the acquisition, development, and operation of marine sanctuaries designated under this chapter. (Pub. L. 92-532, title III, § 304, Oct. 23, 1972, 86 Stat. 1063, amended Pub. L. 94-62, § 4, July 25, 1975, 89 Stat. 303; Pub. L. 94–326, § 4, June 30, 1976, 90 Stat. 725.)

AMENDMENTS

1976-Pub. L. 94-326 authorized appropriations for fiscal year 1977.

1975-Pub. L. 94-62 substituted provisions authorizing to be appropriated not to exceed $10,000,000 for each of the fiscal years 1973, 1974, and 1975, for provisions authorizing to be appropriated for the fiscal year in which this Act was enacted and for the next two fiscal years thereafter not to exceed $10,000,000 for each such fiscal year, and added provisions authorizing to be appropriated not to exceed $6,200,000 for fiscal year 1976, and not to exceed $1,550,000 for the transition period (July 1 through Sept. 30, 1976).

4012. Scope of program and priorities.

(a) Priority for insurance for certain residential
property and small business concerns.
(b) Availability of insurance for other proper-
ties.

(c) Availability of insurance in States or areas
evidencing positive interest in securing
insurance and assuring adoption of ade-
quate land use and control measures.

4012a. Requirement of flood insurance for Federal approval of financial assistance [New]. (a) Amount and term of coverage. (b) Federal regulations for flood insurance requirement; amount of coverage.

(c) State-owned property: exemption; list of States.

4013. Nature and limitation of insurance coverage; regulations.

4014. Estimates of premium rates.

(a) Studies and investigations.

(b) Utilization of services of other Departments and agencies.

(c) Priority to studies and investigations in States or areas evidencing positive interest in securing insurance under program.

4015. Chargeable premium rates.

(a) Establishment; terms and conditions.
(b) Considerations for rates.

(c) Rate with respect to property the construc-
tion or substantial improvement of which
has been started after identification of
area in which property is located has been
published.

(d) Payment of certain sums to Secretary; deposits in Fund.

4016. Financing provisions; issuance of notes or other obligations; limitation; deposits in Fund.

4017. National Flood Insurance Fund.

(a) Establishment; availability.

(b) Credits to Fund.

(c) Investment of moneys in obligations issued or guaranteed by United States.

(d) Availability of Fund if operation of program is carried out through facilities of Federal Government.

(e) Annual budget.

4018. Operating costs and allowances; definitions. 4019. Payment of claims.

(a) Appointment; duties.

(b) Membership.

(c) Compensation and travel expenses. Limitation

standing.

on flood insurance coverage out

4055.

Reinsurance coverage.

(a) Availability for excess losses.

(b) Availability pursuant to contract, agreement, or other arrangement; payment of premium, fee, or other charge.

(c) Excess loss agreement; negotiation.

(d) Submission of excess losses on portfolio basis.

4056. Emergency implementation of flood insurance program; applicability of other provisions of law. PART B.-GOVERNMENT PROGRAM WITH INDUSTRY ASSISTANCE

4071. Federal operation of program; determination by Secretary; fiscal agents; report to the Congress. 4072. Adjustment and payment cf claims; judicial review; limitations; Jurisdiction.

SUBCHAPTER III.-COORDINATION OF FLOOD INSURANCE WITH LAND-MANAGEMENT PROGRAMS IN FLOOD-PRONE AREAS

4101. Identification of flood-prone areas; publication of information; establishment of flood-risk zones; estimates of flood-caused loss.

4102. Criteria for land management and use.

(a) Studies and investigations.

(b) Extent of studies and investigations.

(c) Development of comprehensive criteria designed to encourage adoption of adequate State and local measures.

4103. Purchase of insured properties damaged substantially beyond repair by flood.

4104. Flood elevation determinations [New].

(a) Publication or notification of proposed flood elevation determinations.

(b) Publication of flood elevation determinations; appeal of owner or lessee to local government scientific or technical knowledge or information as basis for appeal; modification of proposed determinations. (c) Appeals by private persons; submission of negativing or contradicting data to community; opinion of community respecting justification for appeal by community; transmission of individual appeals to Secretary; filing of community action with Secretary.

(d) Administrative review of appeals by private persons; modification of proposed determinations; decision of Secretary: form and distribution.

(e) Administrative review of appeals by community; agencies for resolution of conflicting data; availability of flood insurance pending such resolution; time for determination of Secretary; community adoption of local land use and control measures within reasonable time of final determination; public inspection and admissibility in evidence of reports and other administrative information.

(f) Judicial review of final administrative determinations; venue; time for appeal; scope of review; good cause for stay of final determinations.

4104a. Notification of purchaser or lessee of special flood hazards in area of location of improved real estate or mobile home securing loan; regulations prescribing procedures [New].

4122. Studies of other natural disasters; cooperation and consultation with other departments and agencies.

4123. Advance payments.

4124. Applicability of Government Corporation Control Act.

4125. Finality of certain financial transactions. 4126. Administrative expenses.

4127. Authorization of appropriations; availability. 4128. Rules and regulations [New].

§ 4001. Congressional findings and declaration of pur

pose.

(a) The Congress finds that (1) from time to time flood disasters have created personal hardships and economic distress which have required unforeseen disaster relief measures and have placed an in-. creasing burden on the Nation's resources; (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 complement and encourage preventive and protective measures; and (4) if such a program is initiated and carried out gradually, it can be expanded as knowledge is gained and experience is appraised, thus eventually making flood insurance coverage available on reasonable terms and conditions to persons who have need for such protection.

(b) The Congress also finds that (1) many factors have made it uneconomic for the private insurance industry alone to make flood insurance available to those in need of such protection on reasonable terms and conditions; but (2) a program of flood insurance with large-scale participation of the Federal Government and carried out to the maximum extent practicable by the private insurance industry is feasible and can be initiated.

(c) The Congress further finds that (1) a program of flood insurance can promote the public interest 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 insurance program should be integrally related to a unified national program for flood plain management and, to this end, it is the sense of Congress that within two years following the effective date of this chapter the President should transmit to the Congress for its consideration any further proposals necessary for such a unified program, including proposals for the allocation of costs among beneficiaries of flood protection.

(d) 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 Federal Government and the private insurance industry, 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) 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 proposed 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) authorize 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) 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 results 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 possibilities for making such pro tection available through a Federal or federally sponsored program, are similar to those which exist in connection with efforts to provide protection 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 methods, procedures, and instrumentalities which are otherwise established or available 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.

(g) The Congress also finds that (1) the damage and loss which may result from the erosion and undermining of shorelines by waves or currents in lakes and other bodies of water exceeding anticipated cyclical levels is related in cause and similar in effect to that which results 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 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 protection 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 methods, procedures, and instrumentalities which are otherwise established or available under this chapter for purposes 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. (As amended Pub. L. 93-234, title I, § 108 (a), Dec. 31, 1973, 87 Stat. 979.)

AMENDMENTS

1973-Subsec. (g). Pub. L. 93-234 added subsec. (g).

§ 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 accelerating development of, and concentration of population in, areas of flood and mudslide hazards;

(2) the availability of Federal loans, grants, guaranties, insurance, and other forms of financial assistance are often determining factors in the utilization of land and the location and construction of public and of private industrial, commercial, and residential facilities;

(3) property acquired or constructed with grants or other Federal assistance may be exposed to risk of loss through floods, thus frustrating the purpose for which such assistance was extended;

(4) Federal instrumentalities insure or otherwise provide financial protection to banking and credit institutions whose assets include a substantial number of mortgage loans and other indebtedness secured by property exposed 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 credit institutions whose assets include a substanvictims, most of whom are still inadequately compensated despite the provision of costly disaster relief benefits; and

(6) it is in the public interest for persons already living in flood-prone areas to have both an opportunity to purchase flood insurance and access to more adequate limits of coverage, so that they will be indemnified for their losses in the event of future flood disasters.

(b) The purpose of this Act, therefore, is to

(1) substantially increase the limits of coverage authorized under the national flood insurance program;

(2) provide for the expeditious identification of, and the dissemination of information concerning, flood-prone areas;

(3) require States or local communities, as a condition of future Federal financial assistance, to participate in the flood insurance program and to adopt adequate flood plan ordinances 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.)

§ 4003. Additional definitions.

(a) As used in this Act, unless the context otherwise requires, the term

(1) "community" means a State or a political 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 instrumentality of the executive branch of the Federal Government, and includes the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation;

(3) "financial assistance" means any form of loan, grant, guaranty, insurance, payment, rebate, subsidy, disaster assistance loan or grant, or any other form of direct or indirect Federal assistance, other than general or special revenue sharing or formula grants made to States;

(4) "financial assistance for acquisition or construction purposes" means any form of financial assistance which is intended in whole or in part for the acquisition, construction, reconstruction, repair, or improvement of any publicly or privately owned building or mobile home, and for any machinery, equipment, fixtures, and furnishings contained or to be contained therein, and shall include the purchase or subsidization of mortgages or mortgage loans but shall exclude assistance for emergency work essential for the protection and preservation of life and property performed pursuant to the Disaster Relief Act of 1970 or any subsequent Act of Congress which supersedes or modifies the Disaster Relief Act of 1970;

(5) "Federal instrumentality responsible for the supervision, approval, regulation, or insuring of banks, savings and loan associations, or similar institutions" means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Federal Home Loan Bank Board, the Federal Savings and Loan Insurance Corporation, and the National Credit Union Administration; and

(6) "Secretary" means the Secretary of Housing and Urban Development.

(b) The Secretary is authorized to define or redefine, by rules and regulations, any scientific or technical term used in this Act, insofar as such definition is not inconsistent with the purposes of this Act. (Pub. L. 93-234, § 3, Dec. 31, 1973, 87 Stat. 976.)

4011. Authorization to establish and carry out program; participation by insurance companies and other insurers.

(a) To carry out the purposes of this chapter, the Secretary of Housing and Urban Development is authorized to establish and carry out a national flood insurance program which will enable interested persons to purchase insurance against loss resulting from physical damage to or loss of real property or personal property related thereto arising

from any flood occurring in the United States.

(b) In carrying out the flood insurance program the Secretary shall, to the maximum extent practicable, encourage and arrange for

(1) appropriate financial participation and risk sharing in the program by insurance companies and other insurers, and

(2) other appropriate participation, on other than a risk-sharing basis, by insurance companies and other insurers, insurance agents and brokers, and insurance adjustinent organizations, in accordance with the provisions of subchapter II of this chapter. (Pub. L. 90-448, title XIII, § 1304, Aug. 1, 1968, 82 Stat. 574.)

§ 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 Secretary shall afford a priority to making flood insurance available to cover residential properties which are designed for the occupancy 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 necessary, the Secretary determines that it would be feasible to extend the flood insurance program to cover other properties, he may take such action under this chapter as from time to time may be necessary in order to make flood insurance available to cover, on such basis as may be feasible, any types and classes of(A) other residential properties, (B) other business properties, (C) agricultural properties,

(D) properties occupied by private nonprofit organizations, and

(E) properties owned by State and local governments 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.

(e) Availability of insurance in States or areas evidencing positive interest in securing insurance and assuring adoption of adequate land use and control measures.

The Secretary shall make flood insurance available in only those States or areas (or subdivisions thereof) which he has determined have

(1) evidenced a positive interest in securing flood insurance coverage under the flood insurance program, and

(2) given satisfactory assurance that by December 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 management and use developed under section 4102 of this title, and that the application and enforcement of such measures will commence as soon as technical in