,,ii #aaeth ,,congress #ast ,session ,s4 #efc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #h1 #bjag,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 ,amount and term of coverage ,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 the end of subsection 7a7 and inserting the following3 #ajb4 7a7 ,amount and term of coverage ,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 #aifh 7#db ,u4,s4,c4 #djja et seq471 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 type of 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 4 7#b7 ,requirement for mortgage loans ,subsection 7b7 of section #ajb of the ,flood ,disaster ,protection ,act of #aigc 7#db ,u4,s4,c4 #djab;a7b77 is amended-- 7,a7 by striking the subsection designation and all that follows through the end of paragraph 7#e7 and inserting the following3 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 #aigd 7#ab ,u4,s4,c4 #ccja et seq477 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 #aifh 7#db ,u4,s4,c4 #djja et seq471 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 #aifh 7#db ,u4,s4,c4 #djja et seq471 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 #aifh 7#db ,u4,s4,c4 #djja et seq471 and 7,b7 purchased or guaranteed 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 paragraph and any requirements established by the ,federal ,national ,mortgage ,association or the ,federal ,home ,loan ,corporation1 respectively1 relating to the financial strength of private insurance companies from which the ,federal ,national ,mortgage ,association or the ,federal ,home ,loan ,mortgage ,corporation will accept private flood insurance1 provided that such requirements shall not affect or conflict with any ,state law1 regulation1 or procedure concerning the regulation of the business of insurance4 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 #aiid 7#ab ,u4,s4,c4 #dgja et seq474 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 #aiid 7#ab ,u4,s4,c4 #dgja et seq474 ,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 #aiid 7#ab ,u4,s4,c4 #dgja et seq471 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 ,nothing in this subsection shall be construed to supersede or limit the authority of a ,federal entity for lending regulation1 the ,federal ,housing ,finance ,agency1 a ,federal agency lender1 the ,federal ,national ,mortgage ,association1 or the ,federal ,home ,loan ,mortgage ,corporation to establish requirements relating to the financial strength of private insurance companies from which the entity or agency will accept private flood insurance1 provided that such requirements shall not affect or conflict with any ,state law1 regulation1 or procedure concerning the regulation of the business of insurance4 2 and 7,b7 by striking paragraph 7#g7 and inserting the following new paragraph3 7#g7 ,definitions ,in this section3 7,a7 ,flood insurance ,the term flood insurance means-- 7i7 ,federal flood insurance2 and 7ii7 private flood insurance4 7,b7 ,federal flood insurance 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 seq474 7,c7 ,private flood insurance ,the term private flood insurance means an insurance policy that-- 7i7 is issued by an insurance company that is-- 7,i7 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 7,,ii7 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 7ii7 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 7iii7 provides flood insurance coverage that complies with the laws and regulations of that ,state4 7,d7 ,state ,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 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#g7 of the ,flood ,disaster ,protection ,act of #aigc 7#db ,u4,s4,c4 #djab;a7b77#g777 to be a period of continuous coverage4 4