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.)

REFERENCES IN TEXT

For classification of "this Act", referred to in subsecs. (a) and (b), meaning Pub. L. 93-234, the Flood Disaster Protection Act of 1973, see Short Title note set out under section 4002 of this title.

For classification of Disaster Relief Act of 1970, referred to in subsec. (a) (4), principally classified to chapter 58 of this title, see Short Title note set out under section 4401 of this title.

CODIFICATION

Section was enacted as part of Flood Disaster Protection 1973, and not as part of National Flood Insurance Act of 1968, which is to this chapter.

SUBCHAPTER I.-THE NATIONAL FLOOD INSURANCE PROGRAM

§ 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.

(As amended Pub. L. 92-213, § 2(c) (1), Dec. 22, 1971, 85 Stat. 775.)

AMENDMENTS

1971-Subsec. (a). Pub. L. 92-213 added reference to church properties.

§ 4012a. Requirement of flood insurance for Federal approval of financial assistance. (a) Amount and term of coverage.

After the expiration of sixty days following December 31, 1973, 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 Secretary as an area having special flood hazards and in which the sale of flood insurance has been made available under this chapter, unless the building or mobile home and any personal property to which such financial assistance relates is, during the anticipated economic or useful life of the project, covered by flood insurance in an amount at least equal to its development or project cost (less estimated land cost) or to the maximum limit of coverage made available with respect to the particular type of property under this chapter, whichever is less: Provided, That if the financial assistance provided is in the form of a loan or an insurance or guaranty of a loan, 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 loan.

(b) Federal regulations for flood insurance requirement; amount of coverage.

Each Federal instrumentality responsible for the supervision, approval, regulation, or insuring of banks, savings and loan associations, or similar institutions shall by regulation direct such institutions not to make, increase, extend, or renew after the expiration of sixty days following December 31, 1973, 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 Secretary as an area having special flood hazards and in which flood insurance has been made available under this chapter, 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 an amount at least equal to the outstanding principal balance of the loan or to the maximum limit of coverage made available with respect to the particular type of property under the chapter, whichever is less.

(c) State-owned property; exemption; list of States. Notwithstanding the other provisions of this section, flood insurance shall not be required on any State-owned property that is covered under an adequate State policy of self-insurance satisfactory to the Secretary. The Secretary shall publish and periodically revise the lost of States to which this subsection applies. (Pub. L. 93-234, title I, § 102, Dec. 31, 1973, 87 Stat. 978.)

CODIFICATION

Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968, which is classified to this chapter.

§ 4013. Nature and limitation of insurance coverage; regulations.

(b) In addition to any other terms and conditions under subsection (a) of this section, such regulations shall provide that—

(1) any flood insurance coverage based on chargeable premium rates under section 4015 of

this title which are less than the estimated premium rates under section 4014 (a) (1) of this title shall not exceed

(A) in the case of residential properties—

(i) $35,000 aggregate liability for any single-family dwelling, and $100,000 for any residential structure containing more than one dwelling unit,

(ii) $10,000 aggregate liability per dwelling unit for any contents related to such unit, and (iii) in the States of Alaska and Hawaii, and in the Virgin Islands and Guam, the limits provided in clause (i) of this sentence shall be: $50,000 aggregate liability for any singlefamily dwelling, and $150,000 for any residential structure containing more than one dwelling unit;

(B) in the case of business properties which are owned or leased and operated by small business concerns, an aggregate liability with respect to any single structure, including any contents thereof related to premises of small business occupants (as that term is defined by the Secretary), which shall be equal to (i) $100,000 plus (ii) $100,000 multiplied by the number of such occupants and shall be allocated among such occupants (or among the occupant or occupants and the owner) under regulations prescribed by the Secretary; except that the aggregate liability for the structure itself may in no case exceed $100,000; and

(C) in the case of church properties and any other properties which may become eligible for flood insurance under section 4012 of this title(i) $100,000 aggregate liability for any single structure, and

(ii) $100,000 aggregate liability per unit for any contents related to such unit; and

1973-Subsec. (b)(1)(A). Pub. L. 93-234, § 101(a), in increasing limits of coverage, deleted following introductory text "residential properties" the clause "which are designed for the occupancy of from one to four families"; substituted provisions in cl. (i) "$35,000 aggregate liability for any single-family dwelling, and $100,000 for any residential structure containing more than one dwelling unit" for "$17,500 aggregate liability for any dwelling unit, and $30,000 for any single dwelling structure containing more than one dwelling unit"; increased cl. (ii) limits to $10,000 from $5,000 and added cl. (iii).

Subsec. (b) (1) (B). Pub. L. 93-234, § 101 (b), substituted "$100,000" for "$30,000" in cl. (1), for "$5,000" in cl. (ii), and for "$30,000” in exception provision.

Subsec. (b) (1) (C). Pub. L. 93-234, § 101 (c), increased cl. (1) limits to $100,000 from $30,000 and substituted cl. (ii) "$100,000 aggregate liability per unit for any contents related to such unit" for "$5,000 aggregate liability per dwelling unit for any contents related to such unit in the case of residential properties, or per occupant (as that term is defined by the Secretary) for any contents related to the premises occupied in the case of any other properties."

1971-Subsec. (b)(1)(C). Pub. L. 92-213 inserted "church properties, and" preceding "any other properties which may become".

(d) Parishes of Louisiana; premium rates. Notwithstanding any other provision of law, any structure existing on December 31, 1973, and located within Avoyelles, Evangeline, Rapides, or Saint Landry Parish in the State of Louisiana, which the Secretary determines is subject to additional flood hazards as a result of the construction or operation of the Atchafalaya Basin Levee System, shall be eligible for flood insurance under this chapter (if and to the extent it is eligible for such insurance under the other provisions of this chapter) at premium rates that shall not exceed those which would be applicable if such additional hazards did not exist. (As amended Pub. L. 93-234, title I, § 109, Dec. 31, 1973, 87 Stat. 980.)

AMENDMENTS

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

§ 4015. Chargeable premium rates.

(c) Rate with respect to property the construction or substantial improvement of which has been started after December 31, 1974, or effective date of initial rate map published for area in which property is located, whichever is later.

Notwithstanding any other provision of this chapter, the chargeable rate with respect to any property, the construction or substantial improvements of which the Secretary determines has been started after December 31, 1974, or the effective date of the initial rate map published by the Secretary under paragraph (2) of section 4101 of this title for the area in which such property is located, whichever is later, shall not be less than the applicable estimated risk premium rate for such area (or subdivision thereof) under section 4014 (a) (1) of this title.

**

(As amended Pub. L. 93-234, title I, § 103, Dec. 31, 1973, 87 Stat. 978.)

AMENDMENTS

1973-Subsec. (c). Pub. L. 93-234 substituted "started after December 31, 1974, or the effective date of the initial rate map published by the Secretary under paragraph (2) of section 4101 of this title for the area in which such property is located, whichever is later" for "started after the identification of the area in which such property is located has been published under paragraph (1) of section 4101 of this title".

§ 4016. Financing provisions; issuance of notes or other obligations; limitation; report to Congressional Committees; deposits in Fund.

(a) All authority which was vested in the Housing and Home Finance Administrator by virtue of section 2414(e) of this title (pertaining to the issue of notes or other obligations to the Secretary of the Treasury), as amended by subsections (a) and (b) of section 1303 of this Act, shall be available to the Secretary for the purpose of carrying out the flood insurance program under this chapter; except that the total amount of notes and obligations which may be issued by the Secretary pursuant to such authority (1) without the approval of the President, may not exceed $500,000,000, and (2) with the approval of the President, may not exceed $1,000,000,000. The Secretary shall report to the Committee on Banking and Currency of the House of Representatives and

the Committee on Banking, Housing and Urban Affairs of the Senate at any time when he requests the approval of the President in accordance with the preceding sentence.

(As amended Pub. L. 93-234, title I, § 104, Dec. 31, 1973, 87 Stat. 979.)

REFERENCES IN TEXT

Section 1303 of this act, referred to in subsec. (a), means section 1303 of Pub L. 90-448, which amended section 2414(e) of this title.

AMENDMENTS

1973-Subsec. (a). Pub. L. 93-234 substituted provisions respecting issuance of notes and obligation for $500,000,000 without approval of President and for $1,000,000,000 with approval of President, for former provision prescribing a $250,000,000 limitation, deleted provision rescinding authority of Secretary to issue notes and obligations under section 2414(e) of this title, and provided for report to Congressional Committees when the approval of the President is requested.

TRANSFER OF FUNCTIONS

All of the functions, powers, and duties of the Housing and Home Finance Agency, and its head and other officers and offices of said agency were transferred to and vested in the Secretary of Housing and Urban Development pursuant to Pub. L. 89-174, § 5, Sept. 9, 1965, 79 Stat. 669, classified to section 3534 of this title. Section 9(c) of Pub. L. 89-174, set out as a note under section 3531 of this title, provided in part that with respect to any function, power, or duty transferred by or under Pub. L. 89-174 and exercised hereafter, reference in another Federal law to the Housing and Home Finance Agency or any other officer, office, or agency therein shall be deemed to mean the Secretary of Housing and Urban Development, and that the positions and agencies heretofore established by law in connection with the functions, powers, and duties transferred under section 5(a) of Pub. L. 89-174 shall lapse.

§ 4021. Repealed. Pub. L. 93-23, title II, § 203, Dec. 31, 1973, 87 Stat. 982.

Section, Pub. L. 90-448, title XIII, § 1314, Aug. 1, 1968, 82 Stat. 579 denied Federal disaster assistance after Dec. 31, 1973, to persons who for a period of a year or more could have purchased flood insurance but did not do so, and defined "Federal disaster assistance" and "financial assistance".

Loss, DESTRUCTION, OR DAMAGE OCCURRING ON OR BEFORE DECEMBER 31, 1973

Pub. L. 92-213, § 2(b), Dec. 22, 1971, 85 Stat. 775, provided that: "The provisions of section 1314(a) (2) of such Act [subsec. (a) (2) of this section] shall not apply with respect to any loss, destruction, or damage of real or personal property that occurs on or before December 31, 1973."

§ 4026. Expiration of program.

No new contract for flood insurance under this chapter shall be entered into after June 30, 1977. (As amended Pub. L. 93-4, Feb. 2, 1973, 87 Stat. 4, Pub. L. 93-38, June 5, 1973, 87 Stat. 73; Pub. L. 93234, title I, § 105, Dec. 31, 1973, 87 Stat. 979.)

AMENDMENTS

1973-Pub. L. 93-234 substituted expiration of program provisions for $6,000,000,000 limitation on flood insurance coverage outstanding.

Pub. L. 93-38 increased limitation on face amount of outstanding flood insurance coverage from $4,000,000,000 to $6,000,000,000.

Pub. L. 93-4 increased limitation on face amount of outstanding flood insurance coverage from $2,500,000,000 to $4,000,000,000.

SUBCHAPTER II.-ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE PROGRAM

§ 4054. Premium equalization payments; basis; aggregate amount; establishment of designated periods.

(b) Designated periods under this section and the methods for determining the sum of premiums paid or payable during such periods shall be established by the Secretary. (As amended Pub. L. 93–234, title I, § 111, Dec. 31, 1973, 87 Stat. 981.)

AMENDMENTS

1973 Subsec. (b). Pub. L. 93-234 redesignated former subsec. (c) as (b), and struck out former subsec. (b) prescribing formula for sharing losses between Government and industry and permit necessary flexibility in loss sharing to take into account longer-term loss experience trends and to compensate for lack of precision in actuarial computations.

Subsec. (c). Pub. L. 93-234 redesignated former subsec. (c) as (b).

§ 4056. Emergency implementation of flood insurance program; applicability of other provisions of law. (a) Notwithstanding any other provisions of this chapter, for the purpose of providing flood insurance coverage at the earliest possible time, the Secretary shall carry out the flood insurance program authorized under subchapter I of this chapter during the period ending December 31, 1975, in accordance with the provisions of this part and the other provisions of this chapter insofar as they relate to this part but subject to the modifications made by or under subsection (b) of this section.

(As amended Pub. L. 92-213, § 2(a), Dec. 22, 1971, 85 Stat. 775; Pub. L. 93-234, title I, § 106, Dec. 31, 1973, 87 Stat. 979.)

AMENDMENTS

1973-Subsec. (a). Pub. L. 93-234 substituted "December 31, 1975" for "December 31, 1973".

1971-Subsec. (a). Pub. L. 92-213 substituted "Decembe 31, 1973" for "December 31, 1971".

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

§ 4101. Identification of flood-prone areas.

(a) Publication of information; establishment of floodrisk zones; estimates of flood-caused loss. (a) The Secretary is authorized to consult with, receive information from, and enter into any agreements or other arrangements with the Secretaries of the Army, the Interior, Agriculture, and Commerce, the Tennessee Valley Authority, and the heads of other Federal departments or agencies, on a reimbursement basis, or with the head of any State or local agency, or enter into contracts with any persons or private firms, in order that he may—

(1) identify and publish information with respect to all flood plain areas, including coastal areas located in the United States, which has special floor hazards, within five years following August 1, 1968, and

(2) establish flood-risk zones in all such areas, and make estimates with respect to the rates of probable flood-caused loss for the various flood

risk zones for each of these areas, within fifteen years following such date.

(b) Accelerated identification of flood-risk zones; authority of Secretary: grants, technical assistance, transactions, and payments.

The Secretary is directed to accelerate the identification of risk zones within flood-prone and mudslide-prone areas, as provided by subsection (a) (2) of this section, in order to make known the degree of hazard within each such zone at the earliest possible date. To accomplish this objective, the Secretary is authorized, without regard to section 529 of Title 31 and section 5 of Title 41, to make grants, provide technical assistance, and enter into contracts, cooperative agreements, or other transactions, on such terms as he may deem appropriate, or consent to modifications thereof, and to make advance or progress payments in connection therewith. (c) Priority in allocation of manpower and other available resources for identification and mapping of flood hazard areas and flood-risk zones. The Secretary of Defense (through the Army Corps of Engineers), the Secretary of the Interior (through the United States Geological Survey), the Secretary of Agriculture (through the Soil Conservation Service), the Secretary of Commerce (through the National Oceanic and Atmospheric Administration), the head of the Tennessee Valley Authority, and the heads of all other Federal agencies engaged in the identification or delineation of flood-risk zones within the several States shall, in consultation with the Secretary, give the highest practicable priority in the allocation of available manpower and other available resources to the identification and mapping of flood hazard areas and flood-risk zones, in order to assist the Secretary to meet the deadline established by this section. (As amended Pub. L. 93-234, title II, § 204, Dec. 31, 1973, 87 Stat. 983.)

AMENDMENTS

1973-Pub. L. 93-234 designated existing provisions as subsec. (a) and added subsecs. (b) and (c).

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 4105 of this title.

§ 4102. Criteria for land management and use.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4104 of this title. § 4104. Flood elevation determinations.

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

In establishing projected flood elevations for land use purposes with respect to any community pursuant to section 4102 of this title, the Secretary shall first propose such determinations by publication for comment in the Federal Register, by direct notification to the chief executive officer of the community, and by publication in a prominent local newspaper. (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.

The Secretary shall publish notification of flood elevation determinations in a prominent local newspaper at least twice during the ten-day period following notification to the local government. During the ninety-day period following the second publica

tion, any owner or lessee of real property within the community who believes his property rights to be adversely affected by the Secretary's proposed determination may appeal such determination to the local government. The sole basis for such appeal shall be the possession of knowledge or information indicating that the elevations being proposed by the Secretary with respect to an identified area having special flood hazards are scientifically or technically incorrect, and the sole relief which shall be granted under the authority of this section in the event that such appeal is sustained in accordance with subsection (e) or (f) of this section is a modification of the Secretary's proposed determination accordingly. (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.

Appeals by private persons shall be made to the chief executive officer of the community, or to such agency as he shall publicly designate, and shall set forth the data that tend to negate or contradict the Secretary's finding in such form as the chief executive officer may specify. The community shall review and consolidate all such appeals and issue a written opinion stating whether the evidence presented is sufficient to justify an appeal on behalf of such persons by the community in its own name. Whether or not the community decides to appeal the Secretary's determination, copies of individual appeals shall be sent to the Secretary as they are received by the community, and the community's appeal or a copy of its decision not to appeal shall be filed with the Secretary not later than ninety days after the date of the second newspaper publication of the Secretary's notification.

(d) Administrative review of appeals by private persons; modification of proposed determinations; decision of Secretary: form and distribution. In the event the Secretary does not receive an appeal from the community within the ninety days provided, he shall consolidate and review on their own merits, in accordance with the procedures set forth in subsection (e) of this section, the appeals filed within the community by private persons and shall make such modifications of his proposed determinations as may be appropriate, taking into account the written opinion, if any, issued by the community in not supporting such appeals. The Secretary's decision shall be in written form, and copies thereof shall be sent both to the chief executive officer of the community and to each individual appellant.

(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. Upon appeal by any community, as provided by this section, the Secretary shall review and take fully into account any technical or scientific data submitted by the community that tend to negate or contradict the information upon which his proposed

20-347 0-74-vol. 2-54

determination is based. The Secretary shall resolve such appeal by consultation with officials of the local government involved, by administrative hearing, or by submission of the conflicting data to an independent scientific body or appropriate Federal agency for advice. Until the conflict in data is resolved, and the Secretary makes a final determination on the basis of his findings in the Federal Register, and so notifies the governing body of the community, flood insurance previously available within the community shall continue to be available, and no person shall be denied the right to purchase such insurance at chargeable rates. The Secretary shall make his determination within a reasonable time. The community shall be given a reasonable time after the Secretary's final determination in which to adopt local land use and control measures consistent with the Secretary's determination. The reports and other information used by the Secretary in making his final determination shall be made available for public inspection and shall be admissible in a court of law in the event the community seeks judicial review as provided by this section.

(f) Judicial review of final administrative determina

tions; venue; time for appeal; scope of review; good cause for stay of final determinations. Any appellant aggrieved by any final determination of the Secretary upon administrative appeal, as provided by this section, may appeal such determination to the United States district court for the district within which the community is located not more than sixty days after receipt of notice of such determination. The scope of review by the court shall be as provided by chapter 7 of Title 5. During the pendency of any such litigation, all final determinations of the Secretary shall be effective for the purposes of this chapter unless stayed by the court for good cause shown. (Pub. L. 90-448, title XIII, § 1363, as added Pub. L. 93-234, title I, § 110, Dec. 31, 1973, 87 Stat. 980.)

§ 4105. Disaster mitigation requirements; notification to flood-prone areas.

(a) Initial notification.

Not later than six months following December 31, 1973, the Secretary shall publish information in accordance with section 4101 (1) of this title, and shall notify the chief executive officer of each known floodprone community not already participating in the national flood insurance program of its tentative identification as a community containing one or more areas having special flood hazards.

(b) Alternative actions of tentatively identified communities; public hearing; opportunity for submission of evidence; finality of administrative determination of existence or extent of flood hazard area.

After such notification, each tentatively identified community shall either (1) promptly make proper application to participate in the national flood insurance program or (2) within six months submit technical data sufficient to establish to the satisfaction of the Secretary that the community either is not seriously flood prone or that such flood hazards as may have existed have been corrected by floodworks or other flood control methods. The Secretary may, in his discretion, grant a public hearing to any

community with respect to which conflicting data exist as to the nature and extent of a flood hazard. If the Secretary decides not to hold a hearing, the community shall be given an opportunity to submit written and documentary evidence. Whether or not such hearing is granted, the Secretary's final determination as to the existence or extent of a flood hazard area in a particular community shall be deemed conclusive for the purposes of this Act if supported by substantial evidence in the record considered as a whole.

(c) Subsequent notification to additional communities known to be flood-prone areas.

As information becomes available to the Secretary concerning the existence of flood hazards in communities not known to be flood prone at the time of the initial notification provided for by subsection (a) of this section he shall provide similar notifications to the chief executive officers of such additional communities, which shall then be subject to the requirements of subsection (b) of this section.

(d) Provisions of section 4106 applicable to flood-prone communities disqualified for flood insurance program.

Formally identified flood-prone communities that do not qualify for the national flood insurance program within one year after such notification or by the date specified in section 4106 of this title, whichever is later, shall thereafter be subject to the provisions of that section relating to flood-prone communities which are not participating in the program. (Pub. L. 93-234, title II, § 201, Dec. 31, 1973, 87 Stat. 982.)

REFERENCES IN TEXT

For classification of "this Act", referred to in subsec. (b), meaning Pub. L. 93-234, the Flood Disaster Protection Act of 1973, see Short Title note set out under section 4002 of this title.

CODIFICATION

Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968, which is classified to this chapter.

§ 4106. Same; nonparticipation in flood insurance program.

(a) Prohibition of Federal approval of financial assist

ance.

No Federal officer or agency shall approve any financial assistance for acquisition or construction purposes on and after July 1, 1975, for use in any area that has been identified by the Secretary as an area having special flood hazards unless the community in which such area is situated is then participating in the national flood insurance program. (b) Federal regulations against loans by financial institutions.

Each Federal instrumentality responsible for the supervision, approval, regulation, or insuring of banks, savings and loan associations, or similar institutions shall by regulation prohibit such institutions on and after July 1, 1975, from making, increasing, extending, or renewing 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 Secretary as an area having special flood hazards, unless the community in which such area is situated is then participating in the national flood insurance