42 U.S.C. § 4014 — Estimates of premium rates

Page 6021 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4014 § 4013a. Policy disclosures (a) In general Notwithstanding any other provision of law, in addition to any other disclosures that may be required, each policy under the National Flood Insurance Program shall state all conditions, exclusions, and other limitations pertaining to coverage under the subject policy, regardless of the underlying insurance product, in plain English, in boldface type, and in a font size that is twice the size of the text of the body of the policy. (b) Violations The Administrator may impose a civil penalty of not more than $50,000 on any person that fails to comply with subsection (a). (Pub. L. 112–141, div. F, title II, § 100234, July 6, 2012, 126 Stat. 956.) Editorial Notes CODIFICATION Section was enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012, and also as part of the Moving Ahead for Progress in the 21st Century Act, also known as the MAP–21, and not as part of the Na- tional Flood Insurance Act of 1968 which comprises this chapter. Statutory Notes and Related Subsidiaries DEFINITIONS For definitions of terms used in this section, see sec- tion 4004 of this title. § 4014. Estimates of premium rates (a) Studies and investigations The Administrator is authorized to undertake and carry out such studies and investigations and receive or exchange such information as may be necessary to estimate, and shall from time to time estimate, on an area, subdivision, or other appropriate basis— (1) the risk premium rates for flood insur- ance which— (A) based on consideration of— (i) the risk involved and accepted actu- arial principles; and (ii) the flood mitigation activities that an owner or lessee has undertaken on a property, including differences in the risk involved due to land use measures, floodproofing, flood forecasting, and simi- lar measures, and (B) including— (i) the applicable operating costs and al- lowances set forth in the schedules pre- scribed under section 4018 of this title and reflected in such rates, (ii) any administrative expenses (or por- tion of such expenses) of carrying out the flood insurance program which, in his dis- cretion, should properly be reflected in such rates, (iii) any remaining administrative ex- penses incurred in carrying out the flood insurance and floodplain management pro- grams (including the costs of mapping ac- tivities under section 4101 of this title) not included under clause (ii), which shall be recovered by a fee charged to policyholders and such fee shall not be subject to any agents’ commissions, company expense al- lowances, or State or local premium taxes, and (iv) all costs, as prescribed by principles and standards of practice in ratemaking adopted by the American Academy of Ac- tuaries and the Casualty Actuarial Soci- ety, including— (I) an estimate of the expected value of future costs, (II) all costs associated with the trans- fer of risk, and (III) the costs associated with an indi- vidual risk transfer with respect to risk classes, as defined by the Administrator, would be required in order to make such insur- ance available on an actuarial basis for any types and classes of properties for which insur- ance coverage is available under section 4012(a) of this title (or is recommended to the Congress under section 4012(b) of this title); (2) the rates, if less than the rates estimated under paragraph (1), which would be reason- able, would encourage prospective insureds to purchase flood insurance, and would be con- sistent with the purposes of this chapter, and which, together with a fee charged to policy- holders that shall not be not subject to any agents’ commission, company expenses allow- ances, or State or local premium taxes, shall include any administrative expenses incurred in carrying out the flood insurance and flood- plain management programs (including the costs of mapping activities under section 4101 of this title), except that the Administrator shall not estimate rates under this paragraph for— (A) any residential property which is not the primary residence of an individual; (B) any severe repetitive loss property; (C) any property that has incurred flood- related damage in which the cumulative amounts of payments under this chapter equaled or exceeded the fair market value of such property; (D) any business property; or (E) any property which on or after July 6, 2012, has experienced or sustained— (i) substantial damage exceeding 50 per- cent of the fair market value of such prop- erty; or (ii) substantial improvement exceeding 50 percent of the fair market value of such property; and (3) the extent, if any, to which federally as- sisted or other flood protection measures initi- ated after August 1, 1968, affect such rates. (b) Utilization of services of other Departments and agencies In carrying out subsection (a), the Adminis- trator shall, to the maximum extent feasible and on a reimbursement basis, utilize the serv- ices of the Department of the Army, the Depart- ment of the Interior, the Department of Agri- culture, the Department of Commerce, and the Tennessee Valley Authority, and, as appro- Page 6022 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4014 priate, other Federal departments or agencies, and for such purposes may enter into agree- ments or other appropriate arrangements with any persons. (c) Priority to studies and investigations in States or areas evidencing positive interest in securing insurance under program The Administrator shall give priority to con- ducting studies and investigations and making estimates under this section in those States or areas (or subdivisions thereof) which he has de- termined have evidenced a positive interest in securing flood insurance coverage under the flood insurance program. (d) Parishes of Louisiana; premium rates Notwithstanding any other provision of law, any structure existing on December 31, 1973, and located within Avoyelles, Evangeline, Rapides, or Saint Landry Parish in the State of Lou- isiana, which the Secretary determines is sub- ject to additional flood hazards as a result of the construction or operation of the Atchafalaya Basin Levee System, shall be eligible for flood insurance under this chapter (if and to the ex- tent it is eligible for such insurance under the other provisions of this chapter) at premium rates that shall not exceed those which would be applicable if such additional hazards did not exist. (e) Eligibility of community making adequate progress on construction of flood protection system for rates not exceeding those applica- ble to completed flood protection system; de- termination of adequate progress Notwithstanding any other provision of law, any community that has made adequate progress, acceptable to the Administrator, on the construction or reconstruction of a flood protection system which will afford flood pro- tection for the one-hundred year frequency flood as determined by the Administrator, shall be el- igible for flood insurance under this chapter (if and to the extent it is eligible for such insur- ance under the other provisions of this chapter) at premium rates not exceeding those which would be applicable under this section if such flood protection system had been completed. The Administrator shall find that adequate progress on the construction or reconstruction of a flood protection system, based on the present value of the completed flood protection system, has been made only if: (1) 100 percent of the cost of the system has been authorized; (2) at least 60 percent of the cost of the system has been appropriated; (3) at least 50 percent of the cost of the system has been expended; and (4) the system is at least 50 percent completed. Not- withstanding any other provision of law, in de- termining whether a community has made ade- quate progress on the construction, reconstruc- tion, or improvement of a flood protection sys- tem, the Administrator shall consider all sources of funding, including Federal, State, and local funds. (f) Availability of flood insurance in communities restoring disaccredited flood protection sys- tems; criteria; rates Notwithstanding any other provision of law, this subsection shall apply to riverine and coast- al levees that are located in a community which has been determined by the Administrator of the Federal Emergency Management Agency to be in the process of restoring flood protection afforded by a flood protection system that had been previously accredited on a Flood Insurance Rate Map as providing 100-year frequency flood protection but no longer does so, and shall apply without regard to the level of Federal funding of or participation in the construction, reconstruc- tion, or improvement of the flood protection system. Except as provided in this subsection, in such a community, flood insurance shall be made available to those properties impacted by the disaccreditation of the flood protection sys- tem at premium rates that do not exceed those which would be applicable to any property lo- cated in an area of special flood hazard, the con- struction of which was started prior to the effec- tive date of the initial Flood Insurance Rate Map published by the Administrator for the community in which such property is located. A revised Flood Insurance Rate Map shall be pre- pared for the community to delineate as Zone AR the areas of special flood hazard that result from the disaccreditation of the flood protection system. A community will be considered to be in the process of restoration if— (1) the flood protection system has been deemed restorable by a Federal agency in con- sultation with the local project sponsor; (2) a minimum level of flood protection is still provided to the community by the disaccredited system; and (3) restoration of the flood protection sys- tem is scheduled to occur within a designated time period and in accordance with a progress plan negotiated between the community and the Federal Emergency Management Agency. Communities that the Administrator of the Fed- eral Emergency Management Agency deter- mines to meet the criteria set forth in para- graphs (1) and (2) as of January 1, 1992, shall not be subject to revised Flood Insurance Rate Maps that contravene the intent of this subsection. Such communities shall remain eligible for C zone rates for properties located in zone AR for any policy written prior to promulgation of final regulations for this section. Floodplain management criteria for such communities shall not require the elevation of improvements to ex- isting structures and shall not exceed 3 feet above existing grade for new construction, pro- vided the base flood elevation based on the disaccredited flood control system does not ex- ceed five feet above existing grade, or the re- maining new construction in such communities is limited to infill sites, rehabilitation of exist- ing structures, or redevelopment of previously developed areas. The Administrator of the Federal Emergency Management Agency shall develop and promul- gate regulations to implement this subsection, including minimum floodplain management cri- teria, within 24 months after October 28, 1992. (g) No extension of subsidy to new policies or lapsed policies The Administrator shall not provide flood in- surance to prospective insureds at rates less Page 6023 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4014 1 So in original. 2 So in original. Probably means ‘‘Administrator’’. than those estimated under subsection (a)(1), as required by paragraph (2) of that subsection, for— (1) any policy under the flood insurance pro- gram that has lapsed in coverage,,1 unless the decision of the policy holder to permit a lapse in flood insurance coverage was as a result of the property covered by the policy no longer being required to retain such coverage; or (2) any prospective insured who refuses to accept any offer for mitigation assistance by the Administrator (including an offer to relo- cate), including an offer of mitigation assist- ance— (A) following a major disaster, as defined in section 5122 of this title; or (B) in connection with— (i) a repetitive loss property; or (ii) a severe repetitive loss property. (h) Definition In this section, the term ‘‘severe repetitive loss property’’ has the following meaning: (1) Single-family properties In the case of a property consisting of 1 to 4 residences, such term means a property that— (A) is covered under a contract for flood insurance made available under this chapter; and (B) has incurred flood-related damage— (i) for which 4 or more separate claims payments have been made under flood in- surance coverage under this subchapter, with the amount of each such claim ex- ceeding $5,000, and with the cumulative amount of such claims payments exceed- ing $20,000; or (ii) for which at least 2 separate claims payments have been made under such cov- erage, with the cumulative amount of such claims exceeding the value of the property. (2) Multifamily properties In the case of a property consisting of 5 or more residences, such term shall have such meaning as the Director 2 shall by regulation provide. (Pub. L. 90–448, title XIII, § 1307, Aug. 1, 1968, 82 Stat. 576; Pub. L. 93–234, title I, § 109, Dec. 31, 1973, 87 Stat. 980; Pub. L. 93–383, title VIII, § 816(b), Aug. 22, 1974, 88 Stat. 739; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 101–508, title II, § 2302(e)(1), Nov. 5, 1990, 104 Stat. 1388–24; Pub. L. 102–550, title IX, § 928, Oct. 28, 1992, 106 Stat. 3886; Pub. L. 112–123, § 2(a), May 31, 2012, 126 Stat. 365; Pub. L. 112–141, div. F, title II, §§ 100205(a)(1), (b), 100238(b)(1), July 6, 2012, 126 Stat. 917, 918, 958; Pub. L. 113–89, §§ 3(a)(1), 14, 15, 19, Mar. 21, 2014, 128 Stat. 1021, 1026, 1027.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a)(2), (d), (e), and (h)(1)(A), was in the original a reference to ‘‘this title’’ meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the National Flood Insurance Act of 1968, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables. AMENDMENTS 2014—Subsec. (a)(1)(A). Pub. L. 113–89, § 14, amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘‘based on consideration of the risk in- volved and accepted actuarial principles, and’’. Subsec. (a)(2)(E)(ii). Pub. L. 113–89, § 15, substituted ‘‘50 percent’’ for ‘‘30 percent’’. Subsec. (e). Pub. L. 113–89, § 19(a)(3), inserted before period at end ‘‘Notwithstanding any other provision of law, in determining whether a community has made adequate progress on the construction, reconstruction, or improvement of a flood protection system, the Ad- ministrator shall consider all sources of funding, in- cluding Federal, State, and local funds.’’ Pub. L. 113–89, § 19(a)(1), (2), inserted ‘‘or reconstruc- tion’’ after ‘‘construction’’ in first sentence and amend- ed second sentence generally. Prior to amendment, sec- ond sentence read as follows: ‘‘The Administrator shall find that adequate progress on the construction of a flood protection system as required herein has been only if (1) 100 percent of the project cost of the system has been authorized, (2) at least 60 percent of the project cost of the system has been appropriated, (3) at least 50 percent of the project cost of the system has been expended, and (4) the system is at least 50 percent completed.’’ Subsec. (f). Pub. L. 113–89, § 19(b), amended first sen- tence generally. Prior to amendment, first sentence read as follows: ‘‘Notwithstanding any other provision of law, this subsection shall only apply in a community which has been determined by the Administrator of the Federal Emergency Management Agency to be in the process of restoring flood protection afforded by a flood protection system that had been previously accredited on a Flood Insurance Rate Map as providing 100-year frequency flood protection but no longer does so.’’ Subsec. (g). Pub. L. 113–89, § 3(a)(1), redesignated pars. (3) and (4) as (1) and (2), respectively, substituted ‘‘, unless the decision of the policy holder to permit a lapse in flood insurance coverage was as a result of the property covered by the policy no longer being required to retain such coverage’’ for ‘‘as a result of the delib- erate choice of the holder of such policy’’ in par. (1) as redesignated, and struck out former pars. (1) and (2), which read as follows: ‘‘(1) any property not insured by the flood insurance program as of July 6, 2012; ‘‘(2) any property purchased after July 6, 2012;’’. 2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), sub- stituted ‘‘Administrator’’ for ‘‘Director’’ in introduc- tory provisions. Subsec. (a)(1)(B)(iv). Pub. L. 112–141, § 100205(b), added cl. (iv). Subsec. (a)(2). Pub. L. 112–141, § 100205(a)(1)(A), sub- stituted ‘‘for—’’ for ‘‘for any residential property which is not the primary residence of an individual; and’’ and added subpars. (A) to (E). Pub. L. 112–123 inserted ‘‘, except that the Adminis- trator shall not estimate rates under this paragraph for any residential property which is not the primary resi- dence of an individual’’ before ‘‘; and’’. Subsecs. (b), (c), (e), (f). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ wherever appearing. Subsecs. (g), (h). Pub. L. 112–141, § 100205(a)(1)(B), added subsecs. (g) and (h). 1992—Subsec. (f). Pub. L. 102–550 added subsec. (f). 1990—Subsec. (a)(1)(B)(iii). Pub. L. 101–508, § 2302(e)(1)(A)–(C), added cl. (iii). Subsec. (a)(2). Pub. L. 101–508, § 2302(e)(1)(D), inserted before semicolon ‘‘, and which, together with a fee charged to policyholders that shall not be not subject to any agents’ commission, company expenses allow- ances, or State or local premium taxes, shall include any administrative expenses incurred in carrying out Page 6024 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4014 the flood insurance and floodplain management pro- grams (including the costs of mapping activities under section 4101 of this title)’’. 1983—Subsecs. (a) to (c), (e). Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Secretary’’ wherever appearing. 1974—Subsec. (e). Pub. L. 93–383 added subsec. (e). 1973—Subsec. (d). Pub. L. 93–234 added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2012 AMENDMENT Pub. L. 112–141, div. F, title II, § 100205(a)(2), July 6, 2012, 126 Stat. 918, provided that: ‘‘The amendments made by paragraph (1) [amending this section] shall be- come effective 90 days after the date of enactment of this Act [July 6, 2012].’’ EFFECTIVE DATE Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see sec- tion 1377 of Pub. L. 90–448, set out as a note under sec- tion 4001 of this title. TRANSFER OF FUNCTIONS For transfer of all functions, personnel, assets, com- ponents, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emer- gency Management relating thereto, to the Federal Emergency Management Agency, see section 315(a)(1) of Title 6, Domestic Security. For transfer of functions, personnel, assets, and li- abilities of the Federal Emergency Management Agen- cy, including the functions of the Director of the Fed- eral Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treat- ment of related references, see former section 313(1) and sections 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. REPEAL OF CERTAIN RATE INCREASES Pub. L. 113–89, § 3, Mar. 21, 2014, 128 Stat. 1021, pro- vided that: ‘‘(a) REPEAL.— ‘‘(1) IN GENERAL.—[Amended this section.] ‘‘(2) EFFECTIVE DATE.—The Administrator [of the Federal Emergency Management Agency] shall make available such rate tables, as necessary to implement the amendments made by paragraph (1) as if it were enacted as part of the Biggert-Waters Flood Insur- ance Reform Act of 2012 ([subtitle A of title II of div. F of] Public Law 112–141; 126 Stat. 957 [sic]). ‘‘(3) IMPLEMENTATION, COORDINATION, AND GUID- ANCE.— ‘‘(A) FACILITATION OF TIMELY REFUNDS.—To ensure the participation of Write Your Own companies (as such term is defined in section 100202(a) of the Biggert-Waters Flood Insurance Reform Act of 2012 (42 U.S.C. 4004(a)), the Administrator and the Fed- eral Emergency Management Agency shall consult with Write Your Own companies throughout the de- velopment of guidance and rate tables necessary to implement the provisions of and the amendments made by this Act [see Short Title of 2014 Amend- ment note set out under section 4001 of this title]. ‘‘(B) IMPLEMENTATION AND GUIDANCE.—The Admin- istrator shall issue final guidance and rate tables necessary to implement the provisions of and the amendments made by this Act not later than eight months following the date of the enactment of this Act [Mar. 21, 2014]. Write Your Own companies, in coordination with the Federal Emergency Manage- ment Agency, shall have not less than six months but not more than eight months following the issuance of such final guidance and rate tables to implement the changes required by such final guid- ance and rate tables. ‘‘(4) REFUND OF EXCESS PREMIUM CHARGES COL- LECTED.—The Administrator shall refund directly to insureds any premiums for flood insurance coverage under the National Flood Insurance Program [defined as the program established under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.)] collected in excess of the rates required under the provisions of and amendments made by this section [amending this section]. To allow for necessary and appropriate im- plementation of such provisions and amendments, any premium changes necessary to implement such provisions and amendments, including any such pre- mium refund due to policy holders, which shall be paid directly by the National Flood Insurance Pro- gram, shall not be charged or paid to policyholders by the National Flood Insurance Program until after the Administrator issues guidance and makes available such rate tables to implement the provisions of and amendments made by this Act. ‘‘(b) ASSUMPTION OF POLICIES AT EXISTING PREMIUM RATES.—The Administrator shall provide that the pur- chaser of a property that, as of the date of such pur- chase, is covered under an existing flood insurance pol- icy under this title [probably means the National Flood Insurance Act of 1968, 42 U.S.C. 4001 et seq.] may as- sume such existing policy and coverage for the remain- der of the term of the policy at the chargeable pre- mium rates under such existing policy. Such rates shall continue with respect to such property until the imple- mentation of subsection (a).’’ CHANGES IN RATES RESULTING FROM PUB. L. 113–89 Pub. L. 113–89, § 31(a), Mar. 21, 2014, 128 Stat. 1035, pro- vided that: ‘‘Not later than the date that is 6 months before the date on which any change in risk premium rates for flood insurance coverage under the National Flood Insurance Program [defined as the program es- tablished under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.)] resulting from this Act [see Short Title of 2014 Amendment note set out under sec- tion 4001 of this title] or any amendment made by this Act is implemented, the Administrator [of the Federal Emergency Management Agency] shall make publicly available the rate tables and underwriting guidelines that provide the basis for the change.’’ ELIGIBILITY FOR FLOOD INSURANCE FOR PERSONS RE- SIDING IN COMMUNITIES THAT HAVE MADE ADEQUATE PROGRESS ON THE RECONSTRUCTION OR IMPROVEMENT OF A FLOOD PROTECTION SYSTEM Pub. L. 112–141, div. F, title II, § 100230, July 6, 2012, 126 Stat. 946, provided that: ‘‘(a) ELIGIBILITY FOR FLOOD INSURANCE COVERAGE.— ‘‘(1) IN GENERAL.—Notwithstanding any other provi- sion of law (including section 1307(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4014(e))), a per- son residing in a community that the Administrator determines has made adequate progress on the recon- struction or improvement of a flood protection sys- tem that will afford flood protection for a 100-year floodplain (without regard to the level of Federal funding of or participation in the construction, re- construction, or improvement), shall be eligible for flood insurance coverage under the National Flood Insurance Program— ‘‘(A) if the person resides in a community that is a participant in the National Flood Insurance Pro- gram; and ‘‘(B) at a risk premium rate that does not exceed the risk premium rate that would be chargeable if the flood protection system had been completed. ‘‘(2) ADEQUATE PROGRESS.— ‘‘(A) RECONSTRUCTION OR IMPROVEMENT.—For pur- poses of paragraph (1), the Administrator shall de- termine that a community has made adequate progress on the reconstruction or improvement of a flood protection system if— ‘‘(i) 100 percent of the project cost has been au- thorized; Page 6025 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4014 ‘‘(ii) not less than 60 percent of the project cost has been secured or appropriated; ‘‘(iii) not less than 50 percent of the flood pro- tection system has been assessed as being without deficiencies; and ‘‘(iv) the reconstruction or improvement has a project schedule that does not exceed 5 years, be- ginning on the date on which the reconstruction or construction of the improvement commences. ‘‘(B) CONSIDERATIONS.—In determining whether a flood protection system has been assessed as being without deficiencies, the Administrator shall con- sider the requirements under section 65.10 of chap- ter 44, Code of Federal Regulations, or any suc- cessor thereto. ‘‘(C) DATE OF COMMENCEMENT.—For purposes of subparagraph (A)(iv) of this paragraph and sub- section (b)(2)(B), the date of commencement of the reconstruction or improvement of a flood protec- tion system that is undergoing reconstruction or improvement on the date of enactment of this Act [July 6, 2012] shall be deemed to be the date on which the owner of the flood protection system sub- mits a request under paragraph (3). ‘‘(3) REQUEST FOR DETERMINATION.—The owner of a flood protection system that is undergoing recon- struction or improvement on the date of enactment of this Act [July 6, 2012] may submit to the Adminis- trator a request for a determination under paragraph (2) that the community in which the flood protection system is located has made adequate progress on the reconstruction or improvement of the flood protec- tion system. ‘‘(4) RULE OF CONSTRUCTION.—Nothing in this sub- section shall be construed to prohibit the Adminis- trator from making a determination under paragraph (2) for any community in which a flood protection system is not undergoing reconstruction or improve- ment on the date of enactment of this Act. ‘‘(b) TERMINATION OF ELIGIBILITY.— ‘‘(1) ADEQUATE CONTINUING PROGRESS.—The Admin- istrator shall issue rules to establish a method of de- termining whether a community has made adequate continuing progress on the reconstruction or im- provement of a flood protection system that in- cludes— ‘‘(A) a requirement that the Administrator shall— ‘‘(i) consult with the owner of the flood protec- tion system— ‘‘(I) 6 months after the date of a determina- tion under subsection (a); ‘‘(II) 18 months after the date of a determina- tion under subsection (a); and ‘‘(III) 36 months after the date of a determina- tion under subsection (a); and ‘‘(ii) after each consultation under clause (i), determine whether the reconstruction or im- provement is reasonably likely to be completed in accordance with the project schedule described in subsection (a)(2)(A)(iv); and ‘‘(B) a requirement that, if the Administrator makes a determination under subparagraph (A)(ii) that reconstruction or improvement is not reason- ably likely to be completed in accordance with the project schedule, the Administrator shall— ‘‘(i) not later than 30 days after the date of the determination, notify the owner of the flood pro- tection system of the determination and provide the rationale and evidence for the determination; and ‘‘(ii) provide the owner of the flood protection system the opportunity to appeal the determina- tion. ‘‘(2) TERMINATION.—The Administrator shall termi- nate the eligibility for flood insurance coverage under subsection (a) for persons residing in a commu- nity with respect to which the Administrator made a determination under subsection (a) if— ‘‘(A) the Administrator determines that the com- munity has not made adequate continuing progress; or ‘‘(B) on the date that is 5 years after the date on which the reconstruction or construction of the im- provement commences, the project has not been completed. ‘‘(3) WAIVER.—A person whose eligibility would oth- erwise be terminated under paragraph (2)(B) shall continue to be eligible to purchase flood insurance coverage described in subsection (a) if the Adminis- trator determines— ‘‘(A) the community has made adequate con- tinuing progress on the reconstruction or improve- ment of a flood protection system; and ‘‘(B) there is a reasonable expectation that the re- construction or improvement of the flood protec- tion system will be completed not later than 1 year after the date of the determination under this para- graph. ‘‘(4) RISK PREMIUM RATE.—If the Administrator ter- minates the eligibility of persons residing in a com- munity to purchase flood insurance coverage de- scribed in subsection (a), the Administrator shall es- tablish an appropriate risk premium rate for flood in- surance coverage under the National Flood Insurance Program for persons residing in the community that purchased flood insurance coverage before the date on which the termination of eligibility takes effect, taking into consideration the then-current state of the flood protection system. ‘‘(c) ADDITIONAL AUTHORITY.— ‘‘(1) ADDITIONAL AUTHORITY.—Notwithstanding sub- section (a), in exceptional and exigent circumstances, the Administrator may, in the Administrator’s sole discretion, determine that a person residing in a com- munity, which is a participant in the National Flood Insurance Program, that has begun reconstruction or improvement of a flood protection system that will afford flood protection for a 100-year floodplain (with- out regard to the level of Federal funding of or par- ticipation in the reconstruction or improvement) shall be eligible for flood insurance coverage under the National Flood Insurance Program at a risk pre- mium rate that does not exceed the risk premium rate that would be chargeable if the flood protection system had been completed, provided— ‘‘(A) the community makes a written request for the determination setting forth the exceptional and exigent circumstances, including why the commu- nity cannot meet the criteria for adequate progress set forth in under [sic] subsection (a)(2)(A) and why immediate relief is necessary; ‘‘(B) the Administrator submits a written report setting forth findings of the exceptional and exi- gent circumstances on which the Administrator based an affirmative determination to the Com- mittee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Serv- ices of the House of Representatives not later than 15 days before making the determination; and ‘‘(C) the eligibility for flood insurance coverage at a risk premium rate determined under this sub- section terminates no later than 1 year after the date on which the Administrator makes the deter- mination. ‘‘(2) LIMITATION.—Upon termination of eligibility under paragraph (1)(C), a community may submit an- other request pursuant to paragraph (1)(A). The Ad- ministrator may make no more than two determina- tions under paragraph (1) with respect to persons re- siding within any single requesting community. ‘‘(3) TERMINATION.—The authority provided under paragraphs (1) and (2) shall terminate two years after the enactment of this Act [July 6, 2012].’’ [For definitions of terms used in section 100230 of Pub. L. 112–141, set out above, see section 4004 of this title.] FEES Pub. L. 108–7, div. K, title III, Feb. 20, 2003, 117 Stat. 517, provided in part: ‘‘That beginning in fiscal year 2003 and thereafter, fees authorized in 42 U.S.C. Page 6026 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4015 4014(a)(1)(B)(iii) shall be collected only if provided in advance in appropriations acts.’’ STUDY OF ECONOMIC EFFECTS OF CHARGING ACTUARI- ALLY BASED PREMIUM RATES FOR PRE-FIRM STRUC- TURES Pub. L. 103–325, title V, § 578, Sept. 23, 1994, 108 Stat. 2284, required the Director of the Federal Emergency Management Agency to conduct a study of the eco- nomic effects that would result from increasing pre- mium rates for flood insurance coverage for pre-FIRM structures and submit a report to Congress no later than 12 months after Sept. 23, 1994. SEA LEVEL RISE STUDY Pub. L. 101–137, § 5, Nov. 3, 1989, 103 Stat. 825, directed Director of Federal Emergency Management Agency to conduct a study to determine the impact of relative sea level rise on the flood insurance rate maps, such study also to project the economic losses associated with es- timated sea level rise and aggregate such data for the United States as a whole and by region, with Director to report results of study to Congress not later than one year after Nov. 3, 1989. § 4015. Chargeable premium rates (a) Establishment; terms and conditions On the basis of estimates made under section 4014 of this title, and such other information as may be necessary, the Administrator shall from time to time prescribe, after providing notice— (1) chargeable premium rates for any types and classes of properties for which insurance coverage shall be available under section 4012 of this title (at less than the estimated risk premium rates under section 4014(a)(1) of this title, where necessary), and (2) the terms and conditions under which, and the areas (including subdivisions thereof) within which, such rates shall apply. (b) Considerations for rates Such rates shall, insofar as practicable, be— (1) based on a consideration of the respective risks involved, including differences in risks due to land use measures, flood-proofing, flood forecasting, and similar measures; (2) adequate, on the basis of accepted actu- arial principles, to provide reserves for antici- pated losses, or, if less than such amount, con- sistent with the objective of making flood in- surance available where necessary at reason- able rates so as to encourage prospective in- sureds to purchase such insurance and with the purposes of this chapter; (3) adequate, together with the fee under paragraph (1)(B)(iii) or (2) of section 4014(a) of this title, to provide for any administrative expenses of the flood insurance and floodplain management programs (including the costs of mapping activities under section 4101 of this title); (4) stated so as to reflect the basis for such rates, including the differences (if any) be- tween the estimated risk premium rates under section 4014(a)(1) of this title and the esti- mated rates under section 4014(a)(2) of this title; and (5) adequate, on the basis of accepted actu- arial principles, to cover the average histor- ical loss year obligations incurred by the Na- tional Flood Insurance Fund. (c) Actuarial rate properties Subject only to the limitations provided under paragraphs (1) and (2), the chargeable rate shall not be less than the applicable estimated risk premium rate for such area (or subdivision thereof) under section 4014(a)(1) of this title with respect to the following properties: (1) Post-firm properties Any property the construction or substan- tial improvement of which the Administrator determines has been started after December 31, 1974, or started after the effective date of the initial rate map published by the Adminis- trator under paragraph (2) of section 4101 of this title for the area in which such property is located, whichever is later, except that the chargeable rate for properties under this para- graph shall be subject to the limitation under subsection (e). (2) Certain leased coastal and river properties Any property leased from the Federal Gov- ernment (including residential and nonresi- dential properties) that the Administrator de- termines is located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure. (d) Payment of certain sums to Administrator; deposits in Fund With respect to any chargeable premium rate prescribed under this section, a sum equal to the portion of the rate that covers any administra- tive expenses of carrying out the flood insurance and floodplain management programs which have been estimated under paragraphs (1)(B)(ii) and (1)(B)(iii) of section 4014(a) of this title or paragraph (2) of such section (including the fees under such paragraphs), shall be paid to the Ad- ministrator. The Administrator shall deposit the sum in the National Flood Insurance Fund established under section 4017 of this title. (e) Annual limitation on premium increases Except with respect to properties described under paragraph (2) of subsection (c), and not- withstanding any other provision of this chap- ter— (1) the chargeable risk premium rate for flood insurance under this chapter for any property may not be increased by more than 18 percent each year, except— (A) as provided in paragraph (4); (B) in the case of property identified under section 4014(g) of this title; or (C) in the case of a property that— (i) is located in a community that has experienced a rating downgrade under the community rating system program carried out under section 4022(b) of this title; (ii) is covered by a policy with respect to which the policyholder has— (I) decreased the amount of the deduct- ible; or (II) increased the amount of coverage; or (iii) was misrated; (2) the chargeable risk premium rates for flood insurance under this chapter for any properties initially rated under section 4014(a)(2) of this title within any single risk classification, excluding properties for which