Sec. 102. Flood insurance affordability program
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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: The Administrator shall carry out a program under this section to provide financial assistance, through State programs carried out by participating States, for eligible low-income households residing in eligible properties to purchase policies for flood insurance coverage made available under this title. Participation in the program under this section shall be voluntary on the part of a State or consortium of States.
Each participating State shall delegate to a State agency or nonprofit organization the responsibilities for administrating the State’s program under this section. During any fiscal year, assistance under the program under this section may be provided only for a household that has an income, as determined for such fiscal year by the participating State in which such household resides, that is less than the income limitation established for such fiscal year for purposes of the State program by the participating State, except that— assistance under the program under this section may not be provided for a household having a income that exceeds the greater of— the amount equal to 150 percent of the poverty level for such State; or the amount equal to 60 percent of the median income of households residing in such State; and a State may not exclude a household from eligibility in a fiscal year solely on the basis of household income if such income is less than 110 percent of the poverty level for the State in which such household resides.
In verifying income eligibility for purposes of paragraph (1), the participating State may apply procedures and policies consistent with procedures and policies used by the State agency administering programs under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq.), under title XX of the Social Security Act ( 42 U.S.C. 1397 et seq.), under subtitle B of title VI of the Omnibus Budget Reconciliation Act of 1981 ( 42 U.S.C. 9901 et seq.; relating to community services block grant program), under any other provision of law that carries out programs which were administered under the Economic Opportunity Act of 1964 ( 42 U.S.C. 2701 et seq.) before August 13, 1981, or under other income assistance or service programs (as determined by the State).
For each fiscal year, each participating State shall certify to the Administrator compliance of households who are to be provided assistance under the State program during such fiscal year with the income requirements under paragraph (1). Assistance under the program under this section may be provided only for a residential property— that has 4 or fewer residences; that is owned and occupied by an eligible household; for which a base flood elevation is identified on a flood insurance rate map of the Administrator that is in effect; for which such other information is available as the Administrator considers necessary to determine the flood risk associated with such property; and that is located in a community that is participating in the national flood insurance program.
Under the program under this section, a participating State shall elect to provide financial assistance for eligible households in one of the following forms: By establishing a limitation on the rate of increases in the amount of chargeable premiums paid by eligible households for flood insurance coverage made available under this title. By establishing a limitation on the amount of chargeable premiums paid by eligible households for flood insurance coverage made available under this title.
Under the program under this section, a participating State shall, on a fiscal year basis and at the time and in the manner provided by the Administrator— identify for the Administrator the eligible households residing in the State who are to be provided assistance under the State program during such fiscal year; and notify the Administrator of the type and levels of assistance elected under subsection
(f)to be provided under the State program with respect to such eligible households residing in the State. Under the program under this section, in each fiscal year the Administrator shall, notwithstanding section 1308, make flood insurance coverage available for purchase by households identified as eligible households for such fiscal year by a participating State pursuant to subsection
(e)at chargeable premium rates that are discounted by an amount that is based on the type and levels of assistance elected pursuant to subsection
(f)by the participating State for such fiscal year. In the case of an eligible household for which assistance under the program under this section is provided with respect to a policy for flood insurance coverage, the annual billing statement for such policy shall include statements of the following amounts: The estimated risk premium rate for the property under section 1307(a)(1). If applicable, the estimated risk premium rate for the property under section 1307(a)(2). The chargeable risk premium rate for the property taking into consideration the discount pursuant to subsection (h). The amount of the discount pursuant to subsection
(h)for the property. The number and dollar value of claims filed for the property, over the life of the property, under a flood insurance policy made available under the Program and the effect, under this Act, of filing any further claims under a flood insurance policy with respect to that property. Notwithstanding section 1308, for each fiscal year in which flood insurance coverage under this title is made available for properties in a participating State at chargeable premium rates that are discounted pursuant to subsection (f), the Administrator shall impose and collect a State affordability surcharge on each policy for flood insurance coverage for a property located in such participating State that is
(A)not a residential property having 4 or fewer residences, or
(B)is such a residential property but is owned by a household that is not an eligible household for purposes of such fiscal year. The amount of the State affordability surcharge imposed during a fiscal year on each such policy for a property in a participating State shall be— sufficient such that the aggregate amount of all such State affordability surcharges imposed on properties in such participating State during such fiscal year is equal to the aggregate amount by which all policies for flood insurance coverage under this title sold during such fiscal year for properties owned by eligible households in the participating State are discounted pursuant to subsection (f); and the same amount for each property in the participating State being charged such a surplus. The provision of assistance under the program under this section with respect to any property and any limitation on premiums or premium increases pursuant to subsection
(f)for the property shall not affect the applicability or amount of any surcharge under section 1308A for the property, of any increase in premiums charged for the property pursuant to section 1310A(c), or of any equivalency fee under section 1308B for the property. For purposes of this section, the following definitions shall apply: The term participating State means, with respect to a fiscal year, a State that is participating in the program under this section for such fiscal year. The term eligible household means, with respect to a fiscal year and a participating State, a household that has an income that is less than the amount of the income limitation for the fiscal year established for purposes of the State program of such participating State pursuant to subsection (g)(1). The term poverty level ’ means, with respect to a household in any State, the income poverty line as prescribed and revised at least annually pursuant to section 673(2) of the Community Services Block Grant Act ( 42 U.S.C. 9902(2) ), as applicable to such State. The term State shall include a consortium of States established for purposes of administrating the program under this section with respect to the member States of the consortium. The term State program means a program carried out in compliance with this section by a participating State in conjunction with the program under this section of the Administrator. The Administrator shall issue such regulations as may be necessary to carry out the program under this section. .
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Sec. 102
Flood insurance affordability program
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