,,ii #aadth ,,congress #ast ,session ,s4 #afgi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #be1 #bjae ,mr4 ,heller 7for himself and ,mr4 ,tester7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,flood ,disaster ,protection ,act of #aigc to require that certain buildings and personal property be covered by flood insurance1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,flood ,insurance ,market ,parity and ,modernization ,act4 #b4 ,private flood insurance 7a7 ,mandatory purchase requirement 7#a7 ,in general ,section #ajb of the ,flood ,disaster ,protection ,act of #aigc 7#db ,u4,s4,c4 #djab;a7 is amended by striking ,sec4 #ajb4 7a7 and all that follows through subsection 7b7 and inserting the following3 #ajb4 7a7 ,after the expiration of sixty days following the date of enactment of this ,act1 no ,federal officer or agency shall approve any financial assistance for acquisition or construction purposes for use in any area that has been identified by the ,administrator as an area having special flood hazards and in which the sale of flood insurance has been made available under the ,national ,flood ,insurance ,act of #aifh1 unless the building or mobile home and any personal property to which such financial assistance relates is covered by flood insurance3 ,provided1 ,that the amount of flood insurance 7#a7 in the case of ,federal flood insurance1 is at least equal to the development or project cost of the building1 mobile home1 or personal property 7less estimated land cost71 the outstanding principal balance of the loan1 or the maximum limit of ,federal flood insurance coverage made available with respect to the particular type of property1 whichever is less2 or 7#b7 in the case of private flood insurance1 is at least equal to the development or project cost of the building1 mobile home1 or personal property 7less estimated land cost71 the outstanding principal balance of the loan1 or the maximum limit of ,federal flood insurance coverage made available with respect to the particular property1 whichever is less3 ,provided further1 ,that if the financial assistance provided is in the form of a loan or an insurance or guaranty of a loan1 the amount of flood insurance required need not exceed the outstanding principal balance of the loan and need not be required beyond the term of the loan4 ,the requirement of maintaining flood insurance shall apply during the life of the property1 regardless of transfer of ownership of such property4 7b7 ,requirement for mortgage loans 7#a7 ,regulated lending institutions ,each ,federal entity for lending regulation 7after consultation and coordination with the ,financial ,institutions ,examination ,council established under the ,federal ,financial ,institutions ,examination ,council ,act of #aigd7 shall by regulation direct regulated lending institutions not to make1 increase1 extend1 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 ,administrator as an area having special flood hazards and in which flood insurance has been made available under the ,national ,flood ,insurance ,act of #aifh1 unless the building or mobile home and any personal property securing such loan is covered for the term of the loan by flood insurance3 ,provided1 ,that the amount of flood insurance 7,a7 in the case of ,federal flood insurance1 is at least equal to the outstanding principal balance of the loan or the maximum limit of ,federal flood insurance coverage made available with respect to the particular type of property1 whichever is less2 or 7,b7 in the case of private flood insurance1 is at least equal to the outstanding principal balance of the loan or the maximum limit of ,federal flood insurance coverage made available with respect to the particular type of property1 whichever is less4 7#b7 ,federal agency lenders 7,a7 ,in general ,a ,federal agency lender may not make1 increase1 extend1 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 ,administrator as an area having special flood hazards and in which flood insurance has been made available under the ,national ,flood ,insurance ,act of #aifh1 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 accordance with paragraph 7#a74 ,each ,federal agency lender may issue any regulations necessary to carry out this paragraph4 ,such regulations shall be consistent with and substantially identical to the regulations issued under paragraph 7#a74 7,b7 ,requirement to accept flood insurance ,each ,federal agency lender shall accept flood insurance as satisfaction of the flood insurance coverage requirement under subparagraph 7,a7 if the flood insurance coverage meets the requirements for coverage under that subparagraph4 7#c7 ,government-sponsored enterprises for housing ,the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation shall implement procedures reasonably designed to ensure that1 for any loan that is-- 7,a7 secured by improved real estate or a mobile home located in an area that has been identified1 at the time of the origination of the loan or at any time during the term of the loan1 by the ,administrator as an area having special flood hazards and in which flood insurance is available under the ,national ,flood ,insurance ,act of #aifh1 and 7,b7 purchased by such entity1 the building or mobile home and any personal property securing the loan is covered for the term of the loan by flood insurance in the amount provided in paragraph 7#a74 ,the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation shall accept flood insurance as satisfaction of the flood insurance coverage requirement under paragraph 7#a7 if the flood insurance coverage provided meets the requirements for coverage under that paragraph4 7#d7 ,applicability 7,a7 ,existing coverage ,except as provided in subparagraph 7,b71 paragraph 7#a7 shall apply on the date of enactment of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid4 7,b7 ,new coverage ,paragraphs 7#b7 and 7#c7 shall apply only with respect to any loan made1 increased1 extended1 or renewed after the expiration of the #a-year period beginning on the date of enactment of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid4 ,paragraph 7#a7 shall apply with respect to any loan made1 increased1 extended1 or renewed by any lender supervised by the ,farm ,credit ,administration only after the expiration of the period under this subparagraph4 7,c7 ,continued effect of regulations ,notwithstanding any other provision of this subsection1 the regulations to carry out paragraph 7#a71 as in effect immediately before the date of enactment of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid1 shall continue to apply until the regulations issued to carry out paragraph 7#a7 as amended by section #ebb7;a7 of such ,act take effect4 7#e7 ,rule of construction ,except as otherwise specified1 any reference to flood insurance in this section shall be considered to include ,federal flood insurance and private flood insurance4 7#f7 ,definitions 7,a7 ,flood insurance ,in this section1 the term flood insurance means-- 7i7 ,federal flood insurance2 and 7ii7 private flood insurance4 7,b7 ,other definitions ,in this section-- 7i7 the term ,federal flood insurance means an insurance policy made available under the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #djja et seq472 7ii7 the term private flood insurance means an insurance policy that-- 7,i7 is issued by an insurance company that is-- 7aa7 licensed1 admitted1 or otherwise approved to engage in the business of insurance in the ,state in which the insured building is located1 by the insurance regulator of that ,state2 or 7bb7 eligible as a nonadmitted insurer to provide insurance in the home ,state of the insured1 in accordance with sections #eba through #ebg of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ae ,u4,s4,c4 #hbja through #hbjf72 7,,ii7 is issued by an insurance company that is not otherwise disapproved as a surplus lines insurer by the insurance regulator of the ,state in which the property to be insured is located2 and 7,,iii7 provides flood insurance coverage that complies with the laws and regulations of that ,state2 and 7iii7 the term ,state means any ,state of the ,united ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 ,guam1 the ,northern ,mariana ,islands1 the ,virgin ,islands1 and ,american ,samoa4 4 7#b7 ,technical and conforming amendment ,section #acfd7;a77#c77;,c7 of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #dajd;a7a77#c77;,c77 is amended by striking 1 as required under section #ajb7;b77#f7 of the ,flood ,disaster ,protection ,act of #aigc 7#db ,u4,s4,c4 #djab;a7b77#f774 7b7 ,effect of private flood insurance coverage on continuous coverage requirements ,section #acjh of the ,national ,flood ,insurance ,act of #aifh 7#db ,u4,s4,c4 #djae7 is amended by adding at the end the following3 7n7 ,effect of private flood insurance coverage on continuous coverage requirements ,for purposes of applying any statutory1 regulatory1 or administrative continuous coverage requirement1 including under section #acjg7;g77#a71 the ,administrator shall consider any period during which a property was continuously covered by private flood insurance 7as defined in section #ajb7;b77#f7 of the ,flood ,disaster ,protection ,act of #aigc 7#db ,u4,s4,c4 #djab;a7b77#f777 to be a period of continuous coverage4 4