Sec. 40104. Strengthening resilience under national flood insurance program

898 words·~4 min read·/bill/117/hr/5376/rh/section-40104

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Subject only to paragraphs

(2)and

(3)and notwithstanding any other provision of law, all indebtedness of the Administrator of the Federal Emergency Management Agency under any notes or other obligations issued pursuant to section 1309(a) of the National Flood Insurance Act of 1968 (42 U.S.C. 7 4016(a)) and section 15(e) of the Federal Insurance Act of 1956 ( 42 U.S.C. 2414(e) ), and outstanding as of the date of the enactment of this Act, is hereby canceled, the Administrator and the National Flood Insurance Fund are relieved of all liability to the Secretary of the Treasury under any such notes or other obligations, including for any capitalized interest due under such notes or other obligations and any other fees and charges payable in connection with such notes and obligations, and the total amount of notes and obligations issued by the Administrator pursuant to such section shall be considered to be reduced by such amount for purposes of the limitation on such total amount under such section. Effective on and after October 1, 2031, the Administrator of the Federal Emergency Management Agency shall use any savings accruing from the cancellation of debt under paragraph (1), including any amounts of interest payments avoided from such cancellation, only for deposit in and use under the National Flood Insurance Reserve Fund under section 1310A of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4017A ). The amount of the indebtedness canceled under paragraph

(1)may be treated as a public debt of the United States. —In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,000,000,000, to remain available until expended, for necessary expenses for flood hazard mapping and risk analysis, which shall be in addition to, and shall supplement— amounts otherwise available for those purposes, including amounts appropriated to the National Flood Insurance Fund established under section 1310 of such Act ( 42 U.S.C. 4017 ); and any funds provided to the Administrator by States and local governments under section 1360(f)(2) of such Act ( 42 U.S.C. 4101(f)(2) ). In addition to amounts otherwise available, there is appropriated to the Administrator of the Federal Emergency Management Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2026, to carry out a means-tested program under which the Administrator provides assistance to eligible policyholders in the form of graduated discounts for insurance costs with respect to covered properties. The Administrator shall use funds provided under this subsection to establish graduated discounts available to eligible policyholders under this subsection, with respect to covered properties, which may be based on the following factors: The percentage by which the household income of the eligible policyholder is equal to, or less than, 120 percent of the area median income for the area in which the property to which the policy applies is located. The number of eligible policyholders participating in the program authorized under this subsection. The availability of funding. Any other factor that the Administrator finds reasonable and necessary to carry out the purposes of this subsection With respect to the amount of the discounts provided under this subsection in a fiscal year, and any administrative expenses incurred in carrying out this subsection for that fiscal year, the Administrator shall, from amounts made available to carry out this subsection for that fiscal year, deposit in the National Flood Insurance Fund established under section 1310 of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4017 ) an amount equal to those discounts and administrative expenses, except to the extent that section 1310A of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4017a ) applies to any portion of those discounts or administrative expenses, in which case the Administrator shall deposit an amount equal to those amounts to which such section 1310A applies in the National Flood Insurance Reserve Fund established under such section 1310A. Not later than 21 months after the date of the enactment of this section, the Administrator shall issue interim guidance to implement this subsection which shall expire on the later of— the date that is 60 months after the date of the enactment of this section; or the date on which a final rule issued to implement this subsection takes effect. In this subsection: The term Administrator means the Administrator of the Federal Emergency Management Agency. The term covered property means— a primary residential dwelling designed for the occupancy of from 1 to 4 families; or personal property relating to a dwelling described in clause (i). The term eligible policyholder means a policyholder with a household income that is not more than 120 percent of the area median income for the area in which the property to which the policy applies is located. The term insurance costs means, with respect to a covered property for a year— risk premiums and fees estimated under section 1307 of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4014 ) and charged under section 1308 of such Act ( 42 U.S.C. 4015 ); surcharges assessed under sections 1304 and 1308A of such Act ( 42 U.S.C. 4011 , 4015a); and any amount established under section 1310A(c) of such Act ( 42 U.S.C. 4017a ).

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