Public Law 113-89 - Homeowner Flood Insurance Affordability Act of 2014

PUBLIC LAW 113–89—MAR. 21, 2014

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HOMEOWNER FLOOD INSURANCE
AFFORDABILITY ACT OF 2014

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128 STAT. 1020

PUBLIC LAW 113–89—MAR. 21, 2014

Public Law 113–89
113th Congress
An Act
Mar. 21, 2014
[H.R. 3370]
Homeowner
Flood Insurance
Affordability Act
of 2014.
42 USC 4001
note.

To delay the implementation of certain provisions of the Biggert-Waters Flood
Insurance Reform Act of 2012, and for other purposes.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Homeowner
Flood Insurance Affordability Act of 2014’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

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42 USC 4005.

1.
2.
3.
4.
5.
6.

Short title and table of contents.
Definitions.
Repeal of certain rate increases.
Restoration of grandfathered rates.
Requirements regarding annual rate increases.
Clarification of rates for properties newly mapped into areas with special
flood hazards.
7. Premiums and reports.
8. Annual premium surcharge.
9. Draft affordability framework.
10. Risk transfer.
11. Monthly installment payment for premiums.
12. Optional high-deductible policies for residential properties.
13. Exclusion of detached structures from mandatory purchase requirement.
14. Accounting for flood mitigation activities in estimates of premium rates.
15. Home improvement fairness.
16. Affordability study and report.
17. Flood insurance rate map certification.
18. Funds to reimburse homeowners for successful map appeals.
19. Flood protection systems.
20. Quarterly reports regarding Reserve Fund ratio.
21. Treatment of floodproofed residential basements.
22. Exemption from fees for certain map change requests.
23. Study of voluntary community-based flood insurance options.
24. Designation of flood insurance advocate.
25. Exceptions to escrow requirement for flood insurance payments.
26. Flood mitigation methods for buildings.
27. Mapping of non-structural flood mitigation features.
28. Clear communications.
29. Protection of small businesses, non-profits, houses of worship, and residences.
30. Mapping.
31. Disclosure.

SEC. 2. DEFINITIONS.

For purposes of this title, 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.).

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PUBLIC LAW 113–89—MAR. 21, 2014

128 STAT. 1021

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SEC. 3. REPEAL OF CERTAIN RATE INCREASES.

(a) REPEAL.—
(1) IN GENERAL.—Section 1307(g) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4014(g)) is amended—
(A) by striking paragraphs (1) and (2);
(B) in paragraph (3), by striking ‘‘as a result of the
deliberate choice of the holder of such policy’’ and inserting
‘‘, 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’’; and
(C) by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively.
(2) EFFECTIVE DATE.—The Administrator 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
(Public Law 112–141; 126 Stat. 957).
(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.
(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. 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 collected in excess of the rates required
under the provisions of and amendments made by 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 premium 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 may assume such existing
policy and coverage for the remainder of the term of the policy

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42 USC 4014
note.

Consultation.

Deadline.

Time period.

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PUBLIC LAW 113–89—MAR. 21, 2014

at the chargeable premium rates under such existing policy. Such
rates shall continue with respect to such property until the
implementation of subsection (a).
SEC. 4. RESTORATION OF GRANDFATHERED RATES.

42 USC 4015
note.

(a) IN GENERAL.—Section 1308 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4015) is amended—
(1) by striking subsection (h); and
(2) by redesignating subsection (i) as subsection (h).
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall take effect as if enacted as part of the Biggert-Waters
Flood Insurance Reform Act of 2012 (Public Law 112–141; 126
Stat. 957).
SEC. 5. REQUIREMENTS REGARDING ANNUAL RATE INCREASES.

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Time period.

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Section 1308(e) of the National Flood Insurance Act of 1968
(42 U.S.C. 4015(e)) is amended—
(1) in the matter preceding paragraph (1), by striking ‘‘,
the chargeable risk premium rates for flood insurance under
this title for any properties’’;
(2) in paragraph (1), by inserting ‘‘the chargeable risk premium rates for flood insurance under this title for any properties’’ before ‘‘within any’’;
(3) in paragraph (2), by inserting ‘‘the chargeable risk premium rates for flood insurance under this title for any properties’’ before ‘‘described in’’;
(4) by redesignating paragraphs (1) and (2), as so amended,
as paragraphs (3) and (4), respectively; and
(5) by inserting before paragraph (3), as so redesignated,
the following new paragraphs:
‘‘(1) the chargeable risk premium rate for flood insurance
under this title 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
1307(g); 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 1315(b);
‘‘(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 title for any properties initially rated under section
1307(a)(2) 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
1307(a)(1), shall be increased by an amount that results in
an average of such rate increases for properties within the
risk classification during any 12-month period of not less than
5 percent of the average of the risk premium rates for such
properties within the risk classification upon the commencement of such 12-month period;’’;

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PUBLIC LAW 113–89—MAR. 21, 2014
(6) in paragraph (3) (as so redesignated by
of this section), by striking ‘‘20 percent’’ and
percent’’; and
(7) in paragraph (4) (as so redesignated)
(4) of this section), by striking ‘‘paragraph (1)’’
‘‘paragraph (3)’’.

128 STAT. 1023

paragraph (4)
inserting ‘‘15
by paragraph
and inserting

SEC. 6. CLARIFICATION OF RATES FOR PROPERTIES NEWLY MAPPED
INTO AREAS WITH SPECIAL FLOOD HAZARDS.

Section 1308 of the National Flood Insurance Act of 1968 (42
U.S.C. 4015), as amended by the preceding provisions of this Act,
is further amended by adding at the end the following new subsection:
‘‘(i) RATES FOR PROPERTIES NEWLY MAPPED INTO AREAS WITH
SPECIAL FLOOD HAZARDS.—Notwithstanding subsection (f), the premium rate for flood insurance under this title that is purchased
on or after the date of the enactment of this subsection—
‘‘(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 1307 (42 U.S.C. 4014(a)(1)),
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 1307.’’.
SEC. 7. PREMIUMS AND REPORTS.

Section 1308 of the National Flood Insurance Act of 1968 (42
U.S.C. 4015), as amended by the preceding provisions of this Act,
is further amended by adding at the end the following new subsection:
‘‘(j) PREMIUMS AND REPORTS.—In setting premium risk rates,
in addition to striving to achieve the objectives of this title 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.’’.
SEC. 8. ANNUAL PREMIUM SURCHARGE.

(a) PREMIUM SURCHARGE.—Chapter I of the National Flood
Insurance Act of 1968 (42 U.S.C. 4011 et seq.) is amended by
inserting after section 1308 the following new section:

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‘‘SEC. 1308A. PREMIUM SURCHARGE.

42 USC 4015a.

‘‘(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 the date of the enactment of this section. Such
surcharge shall be in addition to the surcharge under section
1304(b) and any other assessments and surcharges applied to such
coverage.

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PUBLIC LAW 113–89—MAR. 21, 2014

‘‘(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 title for each property covered by flood insurance under this title, other than properties for which premiums
are calculated under subsection (e) or (f) of section 1307 or section
1336 of this Act (42 U.S.C. 4014, 4056) or under section 100230
of the Biggert-Waters Flood Insurance Reform Act of 2012 (42
U.S.C. 4014 note), is not less than the applicable estimated risk
premium rate under section 1307(a)(1) for such property.’’.
(b) DEPOSIT IN RESERVE FUND.—Subsection (c) of section 1310A
of the National Flood Insurance Act of 1968 (42 U.S.C. 4017a)
is amended by adding at the end the following new paragraph:
‘‘(4) DEPOSIT OF PREMIUM SURCHARGES.—The Administrator
shall deposit in the Reserve Fund any surcharges collected
pursuant to section 1308A.’’.

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SEC. 9. DRAFT AFFORDABILITY FRAMEWORK.

(a) IN GENERAL.—The Administrator shall prepare a draft
affordability framework that proposes to address, via programmatic
and regulatory changes, the issues of affordability of flood insurance
sold under the National Flood Insurance Program, including issues
identified in the affordability study required under section 100236
of the Bigger-Waters Flood Insurance Reform Act of 2012 (Public
Law 112–141; 126 Stat. 957).
(b) CRITERIA.—In carrying out the requirements under subsection (a), the Administrator shall consider the following criteria:
(1) Accurate communication to consumers of the flood risk
associated with their properties.
(2) Targeted assistance to flood insurance policy holders
based on their financial ability to continue to participate in
the National Flood Insurance Program.
(3) Individual or community actions to mitigate the risk
of flood or lower the cost of flood insurance.
(4) The impact of increases in risk premium rates on
participation in the National Flood Insurance Program.
(5) The impact flood insurance rate map updates have
on the affordability of flood insurance.
(c) DEADLINE FOR SUBMISSION.—Not later than 18 months after
the date on which the Administrator submits the affordability study
referred to in subsection (a), the Administrator shall submit to
the full Committee on Banking, Housing, and Urban Affairs and
the full Committee on Appropriations of the Senate and the full
Committee on Financial Services and the full Committee on Appropriations of the House of Representatives the draft affordability
framework required under subsection (a).
(d) INTERAGENCY AGREEMENTS.—The Administrator may enter
into an agreement with another Federal agency to—
(1) complete the affordability study referred to in subsection
(a); or

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128 STAT. 1025

(2) prepare the draft affordability framework required
under subsection (a).
(e) RULE OF CONSTRUCTION.—Nothing in this section shall be
construed to provide the Administrator with the authority to provide
assistance to homeowners based on affordability that was not available prior to the enactment of the Biggert-Waters Flood Insurance
Reform Act of 2012 (Public Law 112–141; 126 Stat. 916).
SEC. 10. RISK TRANSFER.

Section 1345 of the National Flood Insurance Act of 1968 (42
U.S.C. 4081) is amended by adding at the end the following new
subsection:
‘‘(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.’’.
SEC. 11. MONTHLY INSTALLMENT PAYMENT FOR PREMIUMS.

(a) IN GENERAL.—Subsection (g) of section 1308 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4015(g)) is amended by
striking ‘‘either annually or in more frequent installments’’ and
inserting ‘‘annually or monthly’’.
(b) IMPLEMENTATION.—The Administrator shall implement the
requirement under section 1308(g) of the National Flood Insurance
Act of 1968, as amended by subsection (a), not later than the
expiration of the 18-month period beginning on the date of the
enactment of this Act.

42 USC 4015
note.

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SEC. 12. OPTIONAL HIGH-DEDUCTIBLE POLICIES FOR RESIDENTIAL
PROPERTIES.

Section 1306 of the National Flood Insurance Act of 1968 (42
U.S.C. 4013) is amended by adding at the end the following new
subsection:
‘‘(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 lossdeductible 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
‘‘(ii) a statement explaining the effect of a lossdeductible and that, in the event of an insured loss,
the insured is responsible out-of-pocket for losses to
the extent of the deductible selected.’’.

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SEC. 13. EXCLUSION OF DETACHED STRUCTURES FROM MANDATORY
PURCHASE REQUIREMENT.

(a) EXCLUSION.—Subsection (c) of section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(c)) is amended by
adding at the end the following new paragraph:
‘‘(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.’’.
(b) RESPA STATEMENT.—Section 5(b) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)) is amended—
(1) in paragraph (14), by inserting before the period at
the end the following: ‘‘, and the following statement: ‘Although
you may not be required to maintain flood insurance on all
structures, you may still wish to do so, and your mortgage
lender may still require you to do so to protect the collateral
securing the mortgage. If you choose to not maintain flood
insurance on a structure, and it floods, you are responsible
for all flood losses relating to that structure.’ ’’; and
(2) by transferring and inserting paragraph (14), as so
amended, after paragraph (13).
SEC. 14. ACCOUNTING FOR FLOOD MITIGATION ACTIVITIES IN ESTIMATES OF PREMIUM RATES.

Subparagraph (A) of section 1307(a)(1) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(A)) is amended to
read as follows:
‘‘(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’’.
SEC. 15. HOME IMPROVEMENT FAIRNESS.

Section 1307(a)(2)(E)(ii) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4014(a)(2)(E)(ii)) is amended by striking ‘‘30
percent’’ and inserting ‘‘50 percent’’.

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SEC. 16. AFFORDABILITY STUDY AND REPORT.

(a) STUDY ISSUES.—Subsection (a) of section 100236 of the
Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law
112–141; 126 Stat. 957) is amended—
(1) in paragraph (3), by striking ‘‘and’’ at the end;
(2) in paragraph (4), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
‘‘(5) options for maintaining affordability if annual premiums for flood insurance coverage were to increase to an
amount greater than 2 percent of the liability coverage amount
under the policy, including options for enhanced mitigation
assistance and means-tested assistance;

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128 STAT. 1027

‘‘(6) the effects that the establishment of catastrophe
savings accounts would have regarding long-term affordability
of flood insurance coverage; and
‘‘(7) options for modifying the surcharge under 1308A,
including based on homeowner income, property value or risk
of loss.’’.
(b) TIMING OF SUBMISSION.—Notwithstanding the deadline
under section 100236(c) of the Biggert-Waters Flood Insurance
Reform Act of 2012 (Public Law 112–141; 126 Stat. 957), not later
than 18 months after the date of enactment of this Act, the Administrator shall submit to the full Committee on Banking, Housing,
and Urban Affairs and the full Committee on Appropriations of
the Senate and the full Committee on Financial Services and the
full Committee on Appropriations of the House of Representatives
the affordability study and report required under such section
100236.
(c) AFFORDABILITY STUDY FUNDING.—Section 100236(d) of the
Biggert-Waters Flood Insurance Reform Act of 2012 (Public Law
112–141; 126 Stat. 957) is amended by striking ‘‘$750,000’’ and
inserting ‘‘$2,500,000’’.

Deadline.

SEC. 17. FLOOD INSURANCE RATE MAP CERTIFICATION.

42 USC 4101d.

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.

Reports.

SEC. 18. FUNDS TO REIMBURSE HOMEOWNERS FOR SUCCESSFUL MAP
APPEALS.

(a) IN GENERAL.—Section 1363(f) of the National Flood Insurance Act of 1968 (42 U.S.C. 4104(f)) is amended—
(1) in the first sentence, by inserting after ‘‘as the case
may be,’’ the following: ‘‘or, in the case of an appeal that
is resolved by submission of conflicting data to the Scientific
Resolution Panel provided for in section 1363A, the community,’’; and
(2) by striking the second sentence and inserting the following: ‘‘The Administrator may use such amounts from the
National Flood Insurance Fund established under section 1310
as may be necessary to carry out this subsection.’’.
(b) CONFORMING AMENDMENTS.—Section 1310(a) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is
amended—
(1) in paragraph (6), by striking ‘‘and’’ at the end;
(2) in paragraph (7), by striking the period at the end
and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(8) for carrying out section 1363(f).’’.
SEC. 19. FLOOD PROTECTION SYSTEMS.

(a) ADEQUATE PROGRESS ON CONSTRUCTION OF FLOOD PROTECSYSTEMS.—Section 1307(e) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4014(e)) is amended—

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TION

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(1) in the first sentence, by inserting ‘‘or reconstruction’’
after ‘‘construction’’;
(2) by amending the second sentence to read as follows:
‘‘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.’’; and
(3) by adding at the end the following: ‘‘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.’’.
(b) COMMUNITIES RESTORING DISACCREDITED FLOOD PROTECTION SYSTEMS.—Section 1307(f) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4014(f)) is amended by amending the first
sentence to read as follows: ‘‘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.’’.

Applicability.

SEC. 20. QUARTERLY REPORTS REGARDING RESERVE FUND RATIO.

Subsection (e) of section 1310A of the National Flood Insurance
Act of 1968 (42 U.S.C. 4017a) is amended, in the matter preceding
paragraph (1), by inserting ‘‘, on a calendar quarterly basis,’’ after
‘‘submit’’.
42 USC 4012a
note.

SEC. 21. TREATMENT OF FLOODPROOFED RESIDENTIAL BASEMENTS.

42 USC 4101e.

SEC. 22. EXEMPTION FROM FEES FOR CERTAIN MAP CHANGE
REQUESTS.

The Administrator 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.

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.

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SEC. 23. STUDY OF VOLUNTARY COMMUNITY-BASED FLOOD INSURANCE OPTIONS.

(a) STUDY.—
(1) STUDY REQUIRED.—The Administrator shall conduct a
study to assess options, methods, and strategies for making

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PUBLIC LAW 113–89—MAR. 21, 2014

128 STAT. 1029

available voluntary community-based flood insurance policies
through the National Flood Insurance Program.
(2) CONSIDERATIONS.—The study conducted under paragraph (1) shall—
(A) take into consideration and analyze how voluntary
community-based flood insurance policies—
(i) would affect communities having varying economic bases, geographic locations, flood hazard
characteristics or classifications, and flood management approaches; and
(ii) could satisfy the applicable requirements under
section 102 of the Flood Disaster Protection Act of
1973 (42 U.S.C. 4012a); and
(B) evaluate the advisability of making available voluntary community-based flood insurance policies to communities, subdivisions of communities, and areas of residual
risk.
(3) CONSULTATION.—In conducting the study required
under paragraph (1), the Administrator may consult with the
Comptroller General of the United States, as the Administrator
determines is appropriate.
(b) REPORT BY THE ADMINISTRATOR.—
(1) REPORT REQUIRED.—Not later than 18 months after
the date of enactment of this Act, the Administrator shall
submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report that contains the
results and conclusions of the study conducted under subsection
(a).
(2) CONTENTS.—The report submitted under paragraph (1)
shall include recommendations for—
(A) the best manner to incorporate voluntary community-based flood insurance policies into the National Flood
Insurance Program; and
(B) a strategy to implement voluntary communitybased flood insurance policies that would encourage
communities to undertake flood mitigation activities,
including the construction, reconstruction, or improvement
of levees, dams, or other flood control structures.
(c) REPORT BY COMPTROLLER GENERAL.—Not later than 6
months after the date on which the Administrator submits the
report required under subsection (b), the Comptroller General of
the United States shall—
(1) review the report submitted by the Administrator; and
(2) submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report that contains—
(A) an analysis of the report submitted by the Administrator;
(B) any comments or recommendations of the Comptroller General relating to the report submitted by the
Administrator; and
(C) any other recommendations of the Comptroller General relating to community-based flood insurance policies.

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128 STAT. 1030
42 USC 4033.

PUBLIC LAW 113–89—MAR. 21, 2014

SEC. 24. 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.

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SEC. 25. EXCEPTIONS TO ESCROW REQUIREMENT FOR FLOOD INSURANCE PAYMENTS.

(a) IN GENERAL.—Section 102(d)(1) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) is amended—
(1) in subparagraph (A), in the second sentence, by striking
‘‘subparagraph (C)’’ and inserting ‘‘subparagraph (B)’’; and
(2) in subparagraph (B)—
(A) in clause (ii), by redesignating subclauses (I) and
(II) as items (aa) and (bb), respectively, and adjusting the
margins accordingly;
(B) by redesignating clauses (i) and (ii) as subclauses
(I) and (II), respectively, and adjusting the margins accordingly;
(C) in the matter preceding subclause (I), as redesignated by subparagraph (B), by striking ‘‘(A) or (B), if—
’’ and inserting the following: ‘‘(A)—
‘‘(i) if—’’;
(D) by striking the period at the end and inserting
‘‘; or’’; and
(E) by adding at the end the following:
‘‘(ii) in the case of a loan that—

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PUBLIC LAW 113–89—MAR. 21, 2014

128 STAT. 1031

‘‘(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.’’.
(b) APPLICABILITY.—
(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
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)

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128 STAT. 1032

PUBLIC LAW 113–89—MAR. 21, 2014
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 BiggertWaters 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.
(2) REPEAL OF 2-YEAR DELAY ON APPLICABILITY.—Subsection
(b) of section 100209 of the Biggert-Waters Flood Insurance
Reform Act of 2012 (Public Law 112–141; 126 Stat. 920) is
repealed.
(3) RULE OF CONSTRUCTION.—Nothing in 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.

Consultation.
Coordination.
Regulation.

42 USC 4012a
note.
42 USC 4012a
note.

SEC. 26. FLOOD MITIGATION METHODS FOR BUILDINGS.

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Deadline.
Time period.
42 USC 4102
note.

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(a) GUIDELINES.—
(1) IN GENERAL.—Section 1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 4102) is amended by adding at
the end the following new subsection:
‘‘(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.’’.
(2) ISSUANCE.—The Administrator 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

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128 STAT. 1033

than the expiration of the 1-year period beginning on the date
of the enactment of this Act.
(b) CALCULATION OF RISK PREMIUM RATES.—Section 1308 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4015), as
amended by the preceding provisions of this Act, is further amended
by adding at the end the following new subsection:
‘‘(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 1361(d) (42 U.S.C.
4102(d)).’’.
SEC. 27. MAPPING OF NON-STRUCTURAL FLOOD MITIGATION FEATURES.

Section 100216 of the Biggert-Waters Flood Insurance Reform
Act of 2012 (42 U.S.C. 4101b) is amended—
(1) in subsection (b)(1)(A)—
(A) in clause (iv), by striking ‘‘and’’ at the end;
(B) by redesignating clause (v) as clause (vi);
(C) by inserting after clause (iv) the following new
clause:
‘‘(v) areas that are protected by non-structural
flood mitigation features; and’’; and
(D) in clause (vi) (as so redesignated), by inserting
before the semicolon at the end the following: ‘‘and by
non-structural flood mitigation features’’; and
(2) in subsection (d)(1)—
(A) by redesignating subparagraphs (A) through (C)
as subparagraphs (B) through (D), respectively;
(B) in subparagraph (C) (as so redesignated), by
striking ‘‘subparagraph (A)’’ and inserting ‘‘subparagraph
(B)’’; and
(C) by inserting before subparagraph (B) (as so redesignated) the following new subparagraph:
‘‘(A) work with States, local communities, and property
owners to identify areas and features described in subsection (b)(1)(A)(v);’’.
SEC. 28. CLEAR COMMUNICATIONS.

Section 1308 of the National Flood Insurance Act of 1968 (42
U.S.C. 4015), as amended by the preceding provisions of this Act,
is further amended by adding at the end the following new subsection:
‘‘(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.’’.

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SEC. 29. PROTECTION OF SMALL BUSINESSES, NON-PROFITS, HOUSES
OF WORSHIP, AND RESIDENCES.

Section 1308 of the National Flood Insurance Act of 1968 (42
U.S.C. 4015), as amended by the preceding provisions of this Act,
is further amended by adding at the end the following new subsection:
‘‘(m) PROTECTION OF SMALL BUSINESSES, NON-PROFITS, HOUSES
OF WORSHIP, AND RESIDENCES.—

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128 STAT. 1034

PUBLIC LAW 113–89—MAR. 21, 2014
‘‘(1) REPORT.—Not later than 18 months after the date
of the enactment of this section 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 1307(a)(2) and the surcharges required under section
1308A 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.’’.

Determination.
Deadline.

SEC. 30. MAPPING.

Notification.

Time period.
Consultation.

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Records.
Time period.

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Section 100216(d)(1) of the Biggert-Waters Flood Insurance
Reform Act of 2012 (42 U.S.C. 4101b(d)(1)), as amended by section
27 of this Act, is further amended—
(1) in subparagraph (C)—
(A) by striking ‘‘subparagraph (B)’’ and inserting
‘‘subparagraph (E)’’; and
(B) by striking ‘‘and’’ at the end;
(2) by redesignating subparagraphs (A), (B), (C), and (D)
as subparagraphs (D), (E), (F), and (H), respectively;
(3) by inserting before subparagraph (D), as so redesignated, the following new subparagraphs:
‘‘(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 30-day 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

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to Administrator that can be used to supplement or modify
the existing data, and incorporate any data that is consistent with prevailing engineering principles;’’; and
(4) by inserting after subparagraph (F), as so redesignated,
the following new subparagraph:
‘‘(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, including how many structures will
be that were not previously located in an area having
special flood hazards will be located within such an
area under the preliminary map; and’’.

Deadline.
Notification.

SEC. 31. DISCLOSURE.

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(a) CHANGES IN RATES RESULTING FROM THIS ACT.—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 resulting from this Act or
any amendment made by this Act is implemented, the Administrator shall make publicly available the rate tables and underwriting guidelines that provide the basis for the change.
(b) REPORT ON POLICY AND CLAIMS DATA.—
(1) IN GENERAL.—Not later than 90 days after the date
of enactment of this Act, the Administrator shall submit to
the Congress a report on the feasibility of—
(A) releasing property-level policy and claims data for
flood insurance coverage under the National Flood Insurance Program; and
(B) establishing guidelines for releasing property-level
policy and claims data for flood insurance coverage under
the National Flood Insurance Program in accordance with
section 552a of title 5, United States Code (commonly
known as the Privacy Act of 1974).
(2) CONTENTS.—The report submitted under paragraph (1)
shall include—
(A) an analysis and assessment of how releasing property-level policy and claims data for flood insurance coverage under the National Flood Insurance Program will
aid policy holders and insurers to understand how the
Administration determines actuarial premium rates and
assesses flood risks; and

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Deadline.
Public
information.
42 USC 4014
note.

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PUBLIC LAW 113–89—MAR. 21, 2014
(B) recommendations for protecting personal information in accordance with section 552a of title 5, United
States Code (commonly known as the Privacy Act of 1974).

Approved March 21, 2014.

LEGISLATIVE HISTORY—H.R. 3370:
CONGRESSIONAL RECORD, Vol. 160 (2014):
Mar. 4, considered and passed House.
Mar. 13, considered and passed Senate.
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Æ

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