42 U.S.C. § 4001 — Congressional findings and declaration of

Page 6001 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4001 Sec. 4014. Estimates of premium rates. 4015. Chargeable premium rates. 4015a. Premium surcharge. 4016. Financing. 4017. National Flood Insurance Fund. 4017a. Reserve Fund. 4018. Operating costs and allowances; definitions. 4019. Payment of claims. 4020. Dissemination of flood insurance informa- tion. 4021. Participation in State disaster claims medi- ation programs. 4022. State and local land use controls. 4023. Properties in violation of State and local law. 4024. Coordination with other programs. 4025. Flood insurance advisory committee. 4026. Expiration of program. 4027. Biennial report to President. 4027a. Report of the Administrator on activities under the National Flood Insurance Pro- gram. 4027b. Assessment of claims-paying ability. 4028. John H. Chafee Coastal Barrier Resources System. 4029. Colorado River Floodway. 4030. Repealed. 4031. Treatment of certain payments. 4032. Treatment of swimming pool enclosures out- side of hurricane season. 4033. Designation of Flood Insurance Advocate. SUBCHAPTER II—ORGANIZATION AND ADMINIS- TRATION OF FLOOD INSURANCE PROGRAM 4041. Implementation of program. PART A—INDUSTRY PROGRAM WITH FEDERAL FINANCIAL ASSISTANCE 4051. Industry flood insurance pool; requirements for participation. 4052. Agreements with flood insurance pool. 4053. Adjustment and payment of claims; judicial review; limitations; jurisdiction. 4054. Premium equalization payments; basis; ag- gregate amount; establishment of des- ignated periods. 4055. Reinsurance coverage. 4056. Emergency implementation of flood insur- ance program; applicability of other provi- sions of law. 4057. Alternative loss allocation system for inde- terminate claims. PART B—GOVERNMENT PROGRAM WITH INDUSTRY ASSISTANCE 4071. Federal operation of program; determination by Administrator; fiscal agents; report to Congress. 4072. Adjustment and payment of claims; judicial review; limitations; jurisdiction. PART C—GENERAL PROVISIONS 4081. Services by insurance industry. 4082. Use of insurance pool, companies, or other private organizations for certain payments. 4083. Settlement of claims; arbitration. 4084. Records and audits. SUBCHAPTER III—COORDINATION OF FLOOD IN- SURANCE WITH LAND-MANAGEMENT PRO- GRAMS IN FLOOD-PRONE AREAS 4101. Identification of flood-prone areas. 4101a. Technical Mapping Advisory Council. 4101b. National Flood Mapping Program. 4101c. Coordination. 4101d. Flood insurance rate map certification. 4101e. Exemption from fees for certain map change requests. 4102. Criteria for land management and use. Sec. 4102a, 4103. Repealed. 4104. Flood elevation determinations. 4104–1. Scientific Resolution Panel. 4104a. Notice requirements. 4104b. Standard hazard determination forms. 4104c. Mitigation assistance. 4104d. National Flood Mitigation Fund. 4105. Disaster mitigation requirements; notifica- tion to flood-prone areas. 4106. Nonparticipation in flood insurance program. 4107. Consultation with local officials; scope. SUBCHAPTER IV—GENERAL PROVISIONS 4121. Definitions. 4122. Studies of other natural disasters; coopera- tion and consultation with other depart- ments and agencies. 4123. Advance payments. 4124. Applicability of fiscal controls. 4125. Finality of certain financial transactions. 4126. Administrative expenses. 4127. Authorization of appropriations; availability. 4128. Rules and regulations. 4129. Federal Insurance Administrator; establish- ment of position. 4130. No cause of action. 4131. Levee certifications. § 4001. Congressional findings and declaration of purpose (a) Necessity and reasons for flood insurance program The Congress finds that (1) from time to time flood disasters have created personal hardships and economic distress which have required un- foreseen disaster relief measures and have placed an increasing burden on the Nation’s re- sources; (2) despite the installation of preventive and protective works and the adoption of other public programs designed to reduce losses caused by flood damage, these methods have not been sufficient to protect adequately against growing exposure to future flood losses; (3) as a matter of national policy, a reasonable method of sharing the risk of flood losses is through a program of flood insurance which can com- plement and encourage preventive and protec- tive measures; and (4) if such a program is initi- ated and carried out gradually, it can be ex- panded as knowledge is gained and experience is appraised, thus eventually making flood insur- ance coverage available on reasonable terms and conditions to persons who have need for such protection. (b) Participation of Federal Government in flood insurance program carried out by private in- surance industry The Congress also finds that (1) many factors have made it uneconomic for the private insur- ance industry alone to make flood insurance available to those in need of such protection on reasonable terms and conditions; but (2) a pro- gram of flood insurance with large-scale partici- pation of the Federal Government and carried out to the maximum extent practicable by the private insurance industry is feasible and can be initiated. (c) Unified national program for flood plain man- agement The Congress further finds that (1) a program of flood insurance can promote the public inter- Page 6002 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4001 est by providing appropriate protection against the perils of flood losses and encouraging sound land use by minimizing exposure of property to flood losses; and (2) the objectives of a flood in- surance program should be integrally related to a unified national program for flood plain man- agement and, to this end, it is the sense of Con- gress that within two years following the effec- tive date of this chapter the President should transmit to the Congress for its consideration any further proposals necessary for such a uni- fied program, including proposals for the alloca- tion of costs among beneficiaries of flood protec- tion. (d) Authorization of flood insurance program; flexibility in program It is therefore the purpose of this chapter to (1) authorize a flood insurance program by means of which flood insurance, over a period of time, can be made available on a nationwide basis through the cooperative efforts of the Fed- eral Government and the private insurance in- dustry, and (2) provide flexibility in the program so that such flood insurance may be based on workable methods of pooling risks, minimizing costs, and distributing burdens equitably among those who will be protected by flood insurance and the general public. (e) Land use adjustments by State and local gov- ernments; development of proposed future construction; assistance of lending and cred- it institutions; relation of Federal assistance to all flood-related programs; continuing studies It is the further purpose of this chapter to (1) encourage State and local governments to make appropriate land use adjustments to constrict the development of land which is exposed to flood damage and minimize damage caused by flood losses, (2) guide the development of pro- posed future construction, where practicable, away from locations which are threatened by flood hazards, (3) encourage lending and credit institutions, as a matter of national policy, to assist in furthering the objectives of the flood insurance program, (4) assure that any Federal assistance provided under the program will be related closely to all flood-related programs and activities of the Federal Government, and (5) au- thorize continuing studies of flood hazards in order to provide for a constant reappraisal of the flood insurance program and its effect on land use requirements. (f) Mudslides The Congress also finds that (1) the damage and loss which results from mudslides is related in cause and similar in effect to that which re- sults directly from storms, deluges, overflowing waters, and other forms of flooding, and (2) the problems involved in providing protection against this damage and loss, and the possibili- ties for making such protection available through a Federal or federally sponsored pro- gram, are similar to those which exist in con- nection with efforts to provide protection against damage and loss caused by such other forms of flooding. It is therefore the further pur- pose of this chapter to make available, by means of the methods, procedures, and instrumental- ities which are otherwise established or avail- able under this chapter for purposes of the flood insurance program, protection against damage and loss resulting from mudslides that are caused by accumulations of water on or under the ground. (Pub. L. 90–448, title XIII, § 1302, Aug. 1, 1968, 82 Stat. 572; Pub. L. 91–152, title IV, § 409(a), Dec. 24, 1969, 83 Stat. 397; Pub. L. 93–234, title I, § 108(a), Dec. 31, 1973, 87 Stat. 979; Pub. L. 103–325, title V, § 552(d), Sept. 23, 1994, 108 Stat. 2269.) Editorial Notes REFERENCES IN TEXT For effective date of this chapter, referred to in sub- sec. (c), see section 1377 of Pub. L. 90–448, set out as an Effective Date note below. This chapter, referred to in subsecs. (d) to (f), 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 below and Tables. AMENDMENTS 1994—Subsec. (g). Pub. L. 103–325 struck out subsec. (g) which read as follows: ‘‘The Congress also finds that (1) the damage and loss which may result from the ero- sion and undermining of shorelines by waves or cur- rents in lakes and other bodies of water exceeding an- ticipated cyclical levels is related in cause and similar in effect to that which results directly from storms, deluges, overflowing waters, and other forms of flood- ing, and (2) the problems involved in providing protec- tion against this damage and loss, and the possibilities for making such protection available through a Federal or federally sponsored program, are similar to those which exist in connection with efforts to provide pro- tection against damage and loss caused by such other forms of flooding. It is therefore the further purpose of this chapter to make available, by means of the meth- ods, procedures, and instrumentalities which are other- wise established or available under this chapter for pur- poses of the flood insurance program, protection against damage and loss resulting from the erosion and undermining of shorelines by waves or currents in lakes and other bodies of water exceeding anticipated cyclical levels.’’ 1973—Subsec. (g). Pub. L. 93–234 added subsec. (g). 1969—Subsec. (f). Pub. L. 91–152 added subsec. (f). Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 90–448, title XIII, § 1377, Aug. 1, 1968, 82 Stat. 589, provided that: ‘‘This title [enacting this chapter, amending section 2414 of this title, repealing sections 2401 to 2413 and 2415 to 2421 of this title, and enacting provisions set out as notes under this section] shall take effect one hundred and twenty days following the date of its enactment [Aug. 1, 1968], except that the Secretary, on the basis of a finding that conditions exist necessitating the prescribing of an additional pe- riod, may prescribe a later effective date which in no event shall be more than one hundred and eighty days following such date of enactment.’’ SHORT TITLE OF 2019 AMENDMENT Pub. L. 116–19, § 1, May 31, 2019, 133 Stat. 870, provided that: ‘‘This Act [amending sections 4016 and 4026 of this title and enacting provisions set out as a note under section 4016 of this title] may be cited as the ‘National Flood Insurance Program Extension Act of 2019’.’’ SHORT TITLE OF 2018 AMENDMENT Pub. L. 115–396, § 1, Dec. 21, 2018, 132 Stat. 5296, pro- vided that: ‘‘This Act [amending sections 4016 and 4026 Page 6003 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4001 of this title and enacting provisions set out as a note under section 4016 of this title] may be cited as the ‘Na- tional Flood Insurance Program Extension Act’.’’ Pub. L. 115–281, § 1, Dec. 1, 2018, 132 Stat. 4191, provided that: ‘‘This Act [amending sections 4016 and 4026 of this title] may be cited as the ‘National Flood Insurance Program Further Extension Act of 2018’.’’ Pub. L. 115–225, § 1, July 31, 2018, 132 Stat. 1624, pro- vided that: ‘‘This Act [amending sections 4016 and 4026 of this title] may be cited as the ‘National Flood Insur- ance Program Extension Act of 2018’.’’ SHORT TITLE OF 2014 AMENDMENT Pub. L. 113–89, § 1(a), Mar. 21, 2014, 128 Stat. 1020, pro- vided that: ‘‘This Act [enacting sections 4005, 4015a, 4033, 4101d, and 4101e of this title, amending sections 4012a, 4013, 4014, 4015, 4017, 4017a, 4081, 4101b, 4102, and 4104 of this title and section 2604 of Title 12, Banks and Banking, enacting provisions set out as notes under sections 4012a, 4014, 4015, and 4102 of this title, and re- pealing provisions set out as a note under section 4012a of this title] may be cited as the ‘Homeowner Flood In- surance Affordability Act of 2014’.’’ SHORT TITLE OF 2012 AMENDMENT Pub. L. 112–141, div. F, title II, § 100201, July 6, 2012, 126 Stat. 916, provided that: ‘‘This subtitle [subtitle A (§§ 100201–100249) of title II of div. F of Pub. L. 112–141, see Tables for classification] may be cited as the ‘Biggert-Waters Flood Insurance Reform Act of 2012’.’’ Pub. L. 112–141, div. F, title II, § 100251, July 6, 2012, 126 Stat. 969, provided that: ‘‘This subtitle [subtitle B (§§ 100251–100253) of title II of div. F of Pub. L. 112–141, enacting section 4057 of this title and section 3611 of Title 33, Navigation and Navigable Waters] may be cited as the ‘Consumer Option for an Alternative Sys- tem to Allocate Losses Act of 2012’ or the ‘COASTAL Act of 2012’.’’ SHORT TITLE OF 2010 AMENDMENT Pub. L. 111–250, § 1, Sept. 30, 2010, 124 Stat. 2630, pro- vided that: ‘‘This Act [amending sections 4016 and 4026 of this title] may be cited as the ‘National Flood Insur- ance Program Reextension Act of 2010’.’’ Pub. L. 111–196, § 1, July 2, 2010, 124 Stat. 1352, pro- vided that: ‘‘This Act [amending sections 4016 and 4026 of this title and enacting provisions set out as a note under section 4016 of this title] may be cited as the ‘Na- tional Flood Insurance Program Extension Act of 2010’.’’ SHORT TITLE OF 2006 AMENDMENT Pub. L. 109–208, § 1, Mar. 23, 2006, 120 Stat. 317, pro- vided that: ‘‘This Act [amending section 4016 of this title] may be cited as the ‘National Flood Insurance Program Enhanced Borrowing Authority Act of 2006’.’’ SHORT TITLE OF 2005 AMENDMENTS Pub. L. 109–106, § 1, Nov. 21, 2005, 119 Stat. 2288, pro- vided that: ‘‘This Act [amending section 4016 of this title] may be cited as the ‘National Flood Insurance Program Further Enhanced Borrowing Authority Act of 2005’.’’ Pub. L. 109–65, § 1, Sept. 20, 2005, 119 Stat. 1998, pro- vided that: ‘‘This Act [amending section 4016 of this title] may be cited as the ‘National Flood Insurance Program Enhanced Borrowing Authority Act of 2005’.’’ SHORT TITLE OF 2004 AMENDMENT Pub. L. 108–264, § 1(a), June 30, 2004, 118 Stat. 712, pro- vided that: ‘‘This Act [enacting sections 4030 and 4102a of this title, amending sections 4011, 4015 to 4017, 4022, 4026, 4056, 4104c, 4104d, 4121, and 4127 of this title, and enacting provisions set out as notes under this section and sections 4011 and 4101 of this title] may be cited as the ‘Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004’.’’ SHORT TITLE OF 2003 AMENDMENTS Pub. L. 108–171, § 1, Dec. 6, 2003, 117 Stat. 2064, provided that: ‘‘This Act [amending sections 4016, 4026, 4056, and 4127 of this title and enacting provisions set out as a note under section 4016 of this title] may be cited as the ‘National Flood Insurance Program Reauthorization Act of 2004’.’’ Pub. L. 108–3, § 1, Jan. 13, 2003, 117 Stat. 7, provided that: ‘‘This Act [amending sections 4016, 4026, 4056, and 4127 of this title and enacting provisions set out as a note under section 4016 of this title] may be cited as the ‘National Flood Insurance Program Reauthorization Act of 2003’.’’ SHORT TITLE OF 1994 AMENDMENT Pub. L. 103–325, title V, § 501, Sept. 23, 1994, 108 Stat. 2255, provided that: ‘‘This title [enacting sections 4104b to 4104d and 5154a of this title, amending this section, sections 4003, 4011, 4012a, 4013, 4015, 4017, 4022, 4026, 4027, 4029, 4056, 4081, 4101, 4104a, 4106, 4121, and 5154 of this title, and sections 1784, 1820, 3305, and 4521 of Title 12, Banks and Banking, repealing section 4103 of this title, enacting provisions set out as notes under this section and sections 4011, 4013, 4014, 4101 to 4103, and 4104c of this title, and repealing provisions set out as a note under section 4015 of this title] may be cited as the ‘Na- tional Flood Insurance Reform Act of 1994’.’’ SHORT TITLE OF 1973 AMENDMENT Pub. L. 93–234, § 1, Dec. 31, 1973, 87 Stat. 975, provided: ‘‘That this Act [enacting sections 4002, 4003, 4012a, 4104, 4105 to 4107, and 4128 of this title, amending this sec- tion, sections 4013 to 4016, 4026, 4054, 4056, 4101, and 4121 of this title, and sections 24 and 1709–1 of Title 12, Banks and Banking, and repealing section 4021 of this title] may be cited as the ‘Flood Disaster Protection Act of 1973’.’’ SHORT TITLE Pub. L. 90–448, title XIII, § 1301, Aug. 1, 1968, 82 Stat. 572, provided that: ‘‘This title [enacting this chapter, amending section 2414 of this title, repealing sections 2401 to 2413 and 2415 to 2421 of this title, and enacting provisions set out as a note under this section] may be cited as the ‘National Flood Insurance Act of 1968’.’’ REGULATIONS Pub. L. 103–325, title V, § 583, Sept. 23, 1994, 108 Stat. 2287, as amended by Pub. L. 109–295, title VI, § 612(c), Oct. 4, 2006, 120 Stat. 1410, provided that: ‘‘The Adminis- trator of the Federal Emergency Management Agency and any appropriate Federal agency may each issue any regulations necessary to carry out the applicable provisions of this title [see Short Title of 1994 Amend- ment note above] and the applicable amendments made by this title.’’ [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.] EVALUATION OF EROSION HAZARDS Pub. L. 103–325, title V, § 577(a)–(g), Sept. 23, 1994, 108 Stat. 2281–2283, required the Director of the Federal Emergency Management Agency to submit a report no later than two years after Sept. 23, 1994, evaluating ero- sion hazards and estimating the impact of erosion on flood insurance claims. Page 6004 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 4002 RELATION OF TITLE V OF PUB. L. 103–325 TO STATE AND LOCAL LAWS Pub. L. 103–325, title V, § 584, Sept. 23, 1994, 108 Stat. 2287, provided that: ‘‘This title [see Short Title of 1994 Amendment note above] and the amendments made by this title may not be construed to preempt, annul, alter, amend, or exempt any person from compliance with any law, ordinance, or regulation of any State or local government with respect to land use, manage- ment, or control.’’ Executive Documents FLOODPLAIN MANAGEMENT For provisions relating to the reduction of the risk of flood loss, the minimization of the impact of floods on human safety, health and welfare, and the management of floodplains, see Ex. Ord. No. 11988, May 24, 1977, 42 F.R. 26951, set out as a note under section 4321 of this title. § 4002. Additional Congressional findings and declaration of purpose (a) The Congress finds that— (1) annual losses throughout the Nation from floods and mudslides are increasing at an alarming rate, largely as a result of the accel- erating development of, and concentration of population in, areas of flood and mudslide haz- ards; (2) the availability of Federal loans, grants, guaranties, insurance, and other forms of fi- nancial assistance are often determining fac- tors in the utilization of land and the location and construction of public and of private in- dustrial, commercial, and residential facili- ties; (3) property acquired or constructed with grants or other Federal assistance may be ex- posed to risk of loss through floods, thus frus- trating the purpose for which such assistance was extended; (4) Federal instrumentalities insure or oth- erwise provide financial protection to banking and credit institutions whose assets include a substantial number of mortgage loans and other indebtedness secured by property ex- posed to loss and damage from floods and mudslides; (5) the Nation cannot afford the tragic losses of life caused annually by flood occurrences, nor the increasing losses of property suffered by flood victims, most of whom are still inad- equately compensated despite the provision of costly disaster relief benefits; and (6) it is in the public interest for persons al- ready living in flood-prone areas to have both an opportunity to purchase flood insurance and access to more adequate limits of cov- erage, so that they will be indemnified, for their losses in the event of future flood disas- ters. (b) The purpose of this Act, therefore, is to— (1) substantially increase the limits of cov- erage authorized under the national flood in- surance program; (2) provide for the expeditious identification of, and the dissemination of information con- cerning, flood-prone areas; (3) require States or local communities, as a condition of future Federal financial assist- ance, to participate in the flood insurance pro- gram and to adopt adequate flood plan ordi- nances with effective enforcement provisions consistent with Federal standards to reduce or avoid future flood losses; and (4) require the purchase of flood insurance by property owners who are being assisted by Federal programs or by federally supervised, regulated, or insured agencies or institutions in the acquisition or improvement of land or facilities located or to be located in identified areas having special flood hazards. (Pub. L. 93–234, § 2, Dec. 31, 1973, 87 Stat. 975.) Editorial Notes REFERENCES IN TEXT This Act, referred to in subsec. (b), means Pub. L. 93–234, Dec. 31, 1973, 87 Stat. 975, known as the Flood Disaster Protection Act of 1973. For complete classi- fication of this Act to the Code, see Short Title of 1973 Amendment note set out under section 4001 of this title and Tables. CODIFICATION Section was enacted as part of the Flood Disaster Protection Act of 1973, and not as part of the National Flood Insurance Act of 1968 which comprises this chap- ter. § 4003. Definitions applicable to Flood Disaster Protection Act of 1973 (a) As used in this Act, unless the context oth- erwise requires, the term— (1) ‘‘community’’ means a State or a polit- ical subdivision thereof which has zoning and building code jurisdiction over a particular area having special flood hazards; (2) ‘‘Federal agency’’ means any department, agency, corporation, or other entity or instru- mentality of the executive branch of the Fed- eral Government, and includes the Federal Na- tional Mortgage Association and the Federal Home Loan Mortgage Corporation; (3) ‘‘financial assistance’’ means any form of loan, grant, guaranty, insurance, payment, re- bate, subsidy, disaster assistance loan or grant, or any other form of direct or indirect Federal assistance, other than general or spe- cial revenue sharing or formula grants made to States; (4) ‘‘financial assistance for acquisition or construction purposes’’ means any form of fi- nancial assistance which is intended in whole or in part for the acquisition, construction, re- construction, repair, or improvement of any publicly or privately owned building or mobile home, and for any machinery, equipment, fix- tures, and furnishings contained or to be con- tained therein, and shall include the purchase or subsidization of mortgages or mortgage loans but shall exclude assistance pursuant to the Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et seq.] (other than assist- ance under such Act in connection with a flood); (5) ‘‘Federal entity for lending regulation’’ means the Board of Governors of the Federal Reserve System, the Federal Deposit Insur- ance Corporation, the Comptroller of the Cur- rency, the National Credit Union Administra- tion, and the Farm Credit Administration, and