,,ii #aaf? ,,congress #a/ ,session ,s4 #baib ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #ah1 #bjai,mr4 ,re$ 7= himself1 ,mr4 ,k5n$y1 & ,mr4 ,m55dez7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to am5d ! ,national ,flood ,insurance ,act ( #aifh to all[ ! ,adm9i/rator ( ! ,f$]al ,em]g5cy ,managem5t ,ag5cy to provide capitalization grants to ,/ates to e/abli% revolv+ funds to provide fund+ assi/ance to r$uce flood risks1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,/ate ,flood ,mitigation ,revolv+ ,fund ,act ( #bjai4 #b4 ,/ate revolv+ loan funds = flood mitigation 7a7 ,9 g5]al ,*apt] ,i ( ! ,national ,flood ,insurance ,act ( #aifh 7#db ,u4,s4,c4 #djaa et seq47 is am5d$ by add+ at ! end ! foll[+3 #acbf4 ,/ate revolv+ loan funds = flood mitigation 7a7 ,def9itions ,9 ?is section3 7#a7 ,community rat+ sy/em ,! t]m ,community ,rat+ ,sy/em means ! community rat+ sy/em program c>ri$ out "u section #acae7;b74 7#b7 ,eligible /ate ,! t]m eligible ,/ate means a ,/ate1 ! ,di/rict ( ,columbia1 & ! ,commonweal? ( ,pu]to ,rico4 7#c7 ,insul> area ,! t]m insul> area means-- 7,a7 ,guam2 7,b7 ,am]ican ,samoa2 7,c7 ! ,commonweal? ( ! ,nor!rn ,m>iana ,isl&s2 7,d7 ! ,f$]at$ ,/ates ( ,micronesia2 7,e7 ! ,republic ( ! ,m>%all ,isl&s2 7,f7 ! ,republic ( ,palau2 & 7,g7 ! ,unit$ ,/ates ,virg9 ,isl&s4 7#d7 ,int5d$ use plan ,! t]m int5d$ use plan means a plan prep>$ "u subsection 7d77#a74 7#e7 ,l[-income geographic area ,! t]m l[-income geographic area means an area describ$ 9 p>agraph 7#a7 or 7#b7 ( section #cja7;a7 ( ! ,public ,works & ,economic ,developm5t ,act ( #aife 7#db ,u4,s4,c4 #cafa7;a774 7#f7 ,l[-income home[n] ,! t]m l[-income home[n] means ! own] ( a prim>y resid5ce1 ! h\sehold income ( :i* 9 a taxable ye> is n m ?an #hj p]c5t ( ! m$ian income = ! area 9 :i* ! resid5ce is locat$4 7#g7 ,p>ticipat+ ,/ate ,! t]m p>ticipat+ ,/ate means an eligible ,/ate t-- 7,a7 has ent]$ into an agreem5t "u subsection 7b77#a72 & 7,b7 agrees to comply ) ! requirem5ts ( ?is section4 7#h7 ,pre-,,firm build+ ,! t]m pre-,,firm build+ means a build+ = :i* con/ruction or sub/antial improvem5t occurr$ be=e ! effective date ( ! initial ,flood ,insurance ,rate ,map publi%$ by ! ,adm9i/rator "u section #acfj = ! area 9 :i* ! build+ is locat$4 7#i7 ,repetitive loss /ructure ,! t]m repetitive loss /ructure has ! mean+ giv5 ! t]m 9 section #acgj7;a74 7#aj7 ,sev]e repetitive loss prop]ty ,! t]m sev]e repetitive loss prop]ty has ! mean+ giv5 ! t]m 9 section #acjg7;h74 7#aa7 ,/ate loan fund ,! t]m ,/ate loan fund means a flood mitigation assi/ance revolv+ loan fund e/abli%$ by an eligible ,/ate "u ?is section4 7#ab7 ,tribal gov]nm5t ,! t]m tribal gov]nm5t means ! recogniz$ gov]nm5t ( an ,indian tribe1 or ! gov]n+ body ( an ,alaska ,native regional or village corporation1 t has be5 det]m9$ eligible to receive s]vices f ! ,bureau ( ,indian ,affairs4 7b7 ,g5]al au?ority 7#a7 ,9 g5]al ,! ,adm9i/rator may ent] into an agreem5t ) an eligible ,/ate to provide a capitalization grant = ! eligible ,/ate to e/abli% a revolv+ fund t w provide fund+ assi/ance to help home[n]s1 bus9esses1 nonpr(it organizations1 & communities r$uce flood risk 9 ord] to decrease-- 7,a7 ! loss ( life & prop]ty2 7,b7 ! co/ ( flood insurance2 & 7,c7 ,f$]al disa/] paym5ts4 7#b7 ,tim+ ( deposit & agreem5ts = di/ribution ( funds 7,a7 ,9 g5]al ,n lat] ?an ! la/ day ( ! fiscal ye> foll[+ ! fiscal ye> 9 :i* a capitalization grant is made to a p>ticipat+ ,/ate "u p>agraph 7#a71 ! p>ticipat+ ,/ate %all-- 7i7 deposit ! grant 9 ! ,/ate loan fund ( ! ,/ate2 & 7ii7 ent] into #a or m b9d+ agreem5ts t provide = ! ,/ate to di/ribute ! grant funds = purposes au?oriz$ "u subsection 7c7 su* t-- 7,i7 9 ! case ( ! initial grant made to a ,/ate "u ?is section1 n less ?an #ge p]c5t ( ! am\nt ( ! grant %all be di/ribut$ be=e ! end ( ! #b-ye> p]iod beg9n+ on ! date on :i* ! funds are deposit$ 9 ! ,/ate loan fund ( ! ,/ate2 & 7,,ii7 9 ! case ( any subsequ5t grant made to a ,/ate "u ?is section1 n less ?an #ij p]c5t ( ! am\nt ( ! grant %all be di/ribut$ be=e ! end ( ! #a-ye> p]iod beg9n+ on ! date on :i* ! funds are deposit$ 9 ! ,/ate loan fund ( ! ,/ate4 7,b7 ,noncompliance ,except z provid$ 9 subp>agraph 7,c71 if a p>ticipat+ ,/ate does n comply ) subp>agraph 7,a7 ) respect to a grant1 ! ,adm9i/rator %all reallocate ! grant 9 accordance ) p>agraph 7#c77;,b74 7,c7 ,exception ,! ,adm9i/rator may n reallocate any funds "u subp>agraph 7,b7 to a p>ticipat+ ,/ate t violat$ subp>agraph 7,a7 ) respect to a grant made dur+ ! same fiscal ye> 9 :i* ! funds to be reallocat$ 7 orig9ally made available4 7#c7 ,allocation 7,a7 ,9 g5]al ,! ,adm9i/rator %all allocate am\nts made available to c>ry out ?is section to p>ticipat+ ,/ates-- 7i7 = ! p>ticipat+ ,/ates to deposit 9 ! ,/ate loan funds e/abli%$ by ! p>ticipat+ ,/ates2 & 7ii7 except z provid$ 9 p>agraph 7#f71 9 accordance ) ! requirem5ts describ$ 9 subp>agraph 7,b74 7,b7 ,requirem5ts ,! requirem5ts describ$ 9 ?is subp>agraph are z foll[s3 7i7 ,fifty p]c5t ( ! total am\nt made available "u subp>agraph 7,a7 %all be allocat$ s t ea* p>ticipat+ ,/ate receives ! p]c5tage am\nt t is obta9$ by divid+ ! numb] ( prop]ties t 7 insur$ "u ! national flood insurance program 9 t ,/ate 9 ! fiscal ye> prec$+ ! fiscal ye> 9 :i* ! am\nt is allocat$ by ! total numb] ( prop]ties t 7 insur$ "u ! national flood insurance program 9 ! fiscal ye> prec$+ ! fiscal ye> 9 :i* ! am\nt is allocat$4 7ii7 ,fifty p]c5t ( ! total am\nt made available "u subp>agraph 7,a7 %all be allocat$ s t ea* p>ticipat+ ,/ate receives a p]c5tage ( funds t is equal to ! product obta9$ "u clause 7iii77,,iv7 ) respect to t p>ticipat+ ,/ate aft] foll[+ ! proc$ures describ$ 9 clause 7iii74 7iii7 ,! proc$ures describ$ 9 ?is clause are z foll[s3 7,i7 ,divide ! total am\nt collect$ 9 premiums = prop]ties insur$ "u ! national flood insurance program 9 ea* p>ticipat+ ,/ate dur+ ! previ\s fiscal ye> by ! numb] ( prop]ties insur$ "u ! national flood insurance program 9 t ,/ate = t fiscal ye>4 7,,ii7 ,add toge!r ea* quoti5t obta9$ "u subclause 7,i74 7,,iii7 ,= ea* p>ticipat+ ,/ate1 divide ! quoti5t obta9$ "u subclause 7,i7 ) respect to t ,/ate by ! sum obta9$ "u subclause 7,,ii74 7,,iv7 ,= ea* p>ticipat+ ,/ate1 multiply ! am\nt t is #ej p]c5t ( ! total am\nt made available "u subp>agraph 7,a7 by ! quoti5t obta9$ "u subclause 7,,iii74 7iv7 ,except z provid$ 9 p>agraph 7#e71 9 a fiscal ye>-- 7,i7 a p>ticipat+ ,/ate may n receive m ?an #ae p]c5t ( ! total am\nt t is made available "u subp>agraph 7,a7 9 t fiscal ye>2 & 7,,ii7 if a p>ticipat+ ,/ate1 bas$ on ! requirem5ts "u clauses 7i7 ?r\gh 7iii71 w\ld1 b = ! limitation "u subclause 7,i7 ( ?is clause1 receive an am\nt t is great] ?an ! am\nt t ! ,/ate is au?oriz$ to receive "u t subclause1 ! diff]5ce betwe5 ! au?oriz$ am\nt & ! am\nt o!rwise due to ! ,/ate "u clauses 7i7 ?r\gh 7iii7 %all be allocat$ to o!r p>ticipat+ ,/ates-- 7aa7 t1 9 t fiscal ye>1 h n receiv$ an am\nt "u subp>agraph 7,a7 t is m ?an ! au?oriz$ am\nt "u subclause 7,i7 ( ?is clause2 & 7bb7 by us+ ! requirem5ts "u clauses 7i7 ?r\gh 7iii71 except t a p>ticipat+ ,/ate may receive an allocation "u ?is subclause only if ! allocation does n result 9 ! ,/ate receiv+ a total am\nt = ! fiscal ye> "u subp>agraph 7,a7 t is great] ?an ! au?oriz$ am\nt "u subclause 7,i74 7#d7 ,no revolv+ fund requir$ 7,a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is section1 & subject to subp>agraph 7,b71 a p>ticipat+ ,/ate t receives less ?an #d1jjj1jjj "u p>agraph 7#c77;,b7 9 a fiscal ye> may di/ribute ! funds directly 9 ! =m ( grants or te*nical assi/ance = a purpose describ$ 9 subsection 7c77#b71 )\t reg>d to :e!r ! ,/ate has e/abli%$ a ,/ate loan fund4 7,b7 ,/ate mat*+ ,a p>ticipat+ ,/ate t ex]cises ! au?ority "u subp>agraph 7,a7 9 a fiscal ye> %all provide mat*+ funds f non-,f$]al s\rces 9 an am\nt t is equal to #be p]c5t ( ! am\nt t ! ,/ate receives "u p>agraph 7#c77;,b7 9 t fiscal ye> = purposes describ$ 9 subp>agraph 7,a74 7#e7 ,allocation ( rema9+ funds ,aft] allocat+ am\nts made available to c>ry out ?is section = a fiscal ye> 9 accordance ) p>agraph 7#c71 ! ,adm9i/rator %all allocate any rema9+ am\nts made available = t fiscal ye> to p>ticipat+ ,/ates1 us+ ! proc$ures describ$ 9 clauses 7i7 ?r\gh 7iii7 ( p>agraph 7#c77;,b74 7#f7 ,res]vation ( funds ,! ,adm9i/rator %all res]ve n m ?an #a4e p]c5t ( ! am\nt made available to c>ry out ?is section 9 a fiscal ye>-- 7,a7 = adm9i/rative co/s incurr$ 9 c>ry+ out ?is section2 7,b7 to provide te*nical assi/ance to recipi5ts ( grants "u ?is section2 & 7,c7 to ent] into grant agreem5ts ) tribal gov]nm5ts & insul> areas1 ) ! grant funds to be di/ribut$-- 7i7 accord+ to crit]ia e/abli%$ by ! ,adm9i/rator2 & 7ii7 = a purpose describ$ 9 subsection 7c77#b74 7c7 ,use ( funds 7#a7 ,9 g5]al ,am\nts deposit$ 9 a ,/ate loan fund1 includ+ repaym5ts ( loans made f ! fund & int]e/ e>n$ on ! am\nts 9 ! fund1 %all be us$-- 7,a7 consi/5t ) p>agraph 7#b7 & subsection 7g71 to provide f9ancial assi/ance =-- 7i7 home[n]s1 bus9esses1 & nonpr(it organizations t are eligible to p>ticipate 9 ! national flood insurance program2 & 7ii7 any local gov]nm5t t p>ticipates 9 ! national flood insurance program2 7,b7 z a s\rce ( rev5ue & security = lev]ag$ loans1 ! proce$s ( :i* %all be deposit$ 9 ! ,/ate loan fund2 or 7,c7 = ! sale ( bonds z security = paym5t ( ! pr9cipal & int]e/ on rev5ue or g5]al obligation bonds issu$ by ! p>ticipat+ ,/ate to provide mat*+ funds "u subsection 7f71 if ! proce$s f ! sale ( ! bonds are deposit$ 9 ! ,/ate loan fund4 7#b7 ,purposes ,a recipi5t ( f9ancial assi/ance provid$ ?r\gh am\nts f a ,/ate loan fund-- 7,a7 %all use ! am\nts to r$uce-- 7i7 flood risk2 or 7ii7 pot5tial claims = losses cov]$ "u ! national flood insurance program2 7,b7 %all use ! am\nts 9 a co/-effective mann] "u requirem5ts e/abli%$ by ! ,/ate1 :i* may require an applicant = f9ancial assi/ance to submit any in=mation t ! ,/ate consid]s relevant or necess>y be=e ! date on :i* ! applicant receives ! assi/ance2 7,c7 %all use ! am\nts = projects t-- 7i7 meet design & con/ruction /&>ds e/abli%$ by ! ,adm9i/rator2 7ii7 are locat$ 9 communities t-- 7,i7 p>ticipate 9 ! national flood insurance program2 & 7,,ii7 h develop$ a ,/ate or community haz>d mitigation plan t has be5 approv$ by ! ,adm9i/rator "u section #acff2 7iii7 address-- 7,i7 a repetitive loss /ructure or a sev]e repetitive loss prop]ty2 or 7,,ii7 flood risk 9 ! #ejj-ye> floodpla91 areas ( residual flood risk1 or o!r areas ( pot5tial flood risk1 z id5tifi$ by ! ,adm9i/rator2 & 7iv7 address curr5t risk & anticipate future risk1 su* z sea-level rise2 7,d7 may use ! am\nts-- 7i7 = projects relat+ to-- 7,i7 /ructural elevation2 7,,ii7 floodpro(+2 7,,iii7 ! relocation or removal ( build+s f ! #ajj-ye> floodpla9 or o!r areas ( flood risk1 includ+ ! acquisition ( prop]ties = su* a purpose2 7,,iv7 environm5tal re/oration activities t directly r$uce flood risk2 7,v7 any eligible activity describ$ 9 subp>agraphs 7,a7 ?r\gh 7,g7 ( section #acff7;c77#c72 or 7,,vi7 o!r activities det]m9$ appropriate by ! ,adm9i/rator2 7ii7 ) respect to a project describ$ 9 clause 7i71 only = exp5ditures directly relat$ to a project describ$ 9 t clause1 includ+ exp5ditures = plann+1 design1 & associat$ pre-con/ruction activities2 & 7iii7 to acquire1 = ! purposes ( p]man5t protection1 l&1 build+s1 or a cons]vation easem5t f a will+ sell] or grantor2 7,e7 may n use ! am\nts-- 7i7 to con/ruct build+s or exp& exi/+ build+s1 unless ! activity is = ! purpose ( flood mitigation2 7ii7 to improve any /ructure1 unless ! recipi5t has obta9$ flood insurance cov]age1 :i* %all be ma9ta9$ = ! useful life ( ! /ructure1 9 an am\nt t is n less ?an ! less] (-- 7,i7 ! eligible project co/s ) respect to ! /ructure2 & 7,,ii7 ! maximum insurable limit = ! /ructure "u ! national flood insurance program cov]age = ! /ructure2 7iii7 to improve a resid5tial prop]ty ) an apprais$ value t is n less ?an #abe p]c5t ( ! limitation on ! maximum orig9al pr9cipal obligation ( a conv5tional mortgage t may be pur*as$ by ! ,f$]al ,national ,mortgage ,association or ! ,f$]al ,home ,loan ,mortgage ,corporation 9 ! area 9 :i* ! prop]ty is locat$1 z e/abli%$ "u section #cjb7;b77#b7 ( ! ,f$]al ,national ,mortgage ,association ,*>t] ,act 7#ab ,u4,s4,c4 #agag7;b77#b77 & section #cje7;a77#b7 ( ! ,f$]al ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #aded7;a77#b772 7iv7 = ! direct b5efit ( a home[n] if ! annual h\sehold adju/$ gross income ( ! home[n] dur+ ! previ\s fiscal ye> 0 n less ?an #bjj1jjj1 z annually adju/$ by ! ,adm9i/rator to reflect *anges 9 ! ,consum] ,price ,index = ,all ,urban ,consum]s1 z publi%$ by ! ,bureau ( ,labor ,/ati/ics ( ! ,dep>tm5t ( ,labor & r\nd$ to ! ne>e/ #be2 or 7v7 to acquire real prop]ty or an int]e/ 9 real prop]ty unless ! prop]ty is pur*as$ f a will+ sell]2 & 7,f7 to ! maximum ext5t practicable1 %all1 9 us+ ^? am\nts1 give priority to projects t assi/ l[-income home[n]s & l[-income geographical areas4 7d7 ,int5d$ use plans 7#a7 ,9 g5]al ,aft] provid+ ! opportunity = public review & comm5t1 ea* p>ticipat+ ,/ate %all annually prep>e a plan t id5tifies1 = ! ye> foll[+ ! date ( issuance ( ! int5d$ use plan1 ! int5d$ uses ( ! am\nts available 9 ! ,/ate loan fund ( ! p>ticipat+ ,/ate4 7#b7 ,consultation dur+ prep>ation ,ea* p>ticipat+ ,/ate1 9 prep>+ an int5d$ use plan1 %all ensure t ! ,/ate ag5cy ) prim>y responsibility = floodpla9 managem5t-- 7,a7 provides ov]sight ) respect to ! prep>ation ( ! int5d$ use plan2 & 7,b7 consults ) any o!r appropriate ,/ate ag5cy1 includ+ ag5cies responsible = coa/al & environm5tal managem5t4 7#c7 ,cont5ts ,a p>ticipat+ ,/ate %all1 9 ea* int5d$ use plan-- 7,a7 include-- 7i7 an explanation ( ! mitigation & resili5cy b5efits ! ,/ate int5ds to a*ieve1 includ+ by-- 7,i7 r$uc+ future damage & loss associat$ ) flood+2 7,,ii7 r$uc+ ! numb] ( sev]e repetitive loss prop]ties & repetitive loss /ructures 9 ! ,/ate2 7,,iii7 decreas+ ! numb] ( flood insurance claims 9 ! ,/ate2 & 7,,iv7 increas+ ! rat+ "u ! ,community ,rat+ ,sy/em = communities 9 ! ,/ate2 7ii7 in=mation ) respect to ! availability (1 & ! application process = receiv+1 f9ancial assi/ance f ! ,/ate loan fund ( ! ,/ate2 7iii7 ! crit]ia & me?ods e/abli%$ = ! di/ribution ( am\nts f ! ,/ate loan fund ( ! ,/ate2 7iv7 ! am\nt ( f9ancial assi/ance t ! ,/ate anticipates provid+ to-- 7,i7 local gov]nm5t projects2 & 7,,ii7 projects = home[n]s1 bus9ess1 or nonpr(it organizations2 7v7 ! expect$ t]ms ( ! assi/ance provid$ "u clause 7iv72 & 7vi7 a description ( ! f9ancial /atus ( ! ,/ate loan fund & ! %ort-t]m & long-t]m goals ( ! ,/ate loan fund2 & 7,b7 provide1 to ! maximum ext5t practicable1 t priority = ! use ( am\nts f ! ,/ate loan fund %all be giv5 to projects t-- 7i7 address sev]e repetitive loss prop]ties & repetitive loss /ructures2 7ii7 assi/ l[-income home[n]s & l[-income geographic areas2 & 7iii7 address flood risk = pre-,,firm build+s4 7#d7 ,publication ,ea* p>ticipat+ ,/ate %all publi% & p]iodically update a li/ ( all projects receiv+ fund+ f ! ,/ate loan fund ( ! ,/ate1 :i* %all include id5tification (-- 7,a7 ! community 9 :i* ! project is locat$2 7,b7 ! type & am\nt ( assi/ance provid$ = ea* project2 & 7,c7 ! expect$ fund+ s*$ule & date ( completion ( ea* project4 7e7 ,fund managem5t ,am\nts 9 a ,/ate loan fund %all-- 7#a7 rema9 available = provid+ f9ancial assi/ance "u ?is section until di/ribut$2 7#b7 if ! am\nts are n requir$ = imm$iate di/ribution or exp5diture1 be inve/$ 9 int]e/-be>+ obligations2 & 7#c7 except z provid$ 9 subsection 7i71 include only-- 7,a7 am\nts receiv$ f capitalization grants made "u ?is section2 7,b7 repaym5ts ( loans made f ! fund2 & 7,c7 int]e/ e>n$ on am\nts 9 ! fund4 7f7 ,mat*+ funds 7#a7 ,full grant ,on or be=e ! date on :i* a p>ticipat+ ,/ate receives a capitalization grant1 ! ,/ate %all deposit into ! ,/ate loan fund ( ! ,/ate1 9 addition to ! am\nt ( ! capitalization grant1 an am\nt f non-,f$]al s\rces t is n less ?an #bj p]c5t ( ! total am\nt ( ! capitalization grant4 7#b7 ,r$uc$ grant ,if1 ) respect to a capitalization grant1 a p>ticipat+ ,/ate deposits 9 ! ,/ate loan fund ( ! ,/ate an am\nt f non-,f$]al s\rces t is less ?an #bj p]c5t ( ! total am\nt ( ! capitalization grant t ! p>ticipat+ ,/ate w\ld o!rwise receive1 ! ,adm9i/rator %all-- 7,a7 r$uce ! am\nt ( ! capitalization grant receiv$ by ! ,/ate to ! am\nt t is #e times ! am\nt s deposit$2 & 7,b7 9 accordance ) subsection 7b77#e71 allocate ! diff]5ce betwe5 ! am\nt t ! p>ticipat+ ,/ate w\ld h receiv$ if ! ,/ate _h compli$ ) p>agraph 7#a7 & ! am\nt ( ! r$uc$ grant t ! p>ticipat+ ,/ate receives "u subp>agraph 7,a74 7g7 ,types ( assi/ance ,unless o!rwise prohibit$ by ,/ate law1 a p>ticipat+ ,/ate may use ! am\nts deposit$ into a ,/ate loan fund "u ?is section only-- 7#a7 to make a loan1 on ! condition t-- 7,a7 ! int]e/ rate = ! loan is n m ?an ! m>ket int]e/ rate2 7,b7 ! recipi5t ( ! loan w beg9 mak+ pr9cipal & int]e/ paym5ts on ! loan n lat] ?an #a ye> aft] ! date on :i* ! project = :i* ! loan 0 made is complet$2 7,c7 ! loan w be fully amortiz$ n lat] ?an #bj ye>s aft] ! date on :i* ! project = :i* ! loan 0 made is complet$1 except t1 9 ! case ( a loan made = a project 9 a l[-income geographic area or to a l[-income home[n]1 ! ,/ate may provide a long] amortization p]iod = ! loan if t long] p]iod-- 7i7 ends on a date t is n lat] ?an #cj ye>s aft] ! date on :i* ! project is complet$2 & 7ii7 is n long] ?an ! expect$ design life ( ! project2 7,d7 ! recipi5t ( ! loan demon/rates1 bas$ on v]ifi$ & docum5t$ in=mation t1 z ( ! date on :i* ! loan is made1 ! recipi5t has a reasonable ability to repay ! loan1 accord+ to ! t]ms ( ! loan1 except t ?is subp>agraph may n be con/ru$ to au?orize any r$uction or limitation 9 ef=ts to comply ) ! requirem5ts ( subsection 7c77#b77;,f72 & 7,e7 paym5ts ( pr9cipal & int]e/ ) respect to ! loan w be deposit$ into ! ,/ate loan fund2 7#b7 to buy or ref9ance ! debt obligation ( a local gov]nm5t at an int]e/ rate t is n m ?an ! m>ket int]e/ rate2 7#c7 to gu>antee1 or pur*ase insurance =1 a local obligation1 ! proce$s ( :i* f9ance a project eligible = assi/ance "u ?is section1 if ! gu>antee or pur*ase1 z applicable1 w\ld-- 7,a7 improve cr$it m>ket access2 or 7,b7 r$uce ! int]e/ rate ) respect to ! obligation2 7#d7 z a s\rce ( rev5ue or z security = ! paym5t ( pr9cipal & int]e/ on rev5ue or g5]al obligation bonds issu$ by ! ,/ate if ! proce$s ( ! sale ( ! bonds w be deposit$ into ! ,/ate loan fund2 or 7#e7 to e>n int]e/ on ^? am\nts4 7h7 ,assi/ance = l[-,income home[n]s & l[-,income geographic areas 7#a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is section1 if a p>ticipat+ ,/ate uses am\nts f a ,/ate loan fund to provide f9ancial assi/ance "u subsection 7c7 9 a l[-income geographic area or to a l[-income home[n]1 ! ,/ate may provide additional subsidization to ! recipi5t ( ! assi/ance1 includ+ =giv5ess ( ! pr9cipal ( a loan4 7#b7 ,limitation ,= ea* fiscal ye>1 ! total am\nt ( additional subsidization provid$ by a p>ticipat+ ,/ate "u p>agraph 7#a7 may n exce$ #cj p]c5t ( ! am\nt ( ! capitalization grant allocat$ to ! ,/ate = t fiscal ye>4 7i7 ,adm9i/ration ( fund 7#a7 ,9 g5]al ,a p>ticipat+ ,/ate may comb9e ! f9ancial adm9i/ration ( a ,/ate loan fund ) ! f9ancial adm9i/ration ( any o!r revolv+ fund e/abli%$ by ! ,/ate if-- 7,a7 comb9+ ! adm9i/ration ( ! funds w\ld-- 7i7 be conv5i5t & avoid adm9i/rative co/s2 & 7ii7 n violate ! law ( ! ,/ate2 & 7,b7 ! ,adm9i/rator det]m9es t-- 7i7 am\nts obta9$ f a grant made "u ?is section1 am\nts obta9$ f ! repaym5t ( a loan made f a ,/ate loan fund1 & int]e/ e>n$ on am\nts 9 a ,/ate loan fund w be-- 7,i7 acc\nt$ = sep>ately f am\nts f o!r revolv+ funds2 & 7,,ii7 us$ only = purposes au?oriz$ "u ?is section2 & 7ii7 aft] consult+ ) ! appropriate ,/ate ag5cies1 ! au?ority to e/abli% assi/ance priorities & c>ry out ov]sight & relat$ activities1 o!r ?an f9ancial adm9i/ration1 ) respect to flood assi/ance rema9s ) ! ,/ate ag5cy ) prim>y responsibility = floodpla9 managem5t4 7#b7 ,adm9i/rative & te*nical co/s 7,a7 ,9 g5]al ,= ea* fiscal ye>1 a p>ticipat+ ,/ate may use ! am\nt describ$ 9 subp>agraph 7,b7 to-- 7i7 pay ! reasonable co/s ( adm9i/ration ( ! programs "u ?is section1 includ+ ! recov]y ( reasonable co/s incurr$ 9 e/abli%+ a ,/ate loan fund2 7ii7 provide appropriate ov]sight ( projects au?oriz$ "u ?is section2 & 7iii7 provide te*nical assi/ance & outrea* to recipi5ts 9 ! ,/ate ( am\nts "u ?is section1 includ+ ) respect to updat+ haz>d mitigation plans & p>ticipat+ 9 ! ,community ,rat+ ,sy/em1 9 an am\nt t is n m ?an #d p]c5t ( ! funds made available to ! ,/ate "u ?is section4 7,b7 ,description ,! am\nt describ$ 9 ?is subp>agraph is an am\nt equal to ! sum (-- 7i7 any fees collect$ by a p>ticipat+ ,/ate to recov] ! co/s describ$ 9 subp>agraph 7,a77i71 reg>dless ( ! s\rce2 & 7ii7 ! greate/ (-- 7,i7 #djj1jjj2 7,,ii7 #j4b p]c5t ( ! value ( ! ,/ate loan fund ( a ,/ate1 z ( ! date on :i* ! valuation is made2 & 7,,iii7 an am\nt equal to #g p]c5t ( all grant aw>ds made to a p>ticipat+ ,/ate = ! ,/ate loan fund ( ! ,/ate "u ?is section = ! fiscal ye>4 7#c7 ,audit & report 7,a7 ,audit requirem5t ,n less frequ5tly ?an bi5nially1 ea* p>ticipat+ ,/ate %all conduct an audit ( ! ,/ate loan fund ( ! ,/ate4 7,b7 ,report ,ea* p>ticipat+ ,/ate %all submit to ! ,adm9i/rator a bi5nial report reg>d+ ! activities ( ! ,/ate "u ?is section dur+ ! p]iod cov]$ by ! report1 includ+-- 7i7 ! result ( any audit conduct$ by ! ,/ate "u subp>agraph 7,a72 & 7ii7 a review ( ! effectiv5ess ( ! ,/ate loan fund ( ! ,/ate ) respect to-- 7,i7 ! int5d$ use plans ( ! ,/ate2 & 7,,ii7 meet+ ! objectives describ$ 9 subsection 7b77#a74 7#d7 ,ov]sight ,9 conduct+ ov]sight ) respect to ,/ate loan funds e/abli%$ "u ?is section1 ! ,adm9i/rator-- 7,a7 %all-- 7i7 p]iodically audit ! funds 9 accordance ) proc$ures e/abli%$ by ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates2 & 7ii7 n less frequ5tly ?an once e #d ye>s1 review ea* ,/ate loan fund to det]m9e ! effectiv5ess ( ! fund 9 r$uc+ flood risk2 & 7,b7 may1 at any "t-- 7i7 make recomm5dations to a p>ticipat+ ,/ate ) respect to ! adm9i/ration ( ! ,/ate loan fund ( ! ,/ate2 or 7ii7 require specific *anges ) respect to a ,/ate loan fund 9 ord] to improve ! effectiv5ess ( ! fund4 7j7 ,liability protections ,! ,f$]al ,em]g5cy ,managem5t ,ag5cy %all n be liable = any claim bas$ on ! ex]cise or p]=mance (1 or ! failure to ex]cise or p]=m1 a discretion>y function or duty by ! ,ag5cy1 or an employee ( ! ,ag5cy1 9 c>ry+ out ?is section4 7k7 ,regulations ,! ,adm9i/rator %all promulgate su* guidance or regulations z may be necess>y to c>ry out ?is section1 includ+ guidance or regulations t-- 7#a7 ensure t ea* p>ticipat+ ,/ate to :i* funds are allocat$ "u ?is section uses ! funds z effici5tly z possible2 7#b7 r$uce1 to ! maximum ext5t practicable1 wa/e1 fraud1 & abuse ) respect to ! implem5tation ( ?is section2 & 7#c7 require any p>ty t receives funds directly or indirectly "u ?is section1 includ+ a p>ticipat+ ,/ate & a recipi5t ( am\nts f a ,/ate loan fund1 to use proc$ures ) respect to ! managem5t ( ! funds t con=m to g5]ally accept$ acc\nt+ /&>ds4 7l7 ,au?orization ( appropriations ,!re are au?oriz$ to be appropriat$ su* sums z may be necess>y to c>ry out ?is section = fiscal ye>s #bjbj ?r\gh #bjbi4 4 7b7 ,consid]ation ( mitigation measures fund$ by /ate loan funds 9 flood insurance premium rates 7#a7 ,e/imat$ rates ,section #acjg7;a77#a77;,a77ii7 ( ! ,national ,flood ,insurance ,act ( #aifh 7#db ,u4,s4,c4 #djad7;a77#a77;,a77ii77 is am5d$ by /rik+ & simil> measures & ins]t+ simil> measures1 & any activities fund$ ?r\gh am\nts f a ,/ate loan fund e/abli%$ "u section #acbf14 7#b7 ,*>geable rates ,section #acjh7;b77#a7 ( ! ,national ,flood ,insurance ,act ( #aifh 7#db ,u4,s4,c4 #djae7;b77#a77 is am5d$ by /rik+ & simil> measures & ins]t+ simil> measures1 & any activities fund$ ?r\gh am\nts f a ,/ate loan fund e/abli%$ "u section #acbf4