[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3959 Referred in Senate (RFS)]
2d Session
H. R. 3959
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 24, 2008
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To amend the National Flood Insurance Act of 1968 to provide for the
phase-in of actuarial rates for certain pre-FIRM properties.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. PHASE-IN OF ACTUARIAL RATES FOR CERTAIN PRE-FIRM PROPERTIES.
(a) In General.--Section 1308(c) of the National Flood Insurance
Act of 1968 (42 U.S.C. 4015(c)) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Recently purchased pre-firm single family properties
used as principal residences.--Any single family property that
is used as a principal residence that--
``(A) has been constructed or substantially
improved and for which such construction or improvement
was started, as determined by the Director, before
December 31, 1974, or before the effective date of the
initial rate map published by the Director under
paragraph (2) of section 1360 for the area in which
such property is located, whichever is later; and
``(B) is purchased--
``(i) after the date of enactment of this
paragraph; and
``(ii) for not less than $600,000.''.
(b) Technical Amendments.--Section 1308(c) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4015(c)) is amended--
(1) in the matter preceding paragraph (1), by striking
``the limitations provided under paragraphs (1) and (2)'' and
inserting ``subsection (e)''; and
(2) in paragraph (1), by striking ``, except'' and all that
follows through ``subsection (e)''.
(c) Effective Date and Transition.--
(1) Effective date.--The amendments made by subsections (a)
and (b) shall apply beginning on January 1, 2011, except as
provided in paragraph (2) of this subsection.
(2) Transition for properties covered by flood insurance
upon effective date.--
(A) Increase of rates over time.--In the case of
any property described in paragraph (2) of section
1308(c) of the National Flood Insurance Act of 1968, as
amended by subsection (a) of this section, that, as of
the effective date under paragraph (1) of this
subsection, is covered under a policy for flood
insurance made available under the national flood
insurance program for which the chargeable premium
rates are less than the applicable estimated risk
premium rate under section 1307(a)(1) for the area in
which the property is located, the Director of the
Federal Emergency Management Agency shall increase the
chargeable premium rates for such property over time to
such applicable estimated risk premium rate under
section 1307(a)(1).
(B) Annual increase.--Such increase shall be made
by increasing the chargeable premium rates for the
property (after application of any increase in the
premium rates otherwise applicable to such property),
once during the 12-month period that begins upon the
effective date under paragraph (1) of this subsection,
and once every 12 months thereafter until such increase
is accomplished, by 15 percent (or such lesser amount
as may be necessary so that the chargeable rate does
not exceed such applicable estimated risk premium rate
or to comply with subparagraph (C)). Any increase in
chargeable premium rates for a property pursuant to
this paragraph shall not be considered for purposes of
the limitation under section 1308(e) of such Act.
(C) Full actuarial rates.--The provisions of
paragraph (2) of such section 1308(c) shall apply to
such a property upon the accomplishment of the increase
under this paragraph and thereafter.
Passed the House of Representatives January 23, 2008.
Attest:
LORRAINE C. MILLER,
Clerk.