WIXLIB

111(3)(B) in a fiscal year may distribute the funds2directly in the form of grants or technical as-3sistance for a purpose described in subsection4(c)(2), without regard to whether the State has5established a State loan fund.6‘‘(B) STATEparticipating7State that exercises the authority under sub-8paragraph (A) in a fiscal year shall provide9matching funds from non-Federal sources in an10amount that is equal to 25 percent of the11amount that the State receives under paragraph12(3)(B) in that fiscal year for purposes described13in subparagraph (A).14‘‘(5) ALLOCATIONOFREMAININGAfter allocating amounts made available to carry out16this section for a fiscal year in accordance with17paragraph (3), the Administrator shall allocate any18remaining amounts made available for that fiscal19year to participating States, using the procedures20described in clauses (i) through (iii) of paragraph21(3)(B).‘‘(6) RESERVATIONOF FUNDS.—TheAdminis-23trator shall reserve not more than 1.5 percent of the24amount made available to carry out this section in25a fiscal year— S 2192 ISVerDate Sep 11 2014FUNDS.—1522pamtmann on DSKBFK8HB2PROD with BILLSMATCHING.—A03:07 Jul 26, 2019Jkt 089200PO 00000Frm 00011Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

121‘‘(A) for administrative costs incurred in2carrying out this section;3‘‘(B) to provide technical assistance to re-4cipients of grants under this section; and5‘‘(C) to enter into grant agreements with6tribal governments and insular areas, with the7grant funds to be distributed—8‘‘(i) according to criteria established9by the Administrator; and10‘‘(ii) for a purpose described in sub-11section (c)(2).12‘‘(c) USE OF FUNDS.—pamtmann on DSKBFK8HB2PROD with BILLS13‘‘(1) INGENERAL.—Amountsdeposited in a14State loan fund, including repayments of loans made15from the fund and interest earned on the amounts16in the fund, shall be used—17‘‘(A) consistent with paragraph (2) and18subsection (g), to provide financial assistance19for—20‘‘(i) homeowners, businesses, and non-21profit organizations that are eligible to22participate in the national flood insurance23program; and S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00012Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

131‘‘(ii) any local government that par-2ticipates in the national flood insurance3program;4‘‘(B) as a source of revenue and security5for leveraged loans, the proceeds of which shall6be deposited in the State loan fund; or7‘‘(C) for the sale of bonds as security for8payment of the principal and interest on rev-9enue or general obligation bonds issued by the10participating State to provide matching funds11under subsection (f), if the proceeds from the12sale of the bonds are deposited in the State13loan fund.14‘‘(2) PURPOSES.—A recipient of financial as-15sistance provided through amounts from a State16loan fund—pamtmann on DSKBFK8HB2PROD with BILLS17‘‘(A) shall use the amounts to reduce—18‘‘(i) flood risk; or19‘‘(ii) potential claims for losses cov-20ered under the national flood insurance21program;22‘‘(B) shall use the amounts in a cost-effec-23tive manner under requirements established by24the State, which may require an applicant for25financial assistance to submit any information S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00013Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

141that the State considers relevant or necessary2before the date on which the applicant receives3the assistance;4‘‘(C) shall use the amounts for projects5that—6‘‘(i) meet design and construction7standards established by the hat—11‘‘(I) participate in the national12flood insurance program; and13‘‘(II) have developed a State or14community hazard mitigation plan15that has been approved by the Admin-16istrator under section 1366;17‘‘(iii) address—18‘‘(I) a repetitive loss structure or19pamtmann on DSKBFK8HB2PROD with BILLSarea severe repetitive loss property; or20‘‘(II) flood risk in the 500-year21floodplain, areas of residual flood risk,22or other areas of potential flood risk,23as identified by the Administrator;24and S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00014Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

151‘‘(iv) address current risk and antici-2pate future risk, such as sea-level rise;3‘‘(D) may use the amounts—4‘‘(i) for projects relating to—5‘‘(I) structural elevation;6‘‘(II) floodproofing;7‘‘(III) the relocation or removal8of buildings from the 100-year flood-9plain or other areas of flood risk, in-10cluding the acquisition of properties11for such a purpose;12‘‘(IV) environmental restoration13activities that directly reduce flood14risk;15‘‘(V) any eligible activity de-16scribed in subparagraphs (A) through17(G) of section 1366(c)(3); orpamtmann on DSKBFK8HB2PROD with BILLS18‘‘(VI) other activities determined19appropriate by the Administrator;20‘‘(ii) with respect to a project de-21scribed in clause (i), only for expenditures22directly related to a project described in23that clause, including expenditures for24planning, design, and associated pre-con-25struction activities; and S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00015Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

161‘‘(iii) to acquire, for the purposes of2permanent protection, land, buildings, or a3conservation easement from a willing seller4or grantor;5‘‘(E) may not use the amounts—6‘‘(i) to construct buildings or expand7existing buildings, unless the activity is for8the purpose of flood mitigation;9‘‘(ii) to improve any structure, unless10the recipient has obtained flood insurance11coverage, which shall be maintained for the12useful life of the structure, in an amount13that is not less than the lesser of—14‘‘(I) the eligible project costs withpamtmann on DSKBFK8HB2PROD with BILLS15respect to the structure; and16‘‘(II) the maximum insurable17limit for the structure under the na-18tional flood insurance program cov-19erage for the structure;20‘‘(iii) to improve a residential property21with an appraised value that is not less22than 125 percent of the limitation on the23maximum original principal obligation of a24conventional mortgage that may be pur-25chased by the Federal National Mortgage S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00016Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

pamtmann on DSKBFK8HB2PROD with BILLS171Association or the Federal Home Loan2Mortgage Corporation in the area in which3the property is located, as established4under section 302(b)(2) of the Federal Na-5tional Mortgage Association Charter Act6(127305(a)(2) of the Federal Home Loan8Mortgage Corporation Act (12 ) for the direct benefit of a home-11owner if the annual household adjusted12gross income of the homeowner during the13previous fiscal year was not less than14 200,000, as annually adjusted by the Ad-15ministrator to reflect changes in the Con-16sumer Price Index for All Urban Con-17sumers, as published by the Bureau of18Labor Statistics of the Department of19Labor and rounded to the nearest 25; or20‘‘(v) to acquire real property or an in-21terest in real property unless the property22is purchased from a willing seller; and23‘‘(F) to the maximum extent practicable,24shall, in using those amounts, give priority to S 2192 ISVerDate Sep 11 2014section03:07 Jul 26, 2019Jkt 089200PO 00000Frm 00017Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

181projects that assist low-income homeowners and2low-income geographical areas.3‘‘(d) INTENDED USE PLANS.—4‘‘(1) INproviding the oppor-5tunity for public review and comment, each partici-6pating State shall annually prepare a plan that iden-7tifies, for the year following the date of issuance of8the intended use plan, the intended uses of the9amounts available in the State loan fund of the par-10ticipating State.11‘‘(2) CONSULTATIONDURING PREPARATION.—12Each participating State, in preparing an intended13use plan, shall ensure that the State agency with14primary responsibility for floodplain management—15‘‘(A) provides oversight with respect to the16preparation of the intended use plan; and17‘‘(B) consults with any other appropriate18State agency, including agencies responsible for19coastal and environmental management.20‘‘(3) CONTENTS.—A participating State shall,21in each intended use plan—22pamtmann on DSKBFK8HB2PROD with BILLSGENERAL.—After‘‘(A) include—23‘‘(i) an explanation of the mitigation24and resiliency benefits the State intends to25achieve, including by— S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00018Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

191‘‘(I) reducing future damage and2loss associated with flooding;3‘‘(II) reducing the number of se-4vere repetitive loss properties and re-5petitive loss structures in the State;6‘‘(III) decreasing the number of7flood insurance claims in the State;8and9‘‘(IV) increasing the rating under10the Community Rating System for11communities in the State;12‘‘(ii) information with respect to the13availability of, and the application process14for receiving, financial assistance from the15State loan fund of the State;16‘‘(iii) the criteria and methods estab-17lished for the distribution of amounts from18the State loan fund of the State;19‘‘(iv) the amount of financial assist-20ance that the State anticipates providing21to—22‘‘(I) local government projects;pamtmann on DSKBFK8HB2PROD with BILLS23and24‘‘(II) projects for homeowners,25business, or nonprofit organizations; S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00019Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

201‘‘(v) the expected terms of the assist-2ance provided under clause (iv); and3‘‘(vi) a description of the financial sta-4tus of the State loan fund and the short-5term and long-term goals of the State loan6fund; and7‘‘(B) provide, to the maximum extent prac-8ticable, that priority for the use of amounts9from the State loan fund shall be given to10projects that—11‘‘(i) address severe repetitive loss12properties and repetitive loss structures;13‘‘(ii) assist low-income homeowners14and low-income geographic areas; and15‘‘(iii) address flood risk for pre-FIRM16buildings.17‘‘(4) PUBLICATION.—Each participating State18shall publish and periodically update a list of all19projects receiving funding from the State loan fund20of the State, which shall include identification of—21‘‘(A) the community in which the project is22located;pamtmann on DSKBFK8HB2PROD with BILLS23‘‘(B) the type and amount of assistance24provided for each project; and S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00020Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

211‘‘(C) the expected funding schedule and23date of completion of each project.‘‘(e) FUND MANAGEMENT.—Amounts in a State loan4 fund shall—56‘‘(1) remain available for providing financial assistance under this section until distributed;7‘‘(2) if the amounts are not required for imme-8diate distribution or expenditure, be invested in in-9terest-bearing obligations; and1011‘‘(3) except as provided in subsection (i), include only—12‘‘(A) amounts received from capitalization13grants made under this section;14‘‘(B) repayments of loans made from the15fund; and16‘‘(C) interest earned on amounts in the1718fund.‘‘(f) MATCHING FUNDS.—pamtmann on DSKBFK8HB2PROD with BILLS19‘‘(1) FULLGRANT.—Onor before the date on20which a participating State receives a capitalization21grant, the State shall deposit into the State loan22fund of the State, in addition to the amount of the23capitalization grant, an amount from non-Federal24sources that is not less than 20 percent of the total25amount of the capitalization grant. S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00021Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

221‘‘(2) REDUCEDGRANT.—If,with respect to a2capitalization grant, a participating State deposits in3the State loan fund of the State an amount from4non-Federal sources that is less than 20 percent of5the total amount of the capitalization grant that the6participating State would otherwise receive, the Ad-7ministrator shall—8‘‘(A) reduce the amount of the capitaliza-9tion grant received by the State to the amount10that is 5 times the amount so deposited; and11‘‘(B) in accordance with subsection (b)(5),12allocate the difference between the amount that13the participating State would have received if14the State had complied with paragraph (1) and15the amount of the reduced grant that the par-16ticipating State receives under subparagraph17(A).18‘‘(g) TYPESOFASSISTANCE.—Unless otherwise pro-19 hibited by State law, a participating State may use the20 amounts deposited into a State loan fund under this sec21 tion only—22‘‘(1) to make a loan, on the condition that—pamtmann on DSKBFK8HB2PROD with BILLS23‘‘(A) the interest rate for the loan is not24more than the market interest rate; S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00022Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

231‘‘(B) the recipient of the loan will begin2making principal and interest payments on the3loan not later than 1 year after the date on4which the project for which the loan was made5is completed;6‘‘(C) the loan will be fully amortized not7later than 20 years after the date on which the8project for which the loan was made is com-9pleted, except that, in the case of a loan made10for a project in a low-income geographic area or11to a low-income homeowner, the State may pro-12vide a longer amortization period for the loan if13that longer period—14‘‘(i) ends on a date that is not later15than 30 years after the date on which the16project is completed; andpamtmann on DSKBFK8HB2PROD with BILLS17‘‘(ii) is not longer than the expected18design life of the project;19‘‘(D) the recipient of the loan dem-20onstrates, based on verified and documented in-21formation that, as of the date on which the loan22is made, the recipient has a reasonable ability23to repay the loan, according to the terms of the24loan, except that this subparagraph may not be25construed to authorize any reduction or limita- S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00023Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

241tion in efforts to comply with the requirements2of subsection (c)(2)(F); and3‘‘(E) payments of principal and interest4with respect to the loan will be deposited into5the State loan fund;6‘‘(2) to buy or refinance the debt obligation of7a local government at an interest rate that is not8more than the market interest rate;9‘‘(3) to guarantee, or purchase insurance for, a10local obligation, the proceeds of which finance a11project eligible for assistance under this section, if12the guarantee or purchase, as applicable, would—13‘‘(A) improve credit market access; or14‘‘(B) reduce the interest rate with respect15to the obligation;16‘‘(4) as a source of revenue or as security for17the payment of principal and interest on revenue or18general obligation bonds issued by the State if the19proceeds of the sale of the bonds will be deposited20into the State loan fund; or21‘‘(5) to earn interest on those amounts.22pamtmann on DSKBFK8HB2PROD with BILLS23‘‘(h) ASSISTANCEANDLOW-INCOME HOMEOWNERSLOW-INCOME GEOGRAPHIC AREAS.—2425FOR‘‘(1) INGENERAL.—Notwithstandingprovision of this section, if a participating State uses S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019any otherJkt 089200PO 00000Frm 00024Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

251amounts from a State loan fund to provide financial2assistance under subsection (c) in a low-income geo-3graphic area or to a low-income homeowner, the4State may provide additional subsidization to the re-5cipient of the assistance, including forgiveness of the6principal of a loan.7‘‘(2) LIMITATION.—For each fiscal year, the8total amount of additional subsidization provided by9a participating State under paragraph (1) may not10exceed 30 percent of the amount of the capitaliza-11tion grant allocated to the State for that fiscal year.12‘‘(i) ADMINISTRATION OF FUND.—13‘‘(1) INparticipating State may14combine the financial administration of a State loan15fund with the financial administration of any other16revolving fund established by the State if—17‘‘(A) combining the administration of the18funds would—19‘‘(i) be convenient and avoid adminis-20trative costs; and21pamtmann on DSKBFK8HB2PROD with BILLSGENERAL.—A‘‘(ii) not violate the law of the State;22and23‘‘(B) the Administrator determines that—24‘‘(i) amounts obtained from a grant25made under this section, amounts obtained S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00025Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

261from the repayment of a loan made from2a State loan fund, and interest earned on3amounts in a State loan fund will be—4‘‘(I) accounted for separately5from amounts from other revolving6funds; and7‘‘(II) used only for purposes au-8thorized under this section; and9‘‘(ii) after consulting with the appro-10priate State agencies, the authority to es-11tablish assistance priorities and carry out12oversight and related activities, other than13financial administration, with respect to14flood assistance remains with the State15agency with primary responsibility for16floodplain management.17‘‘(2)18COSTS.—pamtmann on DSKBFK8HB2PROD with BILLS19ADMINISTRATIVE‘‘(A) INANDGENERAL.—ForTECHNICALeach fiscal year, a20participating State may use the amount de-21scribed in subparagraph (B) to—22‘‘(i) pay the reasonable costs of ad-23ministration of the programs under this24section, including the recovery of reason- S 2192 ISVerDate Sep 11 201403:07 Jul 26, 2019Jkt 089200PO 00000Frm 00026Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

271able costs incurred in establishing a State2loan fund;3‘‘(ii) provide appropriate oversight of4projects authorized under this section; and5‘‘(iii) provide technical assistance and6outreach to recipients in the State of7amounts under this section, including with8respect to updating hazard mitigation9plans and participating in the Community10Rating System, in an amount that is not11more than 4 percent of the funds made12available to the State under this section.13‘‘(B)amountscribed in this subparagraph is an amount15equal to the sum of—16‘‘(i) any fees collected by a partici-17pating State to recover the costs described18in subparagraph (A)(i), regardless of the19source; and‘‘(ii) the greatest of—21‘‘(I) 400,000;22‘‘(II) 0.2 percent of the value of23the State loan fund of a State, as of24the date on which the valuation is25made; and S 2192 ISVerDate Sep 11 2014de-1420pamtmann on DSKBFK8HB2PROD with BILLSDESCRIPTION.—The03:07 Jul 26, 2019Jkt 089200PO 00000Frm 00027Fmt 6652Sfmt 6201E:\BILLS\S2192.ISS2192

281‘‘(III) an amount equal to 7 per-2cent of all grant awards made to a3participating State for the State loan4fund of the State under this section5for the fiscal year.6‘‘(3) AUDIT7‘‘(A) AUDITREQUIREMENT.—Notquently than biennially, each participating State9shall conduct an audit of the State loan fund ofthe State.11‘‘(B) REPORT.—Each participating State12shall submit to the Administrator a bien

18 under the national flood insurance pro-19 gram in that State in the fiscal year pre-20 ceding the fiscal year in which the amount 21 is allocated by the total number of prop-22 erties that were insured under the national 23 flood insurance program in the fiscal year 24 preceding the fiscal year in which the 25 amount is allocated.