, such
committee is renewed by appropriate action prior to
the expiration of such 2-year period, or in the case of
a committee established by the Congress, its duration
Page 5795
TITLE 42—THE PUBLIC HEALTH AND WELFARE
is otherwise provided by law. See section 14 of Pub. L.
92–463, Oct. 6, 1972, 86 Stat. 776, set out in the Appendix
to Title 5, Government Organization and Employees.
§ 4026. Expiration of program
No new contract for flood insurance under this
chapter shall be entered into after September 30,
2021.
(Pub. L. 90–448, title XIII, § 1319, Aug. 1, 1968, 82
Stat. 581; Pub. L. 93–4, Feb. 2, 1973, 87 Stat. 4;
Pub. L. 93–38, June 5, 1973, 87 Stat. 73; Pub. L.
93–234, title I, § 105, Dec. 31, 1973, 87 Stat. 979;
Pub. L. 95–60, § 3, June 30, 1977, 91 Stat. 257; Pub.
L. 95–80, § 3, July 31, 1977, 91 Stat. 339; Pub. L.
95–128, title VII, § 701(a), Oct. 12, 1977, 91 Stat.
1144; Pub. L. 95–406, § 6(a), Sept. 30, 1978, 92 Stat.
880; Pub. L. 95–557, title III, § 308(a), Oct. 31, 1978,
92 Stat. 2098; Pub. L. 96–153, title VI, § 602(a),
Dec. 21, 1979, 93 Stat. 1137; Pub. L. 97–35, title III,
§ 341(b)(1), Aug. 13, 1981, 95 Stat. 418; Pub. L.
97–289, § 4(a), Oct. 6, 1982, 96 Stat. 1231; Pub. L.
98–35, § 4(a), May 26, 1983, 97 Stat. 198; Pub. L.
98–109, § 5(a), Oct. 1, 1983, 97 Stat. 746; Pub. L.
98–181, title I [title IV, § 451(a)], Nov. 30, 1983, 97
Stat. 1229; Pub. L. 99–120, § 4(a)(1), Oct. 8, 1985, 99
Stat. 503; Pub. L. 99–156, § 4(a)(1), Nov. 15, 1985, 99
Stat. 816; Pub. L. 99–219, § 4(a)(1), Dec. 26, 1985, 99
Stat. 1731; Pub. L. 99–267, § 4(a)(1), Mar. 27, 1986,
100 Stat. 74; Pub. L. 99–272, title III, § 3010(a)(1),
Apr. 7, 1986, 100 Stat. 106; Pub. L. 99–289, § 1(b),
May 2, 1986, 100 Stat. 412; Pub. L. 99–345, § 1, June
24, 1986, 100 Stat. 673; Pub. L. 99–430, Sept. 30,
1986, 100 Stat. 986; Pub. L. 100–122, § 1, Sept. 30,
1987, 101 Stat. 793; Pub. L. 100–154, Nov. 5, 1987,
101 Stat. 890; Pub. L. 100–170, Nov. 17, 1987, 101
Stat. 914; Pub. L. 100–179, Dec. 3, 1987, 101 Stat.
1018; Pub. L. 100–200, Dec. 21, 1987, 101 Stat. 1327;
Pub. L. 100–242, title V, § 541(a), Feb. 5, 1988, 101
Stat. 1939; Pub. L. 101–137, § 1(a), Nov. 3, 1989, 103
Stat. 824; Pub. L. 101–508, title II, § 2302(a), Nov.
5, 1990, 104 Stat. 1388–23; Pub. L. 103–325, title V,
§ 571(a), Sept. 23, 1994, 108 Stat. 2277; Pub. L.
104–204, title III, Sept. 26, 1996, 110 Stat. 2915;
Pub. L. 105–46, § 118, Sept. 30, 1997, 111 Stat. 1157;
Pub. L. 105–65, title III, Oct. 27, 1997, 111 Stat.
1377; Pub. L. 105–276, title III, title V, § 599D(a),
Oct. 21, 1998, 112 Stat. 2502, 2663; Pub. L. 107–73,
title III, Nov. 26, 2001, 115 Stat. 689; Pub. L. 108–3,
§ 2(a)(2), Jan. 13, 2003, 117 Stat. 7; Pub. L. 108–171,
§ 2(a)(1), Dec. 6, 2003, 117 Stat. 2064; Pub. L.
108–199, div. H, § 136(a)(1), Jan. 23, 2004, 118 Stat.
442; Pub. L. 108–264, title I, § 101(b), June 30, 2004,
118 Stat. 714; Pub. L. 111–196, § 2(a), July 2, 2010,
124 Stat. 1352; Pub. L. 111–250, § 2(a), Sept. 30,
2010, 124 Stat. 2630; Pub. L. 112–74, div. D, title V,
§ 573, Dec. 23, 2011, 125 Stat. 985; Pub. L. 112–123,
§ 1(a), May 31, 2012, 126 Stat. 365; Pub. L. 112–141,
div. F, title II, § 100203(b), July 6, 2012, 126 Stat.
916; Pub. L. 115–225, § 2(b), July 31, 2018, 132 Stat.
1624; Pub. L. 115–281, § 2(b), Dec. 1, 2018, 132 Stat.
4191; Pub. L. 115–396, § 2(b), Dec. 21, 2018, 132 Stat.
5296; Pub. L. 116–19, § 2(b), May 31, 2019, 133 Stat.
870; Pub. L. 116–20, title XII, § 1207(b), June 6,
2019, 133 Stat. 901; Pub. L. 116–159, div. A, § 146(b),
Oct. 1, 2020, 134 Stat. 718.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
§ 4026
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
2020—Pub. L. 116–159 substituted ‘‘September 30, 2021’’
for ‘‘September 30, 2019’’.
2019—Pub. L. 116–20 substituted ‘‘September 30, 2019’’
for ‘‘June 14, 2019’’.
Pub. L. 116–19 substituted ‘‘June 14, 2019’’ for ‘‘May 31,
2019’’.
2018—Pub. L. 115–396 substituted ‘‘May 31, 2019’’ for
‘‘December 7, 2018’’.
Pub. L. 115–281 substituted ‘‘December 7, 2018’’ for
‘‘November 30, 2018’’.
Pub. L. 115–225 substituted ‘‘November 30, 2018’’ for
‘‘September 30, 2017’’.
2012—Pub. L. 112–141 substituted ‘‘September 30, 2017’’
for ‘‘July 31, 2012’’.
Pub. L. 112–123 substituted ‘‘July 31, 2012’’ for ‘‘the
earlier of the date of the enactment into law of an Act
that specifically amends the date specified in this section or May 31, 2012’’.
2011—Pub. L. 112–74 substituted ‘‘the earlier of the
date of the enactment into law of an Act that specifically amends the date specified in this section or May
31, 2012’’ for ‘‘September 30, 2011’’.
2010—Pub. L. 111–250 substituted ‘‘September 30, 2011’’
for ‘‘September 30, 2010’’.
Pub. L. 111–196 substituted ‘‘September 30, 2010’’ for
‘‘September 30, 2008’’.
2004—Pub. L. 108–264 substituted ‘‘after September 30,
2008’’ for ‘‘after March 31, 2004’’.
Pub. L. 108–199, which directed the substitution of
‘‘June 30, 2004.’’ for ‘‘December 31, 2003’’, could not be
executed because of the amendment by Pub. L. 108–171.
See 2003 Amendment note below.
2003—Pub. L. 108–171 substituted ‘‘March 31, 2004’’ for
‘‘December 31, 2003’’.
Pub. L. 108–3 substituted ‘‘after December 31, 2003’’
for ‘‘after December 31, 2002’’.
2001—Pub. L. 107–73 substituted ‘‘December 31, 2002’’
for ‘‘September 30, 2001’’.
1998—Pub. L. 105–276, § 599D(a), which directed the
substitution of ‘‘2001’’ for ‘‘1998’’, was executed by substituting ‘‘2001’’ for ‘‘1999’’ to reflect the probable intent of Congress and the amendment by Pub. L. 105–276,
title III, see below.
Pub. L. 105–276, title III, substituted ‘‘1999’’ for ‘‘1998’’.
1997—Pub. L. 105–65 substituted ‘‘September 30, 1998’’
for ‘‘October 23, 1997’’.
Pub. L. 105–46 substituted ‘‘October 23, 1997’’ for ‘‘September 30, 1997’’.
1996—Pub. L. 104–204 substituted ‘‘September 30, 1997’’
for ‘‘September 30, 1996’’.
1994—Pub. L. 103–325 substituted ‘‘September 30, 1996’’
for ‘‘September 30, 1995’’.
1990—Pub. L. 101–508 substituted ‘‘September 30, 1995’’
for ‘‘September 30, 1991’’.
1989—Pub. L. 101–137 substituted ‘‘September 30, 1991’’
for ‘‘September 30, 1989’’.
1988—Pub. L. 100–242 substituted ‘‘September 30, 1989’’
for ‘‘March 15, 1988’’.
1987—Pub. L. 100–200 substituted ‘‘March 15, 1988’’ for
‘‘December 16, 1987’’.
Pub. L. 100–179 substituted ‘‘December 16, 1987’’ for
‘‘December 2, 1987’’.
Pub. L. 100–170 substituted ‘‘December 2, 1987’’ for
‘‘November 15, 1987’’.
Pub. L. 100–154 substituted ‘‘November 15, 1987’’ for
‘‘October 31, 1987’’.
Pub. L. 100–122 substituted ‘‘October 31, 1987’’ for
‘‘September 30, 1987’’.
1986—Pub. L. 99–430 substituted ‘‘September 30, 1987’’
for ‘‘September 30, 1986’’.
Pub. L. 99–345 substituted ‘‘September 30, 1986’’ for
‘‘June 6, 1986’’.
Pub. L. 99–289 substituted ‘‘June 6, 1986’’ for ‘‘April 30,
1986’’.
§ 4027
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Pub. L. 99–272 directed amendment identical to Pub.
L. 99–219 substituting ‘‘March 17, 1986’’ for ‘‘December
15, 1985’’.
Pub. L. 99–267 substituted ‘‘April 30, 1986’’ for ‘‘March
17, 1986’’.
1985—Pub. L. 99–219 substituted ‘‘March 17, 1986’’ for
‘‘December 15, 1985’’.
Pub. L. 99–156 substituted ‘‘December 15, 1985’’ for
‘‘November 14, 1985’’.
Pub. L. 99–120 substituted ‘‘November 14, 1985’’ for
‘‘September 30, 1985’’.
1983—Pub. L. 98–181 substituted ‘‘September 30, 1985’’
for ‘‘November 30, 1983’’.
Pub. L. 98–109 substituted ‘‘November 30, 1983’’ for
‘‘September 30, 1983’’.
Pub. L. 98–35 substituted ‘‘September 30, 1983’’ for
‘‘May 20, 1983’’.
1982—Pub. L. 97–289 substituted ‘‘May 20, 1983’’ for
‘‘September 30, 1982’’.
1981—Pub. L. 97–35 substituted ‘‘1982’’ for ‘‘1981’’.
1979—Pub. L. 96–153 substituted ‘‘September 30, 1981’’
for ‘‘September 30, 1980’’.
1978—Pub. L. 95–557 substituted ‘‘September 30, 1980’’
for ‘‘October 31, 1978’’.
Pub. L. 95–406 substituted ‘‘October 31, 1978’’ for ‘‘September 30, 1978’’.
1977—Pub. L. 95–128 substituted ‘‘September 30, 1978’’
for ‘‘September 30, 1977’’.
Pub. L. 95–80 substituted ‘‘September 30, 1977’’ for
‘‘July 31, 1977’’.
Pub. L. 95–60 substituted ‘‘July 31, 1977’’ for ‘‘June 30,
1977’’.
1973—Pub. L. 93–234 substituted expiration of program
provisions for $6,000,000,000 limitation on flood insurance coverage outstanding.
Pub. L. 93–38 substituted ‘‘$6,000,000,000’’ for
‘‘$4,000,000,000’’.
Pub.
L.
93–4
substituted
‘‘$4,000,000,000’’
for
‘‘$2,500,000,000’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2020 AMENDMENT
Amendment by Pub. L. 116–159 effective immediately
upon enactment (Oct. 1, 2020), and applicable as if it
were in effect on Sept. 30, 2020, see section 146(c) of Pub.
L. 116–159, set out as a note under section 4016 of this
title.
EFFECTIVE DATE OF 2018 AMENDMENT
Amendment by Pub. L. 115–396 effective as if enacted
on Dec. 7, 2018, see section 2(c) of Pub. L. 115–396, set
out as a note under section 4016 of this title.
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Pub. L. 111–196 considered effective on
May 31, 2010, see section 2(c) of Pub. L. 111–196, set out
as a note under section 4016 of this title.
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108–199 considered to have
taken effect on Dec. 31, 2003, see section 136(b) of div. H
of Pub. L. 108–199, set out as a note under section 4016
of this title.
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendment by Pub. L. 108–171 effective Dec. 31, 2003,
see section 2(b) of Pub. L. 108–171, set out as a note
under section 4016 of this title.
Amendment by Pub. L. 108–3 effective Dec. 31, 2002,
see section 2(b) of Pub. L. 108–3, set out as a note under
section 4016 of this title.
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105–276, title V, § 599D(c), Oct. 21, 1998, 112
Stat. 2663, provided that: ‘‘The amendments made by
this section [amending this section and section 4056 of
this title] are made on, and shall apply beginning upon,
the date of the enactment of this Act [Oct. 21, 1998].’’
Page 5796
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of Title 12, Banks and Banking.
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
EXTENSION OF PROGRAM
Pub. L. 116–94, div. I, title II, § 201, Dec. 20, 2019, 133
Stat. 3019, provided that: ‘‘Sections 1309(a) and 1319 of
the National Flood Insurance Act of 1968 (42 U.S.C.
4016(a) and 4026) shall be applied by substituting ‘September 30, 2020’ for ‘September 30, 2019’.’’
Pub. L. 115–141, div. M, title III, § 301, Mar. 23, 2018, 132
Stat. 1049, provided that: ‘‘Sections 1309(a) and 1319 of
the National Flood Insurance Act of 1968 (42 U.S.C.
4016(a) and 4026) shall be applied by substituting ‘July
31, 2018’ for ‘September 30, 2017’.’’
Pub. L. 110–329, div. A, § 145, Sept. 30, 2008, 122 Stat.
3581, as amended by Pub. L. 111–8, div. J, § 101, Mar. 11,
2009, 123 Stat. 988, provided that sections 1309(a) and
1319 of the National Flood Insurance Act of 1968 (42
U.S.C. 4016(a) and 4026) should each be applied by substituting ‘‘September 30, 2009’’ for ‘‘September 30, 2008’’.
Pub. L. 105–64, Oct. 23, 1997, 111 Stat. 1343, provided
that the provision amended by section 118 of Pub. L.
105–46 (see 1997 Amendment note above) should be applied as if ‘‘November 7, 1997’’ was substituted for ‘‘October 23, 1997’’.
§ 4027. Biennial report to President
(a) In general
The Administrator 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 Administrator shall include, as part of the
biennial report submitted under subsection (a),
a chapter reporting on the effects on the flood
insurance program observed through implementation of requirements under the Riegle Community Development and Regulatory Improvement
Act of 1994.
(Pub. L. 90–448, title XIII, § 1320, Aug. 1, 1968, 82
Stat. 581; Pub. L. 96–470, title II, § 205(b), Oct. 19,
1980, 94 Stat. 2244; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
103–325, title V, § 581, Sept. 23, 1994, 108 Stat. 2286;
Pub. L. 112–141, div. F, title II, § 100238(b)(1), July
6, 2012, 126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
The Riegle Community Development and Regulatory
Improvement Act of 1994, referred to in subsec. (b), is
Pub. L. 103–325, Sept. 23, 1994, 108 Stat. 2160. For complete classification of this Act to the Code, see Short
Title note set out under section 4701 of Title 12, Banks
and Banking, and Tables.
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’ in subsecs. (a) and (b).
Page 5797
TITLE 42—THE PUBLIC HEALTH AND WELFARE
1994—Pub. L. 103–325 designated existing provisions as
subsec. (a), inserted heading, and added subsec. (b).
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
1980—Pub. L. 96–470 substituted ‘‘biennially submit’’
for ‘‘include’’ and struck out ‘‘in the annual report’’
after ‘‘under this chapter’’ and ‘‘required by section
3536 of this title’’ after ‘‘the Congress’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4027a. Report of the Administrator on activities
under the National Flood Insurance Program
(1) In general
The Administrator shall, on an annual basis,
submit a full report on the operations, activities, budget, receipts, and expenditures of the
National Flood Insurance Program for the preceding 12-month period to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of
the House of Representatives.
(2) Timing
Each report required under paragraph (1) shall
be submitted to the committees described in
paragraph (1) not later than 3 months following
the end of each fiscal year.
(3) Contents
Each report required under paragraph (1) shall
include—
(A) the current financial condition and income statement of the National Flood Insurance Fund established under section 4017 of
this title, including—
(i) premiums paid into such Fund;
(ii) policy claims against such Fund; and
(iii) expenses in administering such Fund;
(B) the number and face value of all policies
issued under the National Flood Insurance
Program that are in force;
(C) a description and summary of the losses
attributable to repetitive loss structures;
(D) a description and summary of all losses
incurred by the National Flood Insurance Program due to—
(i) hurricane related damage; and
§ 4027b
(ii) nonhurricane related damage;
(E) the amounts made available by the Administrator for mitigation assistance under
section 4104c(c)(4) of this title, as so redesignated by this Act, for the purchase of properties substantially damaged by flood for that
fiscal year, and the actual number of flood
damaged properties purchased and the total
cost expended to purchase such properties;
(F) the estimate of the Administrator as to
the average historical loss year, and the basis
for that estimate;
(G) the estimate of the Administrator as to
the maximum amount of claims that the National Flood Insurance Program would have to
expend in the event of a catastrophic year;
(H) the average—
(i) amount of insurance carried per flood
insurance policy;
(ii) premium per flood insurance policy;
and
(iii) loss per flood insurance policy; and
(I) the number of claims involving damages
in excess of the maximum amount of flood insurance available under the National Flood Insurance Program and the sum of the amount
of all damages in excess of such amount.
(Pub. L. 112–141, div. F, title II, § 100231(b), July
6, 2012, 126 Stat. 950.)
Editorial Notes
REFERENCES IN TEXT
This Act, referred to in par. (3)(E), is Pub. L. 112–141,
July 6, 2012, 126 Stat. 405, known as the Moving Ahead
for Progress in the 21st Century Act and also as the
MAP–21. For complete classification of this Act to the
Code, see Short Title of 2012 Amendment note set out
under section 101 of Title 23, Highways, and Tables.
CODIFICATION
Section was enacted as part of the Biggert-Waters
Flood Insurance Reform Act of 2012, and also as part of
the Moving Ahead for Progress in the 21st Century Act,
also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this
chapter.
Statutory Notes and Related Subsidiaries
DEFINITIONS
For definitions of terms used in this section, see section 4004 of this title.
§ 4027b. Assessment of claims-paying ability
(1) Assessment
(A) Assessment required
(i) In general
Not later than September 30 of each year,
the Administrator shall conduct an assessment of the ability of the National Flood Insurance Program to pay claims.
(ii) Private market reinsurance
The assessment under this paragraph for
any year in which the Administrator exercises the authority under section 4055(a)(2) of
this title, as added by this section,1 to secure
1 See
References in Text note below.
§ 4028
TITLE 42—THE PUBLIC HEALTH AND WELFARE
reinsurance of coverage provided by the National Flood Insurance Program from the
private market shall include information relating the use of private sector reinsurance
and reinsurance equivalents by the Administrator, whether or not the Administrator
used the borrowing authority under section
4016 of this title.
(iii) First assessment
The Administrator shall conduct the first
assessment required under this paragraph
not later than September 30, 2012.
(B) Considerations
In conducting an assessment under subparagraph (A), the Administrator shall take into
consideration regional concentrations of coverage written by the National Flood Insurance
Program, peak flood zones, and relevant mitigation measures.
(2) Annual report of the Administrator of activities under the National Flood Insurance Program
The Administrator shall—
(A) include the results of each assessment in
the report required under section 4027a of this
title; and
(B) not later than 30 days after the date on
which the Administrator completes an assessment required under paragraph (1), make the
results of the assessment available to the public.
(Pub. L. 112–141, div. F, title II, § 100232(e), July
6, 2012, 126 Stat. 955.)
Editorial Notes
REFERENCES IN TEXT
This section, referred to in par. (1)(A)(ii), means section 100232 of Pub. L. 112–141, which enacted this section
and amended sections 4051, 4052, 4055, 4082, and 4121 of
this title.
CODIFICATION
Section was enacted as part of the Biggert-Waters
Flood Insurance Reform Act of 2012, and also as part of
the Moving Ahead for Progress in the 21st Century Act,
also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this
chapter.
Statutory Notes and Related Subsidiaries
DEFINITIONS
For definitions of terms used in this section, see section 4004 of this title.
§ 4028. John H. Chafee Coastal Barrier Resources
System
(a) No new flood insurance coverage may be
provided under this chapter on or after October
1, 1983, for any new construction or substantial
improvements of structures located on any
coastal barrier within the John H. Chafee Coastal Barrier Resources System established by section 3503 of title 16. A federally insured financial
institution may make loans secured by structures which are not eligible for flood insurance
by reason of this section.
(b) No new flood insurance coverage may be
provided under this chapter after the expiration
Page 5798
of the 1-year period beginning on November 16,
1990, for any new construction or substantial improvements of structures located in any area
identified and depicted on the maps referred to
in section 3503(a) of title 16 as an area that is (1)
not within the John H. Chafee Coastal Barrier
Resources System and (2) is in an otherwise protected area. Notwithstanding the preceding sentence, new flood insurance coverage may be provided for structures in such protected areas that
are used in a manner consistent with the purpose for which the area is protected.
(Pub. L. 90–448, title XIII, § 1321, as added Pub. L.
97–35, title III, § 341(d)(1), Aug. 13, 1981, 95 Stat.
419; amended Pub. L. 97–348, § 11(a), Oct. 18, 1982,
96 Stat. 1658; Pub. L. 101–591, § 9, Nov. 16, 1990, 104
Stat. 2938; Pub. L. 106–167, § 3(c)(7), Dec. 9, 1999,
113 Stat. 1804.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
1999—Pub. L. 106–167 amended section catchline and
substituted ‘‘John H. Chafee Coastal Barrier Resources
System’’ for ‘‘Coastal Barrier Resources System’’ in
subsecs. (a) and (b).
1990—Pub. L. 101–591 designated existing provisions as
subsec. (a) and added subsec. (b).
1982—Subsecs. (a) to (c). Pub. L. 97–348 struck out subsec. designations in subsecs. (a) and (c), in provisions of
former subsec. (a) substituted ‘‘on any coastal barrier
within the Coastal Barrier Resources System established by section 3503 of title 16’’ for ‘‘on undeveloped
coastal barriers which shall be designated by the Secretary of the Interior’’, and struck out subsec. (b)
which provided definitions for purposes of this section.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective Oct. 1, 1981, see section 371 of Pub.
L. 97–35, set out as a note under section 3701 of Title 12,
Banks and Banking.
STUDY FOR DESIGNATION OF UNDEVELOPED COASTAL
BARRIERS; REPORT AND RECOMMENDATIONS TO CONGRESS
Pub. L. 97–35, title III, § 341(d)(2), Aug. 13, 1981, 95
Stat. 419, relating to a study by the Secretary of the Interior for the purpose of designating the undeveloped
coastal barriers affected by this section, and transmittal to Congress of a report on such study, was repealed by Pub. L. 97–348, § 11(b), Oct. 18, 1982, 96 Stat.
1659.
§ 4029. Colorado River Floodway
(a) Renewal and transfer of policies; acquisition
of policies after filing of maps
Owners of existing National Flood Insurance
Act policies with respect to structures located
within the Floodway established under section
1600c of title 43 shall have the right to renew and
transfer such policies. Owners of existing structures located within said Floodway on October 8,
1986, who have not acquired National Flood In-
Page 5799
TITLE 42—THE PUBLIC HEALTH AND WELFARE
surance Act policies shall have the right to acquire policies with respect to such structures for
six months after the Secretary of the Interior
files the Floodway maps required by section
1600c(b)(2) 1 of title 43 and to renew and transfer
such policies.
(b) New coverage for new construction or substantial improvements
No new flood insurance coverage may be provided under this chapter on or after a date six
months after October 8, 1986, for any new construction or substantial improvements of structures located within the Colorado River
Floodway established by section 1600c of title 43.
New construction includes all structures that
are not insurable prior to that date.
(c) Establishment of temporary boundaries
The Secretary of the Interior may by rule
after notice and comment pursuant to section
553 of title 5 establish temporary Floodway
boundaries to be in effect until the maps required by section 1600c(b)(2) 1 of title 43 are filed,
for the purpose of enforcing subsections (b) and
(d) of this section.
(d) Loans by federally supervised, approved, regulated, or insured financial institutions
A regulated lending institution or Federal
agency lender may make loans secured by structures which are not eligible for flood insurance
by reason of this section: Provided, That prior to
making such a loan, such institution determines
that the loans or structures securing the loan
are within the Floodway.
(Pub. L. 90–448, title XIII, § 1322, as added Pub. L.
99–450, § 12, Oct. 8, 1986, 100 Stat. 1135; amended
Pub. L. 100–242, title V, § 545(e), Feb. 5, 1988, 101
Stat. 1942; Pub. L. 103–325, title V, § 512(b), Sept.
23, 1994, 108 Stat. 2257.)
Editorial Notes
REFERENCES IN TEXT
The National Flood Insurance Act, referred to in subsec. (a), probably means the National Flood Insurance
Act of 1968, title XIII of Pub. L. 90–448, Aug. 1, 1968, 82
Stat. 572, as amended, which is classified principally to
this chapter (§ 4001 et seq.). For complete classification
of this Act to the Code, see Short Title note set out
under section 4001 of this title and Tables.
Section 1600c(b)(2) of title 43, referred to in subsecs.
(a) and (c), was struck out and former subsec. (b)(1)(ii)
redesignated (b)(2) of section 1600c by Pub. L. 105–362,
title IX, § 901(d)(1), Nov. 10, 1998, 112 Stat. 3289. As
amended, section 1600c(b)(2) no longer relates to maps
required to be prepared and filed by the Secretary.
This chapter, referred to in subsec. (b), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
1994—Subsec. (d). Pub. L. 103–325 substituted ‘‘regulated lending institution or Federal agency lender’’ for
‘‘federally supervised, approved, regulated or insured financial institution’’.
1988—Pub. L. 100–242 inserted section catchline.
1 See
References in Text note below.
§ 4032
§ 4030. Repealed. Pub. L. 112–141, div. F, title II,
§ 100225(b), July 6, 2012, 126 Stat. 941
Section, Pub. L. 90–448, title XIII, § 1323, as added Pub.
L. 108–264, title I, § 104(a), June 30, 2004, 118 Stat. 722,
provided funding for mitigation actions that reduce
flood damages to individual properties for which 1 or
more claim payments for losses have been made under
flood insurance coverage under this chapter.
§ 4031. Treatment of certain payments
Assistance provided under a program under
this chapter for flood mitigation activities (including any assistance provided under the mitigation pilot program under section 4102a 1 of this
title, any assistance provided under the mitigation assistance program under section 4104c of
this title, and any funding provided under section 4030 1 of this title) with respect to a property shall not be considered income or a resource of the owner of the property when determining eligibility for or benefit levels under any
income assistance or resource-tested program
that is funded in whole or in part by an agency
of the United States or by appropriated funds of
the United States.
(Pub. L. 90–448, title XIII, § 1324, as added Pub. L.
109–64, § 1, Sept. 20, 2005, 119 Stat. 1997.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
Section 4102a of this title, referred to in text, was repealed by Pub. L. 112–141, div. F, title II, § 100225(c),
July 6, 2012, 126 Stat. 941.
Section 4030 of this title, referred to in text, was repealed by Pub. L. 112–141, div. F, title II, § 100225(b),
July 6, 2012, 126 Stat. 941.
§ 4032. Treatment of swimming pool enclosures
outside of hurricane season
(a) In general
Notwithstanding any other provision of law,
including the adequate land use and control
measures developed pursuant to section 4102 of
this title and applicable to non-one- and twofamily structures located within coastal areas,
as identified by the Administrator, the following
may be permitted:
(1) Nonsupporting breakaway walls in the
space below the lowest elevated floor of a
building, if the space is used solely for a swimming pool between November 30 and June 1 of
any year, in an area designated as Zone V on
a flood insurance rate map.
(2) Openings in walls in the space below the
lowest elevated floor of a building, if the space
is used solely for a swimming pool between
November 30 and June 1 of any year, in an area
designated as Zone A on a flood insurance rate
map.
(b) Rule of construction
Nothing in subsection (a) shall be construed to
alter the terms and conditions of eligibility and
1 See
References in Text note below.
§ 4033
TITLE 42—THE PUBLIC HEALTH AND WELFARE
insurability of coverage for a building under the
standard flood insurance policy under the national flood insurance program.
(Pub. L. 90–448, title XIII, § 1325, as added Pub. L.
112–141, div. F, title II, § 100242, July 6, 2012, 126
Stat. 962.)
§ 4033. Designation of Flood Insurance Advocate
(a) In general
The Administrator shall designate a Flood Insurance Advocate to advocate for the fair treatment of policy holders under the National Flood
Insurance Program and property owners in the
mapping of flood hazards, the identification of
risks from flood, and the implementation of
measures to minimize the risk of flood.
(b) Duties and responsibilities
The duties and responsibilities of the Flood Insurance Advocate designated under subsection
(a) shall be to—
(1) educate property owners and policyholders under the National Flood Insurance
Program on—
(A) individual flood risks;
(B) flood mitigation;
(C) measures to reduce flood insurance
rates through effective mitigation;
(D) the flood insurance rate map review
and amendment process; and
(E) any changes in the flood insurance program as a result of any newly enacted laws
(including this Act);
(2) assist policy holders under the National
Flood Insurance Program and property owners
to understand the procedural requirements related to appealing preliminary flood insurance
rate maps and implementing measures to
mitigate evolving flood risks;
(3) assist in the development of regional capacity to respond to individual constituent
concerns about flood insurance rate map
amendments and revisions;
(4) coordinate outreach and education with
local officials and community leaders in areas
impacted by proposed flood insurance rate
map amendments and revisions; and
(5) aid potential policy holders under the National Flood Insurance Program in obtaining
and verifying accurate and reliable flood insurance rate information when purchasing or
renewing a flood insurance policy.
(Pub. L. 113–89, § 24, Mar. 21, 2014, 128 Stat. 1030.)
Editorial Notes
REFERENCES IN TEXT
This Act, referred to in subsec. (b)(1)(E), is Pub. L.
113–89, Mar. 21, 2014, 128 Stat. 1020, known as the Homeowner Flood Insurance Affordability Act of 2014. For
complete classification of this Act to the Code, see
Short Title of 2014 Amendment note set out under section 4001 of this title and Tables.
CODIFICATION
Section was enacted as part of the Homeowner Flood
Insurance Affordability Act of 2014, and not as part of
the National Flood Insurance Act of 1968 which comprises this chapter.
Page 5800
Statutory Notes and Related Subsidiaries
DEFINITIONS
For definitions of terms used in this section, see section 4005 of this title.
SUBCHAPTER II—ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE
PROGRAM
§ 4041. Implementation of program
Following such consultation with representatives of the insurance industry as may be necessary, the Administrator shall implement the
flood insurance program authorized under subchapter I in accordance with the provisions of
part A of this subchapter and, if a determination
is made by him under section 4071 of this title,
under part B of this subchapter.
(Pub. L. 90–448, title XIII, § 1330, Aug. 1, 1968, 82
Stat. 581; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’.
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
PART A—INDUSTRY PROGRAM WITH FEDERAL
FINANCIAL ASSISTANCE
§ 4051. Industry flood insurance pool; requirements for participation
(a) The Administrator 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 subchapter I; and
(2) for the purpose of assuming, including as
reinsurance of coverage provided by the flood
Page 5801
TITLE 42—THE PUBLIC HEALTH AND WELFARE
insurance program, on such terms and conditions as may be agreed upon, such financial responsibility as will enable such companies and
other insurers, with the Federal financial and
other assistance available under this chapter,
to assume a reasonable proportion of responsibility for the adjustment and payment of
claims for losses under the flood insurance
program.
(b) In order to promote the effective administration of the flood insurance program under
this part, and to assure that the objectives of
this chapter are furthered, the Administrator is
authorized to prescribe appropriate requirements for insurance companies and other insurers participating in such pool including, but not
limited to, minimum requirements for capital or
surplus or assets.
(Pub. L. 90–448, title XIII, § 1331, Aug. 1, 1968, 82
Stat. 582; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, §§ 100232(d)(1), 100238(b)(1),
July 6, 2012, 126 Stat. 954, 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a)(2) and (b), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
AMENDMENTS
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ in introductory provisions.
Subsec. (a)(2). Pub. L. 112–141, § 100232(d)(1), inserted
‘‘, including as reinsurance of coverage provided by the
flood insurance program’’ before ‘‘, on such terms’’.
Subsec. (b). Pub. L. 112–141, § 100238(b)(1), substituted
‘‘Administrator’’ for ‘‘Director’’.
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4052
§ 4052. Agreements with flood insurance pool
(a) Authorization
The Administrator is authorized to enter into
such agreements with the pool formed or otherwise created under this part as he deems necessary to carry out the purposes of this chapter.
(b) Terms and conditions
Such agreements shall specify—
(1) the terms and conditions under which
risk capital will be available for the adjustment and payment of claims,
(2) the terms and conditions under which the
pool (and the companies and other insurers
participating therein) shall participate in premiums received and profits or losses realized
or sustained,
(3) the maximum amount of profit, established by the Administrator and set forth in
the schedules prescribed under section 4018 of
this title, which may be realized by such pool
(and the companies and other insurers participating therein),
(4) the terms and conditions under which operating costs and allowances set forth in the
schedules prescribed under section 4018 of this
title may be paid, and
(5) the terms and conditions under which
premium equalization payments under section
4054 of this title will be made and reinsurance
claims under section 4055 of this title will be
paid.
(c) Additional provisions
In addition, such agreements shall contain
such provisions as the Administrator 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 or reinsurance by the pool, and
(3) any insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations will be permitted to cooperate with the pool as fiscal
agents or otherwise, on other than a risk-sharing basis, to the maximum extent practicable.
(Pub. L. 90–448, title XIII, § 1332, Aug. 1, 1968, 82
Stat. 582; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, §§ 100232(d)(2), 100238(b)(1),
July 6, 2012, 126 Stat. 954, 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
§ 4053
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Page 5802
AMENDMENTS
AMENDMENTS
2012—Subsecs. (a), (b)(3), (c). Pub. L. 112–141,
§ 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Subsec. (c)(2). Pub. L. 112–141, § 100232(d)(2), inserted
‘‘or reinsurance’’ after ‘‘flood insurance coverage’’.
1983—Subsecs. (a), (b)(3), (c). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
1983—Pub. L. 98–181 inserted ‘‘original exclusive’’ before ‘‘jurisdiction’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4053. Adjustment and payment of claims; judicial review; limitations; jurisdiction
The insurance companies and other insurers
which form, associate, or otherwise join together in the pool under this part may adjust
and pay all claims for proved and approved
losses covered by flood insurance in accordance
with the provisions of this chapter and, upon the
disallowance by any such company or other insurer of any such claim, or upon the refusal of
the claimant to accept the amount allowed upon
any such claim, the claimant, within one year
after the date of mailing of notice of disallowance or partial disallowance of the claim, may
institute an action on such claim against such
company or other insurer in the United States
district court for the district in which the insured property or the major part thereof shall
have been situated, and original exclusive jurisdiction is hereby conferred upon such court to
hear and determine such action without regard
to the amount in controversy.
(Pub. L. 90–448, title XIII, § 1333, Aug. 1, 1968, 82
Stat. 583; Pub. L. 98–181, title I [title IV,
§ 451(d)(3)], Nov. 30, 1983, 97 Stat. 1229.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
§ 4054. Premium equalization payments; basis;
aggregate amount; establishment of designated periods
(a) The Administrator, 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 Administrator.
(Pub. L. 90–448, title XIII, § 1334, Aug. 1, 1968, 82
Stat. 583; Pub. L. 93–234, title I, § 111, Dec. 31,
1973, 87 Stat. 981; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’ in subsecs. (a) and (b).
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ in subsecs. (a) and (b).
1973—Subsecs. (b), (c). Pub. L. 93–234 redesignated
subsec. (c) as (b) and struck out former subsec. (b) prescribing formula for sharing losses between Government and industry and permit necessary flexibility in
loss sharing to take into account longer-term loss experience trends and to compensate for lack of precision in
actuarial computations.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treat-
Page 5803
TITLE 42—THE PUBLIC HEALTH AND WELFARE
ment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4055. Reinsurance coverage
(a) Availability for excess losses
(1) In general
The Administrator 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).
(2) Private reinsurance
The Administrator is authorized to secure
reinsurance of coverage provided by the flood
insurance program from the private market at
rates and on terms determined by the Administrator to be reasonable and appropriate, in
an amount sufficient to maintain the ability
of the program to pay claims.
(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 Administrator finds necessary to cover anticipated
losses and other costs of providing such reinsurance.
(c) Excess loss agreement; negotiation
The Administrator 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 Administrator.
(Pub. L. 90–448, title XIII, § 1335, Aug. 1, 1968, 82
Stat. 583; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, §§ 100232(d)(3), 100238(b)(1),
July 6, 2012, 126 Stat. 954, 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (c), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classi-
§ 4056
fication of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
2012—Subsec. (a). Pub. L. 112–141, § 100232(d)(3), designated existing provisions as par. (1), inserted heading,
substituted ‘‘The Administrator’’ for ‘‘The Director’’
and added par. (2).
Subsecs. (b) to (d). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 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 Administrator shall carry out the flood insurance program authorized under subchapter I
during the period ending on the date specified in
section 4026 of this title, in accordance with the
provisions of this part and the other provisions
of this chapter insofar as they relate to this part
but subject to the modifications made by or
under subsection (b).
(b) In carrying out the flood insurance program pursuant to subsection (a), the Administrator—
(1) shall provide insurance coverage without
regard to any estimated risk premium rates
which would otherwise be determined under
section 4014 of this title; and
(2) shall utilize the provisions and procedures contained in or prescribed by this part
(other than section 4054 of this title) and sections 4081 and 4082 of this title to such extent
and in such manner as he may consider necessary or appropriate to carry out the purpose
of this section.
(Pub. L. 90–448, title XIII, § 1336, as added Pub. L.
91–152, title IV, § 408, Dec. 24, 1969, 83 Stat. 396;
amended Pub. L. 92–213, § 2(a), Dec. 22, 1971, 85
Stat. 775; Pub. L. 93–234, title I, § 106, Dec. 31,
1973, 87 Stat. 979; Pub. L. 94–173, § 5, Dec. 23, 1975,
§ 4056
TITLE 42—THE PUBLIC HEALTH AND WELFARE
89 Stat. 1028; Pub. L. 94–375, § 14(b), Aug. 3, 1976,
90 Stat. 1075; Pub. L. 95–128, title VII, § 701(b),
Oct. 12, 1977, 91 Stat. 1144; Pub. L. 95–406, § 6(b),
Sept. 30, 1978, 92 Stat. 880; Pub. L. 95–557, title
III, § 308(b), Oct. 31, 1978, 92 Stat. 2098; Pub. L.
96–153, title VI, § 602(b), Dec. 21, 1979, 93 Stat.
1137; Pub. L. 97–35, title III, § 341(b)(2), Aug. 13,
1981, 95 Stat. 419; Pub. L. 97–289, § 4(b), Oct. 6,
1982, 96 Stat. 1231; Pub. L. 98–35, § 4(b), May 26,
1983, 97 Stat. 198; Pub. L. 98–109, § 5(b), Oct. 1,
1983, 97 Stat. 746; Pub. L. 98–181, title I [title IV,
§ 451(b), (d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
99–120, § 4(a)(2), Oct. 8, 1985, 99 Stat. 503; Pub. L.
99–156, § 4(a)(2), Nov. 15, 1985, 99 Stat. 816; Pub. L.
99–219, § 4(a)(2), Dec. 26, 1985, 99 Stat. 1731; Pub.
L. 99–267, § 4(a)(2), Mar. 27, 1986, 100 Stat. 74; Pub.
L. 99–272, title III, § 3010(a)(2), Apr. 7, 1986, 100
Stat. 106; Pub. L. 99–289, § 1(b), May 2, 1986, 100
Stat. 412; Pub. L. 99–345, § 1, June 24, 1986, 100
Stat. 673; Pub. L. 99–430, Sept. 30, 1986, 100 Stat.
986; Pub. L. 100–122, § 1, Sept. 30, 1987, 101 Stat.
793; Pub. L. 100–154, Nov. 5, 1987, 101 Stat. 890;
Pub. L. 100–170, Nov. 17, 1987, 101 Stat. 914; Pub.
L. 100–179, Dec. 3, 1987, 101 Stat. 1018; Pub. L.
100–200, Dec. 21, 1987, 101 Stat. 1327; Pub. L.
100–242, title V, § 541(b), Feb. 5, 1988, 101 Stat.
1939; Pub. L. 101–137, § 1(b), Nov. 3, 1989, 103 Stat.
824; Pub. L. 101–508, title II, § 2302(b), Nov. 5, 1990,
104 Stat. 1388–23; Pub. L. 103–325, title V, § 571(b),
Sept. 23, 1994, 108 Stat. 2277; Pub. L. 105–46, § 118,
Sept. 30, 1997, 111 Stat. 1157; Pub. L. 105–65, title
III, Oct. 27, 1997, 111 Stat. 1377; Pub. L. 105–276,
title III, title V, § 599D(b), Oct. 21, 1998, 112 Stat.
2502, 2663; Pub. L. 107–73, title III, Nov. 26, 2001,
115 Stat. 689; Pub. L. 108–3, § 2(a)(3), Jan. 13, 2003,
117 Stat. 7; Pub. L. 108–171, § 2(a)(3), Dec. 6, 2003,
117 Stat. 2064; Pub. L. 108–199, div. H, § 136(a)(3),
Jan. 23, 2004, 118 Stat. 442; Pub. L. 108–264, title
I, § 101(c), June 30, 2004, 118 Stat. 714; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’ in subsecs. (a) and (b).
2004—Subsec. (a). Pub. L. 108–264 substituted ‘‘during
the period ending on the date specified in section 4026
of this title, in accordance’’ for identical language.
Pub. L. 108–199 made amendment identical to that
made by Pub. L. 108–171. See 2003 Amendment note
below.
2003—Subsec. (a). Pub. L. 108–171 substituted ‘‘on the
date specified in section 4026 of this title’’ for ‘‘December 31, 2003’’.
Pub. L. 108–3 substituted ‘‘ending December 31, 2003,
in’’ for ‘‘ending December 31, 2002, in’’.
2001—Subsec. (a). Pub. L. 107–73 substituted ‘‘December 31, 2002’’ for ‘‘September 30, 2001’’.
1998—Subsec. (a). Pub. L. 105–276, § 599D(b), which directed the substitution of ‘‘2001’’ for ‘‘1998’’, was executed by substituting ‘‘2001’’ for ‘‘1999’’ to reflect the
probable intent of Congress and the amendment by
Pub. L. 105–276, title III, see below.
Page 5804
Pub. L. 105–276, title III, substituted ‘‘1999’’ for ‘‘1998’’.
1997—Subsec. (a). Pub. L. 105–65 substituted ‘‘September 30, 1998’’ for ‘‘October 23, 1997’’.
Pub. L. 105–46 substituted ‘‘October 23, 1997’’ for ‘‘September 30, 1996’’.
1994—Subsec. (a). Pub. L. 103–325 substituted ‘‘September 30, 1996’’ for ‘‘September 30, 1995’’.
1990—Subsec. (a). Pub. L. 101–508 substituted ‘‘September 30, 1995’’ for ‘‘September 30, 1991’’.
1989—Subsec. (a). Pub. L. 101–137 substituted ‘‘September 30, 1991’’ for ‘‘September 30, 1989’’.
1988—Subsec. (a). Pub. L. 100–242 substituted ‘‘September 30, 1989’’ for ‘‘March 15, 1988’’.
1987—Subsec. (a). Pub. L. 100–200 substituted ‘‘March
15, 1988’’ for ‘‘December 16, 1987’’.
Pub. L. 100–179 substituted ‘‘December 16, 1987’’ for
‘‘December 2, 1987’’.
Pub. L. 100–170 substituted ‘‘December 2, 1987’’ for
‘‘November 15, 1987’’.
Pub. L. 100–154 substituted ‘‘November 15, 1987’’ for
‘‘October 31, 1987’’.
Pub. L. 100–122 substituted ‘‘October 31, 1987’’ for
‘‘September 30, 1987’’.
1986—Subsec. (a). Pub. L. 99–430 substituted ‘‘September 30, 1987’’ for ‘‘September 30, 1986’’.
Pub. L. 99–345 substituted ‘‘September 30, 1986’’ for
‘‘June 6, 1986’’.
Pub. L. 99–289 substituted ‘‘June 6, 1986’’ for ‘‘April 30,
1986’’.
Pub. L. 99–272 directed amendment identical to Pub.
L. 99–219 substituting ‘‘March 17, 1986’’ for ‘‘December
15, 1985’’.
Pub. L. 99–267 substituted ‘‘April 30, 1986’’ for ‘‘March
17, 1986’’.
1985—Subsec. (a). Pub. L. 99–219 substituted ‘‘March
17, 1986’’ for ‘‘December 15, 1985’’.
Pub. L. 99–156 substituted ‘‘December 15, 1985’’ for
‘‘November 14, 1985’’.
Pub. L. 99–120 substituted ‘‘November 14, 1985’’ for
‘‘September 30, 1985’’.
1983—Subsec. (a). Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for ‘‘Secretary’’.
Pub. L. 98–181, § 451(b), substituted ‘‘September 30,
1985’’ for ‘‘November 30, 1983’’.
Pub. L. 98–109 substituted ‘‘November 30, 1983’’ for
‘‘September 30, 1983’’.
Pub. L. 98–35 substituted ‘‘September 30, 1983’’ for
‘‘May 20, 1983’’.
Subsec. (b). Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for ‘‘Secretary’’.
1982—Subsec. (a). Pub. L. 97–289 substituted ‘‘May 20,
1983’’ for ‘‘September 30, 1982’’.
1981—Subsec. (a). Pub. L. 97–35 substituted ‘‘1982’’ for
‘‘1981’’.
1979—Subsec. (a). Pub. L. 96–153 substituted ‘‘1981’’ for
‘‘1980’’.
1978—Subsec. (a). Pub. L. 95–557 substituted ‘‘September 30, 1980’’ for ‘‘October 31, 1978’’.
Pub. L. 95–406 substituted ‘‘October 31, 1978’’ for ‘‘September 30, 1978’’.
1977—Subsec. (a). Pub. L. 95–128 substituted ‘‘1978’’ for
‘‘1977’’.
1976—Subsec. (a). Pub. L. 94–375 substituted ‘‘September 30, 1977’’ for ‘‘December 31, 1976’’.
1975—Subsec. (a). Pub. L. 94–173 substituted ‘‘1976’’ for
‘‘1975’’.
1973—Subsec. (a). Pub. L. 93–234 substituted ‘‘1975’’ for
‘‘1973’’.
1971—Subsec. (a). Pub. L. 92–213 substituted ‘‘1973’’ for
‘‘1971’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108–199 considered to have
taken effect on Dec. 31, 2003, see section 136(b) of div. H
of Pub. L. 108–199, set out as a note under section 4016
of this title.
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendment by Pub. L. 108–171 effective Dec. 31, 2003,
see section 2(b) of Pub. L. 108–171, set out as a note
under section 4016 of this title.
Page 5805
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Amendment by Pub. L. 108–3 effective Dec. 31, 2002,
see section 2(b) of Pub. L. 108–3, set out as a note under
section 4016 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of Title 12, Banks and Banking.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
CONTINUING APPROPRIATIONS FOR FISCAL YEAR 1998
The expiration date of Oct. 23, 1997 (see 1997 Amendment note above) was temporarily extended to Nov. 7,
1997, by Pub. L. 105–64, Oct. 23, 1997, 111 Stat. 1343.
§ 4057. Alternative loss allocation system for indeterminate claims
(a) Definitions
In this section:
(1) Administrator
The term ‘‘Administrator’’ means the Administrator of the Federal Emergency Management Agency.
(2) COASTAL Formula
The term ‘‘COASTAL Formula’’ means the
formula established under subsection (b).
(3) Coastal State
The term ‘‘coastal State’’ has the meaning
given the term ‘‘coastal state’’ in section 1453
of title 16, except that the term shall not
apply with respect to a State or territory that
has an operational wind and flood loss allocation system.
(4) Indeterminate loss
(A) In general
The term ‘‘indeterminate loss’’ means, as
determined by an insurance claims adjuster
certified under the national flood insurance
program and in consultation with an engineer as appropriate, a loss resulting from
physical damage to, or loss of, property located in any coastal State arising from the
combined perils of flood and wind associated
with a named storm.
(B) Requirements
An insurance claims adjuster certified
under the national flood insurance program
shall only determine that a loss is an indeterminate loss if the claims adjuster determines that—
(i) no material remnant of physical
buildings or man-made structures remain
§ 4057
except building foundations for the specific property for which the claim is made;
and
(ii) there is insufficient or no tangible
evidence created, yielded, or otherwise left
behind of the specific property for which
the claim is made as a result of the named
storm.
(5) Named storm
The term ‘‘named storm’’ means any organized weather system with a defined surface
circulation and maximum sustained winds of
not less than 39 miles per hour which the National Hurricane Center of the United States
National Weather Service names as a tropical
storm or a hurricane.
(6) Post-storm assessment
The term ‘‘post-storm assessment’’ means
the post-storm assessment developed under
section 3611(b) of title 33.
(7) State
The term ‘‘State’’ means a State of the
United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any other
territory or possession of the United States.
(8) Secretary
The term ‘‘Secretary’’ means the Secretary
of Homeland Security.
(9) Standard insurance policy
The term ‘‘standard insurance policy’’
means any insurance policy issued under the
national flood insurance program that covers
loss or damage to property resulting from
water peril.
(10) Property
The term ‘‘property’’ means real or personal
property that is insured under a standard insurance policy for loss or damage to structure
or contents.
(11) Under Secretary
The term ‘‘Under Secretary’’ means the
Under Secretary of Commerce for Oceans and
Atmosphere, in the Under Secretary’s capacity as Administrator of the National Oceanic
and Atmospheric Administration.
(b) Establishment of flood loss allocation formula
for indeterminate claims
(1) In general
Not later than 180 days after the date on
which the protocol is established under section 3611(c)(1) of title 33, the Secretary, acting
through the Administrator and in consultation with the Under Secretary, shall publish
for comment in the Federal Register a standard formula to determine and allocate wind
losses and flood losses for claims involving indeterminate losses.
(2) Contents
The standard formula established under
paragraph (1) shall—
(A) incorporate data available from the
Coastal Wind and Water Event Database established under section 3611(f) of title 33;
(B) use relevant data provided on the National Flood Insurance Program Elevation
§ 4057
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Certificate, or other data or information
used to determine a property’s current risk
of flood, as determined by the Administrator, for each indeterminate loss for which
the formula is used;
(C) consider any sufficient and credible
evidence, approved by the Administrator, of
the pre-event condition of a specific property, including the findings of any policyholder or insurance claims adjuster in connection with the indeterminate loss to that
specific property;
(D) include other measures, as the Administrator considers appropriate, required to
determine and allocate by mathematical formula the property damage caused by flood
or storm surge associated with a named
storm; and
(E) subject to paragraph (3), for each indeterminate loss, use the post-storm assessment to allocate water damage (flood or
storm surge) associated with a named storm.
(3) Degree of accuracy required
The standard formula established under
paragraph (1) shall specify that the Administrator may only use the post-storm assessment for purposes of the formula if the Under
Secretary certifies that the post-storm assessment has a degree of accuracy of not less than
90 percent in connection with the specific indeterminate loss for which the assessment and
formula are used.
(c) Authorized use of post-storm assessment and
COASTAL Formula
(1) In general
Subject to paragraph (3), the Administrator
may use the post-storm assessment and the
COASTAL Formula to—
(A) review flood loss payments for indeterminate losses, including as part of the quality assurance reinspection program of the
Federal Emergency Management Agency for
claims under the national flood insurance
program and any other process approved by
the Administrator to review and validate
payments under the national flood insurance
program for indeterminate losses following a
named storm; and
(B) assist the national flood insurance program to—
(i) properly cover qualified flood loss for
claims for indeterminate losses; and
(ii) avoid paying for any loss or damage
to property caused by any peril (including
wind), other than flood or storm surge,
that is not covered under a standard policy
under the national flood insurance program.
(2) Federal disaster declaration
Subject to paragraph (3), in order to expedite
claims and reduce costs to the national flood
insurance program, following any major disaster declared by the President under section
5170 of this title relating to a named storm in
a coastal State, the Administrator may use
the COASTAL Formula to determine and pay
for any flood loss covered under a standard insurance policy under the national flood insurance program, if the loss is an indeterminate
loss.
Page 5806
(3) National Academy of Sciences evaluation
(A) Evaluation required
(i) Evaluation
Upon publication of the COASTAL Formula in the Federal Register as required
by subsection (b)(1), and each time the Administrator modifies the COASTAL Formula, the National Academy of Sciences
shall—
(I) evaluate the expected financial impact on the national flood insurance program of the use of the COASTAL Formula as so established or modified; and
(II) evaluate the validity of the scientific assumptions upon which the formula is based and determine whether the
COASTAL formula 1 can achieve a degree
of accuracy of not less than 90 percent in
allocating flood losses for indeterminate
losses.
(ii) Report
The National Academy of Sciences shall
submit a report containing the results of
each evaluation under clause (i) to the Administrator, the Committee on Banking,
Housing, and Urban Affairs and the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Financial Services and the Committee on Science, Space, and Technology
of the House of Representatives.
(B) Effective date and applicability
(i) Effective date
Paragraphs (1) and (2) of this subsection
shall not take effect unless the report
under subparagraph (A) relating to the establishment of the COASTAL Formula
concludes that the use of the COASTAL
Formula for purposes of paragraph 2 (1) and
(2) would not have an adverse financial impact on the national flood insurance program and that the COASTAL Formula is
based on valid scientific assumptions that
would allow a degree of accuracy of not
less than 90 percent to be achieved in allocating flood losses for indeterminate
losses.
(ii) Effect of modifications
Unless the report under subparagraph
(A) relating to a modification of the
COASTAL Formula concludes that the use
of the COASTAL Formula, as so modified,
for purposes of paragraphs (1) and (2) would
not have an adverse financial impact on
the national flood insurance program and
that the COASTAL Formula is based on
valid scientific assumptions that would
allow a degree of accuracy of not less than
90 percent to be achieved in allocating
flood losses for indeterminate losses the
Administrator may not use the COASTAL
Formula, as so modified, for purposes of
paragraphs (1) and (2).
(C) Funding
Notwithstanding section 4017 of this title,
there shall be available to the Administrator
1 So
2 So
in original. Probably should be capitalized.
in original. Probably should be ‘‘paragraphs’’.
Page 5807
TITLE 42—THE PUBLIC HEALTH AND WELFARE
from the National Flood Insurance Fund, of
amounts not otherwise obligated, not more
than $750,000 to carry out this paragraph.
(d) Disclosure of COASTAL Formula
Not later than 30 days after the date on which
a post-storm assessment is submitted to the
Secretary under section 3611(b)(2)(E) of title 33,
for each indeterminate loss for which the
COASTAL Formula is used pursuant to subsection (c)(2), the Administrator shall disclose
to the policyholder that makes a claim relating
to the indeterminate loss—
(1) that the Administrator used the COASTAL Formula with respect to the indeterminate
loss; and
(2) a summary of the results of the use of the
COASTAL Formula.
(e) Consultation
In carrying out subsections (b) and (c), the
Secretary shall consult with—
(1) the Under Secretary for Oceans and Atmosphere;
(2) the Director of the National Institute of
Standards and Technology;
(3) the Chief of Engineers of the Corps of Engineers;
(4) the Director of the United States Geological Survey;
(5) the Office of the Federal Coordinator for
Meteorology;
(6) State insurance regulators of coastal
States; and
(7) such public, private, and academic sector
entities as the Secretary considers appropriate
for purposes of carrying out such subsections.
(f) Recordkeeping
Each consideration and measure the Administrator determines necessary to carry out subsection (b) may be required, with advanced approval of the Administrator, to be provided for
on the National Flood Insurance Program Elevation Certificate, or maintained otherwise on
record if approved by the Administrator, for any
property that qualifies for the COASTAL Formula under subsection (c).
(g) Civil penalty
(1) In general
If an insurance claims adjuster knowingly
and willfully makes a false or inaccurate determination relating to an indeterminate loss,
the Administrator may, after notice and opportunity for hearing, impose on the insurance
claims adjuster a civil penalty of not more
than $1,000.
(2) Deposit
Notwithstanding section 3302 of title 31 or
any other law relating to the crediting of
money, the Administrator shall deposit in the
National Flood Insurance Fund any amounts
received under this subsection, which shall remain available until expended and be available
to the Administrator for purposes authorized
for the National Flood Insurance Fund without further appropriation.
(h) Rule of construction
Nothing in this subsection 3 shall be construed
to require the Administrator to make any pay3 So
in original. Probably should be ‘‘this section’’.
§ 4057
ment under the national flood insurance program, or an insurance company that issues a
standard flood insurance policy under the national flood insurance program to make any
payment, for an indeterminate loss based upon
post-storm assessment, the COASTAL Formula,
or any other loss allocation or post-storm assessment arising under the laws or ordinances of
any State.
(i) Applicability
Subsection (c) shall apply with respect to an
indeterminate loss associated with a named
storm that occurs 60 days after publication of
the COASTAL Formula in the Federal Register
as required by subsection (b)(1).
(j) Rule of Construction
Nothing in this subsection 3 shall be construed
to negate, set aside, or void any policy limit, including any loss limitation, set forth in a standard insurance policy.
(k) Rule of construction
Nothing in this section shall be construed to
create a cause of action under this chapter.
(Pub. L. 90–448, title XIII, § 1337, as added Pub. L.
112–141, div. F, title II, § 100253, July 6, 2012, 126
Stat. 974; amended Pub. L. 116–271, title II,
§ 201(b), Dec. 31, 2020, 134 Stat. 3346.)
Editorial Notes
AMENDMENTS
2020—Subsec. (a)(3). Pub. L. 116–271, § 201(b)(1)(A), inserted ‘‘, except that the term shall not apply with respect to a State or territory that has an operational
wind and flood loss allocation system’’ before period at
end.
Subsec. (a)(5). Pub. L. 116–271, § 201(b)(1)(B), inserted
‘‘sustained’’ after ‘‘maximum’’.
Subsec. (b)(1). Pub. L. 116–271, § 201(b)(2)(A), substituted ‘‘publish for comment in the Federal Register’’
for ‘‘establish by rule’’.
Subsec. (b)(2)(B). Pub. L. 116–271, § 201(b)(2)(B), inserted ‘‘, or other data or information used to determine a property’s current risk of flood, as determined
by the Administrator,’’ after ‘‘Elevation Certificate’’.
Subsec. (c)(3)(A)(i). Pub. L. 116–271, § 201(b)(3), substituted ‘‘publication of the COASTAL Formula in the
Federal Register as required by subsection (b)(1)’’ for
‘‘the issuance of the rule establishing the COASTAL
Formula’’.
Subsec. (d). Pub. L. 116–271, § 201(b)(4), substituted
‘‘section 3611(b)(2)(E)’’ for ‘‘section 3611(b)(2)(C)’’.
Subsec. (h). Pub. L. 116–271, § 201(b)(5), inserted ‘‘that
issues a standard flood insurance policy under the national flood insurance program’’ after ‘‘company’’ and
substituted ‘‘, the COASTAL Formula, or any other
loss allocation or post-storm assessment arising under
the laws or ordinances of any State’’ for ‘‘or the
COASTAL Formula’’.
Subsec. (i). Pub. L. 116–271, § 201(b)(6), substituted ‘‘60
days after publication of the COASTAL Formula in the
Federal Register as required by subsection (b)(1)’’ for
‘‘after the date on which the Administrator issues the
rule establishing the COASTAL Formula under subsection (b)’’.
Subsec. (k). Pub. L. 116–271, § 201(b)(7), added subsec.
(k).
§ 4071
TITLE 42—THE PUBLIC HEALTH AND WELFARE
PART B—GOVERNMENT PROGRAM WITH INDUSTRY
ASSISTANCE
§ 4071. Federal operation of program; determination by Administrator; fiscal agents; report to
Congress
(a) If at any time, after consultation with representatives of the insurance industry, the Administrator determines that operation of the
flood insurance program as provided under part
A cannot be carried out, or that such operation,
in itself, would be assisted materially by the
Federal Government’s assumption, in whole or
in part, of the operational responsibility for
flood insurance under this chapter (on a temporary or other basis) he shall promptly undertake any necessary arrangements to carry out
the program of flood insurance authorized under
subchapter I through the facilities of the Federal Government, utilizing, for purposes of providing flood insurance coverage, either—
(1) insurance companies and other insurers,
insurance agents and brokers, and insurance
adjustment organizations, as fiscal agents of
the United States,
(2) such other officers and employees of any
executive agency (as defined in section 105 of
title 5) as the Administrator and the head of
any such agency may from time to time, agree
upon, on a reimbursement or other basis, or
(3) both the alternatives specified in paragraphs (1) and (2).
(b) Upon making the determination referred to
in subsection (a), the Administrator 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 Administrator deems advisable.
The Administrator shall not implement the program of flood insurance authorized under subchapter I through the facilities of the Federal
Government until 9 months after the date of
submission of the report under this subsection
unless it would be impossible to continue to effectively carry out the National Flood Insurance
Program operations during this time.
(Pub. L. 90–448, title XIII, § 1340, Aug. 1, 1968, 82
Stat. 584; Pub. L. 98–181, title I [title IV,
§ 451(d)(1), (4)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
101–137, § 3, Nov. 3, 1989, 103 Stat. 824; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classi-
Page 5808
fication of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’ wherever appearing in text.
1989—Subsec. (b). Pub. L. 101–137 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ‘‘Upon making the determination referred to in
subsection (a) of this section, and at least thirty days
prior to implementing the program of flood insurance
authorized under subchapter I of this chapter through
the facilities of the Federal Government, the Director
shall make a report to the Congress and such report
shall—
‘‘(1) state the reasons for such determination,
‘‘(2) be supported by pertinent findings,
‘‘(3) indicate the extent to which it is anticipated
that the insurance industry will be utilized in providing flood insurance coverage under the program,
and
‘‘(4) contain such recommendations as the Director
deems advisable.’’
1983—Subsec. (a). Pub. L. 98–181, § 451(d)(1), in provisions preceding par. (1), substituted ‘‘Director’’ for
‘‘Secretary’’.
Subsec. (a)(2). Pub. L. 98–181, § 451(d)(4), struck out
‘‘officers and employees of the Department of Housing
and Urban Development, and’’ before ‘‘such other officers’’.
Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for
‘‘Secretary’’.
Subsec. (b). Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 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 Administrator 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 Administrator 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 Administrator, may institute
an action against the Administrator on such
Page 5809
TITLE 42—THE PUBLIC HEALTH AND WELFARE
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.
(Pub. L. 90–448, title XIII, § 1341, Aug. 1, 1968, 82
Stat. 584; Pub. L. 98–181, title I [title IV,
§ 451(d)(1), (5)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’ wherever appearing.
1983—Pub. L. 98–181, § 451(d)(5), inserted ‘‘original exclusive’’ before ‘‘jurisdiction’’.
Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for
‘‘Secretary’’ wherever appearing.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
PART C—GENERAL PROVISIONS
§ 4081. Services by insurance industry
(a) Contracting for services and facilities
In administering the flood insurance program
under this subchapter, the Administrator 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) Certain laws inapplicable to contracting
Any such contracts, agreements, or other arrangements may be entered into without regard
§ 4081
to the provisions of section 6101 of title 41 or any
other provision of law requiring competitive bidding and without regard to the provisions of the
Federal Advisory Committee Act (5 U.S.C. App.).
(c) Hold harmless
The Administrator of the Federal Emergency
Management Agency shall hold any agent or
broker selling or undertaking to sell flood insurance under this chapter harmless from any judgment for damages against such agent or broker
as a result of any court action by a policyholder
or applicant arising out of an error or omission
on the part of the Federal Emergency Management Agency, and shall provide any such agent
or broker with indemnification, including court
costs and reasonable attorney fees, arising out
of and caused by an error or omission on the
part of the Federal Emergency Management
Agency and its contractors. The Administrator
of the Federal Emergency Management Agency
may not hold harmless or indemnify an agent or
broker for his or her error or omission.
(d) FEMA authority on transfer of policies
Notwithstanding any other provision of this
chapter, the Administrator may, at the discretion of the Administrator, refuse to accept the
transfer of the administration of policies for
coverage under the flood insurance program
under this chapter that are written and administered by any insurance company or other insurer, or any insurance agent or broker.
(e) Risk transfer
The Administrator may secure reinsurance of
coverage provided by the flood insurance program from the private reinsurance and capital
markets at rates and on terms determined by
the Administrator to be reasonable and appropriate, in an amount sufficient to maintain the
ability of the program to pay claims.
(Pub. L. 90–448, title XIII, § 1345, Aug. 1, 1968, 82
Stat. 585; Pub. L. 97–35, title III, § 341(e), Aug. 13,
1981, 95 Stat. 419; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
103–325, title V, § 574, Sept. 23, 1994, 108 Stat. 2278;
Pub. L. 112–141, div. F, title II, §§ 100238(b)(1),
100245, July 6, 2012, 126 Stat. 958, 966; Pub. L.
113–89, § 10, Mar. 21, 2014, 128 Stat. 1025.)
Editorial Notes
REFERENCES IN TEXT
The Federal Advisory Committee Act, referred to in
subsec. (b), is Pub. L. 92–463, Oct. 6, 1972, 86 Stat. 770, as
amended, which is set out in the Appendix to Title 5,
Government Organization and Employees.
This chapter, referred to in subsecs. (c) and (d), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
CODIFICATION
In subsec. (b), ‘‘section 6101 of title 41’’ substituted
for ‘‘section 3709 of the Revised Statutes (41 U.S.C. 5)’’
on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124
Stat. 3854, which Act enacted Title 41, Public Contracts.
AMENDMENTS
2014—Subsec. (e). Pub. L. 113–89 added subsec. (e).
§ 4081
TITLE 42—THE PUBLIC HEALTH AND WELFARE
2012—Subsecs. (a), (c). Pub. L. 112–141, § 100238(b)(1),
substituted ‘‘Administrator’’ for ‘‘Director’’ wherever
appearing.
Subsec. (d). Pub. L. 112–141, § 100245, added subsec. (d).
1994—Subsec. (b). Pub. L. 103–325 inserted before period at end ‘‘and without regard to the provisions of the
Federal Advisory Committee Act (5 U.S.C. App.)’’.
1983—Subsec. (a). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
1981—Subsec. (c). Pub. L. 97–35 added subsec. (c).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of Title 12, Banks and Banking.
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
OVERSIGHT AND EXPENSE REIMBURSEMENTS OF
INSURANCE COMPANIES
Pub. L. 112–141, div. F, title II, § 100224, July 6, 2012,
126 Stat. 936, provided that:
‘‘(a) SUBMISSION OF BIENNIAL REPORTS.—
‘‘(1) TO THE ADMINISTRATOR.—Not later than 20 days
after the date of enactment of this Act [July 6, 2012],
each property and casualty insurance company participating in the Write Your Own program shall submit to the Administrator any biennial report required by the Federal Emergency Management Agency to be prepared in the prior 5 years by such company.
‘‘(2) TO GAO.—Not later than 10 days after the submission of the biennial reports under paragraph (1),
the Administrator shall submit all such reports to
the Comptroller General of the United States.
‘‘(3) NOTICE TO CONGRESS OF FAILURE TO COMPLY.—
The Administrator shall notify and report to the
Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the House of Representatives on any property
and casualty insurance company participating in the
Write Your Own program that failed to submit its biennial reports as required under paragraph (1).
‘‘(4) FAILURE TO COMPLY.—A property and casualty
insurance company participating in the Write Your
Own program which fails to comply with the reporting requirement under this subsection or the requirement under section 62.23(j)(1) of title 44, Code of Federal Regulations (relating to biennial audit of the
flood insurance financial statements) shall be subject
to a civil penalty in an amount of not more than
$1,000 per day for each day that the company remains
in noncompliance with either such requirement.
Page 5810
‘‘(b) METHODOLOGY TO DETERMINE REIMBURSED
PENSES.—Not later than 180 days after the date of
EXenactment of this Act [July 6, 2012], the Administrator
shall develop a methodology for determining the appropriate amounts that property and casualty insurance
companies participating in the Write Your Own program should be reimbursed for selling, writing, and
servicing flood insurance policies and adjusting flood
insurance claims on behalf of the National Flood Insurance Program. The methodology shall be developed
using actual expense data for the flood insurance line
and can be derived from—
‘‘(1) flood insurance expense data produced by the
property and casualty insurance companies;
‘‘(2) flood insurance expense data collected by the
National Association of Insurance Commissioners; or
‘‘(3) a combination of the methodologies described
in paragraphs (1) and (2).
‘‘(c) SUBMISSION OF EXPENSE REPORTS.—To develop
the methodology established under subsection (b), the
Administrator may require each property and casualty
insurance company participating in the Write Your
Own program to submit a report to the Administrator,
in a format determined by the Administrator and within 60 days of the request, that details the expense levels
of each such company for selling, writing, and servicing
standard flood insurance policies and adjusting and
servicing claims.
‘‘(d) FEMA RULEMAKING ON REIMBURSEMENT OF EXPENSES UNDER THE WRITE YOUR OWN PROGRAM.—Not
later than 12 months after the date of enactment of
this Act [July 6, 2012], the Administrator shall issue a
rule to formulate revised expense reimbursements to
property and casualty insurance companies participating in the Write Your Own program for their expenses (including their operating and administrative
expenses for adjustment of claims) in selling, writing,
and servicing standard flood insurance policies, including how such companies shall be reimbursed in both
catastrophic and noncatastrophic years. Such reimbursements shall be structured to ensure reimbursements track the actual expenses, including standard
business costs and operating expenses, of such companies as closely as practicably possible.
‘‘(e) REPORT OF THE ADMINISTRATOR.—Not later than
60 days after the effective date of the final rule issued
pursuant to subsection (d), the Administrator shall
submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report containing—
‘‘(1) the specific rationale and purposes of such rule;
‘‘(2) the reasons for the adoption of the policies contained in such rule; and
‘‘(3) the degree to which such rule accurately represents the true operating costs and expenses of property and casualty insurance companies participating
in the Write Your Own program.
‘‘(f) GAO STUDY AND REPORT ON EXPENSES OF WRITE
YOUR OWN PROGRAM.—
‘‘(1) STUDY.—Not later than 180 days after the effective date of the final rule issued pursuant to subsection (d), the Comptroller General of the United
States shall—
‘‘(A) conduct a study on the efficacy, adequacy,
and sufficiency of the final rules issued pursuant to
subsection (d); and
‘‘(B) report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the findings of the study conducted
under subparagraph (A).
‘‘(2) GAO AUTHORITY.—In conducting the study and
report required under paragraph (1), the Comptroller
General—
‘‘(A) may use any previous findings, studies, or
reports that the Comptroller General previously
completed on the Write Your Own program;
‘‘(B) shall determine if—
‘‘(i) the final rule issued pursuant to subsection
(d) allows the Federal Emergency Management
Page 5811
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Agency to access adequate information regarding
the actual expenses of property and casualty insurance companies participating in the Write
Your Own program; and
‘‘(ii) the actual reimbursements paid out under
the final rule issued pursuant to subsection (d)
accurately reflect the expenses reported by property and casualty insurance companies participating in the Write Your Own program, including
the standard business costs and operating expenses of such companies; and
‘‘(C) shall analyze the effect of the final rule
issued pursuant to subsection (d) on the level of
participation of property and casualty insurers in
the Write Your Own program.’’
[For definitions of terms used in section 100224 of
Pub. L. 112–141, set out above, see section 4004 of this
title.]
§ 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 Administrator 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 reinsurance of insurance
coverage provided by the program or 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 Administrator, 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.
(4) Placing reinsurance coverage on insurance provided by such program.
(5) 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 Administrator finds necessary or
appropriate for carrying out responsibilities
under subsection (a), and may provide for payment of any costs which the Administrator determines are incidental to carrying out such responsibilities which are covered by the contract.
(c) Competitive bidding
Any contract entered into under subsection (a)
may be entered into without regard to section
6101 of title 41 or any other provision of law requiring competitive bidding.
(d) Findings of Administrator
No contract may be entered into under this
section unless the Administrator finds that the
§ 4082
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 Administrator 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 Administrator may terminate any such contract at any time (after reasonable notice to the pool, company, or organization involved) if he finds that the pool, company, or organization has failed substantially to
carry out the contract, or is carrying out the
contract in a manner inconsistent with the efficient and effective administration of the flood
insurance program authorized under this chapter.
(Pub. L. 90–448, title XIII, § 1346, Aug. 1, 1968, 82
Stat. 585; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, §§ 100232(d)(4), 100238(b)(1),
July 6, 2012, 126 Stat. 954, 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a)(5) and (f), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
CODIFICATION
In subsec. (c), ‘‘section 6101 of title 41’’ substituted for
‘‘section 3709 of the Revised Statute (41 U.S.C. 5)’’ on
authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat.
3854, which Act enacted Title 41, Public Contracts.
AMENDMENTS
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ in introductory provisions.
§ 4083
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Pub. L. 112–141, § 100232(d)(4)(A), inserted ‘‘securing reinsurance of insurance coverage provided by the program or for the purpose of’’ after ‘‘for the purpose of’’
in introductory provisions.
Subsec. (a)(1). Pub. L. 112–141, § 100232(d)(4)(B), substituted ‘‘Estimating’’ for ‘‘estimating’’ and period for
semicolon at end.
Subsec. (a)(2). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Pub. L. 112–141, § 100232(d)(4)(C), substituted ‘‘Receiving’’ for ‘‘receiving’’ and period for semicolon at end.
Subsec. (a)(3). Pub. L. 112–141, § 100232(d)(4)(D)(ii),
which directed substitution of period for ‘‘ ‘; and’ ’’ was
executed by making the substitution for ‘‘; and’’ to reflect the probable intent of Congress.
Pub. L. 112–141, § 100232(d)(4)(D)(i), substituted ‘‘Making’’ for ‘‘making’’.
Subsec. (a)(4). Pub. L. 112–141, § 100232(d)(4)(G), added
par. (4). Former par. (4) redesignated (5).
Subsec. (a)(5). Pub. L. 112–141, § 100232(d)(4)(E), (F), redesignated par. (4) as (5) and substituted ‘‘Otherwise’’
for ‘‘otherwise’’.
Subsecs. (b), (d), (e)(1), (f). Pub. L. 112–141,
§ 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ wherever appearing.
1983—Subsecs. (a), (b), (d), (e)(1), (f). Pub. L. 98–181
substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4083. Settlement of claims; arbitration
(a) The Administrator is authorized to make
final settlement of any claims or demands which
may arise as a result of any financial transactions which he is authorized to carry out
under this subchapter, and may, to assist him in
making any such settlement, refer any disputes
relating to such claims or demands to arbitration, with the consent of the parties concerned.
(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 Administrator.
(Pub. L. 90–448, title XIII, § 1347, Aug. 1, 1968, 82
Stat. 586; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Page 5812
Editorial Notes
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’ in subsecs. (a) and (b).
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ in subsecs. (a) and (b).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4084. Records and audits
(a) The flood insurance pool formed or otherwise created under part A of this subchapter,
and any insurance company or other private organization executing any contract, agreement,
or other appropriate arrangement with the Administrator under part B of this subchapter or
this part, shall keep such records as the Administrator 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 Administrator and the Comptroller
General of the United States, or any of their
duly authorized representatives, shall have access for the purpose of audit and examination to
any books, documents, papers, and records of
the pool and any such insurance company or
other private organization that are pertinent to
the costs of the program undertaken or the services being rendered.
(Pub. L. 90–448, title XIII, § 1348, Aug. 1, 1968, 82
Stat. 586; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’ wherever appearing.
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
Page 5813
TITLE 42—THE PUBLIC HEALTH AND WELFARE
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
SUBCHAPTER
III—COORDINATION
OF
FLOOD INSURANCE WITH LAND-MANAGEMENT
PROGRAMS
IN
FLOOD-PRONE
AREAS
§ 4101. Identification of flood-prone areas
(a) Publication of information; establishment of
flood-risk zones; estimates of flood-caused
loss
The Administrator 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 Administrator: grants, technical
assistance, transactions, and payments
The Administrator is directed to accelerate
the identification of risk zones within floodprone and mudslide-prone areas, as provided by
subsection (a)(2) of this section, in order to
make known the degree of hazard within each
such zone at the earliest possible date. To accomplish this objective, the Administrator is
authorized, without regard to subsections (a)
and (b) of section 3324 of title 31 and section 6101
of title 41, to make grants, provide technical assistance, and enter into contracts, cooperative
agreements, or other transactions, on such
terms as he may deem appropriate, or consent
to modifications thereof, and to make advance
or progress payments in connection therewith.
§ 4101
(c) Priority in allocation of manpower and other
available resources for identification and
mapping of flood hazard areas and flood-risk
zones
The Secretary of Defense (through the Army
Corps of Engineers), the Secretary of the Interior (through the United States Geological Survey), the Secretary of Agriculture (through the
Soil Conservation Service), the Secretary of
Commerce (through the National Oceanic and
Atmospheric Administration), the head of the
Tennessee Valley Authority, and the heads of all
other Federal agencies engaged in the identification or delineation of flood-risk zones within
the several States shall, in consultation with
the Administrator, 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 Administrator to meet the deadline established by this
section.
(d) Plan for bringing communities with floodrisk zones into full program status
The Administrator shall, not later than September 30, 1984, submit to the Congress a plan
for bringing all communities containing floodrisk 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 Administrator determines necessary, the Administrator 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 Administrator shall revise and update any
floodplain areas and flood-risk zones—
(1) upon the determination of the Administrator, according to the assessment under subsection (e), 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 Administrator.
(g) Availability of flood maps
To promote compliance with the requirements
of this chapter, the Administrator 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.
§ 4101
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(h) Notification of flood map changes
The Administrator 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 Administrator shall publish separately in their entirety within a compendium, all changes and revisions to flood insurance map panels and all letters of map
amendment and letters of map revision for
which notice was published in the Federal Register or otherwise provided during the preceding
6 months. The Administrator 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 Administrator shall share information, to the extent appropriate, with the Under Secretary of Commerce for Oceans and Atmosphere and representatives from State coastal zone management programs.
(Pub. L. 90–448, title XIII, § 1360, Aug. 1, 1968, 82
Stat. 587; Pub. L. 93–234, title II, § 204, Dec. 31,
1973, 87 Stat. 983; Pub. L. 98–181, title I [title IV,
§ 451(d)(1), (6), (7)], Nov. 30, 1983, 97 Stat. 1229;
Pub. L. 98–479, title II, § 203(j)(2), Oct. 17, 1984, 98
Stat. 2231; Pub. L. 99–120, § 4(a)(3), Oct. 8, 1985, 99
Stat. 503; Pub. L. 99–156, § 4(a)(3), Nov. 15, 1985, 99
Stat. 816; Pub. L. 99–219, § 4(a)(3), Dec. 26, 1985, 99
Stat. 1731; Pub. L. 99–267, § 4(a)(3), Mar. 27, 1986,
100 Stat. 74; Pub. L. 99–272, title III, § 3010(a)(3),
Apr. 7, 1986, 100 Stat. 106; Pub. L. 99–289, § 1(b),
May 2, 1986, 100 Stat. 412; Pub. L. 99–345, § 1, June
24, 1986, 100 Stat. 673; Pub. L. 99–430, Sept. 30,
1986, 100 Stat. 986; Pub. L. 100–122, § 1, Sept. 30,
1987, 101 Stat. 793; Pub. L. 100–154, Nov. 5, 1987,
101 Stat. 890; Pub. L. 100–170, Nov. 17, 1987, 101
Stat. 914; Pub. L. 100–179, Dec. 3, 1987, 101 Stat.
1018; Pub. L. 100–200, Dec. 21, 1987, 101 Stat. 1327;
Pub. L. 100–242, title V, § 541(c), Feb. 5, 1988, 101
Stat. 1939; Pub. L. 101–137, § 2, Nov. 3, 1989, 103
Stat. 824; Pub. L. 103–325, title V, § 575, Sept. 23,
1994, 108 Stat. 2278; Pub. L. 112–141, div. F, title
II, §§ 100219, 100238(b)(1), July 6, 2012, 126 Stat. 932,
958.)
Page 5814
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (g), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
CODIFICATION
In subsec. (b), ‘‘section 6101 of title 41’’ substituted
for ‘‘section 3709 of the Revised Statutes (41 U.S.C. 5)’’
on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124
Stat. 3854, which Act enacted Title 41, Public Contracts.
AMENDMENTS
2012—Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ wherever appearing.
Subsec. (f)(2). Pub. L. 112–141, § 100219, struck out
‘‘, but which may not exceed 50 percent of the cost of
carrying out the requested revision or update’’ before
period at end.
1994—Subsecs. (e) to (j). Pub. L. 103–325 added subsecs.
(e) to (j).
1989—Subsec. (a)(2). Pub. L. 101–137 added par. (2) and
struck out former par. (2) which read as follows: ‘‘establish flood-risk zones in all such areas, and make estimates with respect to the rates of probable floodcaused loss for the various flood-risk zones for each of
these areas, by September 30, 1989.’’
1988—Subsec. (a)(2). Pub. L. 100–242 substituted ‘‘September 30, 1989’’ for ‘‘March 15, 1988’’.
1987—Subsec. (a)(2). Pub. L. 100–200 substituted
‘‘March 15, 1988’’ for ‘‘December 16, 1987’’.
Pub. L. 100–179 substituted ‘‘December 16, 1987’’ for
‘‘December 2, 1987’’.
Pub. L. 100–170 substituted ‘‘December 2, 1987’’ for
‘‘November 15, 1987’’.
Pub. L. 100–154 substituted ‘‘November 15, 1987’’ for
‘‘October 31, 1987’’.
Pub. L. 100–122 substituted ‘‘October 31, 1987’’ for
‘‘September 30, 1987’’.
1986—Subsec. (a)(2). Pub. L. 99–430 substituted ‘‘September 30, 1987’’ for ‘‘September 30, 1986’’.
Pub. L. 99–345 substituted ‘‘September 30, 1986’’ for
‘‘June 6, 1986’’.
Pub. L. 99–289 substituted ‘‘June 6, 1986’’ for ‘‘April 30,
1986’’.
Pub. L. 99–272 directed amendment identical to Pub.
L. 99–219 substituting ‘‘March 17, 1986’’ for ‘‘December
15, 1985’’.
Pub. L. 99–267 substituted ‘‘April 30, 1986’’ for ‘‘March
17, 1986’’.
1985—Subsec. (a)(2). Pub. L. 99–219 substituted ‘‘March
17, 1986’’ for ‘‘December 15, 1985’’.
Pub. L. 99–156 substituted ‘‘December 15, 1985’’ for
‘‘November 14, 1985’’.
Pub. L. 99–120 substituted ‘‘November 14, 1985’’ for
‘‘September 30, 1985’’.
1984—Subsec. (b). Pub. L. 98–479 substituted reference
to subsections (a) and (b) of section 3324 of title 31 for
reference to section 3648 of the Revised Statutes, as
amended (31 U.S.C. 529).
1983—Subsec. (a). Pub. L. 98–181, § 451(d)(1), in provisions preceding par. (1) substituted ‘‘Director’’ for
‘‘Secretary’’.
Subsec. (a)(2). Pub. L. 98–181, § 451(d)(6), substituted
‘‘by September 30, 1985’’ for ‘‘within fifteen years following such date’’.
Subsecs. (b), (c). Pub. L. 98–181, § 451(d)(1), substituted
‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
Subsec. (d). Pub. L. 98–181, § 451(d)(7), added subsec.
(d).
1973—Pub. L. 93–234 designated existing provisions as
subsec. (a) and added subsecs. (b) and (c).
Page 5815
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
FLOOD PROTECTION STRUCTURE ACCREDITATION TASK
FORCE
Pub. L. 112–141, div. F, title II, § 100226, July 6, 2012,
126 Stat. 942, provided that:
‘‘(a) DEFINITIONS.—In this section—
‘‘(1) the term ‘flood protection structure accreditation requirements’ means the requirements established under section 65.10 of title 44, Code of Federal
Regulations, for levee systems to be recognized on
maps created for purposes of the National Flood Insurance Program;
‘‘(2) the term ‘National Committee on Levee Safety’ means the Committee on Levee Safety established
under section 9003 of the National Levee Safety Act
of 2007 (33 U.S.C. 3302); and
‘‘(3) the term ‘task force’ means the Flood Protection Structure Accreditation Task Force established
under subsection (b).
‘‘(b) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Administrator and the Secretary of the Army, acting through the Chief of Engineers, in cooperation with the National Committee
on Levee Safety, shall jointly establish a Flood Protection Structure Accreditation Task Force.
‘‘(2) DUTIES.—
‘‘(A) DEVELOPING PROCESS.—The task force shall
develop a process to better align the information
and data collected by or for the Corps of Engineers
under the Inspection of Completed Works Program
with the flood protection structure accreditation
requirements so that—
‘‘(i) information and data collected for either
purpose can be used interchangeably; and
‘‘(ii) information and data collected by or for
the Corps of Engineers under the Inspection of
Completed Works Program is sufficient to satisfy
the flood protection structure accreditation requirements.
‘‘(B) GATHERING RECOMMENDATIONS.—The task
force shall gather, and consider in the process developed under subparagraph (A), recommendations
from interested persons in each region relating to
the information, data, and accreditation requirements described in subparagraph (A).
‘‘(3) CONSIDERATIONS.—In developing the process
under paragraph (2), the task force shall consider
changes to—
‘‘(A) the information and data collected by or for
the Corps of Engineers under the Inspection of
Completed Works Program; and
‘‘(B) the flood protection structure accreditation
requirements.
§ 4101a
‘‘(4) RULE OF CONSTRUCTION.—Nothing in this section shall be construed to require a reduction in the
level of public safety and flood control provided by
accredited levees, as determined by the Administrator for purposes of this section.
‘‘(c) IMPLEMENTATION.—The Administrator and the
Secretary of the Army, acting through the Chief of Engineers, shall implement the process developed by the
task force under subsection (b) not later than 1 year
after the date of enactment of this Act [July 6, 2012]
and shall complete the process under subsection (b) not
later than 2 years after the date of enactment of this
Act.
‘‘(d) REPORTS.—The Administrator and the Secretary
of the Army, acting through the Chief of Engineers, in
cooperation with the National Committee on Levee
Safety, shall jointly submit to the Committee on Banking, Housing, and Urban Affairs and the Committee on
Environment and Public Works of the Senate and the
Committee on Financial Services, the Committee on
Transportation and Infrastructure, and the Committee
on Natural Resources of the House of Representatives
reports concerning the activities of the task force and
the implementation of the process developed by the
task force under subsection (b), including—
‘‘(1) an interim report, not later than 180 days after
the date of enactment of this Act [July 6, 2012]; and
‘‘(2) a final report, not later than 1 year after the
date of enactment of this Act.
‘‘(e) TERMINATION.—The task force shall terminate on
the date of submission of the report under subsection
(d)(2).’’
[For definitions of terms used in section 100226 of
Pub. L. 112–141, set out above, see section 4004 of this
title.]
GEOSPATIAL DIGITAL FLOOD HAZARD DATA
Pub. L. 108–264, title I, § 107, June 30, 2004, 118 Stat.
724, provided that: ‘‘For the purposes of flood insurance
and floodplain management activities conducted pursuant to the National Flood Insurance Program under the
National Flood Insurance Act of 1968 (42 U.S.C. 4001 et
seq.), geospatial digital flood hazard data distributed
by the Federal Emergency Management Agency, or its
designee, or the printed products derived from that
data, are interchangeable and legally equivalent for the
determination of the location of 1 in 100 year and 1 in
500 year flood planes [sic], provided that all other
geospatial data shown on the printed product meets or
exceeds any accuracy standard promulgated by the
Federal Emergency Management Agency.’’
REITERATION OF FEMA RESPONSIBILITY TO MAP
MUDSLIDES
Pub. L. 108–264, title I, § 109, June 30, 2004, 118 Stat.
725, as amended by Pub. L. 109–295, title VI, § 612(c), Oct.
4, 2006, 120 Stat. 1410, provided that: ‘‘As directed in section 1360(b) of the National Flood Insurance Act of 1968
(42 U.S.C. 4101(b)), the Administrator of the Federal
Emergency Management Agency is again directed to
accelerate the identification of risk zones within floodprone and mudslide-prone areas, as provided by subsection (a)(2) of such section 1360, in order to make
known the degree of hazard within each such zone at
the earliest possible date.’’
TECHNICAL MAPPING ADVISORY COUNCIL
Pub. L. 103–325, title V, § 576, Sept. 23, 1994, 108 Stat.
2280, established the Technical Mapping Advisory Council to help improve flood insurance rate maps and provided for its termination 5 years after the appointment
of all its members.
§ 4101a. Technical Mapping Advisory Council
(a) Establishment
There is established a council to be known as
the Technical Mapping Advisory Council (in this
section referred to as the ‘‘Council’’).
§ 4101a
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(b) Membership
(1) In general
The Council shall consist of—
(A) the Administrator (or the designee
thereof);
(B) the Secretary of the Interior (or the
designee thereof);
(C) the Secretary of Agriculture (or the
designee thereof);
(D) the Under Secretary of Commerce for
Oceans and Atmosphere (or the designee
thereof); and
(E) 16 additional members appointed by
the Administrator or the designee of the Administrator, who shall be—
(i) a member of a recognized professional
surveying association or organization;
(ii) a member of a recognized professional mapping association or organization;
(iii) a member of a recognized professional engineering association or organization;
(iv) a member of a recognized professional association or organization representing flood hazard determination
firms;
(v) a representative of the United States
Geological Survey;
(vi) a representative of a recognized professional association or organization representing State geographic information;
(vii) a representative of State national
flood insurance coordination offices;
(viii) a representative of the Corps of Engineers;
(ix) a member of a recognized regional
flood and storm water management organization;
(x) 2 representatives of different State
government agencies that have entered
into cooperating technical partnerships
with the Administrator and have demonstrated the capability to produce flood
insurance rate maps;
(xi) 2 representatives of different local
government agencies that have entered
into cooperating technical partnerships
with the Administrator and have demonstrated the capability to produce flood
insurance maps;
(xii) a member of a recognized floodplain
management association or organization;
(xiii) a member of a recognized risk management association or organization; and
(xiv) a State mitigation officer.
(2) Qualifications
Members of the Council shall be appointed
based on their demonstrated knowledge and
competence regarding surveying, cartography,
remote sensing, geographic information systems, or the technical aspects of preparing and
using flood insurance rate maps. In appointing
members under paragraph (1)(E), the Administrator shall, to the maximum extent practicable, ensure that the membership of the
Council has a balance of Federal, State, local,
tribal, and private members, and includes geographic diversity, including representation
from areas with coastline on the Gulf of Mex-
Page 5816
ico and other States containing areas identified by the Administrator as at high risk for
flooding or as areas having special flood hazards.
(c) Duties
The Council shall—
(1) recommend to the Administrator how to
improve in a cost-effective manner the—
(A) accuracy, general quality, ease of use,
and distribution and dissemination of flood
insurance rate maps and risk data; and
(B) performance metrics and milestones
required to effectively and efficiently map
flood risk areas in the United States;
(2) recommend to the Administrator mapping standards and guidelines for—
(A) flood insurance rate maps; and
(B) data accuracy, data quality, data currency, and data eligibility;
(3) recommend to the Administrator how to
maintain, on an ongoing basis, flood insurance
rate maps and flood risk identification;
(4) recommend procedures for delegating
mapping activities to State and local mapping
partners;
(5) recommend to the Administrator and
other Federal agencies participating in the
Council—
(A) methods for improving interagency
and intergovernmental coordination on flood
mapping and flood risk determination; and
(B) a funding strategy to leverage and coordinate budgets and expenditures across
Federal agencies; and
(6) submit an annual report to the Administrator that contains—
(A) a description of the activities of the
Council;
(B) an evaluation of the status and performance of flood insurance rate maps and
mapping activities to revise and update
flood insurance rate maps, as required under
section 4101b of this title; and
(C) a summary of recommendations made
by the Council to the Administrator.
(d) Future conditions risk assessment and modeling report
(1) In general
The Council shall consult with scientists
and technical experts, other Federal agencies,
States, and local communities to—
(A) develop recommendations on how to—
(i) ensure that flood insurance rate maps
incorporate the best available climate
science to assess flood risks; and
(ii) ensure that the Federal Emergency
Management Agency uses the best available methodology to consider the impact
of—
(I) the rise in the sea level; and
(II) future development on flood risk;
and
(B) not later than 1 year after July 6, 2012,
prepare written recommendations in a future conditions risk assessment and modeling report and to submit such recommendations to the Administrator.
(2) Responsibility of the Administrator
The Administrator, as part of the ongoing
program to review and update National Flood
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
Insurance Program rate maps under section
4101b of this title, shall incorporate any future
risk assessment submitted under paragraph
(1)(B) in any such revision or update.
(e) Chairperson
The members of the Council shall elect 1 member to serve as the chairperson of the Council (in
this section referred to as the ‘‘Chairperson’’).
(f) Coordination
To ensure that the Council’s recommendations
are consistent, to the maximum extent practicable, with national digital spatial data collection and management standards, the Chairperson shall consult with the Chairperson of the
Federal Geographic Data Committee (established pursuant to Office of Management and
Budget Circular A–16).
(g) Compensation
Members of the Council shall receive no additional compensation by reason of their service
on the Council.
(h) Meetings and actions
(1) In general
The Council shall meet not less frequently
than twice each year at the request of the
Chairperson or a majority of its members, and
may take action by a vote of the majority of
the members.
(2) Initial meeting
The Administrator, or a person designated
by the Administrator, shall request and coordinate the initial meeting of the Council.
(i) Officers
The Chairperson may appoint officers to assist
in carrying out the duties of the Council under
subsection (c).
(j) Staff
(1) Staff of FEMA
Upon the request of the Chairperson, the Administrator may detail, on a nonreimbursable
basis, personnel of the Federal Emergency
Management Agency to assist the Council in
carrying out its duties.
(2) Staff of other Federal agencies
Upon request of the Chairperson, any other
Federal agency that is a member of the Council may detail, on a nonreimbursable basis,
personnel to assist the Council in carrying out
its duties.
(k) Powers
In carrying out this section, the Council may
hold hearings, receive evidence and assistance,
provide information, and conduct research, as it
considers appropriate.
(l) Report to Congress
The Administrator, on an annual basis, shall
report to the Committee on Banking, Housing,
and Urban Affairs of the Senate, the Committee
on Financial Services of the House of Representatives, and the Office of Management and Budget on the—
(1) recommendations made by the Council;
(2) actions taken by the Federal Emergency
Management Agency to address such rec-
§ 4101b
ommendations to improve flood insurance rate
maps and flood risk data; and
(3) any recommendations made by the Council that have been deferred or not acted upon,
together with an explanatory statement.
(Pub. L. 112–141, div. F, title II, § 100215, July 6,
2012, 126 Stat. 924.)
Editorial Notes
CODIFICATION
Section was enacted as part of the Biggert-Waters
Flood Insurance Reform Act of 2012, and also as part of
the Moving Ahead for Progress in the 21st Century Act,
also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this
chapter.
Statutory Notes and Related Subsidiaries
DEFINITIONS
For definitions of terms used in this section, see section 4004 of this title.
§ 4101b. National Flood Mapping Program
(a) Reviewing, updating, and maintaining maps
The Administrator, in coordination with the
Technical Mapping Advisory Council established
under section 4101a of this title, shall establish
an ongoing program under which the Administrator shall review, update, and maintain National Flood Insurance Program rate maps in
accordance with this section.
(b) Mapping
(1) In general
In carrying out the program established
under subsection (a), the Administrator
shall—
(A) identify, review, update, maintain, and
publish National Flood Insurance Program
rate maps with respect to—
(i) all populated areas and areas of possible population growth located within the
100-year floodplain;
(ii) all populated areas and areas of possible population growth located within the
500-year floodplain;
(iii) areas of residual risk, including
areas that are protected by levees, dams,
and other flood control structures;
(iv) areas that could be inundated as a
result of the failure of a levee, dam, or
other flood control structure;
(v) areas that are protected by nonstructural flood mitigation features; and
(vi) the level of protection provided by
flood control structures and by non-structural flood mitigation features;
(B) 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
such area; and
(C) use, in identifying, reviewing, updating, maintaining, or publishing any National
Flood Insurance Program rate map required
under this section or under the National
Flood Insurance Act of 1968 (42 U.S.C. 4011 et
seq.), the most accurate topography and elevation data available.
§ 4101b
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(2) Mapping elements
Each map updated under this section shall—
(A) assess the accuracy of current ground
elevation data used for hydrologic and hydraulic modeling of flooding sources and
mapping of the flood hazard and wherever
necessary acquire new ground elevation data
utilizing the most up-to-date geospatial
technologies in accordance with guidelines
and specifications of the Federal Emergency
Management Agency; and
(B) develop National Flood Insurance Program flood data on a watershed basis—
(i) to provide the most technically effective and efficient studies and hydrologic
and hydraulic modeling; and
(ii) to eliminate, to the maximum extent
possible, discrepancies in base flood elevations between adjacent political subdivisions.
(3) Other inclusions
In updating maps under this section, the Administrator shall include—
(A) any relevant information on coastal
inundation from—
(i) an applicable inundation map of the
Corps of Engineers; and
(ii) data of the National Oceanic and Atmospheric Administration relating to
storm surge modeling;
(B) any relevant information of the United
States Geological Survey on stream flows,
watershed characteristics, and topography
that is useful in the identification of flood
hazard areas, as determined by the Administrator;
(C) any relevant information on land subsidence, coastal erosion areas, changing lake
levels, and other flood-related hazards;
(D) any relevant information or data of the
National Oceanic and Atmospheric Administration and the United States Geological
Survey relating to the best available science
regarding future changes in sea levels, precipitation, and intensity of hurricanes; and
(E) any other relevant information as may
be recommended by the Technical Mapping
Advisory Committee.
(c) Standards
In updating and maintaining maps under this
section, the Administrator shall—
(1) establish standards to—
(A) ensure that maps are adequate for—
(i) flood risk determinations; and
(ii) use by State and local governments
in managing development to reduce the
risk of flooding; and
(B) facilitate identification and use of consistent methods of data collection and analysis by the Administrator, in conjunction
with State and local governments, in developing maps for communities with similar
flood risks, as determined by the Administrator; and
(2) publish maps in a format that is—
(A) digital geospatial data compliant;
(B) compliant with the open publishing
and data exchange standards established by
the Open Geospatial Consortium; and
Page 5818
(C) aligned with official data defined by
the National Geodetic Survey.
(d) Communication and outreach
(1) In general
The Administrator shall—
(A) before commencement of any mapping
or map updating process, notify each community affected of the model or models that
the Administrator plans to use in such process and provide an explanation of why such
model or models are appropriate;
(B) provide each community affected a 30day period beginning upon notification
under subparagraph (A) to consult with the
Administrator regarding the appropriateness, with respect to such community, of the
mapping model or models to be used; provided that consultation by a community
pursuant to this subparagraph shall not
waive or otherwise affect any right of the
community to appeal any flood hazard determinations;
(C) upon completion of the first Independent Data Submission, transmit a copy
of such Submission to the affected community, provide the affected community a 30day period during which the community
may provide data to Administrator 1 that
can be used to supplement or modify the existing data, and incorporate any data that is
consistent with prevailing engineering principles;
(D) work with States, local communities,
and property owners to identify areas and
features described in subsection (b)(1)(A)(v);
(E) work to enhance communication and
outreach to States, local communities, and
property owners about the effects—
(i) of any potential changes to National
Flood Insurance Program rate maps that
may result from the mapping program required under this section; and
(ii) that any such changes may have on
flood insurance purchase requirements;
(F) engage with local communities to enhance communication and outreach to the
residents of such communities, including
tenants (with regard to contents insurance),
on the matters described under subparagraph (E);
(G) not less than 30 days before issuance of
any preliminary map, notify the Senators
for each State affected and each Member of
the House of Representatives for each congressional district affected by the preliminary map in writing of—
(i) the estimated schedule for—
(I) community meetings regarding the
preliminary map;
(II) publication of notices regarding
the preliminary map in local newspapers; and
(III) the commencement of the appeals
process regarding the map; and
(ii) the estimated number of homes and
businesses that will be affected by changes
contained in the preliminary map, includ1 So
in original. Probably should be preceded by ‘‘the’’.
Page 5819
TITLE 42—THE PUBLIC HEALTH AND WELFARE
ing how many structures will be 2 that
were not previously located in an area having special flood hazards will be located
within such an area under the preliminary
map; and
(H) upon the issuance of any proposed map
and any notice of an opportunity to make an
appeal relating to the proposed map, notify
the Senators for each State affected and
each Member of the House of Representatives for each congressional district affected
by the proposed map of any action taken by
the Administrator with respect to the proposed map or an appeal relating to the proposed map.
(2) Required activities
The communication and outreach activities
required under paragraph (1) shall include—
(A) notifying property owners when their
properties become included in, or when they
are excluded from, an area covered by the
mandatory flood insurance purchase requirement under section 4012a of this title;
(B) educating property owners regarding
the flood risk and reduction of this risk in
their community, including the continued
flood risks to areas that are no longer subject to the flood insurance mandatory purchase requirement;
(C) educating property owners regarding
the benefits and costs of maintaining or acquiring flood insurance, including, where applicable, lower-cost preferred risk policies
under the National Flood Insurance Act of
1968 (42 U.S.C. 4011 et seq.) for such properties and the contents of such properties;
(D) educating property owners about flood
map revisions and the process available to
such owners to appeal proposed changes in
flood elevations through their community,
including by notifying local radio and television stations; and
(E) encouraging property owners to maintain or acquire flood insurance coverage.
(e) Community remapping request
Upon the adoption by the Administrator of
any recommendation by the Technical Mapping
Advisory Council for reviewing, updating, or
maintaining National Flood Insurance Program
rate maps in accordance with this section, a
community that believes that its flood insurance rates in effect prior to adoption would be
affected by the adoption of such recommendation may submit a request for an update of its
rate maps, which may be considered at the Administrator’s sole discretion. The Administrator
shall establish a protocol for the evaluation of
such community map update requests.
(f) Authorization of appropriations
There is authorized to be appropriated to the
Administrator to carry out this section
$400,000,000 for each of fiscal years 2013 through
2017.
(Pub. L. 112–141, div. F, title II, § 100216, July 6,
2012, 126 Stat. 927; Pub. L. 113–89, §§ 27, 30, Mar.
21, 2014, 128 Stat. 1033, 1034.)
2 So in original. The words ‘‘will be’’ probably should not appear.
§ 4101c
Editorial Notes
REFERENCES IN TEXT
The National Flood Insurance Act of 1968, referred to
in subsecs. (b)(1)(C) and (d)(2)(C), is title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
CODIFICATION
Section was enacted as part of the Biggert-Waters
Flood Insurance Reform Act of 2012, and also as part of
the Moving Ahead for Progress in the 21st Century Act,
also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this
chapter.
AMENDMENTS
2014—Subsec. (b)(1)(A)(v), (vi). Pub. L. 113–89, § 27(1),
added cl. (v), redesignated former cl. (v) as (vi), and, in
cl. (vi), inserted ‘‘and by non-structural flood mitigation features’’ before semicolon at end.
Subsec. (d)(1)(A). Pub. L. 113–89, § 30(3), added subpar.
(A). Former subpar. (A) redesignated (D).
Pub. L. 113–89, § 27(2)(C), added subpar. (A). Former
subpar. (A) redesignated (B).
Subsec. (d)(1)(B). Pub. L. 113–89, § 30(3), added subpar.
(B). Former subpar. (B) redesignated (E).
Pub. L. 113–89, § 27(2)(A), redesignated subpar. (A) as
(B). Former subpar. (B) redesignated (C).
Subsec. (d)(1)(C). Pub. L. 113–89, § 30(3), added subpar.
(C). Former subpar. (C) redesignated (F).
Pub. L. 113–89, § 30(1), substituted ‘‘subparagraph (E)’’
for ‘‘subparagraph (B)’’ and struck out ‘‘and’’ at end.
Pub. L. 113–89, § 27(2)(A), (B), redesignated subpar. (B)
as (C) and substituted ‘‘subparagraph (B)’’ for ‘‘subparagraph (A)’’. Former subpar. (C) redesignated (D).
Subsec. (d)(1)(D). Pub. L. 113–89, § 30(2), redesignated
subpar. (A) as (D). Former subpar. (D) redesignated (H).
Pub. L. 113–89, § 27(2)(A), redesignated subpar. (C) as
(D).
Subsec. (d)(1)(E), (F). Pub. L. 113–89, § 30(2), redesignated subpars. (B) and (C) as (E) and (F), respectively.
Subsec. (d)(1)(G). Pub. L. 113–89, § 30(4), added subpar.
(G).
Subsec. (d)(1)(H). Pub. L. 113–89, § 30(2), redesignated
subpar. (D) as (H).
Statutory Notes and Related Subsidiaries
DEFINITIONS
For definitions of terms used in this section, see section 4004 of this title.
§ 4101c. Coordination
(a) Interagency budget crosscut and coordination report
(1) In general
The Secretary of Homeland Security, the
Administrator, the Director of the Office of
Management and Budget, and the heads of
each Federal department or agency carrying
out activities under sections 4101a and 4101b of
this title shall work together to ensure that
flood risk determination data and geospatial
data are shared among Federal agencies in
order to coordinate the efforts of the Nation to
reduce its vulnerability to flooding hazards.
(2) Report
Not later than 30 days after the submission
of the budget of the United States Government
by the President to Congress, the Director of
the Office of Management and Budget, in co-
§ 4101d
TITLE 42—THE PUBLIC HEALTH AND WELFARE
ordination with the Federal Emergency Management Agency, the United States Geological
Survey, the National Oceanic and Atmospheric Administration, the Corps of Engineers,
and other Federal agencies, as appropriate,
shall submit to the appropriate authorizing
and appropriating committees of the Senate
and the House of Representatives an interagency budget crosscut and coordination report, certified by the Secretary or head of
each such agency, that—
(A) contains an interagency budget crosscut report that displays relevant sections of
the budget proposed for each of the Federal
agencies working on flood risk determination data and digital elevation models, including any planned interagency or intraagency transfers; and
(B) describes how the efforts aligned with
such sections complement one another.
(b) Duties of the Administrator
In carrying out sections 4101a and 4101b of this
title, the Administrator shall—
(1) participate, pursuant to section 216 of the
E–Government Act of 2002 (44 U.S.C. 3501 note),
in the establishment of such standards and
common protocols as are necessary to assure
the interoperability of geospatial data for all
users of such information;
(2) coordinate with, seek assistance and cooperation of, and provide a liaison to the Federal Geographic Data Committee pursuant to
the Office of Management and Budget Circular
A–16 and Executive Order 12906 (43 U.S.C. 1457
note; relating to the National Spatial Data Infrastructure) for the implementation of and
compliance with such standards;
(3) integrate with, leverage, and coordinate
funding of, to the maximum extent practicable, the current flood mapping activities of
each unit of State and local government;
(4) integrate with, leverage, and coordinate,
to the maximum extent practicable, the current geospatial activities of other Federal
agencies and units of State and local government; and
(5) develop a funding strategy to leverage
and coordinate budgets and expenditures, and
to maintain or establish joint funding and
other agreement mechanisms with other Federal agencies and units of State and local government to share in the collection and utilization of geospatial data among all governmental users.
(Pub. L. 112–141, div. F, title II, § 100220, July 6,
2012, 126 Stat. 932.)
Editorial Notes
REFERENCES IN TEXT
Section 216 of the E–Government Act of 2002, referred
to in subsec. (b)(1), is section 216 of Pub. L. 107–347,
which is set out in a note under section 3501 of Title 44,
Public Printing and Documents.
Executive Order 12906, referred to in subsec. (b)(2), is
Ex. Ord. No. 12906, Apr. 11, 1994, 59 F.R. 17671, which is
set out as a note under section 1457 of Title 43, Public
Lands.
CODIFICATION
Section was enacted as part of the Biggert-Waters
Flood Insurance Reform Act of 2012, and also as part of
Page 5820
the Moving Ahead for Progress in the 21st Century Act,
also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this
chapter.
Statutory Notes and Related Subsidiaries
DEFINITIONS
For definitions of terms used in this section, see section 4004 of this title.
§ 4101d. Flood insurance rate map certification
The Administrator shall implement a flood
mapping program for the National Flood Insurance Program, only after review by the Technical Mapping Advisory Council, that, when applied, results in technically credible flood hazard data in all areas where Flood Insurance Rate
Maps are prepared or updated, shall certify in
writing to the Congress when such a program
has been implemented, and shall provide to the
Congress the Technical Mapping Advisory Council review report.
(Pub. L. 113–89, § 17, Mar. 21, 2014, 128 Stat. 1027.)
Editorial Notes
CODIFICATION
Section was enacted as part of the Homeowner Flood
Insurance Affordability Act of 2014, and not as part of
the National Flood Insurance Act of 1968 which comprises this chapter.
Statutory Notes and Related Subsidiaries
DEFINITIONS
For definitions of terms used in this section, see section 4005 of this title.
§ 4101e. Exemption from fees for certain map
change requests
Notwithstanding any other provision of law, a
requester shall be exempt from submitting a review or processing fee for a request for a flood
insurance rate map change based on a habitat
restoration project that is funded in whole or in
part with Federal or State funds, including dam
removal, culvert redesign or installation, or the
installation of fish passage.
(Pub. L. 113–89, § 22, Mar. 21, 2014, 128 Stat. 1028.)
Editorial Notes
CODIFICATION
Section was enacted as part of the Homeowner Flood
Insurance Affordability Act of 2014, and not as part of
the National Flood Insurance Act of 1968 which comprises this chapter.
§ 4102. Criteria for land management and use
(a) Studies and investigations
The Administrator 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 con-
Page 5821
TITLE 42—THE PUBLIC HEALTH AND WELFARE
tracts, agreements, or other appropriate arrangements to carry out such authority.
(b) Extent of studies and investigations
Such studies and investigations shall include,
but not be limited to, laws, regulations, or ordinances relating to encroachments and obstructions on stream channels and floodways, the orderly development and use of flood plains of rivers or streams, floodway encroachment lines,
and flood plain zoning, building codes, building
permits, and subdivision or other building restrictions.
(c) Development of comprehensive criteria designed to encourage adoption of adequate
State and local measures
On the basis of such studies and investigations, and such other information as he deems
necessary, the Administrator shall from time to
time develop comprehensive criteria designed to
encourage, where necessary, the adoption of adequate State and local measures which, to the
maximum extent feasible, will—
(1) constrict the development of land which
is exposed to flood damage where appropriate,
(2) guide the development of proposed construction away from locations which are
threatened by flood hazards,
(3) assist in reducing damage caused by
floods, and
(4) otherwise improve the long-range land
management and use of flood-prone areas,
and he shall work closely with and provide any
necessary technical assistance to State, interstate, and local governmental agencies, to encourage the application of such criteria and the
adoption and enforcement of such measures.
(d) Flood mitigation methods for buildings
The Administrator shall establish guidelines
for property owners that—
(1) provide alternative methods of mitigation, other than building elevation, to reduce
flood risk to residential buildings that cannot
be elevated due to their structural characteristics, including—
(A) types of building materials; and
(B) types of floodproofing; and
(2) inform property owners about how the
implementation of mitigation methods described in paragraph (1) may affect risk premium rates for flood insurance coverage under
the National Flood Insurance Program.
(Pub. L. 90–448, title XIII, § 1361, Aug. 1, 1968, 82
Stat. 587; Pub. L. 91–152, title IV, § 410(c), Dec. 24,
1969, 83 Stat. 397; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958; Pub. L. 113–89, § 26(a)(1), Mar. 21,
2014, 128 Stat. 1032.)
Editorial Notes
AMENDMENTS
2014—Subsec. (d). Pub. L. 113–89 added subsec. (d).
2012—Subsecs. (a), (c). Pub. L. 112–141 substituted
‘‘Administrator’’ for ‘‘Director’’.
1983—Subsecs. (a), (c). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
1969—Subsec. (c). Pub. L. 91–152 substituted provisions
requiring development of criteria designed to encour-
§ 4103
age adoption of adequate State and local measures, for
provisions requiring development of criteria designed
to encourage adoption of permanent State and local
measures.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
GUIDELINES
Pub. L. 113–89, § 26(a)(2), Mar. 21, 2014, 128 Stat. 1032,
provided that: ‘‘The Administrator [of the Federal
Emergency Management Agency] shall issue the guidelines required under section 1361(d) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4102(d)), as added
by the amendment made by paragraph (1) of this subsection, not later than the expiration of the 1-year period beginning on the date of the enactment of this Act
[Mar. 21, 2014].’’
TASK FORCE ON NATURAL AND BENEFICIAL FUNCTIONS
OF THE FLOODPLAIN
Pub. L. 103–325, title V, § 562, Sept. 23, 1994, 108 Stat.
2276, established the Task Force on Natural and Beneficial Functions of the Floodplain to conduct a study
on the functions of the floodplain that reduce flood-related losses and provided for its termination 24 months
after its last member was designated.
§ 4102a. Repealed. Pub. L. 112–141, div. F, title II,
§ 100225(c), July 6, 2012, 126 Stat. 941
Section, Pub. L. 90–448, title XIII, § 1361A, as added
Pub. L. 108–264, title I, § 102(a), June 30, 2004, 118 Stat.
714, created a pilot program for mitigation of severe repetitive loss properties by mitigating flood damage to
such properties and losses to the National Flood Insurance Fund from such properties.
§ 4103. Repealed. Pub. L. 103–325, title V, § 551(a),
Sept. 23, 1994, 108 Stat. 2269
Section, Pub. L. 90–448, title XIII, § 1362, Aug. 1, 1968,
82 Stat. 588; Pub. L. 95–128, title VII, § 704(b), Oct. 12,
1977, 91 Stat. 1145; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229, related to purchase, by Director, of insured properties damaged substantially beyond repair by flood, for subsequent transfer to State or local agency upon negotiated conditions.
Statutory Notes and Related Subsidiaries
SAVINGS PROVISION
Pub. L. 103–325, title V, § 551(c), Sept. 23, 1994, 108 Stat.
2269, required the Director of the Federal Emergency
§ 4104
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Management Agency to comply with any purchase or
loan commitment entered into before the expiration of
the 1-year period beginning on Sept. 23, 1994, pursuant
to authority under this section or section 551(b) of Pub.
L. 103–325.
TRANSITION PHASE
Pub. L. 103–325, title V, § 551(b), Sept. 23, 1994, 108
Stat. 2269, permitted the Director of the Federal Emergency Management Agency to enter into loan and purchase commitments as provided under this section (as
in effect immediately before the enactment of Pub. L.
103–325) during the 1-year period beginning on Sept. 23,
1994.
§ 4104. Flood elevation determinations
(a) Publication or notification of proposed flood
elevation determinations
In establishing projected flood elevations and
designating areas having special flood hazards
for land use purposes with respect to any community pursuant to section 4102 of this title, the
Administrator shall first propose such determinations and designations 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 Administrator shall publish notification
of flood elevation determinations and designations of areas having special flood hazards 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 Administrator’s proposed determination may appeal such determination to the
local government. The sole grounds for appeal
shall be the possession of knowledge or information indicating that (1) the elevations being proposed by the Administrator with respect to an
identified area having special flood hazards are
scientifically or technically incorrect, or (2) the
designation of an identified special flood hazard
area is scientifically or technically incorrect.
(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 Administrator; filing of community action with Administrator
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 Administrator’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.
Page 5822
Whether or not the community decides to appeal
the Administrator’s determination, copies of individual appeals shall be sent to the Administrator 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 Administrator not later than ninety days after the
date of the second newspaper publication of the
Administrator’s notification.
(d) Administrative review of appeals by private
persons; modification of proposed determinations; decision of Administrator: form and
distribution
In the event the Administrator 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), 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 Administrator’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
Administrator; 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 Administrator 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 Administrator shall resolve such appeal by
consultation with officials of the local government involved, by administrative hearing, or by
submission of the conflicting data to the Scientific Resolution Panel provided for in section
4104–1 of this title. Until the conflict in data is
resolved, and the Administrator 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 Administrator shall make
his determination within a reasonable time. The
community shall be given a reasonable time
after the Administrator’s final determination in
which to adopt local land use and control measures consistent with the Administrator’s determination. The reports and other information
used by the Administrator in making his final
determination shall be made available for public
inspection and shall be admissible in a court of
law in the event the community seeks judicial
review as provided by this section.
Page 5823
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(f) Reimbursement of certain expenses
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, or, in the case of an appeal that is resolved by submission of conflicting data to the
Scientific Resolution Panel provided for in section 4104–1 of this title, the community, incurs
expense in connection with the services of surveyors, engineers, or similar services, but not
including legal services, in the effecting of an
appeal based on a scientific or technical error on
the part of the Federal Emergency Management
Agency, which is successful in whole or part, the
Administrator 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
Administrator in respect to any fee or expense
payment, the payment of which was agreed to be
contingent upon the result of the appeal. The
Administrator may use such amounts from the
National Flood Insurance Fund established
under section 4017 of this title as may be necessary to carry out this subsection. The Administrator shall promulgate regulations to carry
out this subsection.
(g) Judicial review of final administrative determinations; venue; time for appeal; scope of
review; good cause for stay of final determinations
Except as provided in section 4104–1 of this
title, any appellant aggrieved by any final determination of the Administrator 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. During the pendency of any such litigation, all final determinations of the Administrator shall be effective for
the purposes of this chapter unless stayed by the
court for good cause shown.
(Pub. L. 90–448, title XIII, § 1363, as added Pub. L.
93–234, title I, § 110, Dec. 31, 1973, 87 Stat. 980;
amended Pub. L. 95–128, title VII, § 704(c), Oct. 12,
1977, 91 Stat. 1146; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, §§ 100217, 100218(b),
100238(b)(1), (2), 100246, July 6, 2012, 126 Stat. 930,
932, 958, 967; Pub. L. 113–89, § 18(a), Mar. 21, 2014,
128 Stat. 1027.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (g), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
§ 4104
flicting data to the Scientific Resolution Panel provided for in section 4104–1 of this title, the community,’’ after ‘‘as the case may be,’’ and substituted ‘‘The
Administrator may use such amounts from the National Flood Insurance Fund established under section
4017 of this title as may be necessary to carry out this
subsection.’’ for ‘‘The amounts available for implementing this subsection shall not exceed $250,000.’’
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Pub. L. 112–141, § 100217(1), inserted ‘‘and designating
areas having special flood hazards’’ after ‘‘flood elevations’’ and substituted ‘‘such determinations and
designations’’ for ‘‘such determinations’’.
Subsec. (b). Pub. L. 112–141, § 100238(b)(1), (2), substituted ‘‘Administrator’’ for ‘‘Director’’ in first sentence and ‘‘Administrator’s’’ for ‘‘Director’s’’ in second
sentence.
Pub. L. 112–141, § 100217(2), inserted ‘‘and designations
of areas having special flood hazards’’ after ‘‘flood elevation determinations’’ and substituted ‘‘The sole
grounds for appeal shall be the possession of knowledge
or information indicating that (1) the elevations being
proposed by the Administrator with respect to an identified area having special flood hazards are scientifically or technically incorrect, or (2) the designation of
an identified special flood hazard area is scientifically
or technically incorrect.’’ for ‘‘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.’’
Subsecs. (c), (d). Pub. L. 112–141, § 100238(b)(1), (2), substituted ‘‘Administrator’’ for ‘‘Director’’ and ‘‘Administrator’s’’ for ‘‘Director’s’’ wherever appearing.
Subsec. (e). Pub. L. 112–141, § 100238(b)(1), (2), substituted ‘‘Administrator’’ for ‘‘Director’’ wherever appearing and ‘‘Administrator’s’’ for ‘‘Director’s’’ in two
places.
Pub. L. 112–141, § 100218(b)(1), substituted ‘‘the Scientific Resolution Panel provided for in section 4104–1
of this title’’ for ‘‘an independent scientific body or appropriate Federal agency for advice’’.
Subsec. (f). Pub. L. 112–141, § 100246, added subpar. (f)
and struck out former subpar. (f) which read as follows:
‘‘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.’’
Subsec. (g). Pub. L. 112–141, § 100238(b)(1), substituted
‘‘Administrator’’ for ‘‘Director’’ in two places.
Pub. L. 112–141, § 100218(b)(2), substituted ‘‘Except as
provided in section 4104–1 of this title, any appellant’’
for ‘‘Any appellant’’.
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ and ‘‘Director’s’’ for ‘‘Secretary’s’’ wherever
appearing.
1977—Subsecs. (f), (g). Pub. L. 95–128 added subsec. (f)
and redesignated former subsec. (f) as (g).
Statutory Notes and Related Subsidiaries
AMENDMENTS
TRANSFER OF FUNCTIONS
2014—Subsec. (f). Pub. L. 113–89 inserted ‘‘or, in the
case of an appeal that is resolved by submission of con-
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
§ 4104–1
TITLE 42—THE PUBLIC HEALTH AND WELFARE
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4104–1. Scientific Resolution Panel
(a) Availability
(1) In general
Pursuant to the authority provided under
section 4104(e) of this title, the Administrator
shall make available an independent review
panel, to be known as the Scientific Resolution Panel, to any community—
(A) that has—
(i) filed a timely map appeal in accordance with section 4104 of this title;
(ii) completed 60 days of consultation
with the Federal Emergency Management
Agency on the appeal; and
(iii) not allowed more than 120 days, or
such longer period as may be provided by
the Administrator by waiver, to pass since
the end of the appeal period; or
(B) that has received an unsatisfactory
ruling under the map revision process established pursuant to section 4101(f) of this
title.
(2) Appeals by owners and lessees
If a community and an owner or lessee of
real property within the community appeal a
proposed determination of a flood elevation
under section 4104(b) of this title, upon the request of the community—
(A) the owner or lessee shall submit scientific and technical data relating to the appeals to the Scientific Resolution Panel; and
(B) the Scientific Resolution Panel shall
make a determination with respect to the
appeals in accordance with subsection (c).
(3) Definition
For purposes of paragraph (1)(B), an ‘‘unsatisfactory ruling’’ means that a community—
(A) received a revised Flood Insurance
Rate Map from the Federal Emergency Management Agency, via a Letter of Final Determination, after September 30, 2008, and
prior to July 6, 2012;
(B) has subsequently applied for a Letter
of Map Revision or Physical Map Revision
with the Federal Emergency Management
Agency; and
(C) has received an unfavorable ruling on
their request for a map revision.
(b) Membership
The Scientific Resolution Panel made available under subsection (a) shall consist of 5 members with expertise that relates to the creation
and study of flood hazard maps and flood insur-
Page 5824
ance. The Scientific Resolution Panel may include representatives from Federal agencies not
involved in the mapping study in question and
from other impartial experts. Employees of the
Federal Emergency Management Agency may
not serve on the Scientific Resolution Panel.
(c) Determination
(1) In general
Following deliberations, and not later than
90 days after its formation, the Scientific Resolution Panel shall issue a determination of
resolution of the dispute. Such determination
shall set forth recommendations for the base
flood elevation determination or the designation of an area having special flood hazards
that shall be reflected in the Flood Insurance
Rate Maps.
(2) Basis
The determination of the Scientific Resolution Panel shall be based on—
(A) data previously provided to the Administrator by the community, and, in the case
of a dispute submitted under subsection
(a)(2), an owner or lessee of real property in
the community; and
(B) data provided by the Administrator.
(3) No alternative determinations permissible
The Scientific Resolution Panel—
(A) shall provide a determination of resolution of a dispute that—
(i) is either in favor of the Administrator
or in favor of the community on each distinct element of the dispute; or
(ii) in the case of a dispute submitted
under subsection (a)(2), is in favor of the
Administrator, in favor of the community,
or in favor of the owner or lessee of real
property in the community on each distinct element of the dispute; and
(B) may not offer as a resolution any other
alternative determination.
(4) Effect of determination
(A) Binding
The recommendations of the Scientific
Resolution Panel shall be binding on all appellants and not subject to further judicial
review unless the Administrator determines
that implementing the determination of the
panel would—
(i) pose a significant threat due to failure to identify a substantial risk of special
flood hazards; or
(ii) violate applicable law.
(B) Written justification not to enforce
If the Administrator elects not to implement the determination of the Scientific
Resolution Panel pursuant to subparagraph
(A), then not later than 60 days after the
issuance of the determination, the Administrator shall issue a written justification explaining such election.
(C) Appeal of determination not to enforce
If the Administrator elects not to implement the determination of the Scientific
Resolution Panel pursuant to subparagraph
(A), the community may appeal the deter-
Page 5825
TITLE 42—THE PUBLIC HEALTH AND WELFARE
mination of the Administrator as provided
for under section 4104(g) of this title.
(d) Maps used for insurance and mandatory purchase requirements
With respect to any community that has a dispute that is being considered by the Scientific
Resolution Panel formed pursuant to this subsection, the Federal Emergency Management
Agency shall ensure that for each such community that—
(1) the Flood Insurance Rate Map described
in the most recently issued Letter of Final Determination shall be in force and effect with
respect to such community; and
(2) flood insurance shall continue to be made
available to the property owners and residents
of the participating community.
(Pub. L. 90–448, title XIII, § 1363A, as added Pub.
L. 112–141, div. F, title II, § 100218(a), July 6, 2012,
126 Stat. 930.)
§ 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 Administrator under this chapter or the Flood Disaster Protection Act of 1973 as an area having
special flood hazards, to notify the purchaser
or lessee (or obtain satisfactory assurances
that the seller or lessor has notified the purchaser or lessee) and the servicer of the loan of
such special flood hazards, in writing, a reasonable period in advance of the signing of the
purchase agreement, lease, or other documents involved in the transaction. The regulations shall also 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 Administrator under this chapter or the Flood Disaster Protection Act of 1973 as an area having
special flood hazards. Any regulations issued
under this paragraph shall be consistent with
and substantially identical to the regulations
issued under paragraph (1).
(3) Contents of notice
Written notification required under this subsection shall include—
(A) a warning, in a form to be established
by the Administrator, stating that the building on the improved real estate securing the
§ 4104a
loan is located, or the mobile home securing
the loan is or is to be located, in an area
having special flood hazards;
(B) a description of the flood insurance
purchase requirements under section 102(b)
of the Flood Disaster Protection Act of 1973
[42 U.S.C. 4012a(b)];
(C) a statement that flood insurance coverage may be purchased under the national
flood insurance program and is also available from private insurers, as required under
section 102(b)(6) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)(6)); and
(D) any other information that the Administrator 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), to notify the Administrator (or the designee of the Administrator) in writing during
the term of the loan of the servicer of the
loan. Such institutions shall also notify the
Administrator (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) 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.
(c) Notification of expiration of insurance
The Administrator (or the designee of the Administrator) shall, not less than 45 days before
the expiration of any contract for flood insurance under this chapter, issue notice of such expiration by first class mail to the owner of the
property covered by the contract, the servicer of
any loan secured by the property covered by the
contract, and (if known to the Administrator)
the owner of the loan.
(Pub. L. 90–448, title XIII, § 1364, as added Pub. L.
93–383, title VIII, § 816(a), Aug. 22, 1974, 88 Stat.
739; amended Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
103–325, title V, § 527, Sept. 23, 1994, 108 Stat. 2263;
Pub. L. 112–141, div. F, title II, §§ 100238(b)(1),
100239(b), July 6, 2012, 126 Stat. 958, 960.)
§ 4104b
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a)(1), (2) and (c),
was in the original a reference to ‘‘this title’’ meaning
title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572,
known as the National Flood Insurance Act of 1968,
which is classified principally to this chapter. For complete classification of this Act to the Code, see Short
Title note set out under section 4001 of this title and
Tables.
The Flood Disaster Protection Act of 1973, referred to
in subsec. (a)(1), (2), is Pub. L. 93–234, Dec. 31, 1973, 87
Stat. 975, as amended, which enacted sections 4002, 4003,
4012a, 4104, 4104a, 4105 to 4107, and 4128 of this title,
amended sections 4001, 4013 to 4016, 4026, 4054, 4056, 4101,
and 4121 of this title and sections 24 and 1709–1 of Title
12, Banks and Banking, repealed section 4021 of this
title, and enacted provision set out as a note under section 4001 of this title. For complete classification of
this Act to the Code, see Short Title of 1973 Amendment note set out under section 4001 of this title and
Tables.
AMENDMENTS
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ wherever appearing.
Subsec. (a)(3)(C). Pub. L. 112–141, § 100239(b), inserted
‘‘, as required under section 102(b)(6) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(b)(6))’’ after
‘‘private insurers’’.
Subsecs. (b)(1), (c). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ wherever appearing.
1994—Pub. L. 103–325 amended section generally. Prior
to amendment, section read as follows: ‘‘Each Federal
instrumentality responsible for the supervision, approval, regulation, or insuring of banks, savings and
loan associations, or similar institutions shall by regulation require such institutions, as a condition of making, increasing, extending, or renewing (after the expiration of thirty days following August 22, 1974) any loan
secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Director under this chapter or Public Law
93–234 as an area having special flood hazards, to notify
the purchaser or lessee (or obtain satisfactory assurances that the seller or lessor has notified the purchaser or lessee) of such special flood hazards, in writing, a reasonable period in advance of the signing of the
purchase agreement, lease, or other documents involved in the transaction.’’
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
Statutory Notes and Related Subsidiaries
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
Page 5826
§ 4104b. Standard hazard determination forms
(a) Development
The Administrator, 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 Administrator as an
area having special flood hazards and in which
flood insurance under this chapter is available.
The form shall be established by regulations
issued not later than 270 days after September
23, 1994.
(b) Design and contents
(1) Purpose
The form under subsection (a) shall be designed to facilitate compliance with the flood
insurance purchase requirements of this chapter.
(2) Contents
The form shall require identification of the
type of flood-risk zone in which the building
or mobile home is located, the complete map
and panel numbers for the improved real estate or property on which the mobile home is
located, the community identification number
and community participation status (for purposes of the national flood insurance program)
of the community in which the improved real
estate or such property is located, and the
date of the map used for the determination,
with respect to flood hazard information on
file with the Administrator. 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.
Page 5827
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(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 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 Administrator 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) and shall
take effect upon the expiration of the 180-day
period beginning on such issuance.
(Pub. L. 90–448, title XIII, § 1365, as added Pub. L.
103–325, title V, § 528, Sept. 23, 1994, 108 Stat. 2264;
amended Pub. L. 112–141, div. F, title II,
§ 100238(b)(1), July 6, 2012, 126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a) and (b)(1), was
in the original a reference to ‘‘this title’’ meaning title
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
AMENDMENTS
2012—Subsecs. (a), (b)(2), (e)(2). Pub. L. 112–141 substituted ‘‘Administrator’’ for ‘‘Director’’ wherever appearing.
Statutory Notes and Related Subsidiaries
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
§ 4104c
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4104c. Mitigation assistance
(a) Authority
The Administrator 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.
Such financial assistance shall be made available—
(1) to States and communities in the form of
grants under this section for carrying out
mitigation activities;
(2) to States and communities in the form of
grants under this section for carrying out
mitigation activities that reduce flood damage
to severe repetitive loss structures; and
(3) to property owners in the form of direct
grants under this section for carrying out
mitigation activities that reduce flood damage
to individual structures for which 2 or more
claim payments for losses have been made
under flood insurance coverage under this
chapter if the Administrator, after consultation with the State and community, determines that neither the State nor community
in which such a structure is located has the
capacity to manage such grants.
(b) 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 Administrator, a flood risk mitigation plan (in this section referred to as a
‘‘mitigation plan’’), that describes the mitigation activities to be carried out with assistance
provided under this section, is consistent with
the criteria established by the Administrator
under section 4102 of this title, provides for reduction of flood losses to structures for which
contracts for flood insurance are available under
this chapter, and may be included in a multihazard mitigation plan. 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.
(c) Eligible mitigation activities
(1) Requirement of consistency with approved
mitigation plan
Amounts provided under this section may be
used only for mitigation activities that are
consistent with mitigation plans that are approved by the Administrator and identified
under paragraph (4). The Administrator shall
provide assistance under this section to the
§ 4104c
TITLE 42—THE PUBLIC HEALTH AND WELFARE
extent amounts are available in the National
Flood Mitigation Fund pursuant to appropriation Acts, subject only to the absence of approvable mitigation plans.
(2) Requirements of technical feasibility, cost
effectiveness, and interest of National
Flood Insurance Fund
(A) In general
The Administrator may approve only mitigation activities that the Administrator determines—
(i) are technically feasible and cost-effective; or
(ii) will eliminate future payments from
the National Flood Insurance Fund for severe repetitive loss structures through an
acquisition or relocation activity.
(B) Considerations
In making a determination under subparagraph (A), the Administrator shall take into
consideration recognized ancillary benefits.
(3) Eligible activities
Eligible activities under a mitigation plan
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 Administrator determines is consistent with sound land management and use
in such area;
(D) elevation, relocation, or floodproofing
of utilities (including equipment that serves
structures);
(E) 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 Administrator
specifically determines in approving a mitigation plan that such activities are the most
cost-effective mitigation activities for the
National Flood Mitigation Fund;
(F) the development or update of mitigation plans by a State or community which
meet the planning criteria established by
the Administrator, except that the amount
from grants under this section that may be
used under this subparagraph may not exceed $50,000 for any mitigation plan of a
State or $25,000 for any mitigation plan of a
community;
(G) the provision of technical assistance
by States to communities and individuals to
conduct eligible mitigation activities;
Page 5828
(H) other activities that the Administrator
considers appropriate and specifies in regulation;
(I) other mitigation activities not described in subparagraphs (A) through (G) or
the regulations issued under subparagraph
(H), that are described in the mitigation
plan of a State or community; and
(J) without regard to the requirements
under paragraphs (1) and (2) of subsection
(d), and if the State applied for and was
awarded at least $1,000,000 in grants available under this section in the prior fiscal
year, technical assistance to communities to
identify eligible activities, to develop grant
applications, and to implement grants
awarded under this section, not to exceed
$50,000 to any 1 State in any fiscal year.
(4) Eligibility of demolition and rebuilding of
properties
The Administrator shall consider as an eligible activity the demolition and rebuilding of
properties to at least base flood elevation or
greater, if required by the Administrator or if
required by any State regulation or local ordinance, and in accordance with criteria established by the Administrator.
(d) Matching requirement
The Administrator may provide grants for eligible mitigation activities as follows:
(1) Severe repetitive loss structures
In the case of mitigation activities to severe
repetitive loss structures, in an amount up
to—
(A) 100 percent of all eligible costs, if the
activities are approved under subsection
(c)(2)(A)(i); or
(B) the expected savings to the National
Flood Insurance Fund from expected avoided
damages through acquisition or relocation
activities, if the activities are approved
under subsection (c)(2)(A)(ii).
(2) Repetitive loss structures
In the case of mitigation activities to repetitive loss structures, in an amount up to 90
percent of all eligible costs.
(3) Other mitigation activities
In the case of all other mitigation activities,
in an amount up to 75 percent of all eligible
costs.
(e) Recapture
(1) Noncompliance with plan
If the Administrator 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 Administrator shall recapture any unexpended amounts and deposit
the amounts in the National Flood Mitigation
Fund under section 4104d of this title.
(2) Failure to provide matching funds
If the Administrator determines that a State
or community that has received mitigation assistance under this section has not provided
matching funds in the amount required under
subsection (d), the Administrator shall recap-
Page 5829
TITLE 42—THE PUBLIC HEALTH AND WELFARE
ture any unexpended amounts of mitigation
assistance exceeding the amount of such
matching funds actually provided and deposit
the amounts in the National Flood Mitigation
Fund under section 4104d of this title.
(f) Reports
Not later than 1 year after July 6, 2012, and biennially thereafter, the Administrator shall submit a report to the Congress describing the status of mitigation activities carried out with assistance provided under this section.
(g) Failure to make grant award within 5 years
For any application for a grant under this section for which the Administrator fails to make
a grant award within 5 years of the date of the
application, the grant application shall be considered to be denied and any funding amounts
allocated for such grant applications shall remain in the National Flood Mitigation Fund
under section 4104d of this title and shall be
made available for grants under this section.
(h) Definitions
For purposes of this section, the following
definitions shall apply:
(1) Community
The term ‘‘community’’ means—
(A) a political subdivision that—
(i) has zoning and building code jurisdiction over a particular area having special
flood hazards; and
(ii) is participating in the national flood
insurance program; or
(B) a political subdivision of a State, or
other authority, that is designated by political subdivisions, all of which meet the requirements of subparagraph (A), to administer grants for mitigation activities for
such political subdivisions.
(2) Repetitive loss structure
The term ‘‘repetitive loss structure’’ has the
meaning given such term in section 4121 of
this title.
(3) Severe repetitive loss structure
The term ‘‘severe repetitive loss structure’’
means a structure that—
(A) is covered under a contract for flood
insurance made available under this chapter;
and
(B) has incurred flood-related damage—
(i) for which 4 or more separate claims
payments have been made under flood insurance coverage under this chapter, with
the amount of each such claim exceeding
$5,000, and with the cumulative amount of
such claims payments exceeding $20,000; or
(ii) for which at least 2 separate claims
payments have been made under such coverage, with the cumulative amount of such
claims exceeding the value of the insured
structure.
(Pub. L. 90–448, title XIII, § 1366, as added Pub. L.
103–325, title V, § 553(a), Sept. 23, 1994, 108 Stat.
2270; amended Pub. L. 108–264, title I, § 103(a)–(c),
(e), (f), June 30, 2004, 118 Stat. 721, 722; Pub. L.
112–95, title VIII, § 815(b), Feb. 14, 2012, 126 Stat.
125; Pub. L. 112–141, div. F, title II, §§ 100225(a),
100238(b)(1), July 6, 2012, 126 Stat. 938, 958.)
§ 4104c
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a), (b), and
(h)(3)(A), (B)(i), was in the original a reference to ‘‘this
title’’ meaning title XIII of Pub. L. 90–448, Aug. 1, 1968,
82 Stat. 572, known as the National Flood Insurance Act
of 1968, which is classified principally to this chapter.
For complete classification of this Act to the Code, see
Short Title note set out under section 4001 of this title
and Tables.
AMENDMENTS
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ in introductory provisions.
Pub. L. 112–141, § 100225(a)(3), substituted ‘‘Such financial assistance shall be made available—’’ for ‘‘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.’’ and added pars. (1) to (3).
Subsec. (b). Pub. L. 112–141, § 100238(b)(1), substituted
‘‘Administrator’’ for ‘‘Director’’ in two places.
Pub. L. 112–141, § 100225(a)(4), substituted ‘‘provides for
reduction of’’ for ‘‘and provides protection against’’ and
inserted ‘‘, and may be included in a multihazard mitigation plan’’ after ‘‘under this chapter’’.
Pub. L. 112–141, § 100225(a)(1), (2), redesignated subsec.
(c) as (b) and struck out former subsec. (b) which related to mitigation planning assistance grants.
Subsec. (c). Pub. L. 112–141, § 100225(a)(2), redesignated
subsec. (e) as (c). Former subsec. (c) redesignated (b).
Subsec. (c)(1). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator shall’’ for ‘‘Director shall’’.
Pub. L. 112–141, § 100225(a)(5)(A), substituted ‘‘Requirement of consistency with approved mitigation plan’’ for
‘‘Use of amounts’’ in heading and ‘‘Amounts provided
under this section may be used only for mitigation activities that are consistent with mitigation plans that
are approved by the Administrator and identified under
paragraph (4).’’ for ‘‘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.’’ in text.
Subsec. (c)(2). Pub. L. 112–141, § 100225(a)(5)(B), added
par. (2) and struck out former par. (2). Prior to amendment, text read as follows: ‘‘The Director may approve
only mitigation plans that specify mitigation activities
that the Director determines are technically feasible
and cost-effective and only such plans that propose activities that are cost-beneficial to the National Flood
Mitigation Fund.’’
Subsec. (c)(3). Pub. L. 112–141, § 100225(a)(5)(D)(i), substituted ‘‘Eligible activities under a mitigation plan
may’’ for ‘‘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’’ in introductory provisions.
Pub. L. 112–141, § 100225(a)(5)(B), (C), redesignated par.
(5) as (3) and struck out former par. (3). Prior to amendment, text of par. (3) read as follows: ‘‘The Director
shall approve mitigation plans meeting the requirements for approval under paragraph (1) that will be
most cost-beneficial to the National Flood Mitigation
Fund. The Director may approve only mitigation plans
that give priority for funding to such properties, or to
such subsets of properties, as are in the best interest of
the National Flood Insurance Fund.’’
Subsec. (c)(3)(C). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Subsec. (c)(3)(D). Pub. L. 112–141, § 100225(a)(5)(D)(iv),
added subpar. (D). Former subpar. (D) redesignated (E).
Subsec. (c)(3)(E). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Pub. L. 112–141, § 100225(a)(5)(D)(ii), (iii), redesignated
subpar. (D) as (E) and struck out former subpar. (E)
which read as follows: ‘‘beach nourishment activities;’’.
§ 4104d
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Subsec.
(c)(3)(F),
(G).
Pub.
L.
112–141,
§ 100225(a)(5)(D)(iii), (v), added subpar. (F) and redesignated former subpar. (F) as (G). Former subpar. (G) redesignated (H).
Subsec. (c)(3)(H). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Pub. L. 112–141, § 100225(a)(5)(D)(ii), (iii), redesignated
subpar. (G) as (H) and struck out former subpar. (H)
which read as follows: ‘‘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.’’
Subsec.
(c)(3)(I),
(J).
Pub.
L.
112–141,
§ 100225(a)(5)(D)(vi), (vii), added subpars. (I) and (J).
Subsec. (c)(4). Pub. L. 112–141, § 100225(a)(5)(B), (E),
added par. (4) and struck out former par. (4). Prior to
amendment, text read as follows: ‘‘In providing grants
under this subsection for mitigation activities, the Director shall give first priority for funding to such properties, or to such subsets of such properties as the Director may establish, that the Director determines are
in the best interests of the National Flood Insurance
Fund and for which matching amounts under subsection (f) of this section are available.’’
Subsec. (c)(5). Pub. L. 112–141, § 100225(a)(5)(C), redesignated par. (5) as (3).
Subsec. (c)(6). Pub. L. 112–141, § 100225(a)(5)(E), struck
out par. (6). Text read as follows: ‘‘The Director shall
consider as an eligible activity the demolition and rebuilding of properties to at least base flood levels or
higher, if required by the Director or if required by any
State or local ordinance, and in accordance with
project implementation criteria established by the Director.’’
Subsec. (d). Pub. L. 112–141, § 100225(a)(1), (6), added
subsec. (d) and struck out former subsec. (d) which related to notification of mitigation plan approval and
grant award.
Subsec. (e). Pub. L. 112–141, § 100238(b)(1), substituted
‘‘Administrator’’ for ‘‘Director’’ wherever appearing.
Pub. L. 112–141, § 100225(a)(2), redesignated subsec. (i)
as (e). Former subsec. (e) redesignated (c).
Subsec. (e)(2). Pub. L. 112–141, § 100225(a)(7), substituted ‘‘required under subsection (d)’’ for ‘‘certified
under subsection (g)’’ and ‘‘the amount’’ for ‘‘3 times
the amount’’.
Subsec. (e)(6). Pub. L. 112–95 added par. (6).
Subsec. (f). Pub. L. 112–141, § 100238(b)(1), substituted
‘‘Administrator’’ for ‘‘Director’’.
Pub. L. 112–141, § 100225(a)(8), substituted ‘‘July 6,
2012’’ for ‘‘September 23, 1994’’.
Pub. L. 112–141, § 100225(a)(1), (2), redesignated subsec.
(j) as (f) and struck out former subsec. (f) which related
to limitations on amount of mitigation assistance during any 5-year period.
Subsecs. (g), (h). Pub. L. 112–141, § 100225(a)(1), (9),
added subsecs. (g) and (h) and struck out former subsecs. (g) and (h) which related to the matching requirement for mitigation assistance and oversight of recipients of mitigation assistance, respectively.
Subsecs. (i), (j). Pub. L. 112–141, § 100225(a)(2), redesignated subsecs. (i) and (j) as (e) and (f), respectively.
Subsecs. (k), (m). Pub. L. 112–141, § 100225(a)(1), struck
out subsecs. (k) and (m) which defined ‘‘community’’
for purposes of this section and which related to encouraging and improving participation in the national
flood insurance program, respectively.
2004—Subsec. (b)(2). Pub. L. 108–264, § 103(f), substituted ‘‘7.5 percent of the available funds under this
section’’ for ‘‘$1,500,000’’.
Subsec. (e)(3). Pub. L. 108–264, § 103(a), inserted at end
‘‘The Director may approve only mitigation plans that
give priority for funding to such properties, or to such
subsets of properties, as are in the best interest of the
National Flood Insurance Fund.’’
Subsec. (e)(4). Pub. L. 108–264, § 103(b), added par. (4)
and struck out heading and text of former par. (4). Text
read as follows: ‘‘The Director shall make every effort
to provide mitigation assistance under this section for
Page 5830
mitigation plans proposing activities for repetitive loss
structures and structures that have incurred substantial damage.’’
Subsec. (g)(2), (3). Pub. L. 108–264, § 103(e), added par.
(2) and redesignated former par. (2) as (3).
Subsec. (m). Pub. L. 108–264, § 103(c), added subsec.
(m).
Statutory Notes and Related Subsidiaries
REGULATIONS
Pub. L. 103–325, title V, § 553(b), Sept. 23, 1994, 108
Stat. 2273, required the Director of the Federal Emergency Management Agency to issue regulations no
later than 6 months after Sept. 23, 1994, to carry out
this section.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4104d. National Flood Mitigation Fund
(a) Establishment and availability
The Administrator 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) and shall be available, to the
extent provided in appropriation Acts, for providing assistance under section 4104c of this
title.
(b) Credits
The National Flood Mitigation Fund shall be
credited with—
(1) in each fiscal year, amounts from the National Flood Insurance Fund not to exceed
$90,000,000 and to remain available until expended, of which—
(A) not more than $40,000,000 shall be available pursuant to subsection (a) of this section for assistance described in section
4104c(a)(1) of this title;
(B) not more than $40,000,000 shall be available pursuant to subsection (a) of this section for assistance described in section
4104c(a)(2) of this title; and
(C) not more than $10,000,000 shall be available pursuant to subsection (a) of this section for assistance described in section
4104c(a)(3) of this title;
(2) any penalties collected under section
4012a(f) of this title; and
(3) any amounts recaptured under section
4104c(e) of this title.
(c) Administrative expenses
The Administrator may use not more than 5
percent of amounts made available under sub-
Page 5831
TITLE 42—THE PUBLIC HEALTH AND WELFARE
section (b) to cover salaries, expenses, and other
administrative costs incurred by the Administrator to make grants and provide assistance
under section 4104c of this title.
(d) Prohibition on offsetting collections
Notwithstanding any other provision of this
chapter, amounts made available pursuant to
this section shall not be subject to offsetting
collections through premium rates for flood insurance coverage under this chapter.
(e) Continued availability and reallocation
Any amounts made available pursuant to subparagraph (A), (B), or (C) of subsection (b)(1)
that are not used in any fiscal year shall continue to be available for the purposes specified
in the subparagraph of subsection (b)(1) pursuant to which such amounts were made available,
unless the Administrator determines that reallocation of such unused amounts to meet demonstrated need for other mitigation activities
under section 4104c of this title is in the best interest of the National Flood Insurance Fund.
(f) Investment
If the Administrator determines that the
amounts in the National Flood Mitigation Fund
are in excess of amounts needed under subsection (a), the Administrator may invest any
excess amounts the Administrator determines
advisable in interest-bearing obligations issued
or guaranteed by the United States.
(g) Report
The Administrator 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 2year period thereafter. The report shall describe
the status of the Fund and any activities carried
out with amounts from the Fund.
(Pub. L. 90–448, title XIII, § 1367, as added Pub. L.
103–325, title V, § 554(a), Sept. 23, 1994, 108 Stat.
2273; amended Pub. L. 108–264, title I, § 103(d),
June 30, 2004, 118 Stat. 721; Pub. L. 112–141, div.
F, title II, §§ 100225(e), 100238(b)(1), July 6, 2012,
126 Stat. 941, 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (d), was in the
original a reference to ‘‘this title’’ meaning title XIII
of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
CODIFICATION
September 23, 1994, referred to in subsec. (g), was in
the original ‘‘the date of enactment of this Act’’, which
was translated as meaning the date of enactment of
Pub. L. 103–325, which enacted this section, to reflect
the probable intent of Congress.
AMENDMENTS
2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Subsec. (b)(1). Pub. L. 112–141, § 100225(e)(1)(A), added
par. (1) and struck out former par. (1) which read as follows: ‘‘in each fiscal year, amounts from the National
Flood Insurance Fund not exceeding $40,000,000, to remain available until expended;’’.
§ 4105
Subsec. (b)(3). Pub. L. 112–141, § 100225(e)(1)(B), substituted ‘‘section 4104c(e)’’ for ‘‘section 4104c(i)’’.
Subsec. (c). Pub. L. 112–141, § 100238(b)(1), substituted
‘‘Administrator’’ for ‘‘Director’’ in two places.
Pub. L. 112–141, § 100225(e)(2), substituted ‘‘section
4104c’’ for ‘‘sections 4104c and 4030’’.
Subsecs. (d), (e). Pub. L. 112–141, § 100225(e)(4), added
subsecs. (d) and (e). Former subsecs. (d) and (e) redesignated (f) and (g), respectively.
Subsecs. (f), (g). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ wherever appearing.
Pub. L. 112–141, § 100225(e)(3), redesignated subsecs. (d)
and (e) as (f) and (g), respectively.
2004—Subsec. (b)(1). Pub. L 108–264, § 103(d)(1), added
par. (1) and struck out former par. (1) which read as follows: ‘‘amounts from the National Flood Insurance
Fund, in amounts not exceeding—
‘‘(A) $10,000,000 in the fiscal year ending September
30, 1994;
‘‘(B) $15,000,000 in the fiscal year ending September
30, 1995;
‘‘(C) $20,000,000 in the fiscal year ending September
30, 1996; and
‘‘(D) $20,000,000 in each fiscal year thereafter;’’.
Subsecs. (c) to (e). Pub. L. 108–264, § 103(d)(2), (3),
added subsec. (c) and redesignated former subsecs. (c)
and (d) as (d) and (e), respectively.
Statutory Notes and Related Subsidiaries
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4105. Disaster mitigation requirements; notification to flood-prone areas
(a) Initial notification
Not later than six months following December
31, 1973, the Administrator 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 Administrator
that the community either is not seriously flood
prone or that such flood hazards as may have ex-
§ 4106
TITLE 42—THE PUBLIC HEALTH AND WELFARE
isted have been corrected by flood-works or
other flood control methods. The Administrator
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 Administrator 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 Administrator’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 Administrator concerning the existence of flood
hazards in communities not known to be flood
prone at the time of the initial notification provided for by subsection (a) of this section he
shall provide similar notifications to the chief
executive officers of such additional communities, which shall then be subject to the requirements of subsection (b) of this section.
(d) Provisions of section 4106 applicable to floodprone communities disqualified for flood insurance program
Formally identified flood-prone communities
that do not qualify for the national flood insurance program within one year after such notification or by the date specified in section 4106 of
this title, whichever is later, shall thereafter be
subject to the provisions of that section relating
to flood-prone communities which are not participating in the program.
(e) Administrative procedures; establishment; reimbursement of certain expenses; appropriation authorization
The Administrator 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 Administrator 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
Administrator 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
Administrator in respect to any fee or expense
payment, the payment of which was agreed to be
contingent upon the result of the appeal. There
is authorized to be appropriated for purposes of
implementing this subsection not to exceed
$250,000.
(Pub. L. 93–234, title II, § 201, Dec. 31, 1973, 87
Stat. 982; Pub. L. 95–128, title VII, § 704(d), Oct.
Page 5832
12, 1977, 91 Stat. 1146; Pub. L. 98–181, title I [title
IV, § 451(e)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
98–479, title II, § 204(j), Oct. 17, 1984, 98 Stat. 2233;
Pub. L. 112–141, div. F, title II, § 100238(a), July 6,
2012, 126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This Act, referred to in subsec. (b), means Pub. L.
93–234, Dec. 31, 1973, 87 Stat. 975, as amended, known as
the Flood Disaster Protection Act of 1973. For complete
classification of this Act to the Code, see Short Title of
1973 Amendment note set out under section 4001 of this
title and Tables.
CODIFICATION
Section was enacted as part of the Flood Disaster
Protection Act of 1973, and not as part of the National
Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
2012—Subsecs. (a) to (c), (e). Pub. L. 112–141 substituted ‘‘Administrator’’ for ‘‘Director’’ and ‘‘Administrator’s’’ for ‘‘Director’s’’ wherever appearing.
1984—Subsec. (e). Pub. L. 98–479 struck out quotation
marks before ‘‘$250,000’’.
1983—Subsecs. (a) to (c), (e). Pub. L. 98–181 substituted
‘‘Director’’ for ‘‘Secretary’’ and ‘‘Director’s’’ for ‘‘Secretary’s’’ wherever appearing.
1977—Subsec. (e). Pub. L. 95–128 added subsec. (e).
Statutory Notes and Related Subsidiaries
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4106. Nonparticipation in flood insurance program
(a) Prohibition against Federal approval of financial assistance
No Federal officer or agency shall approve any
financial assistance for acquisition or construction purposes on and after July 1, 1975, for use in
any area that has been identified by the Administrator 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
Page 5833
TITLE 42—THE PUBLIC HEALTH AND WELFARE
section, and each Federal agency lender shall
issue regulations requiring the Federal agency
lender, described in such section to notify (as a
condition of making, increasing, extending, or
renewing any loan secured by property described
in such section) the purchaser or lessee of such
property of whether, in the event of a disaster
caused by flood to such property, Federal disaster relief assistance will be available to such
property.
(Pub. L. 93–234, title II, § 202, Dec. 31, 1973, 87
Stat. 982; Pub. L. 94–50, title III, § 303, July 2,
1975, 89 Stat. 256; Pub. L. 94–198, Dec. 31, 1975, 89
Stat. 1116; Pub. L. 94–375, § 14(a), Aug. 3, 1976, 90
Stat. 1075; Pub. L. 95–128, title VII, § 703(a), Oct.
12, 1977, 91 Stat. 1144; Pub. L. 98–181, title I [title
IV, § 451(e)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
103–325, title V, § 511(b), Sept. 23, 1994, 108 Stat.
2256; Pub. L. 112–141, div. F, title II, § 100238(a)(1),
July 6, 2012, 126 Stat. 958.)
Editorial Notes
CODIFICATION
Section was enacted as part of the Flood Disaster
Protection Act of 1973, and not as part of the National
Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
2012—Subsec. (a). Pub. L. 112–141 substituted ‘‘Administrator’’ for ‘‘Director’’.
1994—Subsec. (b). Pub. L. 103–325 substituted ‘‘Federal
entity for lending regulation shall by regulation require the regulated lending institutions described in
such section, and each Federal agency lender shall
issue regulations requiring the Federal agency lender,’’
for ‘‘Federal instrumentality described in such section
shall by regulation require the institutions’’.
1983—Subsec. (a). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
1977—Subsec. (b). Pub. L. 95–128 substituted provisions respecting notification of purchaser or lessee of
property in flood hazards area of availability of Federal
disaster relief assistance in the event of a flood disaster
for prior provisions relating to: Federal regulations
against loans by financial institutions, unaffected preMarch 1, 1976, residences, small business concerns, improvements under $5,000 and nonresidential farm improvement.
1976—Subsec. (b). Pub. L. 94–375 incorporated provision regarding any loan made prior to March 1, 1976, to
finance the acquisition of a previously occupied residential dwelling into cl. (1) as so designated, added remainder of cl. (1), and cls. (2) to (4).
1975—Subsec. (b). Pub. L. 94–198 substituted ‘‘March 1,
1976’’ for ‘‘January 1, 1976’’.
Pub. L. 94–50 inserted provision excepting from the
prohibition of this section any loan made prior to January 1, 1976, to finance the acquisition of a previously
occupied residential dwelling.
Statutory Notes and Related Subsidiaries
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
§ 4107
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
Executive Documents
FLOODPLAIN MANAGEMENT
For provisions relating to the reduction of the risk of
flood loss, the minimization of the impact of floods on
human safety, health and welfare, and the management
of floodplains, see Ex. Ord. No. 11988, May 24, 1977, 42
F.R. 26951 set out as a note under section 4321 of this
title.
§ 4107. Consultation with local officials; scope
In carrying out his responsibilities under the
provisions of this title 1 and the National Flood
Insurance Act of 1968 [42 U.S.C. 4001 et seq.]
which relate to notification to and identification of flood-prone areas and the application of
criteria for land management and use, including
criteria derived from data reflecting new developments that may indicate the desirability of
modifying elevations based on previous flood
studies, the Administrator 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 undertaken by any agency on behalf of the
Administrator 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 Administrator shall encourage local officials to disseminate information concerning such study widely
within the community, so that interested persons will have an opportunity to bring all relevant facts and technical data concerning the
local flood hazard to the attention of the agency
during the course of the study.
(Pub. L. 93–234, title II, § 206, Dec. 31, 1973, 87
Stat. 983; Pub. L. 98–181, title I [title IV,
§ 451(e)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(a)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This title, referred to in text, means title II of Pub.
L. 93–234, Dec. 31, 1973, 87 Stat. 975, as amended, which
enacted sections 4105 to 4107 and 4128 of this title and
amended section 4101 of this title and sections 24 and
1709–1 of Title 12, Banks and Banking. For complete
classification of this Act to the Code, see Short Title of
1973 Amendment note set out under section 4001 of this
title and Tables.
The National Flood Insurance Act of 1968, referred to
in text, is title XIII of Pub. L. 90–448, Aug. 1, 1968, 82
Stat. 572, as amended, which is classified principally to
this chapter (§ 4001 et seq.). For complete classification
of this Act to the Code, see Short Title note set out
under section 4001 of this title and Tables.
1 See
References in Text note below.
§ 4121
TITLE 42—THE PUBLIC HEALTH AND WELFARE
CODIFICATION
Section was enacted as part of the Flood Disaster
Protection Act of 1973, and not as part of the National
Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’ wherever appearing.
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing.
Statutory Notes and Related Subsidiaries
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
SUBCHAPTER IV—GENERAL PROVISIONS
§ 4121. Definitions
(a) As used in this chapter—
(1) the term ‘‘flood’’ shall have such meaning
as may be prescribed in regulations of the Administrator, 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 organization or person that is authorized to engage in the business of insurance
under the laws of any State, subject to the reporting requirements of the Securities Exchange Act of 1934 [15 U.S.C. 78a et seq.] pursuant to section 13(a) or 15(d) of such Act (15
U.S.C. 78m(a) and 78o(d)), or authorized by the
Administrator to assume reinsurance on risks
insured by the flood insurance program;
(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 ‘‘Administrator’’ means the Administrator of the Federal Emergency Management Agency;
Page 5834
(7) the term ‘‘repetitive loss structure’’
means a structure covered by a contract for
flood insurance that—
(A) has incurred flood-related damage on 2
occasions, in which the cost of repair, on the
average, equaled or exceeded 25 percent of
the value of the structure at the time of
each such flood event; and
(B) at the time of the second incidence of
flood-related damage, the contract for flood
insurance contains increased cost of compliance coverage.1
(8) the term ‘‘Federal agency lender’’ means
a Federal agency that makes direct loans secured by improved real estate or a mobile
home, to the extent such agency acts in such
capacity;
(9) the term ‘‘Federal entity for lending regulation’’ means the Board of Governors of the
Federal Reserve System, the Federal Deposit
Insurance Corporation, the Comptroller of the
Currency, the 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;
(14) the term ‘‘servicer’’ means the person
responsible for receiving any scheduled periodic payments from a borrower pursuant to
the terms of a loan, including amounts for
taxes, insurance premiums, and other charges
with respect to the property securing the loan,
and making the payments of principal and interest and such other payments with respect
to the amounts received from the borrower as
may be required pursuant to the terms of the
loan; and
(15) the term ‘‘substantially damaged structure’’ means a structure covered by a contract
for flood insurance that has incurred damage
for which the cost of repair exceeds an amount
specified in any regulation promulgated by the
Administrator, or by a community ordinance,
whichever is lower.
1 So
in original. The period probably should be a semicolon.
Page 5835
TITLE 42—THE PUBLIC HEALTH AND WELFARE
(b) The term ‘‘flood’’ shall also include inundation from mudslides which are proximately
caused by accumulations of water on or under
the ground; and all of the provisions of this
chapter shall apply with respect to such mudslides in the same manner and to the same extent as with respect to floods described in subsection (a)(1), 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 Administrator may prescribe to
achieve (with respect to such mudslides) the
purposes of this chapter and the objectives of
the program.
(c) The term ‘‘flood’’ shall also include the collapse or subsidence of land along the shore of a
lake or other body of water as a result of erosion
or undermining caused by waves or currents of
water exceeding anticipated cyclical levels, and
all of the provisions of this chapter shall apply
with respect to such collapse or subsidence in
the same manner and to the same extent as with
respect to floods described in subsection (a)(1),
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 Administrator may prescribe to achieve
(with respect to such collapse or subsidence) the
purposes of this chapter and the objectives of
the program.
(Pub. L. 90–448, title XIII, § 1370, Aug. 1, 1968, 82
Stat. 588; Pub. L. 91–152, title IV, § 409(b), Dec. 24,
1969, 83 Stat. 397; Pub. L. 93–234, title I, §§ 107,
108(b), Dec. 31, 1973, 87 Stat. 979, 980; Pub. L.
98–181, title I [title IV, § 451(d)(1), (8)], Nov. 30,
1983, 97 Stat. 1229; Pub. L. 100–628, title X,
§ 1086(b), Nov. 7, 1988, 102 Stat. 3278; Pub. L.
103–325, title V, § 512(a), Sept. 23, 1994, 108 Stat.
2256; Pub. L. 108–264, title I, § 105(b), June 30, 2004,
118 Stat. 723; Pub. L. 112–141, div. F, title II,
§§ 100232(d)(5), 100238(b)(1), (3), July 6, 2012, 126
Stat. 954, 958.)
§ 4121
and 78o(d)), or authorized by the Administrator to assume reinsurance on risks insured by the flood insurance program;’’ for ‘‘include any organizations and persons authorized to engage in the insurance business
under the laws of any State;’’.
Subsec. (a)(6). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ in two places.
Subsec. (a)(9). Pub. L. 112–141, § 100238(b)(3), struck out
‘‘the Office of Thrift Supervision,’’ after ‘‘the Comptroller of the Currency,’’.
Subsecs. (a)(15), (b), (c). Pub. L. 112–141, § 100238(b)(1),
substituted ‘‘Administrator’’ for ‘‘Director’’.
2004—Subsec. (a)(7). Pub. L. 108–264, § 105(b)(1), added
par. (7) and struck out former par. (7) which read as follows: ‘‘the term ‘repetitive loss structure’ means a
structure covered by a contract for flood insurance
under this chapter that has incurred flood-related damage on 2 occasions during a 10-year period ending on the
date of the event for which a second claim is made, in
which the cost of repair, on the average, equaled or exceeded 25 percent of the value of the structure at the
time of each such flood event;’’.
Subsec. (a)(15). Pub. L. 108–264, § 105(b)(2)–(4), added
par. (15).
1994—Subsec. (a)(7) to (14). Pub. L. 103–325 added pars.
(7) to (14).
1988—Subsecs. (b), (c). Pub. L. 100–628 substituted
‘‘subsection (a)(1)’’ for ‘‘paragraph (1)’’.
1983—Subsec. (a)(1). Pub. L. 98–181, § 451(d)(1), substituted ‘‘Director’’ for ‘‘Secretary’’.
Subsec. (a)(6). Pub. L. 98–181, § 451(d)(8), substituted
definition of ‘‘Director’’ as the Director of the Federal
Emergency Management Agency for definition of ‘‘Secretary’’ as the Secretary of Housing and Urban Development.
Subsecs. (b), (c). Pub. L. 98–181, § 451(d)(1), substituted
‘‘Director’’ for ‘‘Secretary’’.
1973—Subsec. (b). Pub. L. 93–234, § 107, inserted ‘‘proximately’’ before ‘‘caused’’.
Subsec. (c). Pub. L. 93–234, § 108(b), added subsec. (c).
1969—Pub. L. 91–152 designated existing provisions as
subsec. (a) and added subsec. (b).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
The Securities Exchange Act of 1934, referred to in
subsec. (a)(3), is act June 6, 1934, ch. 404, 48 Stat. 881,
which is classified principally to chapter 2B (§ 78a et
seq.) of Title 15, Commerce and Trade. For complete
classification of this Act to the Code, see section 78a of
Title 15 and Tables.
AMENDMENTS
2012—Subsec. (a)(1). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’.
Subsec. (a)(3). Pub. L. 112–141, § 100232(d)(5), substituted ‘‘include any organization or person that is authorized to engage in the business of insurance under
the laws of any State, subject to the reporting requirements of the Securities Exchange Act of 1934 pursuant
to section 13(a) or 15(d) of such Act (15 U.S.C. 78m(a)
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
Executive Documents
TERMINATION OF TRUST TERRITORY OF THE PACIFIC
ISLANDS
For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title
48, Territories and Insular Possessions.
§ 4122
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 4122. Studies of other natural disasters; cooperation and consultation with other departments and agencies
(a) The Administrator is authorized to undertake such studies as may be necessary for the
purpose of determining the extent to which insurance protection against earthquakes or any
other natural disaster perils, other than flood, is
not available from public or private sources, and
the feasibility of such insurance protection
being made available.
(b) Studies under this section shall be carried
out, to the maximum extent practicable, with
the cooperation of other Federal departments
and agencies and State and local agencies, and
the Administrator is authorized to consult with,
receive information from, and enter into any
necessary agreements or other arrangements
with such other Federal departments and agencies (on a reimbursement basis) and such State
and local agencies.
(Pub. L. 90–448, title XIII, § 1371, Aug. 1, 1968, 82
Stat. 588; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Page 5836
previously made underpayments or overpayments) in advance or by way of reimbursement,
and in such installments and on such conditions,
as the Administrator may determine.
(Pub. L. 90–448, title XIII, § 1372, Aug. 1, 1968, 82
Stat. 589; Pub. L. 98–181, title I [title IV,
§ 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(b)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’.
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’.
Statutory Notes and Related Subsidiaries
Editorial Notes
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’ in subsecs. (a) and (b).
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ in subsecs. (a) and (b).
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
Statutory Notes and Related Subsidiaries
TRANSFER OF FUNCTIONS
EFFECTIVE DATE
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
STUDY OF SINKHOLE INSURANCE
Pub. L. 98–181, title I [title IV, § 453], Nov. 30, 1983, 97
Stat. 1230, permitted the Director of the Federal Emergency Management Agency to make a grant to a nonprofit organization, educational institution, or State or
local agency to study the feasibility of expanding the
national flood insurance program to cover damage or
loss arising from sinkholes and authorized appropriations.
§ 4123. Advance payments
Any payments under this chapter may be
made (after necessary adjustment on account of
§ 4124. Applicability of fiscal controls
The provisions of chapter 91 of title 31 shall
apply to the program authorized under this
chapter to the same extent as they apply to
wholly owned Government corporations.
(Pub. L. 90–448, title XIII, § 1373, Aug. 1, 1968, 82
Stat. 589; Pub. L. 98–479, title II, § 203(j)(3), Oct.
17, 1984, 98 Stat. 2231.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
Page 5837
TITLE 42—THE PUBLIC HEALTH AND WELFARE
AMENDMENTS
1984—Pub. L. 98–479 substituted ‘‘chapter 91 of title
31’’ for ‘‘the Government Corporation Control Act’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
§ 4125. Finality of certain financial transactions
Notwithstanding the provisions of any other
law—
(1) any financial transaction authorized to
be carried out under this chapter, and
(2) any payment authorized to be made or to
be received in connection with any such financial transaction,
shall be final and conclusive upon all officers of
the Government.
(Pub. L. 90–448, title XIII, § 1374, Aug. 1, 1968, 82
Stat. 589.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in par. (1), was in the original a reference to ‘‘this title’’ meaning title XIII of
Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the
National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note
set out under section 4001 of this title and Tables.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
§ 4126. Administrative expenses
Any administrative expenses which may be
sustained by the Federal Government in carrying out the flood insurance and floodplain
management programs authorized under this
chapter may be paid with amounts from the National Flood Insurance Fund (as provided under
section 4017(a)(4) of this title), subject to approval in appropriations Acts.
(Pub. L. 90–448, title XIII, § 1375, Aug. 1, 1968, 82
Stat. 589; Pub. L. 101–508, title II, § 2302(e)(4),
Nov. 5, 1990, 104 Stat. 1388–25.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
a reference to ‘‘this title’’ meaning title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, known as the National
Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out under
section 4001 of this title and Tables.
§ 4127
may be paid with amounts from the National Flood Insurance Fund (as provided under section 4017(a)(4) of
this title), subject to approval in appropriations Acts’’
for ‘‘program authorized under this chapter may be
paid out of appropriated funds’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
§ 4127. Authorization of appropriations; availability
(a) There are hereby authorized to be appropriated such sums as may from time to time be
necessary to carry out this chapter, including
sums—
(1) to cover administrative expenses authorized under section 4126 of this title;
(2) to reimburse the National Flood Insurance Fund established under section 4017 of
this title for—
(A) premium equalization payments under
section 4054 of this title which have been
made from such fund; and
(B) reinsurance claims paid under the excess loss reinsurance coverage provided
under section 4055 of this title; and
(3) to make such other payments as may be
necessary to carry out the purposes of this
chapter.
(b) All such funds shall be available without
fiscal year limitation.
(c) There are authorized to be appropriated
such sums as may be necessary through the date
specified in section 4026 of this title, for studies
under this chapter.
(Pub. L. 90–448, title XIII, § 1376, Aug. 1, 1968, 82
Stat. 589; Pub. L. 94–375, § 14(c), Aug. 3, 1976, 90
Stat. 1075; Pub. L. 95–128, title VII, § 702, Oct. 12,
1977, 91 Stat. 1144; Pub. L. 95–557, title III, § 309,
Oct. 31, 1978, 92 Stat. 2098; Pub. L. 96–153, title
VI, § 602(c), Dec. 21, 1979, 93 Stat. 1137; Pub. L.
96–399, title III, § 304, Oct. 8, 1980, 94 Stat. 1639;
Pub. L. 97–35, title III, § 341(a), Aug. 13, 1981, 95
Stat. 418; Pub. L. 98–181, title I [title IV, § 451(c)],
Nov. 30, 1983, 97 Stat. 1229; Pub. L. 100–242, title
V, § 543, Feb. 5, 1988, 101 Stat. 1940; Pub. L.
101–137, § 4, Nov. 3, 1989, 103 Stat. 825; Pub. L.
104–204, title III, Sept. 26, 1996, 110 Stat. 2915;
Pub. L. 105–65, title III, Oct. 27, 1997, 111 Stat.
1377; Pub. L. 105–276, title III, Oct. 21, 1998, 112
Stat. 2503; Pub. L. 106–74, title III, Oct. 20, 1999,
113 Stat. 1088; Pub. L. 106–377, § 1(a)(1) [title III],
Oct. 27, 2000, 114 Stat. 1441, 1441A–47; Pub. L.
107–73, title III, Nov. 26, 2001, 115 Stat. 689; Pub.
L. 108–3, § 2(a)(4), Jan. 13, 2003, 117 Stat. 7; Pub.
L. 108–171, § 2(a)(4), Dec. 6, 2003, 117 Stat. 2064;
Pub. L. 108–199, div. H, § 136(a)(4), Jan. 23, 2004,
118 Stat. 442; Pub. L. 108–264, title I, § 101(d), June
30, 2004, 118 Stat. 714.)
Editorial Notes
AMENDMENTS
REFERENCES IN TEXT
1990—Pub. L. 101–508 substituted ‘‘and floodplain
management programs authorized under this chapter
This chapter, referred to in subsecs. (a) and (c), was
in the original a reference to ‘‘this title’’ meaning title
§ 4128
TITLE 42—THE PUBLIC HEALTH AND WELFARE
XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known
as the National Flood Insurance Act of 1968, which is
classified principally to this chapter. For complete
classification of this Act to the Code, see Short Title
note set out under section 4001 of this title and Tables.
AMENDMENTS
2004—Subsec. (c). Pub. L. 108–264 substituted ‘‘through
the date specified in section 4026 of this title, for studies under this chapter.’’ for ‘‘through the date specified
in section 4026 of this title, for studies under this chapter. Any amount appropriated under this subsection
shall remain available until expended.’’
Pub. L. 108–199 made amendment identical to that
made by Pub. L. 108–171. See 2003 Amendment note
below.
2003—Subsec. (c). Pub. L. 108–171 substituted ‘‘the
date specified in section 4026 of this title’’ for ‘‘December 31, 2003’’.
Pub. L. 108–3 substituted ‘‘December 31, 2003’’ for ‘‘December 31, 2002’’.
2001—Subsec. (c). Pub. L. 107–73 substituted ‘‘2002’’ for
‘‘2001’’.
2000—Subsec. (c). Pub. L. 106–377 substituted ‘‘December 31, 2001’’ for ‘‘September 30, 2000’’.
1999—Subsec. (c). Pub. L. 106–74 substituted ‘‘2000’’ for
‘‘1999’’.
1998—Subsec. (c). Pub. L. 105–276 substituted ‘‘1999’’
for ‘‘1998’’.
1997—Subsec. (c). Pub. L. 105–65 substituted ‘‘such
sums as may be necessary through September 30, 1998,
for studies under this chapter’’ for ‘‘for studies under
this chapter not to exceed $36,283,000 for fiscal year
1990, and such sums as may be necessary for fiscal year
1991’’.
1996—Subsec. (c). Pub. L. 104–204, which directed
amendment of first sentence by substituting ‘‘such
sums as may be necessary through September 30, 1997
for studies under this chapter.’’ for ‘‘this subsection’’
and all that follows, could not be executed because
phrase ‘‘this subsection’’ does not appear in first sentence.
1989—Subsec. (c). Pub. L. 101–137 substituted provisions authorizing appropriations of not to exceed
$36,283,000 for fiscal year 1990 and such sums as may be
necessary for fiscal year 1991 for provisions authorizing
appropriations of $37,000,000 for fiscal year 1988, and
$37,000,000 for fiscal year 1989.
1988—Subsec. (c). Pub. L. 100–242 amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as follows: ‘‘There are authorized to be appropriated for
studies under this chapter not to exceed $100,000,000 for
the fiscal year 1977, not to exceed $108,000,000 for the fiscal year 1978, not to exceed $114,000,000 for the fiscal
year 1979, not to exceed $74,000,000 for the fiscal year
1980, not to exceed $61,600,000 for the fiscal year 1981,
not to exceed $42,600,000 for the fiscal year 1982, not to
exceed $49,752,000 for the fiscal year 1984, and such sums
as may be necessary for fiscal year 1985.’’
1983—Subsec. (c). Pub. L. 98–181 inserted ‘‘not to exceed $49,752,000 for the fiscal year 1984, and such sums
as may be necessary for fiscal year 1985’’.
1981—Subsec. (c). Pub. L. 97–35 authorized appropriation of not to exceed $42,600,000 for fiscal year 1982.
1980—Subsec. (c). Pub. L. 96–399 authorized appropriation of not to exceed $61,600,000 for fiscal year 1981.
1979—Subsec. (c). Pub. L. 96–153 authorized appropriation of $74,000,000 for fiscal year 1980.
1978—Subsec. (c). Pub. L. 95–557 substituted ‘‘not to
exceed $108,000,000 for the fiscal year 1978, and not to exceed $114,000,000 for the fiscal year 1979’’ for ‘‘and not to
exceed $108,000,000 for the fiscal year 1978’’.
1977—Subsec. (c). Pub. L. 95–128 authorized appropriation of $108,000,000 for fiscal year 1978.
1976—Subsec. (c). Pub. L. 94–375 added subsec. (c).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108–199 considered to have
taken effect on Dec. 31, 2003, see section 136(b) of div. H
Page 5838
of Pub. L. 108–199, set out as a note under section 4016
of this title.
EFFECTIVE DATE OF 2003 AMENDMENTS
Amendment by Pub. L. 108–171 effective Dec. 31, 2003,
see section 2(b) of Pub. L. 108–171, set out as a note
under section 4016 of this title.
Amendment by Pub. L. 108–3 effective Dec. 31, 2002,
see section 2(b) of Pub. L. 108–3, set out as a note under
section 4016 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of Title 12, Banks and Banking.
EFFECTIVE DATE
Section effective 120 days following Aug. 1, 1968, or
such later date prescribed by the Secretary but in no
event more than 180 days following Aug. 1, 1968, see section 1377 of Pub. L. 90–448, set out as a note under section 4001 of this title.
§ 4128. Rules and regulations
(a) The Administrator 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 Administrator, issue appropriate rules and regulations to govern the carrying out of the agency’s
responsibilities under this Act.
(Pub. L. 93–234, title II, § 205, Dec. 31, 1973, 87
Stat. 983; Pub. L. 98–181, title I [title IV,
§ 451(e)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L.
112–141, div. F, title II, § 100238(a)(1), July 6, 2012,
126 Stat. 958.)
Editorial Notes
REFERENCES IN TEXT
This Act, referred to in text, means Pub. L. 93–234,
Dec. 31, 1973, 87 Stat. 975, as amended, known as the
Flood Disaster Protection Act of 1973. For complete
classification of this Act to the Code, see Short Title of
1973 Amendment note set out under section 4001 of this
title and Tables.
CODIFICATION
Section was enacted as part of the Flood Disaster
Protection Act of 1973, and not as part of the National
Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
2012—Pub. L. 112–141 substituted ‘‘Administrator’’ for
‘‘Director’’ in subsecs (a) and (b).
1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ in subsecs. (a) and (b).
Statutory Notes and Related Subsidiaries
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emer-
Page 5839
TITLE 42—THE PUBLIC HEALTH AND WELFARE
gency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4131
(Pub. L. 112–141, div. F, title II, § 100249, July 6,
2012, 126 Stat. 969.)
Editorial Notes
REFERENCES IN TEXT
This subtitle, referred to in text, is subtitle A
(§§ 100201–100249) of title II of div. F of Pub. L. 112–141,
known as the Biggert-Waters Flood Insurance Reform
Act of 2012. For complete classification of this subtitle
to the Code, see Short Title of 2012 Amendment note
set out under section 4001 of this title and Tables.
CODIFICATION
Executive Documents
FLOODPLAIN MANAGEMENT
For provisions relating to the reduction of the risk of
flood loss, the minimization of the impact of floods on
human safety, health and welfare, and the management
of floodplains, see Ex. Ord. No. 11988, May 24, 1977, 42
F.R. 26951, set out as a note under section 4321 of this
title.
§ 4129. Federal Insurance Administrator; establishment of position
There is hereby established in the Federal
Emergency Management Agency the position of
Federal Insurance Administrator.
(Pub. L. 90–448, title XI, § 1105(a), Aug. 1, 1968, 82
Stat. 567; Pub. L. 96–153, title VI, § 603(a), Dec. 21,
1979, 93 Stat. 1138.)
Editorial Notes
CODIFICATION
Section was formerly classified to section 3533a of
this title.
Section was enacted as part of the Urban Property
Protection and Reinsurance Act of 1968 and also as part
of the Housing and Urban Development Act of 1968, and
not as part of the National Flood Insurance Act of 1968
which comprises this chapter.
AMENDMENTS
1979—Pub. L. 96–153 substituted ‘‘Federal Emergency
Management Agency’’ for ‘‘Department of Housing and
Urban Development’’.
Statutory Notes and Related Subsidiaries
TRANSFER OF FUNCTIONS
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
§ 4130. No cause of action
No cause of action shall exist and no claim
may be brought against the United States for
violation of any notification requirement imposed upon the United States by this subtitle or
any amendment made by this subtitle.
Section was enacted as part of the Biggert-Waters
Flood Insurance Reform Act of 2012, and also as part of
the Moving Ahead for Progress in the 21st Century Act,
also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this
chapter.
§ 4131. Levee certifications
(a) Implementation of Flood Protection Structure Accreditation Task Force
In carrying out section 100226 of Public Law
112–141 (42 U.S.C. 4101 note; 126 Stat. 942), the
Secretary shall—
(1) ensure that at least 1 program activity
carried out for levee systems under the levee
safety and dam safety programs of the Corps
of Engineers provides adequate information to
the Secretary to reach a levee accreditation
decision under section 65.10 of title 44, Code of
Federal Regulations (or successor regulation);
(2) to the maximum extent practicable,
carry out the activities referred to in paragraph (1) in alignment with the schedule established for the national flood insurance program established under chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.); and
(3) in the case of a levee system that is operated and maintained by the Corps of Engineers, to the maximum extent practicable, cooperate with local governments seeking a
levee accreditation decision for the levee to
provide information necessary to support the
accreditation decision in a timely manner.
(b) Accelerated levee system evaluations
(1) In general
On receipt of a request from a non-Federal
interest, the Secretary may carry out a levee
system evaluation of a federally authorized
levee for purposes of the national flood insurance program established under chapter 1 1 of
the National Flood Insurance Act of 1968 (42
U.S.C. 4011 et seq.) if the evaluation will be
carried out earlier than such an evaluation
would be carried out under subsection (a).
(2) Requirements
A levee system evaluation under paragraph
(1) shall—
(A) at a minimum, comply with section
65.10 of title 44, Code of Federal Regulations
(as in effect on June 10, 2014); and
(B) be carried out in accordance with such
procedures as the Secretary, in consultation
with the Administrator of the Federal Emergency Management Agency, may establish.
1 So
in original. Probably should be ‘‘chapter I’’.
§ 4151
TITLE 42—THE PUBLIC HEALTH AND WELFARE
Sec.
(3) Funding
(A) In general
The Secretary may use amounts made
available under section 1962d–16 of this title
to carry out this subsection.
(B) Cost share
The Secretary shall apply the cost share
under section 1962d–16(b) of this title to any
activities carried out under this subsection.
(C) Contributed funds
Notwithstanding subparagraph (B), a nonFederal interest may fund up to 100 percent
of the cost of any activity carried out under
this subsection.
(Pub. L. 113–121, title III, § 3014, June 10, 2014, 128
Stat. 1287; Pub. L. 116–260, div. AA, title I,
§ 142(b), Dec. 27, 2020, 134 Stat. 2653.)
Editorial Notes
REFERENCES IN TEXT
The National Flood Insurance Act of 1968, referred to
in subsecs. (a)(2) and (b)(1), is title XIII of Pub. L.
90–448, Aug. 1, 1968, 82 Stat. 572, which is classified principally to this chapter. Chapter I of the Act is classified
principally to subchapter I (§ 4011 et seq.) of this chapter. For complete classification of this Act to the Code,
see Short Title note set out under section 4001 of this
title and Tables.
CODIFICATION
Section was enacted as part of the Water Resources
Reform and Development Act of 2014, and not as part of
the National Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
2020—Subsec. (a)(1). Pub. L. 116–260, § 142(b)(1)(A), substituted ‘‘for levee systems under the levee safety and
dam safety programs’’ for ‘‘under the inspection of
completed works program’’ and struck out ‘‘and’’ at
end.
Subsec. (a)(2). Pub. L. 116–260, § 142(b)(1)(B), substituted ‘‘the activities referred to in paragraph (1)’’ for
‘‘activities under the inspection of completed works
program of the Corps of Engineers’’, ‘‘chapter I’’ for
‘‘chapter 1’’, and ‘‘; and’’ for period at end.
Subsec. (a)(3). Pub. L. 116–260, § 142(b)(1)(C), added par.
(3).
Subsec. (b)(3)(C). Pub. L. 116–260, § 142(b)(2), added subpar. (C).
Statutory Notes and Related Subsidiaries
DEFINITION OF ‘‘SECRETARY’’
Secretary means the Secretary of the Army, see section 2 of Pub. L. 113–121, set out as a note under section
2201 of Title 33, Navigation and Navigable Waters.
CHAPTER 51—DESIGN AND CONSTRUCTION
OF PUBLIC BUILDINGS TO ACCOMMODATE
PHYSICALLY HANDICAPPED
Sec.
4151.
4152.
4153.
4154.
Page 5840
‘‘Building’’ defined.
Standards for design, construction, and alteration of buildings; Administrator of General Services.
Standards for design, construction, and alteration of buildings; Secretary of Housing and
Urban Development.
Standards for design, construction, and alteration of buildings; Secretary of Defense.
4154a.
4155.
4156.
4157.
Standards for design, construction, and alteration of buildings; United States Postal
Service.
Effective date of standards.
Waiver and modification of standards.
Omitted.
§ 4151. ‘‘Building’’ defined
As used in this chapter, the term ‘‘building’’
means any building or facility (other than (A) a
privately owned residential structure not leased
by the Government for subsidized housing programs and (B) any building or facility on a military installation designed and constructed primarily for use by able bodied military personnel) the intended use for which either will require that such building or facility be accessible
to the public, or may result in the employment
or residence therein of physically handicapped
persons, which building or facility is—
(1) to be constructed or altered by or on behalf of the United States;
(2) to be leased in whole or in part by the
United States after August 12, 1968;
(3) to be financed in whole or in part by a
grant or a loan made by the United States
after August 12, 1968, if such building or facility is subject to standards for design, construction, or alteration issued under authority
of the law authorizing such grant or loan; or
(4) to be constructed under authority of the
National Capital Transportation Act of 1960,
the National Capital Transportation Act of
1965, or title III of the Washington Metropolitan Area Transit Regulation Compact.
(Pub. L. 90–480, § 1, Aug. 12, 1968, 82 Stat. 718;
Pub. L. 91–205, Mar. 5, 1970, 84 Stat. 49; Pub. L.
94–541, title II, § 201(1), Oct. 18, 1976, 90 Stat. 2507.)
Editorial Notes
REFERENCES IN TEXT
The National Capital Transportation Act of 1960, referred to in par. (4), is Pub. L. 86–669, July 14, 1960, 74
Stat. 537, which enacted sections 651, 652, 661 to 665, and
671 of former Title 40, Public Buildings, Property, and
Works, and enacted provisions set out as notes under
section 651 of former Title 40 and which was repealed by
Pub. L. 91–143, § 8(a)(1), Dec. 9, 1969, 83 Stat. 322.
The National Capital Transportation Act of 1965, referred to in par. (4), is Pub. L. 89–173, Sept. 8, 1965, 79
Stat. 663, as amended. Section 1 of the Act, which was
classified to a note under section 681 of former Title 40,
Public Buildings, Property, and Works, was repealed by
Pub. L. 107–217, § 6(b), Aug. 21, 2002, 116 Stat. 1304. Section 2 of the Act, which was classified to section 681 of
former Title 40, has been omitted from the Code. Sections 3 and 4 of the Act, which were classified to sections 682 and 683, respectively, of former Title 40, were
repealed by Pub. L. 91–143, § 8(a)(2), Dec. 9, 1969, 83 Stat.
323. Sections 5(a) (no subsec. (b) was enacted) and 6 of
the Act, which were classified to sections 684 and 685,
respectively, of former Title 40, were repealed by Pub.
L. 107–217, § 6(b), Aug. 21, 2002, 116 Stat. 1304. Section 7
of the Act amended provisions classified to section 662
of former Title 40, which was repealed by Pub. L. 89–774,
§ 5(b), Nov. 6, 1966, 80 Stat. 1353. Section 8 of the Act,
which was classified to a note under section 681 of
former Title 40, has been omitted from the Code.
AMENDMENTS
1976—Pub. L. 94–541 inserted in parenthetical text
‘‘not leased by the Government for subsidized housing
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