To require the Government Accountability Office to study the effect of applying the mandatory purchase requirements to areas of residual risk, and to require the Administrator to study voluntary community-based flood insurance options.

1. Rewrites section 107

   Replaces

   Removes section 107.

   Inserted: SEC. 107. AREAS OF RESIDUAL RISK.

   Inserted: (a) Areas of Residual Risk.--

   Inserted: (1) Definition.--Not later than 18 months after the date of enactment of this Act, the Administrator, in consultation with the Technical Mapping Advisory Council established under section 117, shall establish a definition of the term "area of residual risk", for purposes of the National Flood Insurance Program, that is limited to areas that are not areas having special flood hazards.

   Inserted: (2) This section.--In this section, the term "area of residual risk" has the meaning established by the Administrator under paragraph (1).

   Inserted: (b) Study and Report on Mandatory Purchase Requirements in Areas of Residual Risk.--

   Inserted: (1) Study.--

   Inserted: (A) In general.--The Comptroller General of the United States shall conduct a study assessing the potential impact and effectiveness of applying the mandatory purchase requirements under sections 102 and 202 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a and 4106) to properties located in areas of residual risk.

   Inserted: (B) Areas of study.--In carrying out the study required under subparagraph (A), the Comptroller General shall evaluate--

   Inserted: (i) the regulatory, financial, and economic impact of applying the mandatory purchase requirements described in subparagraph (A) to areas of residual risk on--

   Inserted: (I) the costs of homeownership;

   Inserted: (II) the actuarial soundness of the National Flood Insurance Program;

   Inserted: (III) the Federal Emergency Management Agency;

   Show 43 more inserted paragraphsShow less

   Inserted: (IV) communities located in areas of residual risk;

   Inserted: (V) insurance companies participating in the National Flood Insurance Program; and

   Inserted: (VI) the Disaster Relief Fund;

   Inserted: (ii) the effectiveness of the mandatory purchase requirements in protecting--

   Inserted: (I) homeowners and taxpayers in the United States from financial loss; and

   Inserted: (II) the financial soundness of the National Flood Insurance Program;

   Inserted: (iii) the impact on lenders of complying with or enforcing the mandatory purchase requirements;

   Inserted: (iv) the methodology that the Administrator uses to adequately estimate the varying levels of residual risk behind levees and other flood control structures; and

   Inserted: (v) the extent to which the risk premium rates under the National Flood Insurance Program for property in the areas of residual risk behind levees adequately account for--

   Inserted: (I) the design of the levees;

   Inserted: (II) the soundness of the levees;

   Inserted: (III) the hydrography of the areas of residual risk; and

   Inserted: (IV) any historical flooding in the areas of residual risk.

   Inserted: (2) Reports.--

   Inserted: (A) Initial report.--Not later than 12 months after the date on which the Administrator establishes a definition of the term "area of residual risk" under subsection (a)(1), the Comptroller General shall submit to Congress a report that--

   Inserted: (i) contains the results of the study required under paragraph (1); and

   Inserted: (ii) provides recommendations to the Administrator on improvements that may result in more accurate estimates of varying levels of residual risk behind levees and other flood control structures.

   Inserted: (B) Updated report.--Not later than 5 years after the date on which the Comptroller General submits the report under subparagraph (A), the Comptroller General shall--

   Inserted: (i) update the study conducted under paragraph (1); and

   Inserted: (ii) submit to Congress an updated report that--

   Inserted: (I) contains the results of the updated study required under clause (i); and

   Inserted: (II) provides recommendations to the Administrator on improvements that may result in more accurate estimates of varying levels of residual risk behind levees and other flood control structures.

   Inserted: (3) Adjustment of methodologies.--The Administrator shall, to the extent practicable, adjust the methodologies used to estimate the varying levels of residual risk behind levees and other flood control structures based on the recommendations submitted by the Comptroller General under subparagraphs (A)(ii) and (B)(ii)(II).

   Inserted: (c) Study of Voluntary Community-based Flood Insurance Options.--

   Inserted: (1) Study.--

   Inserted: (A) Study required.--The Administrator shall conduct a study to assess options, methods, and strategies for making available voluntary community-based flood insurance policies through the National Flood Insurance Program.

   Inserted: (B) Considerations.--The study conducted under subparagraph (A) shall --

   Inserted: (i) take into consideration and analyze how voluntary community-based flood insurance policies--

   Inserted: (I) would affect communities having varying economic bases, geographic locations, flood hazard characteristics or classifications, and flood management approaches; and

   Inserted: (II) could satisfy the applicable requirements under section 102 of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a); and

   Inserted: (ii) evaluate the advisability of making available voluntary community-based flood insurance policies to communities, subdivisions of communities, and areas of residual risk.

   Inserted: (C) Consultation.--In conducting the study required under subparagraph (A), the Administrator may consult with the Comptroller General of the United States, as the Administrator determines is appropriate.

   Inserted: (2) Report by the administrator.--

   Inserted: (A) Report required.--Not later than 18 months after the date of enactment of this Act, the Administrator shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that contains the results and conclusions of the study conducted under paragraph (1).

   Inserted: (B) Contents.--The report submitted under subparagraph (A) shall include recommendations for--

   Inserted: (i) the best manner to incorporate voluntary community-based flood insurance policies into the National Flood Insurance Program; and

   Inserted: (ii) a strategy to implement voluntary community-based flood insurance policies that would encourage communities to undertake flood mitigation activities, including the construction, reconstruction, or improvement of levees, dams, or other flood control structures.

   Inserted: (3) Report by comptroller general.--Not later than 6 months after the date on which the Administrator submits the report required under paragraph (2), the Comptroller General of the United States shall--

   Inserted: (A) review the report submitted by the Administrator; and

   Inserted: (B) submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that contains--

   Inserted: (i) an analysis of the report submitted by the Administrator;

   Inserted: (ii) any comments or recommendations of the Comptroller General relating to the report submitted by the Administrator; and

   Inserted: (iii) any other recommendations of the Comptroller General relating to community-based flood insurance policies.

   Original wording

   Strike section 107 and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed