42 U.S.C. § 4012 — Scope of program and priorities

Page 6010 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4012 the national flood insurance program to ensure full- est possible compliance with such requirements. ‘‘(2) STUDY OF COMPLIANCE ASSISTANCE.—Conduct a study of the extent to which Federal agencies and the secondary mortgage market can provide assistance in ensuring compliance with the requirements under the national flood insurance program and submit to the Congress a report describing the study and any con- clusions. ‘‘(3) STUDY OF COMPLIANCE MODEL.—Conduct a study of the extent to which existing programs of Federal agencies and corporations for compliance with the re- quirements under the national flood insurance pro- gram can serve as a model for other Federal agencies responsible for enforcing compliance, and submit to the Congress a report describing the study and any conclusions. ‘‘(4) RECOMMENDATIONS FOR ENFORCEMENT AND COM- PLIANCE PROCEDURES.—Develop recommendations re- garding enforcement and compliance procedures, based on the studies and findings of the Task Force, and publish such recommendations. ‘‘(5) STUDY OF DETERMINATION FEES.—Conduct a study of— ‘‘(A) the reasonableness of fees charged pursuant to 102(h) of the Flood Disaster Protection Act of 1973 [42 U.S.C. 4012a(h)] for costs of determining whether the property securing a loan is located in an area having special flood hazards; and ‘‘(B) whether the fees charged pursuant to such section by lenders and servicers are greater than the amounts paid by such lenders and servicers to persons actually conducting such determinations and the extent to which the fees exceed such amounts. ‘‘(d) NONCOMPENSATION.—Members of the Task Force shall receive no additional pay by reason of their serv- ice on the Task Force. ‘‘(e) CHAIRPERSON.—The members of the Task Force shall elect one member as chairperson of the Task Force. ‘‘(f) MEETINGS AND ACTION.—The Task Force shall meet at the call of the chairman or a majority of the members of the Task Force and may take action by a vote of the majority of the members. The Federal In- surance Administrator shall coordinate and call the initial meeting of the Task Force. ‘‘(g) OFFICERS.—The chairperson of the Task Force may appoint any officers to carry out the duties of the Task Force under subsection (c). ‘‘(h) STAFF OF FEDERAL AGENCIES.—Upon request of the chairperson of the Task Force, the head of any of the Federal agencies and entities referred to under sub- section (b)(1) may detail, on a nonreimbursable basis, any of the personnel of such agency to the Task Force to assist the Task Force in carrying out its duties under this section. ‘‘(i) POWERS.—In carrying out this section, the Task Force may hold hearings, sit and act at times and places, take testimony, receive evidence and assist- ance, provide information, and conduct research as the Task Force considers appropriate. ‘‘(j) TERMINATION.—The Task Force shall terminate upon the expiration of the 24-month period beginning upon the designation of the last member to be des- ignated under subsection (b)(1).’’ § 4012. Scope of program and priorities (a) Priority for insurance for certain residential and church properties and business concerns In carrying out the flood insurance program the Administrator shall afford a priority to making flood insurance available to cover resi- dential properties which are designed for the oc- cupancy of from one to four families, church properties, and business properties which are owned or leased and operated by small business concerns. (b) Availability of insurance for other properties If on the basis of— (1) studies and investigations undertaken and carried out and information received or exchanged under section 4014 of this title, and (2) such other information as may be nec- essary, the Administrator determines that it would be feasible to extend the flood insurance program to cover other properties, he may take such ac- tion under this chapter as from time to time may be necessary in order to make flood insur- ance available to cover, on such basis as may be feasible, any types and classes of— (A) other residential properties not de- scribed in subsection (a) or (d), (B) other business properties, (C) agricultural properties, (D) properties occupied by private nonprofit organizations, and (E) properties owned by State and local gov- ernments and agencies thereof, and any such extensions of the program to any types and classes of these properties shall from time to time be prescribed in regulations. (c) Availability of insurance in States or areas evidencing positive interest in securing in- surance and assuring adoption of adequate land use and control measures The Administrator shall make flood insurance available in only those States or areas (or sub- divisions thereof) which he has determined have— (1) evidenced a positive interest in securing flood insurance coverage under the flood in- surance program, and (2) given satisfactory assurance that by De- cember 31, 1971, adequate land use and control measures will have been adopted for the State or area (or subdivision) which are consistent with the comprehensive criteria for land man- agement and use developed under section 4102 of this title, and that the application and en- forcement of such measures will commence as soon as technical information on floodways and on controlling flood elevations is avail- able. (d) Availability of insurance for multifamily properties (1) In general The Administrator shall make flood insur- ance available to cover residential properties of 5 or more residences. Notwithstanding any other provision of law, the maximum coverage amount that the Administrator may make available under this subsection to such resi- dential properties shall be equal to the cov- erage amount made available to commercial properties. (2) Rule of construction Nothing in this subsection shall be con- strued to limit the ability of individuals resid- ing in residential properties of 5 or more resi- dences to obtain insurance for the contents and personal articles located in such resi- dences. (Pub. L. 90–448, title XIII, § 1305, Aug. 1, 1968, 82 Stat. 574; Pub. L. 91–152, title IV, § 410(a), Dec. 24, Page 6011 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4012a 1969, 83 Stat. 397; Pub. L. 92–213, § 2(c)(1), Dec. 22, 1971, 85 Stat. 775; Pub. L. 98–181, title I [title IV, § 451(d)(1)], Nov. 30, 1983, 97 Stat. 1229; Pub. L. 112–141, div. F, title II, §§ 100204, 100238(b)(1), July 6, 2012, 126 Stat. 916, 958.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (b), 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 classi- fied principally to this chapter. For complete classi- fication of this Act to the Code, see Short Title 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’’. Subsec. (b). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ in concluding provi- sions following par. (2). Subsec. (b)(A). Pub. L. 112–141, § 100204(1), which di- rected amendment of subsec. (b)(2)(A) by inserting ‘‘not described in subsection (a) or (d)’’ after ‘‘properties’’, was executed by making the insertion in subpar. (A) following first concluding provisions to reflect the probable intent of Congress. Subsec. (c). Pub. L. 112–141, § 100238(b)(1), substituted ‘‘Administrator’’ for ‘‘Director’’ in introductory provi- sions. Subsec. (d). Pub. L. 112–141, § 100204(2), added subsec. (d). 1983—Pub. L. 98–181 substituted ‘‘Director’’ for ‘‘Sec- retary’’ wherever appearing. 1971—Subsec. (a). Pub. L. 92–213 inserted reference to church properties. 1969—Subsec. (c)(2). Pub. L. 91–152 substituted ‘‘De- cember 31, 1971, adequate’’ for ‘‘June 30, 1970, perma- nent’’. Statutory Notes and Related Subsidiaries 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. § 4012a. Flood insurance purchase and compli- ance requirements and escrow accounts (a) Amount and term of coverage After the expiration of sixty days following December 31, 1973, no Federal officer or agency shall approve any financial assistance for acqui- sition or construction purposes for use in any area that has been identified by the Adminis- trator as an area having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insur- ance Act of 1968 [42 U.S.C. 4001 et seq.], unless the building or mobile home and any personal property to which such financial assistance re- lates is covered by flood insurance in an amount at least equal to its development or project cost (less estimated land cost) or to the maximum limit of coverage made available with respect to the particular type of property under the Na- tional Flood Insurance Act of 1968, whichever is less: Provided, That if the financial assistance provided is in the form of a loan or an insurance or guaranty of a loan, the amount of flood insur- ance required need not exceed the outstanding principal balance of the loan and need not be re- quired beyond the term of the loan. The require- ment of maintaining flood insurance shall apply during the life of the property, regardless of transfer of ownership of such property. (b) Requirement for mortgage loans (1) Regulated lending institutions Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council established under the Federal Financial Insti- tutions Examination Council Act of 1974 [12 U.S.C. 3301 et seq.]) shall by regulation direct regulated lending institutions— (A) not to make, increase, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Admin- istrator as an area having special flood haz- ards and in which flood insurance has been made available under the National Flood In- surance Act of 1968 [42 U.S.C. 4001 et seq.], unless the building or mobile home and any personal property securing such loan is cov- ered for the term of the loan by flood insur- ance in an amount at least equal to the out- standing principal balance of the loan or the maximum limit of coverage made available under the Act with respect to the particular type of property, whichever is less; and (B) to accept private flood insurance as satisfaction of the flood insurance coverage requirement under subparagraph (A) if the coverage provided by such private flood in- surance meets the requirements for coverage under such subparagraph. (2) Federal agency lenders A Federal agency lender may not make, in- crease, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been iden- tified by the Administrator as an area having special flood hazards and in which flood insur- ance has been made available under the Na- tional Flood Insurance Act of 1968, unless the building or mobile home and any personal property securing such loan is covered for the term of the loan by flood insurance in the amount provided in paragraph (1)(A). Each Federal agency lender shall accept private flood insurance as satisfaction of the flood in-