To repeal the mandatory flood insurance coverage requirement for commercial properties located in flood hazard areas, and for other purposes.

I 116TH CONGRESS 1ST SESSION H. R. 470 To repeal the mandatory flood insurance coverage requirement for commercial properties located in flood hazard areas, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JANUARY 10, 2019 Mr. LUETKEMEYER introduced the following bill; which was referred to the Committee on Financial Services A BILL To repeal the mandatory flood insurance coverage require- ment for commercial properties located in flood hazard areas, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. OPT-OUT OF MANDATORY COVERAGE REQUIRE- 3 MENT FOR COMMERCIAL PROPERTIES. 4 (a) AMENDMENTS TO FLOOD DISASTER PROTECTION 5 ACT OF 1973.—The Flood Disaster Protection Act of 6 1973 is amended— 7 (1) in section 3(a) (42 U.S.C. 4003(a))— 8 (A) in paragraph (10), by striking ‘‘and’’ 9 at the end; 10 VerDate Sep 11 2014 02:12 Jan 25, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H470.IH H470 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 470 IH (B) in paragraph (11), by striking the pe- 1 riod at the end and inserting ‘‘; and’’; and 2 (C) by adding at the end the following new 3 paragraph: 4 ‘‘(12) ‘residential improved real estate’ means 5 improved real estate that— 6 ‘‘(A) is primarily used for residential pur- 7 poses, as defined by the Federal entities for 8 lending regulation; and 9 ‘‘(B) secures financing or financial assist- 10 ance provided through a federally related single 11 family loan program, as defined by the Federal 12 entities for lending regulation.’’; and 13 (2) in section 102 (42 U.S.C. 4012a)— 14 (A) in subsection (b)— 15 (i) in paragraph (1)(A)— 16 (I) by inserting ‘‘residential’’ be- 17 fore ‘‘improved real estate’’; and 18 (II) by inserting ‘‘residential’’ be- 19 fore ‘‘building or mobile home’’; 20 (ii) in paragraph (2)— 21 (I) by inserting ‘‘residential’’ be- 22 fore ‘‘improved real estate’’; and 23 (II) by inserting ‘‘residential’’ be- 24 fore ‘‘building or mobile home’’; and 25 VerDate Sep 11 2014 02:12 Jan 25, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H470.IH H470 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 470 IH (iii) in paragraph (3)— 1 (I) in subparagraph (A), by in- 2 serting ‘‘residential’’ before ‘‘improved 3 real estate’’; and 4 (II) in the matter after and 5 below subparagraph (B), by inserting 6 ‘‘residential’’ before ‘‘building or mo- 7 bile home’’; 8 (B) in subsection (c)(3), by striking ‘‘, in 9 the case of any residential property, for any 10 structure that is a part of such property’’ and 11 inserting ‘‘for any structure that is part of a 12 residential property’’; 13 (C) in subsection (e)— 14 (i) in paragraph (1)— 15 (I) by inserting ‘‘residential’’ be- 16 fore ‘‘improved real estate’’; and 17 (II) by inserting ‘‘residential’’ be- 18 fore ‘‘building or mobile home’’ each 19 place such term appears; and 20 (ii) in paragraph (5)— 21 (I) in subparagraph (A)— 22 (aa) by inserting ‘‘residen- 23 tial’’ before ‘‘improved real es- 24 VerDate Sep 11 2014 02:12 Jan 25, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H470.IH H470 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 470 IH tate’’ each place such term ap- 1 pears; and 2 (bb) by inserting ‘‘residen- 3 tial’’ before ‘‘building or mobile 4 home’’ each place such term ap- 5 pears; 6 (II) in subparagraph (B), by in- 7 serting ‘‘residential’’ before ‘‘building 8 or mobile home’’ each place such term 9 appears; and 10 (III) in subparagraph (C), by in- 11 serting ‘‘residential’’ before ‘‘building 12 or mobile home’’; and 13 (D) in subsection (h)— 14 (i) by inserting ‘‘residential’’ before 15 ‘‘improved real estate’’ each place such 16 term appears; and 17 (ii) in the matter preceding paragraph 18 (1), by inserting ‘‘residential’’ before 19 ‘‘building or mobile home’’. 20 (b) AMENDMENTS TO NATIONAL FLOOD INSURANCE 21 ACT OF 1968.—The National Flood Insurance Act of 22 1968 is amended— 23 (1) in section 1364(a) (42 U.S.C. 4104a(a))— 24 VerDate Sep 11 2014 02:12 Jan 25, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H470.IH H470 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 470 IH (A) in paragraph (1), by inserting ‘‘resi- 1 dential’’ before ‘‘improved real estate’’; 2 (B) in paragraph (2), by inserting ‘‘resi- 3 dential’’ before ‘‘improved real estate’’; and 4 (C) in paragraph (3)(A), by inserting ‘‘res- 5 idential’’ before ‘‘building’’; 6 (2) in section 1365 (42 U.S.C. 4104b)— 7 (A) in subsection (a)— 8 (i) by inserting ‘‘residential’’ before 9 ‘‘improved real estate’’; and 10 (ii) by inserting ‘‘residential’’ before 11 ‘‘building’’; 12 (B) in subsection (b)(2)— 13 (i) by inserting ‘‘residential’’ before 14 ‘‘building’’ each place such term appears; 15 and 16 (ii) by inserting ‘‘residential’’ before 17 ‘‘improved real estate’’ each place such 18 term appears; 19 (C) in subsection (d), by inserting ‘‘resi- 20 dential’’ before ‘‘improved real estate’’ each 21 place such term appears; and 22 (D) in subsection (e)— 23 (i) by inserting ‘‘residential’’ before 24 ‘‘improved real estate’’; and 25 VerDate Sep 11 2014 02:12 Jan 25, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H470.IH H470 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 470 IH (ii) by inserting ‘‘residential’’ before 1 ‘‘building’’ each place such term appears; 2 and 3 (3) in section 1370 (42 U.S.C. 4121)— 4 (A) in paragraph (8), by inserting ‘‘resi- 5 dential’’ before ‘‘improved real estate’’; 6 (B) by redesignating paragraphs (14) and 7 (15) as paragraphs (15) and (16), respectively; 8 and 9 (C) by inserting after paragraph (13) the 10 following new paragraph: 11 ‘‘(14) the term ‘residential improved real estate’ 12 means improved real estate that— 13 ‘‘(A) is primarily used for residential pur- 14 poses, as defined by the Federal entities for 15 lending regulation; and 16 ‘‘(B) secures financing or financial assist- 17 ance provided through a federally related single 18 family loan program, as defined by the Federal 19 entities for lending regulation;’’. 20 (c) RULE OF CONSTRUCTION.—This section and the 21 amendments made by this section may not be construed 22 to prohibit the Administrator of the Federal Emergency 23 Management Agency from offering flood insurance cov- 24 erage under the National Flood Insurance Program for 25 VerDate Sep 11 2014 02:12 Jan 25, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H470.IH H470 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 470 IH eligible non-residential properties, other residential multi- 1 family properties, or structures financed with commercial 2 loans, or to prohibit the purchase of such coverage for 3 such eligible properties. 4 Æ VerDate Sep 11 2014 02:12 Jan 25, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H470.IH H470 pamtmann on DSKBFK8HB2PROD with BILLS