Flood Insurance Reform: Side-by-Side Comparison of H.R. 4973 and Senate Committee Bill

CRS Report for Congress
Flood Insurance Reform:
Side-By-Side Comparison of
H.R. 4973 and Senate Committee Bill
June 6, 2006
Rawle O. King
Analyst in Industry Economics
Government and Finance Division

Congressional Research Service ˜ The Library of Congress

Flood Insurance Reform: Side-By-Side Comparison of
H.R. 4973 and Senate Committee Bill
Summary
In 1968, Congress established the National Flood Insurance Program (NFIP) as
a response to mounting flood losses, escalating costs of disaster relief to the general
taxpayers, and as an alternative to federal disaster assistance provided on an ad hoc
basis. In the wake of Hurricanes Katrina, Rita, and Wilma in 2005, the NFIP faces
unprecedented financial and regulatory strains. With another severe storm season
predicted in 2006, the nation’s attention has now focused on disaster impacts and
costs, as well as both the strengths of the NFIP in managing and financing the
nation’s flood risk, and its weaknesses. Those concerned about program weaknesses
cite the program’s increasing need to borrow from the U.S. Treasury, premium rate
cross-subsidies, outdated flood insurance rate maps, allegations of uneven
compliance with mandatory purchase requirements, and the need to put the program
on sounder financial footing.
Members of the 109^th Congress are considering legislation — H.R. 4973, the
Flood Insurance Reform and Modernization Act of 2006, and a comparable Senate
bill that does not yet have a number — intended to enhance NFIP effectiveness of
and limit taxpayer liability for claims.
This report provides a brief overview of the flood insurance reform issue and
summarizes and provides a side-by-side comparison of H.R. 4973 and the
comparable Senate Committee bill. This report will be updated as events warrant.

Contents
In troduction ......................................................1
Overview of H.R. 4973 and Senate Committee Bill.......................2
List of Tables
Table 1. Side-by-Side Comparison of Flood Insurance Reform Legislation
H.R. 4973 and Senator Committee Bill....................5

Flood Insurance Reform: Side-By-Side
Comparison of H.R. 4973 and Senate
Committee Bill
Introduction
In 1968, after several decades of pursuing structural approaches, such as dams,
levees, and channels to modify nature’s flood hazard areas, Congress established a
flood risk financing and land management strategy — the National Flood Insurance
Program (NFIP) — with the passage of the National Flood Insurance Act.¹ The
federal flood insurance program was established in response to mounting flood
losses, escalating cost of disaster relief to the general taxpayers, and as an alternative
to federal disaster assistance provided on an ad hoc basis.
Federal flood insurance is currently available to homeowners, renters, and
businesses in 20,118 communities that participate in the NFIP to meet the cost of
repairing damage to buildings and their contents caused by floods. Since 1978, the
NFIP has grown from 1.4 million policyholders and $50 billion in risk exposure to
almost 5 million policyholders and $900 billion in risk exposure.² Most disaster
experts would agree that demands on the NFIP are not likely to decline, as weather-
related disasters, particularly hurricanes, are said to be worsening in frequency and
severity, population continues to grow in flood-prone areas, and property values
continue to rise.
In the wake of Hurricanes Katrina, Rita, and Wilma in 2005, the NFIP faces
unprecedented financial and regulatory strains. With another severe storm season
predicted in 2006, the nation’s attention has now focused on disaster impacts and
costs, as well as both the strengths of the NFIP in managing and financing the
nation’s flood risk and its weaknesses. Those concerned about program weaknesses
cite the increasing need to borrow from the U.S. Treasury, premium rate cross-
subsidies, outdated flood insurance rate maps, allegations of uneven compliance with
mandatory purchase requirements, and a need to put the program on sounder
financial footing.

¹ P.L. 90-448; 82 Stat. 573.
² FEMA uses 1978 as the starting date for collecting NFIP data. This was the year the
program was transferred from the Department of Housing and Urban Affairs.

On March 23, 2006, the President signed into law S. 2275, the National Flood
Insurance Program Enhanced Borrowing Authority Act of 2006,³ to increase from
$18.5 billion to $20.8 billion the amount that the Federal Emergency Management
Agency (FEMA) can borrow from the U.S. Treasury to satisfy contractual obligations
under the NFIP. Under current law, FEMA must repay any borrowed funds (with
interest) as it collects premiums. Some insurance market experts believe FEMA is
unlikely to repay the $23 billion borrowed from the Treasury within the next 10 years
because they think premium collections over that period will probably be used to pay
claims resulting from Hurricane Katrina and future flood insurance claims and
ex penses.⁴
The 109^th Congress is considering additional legislation — H.R. 4973 and a
comparable Senate bill that does not yet have a number — to modify the NFIP to
make changes intended to enhance the effectiveness of the program while limiting
taxpayer liability for claims.
Overview of H.R. 4973 and Senate Committee Bill
On April 6, 2006, the House Financial Services Committee reported H.R. 4973,
the Flood Insurance Reform and Modernization Act, that would modify the NFIP by
implementing changes to bring more consumers into the system and gradually
reducing subsidies for properties built before flood Insurance Rate Maps (FIRMs)
were developed. H.R. 4973 would increase the NFIP’s borrowing authority from the
U.S. Treasury from $18.5 billion to $25 billion, and increase the maximum flood
insurance coverage for residential property, from $250,000 to $335,000 for any
single-family dwelling; from $100,000 to $135,000 for contents per dwelling unit;
and from $500,000 to $670,000 for structures and related contents of a nonresidential
property. The proposed legislation includes provisions aimed at moving the program
to actuarial rates for certain properties and modernizing the nation’s flood maps.
Under H.R. 4973, FEMA would be required to review the nation’s flood maps, and
for the first time, map the nation’s 500-year flooplains. The bill would authorize
$300 million to be appropriated for map modernization effort through fiscal years

2007 to 2012, and require FEMA to maintain and publish an inventory of U.S.

levees.
H.R. 4973 would increase enforcement tools to be made available to bank
regulators at both the federal and state levels. Lenders would face higher penalties
for failing to enforce the NFIP’s mandatory flood insurance purchase requirement.
In addition, lenders would be required to notify borrowers as part of the Real Estate

³ P.L. 109-208.
⁴ For more information on NFIP’s Treasury borrowing, see CRS Report RS22394, National
Flood Insurance Program: Treasury Borrowing in the Aftermath of Hurricane Katrina, by
Rawle O. King.

Settlement Procedures Act requirements that flood insurance is available to all
homeowners, and not just those in 100-year floodplains.⁵
H.R. 4973 would phase out premium subsidies, and create new categories of
optional coverage, such as business interruption and additional living expenses. The
bill would instruct FEMA to establish a decisions appeal process, implement
specified minimum training and education standards for insurance agents selling
flood insurance, and report to Congress regarding implementation of each provision
of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004,⁶ and
identify each regulation, order, notice, and other material issued by FEMA in
implementing the act.
H.R. 4973 also would require the Government Accountability Office (GAO) to
study coverage for so-called “pre-FIRM” structures built or substantially improved
on or before December 31, 1974, or before the effective date of an initial flood
insurance rate map (FIRM) for the area. GAO also would be required to study
extending the mandatory purchase requirement to properties located in areas behind
structural flood protection systems like dams or levees.
On May 25, 2006, the Senate Committee on Banking, Housing, and Urban
Affairs approved in Executive Session the Flood Insurance Reform and
Modernization Act of 2006. The legislation, which does not yet have a number,
would:
^!make the NFIP more actuarially sound by phasing out premium
subsidies on vacation homes, businesses, and severe repetitive loss
properties built before the introduction of flood insurance rate maps
(FIRM) on or before December 31, 1974, or before the effective date
of an initial FIRM for the area;
^!address often outdated and inaccurate flood maps that are used to
price insurance by requiring that FIRMs be updated to allow the
program to transition to more accurate pricing of the insurance;
^!establish a mandatory reserve fund to provide additional funding to
pay claims during catastrophic loss years without further need to
seek assistance from federal taxpayers;
^!increase enforcement tools available to bank regulators at both the
federal and state levels by requiring escrow of flood insurance
premiums and increasing the civil monetary penalties regulators may
levy against lenders who fail to comply with the program’s
mandatory purchase requirements, and, for the first time, require

⁵ A growing number of Americans are exposed to flood risk due to unprecedented rains that
threaten levees and dams. The areas behind structural flood control measures heretofore
were not considered in the 100-year floodplain, so residents did not have to comply with the
mandatory purchase requirement under the NFIP.
⁶ PL 108-264; 118 Stat. 712.

state-regulated financial institutions (lenders) to maintain flood
insurance coverage on all mortgages located within the 100-year
floodplain;
^!provide for a state-sponsored program of mediation of catastrophe-
related insurance claims that may result in flood damage claims
under the NFIP; and
^!require GAO to conduct several studies (reports and audits) designed
to give Members the information they will need to develop options
for future changes to the program. (The 2004 authorization of the
NFIP expires in 2007.)

Table 1. Side-by-Side Comparison of Flood Insurance Reform Legislation
H.R. 4973 and Senator Committee Bill
^Provi^sⁱ^on^H.R^.⁴⁹⁷³^[as^p^l^aced^on^Uⁿⁱ^oⁿ^C^a^l^eⁿ^d^{er, 4/}^6/^06]^Sena^t^e^Co^m^mⁱ^t^t^{ee B}^ill^[A^p^p^r^oved^on^5/^25/^06]
^S^pon^s^o^r^Repres^{entative B}^a^k^e^r^S^{enator Shelby}
^Title^F^l^{ood In}^s^u^ran^{ce R}^e^f^o^rm^an^{d Modern}ⁱ^zatⁱ^oⁿ^A^c^t^of²⁰⁰⁶^S^a^m^e^.
^Pur^pos^e^P^r^o^t^{ects th}^{e in}^teg^r^ity^o^f^th^{e NFI}^P^b^y^f^u^lly^f^uⁿ^dⁱⁿ^g^ex^istin^g^{No com}^p^{arable prov}^is^ion^.
^leg^a^{l o}^b^lig^atioⁿ^s^{, in}^cr^{eases in}^cen^tiv^{es f}^o^r^p^r^o^g^r^a^m
^partⁱ^cⁱ^p^atⁱ^oⁿ^,^an^{d prom}^ot^es^propert^y^owⁿ^e^{r aw}^aren^es^s^of^bot^h
^f^l^{ood ris}^k^s^an^{d th}^{e qu}^ality^ofⁱⁿ^f^o^rm^ation^reg^a^rdin^g^s^u^ch^ris^k^s^.
^Pr^{emium Rate Str}^u^ctur^e^R^e^qu^ires^ph^as^e-ⁱⁿ^of^actu^a^{rial prem}^iu^m^rates^f^o^{r n}^oⁿ^-^Gr^ad^u^a^lly^p^h^{ases o}^u^{t th}^{e cu}^r^r^en^{t p}^r^em^iu^m^r^a^{te su}^b^s^id^{ies o}ⁿ
^Refor^m^resⁱ^den^tⁱ^a^l^propertⁱ^e^s^an^{d n}^oⁿ^-^pri^m^ary^resⁱ^den^ces^byⁱⁿ^creasⁱⁿ^g^s^e^v^e^ral^pre-^F^l^{ood In}^s^u^ran^{ce R}^a^t^e^m^a^{p (pre-}^F^IR^{M) propert}ⁱ^e^s^as
ⁱ^{ki/CRS-RL33450}^t^h^{e ch}^arg^eabl^e^premⁱ^u^m^rat^e^s^15%^du^riⁿ^g^t^h^{e 12-}^m^oⁿ^t^h^peri^od^f^o^llo^w^s^{: (}¹⁾ⁿ^oⁿ^-^p^r^im^ar^y^r^e^sid^eⁿ^{ces; (}²⁾^an^y^sev^e^r^e^r^e^p^e^titiv^e
^g/w^a^f^t^e^r^t^h^e^Fe^d^e^r^a^l^E^m^e^r^ge^nc^y^M^a^na^ge^m^e^nt^A^g^eⁿ^c^y⁽^F^E^M^A⁾^l^o^s^s^propert^y^;^{(3) an}^y^propert^y^t^h^at^h^a^sⁱⁿ^cu^{rred f}^l^ood-^rel^a^t^e^d
^s^.or^cer^tif^{ies th}^{at it h}^a^{s co}^m^p^leted^{its r}^e^vⁱ^ew^o^f^th^{e n}^a^tioⁿ^’^{s f}^l^o^o^d^dam^a^g^eⁱⁿ^am^ouⁿ^t^s^ex^ceedin^g^th^{e f}^a^{ir m}^a^rk^{et v}^a^lu^{e (FMV) of}
^le^ak^m^a^p^s^{, an}^d^oⁿ^{ce ev}^er^y¹²^m^oⁿ^t^h^s^th^er^eaf^ter^uⁿ^{til su}^chⁱⁿ^cr^ease^s^u^ch^propert^y^;^{(4) an}^y^bu^sⁱⁿ^e^s^s^propert^y^;^an^{d (5) an}^y^propert^y
^is^accom^p^lis^h^e^d.^th^{at h}^a^s^s^u^s^t^ain^e^{d s}^u^bs^tan^{tial dam}^a^g^e^ex^ceedin^g^{50% of}^th^e
^://wiki^{FMV or s}^u^bs^tan^{tial im}^prov^em^en^{t ex}^ceedin^g^{30% of}^its^FMV.
^h^ttp^P^r^ov^ides^f^o^{r a 25% in}^creas^{e in}^prem^iu^m^rates^{per y}^{ear du}^rin^g
^th^{e p}^h^ase-^o^u^{t p}^e^rⁱ^o^d^uⁿ^{til th}^{e p}^r^o^p^e^r^t^y^{is n}^o^loⁿ^g^e^r^su^b^s^id^ized
^uⁿ^d^{er th}^{e prog}^ram^.^R^e^qu^ires^actu^a^{rial rates}^f^o^{r n}^e^w^l^y^is^s^u^ed
^p^o^{licies o}^r^lap^s^ed^p^o^licies.
^Lⁱ^mⁱ^t^a^tⁱ^ons^{on Annual}^Iⁿ^c^r^e^a^s^e^s^fr^o^m¹⁰^%^t^o¹⁵^%^t^h^e^o^v^e^r^a^l^l^m^a^xi^m^u^m^a^nnua^l^Sam^e^.
^Pr^{emium Incr}^eas^e^s^ch^arg^eabl^e^premⁱ^u^m^rat^e^f^o^{r f}^l^{ood i}ⁿ^s^u^ran^{ce du}^riⁿ^g^an^y^12-
^m^oⁿ^t^h^peri^{od .}
^W^aⁱ^tⁱ^{ng Per}ⁱ^{od f}^o^r^Wai^tⁱⁿ^g^peri^{od f}^o^{r ef}^f^ectⁱ^v^{e dat}^e^of^polⁱ^cⁱ^e^s^redu^{ced f}^r^om^{30 t}^o^{No com}^p^{arable prov}^is^ion^.
^{Effective Da}^{te o}^f^Po^licies^{15 day}^s^.
^{Maximum C}^o^ver^age^In^creas^{ed cov}^e^rag^e^lⁱ^mⁱ^t^s^f^r^om^{$250,000 t}^o^{$335,000 an}^d^{No com}^p^{arable prov}^is^ion^.

^Limits^{$500,000 t}^o^{$670,000 f}^o^{r res}ⁱ^den^tⁱ^a^l^an^{d n}^oⁿ^-^resⁱ^den^tⁱ^a^l
^p^r^o^p^e^r^{ties, r}^e^sp^ectiv^ely^.

^Provi^sⁱ^on^H.R^.⁴⁹⁷³^[as^p^l^aced^on^Uⁿⁱ^oⁿ^C^a^l^eⁿ^d^{er, 4/}^6/^06]^Sena^t^e^Co^m^mⁱ^t^t^{ee B}^ill^[A^p^p^r^oved^on^5/^25/^06]
^S^pon^s^o^r^Repres^{entative B}^a^k^e^r^S^{enator Shelby}
^C^o^ver^{age f}^o^r^Addi^tⁱ^onal^P^r^ov^ides^f^o^{r pay}^m^en^{t of}^{$1,000 per dw}^ellin^gⁱⁿ^addition^a^l^{No com}^p^{arable prov}^is^ion^.
^Lⁱ^vi^{ng Expens}^es^{, Bus}ⁱ^nes^s^lⁱ^vⁱⁿ^g^ex^pen^s^es^f^o^l^l^o^wⁱⁿ^g^{a f}^l^{ood l}^o^s^s^w^h^en^t^h^{e res}ⁱ^den^{ce i}^s
^Int^e^r^r^uptⁱ^{on, and}^uⁿ^f^{it to}^liv^{e in}^{. A}^llo^w^s^h^o^m^e^o^wⁿ^e^r^s^to^p^u^r^c^h^a^{se o}^p^tioⁿ^a^l
^{Replacement C}^o^s^t^of^cov^e^rag^e^f^o^{r f}^l^{ood los}^s^e^sⁱⁿ^bas^e^m^eⁿ^t^s^,^craw^{l s}^p^aces^an^{d oth}^e^r
^C^ont^ent^s^en^clos^{ed areas}^uⁿ^d^{er bu}^ildin^g^s^th^{at are n}^o^{t cov}^e^{red by}^prim^ary
^f^l^{ood i}ⁿ^s^u^ran^{ce. Prov}ⁱ^d^es^optⁱ^oⁿ^a^l^bu^sⁱⁿ^e^s^sⁱⁿ^t^e^rru^p^tⁱ^oⁿ
^co^v^e^r^a^g^e^f^o^r^co^m^m^e^r^c^{ial p}^r^o^p^e^r^t^y^.^L^o^{sses ar}^{e to}^b^e^d^e^ter^mⁱⁿ^ed
^by^t^h^{e prof}ⁱ^t^s^t^h^{e cov}^e^{red bu}^sⁱⁿ^e^s^s^w^o^u^l^{d h}^a^v^e^earn^e^{d, an}^{d on}
^prevⁱ^o^u^s^fⁱⁿ^aⁿ^cⁱ^a^l^records^,^h^a^{d t}^h^{e f}^l^{ood n}^o^t^occu^rred.
^P^r^ov^ides^option^a^{l cov}^e^rag^e^f^o^{r th}^{e f}^u^{ll replacem}^en^{t cos}^t^of^an^y
^coⁿ^t^en^{ts in}^th^{e r}^e^sid^eⁿ^{tial an}^d^co^m^m^e^r^c^{ial p}^r^o^p^e^r^t^y^.^New
^ben^e^f^its^{are m}^a^{de av}^{ailable on}^ly^{at tim}^{e of}^ren^e^w^a^{l or is}^s^u^an^ce
^of^{a n}^e^w^con^t^{ract, an}^{d on}^ly^{at actu}^a^{rial rates}^.
ⁱ^{ki/CRS-RL33450}^Iⁿ^c^r^e^a^seⁱⁿ^B^o^rro^win^g^In^creas^es^t^h^{e N}^a^tⁱ^oⁿ^a^l^F^l^{ood In}^s^u^ran^{ce Prog}^ram^(N^F^I^P)^{No com}^p^{arable prov}^is^ion^.
^g/w^Au^th^o^r^{ity Limits}^T^r^eas^u^r^y^borrowⁱⁿ^g^au^th^ority^f^r^om^{$18.5 b}^illion^{to $25 billion}^.
^s^.or
^le^ak^Fi^nanci^{ng of}^Funds^Fr^om^Tre^a^su^ry^No^co^m^p^ar^ab^{le p}^r^o^v^isioⁿ^.^A^u^th^o^r^{izes th}^{e S}^ecretary^of^th^{e T}^r^eas^u^r^y^{to prov}^{ide f}^uⁿ^d^s^to^cov^e^{r ex}ⁱ^s^tⁱⁿ^g^oblⁱ^g^atⁱ^oⁿ^s^of^t^h^{e N}^F^{IP f}^o^{r t}^h^{e 2005 h}^u^rri^can^e
^://wiki^s^eas^on^.
^h^ttp^Bor^r^o^wⁱ^{ng Aut}^horⁱ^t^y^D^e^bt^No^co^m^p^ar^ab^{le p}^r^o^v^isioⁿ^.^Req^u^ir^es^th^{e Secretary}^of^th^{e T}^r^eas^u^r^y^{to com}^p^letely^elimⁱⁿ^ate
^For^g^ivenes^s^an^y^oblⁱ^g^atⁱ^oⁿ^s^ow^{ed t}^o^t^h^{e T}^r^eas^u^r^y^by^t^h^{e N}^F^{IP f}^o^{r t}^h^{e 2005}
^h^u^rrican^{e s}^eas^on^{. Debt f}^o^rg^iv^en^es^s^tak^e^s^ef^f^{ect on}^ly^af^{ter th}^e
^Dir^ecto^r^o^f^FEMA^cer^tif^{ies to}^th^{e T}^r^easu^r^y^th^{at all f}ⁱⁿ^aⁿ^c^ial
^res^o^u^r^ces^h^a^v^e^been^oblig^{ated to pay}^claim^s^.
^Repaym^e^nt^Pl^{an f}^o^r^Re^q^uⁱ^r^e^s^t^h^e^Dⁱ^r^e^c^t^o^r^o^f^Fe^d^e^r^a^l^E^m^e^r^ge^nc^y^M^a^na^ge^m^e^nt^Req^u^ir^{es th}^{at an}^y^tim^{e th}^{e NFI}^P^u^s^{es its b}^o^r^r^o^wⁱⁿ^g^au^th^o^r^ity^{, it}
^Bor^r^o^wⁱ^{ng Aut}^horⁱ^t^y^A^g^en^cy⁽^F^EMA⁾^to^su^b^m^{it a stu}^d^y^to^Coⁿ^g^r^{ess w}^ithⁱⁿ^six^m^u^s^t^s^u^bm^{it a repay}^m^en^{t plan}^{to both}^th^{e Secretary}^of^th^e
^m^oⁿ^t^h^s^of^en^actm^eⁿ^t^of^th^{e act, s}^e^ttin^g^f^o^rth^{a plan}^f^o^{r repay}ⁱⁿ^g^T^r^eas^u^r^y^an^{d to C}^oⁿ^g^r^es^s^.
^borrow^e^{d f}^uⁿ^d^s^.
^Decr^eas^e^{in Bor}^r^o^wⁱ^ng^{No com}^p^{arable prov}^is^ion^.^R^e^du^ces^th^{e NFIP}^’^s^borrowⁱⁿ^g^au^th^ority^f^r^om^{$18.5 billion}^to
^Au^th^o^r^ity^$¹^.⁵^b^illioⁿ^.

^Provi^sⁱ^on^H.R^.⁴⁹⁷³^[as^p^l^aced^on^Uⁿⁱ^oⁿ^C^a^l^eⁿ^d^{er, 4/}^6/^06]^Sena^t^e^Co^m^mⁱ^t^t^{ee B}^ill^[A^p^p^r^oved^on^5/^25/^06]
^S^pon^s^o^r^Repres^{entative B}^a^k^e^r^S^{enator Shelby}
^Minⁱ^mu^{m Ded}^u^c^tib^les^N^o^com^p^arabl^e^provⁱ^sⁱ^oⁿ^.^S^e^t^s^mⁱⁿⁱ^m^u^m^dedu^ctⁱ^b^l^e^l^e^v^e^l^f^o^{r cl}^ai^m^s^at^{$2,000 f}^o^r
^Levels^for^C^l^aims^properties^con^s^tru^c^{ted bef}^o^{re Decem}^{ber 31, 1974 (pre-}^F^IR^M)
^an^{d $1,000 f}^o^{r pos}^t^-^F^I^R^M^propertⁱ^e^s^.^A^l^l^dedu^ctⁱ^b^l^e^s^{are at}^an
^a^nnua^l^b^a^si^s,^aⁿ^d^oⁿ^c^e^t^h^e^d^e^d^u^c^tⁱ^b^l^eⁱ^s^m^e^t^,^no^fur^t^he^r
^d^e^d^u^ctib^{le is r}^e^q^u^ir^ed^.
^{Civil Pen}^a^{lties fo}^r^Civ^{il p}^eⁿ^a^{lties o}ⁿ^len^dⁱⁿ^gⁱⁿ^stitu^tioⁿ^s^f^o^r^vⁱ^o^l^atin^g^th^e^Civ^{il p}^eⁿ^a^{lties o}ⁿ^len^dⁱⁿ^gⁱⁿ^stitu^tioⁿ^s^f^o^r^vⁱ^o^l^atin^g^th^e
^Len^dⁱⁿ^g^Iⁿ^stitu^tioⁿ^s^m^aⁿ^d^at^ory^f^l^{ood i}ⁿ^s^u^ran^{ce pu}^rch^a^s^e^requⁱ^r^em^en^tⁱⁿ^creas^ed^m^aⁿ^d^at^ory^f^l^{ood i}ⁿ^s^u^ran^{ce pu}^rch^a^s^e^requⁱ^r^em^en^tⁱⁿ^creas^{e f}^r^om
^f^r^om^{$350 t}^o^{$2,000 per occu}^rren^{ce an}^{d t}^h^{e a}^nnua^l^c^a^p^fr^o^m^{$350 t}^o^{$2,000. El}ⁱ^mⁱⁿ^at^es^t^h^{e a}^nnua^l^c^a^p^.
^{$100,000 to $1,000,000. A}^dds^th^{at n}^o^pen^a^lties^m^a^y^be
ⁱ^m^pos^{ed on}^l^eⁿ^d^ers^w^h^{o m}^a^k^e^g^{ood f}^aⁱ^t^h^ef^f^o^rt^t^o^com^p^l^y^wⁱ^t^h
^th^{e requ}^irem^en^ts^.
^St^at^{e D}ⁱ^s^a^s^t^er^C^l^ai^m^s^P^e^rm^its^th^{e in}^s^u^ran^{ce com}^mⁱ^s^sⁱ^on^{er of}^{a s}^t^{ate to s}^u^bm^{it a}^Do^{es n}^o^{t ex}^p^licitly^u^s^{e th}^{e ter}^m^“^a^d^j^u^s^ter^s^{”; in}^stead^{, u}^s^{es th}^e
ⁱ^{ki/CRS-RL33450}^M^e^di^atⁱ^{on Pr}^ogr^am^s^requ^es^{t to th}^{e Director of}^FEMA^{to h}^a^v^e^ag^en^cy^participate^term^“^R^epres^eⁿ^t^ativ^es^of^th^{e Director” an}^{d s}^p^ecifⁱ^es^th^e
^g/w⁽^e^.g^{., p}^r^o^v^id^{e cer}^tif^ied^ad^j^u^ster^s)ⁱⁿⁿ^oⁿ^-^bⁱⁿ^dⁱⁿ^g^m^e^dⁱ^atioⁿ^o^f^qu^alⁱ^fⁱ^catⁱ^oⁿ^s^of^m^e^di^at^ors^as^beiⁿ^g^m^e^m^b^ersⁱⁿ^g^{ood s}^t^an^diⁿ^g
^s^.or^catas^troph^e-^{related in}^s^u^ran^{ce claim}^s^th^{at m}^a^y^res^u^{lt in}^f^l^oodⁱⁿ^th^{e s}^t^{ate w}^h^ich^th^{e m}^e^diation^is^{to occu}^{r an}^{d th}^{e m}^e^diator
^le^ak^dam^a^g^e^claim^s^uⁿ^d^{er th}^{e NFIP}^{. A}^d^j^u^s^t^ers^repres^en^tin^g^th^e^NFI^P^sh^{all co}^o^r^dⁱⁿ^a^{te th}^eir^activ^{ities w}^ith^{state in}^su^r^aⁿ^c^e^h^a^s^{at leas}^{t tw}^{o y}^ears^of^{practical ex}^perien^{ce. A}^{ll s}^t^atem^en^ts^m^a^{de an}^{d docu}^m^en^t^s^produ^{ced i}ⁿ^t^h^{e m}^e^di^atⁱ^oⁿ^proces^s^s^h^al^l
^://wiki^reg^u^l^ators^an^{d repres}^en^tativ^es^.^b^e^d^eem^ed^p^r^iv^ileg^e^d^an^d^coⁿ^f^id^en^{tial settlem}^eⁿ^tⁿ^e^g^o^tiatioⁿ^s^m^a^d^eⁱⁿ^an^ticip^atioⁿ^o^f^litig^atioⁿ^.
^h^ttp
^C^onsⁱ^d^er^atⁱ^onsⁱⁿ^No^co^m^p^ar^ab^{le p}^r^o^v^isioⁿ^.^Req^u^ir^{es an}^ex^amⁱⁿ^atioⁿ^o^f^{all y}^ear^{s w}^ithⁱⁿ^th^{e p}^r^o^g^r^a^m
^D^e^t^e^r^mⁱⁿⁱ^{ng C}^har^geabl^eⁱⁿ^clu^dⁱⁿ^g^catastr^o^p^h^{ic lo}^{ss y}^ear^{s to}^d^e^ter^mⁱⁿ^{e th}^{e ap}^p^r^o^p^r^iate
^Pr^{emium Rates}^“a^ve^r^a^ge^hi^st^o^rⁱ^c^a^l^l^o^{ss y}^e^a^r^.^”

^Provi^sⁱ^on^H.R^.⁴⁹⁷³^[as^p^l^aced^on^Uⁿⁱ^oⁿ^C^a^l^eⁿ^d^{er, 4/}^6/^06]^Sena^t^e^Co^m^mⁱ^t^t^{ee B}^ill^[A^p^p^r^oved^on^5/^25/^06]
^S^pon^s^o^r^Repres^{entative B}^a^k^e^r^S^{enator Shelby}
^Res^e^r^{ve Funds}^N^o^com^p^arabl^e^provⁱ^sⁱ^oⁿ^.^C^r^eat^es^{a N}^a^tⁱ^oⁿ^a^l^F^l^{ood In}^s^u^ran^{ce R}^e^s^e^rv^{e F}^uⁿ^d^(“^R^e^s^e^rv^e
^Fuⁿ^d^”)ⁱⁿ^th^{e T}^r^easu^r^y^th^{at m}^aⁱⁿ^tain^{s 1}^%^o^f^th^{e to}^{tal p}^o^t^en^tial
^l^o^s^s^ex^pos^u^r^{e of}^al^l^ou^t^s^t^aⁿ^dⁱⁿ^g^f^l^{ood i}ⁿ^s^u^ran^{ce pol}ⁱ^cⁱ^e^sⁱⁿ
^f^o^{rce w}^ithⁱⁿ^th^{e prog}^ram^,^{or a h}ⁱ^g^h^e^{r percen}^tag^e^{, as}^th^e
^Dir^ecto^r^d^e^ter^mⁱⁿ^{es to}^b^e^ap^p^r^o^p^r^{iate. Estab}^lish^e^{s a}
^m^ech^an^ismⁱⁿ^o^r^d^e^r^to^o^b^t^ain^th^{e tar}^g^{et 1}^%^r^a^tio^w^ithⁱⁿ¹⁰
^y^ears^.^In^F^Y^{2007 t}^h^{e res}^e^rv^{e rat}ⁱ^oⁱ^s^10%^;ⁱⁿ^{2008 i}^tⁱ^s^20%^,
^incr^{easing 1}⁰^%^{each y}^ear^thr^o^ugh^{2015 w}^h^en^t^h^{e res}^e^rv^{e rat}ⁱ^o
ⁱ^s^t^o^{be 90%}^{. D}ⁱ^rect^{or h}^a^s^di^s^c^retⁱ^oⁿ^t^o^bot^h^s^u^s^p^en^{d t}^h^e
^attain^m^eⁿ^t^of^th^{e requ}^{ired res}^e^rv^{e ratio in}^an^y^fⁱ^s^{cal y}^{ear or}
^r^e^q^u^{est ad}^d^itioⁿ^a^{l ap}^p^r^o^p^r^iatioⁿ^s^f^r^o^m^Coⁿ^g^r^{ess if}^h^e^/sh^e
^d^e^t^e^r^mⁱⁿ^e^s^aⁿⁱⁿ^c^r^e^a^s^eⁱⁿ^t^h^e^a^m^o^unt^o^f^a^ggr^e^g^a^t^e^a^nnua^l
ⁱⁿ^s^u^ran^{ce prem}^iu^m^s^{to be collected f}^o^{r an}^y^fⁱ^s^{cal y}^{ear w}^o^u^l^d
^ad^v^e^r^s^ely^af^f^{ect th}^{e f}ⁱⁿ^aⁿ^c^{ial co}ⁿ^d^itioⁿ^o^f^th^{e Reser}^v^{e Fu}ⁿ^d^.
ⁱ^{ki/CRS-RL33450}
^g/w^Ext^e^nsⁱ^{on of}^Pi^l^o^t^Ex^ten^d^{s th}^{e p}^ilo^{t p}^r^o^g^r^a^m^f^o^r^m^itig^atioⁿ^o^f^sev^e^r^e^r^e^p^e^titiv^e^{No com}^p^{arable prov}^is^ion^.
^s^.or^Pr^ogr^am^f^o^r^Mⁱ^tⁱ^gatⁱ^{on of}^l^o^{ss p}^r^o^p^e^r^tⁱ^e^{s t}^h^r^o^{ugh Se}^p^t^e^m^b^e^r³⁰^,^2011.
^le^ak^S^{evere Rep}^e^{titive Lo}^ss
^Pr^oper^tⁱ^e^s
^://wiki^N^o^tⁱ^{ce of}^Fl^{ood Ins}^u^r^ance^A^m^en^d^s^Sectioⁿ⁵⁽^b⁾^o^f^th^{e Real Estate Settlem}^eⁿ^t^P^r^o^ced^u^r^es^Sam^e^.
^h^ttp^Ava^ila^b^{ility Un}^d^e^r^A^c^t^of^{1974 (R}^ES^PA^{) t}^o^creat^{e a n}^e^wⁿ^o^tⁱ^{ce prov}ⁱ^sⁱ^oⁿ^t^o
^RESPA^en^s^u^{re th}^{at in}^divⁱ^du^als^w^h^{o pu}^rch^a^s^e^lan^dⁱⁿ^areas^of^elev^ated
^f^l^{ood ri}^s^k^(w^h^e^t^h^{er or n}^o^t^t^h^{e propert}^yⁱ^s^l^o^cat^{ed i}ⁿ^{a s}^p^eci^al
^f^l^{ood h}^{azard area) are m}^a^{de aw}^{are of}^th^{e ris}^k^an^{d g}ⁱ^v^eⁿ^an
^opport^uⁿⁱ^t^y^t^o^pu^rch^a^s^e^f^l^{ood i}ⁿ^s^u^ran^ce.
^Es^cr^ow^of^Fl^ood^A^m^en^ds^Section^{5(b) of}^th^{e R}^E^SP^A^{to add n}^e^w^s^t^atem^en^{t in}^Req^u^{ires th}^{at each}^f^e^d^e^{ral en}^tity^f^o^{r len}^dⁱⁿ^g^reg^u^l^atioⁿ^,ⁱⁿ
^Ins^u^r^{ance Payments}^R^E^S^P^A^g^{ood f}^aⁱ^t^h^es^tⁱ^m^at^{e t}^h^at^t^h^{e es}^crow^of^f^l^{ood i}ⁿ^s^u^ran^c^e^coⁿ^s^u^ltatioⁿ^w^ith^th^{e Fed}^e^r^a^{l Fin}^aⁿ^c^{ial I}ⁿ^stitu^tioⁿ^s
^pay^m^en^t^sⁱ^s^requⁱ^r^{ed f}^o^{r m}^aⁿ^y^l^o^an^s^uⁿ^d^{er t}^h^{e 1973 act}^{, an}^d^Ex^amⁱⁿ^atioⁿ^Co^uⁿ^c^{il, p}^r^o^m^u^l^g^a^{te r}^e^g^u^l^atioⁿ^s^to^dⁱ^r^ect
^m^a^y^{be a con}^v^eⁿⁱ^en^{t an}^{d av}^{ailable option}^w^ith^res^p^{ect to oth}^e^r^polⁱ^c^y^h^ol^ders^t^o^pay^f^l^{ood i}ⁿ^s^u^ran^{ce prem}ⁱ^u^m^s^di^rect^l^y^t^o^t^h^e
^lo^an^s.^m^o^r^t^g^a^g^e^len^d^er^f^o^r^th^{e d}^u^r^a^tioⁿ^o^f^th^{e lo}^an^w^h^en^th^ey^m^a^k^e
^th^{eir m}^oⁿ^t^h^l^y^m^o^rtg^a^g^e^pay^m^en^ts^{. T}^h^{e len}^d^{er m}^u^s^t^{place f}^l^ood
ⁱⁿ^s^u^ran^{ce pay}^m^en^tsⁱⁿ^{to an}^es^crow^accouⁿ^t^on^beh^a^lf^of^th^e
^b^o^r^r^o^w^e^r^.^A^f^ter^th^{e m}^o^r^t^g^a^g^e^lo^an^h^a^{s b}^een^p^a^id^{, th}^{e len}^d^er
^m^u^s^t^prov^{ide n}^o^{tice to th}^{e m}^o^rtg^a^g^{ee th}^{at in}^s^u^ran^{ce cov}^e^rag^e
^m^a^y^ceas^{e w}^ith^th^{e f}ⁱⁿ^a^{l m}^o^rtg^a^g^e^pay^m^en^t.

^Provi^sⁱ^on^H.R^.⁴⁹⁷³^[as^p^l^aced^on^Uⁿⁱ^oⁿ^C^a^l^eⁿ^d^{er, 4/}^6/^06]^Sena^t^e^Co^m^mⁱ^t^t^{ee B}^ill^[A^p^p^r^oved^on^5/^25/^06]
^S^pon^s^o^r^Repres^{entative B}^a^k^e^r^S^{enator Shelby}
^T^echni^cal^M^appi^ng^Re^e^s^t^a^b^lⁱ^s^he^{s t}^h^e^T^e^c^hni^c^a^l^M^a^p^pⁱ^{ng A}^d^vi^so^r^y^Co^uncⁱ^l^w^hⁱ^c^h^E^s^t^a^b^lⁱ^s^he^{s a}ⁿ¹¹^-^m^e^m^b^e^r^T^e^c^hni^c^a^l^M^a^p^pⁱ^{ng A}^d^vi^so^r^y
^Advi^s^o^r^y^C^ounci^l^w^{ill n}^o^wⁱⁿ^clu^d^{e r}^e^p^r^esen^tativ^{es f}^r^o^m^th^{e A}^r^m^y^Co^r^p^{s o}^f^C^o^uⁿ^cⁱ^l^.^Mem^b^ers^{are appoi}ⁿ^t^{ed by}^t^h^{e di}^rect^{or an}^{d t}^h^ey^wⁱ^l^l
^En^gⁱⁿ^eers^,^l^o^cal^an^{d reg}ⁱ^on^al^f^l^{ood an}^{d s}^t^orm^w^at^{er ag}^en^ci^es^,^repres^en^{t th}^{e f}^o^llowⁱⁿ^g^ag^en^cies^{or org}^aⁿⁱ^zation^s^{: Un}^der
^s^t^at^{e g}^e^og^raphⁱ^cⁱⁿ^f^o^rm^atⁱ^oⁿ^coordiⁿ^a^t^o^rs^{, an}^{d f}^l^{ood i}ⁿ^s^u^ran^c^e^Secretary^of^C^o^m^m^e^{rce f}^o^{r Ocean}^s^an^{d A}^t^m^o^s^p^h^e^{re, s}^u^rv^eyⁱⁿ^g
^s^e^rvⁱ^cⁱⁿ^g^com^p^anⁱ^e^s^.^Mem^b^ers^of^t^h^{e C}^o^uⁿ^cⁱ^l^,^appoiⁿ^t^{ed by}^an^{d m}^a^ppiⁿ^g^prof^es^sⁱ^on^al^as^s^o^ci^atⁱ^oⁿ^;^prof^es^sⁱ^on^al^en^gⁱⁿ^eeriⁿ^g
^th^{e Dir}^ecto^r^o^f^FEMA^{, w}^{ill m}^a^k^e^r^eco^m^m^eⁿ^d^atioⁿ^s^to^th^e^as^s^o^ciation^s^{; f}^l^{ood h}^{azard determ}ⁱⁿ^ation^fⁱ^rm^s^;^Un^{ited S}^t^ates
^di^rect^{or f}^o^{r i}^m^prov^em^en^t^s^t^o^t^h^{e f}^l^{ood m}^a^{p m}^odernⁱ^zatⁱ^oⁿ^G^e^ol^ogⁱ^c^S^u^rv^ey^;^O^f^fⁱ^{ce of}^Man^a^g^e^m^eⁿ^t^an^{d Bu}^dg^et^;^s^t^at^e
^prog^ram^,^m^aⁱⁿ^tain^anⁱⁿ^v^eⁿ^t^ory^of^u^{pdated f}^l^{ood h}^{azard m}^a^ps^g^e^ol^ogⁱ^c^s^u^rv^ey^prog^ram^s^;^s^t^at^{e n}^a^tⁱ^oⁿ^a^l^f^l^{ood i}ⁿ^s^u^ran^c^e
^aⁿ^dⁱⁿ^fo^r^m^a^tⁱ^o^n,^aⁿ^d^sub^mⁱ^t^aⁿ^a^nnua^l^r^e^p^o^r^t^t^o^t^h^e^dⁱ^r^e^c^t^o^r^coordin^a^tion^of^fⁱ^ces^{; A}^r^m^y^C^o^rps^of^En^gⁱⁿ^eers^;^Secretary^of
^o^u^tlinⁱⁿ^g^th^eir^activ^{ities an}^d^r^eco^m^m^eⁿ^d^atioⁿ^s^.^th^{e I}ⁿ^terⁱ^o^r^{; an}^d^,^th^{e Secr}^etar^y^o^f^A^g^rⁱ^cu^ltu^r^e^{. Du}^{ties o}^f^th^e
^c^o^uncⁱ^lⁱⁿ^c^l^ud^e^m^a^ki^{ng r}^e^c^o^m^m^e^nd^atioⁿ^s^to^th^{e d}ⁱ^r^ecto^r^oⁿ
^co^st-^e^f^f^ectiv^{e w}^a^y^to^im^p^r^o^v^{e th}^{e q}^u^ality^{, ease o}^f^u^s^{e, an}^d
^di^s^t^ri^bu^tⁱ^oⁿ^of^f^l^{ood i}ⁿ^s^u^ran^{ce rat}^e^m^a^ps^(F^IR^Ms^{), dev}^e^l^opiⁿ^g
^m^a^p^pⁱⁿ^g^stan^d^a^r^d^{s an}^d^g^uⁱ^d^e^lin^{es f}^o^r^FI^{RMs, an}^d^su^b^m^ittin^g
ⁱ^{ki/CRS-RL33450}^aⁿ^a^nnua^{l r}^e^p^o^r^{t o}ⁿ^the^c^o^unc^{il’s a}^c^tivitie^{s a}ⁿ^d
^g/w^recom^m^eⁿ^d^ation^s^{to th}^{e director.}
^s^.or
^le^ak^U^pdatⁱ^{ng Fl}^ood-Ri^s^k^R^e^qu^ires^th^{e director to con}^d^u^c^{t, an}^{d certif}^y^af^{ter its}^Req^u^ir^{es th}^{e d}ⁱ^r^ecto^r^to^issu^{e f}ⁱⁿ^a^{l r}^e^g^u^l^atioⁿ^s^estab^lishⁱⁿ^g^a
^Z^ones^com^p^l^e^tⁱ^oⁿ^,^{a rev}ⁱ^ew^of^al^l^f^l^oodpl^aiⁿ^areas^an^{d f}^l^ood-^ri^s^k^revⁱ^s^e^{d def}ⁱⁿ^ition^of^s^p^{ecial f}^l^{ood h}^azards^areas^th^{at n}^o^w
^://wiki^zoⁿ^e^{s cu}^r^r^en^tly^b^eⁱⁿ^g^u^s^edⁱⁿ^th^{e NFI}^P^{. A}^d^e^scrⁱ^p^tioⁿ^o^f^th^eⁱⁿ^clu^d^es^both^areas^prev^iou^s^ly^iden^tif^{ied as}^h^a^vⁱⁿ^g^s^p^ecial
^h^ttp^revⁱ^ew^an^{d u}^pdatin^g^proces^s^s^h^{all be in}^clu^d^{ed in}^th^{e director’}^s^a^nnua^l^r^e^p^o^r^t^t^o^Co^ngr^e^ss.^f^l^{ood h}^azards^{, an}^{d areas}^of^resⁱ^du^{al ris}^k^behⁱⁿ^d^lev^ees^{, dam}^s^,^an^{d ot}^h^e^{r m}^aⁿ^-^m^a^{de s}^t^ru^ct^u^r^es^.
^P^o^st-^D^isa^s^te^{r A}^d^vⁱ^so^ry^A^llo^w^s^th^{e d}ⁱ^r^ecto^r^to^ex^p^e^d^{ite th}^{e n}^o^tif^icatioⁿ^an^d^p^u^b^licatioⁿ^{No com}^p^{arable prov}^is^ion^.

^Fl^{ood El}^evatⁱ^ons^procedu^r^es^f^o^{r a com}^m^uⁿⁱ^t^y^t^o^adopt^pos^t^-^di^s^a^s^t^{er adv}ⁱ^s^o^ry
^f^l^{ood el}^ev^atⁱ^oⁿ^s^f^o^{r l}^o^cal^l^aⁿ^d^u^s^{e an}^{d con}^t^rol^m^eas^u^r^es^{. A}^l^l
^rⁱ^g^h^t^{s to}^su^b^m^{it in}^f^o^r^m^atioⁿ^an^d^to^ap^p^{eal th}^{e d}ⁱ^r^ecto^r^’^s
^fⁱⁿ^dⁱⁿ^g^s^{are pres}^erv^e^d.

^Provi^sⁱ^on^H.R^.⁴⁹⁷³^[as^p^l^aced^on^Uⁿⁱ^oⁿ^C^a^l^eⁿ^d^{er, 4/}^6/^06]^Sena^t^e^Co^m^mⁱ^t^t^{ee B}^ill^[A^p^p^r^oved^on^5/^25/^06]
^S^pon^s^o^r^Repres^{entative B}^a^k^e^r^S^{enator Shelby}
^N^a^tⁱ^onal^Fl^{ood M}^appi^ng^Req^u^ir^{es th}^{e d}ⁱ^r^ecto^r^to^estab^lish^{a p}^r^o^g^r^a^m^uⁿ^d^er^w^h^ich^h^e^/sh^e^R^e^qu^ires^th^{e director, in}^coordin^a^tion^w^ith^th^{e T}^echⁿⁱ^cal
^Pr^ogr^am^s^h^al^l^revⁱ^ew^{, u}^pdat^e^{, an}^{d m}^aⁱⁿ^t^aⁱⁿ^f^l^{ood i}ⁿ^s^u^ran^{ce rat}^e^m^a^ps^.^Map^pⁱⁿ^g^A^d^vⁱ^so^r^y^Co^uⁿ^c^{il, to}^estab^lish^{a p}^r^o^g^r^a^m^to^id^en^tif^y^,
^Each^m^a^{p s}^h^al^lⁱⁿ^cl^u^d^{e a depi}^ctⁱ^oⁿ^of^t^h^{e 500-}^y^{ear f}^l^oodpl^aiⁿ^,^r^e^vⁱ^ew^{, u}^p^d^a^{te, m}^aⁱⁿ^tain^{, an}^d^p^u^b^lish^FI^{RMs in}^ar^{eas lo}^cated
^as^w^e^{ll as}^resⁱ^du^{al ris}^k^areas^behⁱⁿ^d^lev^ees^{, dam}^s^{, an}^d^wⁱ^t^hⁱⁿ^t^h^{e 500-}^y^{ear f}^l^oodpl^aiⁿ^an^{d areas}^of^resⁱ^du^al^ri^s^k^behⁱⁿ^d
^f^l^oodw^al^l^s^{. U}^pdat^e^{d m}^a^ps^m^a^y^al^s^oⁱⁿ^cl^u^d^{e rel}^e^v^aⁿ^t^lev^ees^{, dam}^s^{, an}^{d oth}^e^{r m}^aⁿ^-^m^a^{de s}^t^ru^ctu^r^es^{, as}^w^e^{ll as}
ⁱⁿ^fo^r^m^a^tⁱ^o^{n o}ⁿ^c^o^a^s^t^a^lⁱ^nund^a^tⁱ^o^n,^st^r^e^a^m^fl^o^w^s,^w^a^t^e^r^s^he^d^u^pdatⁱⁿ^g^t^h^{e ex}ⁱ^s^tⁱⁿ^g^f^l^ood-^ri^s^k^zon^e^sⁱⁿ^t^h^{e 100-}^y^{ear f}^l^oopl^aiⁿ^.
^ch^aract^eri^s^tⁱ^c^s^,^an^{d t}^opog^raph^y^provⁱ^d^{ed by}^t^h^{e A}^r^m^y^C^o^rps^of^Directs^th^{e NFIP}^{to u}^s^{e th}^{e n}^e^w^e^s^t^techⁿ^o^log^y^on^h^y^drolog^ic
^En^gⁱⁿ^eers^an^{d th}^{e Nation}^a^{l Ocean}^{ic an}^{d A}^t^m^o^s^p^h^e^ric^an^{d h}^y^drau^{lic m}^odelin^g^,^an^{d th}^{e m}^o^s^t^accu^{rate f}^l^{ood elev}^ation
^Ad^mⁱⁿⁱ^s^t^r^a^tⁱ^oⁿ⁽^N^O^AA)^.^dat^aⁱⁿ^creatⁱⁿ^g^an^{d u}^pdatⁱⁿ^g^t^h^{e f}^l^{ood m}^a^ps^{. In}^u^pdatⁱⁿ^g^an^d
^Dir^ecto^r^sh^{all: (}¹⁾^estab^lish^stan^d^a^r^d^{s to}^en^su^r^e^th^{e ad}^eq^u^acy^m^aⁱⁿ^tainⁱⁿ^g^m^a^p^s^{, th}^{e d}ⁱ^r^ecto^r^sh^{all estab}^lish^stan^d^a^r^d^{s to}
^an^{d con}^sⁱ^s^t^eⁿ^c^y^of^m^a^ps^an^{d m}^e^t^h^ods^of^dat^a^col^l^ectⁱ^oⁿ^an^d^en^s^u^{re t}^h^at^m^a^ps^{are adequ}^a^t^e^f^o^{r f}^l^{ood ri}^s^k^det^e^rmⁱⁿ^atⁱ^oⁿ^s^an^d
^an^aly^s^{is; (}²⁾^gⁱ^v^e^p^r^io^r^ity^to^u^p^d^a^tin^g^m^a^p^s^o^f^co^{astal ar}^eas^u^s^{ed by}^s^t^{ate an}^{d local g}^o^v^e^rn^m^eⁿ^t^s^.^A^u^th^orizes^th^e
^af^f^{ected by}^Hu^rrican^es^Katrin^{a an}^{d R}^{ita in}^{order to prov}^ide^{appropriation}^of^{$400 m}^illion^f^o^{r each}^fⁱ^s^{cal y}^ears²⁰⁰⁷
^g^uⁱ^dan^{ce w}^ith^res^p^{ect to h}^u^r^rican^{e recov}^e^ry^ef^f^o^rts^;^an^{d (3) in}^t^h^r^o^ugh^2012.
ⁱ^{ki/CRS-RL33450}^c^o^nsul^t^a^tⁱ^o^{n w}ⁱ^t^h^t^h^e^T^e^c^hni^c^a^l^M^a^p^pⁱ^{ng A}^d^vi^so^r^y^Co^uncⁱ^l^,
^g/w^s^u^bmⁱ^t^{a report}^t^o^C^oⁿ^g^r^es^s^t^h^at^des^c^ri^bes^t^h^{e f}^l^{ood m}^a^p
^s^.or^m^o^d^e^rn^izatioⁿ^activ^{ities b}^y^J^uⁿ^e³⁰^o^f^each^y^{ear. A}^u^th^o^r^izes
^le^ak^th^{e appropriation}^of^{$300 m}^illion^f^o^{r f}ⁱ^s^{cal y}^ears^{2007 th}^rou^g^h
^2012.
^://wiki
^h^ttp^N^on-M^andat^or^y^Par^tⁱ^cⁱ^patⁱ^{on i}ⁿ^500-Y^e^ar^N^o^com^p^arabl^e^provⁱ^sⁱ^oⁿ^.^Itⁱ^sⁿ^o^t^m^aⁿ^d^at^ory^f^o^{r i}ⁿ^di^vⁱ^du^al^s^w^h^{o res}ⁱ^{de i}ⁿ^t^h^{e 500-}^y^ear^f^l^oodpl^aiⁿ^t^o^obt^aiⁿ^f^l^{ood i}ⁿ^s^u^ran^{ce. Bot}^h^t^h^{e di}^rect^{or an}^d
^Fl^oodpl^aiⁿ^f^e^d^e^r^a^{l/state en}^{tities f}^o^r^len^dⁱⁿ^g^r^e^g^u^l^atioⁿ^,^af^ter^coⁿ^s^u^ltatioⁿ
^w^ith^th^{e Fed}^e^r^a^{l Fin}^aⁿ^c^{ial I}ⁿ^stitu^tioⁿ^s^Ex^amⁱⁿ^atioⁿ^Co^uⁿ^c^il,
^sh^{all, b}^y^r^e^g^u^l^atioⁿ^,^r^e^q^u^ir^{e r}^e^g^u^l^ated^len^dⁱⁿ^gⁱⁿ^stitu^tioⁿ^s^to
ⁿ^o^tif^y^th^{e pu}^rch^a^s^e^{r an}^{d th}^{e s}^e^rv^{icer of}^th^{e m}^o^rtg^a^g^e^loan^th^at
^s^u^ch^propert^yⁱ^s^l^o^cat^{ed i}ⁿ^{a 500-}^y^{ear f}^l^oopl^aiⁿ^.^Mort^g^a^g^e
^len^d^ers^m^u^s^t^als^o^gⁱ^v^eⁿ^o^{tice to m}^o^rtg^a^g^ees^th^{at th}^ey^resⁱ^de
^w^ithⁱⁿ^{a 500-}^y^{ear f}^l^oodplain^.^Cⁱ^v^{il pen}^a^lties^{are prov}^{ided f}^o^r
^f^a^ilu^r^e^to^co^m^p^ly^w^ith^th^{e n}^o^{tice r}^e^q^u^ir^em^en^ts.

^Provi^sⁱ^on^H.R^.⁴⁹⁷³^[as^p^l^aced^on^Uⁿⁱ^oⁿ^C^a^l^eⁿ^d^{er, 4/}^6/^06]^Sena^t^e^Co^m^mⁱ^t^t^{ee B}^ill^[A^p^p^r^oved^on^5/^25/^06]
^S^pon^s^o^r^Repres^{entative B}^a^k^e^r^S^{enator Shelby}
^Reitera^tioⁿ^o^f^FEMA^Dⁱ^r^e^c^t^{s FE}^M^A^und^e^r^t^h^e^B^unni^ng-B^e^r^e^ut^e^r^-B^l^u^m^e^na^ue^r^Fl^o^o^d^Dir^{ects FEMA}^to^{: (}¹⁾^estab^lis^h^an^appeals^proces^s^th^rou^g^h
^Res^pons^{ibility Under}^In^s^u^ran^{ce R}^e^f^o^rm^A^c^t^of^{2004 (“}^R^e^f^o^rm^A^c^t^of^{2004”) t}^o^:⁽¹⁾^w^hⁱ^c^h^polⁱ^c^y^h^ol^{der m}^a^y^appeal^t^h^{e cl}^ai^m^s^{, proof}^s^of^l^o^s^s^,^an^d
^{2004 Ref}^o^r^m^Act^es^tablis^h^an^appeals^proces^s^th^{at policy}^h^olders^can^u^s^{e to}^lo^{ss estim}^{ates r}^e^latin^g^to^NFI^P^cl^aim^s^decisⁱ^on^s^;^{(2) con}^tin^u^e^to
^res^o^l^v^{e deci}^sⁱ^on^s^of^t^h^{e di}^rect^{or rel}^a^tⁱⁿ^g^t^o^cl^ai^m^s^{, proof}^s^of^w^o^rk^w^ith^th^{e in}^s^u^ran^{ce in}^du^s^t^ry^{, s}^t^{ate in}^s^u^ran^{ce reg}^u^l^ators^,
^lo^{ss, an}^d^lo^{ss estim}^{ates; an}^d⁽²⁾^coⁿ^tin^u^e^to^w^o^r^k^w^ith^th^e^an^d^o^t^h^e^rⁱⁿ^ter^e^sted^p^a^r^{ties to}^im^p^l^em^en^{t p}^r^ev^io^u^s^ly^d^e^v^e^lo^p^e^d
ⁱⁿ^s^u^ran^{ce in}^du^s^t^ry^{, s}^t^{ate in}^s^u^ran^{ce reg}^u^l^ators^,^an^{d oth}^e^r^mⁱⁿⁱ^m^u^m^trainⁱⁿ^g^an^{d edu}^cation^s^t^an^dards^f^o^{r in}^s^u^ran^{ce ag}^en^ts
ⁱⁿ^ter^e^sted^p^a^r^{ties to}^im^p^l^em^en^{t p}^r^ev^io^u^s^ly^d^e^v^e^lo^p^e^d^mⁱⁿⁱ^m^u^m^w^h^{o s}^e^l^l^f^l^{ood i}ⁿ^s^u^ran^{ce pol}ⁱ^cⁱ^e^s^.^R^e^quⁱ^r^es^t^h^{e di}^rect^{or t}^o
^trainⁱⁿ^g^an^{d edu}^cation^s^t^an^dards^f^o^{r in}^s^u^ran^{ce ag}^en^ts^w^h^{o s}^e^ll^su^b^m^{it a r}^e^p^o^r^{t to}^Coⁿ^g^r^{ess n}^o^{t later}^th^an^th^r^{ee m}^oⁿ^t^h^s^af^ter
^f^l^{ood i}ⁿ^s^u^ran^{ce pol}ⁱ^cⁱ^e^s^.^R^e^quⁱ^r^es^{a report}^t^o^C^oⁿ^g^r^es^s^wⁱ^t^hⁱⁿ^en^actm^eⁿ^t^of^th^{e act detailin}^g^th^{e prog}^res^s^m^a^{de tow}^a^rds
^si^{x m}^o^nt^{hs d}^e^sc^rⁱ^bⁱ^{ng FE}^M^A^{’s i}^m^p^l^e^m^eⁿ^t^a^tⁱ^o^{n o}^f^p^r^o^vⁱ^sⁱ^o^{ns i}ⁿ^im^plem^en^tin^g^each^prov^is^ion^of^th^{e R}^e^f^o^rm^A^c^{t of}^2004.
^t^h^{e R}^e^f^o^rm^A^c^t^of^2004.^R^e^qu^ires^th^{e director to s}^u^bm^{it a report to C}^oⁿ^g^r^es^s^ev^ery³⁰
^day^s^det^aⁱ^lⁱⁿ^g^t^h^{e prog}^res^s^m^a^{de on}ⁱ^m^pl^em^en^tⁱⁿ^g^t^h^{e appeal}^s
^proces^s^.
ⁱ^{ki/CRS-RL33450}^Remo^va^{l o}^f^Limita^tioⁿ^s^oⁿ^{No com}^p^{arable prov}^is^ion^.^Stat^{es ar}^{e n}^o^loⁿ^g^e^r^p^r^o^h^ib^ited^f^r^o^m^coⁿ^t^rⁱ^b^u^tin^g^m^o^r^e^th^an
^g/w^St^at^{e C}^ont^rⁱ^butⁱ^ons^f^o^r^{50% of}^th^{eir ow}ⁿ^f^uⁿ^d^s^{to en}^s^u^{re th}^{at th}^{eir m}^a^ps^{are u}ⁿ^d^ated.
^s^.or^updatⁱ^{ng f}^l^{ood m}^aps
^le^ak^T^e^s^tⁱ^{ng N}^e^w^Fl^ood-^No^co^m^p^ar^ab^{le p}^r^o^v^isioⁿ^.^Req^u^ir^{es th}^{e NFI}^P^to^allo^w^testin^g^o^f^an^yⁿ^e^w^ty^p^e^o^f^f^l^o^o^d
^://wiki^Pr^oofⁱ^{ng T}^echnol^ogi^es^p^r^o^o^fⁱⁿ^g^techⁿ^o^lo^g^y^to^d^e^ter^mⁱⁿ^{e if}^th^{e n}^e^w^ad^v^aⁿ^cem^en^t^co^m^p^{lies w}^ith^NFI^P^stan^d^a^r^d^s.
^h^ttp
^N^a^{tional L}^{evee Inventor}^y^Req^u^ir^{es th}^{e Dir}^ecto^r^{, in}^coⁿ^s^u^ltatioⁿ^w^ith^th^{e Secr}^etar^y^o^f^th^e^{No com}^p^{arable prov}^is^ion^.
^A^r^m^y^{, to}^m^aⁱⁿ^tain^an^d^p^u^b^lish^anⁱⁿ^v^eⁿ^t^o^r^y^o^f^lev^{ees in}^th^e
^Un^{ited States}^.
^Repor^t^{on Fi}^nanci^a^l^Re^q^uⁱ^r^e^s^FE^M^A^t^o^sub^mⁱ^t^se^mⁱ^a^nnua^l^r^e^p^o^r^t^s^t^o^Co^ngr^e^{ss o}ⁿ^Re^q^uⁱ^r^e^s^t^h^e^dⁱ^r^e^c^t^o^r^t^o^sub^mⁱ^t^a^nnua^l^r^e^p^o^r^t^s^t^o^Co^ngr^e^{ss o}ⁿ
^St^at^us^of^t^h^{e Pr}^ogr^am^t^h^e^fi^na^ncⁱ^a^l^st^a^t^{us o}^f^t^h^e^p^r^o^g^r^a^m^,ⁱⁿ^c^l^udⁱ^{ng fi}^na^ncⁱ^a^l^st^a^t^{us o}^f^th^{e o}^p^e^ratioⁿ^s^{, activ}^{ities, b}^u^d^g^{ets, receip}^t^{s, an}^d^ex^p^eⁿ^d^itu^{res o}^f
^t^h^{e N}^a^tⁱ^oⁿ^a^l^F^l^{ood In}^s^u^ran^{ce F}^uⁿ^d^(N^F^I^F⁾^an^{d cu}^rren^t^an^d^th^{e NFI}^P^{. Each}^r^e^p^o^r^{t sh}^{all b}^e^su^b^m^ittedⁿ^o^{t later}^th^an^th^r^e^e
^proj^{ected lev}^e^ls^of^claim^s^{, prem}^iu^m^receipts^,^ex^pen^s^es^{, an}^d^m^oⁿ^t^h^s^f^o^llowⁱⁿ^g^th^{e en}^{d of}^each^fⁱ^s^{cal y}^ear.
^b^o^r^r^o^wⁱ^{ng und}^e^r^t^h^e^p^r^o^g^r^a^m^.
^St^{udy of}^Pr^e-FIRM^Req^u^ir^{es th}^{e Go}^v^e^rⁿ^m^eⁿ^t^A^cco^uⁿ^t^ab^ility^Of^fⁱ^{ce (}^G^A^O⁾^to^R^e^qu^ires^th^{e Secretary}^of^th^{e T}^r^eas^u^r^y^{to con}^d^u^c^{t a s}^t^u^d^y^an^d
^Pr^oper^tⁱ^e^s^con^d^u^c^t^s^t^u^d^y^of^t^h^{e n}^u^m^{ber an}^{d cos}^t^of^pre-^F^I^R^M^propertⁱ^e^s^,^su^b^m^{it a r}^e^p^o^r^{t to}^Coⁿ^g^r^{ess o}ⁿ^th^{e r}^e^m^aⁱⁿⁱⁿ^g^p^r^e-^FI^RM
^th^{e an}^ticip^ated^{rate at w}^h^ich^su^ch^p^r^o^p^e^{rties w}^{ill cease to}^b^e^stru^ctu^r^{es th}^{at are ex}^p^licitly^receivⁱⁿ^g^dⁱ^sco^uⁿ^t^ed^p^r^em^iu^m
^c^o^ve^r^e^d^,^aⁿ^d^t^h^e^e^ffe^c^t^{s o}^fⁱ^m^p^l^e^m^eⁿ^tⁱ^{ng t}^h^e^B^unni^ng-^r^a^te^s.^T^h^e^stud^y^m^u^{st inc}^l^ud^e^the^histo^r^ic^a^l^b^a^{sis fo}^r^the
^Bereu^t^er-^B^l^u^m^eⁿ^a^u^e^{r F}^l^{ood In}^s^u^ran^{ce R}^e^f^o^rm^A^c^t^of²⁰⁰⁴^receipts^of^s^u^ch^s^u^bs^idy^an^{d w}^h^eth^e^{r s}^u^ch^s^u^bs^idy^h^a^s^ou^tlas^t^ed
^(“^R^e^f^o^rm^A^c^t^of^{2004”) on}^cov^e^rag^e^of^pre-^F^I^R^M^propertⁱ^e^sⁱ^t^s^pu^rpos^e.

^uⁿ^d^{er th}^{e prog}^ram^.

^Provi^sⁱ^on^H.R^.⁴⁹⁷³^[as^p^l^aced^on^Uⁿⁱ^oⁿ^C^a^l^eⁿ^d^{er, 4/}^6/^06]^Sena^t^e^Co^m^mⁱ^t^t^{ee B}^ill^[A^p^p^r^oved^on^5/^25/^06]
^S^pon^s^o^r^Repres^{entative B}^a^k^e^r^S^{enator Shelby}
^G^A^O^St^{udy on W}^rⁱ^t^e^Y^our^No^co^m^p^ar^ab^{le p}^r^o^v^isioⁿ^.^Req^u^ir^{es GA}^{O to}^coⁿ^d^u^c^{t a stu}^d^y^an^d^su^b^m^{it r}^e^p^o^r^{t to}
^Own⁽^W^YO)^Po^licies^C^oⁿ^g^r^es^s^on^th^{e f}^ees^an^{d ex}^pen^s^es^{paid to W}^{YO in}^s^u^rers^{, NFIP}
^con^t^ractors^,^an^{d FEMA}^.
^{GAO Au}^d^{it o}^f^N^F^IP^No^co^m^p^ar^ab^{le p}^r^o^v^isioⁿ^.^Req^u^ir^{es GA}^{O to}^au^d^{it th}^{e f}ⁱⁿ^aⁿ^c^{ial tr}^an^sactioⁿ^s^o^f^th^{e NFI}^P
^Rela^tin^g^to^Hu^rricaⁿ^e^rel^a^tⁱⁿ^g^t^o^H^u^rri^can^{e K}^a^t^rⁱⁿ^{a an}^{d ot}^h^e^{r h}^u^r^ri^can^es^of^t^h^{e 2005}
^Ka^trin^a^s^eas^on^.
^G^A^O^Repor^t^on^No^co^m^p^ar^ab^{le p}^r^o^v^isioⁿ^.^Req^u^ir^{es GA}^{O to}^coⁿ^d^u^c^{t a stu}^d^y^an^d^su^b^m^{it a r}^e^p^o^r^{t to}
^Expandi^{ng N}^F^IP^C^oⁿ^g^r^es^s^on^t^h^{e ef}^f^ect^s^t^h^at^ex^pan^dⁱⁿ^g^f^l^{ood i}ⁿ^s^u^ran^{ce bey}^oⁿ^d
^th^{e cu}^rren^t^caps^(cov^erag^{e lim}^its^{) m}ⁱ^g^h^t^h^a^v^e^on^th^{e priv}^ate
ⁱⁿ^s^u^ran^{ce m}^a^rk^et.
^G^A^O^Eval^uatⁱ^{on of}^t^h^e^No^co^m^p^ar^ab^{le p}^r^o^v^isioⁿ^.^Req^u^ir^{es GA}^{O to}^s^u^bm^{it a report to C}^oⁿ^g^r^es^s^th^{at an}^aly^zes
ⁱ^{ki/CRS-RL33450}^NF^I^P^w^h^eth^e^r^th^{e NFI}^P^h^a^{s f}^u^lf^illed^{its p}^u^r^p^o^s^{e, u}ⁿ^d^u^l^y^b^u^r^d^en^ed^o^r
^g/w^b^eⁿ^e^f^itted^tax^p^ay^er^{s, an}^d^m^a^k^e^{s r}^eco^m^m^eⁿ^d^atioⁿ^s^f^o^r^legⁱ^s^l^ativ^{e or adm}ⁱⁿⁱ^s^t^rativ^{e action}^as^m^a^y^{be n}^eces^s^a^ry^to
^s^.or^en^s^u^{re it operates}ⁱⁿ^{a m}^o^{re ef}^f^ectiv^{e an}^{d ef}^fⁱ^cien^{t m}^aⁿⁿ^e^r.
^le^ak
^://wiki^G^A^O^St^{udy on D}ⁱ^r^ect^Pur^c^has^{e i}ⁿ^N^on-^No^co^m^p^ar^ab^{le p}^r^o^v^isioⁿ^.^Req^u^ir^{es GA}^{O to}^stu^d^y^th^{e ef}^f^{ects o}^f^allo^wⁱⁿ^gⁱⁿ^dⁱ^vⁱ^d^u^{als f}^r^o^mⁿ^oⁿ^-^participatin^g^com^m^uⁿ^ities^{to pu}^rch^a^s^e^f^l^{ood in}^s^u^ran^c^e
^h^ttp^Pa^rticip^a^tin^g^t^h^r^o^{ugh t}^h^e^N^F^I^P^{’s d}ⁱ^r^e^c^t^p^r^o^g^r^a^m^.
^Co^mmuⁿ^ities
^Ext^e^ndi^{ng M}^andat^or^y^R^e^qu^ires^GA^{O to s}^t^u^d^y^th^{e reg}^u^l^atory^,^fⁱⁿ^aⁿ^c^{ial an}^{d econ}^o^mⁱ^c^Req^u^ir^{es th}^{e Dir}^ecto^r^o^f^FEMA^to^issu^{e f}ⁱⁿ^a^{l r}^e^g^u^l^atioⁿ^s
^Pur^c^has^{e Requi}^r^e^m^e^nt^t^o^im^p^a^c^t^{s (}ⁱ^.^e^.^,^c^o^{sts o}^f^ho^m^e^-o^wⁿ^e^r^ship^,^a^c^t^ua^rⁱ^a^l^so^und^ne^{ss o}^f^es^tablis^hⁱⁿ^g^{a rev}ⁱ^s^e^{d def}ⁱⁿ^ition^of^s^p^{ecial f}^l^{ood h}^azards^areas
^Pro^p^e^{rties Lo}^ca^ted^p^r^o^g^r^a^m^,^len^d^er^co^m^p^lian^ce)^{, ef}^f^ectiv^en^{ess an}^d^f^easib^ility^o^f^th^{at in}^clu^d^es^both^areas^prev^iou^s^ly^iden^tif^{ied as}^h^a^vⁱⁿ^g^s^p^ecial
^Behi^{nd St}^r^u^ct^ur^al^Fl^ood^am^en^diⁿ^g^t^h^{e F}^l^{ood D}ⁱ^s^a^s^t^{er Prot}^ectⁱ^oⁿ^A^c^t^of^{1973 t}^o^ex^t^eⁿ^d^f^l^{ood h}^azards^an^{d areas}^of^resⁱ^du^{al ris}^k^behⁱⁿ^d^lev^ees^{, dam}^s^,
^Pr^ot^ectⁱ^{on Sys}^t^em^s^m^aⁿ^d^at^ory^f^l^{ood i}ⁿ^s^u^ran^{ce cov}^e^rag^e^pu^rch^a^s^e^requⁱ^r^em^en^t^s^t^o^an^{d oth}^e^{r m}^aⁿ^-^m^a^{de s}^t^ru^ctu^r^es^{. R}^e^sⁱ^du^{al ris}^k^areas^cou^l^{d be}
^properties^{located in}^areas^th^{at w}^o^u^l^{d h}^a^v^e^s^p^{ecial f}^l^ood^su^b^j^{ect to}^th^{e m}^aⁿ^d^ato^r^y^p^u^r^c^h^a^{se r}^e^q^u^ir^em^en^{ts b}^u^{t o}ⁿ^ly^af^ter
^h^azards^bu^{t f}^o^{r th}^{e ex}^is^ten^{ce of}^{a s}^t^ru^ctu^r^{al protection}^s^y^s^t^em^.^th^{e Director com}^p^letes^th^{e m}^a^ppin^g^of^{all res}ⁱ^du^{al ris}^k^areasⁱⁿ
^th^{e Un}^{ited States}^.
^Ext^e^ndi^{ng M}^andat^or^y^R^e^qu^ires^{a s}^t^u^d^y^of^th^{e im}^{pact, ef}^f^ectiv^en^es^s^,^an^{d bas}ⁱ^s^uⁿ^d^er^Req^u^ir^{es th}^{at state-}^ch^ar^ter^e^d^len^dⁱⁿ^gⁱⁿ^stitu^tioⁿ^s^sh^{all b}^e
^Pur^c^has^{e Requi}^r^e^m^e^nt^t^o^th^{e Co}ⁿ^s^titu^tioⁿ^o^f^th^{e Un}^ited^{States f}^o^r^am^en^dⁱⁿ^g^th^{e Flo}^o^d^s^u^bj^ect^t^o^N^F^IP’^s^m^aⁿ^d^at^ory^f^l^{ood i}ⁿ^s^u^ran^{ce pu}^rch^a^s^e
^Pro^p^e^{rties W}^ith^Dⁱ^s^a^s^t^{er Prot}^ectⁱ^oⁿ^A^c^t^of^{1973 t}^o^ex^t^eⁿ^d^N^F^IP’^s^m^aⁿ^d^at^ory^requ^irem^en^{t n}^o^{later th}^an^Decem^{ber 31, 2008.}

^M^o^r^t^gages^Is^s^u^{ed By}^pu^rch^a^s^e^requ^irem^en^ts^{to properties}ⁱⁿ^s^p^{ecial f}^l^{ood h}^azard
^St^at^e-C^har^t^e^r^e^{d L}^e^ndi^ng^areas^(SFHA⁾^w^ith^m^o^rtg^a^g^e^s^is^s^u^{ed by}^s^t^ate-^ch^{artered len}^dⁱⁿ^g
^Iⁿ^stitu^tioⁿ^sⁱⁿ^stitu^tioⁿ^s^.

^Provi^sⁱ^on^H.R^.⁴⁹⁷³^[as^p^l^aced^on^Uⁿⁱ^oⁿ^C^a^l^eⁿ^d^{er, 4/}^6/^06]^Sena^t^e^Co^m^mⁱ^t^t^{ee B}^ill^[A^p^p^r^oved^on^5/^25/^06]
^S^pon^s^o^r^Repres^{entative B}^a^k^e^r^S^{enator Shelby}
^Pr^{emium Adjus}^t^ment^N^o^com^p^arabl^e^provⁱ^sⁱ^oⁿ^.^R^e^quⁱ^r^es^t^h^at^af^t^e^{r u}^pdatⁱⁿ^g^an^y^f^l^{ood i}ⁿ^s^u^ran^{ce m}^a^{p t}^h^e
^h^o^m^e^owⁿ^e^{r located on}^th^{at m}^a^{p cou}^l^{d requ}^es^{t a prem}^iu^m^rate
^adj^u^s^t^m^eⁿ^t^{to accu}^rately^ref^l^{ect th}^{e cu}^rren^{t ris}^k^of^f^l^{ood to s}^u^ch
^propert^y^.
^{Replacement C}^o^s^t^Req^u^ir^{es th}^{e Dir}^ecto^r^to^{: (}¹⁾^issu^{e r}^e^g^u^l^atioⁿ^s^to^clar^if^y^th^e^{No com}^p^{arable prov}^is^ion^.
^Pr^ovi^sⁱ^{on, For}^m^s^,^and^ap^p^licab^ility^o^f^rep^l^acem^en^{t co}^{st co}^v^e^rag^e^uⁿ^d^{er th}^{e NFIP}^{; (2}⁾
^Polⁱ^{cy L}^anguage^r^e^vi^se^aⁿ^y^r^e^gul^a^tⁱ^o^ns,^fo^r^m^s,^no^tⁱ^c^e^s^,^gui^d^a^nc^e^,^aⁿ^d
^p^u^b^licatioⁿ^s^to^m^o^r^e^clear^ly^d^e^scrⁱ^b^e^th^{e m}^eanⁱⁿ^g^o^f^f^u^{ll co}^st
^of^{repair or replacem}^en^{t u}ⁿ^d^{er th}^{e replacem}^en^{t cos}^t^cov^e^rag^e^;
^aⁿ^d⁽³⁾^r^e^vi^se^t^h^e^l^a^ngua^geⁱⁿ^fl^{ood i}ⁿ^s^u^ran^{ce pol}ⁱ^cⁱ^e^s
^r^e^ga^r^dⁱ^{ng r}^a^tⁱ^{ng a}ⁿ^d^c^o^ve^r^a^ge^,^suc^h^a^s^c^l^a^ssi^fi^c^a^tⁱ^o^{n o}^f
^bu^ildin^g^s^{, bas}^e^m^eⁿ^t^s^,^craw^{l s}^p^aces^{, detach}^{ed g}^a^rag^e^s^,
^en^clos^u^r^es^below^elev^{ated bu}^ildin^g^s^{, an}^{d replacem}^en^{t cos}^t^{, to}
ⁱ^{ki/CRS-RL33450}^m^a^keⁱ^t^c^o^nsi^s^t^e^nt^wⁱ^t^h^l^a^ngua^ge^use^d^wⁱ^d^e^l^yⁱⁿ^ho^m^e^o^w^ne^r^s
^g/w^p^o^licies.
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^le^ak^Aut^horⁱ^z^atⁱ^{on f}^o^r^St^af^f^Fundi^ng^A^u^t^h^ori^zes^t^o^{be appropri}^a^t^e^{d s}^u^ch^s^u^m^s^as^m^a^y^{be n}^eces^s^a^ry^to^hⁱ^r^e^ad^d^itioⁿ^a^{l staf}^f^to^car^r^y^o^u^{t th}^{e r}^e^sp^oⁿ^sib^{ilities o}^f^th^e^{No com}^p^{arable prov}^is^ion^.
^://wiki^di^rect^{or pu}^rs^u^aⁿ^t^t^o^t^hⁱ^s^act^.
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^Source:^T^h^{e C}^oⁿ^g^r^es^sⁱ^on^{al R}^e^s^earch^Serv^ice.