US Laws, Codes, Statutes & Cases

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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 42USC4001]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                  CHAPTER 50--NATIONAL FLOOD INSURANCE
 
Sec. 4001. Congressional findings and declaration of purpose


(a) Necessity and reasons for flood insurance program

    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 increasing 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) Participation of Federal Government in flood insurance program 
        carried out by private insurance industry

    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) Unified national program for flood plain management

    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) Authorization of flood insurance program; flexibility in program

    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) Land use adjustments by State and local governments; development of 
        proposed future construction; assistance of lending and credit 
        institutions; relation of Federal assistance to all flood-
        related programs; continuing studies

    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) Mudslides

    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 
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 mudslides that are caused by accumulations of water 
on or under the ground.

(Pub. L. 90-448, title XIII, Sec. 1302, Aug. 1, 1968, 82 Stat. 572; Pub. 
L. 91-152, title IV, Sec. 409(a), Dec. 24, 1969, 83 Stat. 397; Pub. L. 
93-234, title I, Sec. 108(a), Dec. 31, 1973, 87 Stat. 979; Pub. L. 103-
325, title V, Sec. 552(d), Sept. 23, 1994, 108 Stat. 2269.)

                       References in Text

    This chapter, referred to in subsecs. (d) to (f), is title XIII of 
Pub. L. 90-448, Aug. 1, 1968, 82 Stat. 572, as amended, known as the 
National Flood Insurance Act of 1968, which enacted this chapter, 
amended section 2414 of this title, repealed sections 2401 to 2413 and 
2415 to 2421 of this title, and enacted provisions set out as a note 
below. For complete classification of this Act to the Code, see Short 
Title note set out below and Tables.


                               Amendments

    1994--Subsec. (g). Pub. L. 103-325 struck out subsec. (g) which read 
as follows: ``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.''
    1973--Subsec. (g). Pub. L. 93-234 added subsec. (g).
    1969--Subsec. (f). Pub. L. 91-152 added subsec. (f).


                             Effective Date

    Section 1377 of title XIII of Pub. L. 90-448 provided that: ``This 
title [enacting this chapter, amending section 2414 of this title, 
repealing sections 2401 to 2413 and 2415 to 2421 of this title, and 
enacting provisions set out as notes under this section] shall take 
effect one hundred and twenty days following the date of its enactment 
[Aug. 1, 1968], except that the Secretary, on the basis of a finding 
that conditions exist necessitating the prescribing of an additional 
period, may prescribe a later effective date which in no event shall be 
more than one hundred and eighty days following such date of 
enactment.''


                      Short Title of 1994 Amendment

    Section 501 of title V of Pub. L. 103-325 provided that: ``This 
title [enacting sections 4104b to 4104d and 5154a of this title, 
amending this section, sections 4003, 4011, 4012a, 4013, 4015, 4017, 
4022, 4026, 4027, 4029, 4056, 4081, 4101, 4104a, 4106, 4121, and 5154 of 
this title, and sections 1784, 1820, 3305, and 4521 of Title 12, Banks 
and Banking, repealing section 4103 of this title, enacting provisions 
set out as notes under this section and sections 4011, 4013, 4014, 4101 
to 4103, and 4104c of this title, and repealing provisions set out as a 
note under section 4015 of this title] may be cited as the `National 
Flood Insurance Reform Act of 1994'.''


                      Short Title of 1973 Amendment

    Pub. L. 93-234, Sec. 1, Dec. 31, 1973, 87 Stat. 975, provided: 
``That this Act [enacting sections 4002, 4003, 4012a, 4104, 4105 to 
4107, and 4128 of this title, amending this section, sections 4013 to 
4016, 4026, 4054, 4056, 4101, and 4121 of this title, and sections 24 
and 1709-1 of Title 12, Banks and Banking, and repealing section 4021 of 
this title] may be cited as the `Flood Disaster Protection Act of 
1973'.''


                               Short Title

    Section 1301 of title XIII of Pub. L. 90-448 provided that: ``This 
title [enacting this chapter, amending section 2414 of this title, 
repealing sections 2401 to 2413 and 2415 to 2421 of this title, and 
enacting provisions set out as a note under this section] may be cited 
as the `National Flood Insurance Act of 1968'.''


                               Regulations

    Section 583 of title V of Pub. L. 103-325 provided that: ``The 
Director of the Federal Emergency Management Agency and any appropriate 
Federal agency may each issue any regulations necessary to carry out the 
applicable provisions of this title [see Short Title of 1994 Amendment 
note above] and the applicable amendments made by this title.''
    [For transfer of functions, personnel, assets, and liabilities of 
the Federal Emergency Management Agency, including the functions of the 
Director of the Federal Emergency Management Agency relating thereto, to 
the Secretary of Homeland Security, and for treatment of related 
references, see sections 313(1), 551(d), 552(d), and 557 of Title 6, 
Domestic Security, and the Department of Homeland Security 
Reorganization Plan of November 25, 2002, as modified, set out as a note 
under section 542 of Title 6.]


                      Evaluation of Erosion Hazards

    Section 577(a)-(g) of Pub. L. 103-325 provided that:
    ``(a) Report Requirement.--The Director of the Federal Emergency 
Management Agency (in this section referred to as the `Director') shall 
submit a report under this section to the Congress that--
        ``(1) lists all communities that are likely to be identified as 
    having erosion hazard areas;
        ``(2) estimates the amount of flood insurance claims under the 
    national flood insurance program that are attributable to erosion;
        ``(3) states the amount of flood insurance claims under such 
    program that are attributable to claims under section 1306(c) of the 
    National Flood Insurance Act of 1968 [42 U.S.C. 4013(c)];
        ``(4) assesses the full economic impact of erosion on the 
    National Flood Insurance Fund; and
        ``(5) determines the costs and benefits of expenditures 
    necessary from the National Flood Insurance Fund to complete mapping 
    of erosion hazard areas.
    ``(b) Estimate of Flood Claims.--In developing the estimate under 
subsection (a)(2)--
        ``(1) the Director may map a statistically valid and 
    representative number of communities with erosion hazard areas 
    throughout the United States, including coastal, Great Lakes, and, 
    if technologically feasible, riverine areas; and
        ``(2) the Director shall take into consideration the efforts of 
    State and local governments to assess, measure, and reduce erosion 
    hazards.
    ``(c) Economic Impact.--
        ``(1) In general.--The assessment under subsection (a)(4) shall 
    assess the economic impact of--
            ``(A) erosion on communities listed pursuant to subsection 
        (a)(1);
            ``(B) the denial of flood insurance for all structures in 
        communities listed pursuant to subsection (a)(1);
            ``(C) the denial of flood insurance for structures that are 
        newly constructed in whole in communities listed pursuant to 
        subsection (a)(1);
            ``(D) the establishment of (i) actuarial rates for existing 
        structures in communities listed pursuant to subsection (a)(1), 
        and (ii) actuarial rates for such structures in connection with 
        the denial of flood insurance as described in subparagraph (C);
            ``(E) the establishment of actuarial rates for structures 
        newly constructed in whole in erosion hazard areas in 
        communities listed pursuant to subsection (a)(1);
            ``(F) the denial of flood insurance pursuant to existing 
        requirements for coverage under the national flood insurance 
        program;
            ``(G) erosion hazard assessment, measurement, and management 
        activities undertaken by State and local governments, including 
        building restrictions, beach nourishment, construction of sea 
        walls and levees, and other activities that reduce the risk of 
        damage due to erosion; and
            ``(H) the mapping and identifying of communities (or 
        subdivisions thereof) having erosion hazard areas.
        ``(2) Scope.--In assessing the economic impact of the activities 
    under subparagraphs (A) through (H) of paragraph (1), the assessment 
    under subsection (a)(4) shall address such impact on all significant 
    economic factors, including the impact on--
            ``(A) the value of residential and commercial properties in 
        communities with erosion hazards;
            ``(B) community tax revenues due to potential changes in 
        property values or commercial activity;
            ``(C) employment, including the potential loss or gain of 
        existing and new jobs in the community;
            ``(D) existing businesses and future economic development;
            ``(E) the estimated cost of Federal and State disaster 
        assistance to flood victims; and
            ``(F) the mapping and identifying of communities (or 
        subdivisions thereof) having erosion hazard areas.
        ``(3) Preparation.--The assessment required under subsection 
    (a)(4) shall be conducted by a private independent entity selected 
    by the Director. The private entity shall consult with a 
    statistically valid and representative number of communities listed 
    pursuant to subsection (a)(1) in conducting the assessment.
    ``(d) Costs and Benefits of Mapping.--The determination under 
subsection (a)(5) shall--
        ``(1) determine the costs and benefits of mapping erosion hazard 
    areas, based upon the Director's estimate of the actual and 
    prospective amount of flood insurance claims attributable to 
    erosion;
        ``(2) if the Director determines that the savings to the 
    National Flood Insurance Fund will exceed the cost of mapping 
    erosion hazard areas, further assess whether using flood insurance 
    premiums for costs of mapping erosion hazard areas is cost-
    beneficial compared to alternative uses of such amounts, including--
            ``(A) funding the mitigation assistance program under 
        section 1366 of the National Flood Insurance Act of 1968 [42 
        U.S.C. 4104c] (as added by section 553 of this Act);
            ``(B) funding the program under section 1304(b) of the 
        National Flood Insurance Act of 1968 [42 U.S.C. 4011(b)] (as 
        added by section 555(a) of this Act) that provides additional 
        coverage under the national flood insurance program for 
        compliance with land use and control measures; and
            ``(C) reviewing, revising, and updating flood insurance rate 
        maps under subsections (e) and (f) of section 1360 of the 
        National Flood Insurance Act of 1968 [42 U.S.C. 4101(e), (f)] 
        (as added by the amendment made by section 575 of this Act);
        ``(3) if the Director determines under subsection (b)(1) that 
    mapping of riverine areas for erosion hazard areas is 
    technologically feasible, determine the costs and benefits of 
    conducting the mapping of erosion hazards in riverine areas (A) 
    separately from the mapping of other erosion hazard areas, and (B) 
    together with the mapping of other such areas;
        ``(4) if the Director determines that the savings to the 
    National Flood Insurance Fund will exceed the cost of mapping 
    erosion hazard areas in riverine areas, assess whether using flood 
    insurance premiums for costs of mapping erosion hazard areas in 
    riverine areas is cost-beneficial compared to alternative uses of 
    such amounts, including the uses under subparagraphs (A) through (C) 
    of paragraph (2); and
        ``(5) determine the costs and benefits of mapping erosion, other 
    than those directly related to the financial condition of the 
    National Flood Insurance Program, and the costs of not mapping 
    erosion.
    ``(e) Definition.--For purposes of this section, the term `erosion 
hazard area' means, based on erosion rate information and other 
historical data available, an area where erosion or avulsion is likely 
to result in damage to or loss of buildings and infrastructure within a 
60-year period.
    ``(f) Consultation.--In preparing the report under this section, the 
Director shall consult with--
        ``(1) representatives from State coastal zone management 
    programs approved under section 306 of the Coastal Zone Management 
    Act of 1972 [16 U.S.C. 1455];
        ``(2) the Administrator of the National Oceanic and Atmospheric 
    Administration; and
        ``(3) any other persons, officials, or entities that the 
    Director considers appropriate.
    ``(g) Submission.--The Director shall submit the report to the 
Congress as soon as practicable, but not later than 2 years after the 
date of enactment of this Act [Sept. 23, 1994].''


     Relation of Title V of Pub. L. 103-325 to State and Local Laws

    Section 584 of title V of Pub. L. 103-325 provided that: ``This 
title [see Short Title of 1994 Amendment note above] and the amendments 
made by this title may not be construed to preempt, annul, alter, amend, 
or exempt any person from compliance with any law, ordinance, or 
regulation of any State or local government with respect to land use, 
management, or control.''


                          Floodplain Management

    For provisions relating to the reduction of the risk of flood loss, 
the minimization of the impact of floods on human safety, health and 
welfare, and the management of floodplains, see Ex. Ord. No. 11988, May 
24, 1977, 42 F.R. 26951, set out as a note under section 4321 of this 
title.