42 U.S.C. § 4104a — Notice requirements

Page 6071 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4104a (A) received a revised Flood Insurance Rate Map from the Federal Emergency Man- agement Agency, via a Letter of Final De- termination, after September 30, 2008, and prior to July 6, 2012; (B) has subsequently applied for a Letter of Map Revision or Physical Map Revision with the Federal Emergency Management Agency; and (C) has received an unfavorable ruling on their request for a map revision. (b) Membership The Scientific Resolution Panel made avail- able under subsection (a) shall consist of 5 mem- bers with expertise that relates to the creation and study of flood hazard maps and flood insur- ance. The Scientific Resolution Panel may in- clude representatives from Federal agencies not involved in the mapping study in question and from other impartial experts. Employees of the Federal Emergency Management Agency may not serve on the Scientific Resolution Panel. (c) Determination (1) In general Following deliberations, and not later than 90 days after its formation, the Scientific Res- olution Panel shall issue a determination of resolution of the dispute. Such determination shall set forth recommendations for the base flood elevation determination or the designa- tion of an area having special flood hazards that shall be reflected in the Flood Insurance Rate Maps. (2) Basis The determination of the Scientific Resolu- tion Panel shall be based on— (A) data previously provided to the Admin- istrator by the community, and, in the case of a dispute submitted under subsection (a)(2), an owner or lessee of real property in the community; and (B) data provided by the Administrator. (3) No alternative determinations permissible The Scientific Resolution Panel— (A) shall provide a determination of reso- lution of a dispute that— (i) is either in favor of the Administrator or in favor of the community on each dis- tinct element of the dispute; or (ii) in the case of a dispute submitted under subsection (a)(2), is in favor of the Administrator, in favor of the community, or in favor of the owner or lessee of real property in the community on each dis- tinct element of the dispute; and (B) may not offer as a resolution any other alternative determination. (4) Effect of determination (A) Binding The recommendations of the Scientific Resolution Panel shall be binding on all ap- pellants and not subject to further judicial review unless the Administrator determines that implementing the determination of the panel would— (i) pose a significant threat due to fail- ure to identify a substantial risk of special flood hazards; or (ii) violate applicable law. (B) Written justification not to enforce If the Administrator elects not to imple- ment the determination of the Scientific Resolution Panel pursuant to subparagraph (A), then not later than 60 days after the issuance of the determination, the Adminis- trator shall issue a written justification ex- plaining such election. (C) Appeal of determination not to enforce If the Administrator elects not to imple- ment the determination of the Scientific Resolution Panel pursuant to subparagraph (A), the community may appeal the deter- mination of the Administrator as provided for under section 4104(g) of this title. (d) Maps used for insurance and mandatory pur- chase requirements With respect to any community that has a dis- pute that is being considered by the Scientific Resolution Panel formed pursuant to this sub- section, the Federal Emergency Management Agency shall ensure that for each such commu- nity that— (1) the Flood Insurance Rate Map described in the most recently issued Letter of Final De- termination shall be in force and effect with respect to such community; and (2) flood insurance shall continue to be made available to the property owners and residents of the participating community. (Pub. L. 90–448, title XIII, § 1363A, as added Pub. L. 112–141, div. F, title II, § 100218(a), July 6, 2012, 126 Stat. 930.) § 4104a. Notice requirements (a) Notification of special flood hazards (1) Regulated lending institutions Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council) shall by regulation require regulated lending institutions, as a condition of making, in- creasing, extending, or renewing any loan se- cured by improved real estate or a mobile home that the regulated lending institution determines is located or is to be located in an area that has been identified by the Adminis- trator under this chapter or the Flood Dis- aster Protection Act of 1973 as an area having special flood hazards, to notify the purchaser or lessee (or obtain satisfactory assurances that the seller or lessor has notified the pur- chaser or lessee) and the servicer of the loan of such special flood hazards, in writing, a rea- sonable period in advance of the signing of the purchase agreement, lease, or other docu- ments involved in the transaction. The regula- tions shall also require that the regulated lending institution retain a record of the re- ceipt of the notices by the purchaser or lessee and the servicer. (2) Federal agency lenders Each Federal agency lender shall by regula- tion require notification in the manner pro- vided under paragraph (1) with respect to any loan that is made by the Federal agency lend- Page 6072 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4104a er and secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Adminis- trator under this chapter or the Flood Dis- aster Protection Act of 1973 as an area having special flood hazards. Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under paragraph (1). (3) Contents of notice Written notification required under this sub- section shall include— (A) a warning, in a form to be established by the Administrator, stating that the build- ing on the improved real estate securing the loan is located, or the mobile home securing the loan is or is to be located, in an area having special flood hazards; (B) a description of the flood insurance purchase requirements under section 102(b) of the Flood Disaster Protection Act of 1973 [42 U.S.C. 4012a(b)]; (C) a statement that flood insurance cov- erage may be purchased under the national flood insurance program and is also avail- able from private insurers, as required under section 102(b)(6) of the Flood Disaster Pro- tection Act of 1973 (42 U.S.C. 4012a(b)(6)); and (D) any other information that the Admin- istrator considers necessary to carry out the purposes of the national flood insurance pro- gram. (b) Notification of change of servicer (1) Lending institutions Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council) shall by regulation require regulated lending institutions, in connection with the making, increasing, extending, renewing, selling, or transferring any loan described in subsection (a)(1), to notify the Administrator (or the des- ignee of the Administrator) in writing during the term of the loan of the servicer of the loan. Such institutions shall also notify the Administrator (or such designee) of any change in the servicer of the loan, not later than 60 days after the effective date of such change. The regulations under this subsection shall provide that upon any change in the servicing of a loan, the duty to provide notifi- cation under this subsection shall transfer to the transferee servicer of the loan. (2) Federal agency lenders Each Federal agency lender shall by regula- tion provide for notification in the manner provided under paragraph (1) with respect to any loan described in subsection (a)(1) that is made by the Federal agency lender. Any regu- lations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under paragraph (1) of this subsection. (c) Notification of expiration of insurance The Administrator (or the designee of the Ad- ministrator) shall, not less than 45 days before the expiration of any contract for flood insur- ance under this chapter, issue notice of such ex- piration by first class mail to the owner of the property covered by the contract, the servicer of any loan secured by the property covered by the contract, and (if known to the Administrator) the owner of the loan. (Pub. L. 90–448, title XIII, § 1364, as added Pub. L. 93–383, title VIII, § 816(a), Aug. 22, 1974, 88 Stat. 739; amended Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103–325, title V, § 527, Sept. 23, 1994, 108 Stat. 2263; Pub. L. 112–141, div. F, title II, §§ 100238(b)(1), 100239(b), July 6, 2012, 126 Stat. 958, 960.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a)(1), (2) and (c), 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 com- plete classification of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables. The Flood Disaster Protection Act of 1973, referred to in subsec. (a)(1), (2), is Pub. L. 93–234, Dec. 31, 1973, 87 Stat. 975, which enacted sections 4002, 4003, 4012a, 4104, 4104a, 4105 to 4107, and 4128 of this title, amended sec- tions 4001, 4013 to 4016, 4026, 4054, 4056, 4101, and 4121 of this title and sections 24 and 1709–1 of Title 12, Banks and Banking, repealed section 4021 of this title, and en- acted provision set out as a note under section 4001 of this title. For complete classification of this Act to the Code, see Short Title of 1973 Amendment note set out under section 4001 of this title and Tables. AMENDMENTS 2012—Subsec. (a). Pub. L. 112–141, § 100238(b)(1), sub- stituted ‘‘Administrator’’ for ‘‘Director’’ wherever ap- pearing. Subsec. (a)(3)(C). Pub. L. 112–141, § 100239(b), inserted ‘‘, as required under section 102(b)(6) of the Flood Dis- aster Protection Act of 1973 (42 U.S.C. 4012a(b)(6))’’ after ‘‘private insurers’’. Subsecs. (b)(1), (c). Pub. L. 112–141, § 100238(b)(1), sub- stituted ‘‘Administrator’’ for ‘‘Director’’ wherever ap- pearing. 1994—Pub. L. 103–325 amended section generally. Prior to amendment, section read as follows: ‘‘Each Federal instrumentality responsible for the supervision, ap- proval, regulation, or insuring of banks, savings and loan associations, or similar institutions shall by regu- lation require such institutions, as a condition of mak- ing, increasing, extending, or renewing (after the expi- ration of thirty days following August 22, 1974) any loan secured by improved real estate or a mobile home lo- cated or to be located in an area that has been identi- fied by the Director under this chapter or Public Law 93–234 as an area having special flood hazards, to notify the purchaser or lessee (or obtain satisfactory assur- ances that the seller or lessor has notified the pur- chaser or lessee) of such special flood hazards, in writ- ing, a reasonable period in advance of the signing of the purchase agreement, lease, or other documents in- volved in the transaction.’’ 1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Sec- retary’’. Statutory Notes and Related Subsidiaries 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. Page 6073 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4104b 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. § 4104b. Standard hazard determination forms (a) Development The Administrator, in consultation with rep- resentatives of the mortgage and lending indus- try, the Federal entities for lending regulation, the Federal agency lenders, and any other ap- propriate individuals, shall develop a standard form for determining, in the case of a loan se- cured by improved real estate or a mobile home, whether the building or mobile home is located in an area identified by the Administrator as an area having special flood hazards and in which flood insurance under this chapter is available. The form shall be established by regulations issued not later than 270 days after September 23, 1994. (b) Design and contents (1) Purpose The form under subsection (a) shall be de- signed to facilitate compliance with the flood insurance purchase requirements of this chap- ter. (2) Contents The form shall require identification of the type of flood-risk zone in which the building or mobile home is located, the complete map and panel numbers for the improved real es- tate or property on which the mobile home is located, the community identification number and community participation status (for pur- poses of the national flood insurance program) of the community in which the improved real estate or such property is located, and the date of the map used for the determination, with respect to flood hazard information on file with the Administrator. If the building or mobile home is not located in an area having special flood hazards the form shall require a statement to such effect and shall indicate the complete map and panel numbers of the im- proved real estate or property on which the mobile home is located. If the complete map and panel numbers are not available because the building or mobile home is not located in a community that is participating in the na- tional flood insurance program or because no map exists for the relevant area, the form shall require a statement to such effect. The form shall provide for inclusion or attachment of any relevant documents indicating revi- sions or amendments to maps. (c) Required use The Federal entities for lending regulation shall by regulation require the use of the form under this section by regulated lending institu- tions. Each Federal agency lender shall by regu- lation provide for the use of the form with re- spect to any loan made by such Federal agency lender. The Federal National Mortgage Associa- tion and the Federal Home Loan Mortgage Cor- poration and the Government National Mort- gage Association shall require the use of the form with respect to any loan purchased by such entities. A lender or other person may comply with the requirement under this subsection by using the form in a printed, computerized, or electronic manner. (d) Guarantees regarding information In providing information regarding special flood hazards on the form developed under this section, any lender (or other person required to use the form) who makes, increases, extends, or renews a loan secured by improved real estate or a mobile home may provide for the acquisition or determination of such information to be made by a person other than such lender (or other person), only to the extent such person guarantees the accuracy of the information. (e) Reliance on previous determination Any person increasing, extending, renewing, or purchasing a loan secured by improved real es- tate or a mobile home may rely on a previous determination of whether the building or mobile home is located in an area having special flood hazards (and shall not be liable for any error in such previous determination), if the previous de- termination was made not more than 7 years be- fore the date of the transaction and the basis for the previous determination has been set forth on a form under this section, unless— (1) map revisions or updates pursuant to sec- tion 4101(f) of this title after such previous de- termination have resulted in the building or mobile home being located in an area having special flood hazards; or (2) the person contacts the Administrator to determine when the most recent map revisions or updates affecting such property occurred and such revisions and updates have occurred after such previous determination. (f) Effective date The regulations under this section requiring use of the form established pursuant to this sec- tion shall be issued together with the regula- tions required under subsection (a) and shall take effect upon the expiration of the 180-day period beginning on such issuance. (Pub. L. 90–448, title XIII, § 1365, as added Pub. L. 103–325, title V, § 528, Sept. 23, 1994, 108 Stat. 2264; amended Pub. L. 112–141, div. F, title II, § 100238(b)(1), July 6, 2012, 126 Stat. 958.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a) and (b)(1), 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 2012—Subsecs. (a), (b)(2), (e)(2). Pub. L. 112–141 sub- stituted ‘‘Administrator’’ for ‘‘Director’’ wherever ap- pearing.