[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3121 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 3121
To restore the financial solvency of the national flood insurance
program and to provide for such program to make available multiperil
coverage for damage resulting from windstorms and floods, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 19, 2007
Ms. Waters (for herself, Mr. Taylor, Mr. Jindal, Mr. Al Green of Texas,
and Mr. Frank of Massachusetts) introduced the following bill; which
was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To restore the financial solvency of the national flood insurance
program and to provide for such program to make available multiperil
coverage for damage resulting from windstorms and floods, 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 ``Flood Insurance
Reform and Modernization Act of 2007''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Study regarding status of pre-firm properties and mandatory
purchase requirement for natural 100-year
floodplain and non-federally related loans.
Sec. 4. Phase-in of actuarial rates for nonresidential properties and
non-primary residences.
Sec. 5. Exception to waiting period for effective date of policies.
Sec. 6. Enforcement.
Sec. 7. Multiperil coverage for flood and windstorm.
Sec. 8. Maximum coverage limits.
Sec. 9. Coverage for additional living expenses, basement improvements,
business interruption, and replacement cost
of contents.
Sec. 10. Notification to tenants of availability of contents insurance.
Sec. 11. Increase in annual limitation on premium increases.
Sec. 12. Increase in borrowing authority.
Sec. 13. FEMA participation in State disaster claims mediation
programs.
Sec. 14. FEMA annual report on insurance program.
Sec. 15. Flood insurance outreach grants.
Sec. 16. Grants for direct funding of mitigation activities for
individual repetitive claims properties.
Sec. 17. Extension of pilot program for mitigation of severe repetitive
loss properties.
Sec. 18. Flood mitigation assistance program.
Sec. 19. GAO study of methods to increase flood insurance program
participation by low-income families.
Sec. 20. Notice of availability of flood insurance and escrow in RESPA
good faith estimate.
Sec. 21. Reiteration of FEMA responsibilities under 2004 Reform Act.
Sec. 22. Ongoing modernization of flood maps and elevation standards.
Sec. 23. Notification and appeal of map changes; notification of
establishment of flood elevations.
Sec. 24. Clarification of replacement cost provisions, forms, and
policy language.
Sec. 25. Authorization of additional FEMA staff.
Sec. 26. Extension of deadline for filing proof of loss.
Sec. 27. 5-year extension of program.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
(1) flooding has been shown to occur in all 50 States, the
District of Columbia, and in all territories and possessions of
the United States;
(2) the national flood insurance program (NFIP) is the only
affordable and reliable source of insurance to protect against
flood losses;
(3) the aggregate amount of the flood insurance claims
resulting from Hurricane Katrina, Hurricane Rita, and other
events has exceeded the aggregate amount of all claims
previously paid in the history of the national flood insurance
program, requiring a significant increase in the program's
borrowing authority;
(4) flood insurance policyholders have a legitimate
expectation that they will receive fair and timely compensation
for losses covered under their policies;
(5) substantial flooding has occurred, and will likely
occur again, outside the areas designated by the Federal
Emergency Management Agency (FEMA) as high-risk flood hazard
areas;
(6) properties located in low- to moderate-risk areas are
eligible to purchase flood insurance policies with premiums as
low as $112 a year;
(7) about 450,000 vacation homes, second homes, and
commercial properties are subsidized and are not paying
actuarially sound rates for flood insurance;
(8) phasing out subsidies currently extended to vacation
homes, second homes, and commercial properties would result in
estimated average annual savings to the taxpayers of the United
States and the national flood insurance program of
$335,000,000;
(9) the maximum coverage limits for flood insurance
policies should be increased to reflect inflation and the
increased cost of housing;
(10) significant reforms to the national flood insurance
program required in the Bunning-Bereuter-Blumenauer Flood
Insurance Reform Act of 2004 have yet to be implemented; and
(11) in addition to reforms required in the Bunning-
Bereuter-Blumenauer Flood Insurance Reform Act of 2004, the
national flood insurance program requires a modernized and
updated administrative model to ensure that the program is
solvent and the people of the United States have continued
access to flood insurance.
(b) Purposes.--The purposes of this Act are--
(1) to protect the integrity of the national flood
insurance program by fully funding existing legal obligations
expected by existing policyholders who have paid policy
premiums in return for flood insurance coverage and to pay debt
service on funds borrowed by the NFIP;
(2) to increase incentives for homeowners and communities
to participate in the national flood insurance program and to
improve oversight to ensure better accountability of the NFIP
and FEMA;
(3) to increase awareness of homeowners of flood risks and
improve the quality of information regarding such risks
provided to homeowners; and
(4) to provide for the national flood insurance program to
make available optional multiperil insurance coverage against
loss resulting from physical damage to or loss of real or
personal property arising from any flood or windstorm.
SEC. 3. STUDY REGARDING STATUS OF PRE-FIRM PROPERTIES AND MANDATORY
PURCHASE REQUIREMENT FOR NATURAL 100-YEAR FLOODPLAIN AND
NON-FEDERALLY RELATED LOANS.
(a) In General.--The Comptroller General shall conduct a study as
follows:
(1) Pre-firm properties.--The study shall determine the
status of the national flood insurance program, as of the date
of the enactment of this Act, with respect to the provision of
flood insurance coverage for pre-FIRM properties (as such term
is defined in section 578(b) of the National Flood Insurance
Reform Act of 1994 (42 U.S.C. 4014 note)), which shall include
determinations of--
(A) the number of pre-FIRM properties for which
coverage is provided and the extent of such coverage;
(B) the cost of providing coverage for such pre-
FIRM properties to the national flood insurance
program;
(C) the anticipated rate at which such pre-FIRM
properties will cease to be covered under the program;
and
(D) the effects that implementation of the Bunning-
Bereuter-Blumenauer Flood Insurance Reform Act of 2004
will have on the national flood insurance program
generally and on coverage of pre-FIRM properties under
the program.
(2) Mandatory purchase requirement for natural 100-year
floodplain.--The study shall assess the impact, effectiveness,
and feasibility of amending the provisions of the Flood
Disaster Protection Act of 1973 regarding the properties that
are subject to the mandatory flood insurance coverage purchase
requirements under such Act to extend such requirements to
properties located in any area that would be designated as an
area having special flood hazards but for the existence of a
structural flood protection system, and shall determine--
(A) the regulatory, financial and economic impacts
of extending such mandatory purchase requirements on
the costs of homeownership, the actuarial soundness of
the national flood insurance program, the Federal
Emergency Management Agency, local communities,
insurance companies, and local land use;
(B) the effectiveness of extending such mandatory
purchase requirements in protecting homeowners from
financial loss and in protecting the financial
soundness of the national flood insurance program; and
(C) any impact on lenders of complying with or
enforcing such extended mandatory requirements.
(3) Mandatory purchase requirement for non-federally
related loans.--The study shall assess the impact,
effectiveness, and feasibility of, and basis under the
Constitution of the United States for, amending the provisions
of the Flood Disaster Protection Act of 1973 regarding the
properties that are subject to the mandatory flood insurance
coverage purchase requirements under such Act to extend such
requirements to any property that is located in any area having
special flood hazards and which secures the repayment of a loan
that is not described in paragraph (1), (2), or (3) of section
102(b) of such Act, and shall determine how best to administer
and enforce such a requirement, taking into consideration other
insurance purchase requirements under Federal and State law.
(b) Report.--The Comptroller General shall submit a report to the
Congress regarding the results and conclusions of the study under this
subsection not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act.
SEC. 4. PHASE-IN OF ACTUARIAL RATES FOR NONRESIDENTIAL PROPERTIES AND
NON-PRIMARY RESIDENCES.
(a) In General.--Section 1308(c) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4015(c)) is amended--
(1) by redesignating paragraph (2) as paragraph (4); and
(2) by inserting after paragraph (1) the following new
paragraphs:
``(2) Nonresidential properties.--Any nonresidential
property.
``(3) Non-primary residences.--Any residential property
that is not the primary residence of an individual.''.
(b) Technical Amendments.--Section 1308 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015) is amended--
(1) in subsection (c)--
(A) in the matter preceding paragraph (1), by
striking ``the limitations provided under paragraphs
(1) and (2)'' and inserting ``subsection (e)''; and
(B) in paragraph (1), by striking ``, except'' and
all that follows through ``subsection (e)''; and
(2) in subsection (e), by striking ``paragraph (2) or (3)''
and inserting ``paragraph (4)''.
(c) Effective Date and Transition.--
(1) Effective date.--The amendments made by subsections (a)
and (b) shall apply beginning on January 1, 2011, except as
provided in paragraph (2) of this subsection.
(2) Transition for properties covered by flood insurance
upon effective date.--
(A) Increase of rates over time.--In the case of
any property described in paragraph (2) or (3) of
section 1308(c) of the National Flood Insurance Act of
1968, as amended by subsection (a) of this section,
that, as of the effective date under paragraph (1) of
this subsection, is covered under a policy for flood
insurance made available under the national flood
insurance program for which the chargeable premium
rates are less than the applicable estimated risk
premium rate under section 1307(a)(1) for the area in
which the property is located, the Director of the
Federal Emergency Management Agency shall increase the
chargeable premium rates for such property over time to
such applicable estimated risk premium rate under
section 1307(a)(1).
(B) Annual increase.--Such increase shall be made
by increasing the chargeable premium rates for the
property (after application of any increase in the
premium rates otherwise applicable to such property),
once during the 12-month period that begins upon the
effective date under paragraph (1) of this subsection
and once every 12 months thereafter until such increase
is accomplished, by 15 percent (or such lesser amount
as may be necessary so that the chargeable rate does
not exceed such applicable estimated risk premium rate
or to comply with subparagraph (C)). Any increase in
chargeable premium rates for a property pursuant to
this paragraph shall not be considered for purposes of
the limitation under section 1308(e) of such Act.
(C) Properties subject to phase-in and annual
increases.--In the case of any pre-FIRM property (as
such term is defined in section 578(b) of the National
Flood Insurance Reform Act of 1974), the aggregate
increase, during any 12-month period, in the chargeable
premium rate for the property that is attributable to
this paragraph or to an increase described in section
1308(e) of the National Flood Insurance Act of 1968 may
not exceed the following percentage:
(i) Nonresidential properties.--In the case
of any property described in such section
1308(c)(2), 20 percent.
(ii) Non-primary residences.--In the case
of any property described in such section
1308(c)(3), 25 percent.
(D) Full actuarial rates.--The provisions of
paragraphs (2) and (3) of such section 1308(c) shall
apply to such a property upon the accomplishment of the
increase under this paragraph and thereafter.
SEC. 5. EXCEPTION TO WAITING PERIOD FOR EFFECTIVE DATE OF POLICIES.
Section 1306(c)(2)(A) of the National Flood Insurance Act of 1968
(42 U.S.C. 4013(c)(2)(A)) is amended by inserting before the semicolon
the following: ``or is in connection with the purchase or other
transfer of the property for which the coverage is provided (regardless
of whether a loan is involved in the purchase or transfer transaction),
but only when such initial purchase of coverage is made not later 30
days after such making, increasing, extension, or renewal of the loan
or not later than 30 days after such purchase or other transfer of the
property, as applicable''.
SEC. 6. ENFORCEMENT.
Section 102(f) of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(f)) is amended--
(1) in paragraph (5)--
(A) in the first sentence, by striking ``$350'' and
inserting ``$2,000''; and
(B) in the last sentence, by striking ``$100,000''
and inserting ``$1,000,000; except that such limitation
shall not apply to a regulated lending institution or
enterprise for a calendar year if, in any three (or
more) of the five calendar years immediately preceding
such calendar year, the total amount of penalties
assessed under this subsection against such lending
institution or enterprise was $1,000,000''; and
(2) in paragraph (6), by adding after the period at the end
the following: ``No penalty may be imposed under this
subsection on a regulated lending institution or enterprise
that has made a good faith effort to comply with the
requirements of the provisions referred to in paragraph (2) or
for any non-material violation of such requirements.''.
SEC. 7. MULTIPERIL COVERAGE FOR FLOOD AND WINDSTORM.
(a) In General.--Section 1304 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4011) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection:
``(c) Multiperil Coverage for Damage From Flood or Windstorm.--
``(1) In general.--The national flood insurance program
established pursuant to subsection (a) shall enable the
purchase of optional insurance against loss resulting from
physical damage to or loss of real property or personal
property related thereto located in the United States arising
from any flood or windstorm, subject to the limitations in this
subsection and section 1306(b).
``(2) Community participation requirement.--Multiperil
coverage pursuant to this subsection may not be provided in any
area (or subdivision thereof) unless an appropriate public body
shall have adopted adequate land use and control measures (with
effective enforcement provisions) which the Director finds are
consistent with the comprehensive criteria for land management
and use relating to windstorms establish pursuant to section
1361(d)(2).
``(3) Prohibition against duplicative coverage.--Multiperil
coverage pursuant to this subsection may not be provided with
respect to any structure (or the personal property related
thereto) for any period during which such structure is covered,
at any time, by flood insurance coverage made available under
this title.
``(4) Nature of coverage.--Multiperil coverage pursuant to
this subsection shall--
``(A) cover losses only from physical damage
resulting from flooding or windstorm; and
``(B) provide for approval and payment of claims
under such coverage upon proof that such loss must have
resulted from either windstorm or flooding, but shall
not require for approval and payment of a claim that
the specific cause of the loss, whether windstorm or
flooding, be distinguished or identified.
``(5) Actuarial rates.--Multiperil coverage pursuant to
this subsection shall be made available for purchase for a
property only at chargeable risk premium rates that, based on
consideration of the risks involved and accepted actuarial
principles, and including operating costs and allowance and
administrative expenses, are required in order to make such
coverage available on an actuarial basis for the type and class
of properties covered.
``(6) Terms of coverage.--The Director shall, after
consultation with persons and entities referred to in section
1306(a), provide by regulation for the general terms and
conditions of insurability which shall be applicable to
properties eligible for multiperil coverage under this
subsection, subject to the provisions of this subsection,
including--
``(A) the types, classes, and locations of any such
properties which shall be eligible for such coverage,
which shall include residential and nonresidential
properties;
``(B) subject to paragraph (7), the nature and
limits of loss or damage in any areas (or subdivisions
thereof) which may be covered by such coverage;
``(C) the classification, limitation, and rejection
of any risks which may be advisable;
``(D) appropriate minimum premiums;
``(E) appropriate loss deductibles; and
``(F) any other terms and conditions relating to
insurance coverage or exclusion that may be necessary
to carry out this subsection.
``(7) Limitations on amount of coverage.--The regulations
issued pursuant to paragraph (6) shall provide that the
aggregate liability under multiperil coverage made available
under this subsection shall not exceed the lesser of the
replacement cost for covered losses or the following amounts,
as applicable:
``(A) Residential structures.--In the case of
residential properties--
``(i) for any single-family dwelling,
$500,000; and
``(ii) for any structure containing more
than one dwelling unit, $500,000 for each
separate dwelling unit in the structure; and
``(iii) $150,000 per dwelling unit for--
``(I) any contents related to such
unit; and
``(II) any necessary increases in
living expenses incurred by the insured
when losses from flooding or windstorm
make the residence unfit to live in.
``(B) Nonresidential properties.--In the case of
nonresidential properties (including church
properties)--
``(i) $1,000,000 for any single structure;
and
``(ii) $750,000 for--
``(I) any contents related to such
structure;
``(II) in the case of any
nonresidential property that is a
business property, any losses resulting
from any partial or total interruption
of the insured's business caused by
damage to, or loss of, such property
from flooding or windstorm, except that
for purposes of such coverage, losses
shall be determined based on the
profits the covered business would have
earned, based on previous financial
records, had the flood or windstorm not
occurred.''.
(b) Prohibition Against Duplicative Coverage.--The National Flood
Insurance Act of 1968 is amended by inserting after section 1313 (42
U.S.C. 4020) the following new section;
``prohibition against duplicative coverage
``Sec. 1314. Flood insurance under this title may not be provided
with respect to any structure (or the personal property related
thereto) for any period during which such structure is covered, at any
time, by multiperil insurance coverage made available pursuant to
section 1304(c).''.
(c) Compliance With State and Local Law.--Section 1316 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4023) is amended--
(1) by inserting ``(a) Flood Protection Measures.--''
before ``No new''; and
(2) by adding at the end the following new subsection:
``(b) Windstorm Protection Measures.--No new multiperil coverage
shall be provided under section 1304(c) for any property that the
Director finds has been declared by a duly constituted State or local
zoning authority, or other authorized public body to be in violation of
State or local laws, regulations, or ordinances, which are intended to
reduce damage caused by windstorms.''.
(d) Criteria for Land Management and Use.--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) Windstorms.--
``(1) Studies and investigations.--The Director shall carry
out studies and investigations under this section to determine
appropriate measures in windstorm-prone areas as to land
management and use, windstorm zoning, and windstorm damage
prevention, and may enter into contracts, agreements, and other
appropriate arrangements to carry out such activities. Such
studies and investigations shall include laws, regulations, and
ordinance relating to the orderly development and use of areas
subject to damage from windstorm risks, and zoning building
codes, building permits, and subdivision and other building
restrictions for such areas.
``(2) Criteria.--On the basis of the studies and
investigations pursuant to paragraph (1) and such other
information as may be appropriate, the Direct shall establish
comprehensive criteria designed to encourage, where necessary,
the adoption of adequate State and local measures which, to the
maximum extent feasible, will assist in reducing damage caused
by windstorms.
``(3) Coordination with state and local governments.--The
Director shall work closely with and provide any necessary
technical assistance to State, interstate, and local
governmental agencies, to encourage the application of criteria
established under paragraph (2) and the adoption and
enforcement of measures referred to in such paragraph .''.
(e) Definitions.--Section 1370 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4121) is amended--
(1) in paragraph (14), by striking ``and'' at the end;
(2) in paragraph (15) by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(16) the term `windstorm' means any hurricane, tornado,
cyclone, typhoon, or other wind event.''.
SEC. 8. MAXIMUM COVERAGE LIMITS.
Subsection (b) of section 1306 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4013(b)) is amended--
(1) in paragraph (2), by striking ``$250,000'' and
inserting ``$335,000'';
(2) in paragraph (3), by striking ``$100,000'' and
inserting ``$135,000''; and
(3) in paragraph (4), by striking ``$500,000'' each place
such term appears and inserting ``$670,000''.
SEC. 9. COVERAGE FOR ADDITIONAL LIVING EXPENSES, BASEMENT IMPROVEMENTS,
BUSINESS INTERRUPTION, AND REPLACEMENT COST OF CONTENTS.
Subsection (b) of section 1306 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4013) is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5)--
(A) by inserting ``pursuant to paragraph (2), (3),
or (4)'' after ``any flood insurance coverage''; and
(B) by striking the period at the end and inserting
a semicolon; and
(3) by adding at the end the following new paragraphs:
``(6) in the case of any residential property, each renewal
or new contract for flood insurance coverage shall provide not
less than $1,000 aggregate liability per dwelling unit for any
necessary increases in living expenses incurred by the insured
when losses from a flood make the residence unfit to live in,
which coverage shall be available only at chargeable rates that
are not less than the estimated premium rates for such coverage
determined in accordance with section 1307(a)(1);
``(7) in the case of any residential property, optional
coverage for additional living expenses described in paragraph
(6) shall be made available to every insured upon renewal and
every applicant in excess of the limits provided in paragraph
(6) in such amounts and at such rates as the Director shall
establish, except that such chargeable rates shall not be less
than the estimated premium rates for such coverage determined
in accordance with section 1307(a)(1);
``(8) in the case of any residential property, optional
coverage for losses, resulting from floods, to improvements and
personal property located in basements, crawl spaces, and other
enclosed areas under buildings that are not covered by primary
flood insurance coverage under this title, shall be made
available to every insured upon renewal and every applicant,
except that such coverage shall be made available only at
chargeable rates that are not less than the estimated premium
rates for such coverage determined in accordance with section
1307(a)(1);
``(9) in the case of any commercial property, optional
coverage for losses resulting from any partial or total
interruption of the insured's business caused by damage to, or
loss of, such property from a flood shall be made available to
every insured upon renewal and every applicant, except that--
``(A) for purposes of such coverage, losses shall
be determined based on the profits the covered business
would have earned, based on previous financial records,
had the flood not occurred; and
``(B) such coverage shall be made available only at
chargeable rates that are not less than the estimated
premium rates for such coverage determined in
accordance with section 1307(a)(1); and
``(10) in the case of any residential property and any
commercial property, optional coverage for the full replacement
costs of any contents related to the structure that exceed the
limits of coverage otherwise provided in this subsection shall
be made available to every insured upon renewal and every
applicant, except that such coverage shall be made available
only at chargeable rates that are not less than the estimated
premium rates for such coverage determined in accordance with
section 1307(a)(1).''.
SEC. 10. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS INSURANCE.
The National Flood Insurance Act of 1968 is amended by inserting
after section 1308 (42 U.S.C. 4015) the following new section:
``SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY OF CONTENTS
INSURANCE.
``(a) In General.--The Director shall, upon entering into a
contract for flood insurance coverage under this title for any property
located in an area having special flood hazards--
``(1) provide to the insured sufficient copies of the
notice developed pursuant to subsection (b) to provide for
distribution of a copy of such notice to each tenant of the
property; and
``(2) strongly encourage the insured to provide a copy to
each such tenant and to each new tenant upon commencement of
such a tenancy.
``(b) Notice.--Notice to a tenant of a property in accordance with
this subsection is written notice that clearly informs a tenant--
``(1) that the property is located in an area having
special flood hazards;
``(2) that flood insurance coverage is available under the
national flood insurance program under this title for contents
of the unit or structure leased by the tenant;
``(3) of the maximum amount of such coverage for contents
available under this title at that time; and
``(4) of where to obtain information regarding how to
obtain such coverage, including a telephone number, mailing
address, and location on the World Wide Web of the Director
where such information is available.''.
SEC. 11. INCREASE IN ANNUAL LIMITATION ON PREMIUM INCREASES.
Section 1308(e) of the National Flood Insurance Act of 1968 (42
U.S.C. 4015(e)) is amended by striking ``10 percent'' and inserting
``15 percent''.
SEC. 12. INCREASE IN BORROWING AUTHORITY.
(a) Borrowing Authority.--The first sentence of subsection (a) of
section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C.
4016(a)), as amended by the National Flood Insurance Program Further
Enhanced Borrowing Authority Act of 2005 (Public Law 109-106; 119 Stat.
2288), is amended by striking ``$20,775,000,000'' and inserting
``$21,500,000,000''.
(b) FEMA Report.--Not later than the expiration of the 6-month
period beginning on the date of the enactment of this Act, the Director
of the Federal Emergency Management Agency shall submit a report to the
Congress setting forth a plan for repaying any amounts borrowed
pursuant to increase in borrowing authority authorized under the
amendments made by subsection (a).
SEC. 13. FEMA PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION
PROGRAMS.
Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.) is amended by adding at the end the following new
section:
``SEC. 1325. FEMA PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION
PROGRAMS.
``(a) Requirement to Participate.--In the case of the occurrence of
a natural catastrophe that may have resulted in flood damage covered by
insurance made available under the national flood insurance program and
a loss covered by personal lines residential property insurance policy,
upon 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 Director in
a program sponsored by such State for nonbinding mediation of insurance
claims resulting from a natural catastrophe, the Director shall cause
such representatives to participate in such State program, when claims
under the national flood insurance program are involved, to expedite
settlement of flood damage claims resulting from such catastrophe.
``(b) Extent of Participation.--Participation by representatives of
the Director required under subsection (a) with respect to flood damage
claims resulting from a natural catastrophe shall include--
``(1) providing adjusters certified for purposes of the
national flood insurance program who are authorized to settle
claims against such program resulting from such catastrophe in
amounts up to the limits of policies under such program;
``(2) requiring such adjusters to attend State-sponsored
mediation meetings regarding flood insurance claims resulting
from such catastrophe at times and places as may be arranged by
the State;
``(3) participating in good-faith negotiations toward the
settlement of such claims with policyholders of coverage made
available under the national flood insurance program; and
``(4) finalizing the settlement of such claims on behalf of
the national flood insurance program with such policyholders.
``(c) Coordination.--Representatives of the Director who
participate pursuant to this section in a State-sponsored mediation
program with respect to a natural catastrophe shall at all times
coordinate their activities with insurance officials of the State and
representatives of insurers for the purpose of consolidating and
expediting the settlement of claims under the national flood insurance
program resulting from such catastrophe at the earliest possible time.
``(d) Mediation Proceedings and Privileged Documents.--As a
condition of the participation of Representatives of the Director
pursuant to this section in State-sponsored mediation, all statements
made and documents produced pursuant to such mediation involving
representatives of the Director shall be deemed privileged and
confidential settlement negotiations made in anticipation of
litigation.
``(e) Effect of Participation on Liability, Right, and
Obligations.--Participation of Representatives of the Director pursuant
to this section in State-sponsored mediation shall not affect or expand
the liability of any party in contract or in tort, nor shall it affect
the rights or obligations of the parties as provided in the Standard
Flood Insurance Policy under the national flood insurance program,
regulations of the Federal Emergency Management Agency, this Act, or
Federal common law.
``(f) Exclusive Federal Jurisdiction.--Participation of
Representatives of the Director pursuant to this section in State-
sponsored mediation shall not alter, change or modify the original
exclusive jurisdiction of United States courts as provided in this Act.
``(g) Cost Limitation.--Nothing in this section shall be construed
to require the Director or representatives of the Director to pay
additional mediation fees relating to flood claims associated with a
State-sponsored mediation program in which representatives of the
Director participate.
``(h) Exception.--In the case of the occurrence of a natural
catastrophe that results in flood damage claims under the national
flood insurance program and 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 pursuant to section 205 of the Bunning-
Bereueter-Blumenauer Flood Insurance Reform Act of 2004 (Public
Law 108-264; 118 Stat. 726) and regulations issued pursuant to
such section shall apply exclusively.
``(i) Representatives of Director.--For purposes of this section,
the term `representatives of the Director' means representatives of the
national flood insurance program who participate in the appeals process
established pursuant to section 205 of the Bunning-Bereueter-Blumenauer
Flood Insurance Reform Act of 2004 (Public Law 108-264; 118 Stat. 726)
and regulations issued pursuant to such section.''.
SEC. 14. FEMA ANNUAL REPORT ON INSURANCE PROGRAM.
Section 1320 of the National Flood Insurance Act of 1968 (42 U.S.C.
4027) is amended--
(1) in the section heading, by striking ``report to the
president'' and inserting ``annual report to congress'';
(2) in subsection (a)--
(A) by striking ``biennially'';
(B) by striking ``the President for submission
to''; and
(C) by inserting ``not later than June 30 of each
year'' before the period at the end;
(3) in subsection (b), by striking ``biennial'' and
inserting ``annual''; and
(4) by adding at the end the following new subsection:
``(c) Financial Status of Program.--The report under this section
for each year shall include information regarding the financial status
of the national flood insurance program under this title, including a
description of the financial status of the National Flood Insurance
Fund and current and projected levels of claims, premium receipts,
expenses, and borrowing under the program.''.
SEC. 15. FLOOD INSURANCE OUTREACH GRANTS.
Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.), as amended by the preceding provisions of this Act, is
further amended by adding at the end the following new section:
``SEC. 1326. GRANTS FOR OUTREACH TO PROPERTY OWNERS AND RENTERS.
``(a) In General.--The Director may, to the extent amounts are made
available pursuant to subsection (h), make grants to local governmental
agencies responsible for floodplain management activities (including
such agencies of Indians tribes, as such term is defined in section 4
of the Native American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4103)) in communities that participate in the national
flood insurance program under this title, for use by such agencies to
carry out outreach activities to encourage and facilitate the purchase
of flood insurance protection under this Act by owners and renters of
properties in such communities and to promote educational activities
that increase awareness of flood risk reduction.
``(b) Outreach Activities.--Amounts from a grant under this section
shall be used only for activities designed to--
``(1) identify owners and renters of properties in
communities that participate in the national flood insurance
program, including owners of residential and commercial
properties;
``(2) notify such owners and renters when their properties
become included in, or when they are excluded from, an area
having special flood hazards and the effect of such inclusion
or exclusion on the applicability of the mandatory flood
insurance purchase requirement under section 102 of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a) to such
properties;
``(3) educate such owners and renters 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;
``(4) educate such owners and renters regarding the
benefits and costs of maintaining or acquiring flood insurance,
including, where applicable, lower-cost preferred risk policies
under this title for such properties and the contents of such
properties; and
``(5) encouraging such owners and renters to maintain or
acquire such coverage.
``(c) Cost Sharing Requirement.--
``(1) In general.--In any fiscal year, the Director may not
provide a grant under this section to a local governmental
agency in an amount exceeding 3 times the amount that the
agency certifies, as the Director shall require, that the
agency will contribute from non-Federal funds to be used with
grant amounts only for carrying out activities described in
subsection (b).
``(2) Non-federal funds.--For purposes of this subsection,
the term `non-Federal funds' includes State or local government
agency amounts, in-kind contributions, any salary paid to staff
to carry out the eligible activities of the grant recipient,
the value of the time and services contributed by volunteers to
carry out such services (at a rate determined by the Director),
and the value of any donated material or building and the value
of any lease on a building.
``(d) Administrative Cost Limitation.--Notwithstanding subsection
(b), the Director may use not more than 5 percent of amounts made
available under subsection (g) to cover salaries, expenses, and other
administrative costs incurred by the Director in making grants and
provide assistance under this section.
``(e) Application and Selection.--
``(1) In general.--The Director shall provide for local
governmental agencies described in subsection (a) to submit
applications for grants under this section and for competitive
selection, based on criteria established by the Director, of
agencies submitting such applications to receive such grants.
``(2) Selection considerations.--In selecting applications
of local government agencies to receive grants under paragraph
(1), the Director shall consider--
``(A) the existence of a cooperative technical
partner agreement between the local governmental agency
and the Federal Emergency Management Agency;
``(B) the history of flood losses in the relevant
area that have occurred to properties, both inside and
outside the special flood hazards zones, which are not
covered by flood insurance coverage;
``(C) the estimated percentage of high-risk
properties located in the relevant area that are not
covered by flood insurance;
``(D) demonstrated success of the local
governmental agency in generating voluntary purchase of
flood insurance; and
``(E) demonstrated technical capacity of the local
governmental agency for outreach to individual property
owners.
``(f) Direct Outreach by FEMA.--In each fiscal year that amounts
for grants are made available pursuant to subsection (h), the Director
may use not more than 50 percent of such amounts to carry out, and to
enter into contracts with other entities to carry out, activities
described in subsection (b) in areas that the Director determines have
the most immediate need for such activities.
``(g) Reporting.--Each local government agency that receives a
grant under this section, and each entity that receives amounts
pursuant to subsection (f), shall submit a report to the Director, not
later than 12 months after such amounts are first received, which shall
include such information as the Director considers appropriate to
describe the activities conducted using such amounts and the effect of
such activities on the retention or acquisition of flood insurance
coverage.
``(h) Authorization of Appropriations.--There is authorized to be
appropriated for grants under this section $50,000,000 for each of
fiscal years 2008 through 2012.''.
SEC. 16. GRANTS FOR DIRECT FUNDING OF MITIGATION ACTIVITIES FOR
INDIVIDUAL REPETITIVE CLAIMS PROPERTIES.
(a) Direct Grants to Owners.--Section 1323 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4030) is amended--
(1) in the section heading, by inserting ``direct'' before
``grants''; and
(2) in the matter in subsection (a) that precedes paragraph
(1)--
(A) by inserting ``, to owners of such
properties,'' before ``for mitigation actions''; and
(B) by striking ``1'' and inserting ``two''.
(b) Availability of Funds.--Paragraph (9) of section 1310(a) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended by
inserting ``which shall remain available until expended,'' after ``and
fiscal year,''.
SEC. 17. EXTENSION OF PILOT PROGRAM FOR MITIGATION OF SEVERE REPETITIVE
LOSS PROPERTIES.
Section 1361A of the National Flood Insurance Act of 1968 (42
U.S.C. 4102a) is amended--
(1) in subsection (k)(1), by striking ``2005, 2006, 2007,
2008, and 2009'' and inserting ``2008, 2009, 2010, 2011, and
2012''; and
(2) by striking subsection (l).
SEC. 18. FLOOD MITIGATION ASSISTANCE PROGRAM.
(a) Eligibility of Property Demolition and Rebuilding.--Section
1366(e)(5)(B) of the National Flood Insurance Act of 1968 (42 U.S.C.
4104c(e)(5)(B)) is amended by striking ``or floodproofing'' and
inserting ``floodproofing, or demolition and rebuilding''.
(b) Elimination of Limitations on Aggregate Amount of Assistance.--
Section 1366 of the National Flood Insurance Act of 1968 is amended by
striking subsection (f).
(c) Source of Funds.--Subsection (a) of section 1367 of the
National Flood Insurance Act of 1968 (42 U.S.C. 4104d(a)) is amended by
adding at the end the following new sentence: ``Notwithstanding any
other provision of this title, amounts made available pursuant to this
subsection shall not be subject to offsetting collections through
premium rates for flood insurance coverage under this title.''.
(d) Technical Amendments.--Section 1366 of the National Flood
Insurance Act of 1968 is amended--
(1) by striking ``subsection (g)'' each place such term
appears in subsections (h) and (i)(2) and inserting
``subsection (f)''; and
(2) by redesignating subsections (g) through (k) as
subsections (f) through (j), respectively.
SEC. 19. GAO STUDY OF METHODS TO INCREASE FLOOD INSURANCE PROGRAM
PARTICIPATION BY LOW-INCOME FAMILIES.
(a) In General.--The Comptroller General of the United States shall
conduct a study to identify and analyze potential methods, practices,
and incentives that would increase the extent to which low-income
families (as such term is defined in section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b))) that own residential
properties located within areas having special flood hazards purchase
flood insurance coverage for such properties under the national flood
insurance program. In conducting the study, the Comptroller General
shall analyze the effectiveness and costs of the various methods,
practices, and incentives identified, including their effects on the
national flood insurance program.
(b) Report.--The Comptroller General shall submit to the Congress a
report setting forth the conclusions of the study under this section
not later than 12 months after the date of the enactment of this Act.
SEC. 20. NOTICE OF AVAILABILITY OF FLOOD INSURANCE AND ESCROW IN RESPA
GOOD FAITH ESTIMATE.
Subsection (c) of section 5 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2604(c)) is amended by adding at the
end the following new sentence: ``Each such good faith estimate shall
include the following conspicuous statements and information: (1) that
flood insurance coverage for residential real estate is generally
available under the national flood insurance program whether or not the
real estate is located in an area having special flood hazards and
that, to obtain such coverage, a home owner or purchaser should contact
the national flood insurance program; (2) a telephone number and a
location on the World Wide Web by which a home owner or purchaser can
contact the national flood insurance program; and (3) that the
escrowing of flood insurance payments is required for many loans under
section 102(d) of the Flood Disaster Protection Act of 1973, and may be
a convenient and available option with respect to other loans.''.
SEC. 21. REITERATION OF FEMA RESPONSIBILITIES UNDER 2004 REFORM ACT.
(a) Appeals Process.--As directed in section 205 of the Bunning-
Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011
note), the Director of the Federal Emergency Management Agency is again
directed to, not later than 90 days after the date of the enactment of
this Act, 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 as required by such section.
(b) Minimum Training and Education Requirements.--The Director of
the Federal Emergency Management Agency is directed to continue to work
with the insurance industry, State insurance regulators, and other
interested parties to implement the minimum training and education
standards for all insurance agents who sell flood insurance policies
that were established by the Director under the notice published
September 1, 2005 (70 Fed. Reg. 52117) pursuant to section 207 of the
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (42
U.S.C. 4011 note).
(c) Report.--Not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act, the Director of the
Federal Emergency Management Agency shall submit a report to the
Congress describing the implementation of each provision of the
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (Public
Law 108-264) and identifying each regulation, order, notice, and other
material issued by the Director in implementing each such provision.
SEC. 22. ONGOING MODERNIZATION OF FLOOD MAPS AND ELEVATION STANDARDS.
(a) Ongoing Flood Mapping Program.--Section 1360 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4101) is amended by adding at
the end the following new subsection:
``(k) Ongoing Program To Review, Update, and Maintain Flood
Insurance Program Maps.--
``(1) In general.--The Director, in coordination with the
Technical Mapping Advisory Council established pursuant to
section 576 of the National Flood Insurance Reform Act of 1994
(42 U.S.C. 4101 note) and section 22(b) of the Flood Insurance
Reform and Modernization Act of 2007, shall establish an
ongoing program under which the Director shall review, update,
and maintain national flood insurance program rate maps in
accordance with this subsection.
``(2) Inclusions.--
``(A) Covered areas.--Each map updated under this
subsection shall include a depiction of--
``(i) the 500-year floodplain;
``(ii) areas that could be inundated as a
result of the failure of a levee, as determined
by the Director; and
``(iii) areas that could be inundated as a
result of the failure of a dam, as identified
under the National Dam Safety Program Act (33
U.S.C. 467 et seq.).
``(B) Other inclusions.--In updating maps under
this subsection, the Director may include--
``(i) 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;
``(ii) any relevant information of the
Geographical Service on stream flows, watershed
characteristics, and topography that is useful
in the identification of flood hazard areas, as
determined by the Director; and
``(iii) a description of any hazard that
might impact flooding, including, as determined
by the Director--
``(I) land subsidence and coastal
erosion areas;
``(II) sediment flow areas;
``(III) mud flow areas;
``(IV) ice jam areas; and
``(V) areas on coasts and inland
that are subject to the failure of
structural protective works, such as
levees, dams, and floodwalls.
``(3) Standards.--In updating and maintaining maps under
this subsection, the Director shall 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;
``(B) facilitate the Director, in conjunction with
State and local governments, to identify and use
consistent methods of data collection and analysis in
developing maps for communities with similar flood
risks, as determined by the Director; and
``(C) ensure that emerging weather forecasting
technology is used, where practicable, in flood map
evaluations and the identification of potential risk
areas.
``(4) Hurricanes katrina and rita mapping priority.--In
updating and maintaining maps under this subsection, the
Director shall--
``(A) give priority to the updating and maintenance
of maps of coastal areas affected by Hurricane Katrina
or Hurricane Rita to provide guidance with respect to
hurricane recovery efforts; and
``(B) use the process of updating and maintaining
maps under subparagraph (A) as a model for updating and
maintaining other maps.
``(5) Education program.--The Director shall, after each
update to a flood insurance program rate map, in consultation
with the chief executive officer of each community affected by
the update, conduct a program to educate each such community
about the update to the flood insurance program rate map and
the effects of the update.
``(6) Annual report.--Not later than June 30 of each year,
the Director shall submit a report to the Congress describing,
for the preceding 12-month period, the activities of the
Director under the program under this section and the reviews
and updates of flood insurance program rate maps conducted
under the program. Each such annual report shall contain the
most recent report of the Technical Mapping Advisory Council
pursuant to section 576(c)(3) of the National Flood Insurance
Reform Act of 1994 (42 U.S.C. 4101 note).
``(7) Authorization of appropriations.--There is authorized
to be appropriated to the Director to carry out this subsection
$400,000,000 for each of fiscal years 2008 through 2013.''.
(b) Reestablishment of Technical Mapping Advisory Council for
Ongoing Mapping Program.--
(1) Reestablishment.--There is reestablished the Technical
Mapping Advisory Council, in accordance with this subsection
and section 576 of the National Flood Insurance Reform Act of
1994 (42 U.S.C. 4101 note).
(2) Membership.--Paragraph (1) of section 576(b) of the
National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101
note) is amended--
(A) in the matter preceding subparagraph (A), by
striking ``10'' and inserting ``14'';
(B) by redesignating subparagraphs (E), (F), (G),
(H), (I), and (J) as subparagraphs (F), (G), (H), (K),
(M), and (N), respectively;
(C) by inserting after subparagraph (D) the
following new subparagraph:
``(E) a representative of the Corps of Engineers of
the United States Army;'';
(D) by inserting after subparagraph (H) (as so
redesignated by subparagraph (B) of this paragraph) the
following new subparagraphs:
``(I) a representative of local or regional flood
and stormwater agencies;
``(J) a representative of State geographic
information coordinators;''; and
(E) by inserting after subparagraph (K) (as so
redesignated by subparagraph (A) of this paragraph) the
following new subparagraph:
``(L) a representative of flood insurance servicing
companies;''.
(3) Terms of members and appointment.--Section 576(b) of
the National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101
note) is amended by adding at the end the following new
paragraph:
``(3) Terms of members.--
``(A) In general.--Each member of the Council
pursuant to any of subparagraphs (B) through (N) of
paragraph (1) shall be appointed for a term of 5 years,
except as provided in subparagraphs (B) and (C).
``(B) Terms of initial appointees.--As designated
by the Director (or the designee of the Director) at
the time of appointment, of the members of the Council
first appointed pursuant to subparagraph (D)--
``(i) 4 shall be appointed for a term of 1
year;
``(ii) 4 shall be appointed for a term of 3
years; and
``(iii) 5 shall be appointed for a term of
5 years.
``(C) Vacancies.--Any member of the Council
appointed to fill a vacancy occurring before the
expiration of the term for which the member's
predecessor was appointed shall be appointed only for
the remainder of that term. A member may serve after
the expiration of that member's term until a successor
has taken office. A vacancy in the Council shall be
filled in the manner in which the original appointment
was made.
``(D) Initial appointment.--The Director, or the
Director's designee, shall take action as soon as
possible after the date of the enactment of the Flood
Insurance Reform and Modernization Act of 2007 to
appoint the members of the Council pursuant to this
subsection.''.
(4) Duties.--Subsection (c) of section 576 of the National
Flood Insurance Reform Act of 1994 (42 U.S.C. 4101 note) is
amended to read as follows:
``(c) Duties.--The Council shall--
``(1) make recommendations to the Director for improvements
to the flood map modernization program under section 1360(k) of
the National Flood Insurance Act of 1968 (42 U.S.C. 41010(k));
``(2) make recommendations to the Director for maintaining
a modernized inventory of flood hazard maps and information;
and
``(3) submit an annual report to the Director that contains
a description of the activities and recommendations of the
Council.''.
(5) Elimination of termination.--Section 576 of the
National Flood Insurance Reform Act of 1994 (42 U.S.C. 4101
note) is amended by striking subsection (k) and inserting the
following new subsection:
``(k) Continued Existence.--Section 14(a)(2)(B) of the Federal
Advisory Committee Act (5 U.S.C. App.; relating to termination of
advisory committees) shall not apply to the Council.''.
(c) Post-Disaster Flood Elevation Determinations.--Section 1360 of
the National Flood Insurance Act of 1968 (42 U.S.C. 4101), as amended
by the preceding provisions of this Act, is further amended by adding
at the end the following new subsection:
``(l) Interim Post-Disaster Flood Elevations.--
``(1) Authority.--Notwithstanding any other provision of
this section or section 1363, the Director may, after any
flood-related disaster, establish by order interim flood
elevation requirements for purposes of the national flood
insurance program for any areas affected by such flood-related
disaster.
``(2) Effectiveness.--Such interim elevation requirements
for such an area shall take effect immediately upon issuance
and may remain in effect until the Director establishes new
flood elevations for such area in accordance with section 1363
or the Director provides otherwise.''.
SEC. 23. NOTIFICATION AND APPEAL OF MAP CHANGES; NOTIFICATION OF
ESTABLISHMENT OF FLOOD ELEVATIONS.
Section 1363 of the National Flood Insurance Act of 1968 (42 U.S.C.
4104) is amended by striking the section designation and all that
follows through the end of subsection (a) and inserting the following:
``Sec. 1363. (a) In establishing projected flood elevations for
land use purposes with respect to any community pursuant to section
1361, the Director shall first propose such determinations--
``(1) by providing the chief executive officer of each
community affected by the proposed elevations, by certified
mail, with a return receipt requested, notice of the
elevations, including a copy of the maps for the elevations for
such community and a statement explaining the process under
this section to appeal for changes in such elevations;
``(2) by causing notice of such elevations to be published
in the Federal Register, which notice shall include information
sufficient to identify the elevation determinations and the
communities affected, information explaining how to obtain
copies of the elevations, and a statement explaining the
process under this section to appeal for changes in the
elevations; and
``(3) by publishing in a prominent local newspaper the
elevations, a description of the appeals process for flood
determinations, and the mailing address and telephone number of
a person the owner may contact for more information or to
initiate an appeal.''.
SEC. 24. CLARIFICATION OF REPLACEMENT COST PROVISIONS, FORMS, AND
POLICY LANGUAGE.
Not later than the expiration of the 3-month period beginning on
the date of the enactment of this Act, the Director of the Federal
Emergency Management Agency shall--
(1) in plain language using easy to understand terms and
concepts, issue regulations, and revise any materials made
available by such Agency, to clarify the applicability of
replacement cost coverage under the national flood insurance
program;
(2) in plain language using easy to understand terms and
concepts, revise any regulations, forms, notices, guidance, and
publications relating to the full cost of repair or replacement
under the replacement cost coverage to more clearly describe
such coverage to flood insurance policyholders and information
to be provided by such policyholders relating to such coverage,
and to avoid providing misleading information to such
policyholders;
(3) revise the language in standard flood insurance
policies under such program regarding rating and coverage
descriptions in a manner that is consistent with language used
widely in other homeowners and property and casualty insurance
policies, including such language regarding classification of
buildings, basements, crawl spaces, detached garages,
enclosures below elevated buildings, and replacement costs; and
(4) include in each standard flood insurance policy a one-
page description of the policy using plain language and easy to
understand terms and concepts.
SEC. 25. AUTHORIZATION OF ADDITIONAL FEMA STAFF.
Notwithstanding any other provision of law, the Director of the
Federal Emergency Management Agency may employ such additional staff as
may be necessary to carry out all of the responsibilities of the
Director pursuant to this Act and the amendments made by this Act.
There are authorized to be appropriated to Director such sums as may be
necessary for costs of employing such additional staff.
SEC. 26. EXTENSION OF DEADLINE FOR FILING PROOF OF LOSS.
(a) In General.--Section 1312 of the National Flood Insurance Act
of 1968 (42 U.S.C. 4019) is amended--
(1) by inserting ``(a) Payment.--'' before ``The
Director''; and
(2) by adding at the end the following new subsection:
``(b) Filing Deadline for Proof of Loss.--
``(1) In general.--In establishing any requirements
regarding notification, proof, or approval of claims for damage
to or loss of property which is covered by flood insurance made
available under this title, the Director may not require an
insured to notify the Director of such damage or loss, submit a
claim for such damage or loss, or certify to or submit proof of
such damage or loss, before the expiration of the 180-day
period that begins on the date that such damage or loss
occurred.
``(2) Exceptions.--Notwithstanding any deadline established
in accordance with paragraph (1), the Director may not deny a
claim for damage or loss described in such paragraph solely for
failure to meet such deadline if the insured demonstrates any
good cause for such failure.''.
(b) Applicability.--Subsection (b) of section 1312 of the National
Flood Insurance Act of 1968, as added by subsection (a)(2) of this
section, shall apply with respect to any claim under which the damage
to or loss of property occurred on or after the date of the enactment
of this Act.
SEC. 27. 5-YEAR EXTENSION OF PROGRAM.
Section 1319 of the National Flood Insurance Act of 1968 (42 U.S.C.
4026) is amended by striking ``September 30, 2008'' and inserting
``September 30, 2013''.
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