National Flood Insurance Reform Act of 1994

TABLE OF CONTENTS: Title I: Definitions Title II: Compliance and Increased Participation Title III: Ratings and Incentives for Community Floodplain Management Programs Title IV: Mitigation of Flood Risks Title V: Flood Insurance Task Force Title VI: Miscellaneous Provisions National Flood Insurance Reform Act of 1994 - Title I: Definitions - Defines specified terms under the Flood Disaster Protection Act of 1973 and the National Flood Insurance Act of 1968. Title II: Compliance and Increased Participation - Amends the Flood Disaster Protection Act to require the Secretary of Housing and Urban Development (HUD) to: (1) prohibit any lending institution from making, increasing, extending, or renewing any loan for real estate in a special flood hazards area unless such real estate is covered by flood insurance under the National Flood Insurance Act; and (2) ensure that loans purchased by the Government National Mortgage Association securing real estate in such hazard areas are appropriately covered by flood insurance. Directs the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) to implement procedures to achieve those results. Prohibits any other Federal agency lender from making such a loan for appropriate real estate not covered by such flood insurance. (Sec. 203) Requires residential real estate lenders to establish flood insurance premium escrow accounts. Requires lenders or loan servicers to notify borrowers of special flood hazards and of the need to purchase and maintain flood insurance. Requires such entities, after 60 days' notice, to purchase such insurance on behalf of the borrower and charge the borrower for premium costs. Provides for review of special hazards determinations by the Director of the Federal Emergency Management Agency (FEMA). Imposes civil penalties upon lenders who fail to require flood insurance or to provide appropriate borrower notification of the need for such insurance. Requires the transferor of a loan to notify the transferee of a determination that the real estate that is the basis of such loan is in a special flood hazards area. Provides exceptions. Requires similar notification on loans transferred by the Federal Deposit Insurance Corporation (FDIC), the Resolution Trust Corporation (RTC), and the National Credit Union Administration. Allows lenders to charge to borrowers a reasonable fee for determining the applicability of flood insurance purchase requirements. Requires the Director to develop a standard flood hazard determination form for use in connection with loans for residential properties located in an area of special flood hazards and in which flood insurance is available. (Sec. 210) Amends the Federal Deposit Insurance Act and the Federal Credit Union Act to require regulated lending institutions to conduct examinations and report to the Congress with respect to compliance with the National Flood Insurance Program. Amends the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to require the FEMA Director to annually determine whether enterprises under such Act are in compliance with requirements of the national flood insurance program. Requires a Fannie Mae and Freddie Mac flood insurance procedures compliance report from the Comptroller General. (Sec. 211) Amends the Federal Financial Institutions Examinations Council Act of 1978 to direct the Financial Examinations Council to coordinate with Federal entities for lending regulation and the HUD Secretary to develop uniform lender standards. Title III: Ratings and Incentives for Community Floodplain Management Programs - Amends the National Flood Insurance Act to provide for a community rating system and premium rate incentives for community floodplain management. Provides program funding. Title IV: Mitigation of Flood Risks - Amends the National Flood Insurance Act to terminate: (1) the insured flooded property purchase or loan program; and (2) the schedule for payment of flood insurance for structures on land subject to imminent collapse or subsidence. Repeals findings of such Act regarding erosion and undermining of shorelines by waves or currents. (Sec. 403) Amends the Housing and Urban Development Act of 1968 to require the FEMA Director to provide financial assistance to States, communities, and individuals from the National Flood Mitigation Fund established under this Act, for planning and carrying out flood mitigation activities. Establishes in the Treasury the National Flood Mitigation Fund for providing such assistance. Requires the Director to: (1) establish in the Treasury a National Flood Insurance Fund which shall be separate from any other accounts or funds available to the Director; and (2) assess an insurance premium mitigation surcharge to cover the flood mitigation coverage expenses. (Sec. 408) Requires the Director to conduct a study (and make a report) to determine the feasibility of providing mitigation insurance for increasing repair and reconstruction costs of repeatedly and severely flood damaged insured buildings. Title V: Flood Insurance Task Force - Establishes a two-year interagency Flood Insurance Task Force to: (1) develop standardized flood insurance enforcement procedures; (2) study Federal agency and secondary mortgage market assistance with respect to such enforcement; and (3) study the possibility of existing Federal and corporate flood insurance programs as models for new programs. Title VI: Miscellaneous Provisions - Amends the National Flood Insurance Act to: (1) extend the flood insurance program for one year; (2) limit to ten percent the total annual increase in the rate of flood insurance; (3) increase flood insurance coverage amounts for nonresidential, single family, and multifamily structures; (4) permit flood insurance private sector participation; and (5) require an assessment (and revision if necessary) of flood insurance maps at least every five years. (Sec. 606) Establishes the Technical Mapping Advisory Council to: (1) make recommendations to the Director on how to improve in a cost-effective manner the accuracy, general quality, ease of use, and distribution and dissemination of flood insurance rate maps; (2) recommend to the Director mapping standards and guidelines for such maps; and (3) submit an annual report. (Sec. 607) Requires the Director to submit a report to the Congress evaluating erosion hazards, determining the economic impact of erosion hazards, and assessing the costs and benefits of mapping erosion hazard areas. (Sec. 608) Requires the Director to conduct and report to the Congress on a study: (1) of the economic effects of charging actuarially-based premium rates for the pre-FIRM structures (structures not constructed or substantially improved after the later of December 31, 1974, or the date of the initial rate map published by the Director); and (2) to determine the appropriateness of existing requirements regarding effective dates and time of coverage under flood insurance contracts obtained through the national flood insurance program.