Clerk session vote number: 74
Bill summary: National Flood Insurance, Mitigation, and Erosion Management Act of 1991 -
Title I: Definitions
- Defines specified terms under the Flood Disaster Protection Act of 1973 and the National Flood Insurance Act of 1968.
Title II: Compliance and Increased Participation
- Amends the Flood Disaster Protection Act of 1973 to prohibit the waiver of current mandatory flood purchase insurance requirements with respect to financial assistance for property in a flood hazard area.
Expands flood insurance
Requires lenders to review outstanding loans to determine whether they are in compliance with mandatory flood insurance purchase requirements. Authorizes lenders to charge borrowers a fee for such service. Exempts lenders from such requirement who have a specified accuracy for flood hazard determinations for outstanding loans, or who have conducted satisfactory loan reviews, or have regularly provided for escrow of flood insurance premiums.
Requires residential real estate lenders: (1) to establish flood insurance premium escrow accounts; and (2) who are acting on behalf of or as a broker for a borrower to provide such borrower with at least two separate notices of purchase or renewal.
Imposes a fine for lenders failing to require flood insurance or to give proper notice under the National Flood Insurance Act of 1968.
Requires the seller - transferor of a residential-secured loan in a flood hazard area to so notify the purchaser-transferee unless a flood hazard determination has been made within the previous five years. Places such obligation on the purchaser in transfers involving the Federal Deposit Insurance Corporation or the Resolution Trust Corporation under specified circumstances.
Revises flood insurance notice requirements.
Amends the National Flood Insurance Act of 1968 to require the development of a standard hazard determination form.
Amends the Federal Financial Institutions Examinations Council Act of 1978 to direct the Financial Examinations Council to coordinate with Federal entities for lending regulation to develop uniform lender standards.
Title III: Ratings and Incentives for Community Floodplain Management Programs
- Amends the National Flood Insurance Act of 1968 to provide for a community rating system and incentives for community floodplain management. Provides program funding.
Title IV: Mitigation of Flood and Erosion Risks
- Amends the Housing and Urban Development Act of 1968 to establish an Office of Mitigation Assistance to carry out flood and coastal erosion mitigation activities under the Federal Insurance Administrator.
Amends the National Flood Insurance Act of 1968 to make mitigation assistance grants available to eligible States, communities, and individuals. Includes among eligible grant activities property elevation, relocation, flood-proofing, and acquisition. Prohibits assistance for activities within a designated erosion-prone area in a community that has not adopted specified land management measures. Authorizes mitigation activity technical assistance.
Limits any grant to a State or community grant to $5,000,000 and to any individual to $250,000. Requires specified State or community matching funds.
Establishes in the Treasury the National Flood Mitigation Fund to be available for such mitigation assistance grants. Provides for an insurance premium mitigation surcharge to be paid into such Fund.
Authorizes a mitigation transition pilot program to be carried out through the Office of Mitigation Assistance.
Repeals (with a transition period) the current program for the purchase of certain insured properties.
Establishes a program to reduce coastal erosion hazards. Provides for: (1) identification on an on-going basis of erosion-prone areas; (2) establishment of setbacks for erosion-prone communities; (3) establishment of land use restrictions; and (4) assistance availability only to structures located in erosion-prone communities which have adopted land use restrictions.
Makes assistance available only to structures: (1) covered by flood insurance for the lesser of two years or since ownership; (2) located in a designated erosion-prone area; and (3) located in a setback area or subject to imminent collapse.
Makes structure relocation or demolition eligible erosion mitigation activities. Authorizes relocation payments of up to 40 percent of a structure's value and demolition payments of up to 110 percent of a structure's value.
Limits flood insurance payments and prohibits future insurance coverage for failure to relocate or demolish a structure.
Authorizes specified annual amounts from the National Flood Insurance Fund for erosion mitigation assistance.
Repeals current provisions for claims for imminent collapse and subsidence through flood insurance claims. Establishes transition periods of 12 months for erosion-prone areas and 60 months for other areas.
Sets forth erosion setback limitations on flood insurance availability and rates.
Requires the Director of the Federal Emergency Management Agency to conduct a riverine erosion study.
Requires the Director to coordinate coastal erosion activities and coastal zone management activities with the Under Secretary of Commerce for Oceans and Atmosphere.
Title V: Flood Insurance Task Force
- Establishes a two-year interagency Flood Insurance Task Force which shall: (1) develop standardized flood insurance enforcement procedures and guidelines; and (2) conduct a study of the extent to which the secondary mortgage market can assist enforcement.
Creates a select subcommittee composed of specified Task Force members to recommend measures regarding the protection of the natural and beneficial functions of the floodplain.
Title VI: Miscellaneous Provisions
- Amends the National Flood Insurance Act of 1968 to: (1) increase flood insurance coverage amounts for nonresidential, single family, and multifamily structures; (2) permit flood insurance private sector participation; and (3) require at least every five years an assessment (and revision if necessary) of flood insurance maps, which shall be made available free of charge to lenders, States, communities, insurers, and other concerned parties.
Click to hide full description.
Bill titles: To revise the national flood insurance program to provide for mitigation of potential flood damages and management of coastal erosion, ensure the financial soundness of the program, and increase compliance with the mandatory purchase requirement, and for other purposes.
Links for more info on the vote: congress.gov