Sec. 2. Voluntary buyouts in lieu of flood claims
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Section 1312 of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4019 ) is amended by adding at the end the following new subsection: The Administrator may provide for expedited mitigation assistance for cases in which a policyholder making a claim with respect to a property expresses interest in a voluntary buyout in lieu of a claims payment. Such determinations shall apply regardless of location of a property in relation to an area designated as an area having special flood hazards.
The Administration may provide expedited assistance under this subsection with respect to a property only if both of the following requirements have been met: The insured property— has been identified as a repetitive loss or severe repetitive loss property; has been designated by the participating community as substantially damaged; or would otherwise be filing a claim for the maximum level of coverage. The relevant community participating in the national flood insurance program agrees to take title to the property in accordance with the terms under section 404(b) of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170c(b) ) and has prioritized mitigation to such property or to the area in which such property is located through an appropriate action or plan, as determined by the Administrator, including— a repetitive loss area analysis plan conducted for and consistent with criteria for the community rating system authorized under section 1315(b) ( 42 U.S.C. 4022(b) ); a locally adopted plan completed in compliance with requirements of section 1361(e) ( 42 U.S.C. 4102(e) ); a locally adopted flood risk mitigation plan consistent with the requirements of section 1366(b) ( 42 U.S.C. 4104c(b) ); an ongoing local or State program for property buyouts to address flooding problems that conforms with such requirement as the Administrator may establish; or such other action or plan as the Administrator may provide.
Whenever claims are filed and the conditions under paragraph
(2)exist, the Administrator shall expeditiously determine, considering current and future risks, if a property buyout would result in long-term benefits to the National Flood Insurance Fund. For buyouts determined to be beneficial, amounts in the National Flood Insurance Fund may be used immediately to make acquisition offers under this subsection in lieu of full claims payments. Such offers may exceed the amount of the claim and shall comply with requirements for buyout offers authorized under section 404 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170c ). In no case shall such expedited buyout offers delay or reduce the amount of claims due to a policyholder for contents coverage or necessary clean-up costs. .
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Sec. 2
Voluntary buyouts in lieu of flood claims
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